Auto and Home Insurance for Unmarried Couples

 

 Sixty years ago, when the 1950 census data was released, it showed that eight in 10 households were occupied by married couples. Fifty years later, the 2000 census data showed that number had declined to just over 50%, signifying a sea change in the typical American household. Almost half of households were occupied by a single individual, roommates or unmarried couples (the 2010 census data is still in the process of being made public).

If you are in the “living together but not married” category, you should pay close attention to the language in your home and auto insurance policies that specifies which individuals are covered—in insurance terms, the “insureds.”

HOME INSURANCE
Most standard home insurance policies restrict coverage to a “named insured”—the individual person(s) named on the policy and his or her resident spouse. The policy then extends coverage to “resident relatives,” a term referring to individuals related to the named insured by blood, marriage or adoption (or someone under 21 in your care, such as a foster child) who are residents of the named insured’s household.

This means that a home insurance company has no obligation to cover a non-insured’s liability or to defend that person in a lawsuit alleging liability.

Consider this scenario: A girlfriend and her teenage son move in with the woman’s boyfriend. The son seriously injures another child in a tackle football game at the park down the street. That child’s parents file a suit against the mother/girlfriend.

Unless she has her own separate insurance policy (such as a “renters” insurance policy) or has been added as a named insured on the home insurance policy (which most insurance companies won’t do if she isn’t a relative), she has no coverage. 

The problem doesn’t stop with liability. Chances are the girlfriend and her son will also move some of their personal property in with them, but clothes, electronics, school supplies and whatever else belongs to them may not be covered by the homeowner’s insurance policy either. Most policies exclude coverage for personal property that is owned by roomers, boarders or tenants. This personal property exclusion is another reason why a renters insurance policy is essential for non-insured roommates.

AUTO INSURANCE
The auto policy also has a “named insured” which includes the individual listed on the policy and his or her spouse. The insured on an auto policy varies depending on the coverage. For example, liability, medical payments, and uninsured motorist coverage each have their own definitions of “insured.”

Say an adult boyfriend and girlfriend each have a car and their own personal auto insurance policies. One has high limits of liability on their policy, maybe $100,000, and the other has lower limits, like $25,000.

Let’s look at liability coverage in this scenario. This section of the policy covers the “named insured” and “family members” for liability arising out of the use of any auto. It also considers any other person an “insured” while that person is occupying a car (with permission) that is insured under your policy.

Dig deeper, however, and you’ll see that the policy excludes coverage while the “named insured” or “family member” is operating a vehicle that is furnished or available for regular use.

If the girlfriend is driving the boyfriend’s car and gets into an accident causing injuries, his auto insurer would pay up to the policy limits—in this case, $25,000. Unfortunately this may not be enough money to cover the full liability if the injuries are severe, and the liability policy with $100,000 limit might not be available as a fallback, even though it covers the driver for the use of any auto. That’s because the driver’s insurer can argue that this car is available for the driver’s regular use since the car owner and driver live together and that, under that circumstance, coverage is excluded by the policy language

 

From Trusted Choice  http://www.trustedchoice.com/

Loss Assessments: Home or Condo

 

 If you live in a home in a developed area or subdivision, there’s a reasonable chance that you are a member of a homeowner’s association. The same is true if your pad is a condominium.

Association membership has its benefits. In return, members of the association are sometimes asked to contribute funds to help maintain the integrity/value of the common elements. Those common elements—a garage or clubhouse, for example—are those items of property commonly owned by all members. “Asked” may be too soft a word—such contributions usually are collected through mandatory assessments.

What are some things for which you as an association member can receive an assessment? Good question. The answer is typically found in association bylaws. In some states, laws will have something to say about the extent an assessment can be charged and for what it can be charged. However, such statutes do not exist everywhere.

Here’s another question: If you receive an assessment from your home or condo association, will your home or condo insurance policy help you pay for it?

The answer, well, depends.

Most home and condo insurance policies have very similar language in how they address coverage for loss assessment. There are a few things you will need to know before coverage can be determined.

