Who Let the Dogs Out?

There are times when man’s best friend becomes his worst nightmare. While many dog owners cite “security” as the reason they keep canines, less than 1% of those bitten by dogs are unlawful intruders. A majority of victims—more than 70 %—are children.

Dog attack victims in the US claim over $1 billion in monetary losses each year, and the number is likely to climb. Costs are rising rapidly; the rate of increase in dog bite injuries requiring medical treatment is 20 times that of the number of dogs.

Most dog owners understand the risk but may not realize if and how their home insurance will apply if their trusty hound takes a bite out of the neighbor.

Home insurance companies will often inquire about dogs from the beginning before agreeing whether or not to issue a policy. They rely on statistical data to determine the probability and severity of attack. While history proves that some breeds are more likely to strike than others (breeds most often involved in attacks are Pit Bulls, German Shepherds and Rottweilers), dogs of all breeds have proven capable of causing injury. They will likely want to know such information as how much time the animal spends outside and whether it is properly confined to your property.

It is important that you contact your home insurance company if considering a canine for a roommate. Failure to disclose information about the animal could cause the home insurance company to cancel your policy—and having a policy cancelled for this reason will make it very difficult for you to find a new policy elsewhere.

If the insurance company knows about your pup and is comfortable with his history of behavior, a policy will be issued. The good news is that most home insurance policies will cover costs associated with dog bites. Such costs may fall under the Medical Payments portion of the policy, a specific amount of insurance payable for medical costs regardless of fault. Costs for which you are legally liable fall under the Personal Liability portion of your policy.

In most cases, the owner of a dog can be legally liable for injuries caused by the dog. Therefore it is important you carefully consider the limits of liability on your home insurance policy. A dog bite can lead to expensive medical bills and other costs such as lost wages for the victim. More serious attacks can permanently scar, disfigure or disable a victim, causing considerable hardship, particularly if the victim is a child.

The unpredictable nature of the severity of injury and identity of victim are important reasons why higher limits of liability are essential. In addition to higher liability limits on your home insurance policy, ask your Trusted Choice® insurance professional about a personal umbrella policy. This policy can significantly increase the amount of liability insurance available for dog bites and other claims of liability against you or your family.

Reduce Your Exposure to Mold Losses

Mold can be defined as a growth of minute fungi forming on vegetable or animal matter, commonly as a downy or furry coating, and associated with decay or dampness. Growth of mold may begin with or become exacerbated by water damage that is inadequately repaired. Increasingly, airtight building construction (for purposes of improving energy efficiency) and the recirculation of contaminated air can contribute to the growth of mold as well.

Mold claim costs have increased dramatically over the years. According to the Insurance Information Institute, the typical mold claim costs between $15,000 and $30,000, compared to only $3,000 to $4,000 for an average homeowners claim. Part of this reason is the additional living expenses component of the claim. Frequently, a home owner must temporarily move out of the home due to necessary and major remediation work.

Active mold is fuzzy, velvety or slimy, and is orange, green, black, brown, pink, or purple in color. If you suspect you have a mold problem in your home, here are some tips to consider.

• Check the inside and outside of the dwelling for leaks and any visual evidence of contaminants since plumbing leaks are a primary cause of mold in homes. This task includes investigating the attic and basement to closely check for dampness and discoloration. It is important that the source of the leak be repaired as quickly as possible.

• If there is a slight amount of mold, use a detergent solution to remove it. Wear a mask, safety goggles, and rubber gloves while performing this task.

• For larger amounts of mold or resistant mold, contact a qualified specialist in the area of mold remediation.

• For moderate or major damage to property, also contact your insurance agent.

• To mold-proof your home, dehumidify your basement during the warm months. Eliminate standing water, and frequently clean and replace furnace filters.

• Regularly check the condition of your roof and exterior finish for any places where water might enter your home.

If mold is suspected of causing an illness, consider the following recommendations.

Contacting an environmental consultant may be necessary. You should ascertain the credentials of this consultant and contact the references provided. In addition, it is wise to select a consultant who does not perform the actual remediation work or have an interest in a company that does.
If symptoms persist, a physician who specializes in occupational and environmental medicine (rather than a family practitioner) should be consulted. The specialist is often able to more easily isolate the cause.

Get more personal lines insurance and risk management tips and ideas from IRMI.

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.

The good news is that these scenarios have solutions that your Trusted Choice® insurance agent is ready to discuss with you. Call today!

Forecasting Rough Winter Weather

Authorities Forecast a Rough Winter

It's time to think about preparing for rough winter weather ahead. According to weather authorities, the winter forecast for the Mid-Atlantic calls for several snow and ice storms, and the season could start earlier then normal.

Here are the Accuweather.com winter predictions.

What does this mean for you? Here's a few tips to start thinking about winter preparation:

• Prepare for driving on slick or icy roads. Take a few minutes to check the fluids, headlights, and the tread on your tires. Winter driving can be very dangerous if your vehicle is not prepared for it.
• Look around your home. Fill in any holes or cracks that may let in cold air, also inspect your insulation. This will help avoid heat loss and frozen pipes. Clean the rain gutters to avoid ice dams that could lead water damage.
  
• Stock up on melting salt.
  
• Buy a snow shovel if you don't have one.

Preventative maintenance can be the best insurance.

Avoid Turkey Fryer Dangers!

