Free classified sites such as craigslist.org have come to be a great resource for people wanting to find home service contractors in their area. However, unfortunately for some, the convenience has come at too high of a price. Liability scams have popped up across the country where a homeowner has hired a not-so-reputable service provider who advertised their services on a site like craigslist.org. The service provider then fakes or sometimes even purposely sustains an injury on the premises thus suing the homeowner (and their homeowners insurance) for their injuries. Service providers who are not insured, or sufficiently insured, can be a major risk for homeowners and the liability portion of their homeowners insurance. Follow these tips to make sure you’re not setting yourself up for a liability lawsuit next time you hire a plumber/painter/handyman, etc.:

1) Do your homework. If you find a service provider advertising on craigslist.org do your research on them. Do they have a website? Where are they located? How long have they been in business? See how much you can find out about them just by scrolling through the web.

2) Get the documentation. Ask to review their license and insurance information up front. Simply asking whether or not they are licensed and insured leaves you to trust that they are 1) telling the truth and 2) sufficiently insured. Ask for a copy of their business insurance declaration page and their business license certificate. Go the extra step and call your homeowners insurance agent to see if the limits on the business insurance coverage is enough. Make sure the policy is effective and not expired. Taking a little extra precaution now can save you a major headache down the line.

3) Ask for references. One of best ways to know if a service provider is reputable is to hear about their quality of work from other customers. Ask for a list of references which they should be able to readily provide. Make the phone calls and find out if their customers are really satisfied with the performed work.

The weather is warming and homeowners across the country are making their way outdoors. Months of barbecues and backyard hangouts are right around the corner. Here are a few tips for preparing your home and family for a safe spring and summer season:

-1- Inspect decks and porches

In the warmer months there’s no better place to chill out a sip a cool drink than the comfort of a shady porch or deck. However, decks and porches are also a common place for weather damage and potential injuries if not properly maintained. Do a thorough inspection of all your outdoor infrastructure especially checking the areas where your deck comes into contact with your home for water damage. Take a look at the footings and make sure to repair any decayed or rotting boards immediately. Also check the flooring of your deck or porch for mold, moss and mildew and use a power washer to remove any traces you find to prevent slips and falls.

-2- How did your roof fair the winter?

Depending on the amount of snow, hail and wind your home sustained this winter it may be a good time to get up on your house and check the condition of your roof. If you aren’t experienced with this or don’t feel comfortable hire a roof expert to do an inspection. Finding any damage now can prevent a ton of issues down the line.

-3- Gutter cleaning

Clogged or broken gutters can create major problems once spring rains are among us. Gutters can get clogged with leaves and debris over the fall and winter months that can cause water to run back into your home causing ceiling and wall damage (as well as mold!). Clear downspouts and drains and make sure water can flow away from your foundation.

-4-  Clear trees and limbs

Tree limbs and branches that are weak or hanging can cause serious damage to your home or your neighbors’ home. Cut down any threatening limbs you can find or hire a landscaper to do a spring cleanup.

-5- Patch walkways

Cracks and damage to pavement, stone and brick in your walkways pose a major slip and fall hazard for your family, guests and even the mailman. Avoid the injuries (and medical bills!) by inspecting the major walkways leading to and around your home. You can buy patching materials from any major home center store to restore asphalt and concrete surfaces.

For more seasonal articles on ways to prevent homeowners insurance claims read:

• How can I prevent lawn mower accidents and injuries?
• What can I do to prevent grill fires and injuries?
• How can I prevent bike theft?

Owning a home can be costly, however, there are certain tax deductions that you may be eligible for which can save you some money come tax season. As a homeowner, it’s important to know which parts of your home payment are tax deductible and which are not. Your tax attorney can help you answer these questions as well, however, here is a brief outline of what the IRS has published as acceptable and non-acceptable home-related tax deductions.

Your monthly home payment likely includes several expenses including real estate taxes, your mortgage payment (interest and premium), your homeowners insurance premium and possibly mortgage insurance. According to the IRS.gov, the only deductible portions of your home payment are your real estate taxes, mortgage interest and mortgage insurance.