What Caused the Assessment?
The home or condo policy only will kick in to pay an assessment that is charged to you for a reason that would be covered by your insurance. For example, if the assessment were charged to help cover the cost of damage to the clubhouse caused by a fire, your policy would pay due to the fact that fire is a covered loss under your policy. However, if earth movement damaged the same building, your policy would not pay if earth movement is not a covered loss under your policy.

If an assessment is charged to cover the cost of painting the exterior of the clubhouse simply because the association decided it was time to paint, your coverage would not kick in due to the fact that there has been no covered loss.

Assessments are not only charged to cover claims of damage to common elements. Members also may be assessed for claims of bodily injury or property damage against the association’s master policy. For example:

A guest suffers a permanent head injury after slipping on a damaged walkway. The bodily injury claim against the association is $1.5 million. The association’s policy will cover the injury up to its policy limit of $1 million. The association assesses its members to cover the remaining $500,000.

In this example, your insurance policy would kick in to help pay the assessment. Why?  Bodily injury is covered by your policy.

Which Policy Covers the Assessment?
Your home/condo policy says that it will only pay the cost of assessments that are charged during the policy period. This is important to note because it’s possible that the actual assessment may not be charged until months after the loss causing the damage occurred. For example, say the hurricane happens in August, when Company X insures you. In September, you switch your coverage to Company Y. The assessment for the portion of the hurricane damage that isn’t covered by the association’s master policy arrives in October. Company Y’s policy would kick in as it was in effect when the assessment was charged.

How Much Will My Home or Condo Policy Pay?
Most policies are issued with a limit of $1,000 to cover loss assessments. This limit is the most your policy will pay for a single loss, regardless of how many assessments are charged for it. For example, if the clubhouse is damaged by a hurricane, it’s possible that members may be assessed first to cover the cost of the association master policy’s deductible—and again to cover the cost of the repair that exceeds that policy’s limit of insurance. Since both assessments are charged due to the same hurricane, the total paid by your insurance would not exceed $1,000.

That $1,000 Seems Too Low. Can I Increase My Assessment Coverage?
Yes. Most home and condo insurance companies offer you the opportunity to add more coverage for loss assessments. It’s important to know that while the dollar amount may be increased, the terms of the policy still apply (i.e. you will still need the assessment to be charged due to a covered loss).

If you choose to purchase additional assessment coverage, proceed with caution. Most loss assessment endorsements will still only allow you a maximum limit of $1,000 if the purpose of the assessment is to cover the master policy’s deductible

From Trusted Choice http://www.trustedchoice.com/

Prepare a Home Inventory

 

If you were the victim of a major natural disaster and suddenly found yourself with
nothing left, would you remember everything you lost? When is the last time you counted
the number of CDs you own or took stock of the current value of your TV and video
equipment, not to mention your clothing, jewelry and other personal belongings? Too
often, we forget about personal valuables that are stored in closets or drawers. An
inventory will help you remember what you have so you can accurately document your
losses to your insurance company. For example, your insurance company will be less
likely to dispute the value of your antique teapot collection if you have photographs, sales
receipts and other documentation to prove it.

• Make a detailed written or videotaped inventory of your property and house-hold
 possessions. Take a video camera and go through every room, taping and describing what
 you see. For valuable items, note when and where you purchased them and how much
 you paid for them. Include the serial numbers of major appliances.
• Don't forget to inventory the garage, attic, basement and the exterior of your house,
 including landscaping and fencing.
• Update the inventory yearly.
• Keep your inventory, insurance policies and other important documents in a safedeposit
 box and keep a duplicate set in a fire- and water-proof container at home. Include
 important documents such as wills, deeds, titles, stocks, bonds, certificates of deposit,
 passports, bank account numbers, credit card numbers, income tax returns, birth
 certificates and so on.

STORM-PROOF YOUR HOME
• Keep your home in tip-top shape to protect it against the damage of heavy winds or
 rain. Make sure your roof, windows and doors are not in need of major repair.
• Position cribs/beds away from windows or tall furniture that could slide or topple.
• If you live in a hurricane-prone area, purchase sheets of plywood to cover your home's
 windows and store them in your garage or shed. If you wait until a storm is imminent,
 your local hardware store may be sold out.
• Bolt bookcases and other tall pieces of furniture to the wall.
• Power generators are often used during power outages. If you own one, make sure it is
 well maintained and that all family members know how to operate it properly.
• If you live in a mobile home, make sure it is securely anchored down.
• If you own a boat, make sure it is securely moored.
• If there is a fire hydrant near your home, make sure it is clear of debris and can easily be
 located by the fire department.
• Remove low branches and dead trees from around your house.
• Clear debris from the chimney, gutters and vents.