With Thanksgiving fast approaching, thoughts turn to turkey , dressing, and pumpkin pie. Delicious deep-fried turkey, historically prevalent in the southern states, is growing in popularity around the country thanks to celebrity chefs such as Emeril Lagasse. The only problem is that the turkey fryers used to create this succulent dish are unsafe and not certified by Underwriters Laboratory.

Turkey fryers are devices, resembling a large commercial coffee pot, that are filled with oil heated to 350 degrees Fahrenheit. Turkeys are placed in this hot oil to fry the birds. The big problem, though, is that people often fill the fryers too full of oil, and it overflows when the bird is placed inside. This cascading oil hits the heating flames below, causing an instant fire. In addition, the turkey fryers are often quite unstable and easy to tip over. Lastly, many of these fryers lack adequate thermostat controls. Thus, the units have the potential to overheat the oil to the point of combustion. For these reasons, UL does not certify any turkey fryers with its trusted UL mark.

UL and other safety organizations strongly urge people to discard their existing turkey fryers. But for those people who insist on using their turkey fryers, UL offers the following tips:

• Always use turkey fryers outdoors a safe distance from buildings and any other burnable materials.
• Never use turkey fryers on wooden decks or in garages.
• Make sure the fryers are used on a flat surface to reduce the chance of accidental tipping.
• Never leave the fryer unattended since most units lack proper thermostat controls. If people do not watch the fryer carefully, the oil will continue to heat until it catches fire.
• Never let children or pets near the fryer when in use. Even after use, never allow children or pets close to the turkey fryer. The oil inside the cooking pot can remain dangerously hot for hours after use.
• To avoid oil spillover, do not overfill the fryer. Test it beforehand with water.
• Use well-insulated potholders or oven mitts when touching pot or lid handles. If possible, wear safety goggles to protect eyes from oil splatter.
• Keep an all-purpose fire extinguisher nearby.

Get more personal lines insurance and risk management tips and ideas from IRMI.

Copyright 2010
International Risk Management Institute, Inc.

2010 Best Practices Agency

Allen & Stults Co. – Local Agency Included In IIABA’s Best Practices Study

HIGHTSTOWN, NJ 10/28/2010 – Allen & Stults Co. is part of an elite group of independent insurance agencies around the United States participating in the Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) “Best Practices” Study Group.

Each year since 1993, IIABA and Reagan Consulting, an Atlanta-based management consulting firm, join forces to study the country’s leading agencies in six revenue categories. The agencies comprising the study groups are selected every third year through a comprehensive nomination and qualifying process and awarded a “Best Practices Agency” designation. The selected “Best Practices” agencies retain their status during the three-year cycle by submitting extensive financial and operational data for review each year.

More than 1,200 independent agencies throughout the U.S. were nominated to take part in the annual study, but only 224 agencies qualified for the honor. To be chosen, the agency had to be among the 35-40 top-performing agencies in one of six revenue categories.

The agency was nominated by either an IIABA affiliated state association or an insurance company and qualified based on its operational excellence.

The Best Practices Study was initiated by IIABA in 1993 as the foundation for efforts to improve agency performance. The annual survey and study of leading independent insurance agencies documents the business practices of the “best” agencies and urges others to adopt similar practices.

Founded in 1896, IIABA is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of more than 300,000 agents, brokers and their employees nationally. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer all lines of insurance – property, casualty, life and health – as well as employee benefit plans and retirement products. Web address: www.independentagents.com.

The Homeowners Policy & College Students

Question: "Is a computer provided by my daughter's school for use while she is attending covered for theft out of her locked room while she is out of the room? Toward the end of the school year, someone came through her suite mate's room, through the bathroom, and into my daughter's room and stole the computer she had signed out to her by the school. I just received a letter from the school stating that she had to pay $1,600 before she would be allowed to return to school. Does homeowner's insurance normally pay for such losses? Do you have any idea why my agent would say this was not covered and it was the responsibility of the school?"

Clearly this is a covered loss under the "ISO standard" homeowners policy. Note: Be aware that insurance companies do not all use the same insurance forms. That is why it can be foolhardy to purchase insurance over the internet without the professional counsel of a qualified insurance agent who can properly match your exposures with the best policy and price available for your individual needs.

The homeowner's policy covers any personal property "owned OR USED by" an insured if it is damaged or lost due to a covered peril. The student was certainly using the property and theft is a covered peril. The term "insured" includes a resident relative, and courts have determined consistently that a dependent child away at school is still a resident of the named insured's household. And, under the theft peril, the policy says, "Property of a student who is an 'insured' is covered while at a residence away from home if the student has been there at any time during the 45 days immediately before the loss." In this case, the student was there at the time of loss, so this theft restriction does not apply.

There is, however, one limitation that does apply. For personal property "usually located at" an insured's "residence" other than the residence premises, only 10% of the policy's contents coverage is available for losses. In this case, 10% of the contents limit is more than adequate for the loss of the computer. Of course, there is a deductible to contend with, typically $250.

In addition, policy conditions require that theft losses be reported to the police. Although "police" is not defined, it is presumable that notice to the campus police would suffice. That being done, this appears to be a clearly covered claim, the only mystery being why the agent would say that it isn't covered.



Copyright 2000 by the Florida Association of Insurance Agents, Inc. Reprinted with permission.