Homeowners insurance on the other hand, is not tax deductible. Another non-tax deductible portion of your home payment is any amount you have paid to reduce your loan premium.

Here are some other home-related expenses that that IRS says are NON-deductible:

• Utilities such as water, heat and electricity
• Most closing costs that are paid when you purchase a home
• Deposits put down on a loan
• Depreciation

For more information, visit the IRS.gov website or consult your tax attorney.

Most people have better things to do in their spare time then read through their homeowners insurance policy for fun. However, if you did decide to flip through the pages you might be interested to learn about some of the things your policy covers that you weren’t aware of. Here are a few things that some policies cover that most homeowners would never think to ask about. (Please note that all policies differ and you should consult your agent for specifics on your coverage).

Volcanic eruptions- Most people don’t live close enough to an active volcano to worry about this one, but if you did- it’s good to know you’d be covered! Most policies will offer coverage for damage caused by airborne debris from a volcano.

Aircraft AND Spacecraft Damage! That’s right, according to some home insurance policies you will be covered if your home sustains damage caused by “contact with an aircraft or spacecraft”.

Vandalism and malicious mischief- Most policies will cover damage or destruction to your home as long as it has not stayed vacant for a certain period of time, for example, for more than 30 or 60 days. However, this portion of a policy doesn’t usually cover theft, burglary or larceny. Theft coverage is typically provided under another provision in your policy and separate coverage limits apply.

Lightning- If lightning strikes your home the resulting damage is usually covered under a standard homeowners insurance policy.

Explosions- Depending on the source of ignition, damage caused by explosions in your home may be covered by a homeowners insurance policy. Most policies, for example, will cover explosions that are caused by an accumulation of gas or unconsumed fuel within the firebox or combustion chambers of a water heater or oven. 

For more fun facts visit our “Most Bizarre Claims” series:

• “A deer jumped through my window” and other bizarre insurance claims :: Part One
• “We got struck by lightning twice” and other bizarre insurance claims :: Part Two

Disclaimer: Insurance coverage varies by policy and carrier.  This article in no way intends to guarantee coverage under any homeowners insurance policy. Consult your agent for the specific coverage provided in your policy.

Most homeowners don’t worry about the threat of mold in and around their home until it becomes a problem. Left undetected, mold can quickly become a widespread issue and a big expense to be cleaned up.

Here’s the lowdown on what to look for around your home and what you need to know about mold remediation:

1-  It is recommended that homeowners check their home regularly for mold and to have an annual mold inspection conducted by a licensed professional. This will ensure that even the smallest problem is quickly identified and resolved.

2- Key areas in your home prone to mold are anywhere that moisture exists and lingers. For example, be sure to check basements, crawl spaces, attics, bathrooms, kitchens, around window casements and anywhere else that has a chance to become damp.

3- Mold remediation is the process of removing, cleaning and treating an area that has been consumed by mold growth. Many people wonder if mold remediation is covered by a standard home insurance policy. The answer is a tricky one as it varies from policy to policy and depends on the cause of the mold. For example, if a pipe bursts in a basement and the resulting water causes mold growth, a homeowners insurance company may cover the claim. However, you really need to talk to your agent about the specifics of your policy and the situation.

4- One reason it is so important to detect mold growth in a home immediately is because the cost of cleaning it increases as the problem grows. In fact, the III reported in a recent white paper that the average mold claim ranged from $15,000 to $30,000- about five times the average cost of a non-mold claim.

5- The biggest concern with mold inside of a home is the toxic characteristics that can make it dangerous to the health of the homeowner and their family.  Children and adults can be affected by various conditions caused by mold including asthma, allergies, chronic sinus infections and other respiratory problems. Have your home checked regularly to avoid any health issues with mold.

For more information visit: How to prevent mold in your home

When it comes to buying a home, many first-time buyers mistakenly believe that the sales price of the home is the only cost they need to worry about.  Those that have purchased a home before, however, know that there are other costs involved that need to be taken into consideration. The best thing a first-time home buyer can do is to know what all of the costs are up-front so that there aren’t any hidden surprises down the road.

