Summer Safety Tips

Smart Insurance Coverage This Summer

Sure, the risk of severe storms and natural disasters increases during the summers months, but there are also plenty of "hidden dangers" you may not always consider.  If you're not adequately protected against them, you could find yourself in the middle of an insurance storm.

Property Insurance Covers More Than Your Home

Home damage caused by intense thunder storms accounts for many homeowner's insurance claims over the warmer months, but so much more can go wrong in and around your home.

Things like bicycles, high-end camping gear, and the cameras you use to record your adventures are expensive items that can be damaged in a catastrophe or fall victim to theft. Luckily, they're often covered by your homeowners insurance or renters insurance policy. But as you accumulate these kinds of goodies over time, it's important to verify that your coverage levels still meet your needs—speaking to your insurance agent is an easy way to make sure your coverage is keeping up with your lifestyle.

Should the unexpected occur, you'll want to have all the information you need to file your claim.

Going Above and Beyond Your Policy Limits

What if a wayward sparkler on the 4th of July caused a burn or set a flammable item on fire? Or

how about a backyard BBQ where a faulty grill leads to mayhem?

Consider the additional level of protection that comes with a Personal Umbrella Policy. A personal umbrella policy provides liability coverage over and above your standard auto insurance or homeowners insurance. Basically, it offers protection against large and potentially devastating liability claims or judgments, kicking in right where your other liability coverage stops.

A personal umbrella policy's added protection is a great safeguard if you own a pool, but don't ignore the other potential dangers lurking around your house. Check out our article Is Your Backyard Safe for Summer? to help keep your summer fun accident-free.

Two-Wheeled Trips Call for Motorcycle Insurance

As the weather gets warmer, the open road calls. Unfortunately, so do nearly 100,000 annual motorcycle accidents and injuries. One way to protect yourself is making sure you use the right safety gear every time you ride. For help making smart decisions, check out our Tips for Buying the Right Motorcycle Gear.

Your auto insurance won't help you on a motorcycle. You'll need motorcycle insurance that protects your bike—and also protects you.

Your Home on Wheels Needs Fixed Protection

If your summer travel plans include an RV or motor home, remember that these special vehicles fall outside the coverage of your regular auto insurance. The good news is that motor home insurance offers specialized protection for you and your family, and even the contents inside.

Plan for Your 4-Wheeled Fun

Many people don't think to insure their all-terrain and off-road vehicles. While their relative size may be small, they can come with outsized price tags. And with so many dips, jumps, turns, and outdoor hazards (like tree limbs!), there's no shortage of things that can go wrong. Off-road vehicle insurance can help protect your investment whether you're riding on back trails in the woods or on the back 9.

Get Covered Before You Get Drenched

When you set out to boat, you've got more than just fueling your tank to think about. Fun on the water also means having the right safety equipment, emergency service plan, and wreck coverage ready in case you need it—read our What to Put in a Boat Safety Kit article to get a head start.

Water, water everywhere, but no flood insurance

What’s wrong with us? We’ve lost thousands of dollars of household goods and priceless remembrances because of torrents of water in our streets, homes and basements — yet we still don’t have flood insurance.

Some 81% of Americans know that the standard homeowners’ insurance policy doesn’t cover flood damage, but barely one in 10 has a flood-insurance policy, according to Bankrate.com.

What’s more, flooding is the No. 1 natural hazard in the U.S., according to the National Flood Insurance Program, a division of the Federal Emergency Management Agency. Flash floods alone are the top weather-related killer in the U.S.

“Flooding is very common, and people need to wake up to the fact that they may need flood insurance,” says Doug Whiteman, insurance analyst at Bankrate.com, which recently asked people what they knew about flood insurance.

It’s something to consider ahead of this year’s hurricane season, which is roughly June 1 through Nov. 1 and is forecast to be a tough one.

Meteorologists at the University of Colorado warn that the tropical Atlantic has warmed unusually over the past several months, and there’s an “above-average probability” that a major hurricane will make landfall. They’re looking for nine hurricanes this year, four of which are expected to be major, and 18 named storms. Remember that it’s not always the hurricane’s winds that wreak havoc, but the storm surges and flooding that come with them.

As entire neighborhoods throughout the Midwest grapple with heavy spring rains and flooding, just six months after Hurricane Sandy lambasted the East Coast from Florida to the New England states, we find that one in five homeowners still seems clueless about flood insurance. That’s true even after insurance agents reported a surge in new flood-insurance policies in New York and New Jersey post-Hurricane Sandy.

You must get a flood-insurance policy on top of your homeowners’ insurance. The basic homeowners’ policy underwrites your home’s structure, your personal belongings like furniture, clothes, electronics, and sports equipment, liability and additional living expenses if you cannot stay in your home because of damage from a fire, storm or any other insured disaster. All, of course, have limits — and one of them is if the home is flooded. In some high-risk areas, you won’t be able to get a mortgage without flood insurance.