Summer Storm Recovery Tips

 

Independent insurance agents not only advise clients about insurance, but they’re disaster
readiness consultants. It is imperative to know what your risks are and what to do in the
event of a hurricane. We recommend meeting with a Trusted Choice® independent
insurance agent who can consult with you in assessing your risks and ensuring that you, your
family and your home are prepared in the event of a disaster. Trusted Choice® offers many disaster-specific readiness and recovery tips for consumers.

GETTING STARTED
A good way to begin your planning process is to gather as much information as you can.
There are numerous resources available to guide you through the process of getting your
household prepared to deal with a disaster. Trusted Choice® offers many
disaster-specific readiness and recovery tips for consumers including the following
suggestions to get started:

• Make a list of each of your insurance policy numbers and the insurance company name,
and keep the information in your wallet, purse, or on your mobile device. For example,
nearly all states use some form of a wallet-size auto ID card, which is required to be kept
on your person, or in the vehicle. It's a good idea to do have similar information with you
on all your other insurance coverages.
• Make a record of your insurance agent's web site address, and keep this information in
your wallet, purse or mobile device. After a widespread catastrophe, more and more
agencies post information about claims procedures on their web site. This is especially
important in cases where the agency itself has been affected, and has set up temporary
operations at another location. In addition, agency web sites will usually post emergency
insurance claim phone numbers, etc.
• Use social media to contact your insurance agent. Many agencies use some form of
social media, such as Facebook, Twitter, etc., and these information outlets can provide
vital, timely information about claims procedures and other necessary information for
policyholders.
• Find out how you and your neighbors would be informed about an imminent disaster.
• Ask if evacuation routes have been established.
• Contact your city's or town's planning and emergency assistance organizations. Ask
them for information about disaster planning.
• Contact your children's school(s) or day care center to learn about the emergency plans
they have in place.
• If a family member is in an elder care facility, check to see what emergency procedures
they will follow.
• Take a First Aid/CPR class from the American Red Cross.
• If you have pets, have a contingency plan in place. Many emergency shelters won't
accept them.

 .....Next make a Home Inventory

 

From Trusted Choice http://www.trustedchoice.com/

This Summer, Get In the Water-and Get Out, Safely

A cool swim on a hot day is an American tradition. As temperatures rise, most folks want to get into the water—whether at the ocean, lake or pool.

Pools present dangers, particularly for young kids. Each year, some 3,500 deaths—about 10 per day—are cause by drowning, according to The Centers for Disease Control and Prevention (CDC). And another 4,000 people are treated at hospital emergency visits total for injuries and trauma related to pool accidents.

The Consumer Product Safety Commission (CPSC) notes that drowning is the second-leading cause of injury death for children ages one to 14. Each year, 283 children under age five die in America’s pools and spas, a statistic that has worsened since the turn of the century. Most deaths and injuries related to pools occur on residential properties. Most involve children ages one to two, according to the commission.

Here are the problems that lead to children drowning in pools:

Unprotected pools. Pools must be treated as attractive nuisances, meaning children will want to get to them to play. One risk: Pools with a three-sided fence where the home forms the fourth side of the barrier. That simply means children can gain access to the water through a door rather than over a fence. Other problems include frost heaving that opens a gap in a fence gate, and wooden fences that rot and break.

“Little children are fiendishly clever and they can get away,” pointed out Dr. Jonathan Midgett of the CPSC. “For those brief moments when children elude us, we need layers of protection around our pools. The more obstacles between your child and the pool, the better! Fences need to isolate the pool from the house; have well-maintained self-closing, self-latching gates; and [have] back-up layers of protection, like sensors and alarms.”

Faulty equipment. Suction outlets in pools and whirlpools are a hazard to catch hair and fingers. Anti-entrapment drain covers must be secured in place.