Taxes: Property taxes can vary greatly from one neighborhood to the next so it’s important when shopping for a home to know what the property taxes are for each individual property. Also be sure to find out if there are additional village taxes that may apply to a certain property as well. You should be able to call your county tax office for up-to-date tax information on any property.

Inspections and Appraisals: Once you’ve found a home that you want to purchase you will need to have the home inspected and the bank will almost always order an appraisal. The homeowner is typically responsible for all of these costs. An inspection should be carried out by a licensed home inspector and costs can typically range anywhere from $300 to $600. Sometimes the bank will choose the appraiser they want to use and for a basic appraisal you may be looking at a cost of around $500. Shop around where you can as you may be able to save a few hundred dollars just by doing so.

Property Insurance: The cost for homeowners insurance will vary depending on the home and the location. The size and building style of the home, for example, will determine the replacement cost of the home which will affect how much dwelling coverage you need. Also, homes closer to the coastline or a body of water may be required to be covered by a flood insurance policy. Shopping around for multiple home insurance quotes will ensure that you get the best deal available. For rough estimates, visit the average home insurance rates by state map.

Homeowners Association (HOA) Fees: If the home you are purchasing is located in a private community or development (as is often the case with condos, apartments and townhomes) you may be required to pay HOA fees to the community. These fees typically cover costs associated with maintaining the neighborhood such as landscaping and community buildings and pools. If one of the homes you are considering is located in a private community be sure to ask your real estate agent about any possible HOA fees that you would be responsible for.

Closing Costs: Finally, when it comes time to close on your new home there will be closing costs involved that must be paid to the lender, the title company, the insurance company and your attorney. Your closing costs also typically include reserves for your escrow account which are typically a few months worth of homeowners insurance and property taxes paid up front. These costs are paid usually by the buyer although sometimes the seller will pay part of the closing costs as well. Your lender should be able to give you an estimate on your closing costs as you get closer to your closing date. Websites like Zillow and Yahoo! Real Estate offer closing cost calculators that you can use to estimate your closing costs in the meantime.

Is it enough to be minimally covered?

Oftentimes when a homeowner is shopping for homeowners insurance they are looking to get the best rate available which, especially in this economy, is understandable. However, policyholders should be careful not to settle for a lower rate at the expense of being inadequately insured.  

A homeowners insurance agent will typically make recommendations on coverage while a homeowner may think they should opt for less to save money. So when it comes down to it, how much homeowners insurance do you really need to protect your investment in your home? While the answer will vary from one scenario to the next, here are a few things to consider:

Dwelling Coverage is the portion of a homeowners insurance policy that protects the actual structure of a homeowner’s home in the event of a covered peril. For example, if a fire damages an insured home, the dwelling coverage portion of the homeowners insurance policy would pay out for the repairs. However, there are limits stated on each policy for how much the insurance company is required to pay in the event of a total loss of a home. These limits must be equal to the current replacement cost of the home in order for a homeowner to be adequately insured. This means that if a home was completely lost in a covered peril (for example a fire) and needed to be rebuilt from the ground up, the home must be insured for the full value to replace the home in its entirety. If the cost to replace the home is higher than what the home is insured for- the homeowner will be stuck with the additional cost.

This is when it is important to consider purchasing a policy with guaranteed replacement cost coverage. This guarantees that as long as a home is insured up to full value when a policy is purchased, the insurance company will pay the full value to replace the home even if the dwelling coverage limit is lower than the replacement cost at the time of a total loss. Most standard HO3 policies include guaranteed replacement cost coverage otherwise a homeowner can add it for an additional premium as an endorsement.

Contents coverage protects personal possessions inside of the home against covered perils and includes things like furniture, clothing, electronics and other items. Typically this coverage limit is provided as a percentage of the dwelling coverage and should not be lowered. For example, if the dwelling coverage limit on a home is $250,000, the contents coverage may be set at 70% or $175,000. This means in the event of a total loss the most amount of money a homeowner could get for their possessions would be $175,000. An important thing to keep in mind is that in some cases it is valuable for a homeowner to increase the amount of contents coverage they have. If they own specific items of high value such as jewelry or fine art collections- those should be scheduled as an endorsement on their policy for an additional premium.