There’s a good tool at Floodsmart.gov that will give you the risk level of your property and direct you to insurance brokers who can help you get coverage under the National Flood Insurance Program. The average flood-insurance policy will set you back about $600 a year, though costs vary widely.

Here’s what you should know about flood insurance:

• It covers physical damage to your property and possessions.

• You may need both building and contents coverage. Building insurance covers the home’s foundation and the equipment necessary to keep it running, like a furnace, water heater and circuit breaker. It will even underwrite carpeting, paneling and wallboard. Contents insurance covers items like a washer and dryer, a freezer and the food inside it.

• Flood insurance doesn’t cover moisture, mildew or mold that could have been avoided. Nor does it cover property outside the house, like the deck, sidewalks and hot tubs. Not all basements are covered either.

• The costs vary, depending on the design and age of the property, what the flood risk is and the amount of coverage.

• The coverage doesn’t start when your check is cleared. There’s typically a 30-day waiting period, which means if you’re looking to avoid this year’s hurricane season, now is the time to jump in.

Bicycle Safety - For Adults & Children!

Warmer weather is finally here! Adults and children alike enjoy bicycle riding when the sun is shining, so here are some tips to keep safe, while still having fun!

ü       Wear a helmet.

o        Choose one that meets the Consumer Product Safety Commission standards.

o        Make sure it fits properly.  It should cover the rider’s forehead and should always be fastened.

o        Don’t throw the helmet; this could damage the integrity of the product.

ü       Make sure the bicycle ‘fits’ the rider.

o        The rider should straddle the top bar; both feet flat on the ground.

o        There should be 1-2 inches between the top bar and the rider for a road bike, and 3-4 inches for a mountain bike.

ü       Perform regular maintenance.

o        Check tires for air and tire pressure.

o        Test brakes to make sure they are working properly.

o        Be sure wheels, seat and handlebars fit tightly.

o        Inspect the chain for damage, and oil regularly.

ü       Stand out.

o        Wear bright colored clothing.

o        Place reflectors on the bicycle and reflective stickers on the helmet.

o        Avoid riding at night if at all possible; if it can’t be avoided, wear light-colored clothing and affix a bicycle light and reflectors to the bicycle.

ü       Listen up.

o        Avoid headphones; music can prevent riders from hearing noises in their surroundings.

ü       Dress smart.

o        Avoid loose-fitting clothing, long backpack straps and long shoelaces that can get caught in the chain, and cause injury.

o        Wear shoes that cover the foot; never ride barefoot or in sandals or flip-flops.  Shoe soles should grip the bicycle pedals.

ü       Be aware.

o        Look for cars and other motorists.

o        Follow traffic regulations and learn appropriate hand signals.

o        Avoid riding into puddles and leaves, and over grates or gravel.

o        Look out for other bicyclists, pedestrians, and children playing in the area.

o        Learn the laws in your local jurisdiction for rules specific to your area.  Or for more safety information check with the National Highway Safety Administration at www.nhtsa.dot.gov.

Letting Your Child Drive Someone Else's Car

Consider several factors before you allow your kids to get behind the wheel of someone else's car — or before someone gets behind the wheel of your car.

 

With school back in session, more students will be driving to and from school during the morning and afternoon hours. Parents know they can't monitor their kids at all times, but they can work with their kids to set ground rules before young drivers hit the road. One of these rules: What cars your kids can drive. Before you let your child drive someone else's car, or before someone outside the family drives your car, consider these factors.

 

Whose Insurance Applies?

If your child's friend drives your car and wrecks it, whose insurance covers the damages? The answer varies depending on the state you live in. In most states, insurance coverage follows the car— not the person driving it — in the event of an accident. However, if damages resulting from the accident exceed the amount allowed by your policy, then the driver's insurance may be considered as secondary or supplemental insurance to the insurance on the car.

 

For instance, let's say your policy has $10,000 in property damage liability coverage. Your daughter lets her friend drive your car to her mom's house 30 miles away. In the process, she causes a three-car collision, which results in $20,000 of damage to the other vehicles and property.

 

In most states, the insurance you have on your car will cover the damage, but since you only have $10,000 of coverage, the friend's insurance policy may kick in and pay for the remaining $10,000 of damage. However, in some states, you could personally be held responsible for any remaining damages beyond your insurance limits if your child's friend doesn't have car insurance, even though you or your child weren't driving at the time of the accident.

 

It's also possible that if your insurance company pays for damage in an accident, they may pursue the friend's insurance company to pay back the damage. They won't attempt to recover any money that you pay out of pocket, though. Again, this is both situational and based on your state's laws, so there's no single answer to the question. Your best option is to check with your insurance company to find out how insurance works in your state.