No rules for the pool. Parents may rely on a neighbor, friend or caregiver/babysitter when children are in a pool this summer. Children must be made to understand that, whoever the authority figure is, they must respect that person’s directions. Make safety rules for the pool clear before anyone sets foot inside the pool area.

Poor supervision. Doctors put it bluntly. “Never leave your children alone in or near the pool, even for a moment,” advises the American Academy of Pediatrics.

The doctors’ group adds a rule of “touch supervision” with children younger than five years. This means that the supervising adult is within an arm’s length of the child at all times.

Children can drown in a pool full of people. This happens when no one adult is designated to supervise the pool or if the supervisor isn’t paying proper attention. The CPSC recommends at least one adult taking responsible for watching children around the water.

“This person should avoid distracting activities that can take their attention away,” explained Dr. Julie Gilchrist of the CDC. Distractions include: playing cards, reading, checking e-mail, and talking on the phone. In the time it takes to do these things, a child may quietly slip under water. “Drownings happen quickly and usually silently,” she added.

Anyone who owns or uses a pool should consider learning basic first aid and cardio-pulmonary resuscitation (CPR). “CPR can make a big difference by reducing the likelihood of brain damage in the few minutes it takes for 911 emergency responders to arrive,” Gilchrist, a medical epidemiologist, noted.

Swim lessons. Learning to swim is not just recreational, but a way to teach children how to save themselves, noted the CDC. Yet even strong swimmers must be supervised, no matter what age.

Any homeowner who has a pool—whether in-ground, above ground, or inflatable/temporary— should have liability insurance coverage, including umbrella liability coverage. 

From Trusted Choice: http://www.trustedchoice.com/

Customer Appreciation Event

Holt and Dimondale Agency

Customer Appreciation Event

_________________________

         Date: August 26, 2011

Time: Noon to 5pm

Where: Holt & Dimondale Agency parking lot

              2129 Aurelius Rd, Holt

Al Higgins of Century Glass is donning his BBQ apron and will be firing up his grill to provide the community with an exceptional offer!!

________________________________________________________

Al will provide lunch – Dogs on the grill when you bring
your car in for a “free” stone chip repair! That means no charge to you for an improved windshield. A free lunch and an opportunity to make a donation to the Holt Food Bank!

________________________________________________________

We look forward to seeing you, come support your hometown!

When Your Commercial Building is Vacant

When a commercial building is vacant or unoccupied, there are generally two problems. The property is exposed to an increased amount of risk; for example, it becomes a target for vandals. In addition, discovery of a loss may be delayed; a water pipe can burst and go undetected for days. As a result of the increased risk and delay in detection, insurance policies are not as broad when a property is considered vacant.

 

Defining Vacancy

In the mid 1990's, commercial property policies started defining exactly when a building is considered vacant. The definition is found in the conditions section of the policy. With each new edition of the policy, the definiton has be revised. Today, you must review the actual policy covering a building in order to determine which definition of vacancy will apply. Some policies state that a building is considered vacant unless at least 31% of the total square footage is being used to conduct customary operations. This would mean that if only one floor of a four story building is being used, the vacancy restrictions of the policy would apply.

The Threshold

For a short period of time, vacancy is not a problem because the vacancy condition in a commercial property policy contains a threshold. Usually after the building has been "vacant" for either 30 or 60 days, the restricitions on coverage are activated.

Restrictions on Coverage

-Excluded Perils

There is no coverage for six causes of loss: theft, attempted theft, vandalism, glass breakage, water damage, and sprinkler leakage.

-Reduced Coverage

For other covered perils, payment of a loss is reduced by 15%. With a $100,000 fire loss, the policy will only pay $85,000.

 

When a building is unoccupied or vacant, be certain to check the vacancy condition in your property policy. If you are not certain how the provision will apply, get it cleared up before the loss and get it in writing. When your building is vacant check with your agent and ask them your options. He/She should be able to negotiate coverage through an endorsement, vacancy permit, or special vacancy policy. Remember, most carriers do not hesitate to activate the vacancy provisions of a policy if the conditions at the time of claim warrant it.

 

Written by: Phyllis Van Wyhe, CPCU, CIC, CSP