 

Before your child's friend drives your car, make sure you and your child think about the following:

· Whose insurance will pay for the damage?

· Who will ultimately be responsible for paying any out-of-pocket expenses?

· If your insurance pays, are you willin  to take the risk, including possibly paying more for insurance when your policy renews? If not, you may want to rethink letting anyone outside of your family drive your car.

Should You Update Your Policy?

If you know your child's friend drives your car regularly, it may be best to add that person to your auto insurance policy. Similarly, if your child regularly drives a roommate's vehicle, it may be best to add your child to the roommate's policy.

 

Often, insurance companies may require that you add a driver or car to your policy if the person or car isn't already on it. This helps ensure that proper coverage is afforded in most situations.

Knowing What Affects Your Rate

Several factors affect the price you pay for auto insurance — your age, driving record, type of vehicle, etc. — but did you know where you live also affects your premium?

It's true: Your location directly impacts your insurance rate. In fact, most insurance companies, including Progressive, consider where you live when they price policies.

Generally, city dwellers pay more for auto insurance than rural dwellers. Why? Because auto premiums are largely determined by factors related to the frequency and amount of a claim payout. Logically, cities have much denser populations than the country, so the risk for an accident is much higher in urban areas than it is in rural areas. Because of this, you most likely will pay more if you live in the city than if you live in the country.

Let's look at some of the locational factors that may come into play when determining how much you pay for auto insurance.

Frequency of Loss

As mentioned already, living in an area with a higher population increases the risk of an accident. Since cities have more people, they generally have more accidents, too. Therefore, if accidents happen more often in a specified area, the price for insurance will be higher since the chance for a claim is higher.

Density

Alongside frequency of loss comes density. The more people in a given area, the higher the risk of human error that can cause accidents. Fewer people travel country roads, so the accident risk factor is lower in rural areas. Hence, those who live in the country most likely will pay less for insurance than those in the city.

Safety Services

The availability of safety services influences locational considerations, too. Safety services include:

· Response times for police, fire departments and ambulances

· Road maintenance in inclement weather

· Enforcement patterns, such as how well laws are implemented by municipalities and law enforcement

· How roads are designed

· Number of intersections in a given area

 

Areas that have fast response times, aggressive enforcement of laws, well-designed roads and intersections, and other positive safety services will be considered safer areas than those whose safety services aren't as available.

Weather

If you live in an area where snow or other inclement weather is a common occurrence, your insurance premium may be higher. Treacherous road conditions can raise your chances of being involved in an accident while driving, which means the risk for a claim is higher.

Theft/Vandalism Rates

In areas that suffer from high crime rates, the risk of a vehicle theft or vandalism is greater. If break-ins occur frequently in your neighborhood, you can expect that you'll be paying more for insurance.

Litigation Climate

Another factor is the litigation climate in your area. Is there a higher propensity to sue after an accident? Insurance companies may look at this — and they may even examine the number of lawyers per square mile — to help gauge the litigation risk in your area.

Though many factors are considered when pricing insurance policies, location is an important one that can directly impact what you pay for auto insurance.

Progressive and Snapshot

When you are a market leader, why not press your bet? That appears to be what Progressive Insurance is doing through its new program that allows drivers not currently insured by Progressive to try out the carrier’s usage-based personal auto insurance program —known as Snapshot— for a month to determine if the potential customer is eligible for a good-driving discount.

 

Progressive doesn’t need anyone else to praise their marketing skills; they’ve done quite well for themselves over the last decade promoting the company with a style that makes their name match the kind of company they strive to be.

 

This is also another warning shot for the mid-tier personal auto carriers that are not equipped to do battle with giants such as Progressive and State Farm, particularly when it comes to the use of telematics technology to determine if a driver is a good risk or not.

 

We are seeing more examples of insurers using telematics on a regular basis, particularly on the commercial lines side. Indeed, fleet insurance may be the perfect use for telematics because it allows carriers to offer customers a variety of benefits —not just the quality of the person behind the wheel.

 

But make no mistake, the money is in personal auto and the mad rush to gain more market share in the personal auto field continues unabated. In an interview recently conducted with Novarica’s Matt Josefowicz, he brought up an important point pertaining to the pricing battles that are going on. The tier-one insurers in the personal auto market are battling hard for their competitors’ customers, but eventually there has to be a point reached where carriers can no longer lower their prices. What then?

 

The good risks are going to be gobbled up by a handful of insurers and the rest of the personal auto market will be fighting over the scraps. It also appears likely that those scraps will contain a lot of bad risks.

 

Trying to determine which risks are worse than others will be the next battleground for the mid-tier insurers. Can old underwriting methods make it worthwhile for carriers to stay in the market? The difference between risks and gambles will cause a continued battle, one the mid-tier and smaller insurers may not want to take part in.