Personal liability coverage is included in a standard homeowners insurance and is often one of the most undervalued portions of a policy until, of course, it becomes needed. Typically the minimum amount of personal liability coverage that a homeowner can have on their policy is $100,000 although many insurance agents these days recommend against carrying minimum liability limits. Some agencies will not write a policy with less than $300,000 in liability coverage simply because they know that in the event that the homeowner is presented with a major lawsuit- $100,000 is usually not enough to cover the lawsuit, legal fees and court costs.

All in all, opting for lower coverage does not necessarily you will be saving money in the long run. If you are ever need to file a major claim and don’t have sufficient insurance coverage you could end up paying a great deal out of pocket that you could have avoided. Your best bet is to work with a licensed agent that can make recomendations for you.

For more information visit Home Insurance 101 or Home Insurance- Are You Covered?

We talk to a lot of homeowners everyday so it’s not really a surprise that we’ve heard our fair share of bizarre mishaps and claims over the years. It never fails that Super Bowl Sunday produces an endless number of crazy accidents (some silly, some scary!) all in one day.  Here are some of the more memorable stories we’ve heard from our customers over the years. Keep in mind that just because someone may have tried to file a claim for these accidents, doesn’t mean their insurance covered them!

Team rivalry sparks injuries: One of our own agents told us about a Super Bowl party where things started heating up between fans from opposing teams. Our agent got caught in the middle of the argument only to find himself involved in a knock-down-drag-out which resulted in his head being smashed through a sliding glass door! The homeowner filed a MedPay claim on their homeowners insurance to cover his injuries and then had to cough up the loot for a new door.

Living room replays gone bad: One of our customers recalls thinking it would be a good idea to replay some of the game plays in the living room during half time with his buds. His wife was not pleased when she heard the noise and came in to find a broken sofa and a smashed antique coffee table. She was only further angered when her husband looked her in the eye and drunkenly suggested, “Touchdown?”

Alcohol related car crashes: One of the most serious and deadly Super Bowl Sunday accidents that can occur is an alcohol related car crash. All joking aside on this one- we’ve talked to drivers shopping for insurance who have been found guilty of DWI’s- many that occurred after sporting events. In addition, the National Highway Safety Administration reported recently that 48 percent of driving fatalities that occurred on Super Bowl Sunday were alcohol-related. Designate a sober driver or call a cab- we can’t emphasize the importance enough. Not only is the driver at risk but other innocent travelers on the road can fall victim as well. Also, keep in mind that host laws in may states can hold a homeowner responsible for damages caused by a drunk driver that left their party intoxicated.

Food Poisoning: Sounds silly but it happens all the time when people get together to share food that isn’t properly prepared. One homeowner we talked to in the past was curious if their homeowners insurance would cover them for serving spoiled and undercooked chicken wings that gave food poisoning to 20 different Super Bowl party guests. “At first I thought they made me feel sick because I added too much hot sauce,” said the homeowner. “But then a whole slew of my friends fell ill too- leaving us to blame the chicken wings that everyone had been eating”.

Stolen jewelry: It’s important to know who you are inviting over to your home for any kind of Super Bowl party as we’ve heard an increasing number of people tell us about guests stealing jewelry and other high value items while no one is paying attention. Make sure you know your guests so that they don’t go home with your possessions as party favors.

Objects thrown through the TV: One customer was disheartened to hear that they would probably not be getting a claim approved for a broken television set that he had, in the heat of the moment, thrown a remote control at and broken during last year’s Super Bowl game. Home insurance policies do not cover accidents like this so it’s advised to keep your remote away from the screen!

Dogs under stress can bite: On another serious note, keep in mind that our dogs are not always down for partying like we are, especially when they are not accustomed to being around a lot of rowdy people. We’ve heard many accounts of Medical Payments claims being filed for dog bites sustained by guests at a party. When even the tamest animal is under stress or feeling threatened they can lash out- so it’s best to keep the dogs outside or gated in a bedroom away from any loud commotion.

This is the most common time of year for people to start experiencing an overall feeling of discontent with their lives. Some researchers even claim that seasonal mood disorders are a common complaint amongst patients who tend to feel more depressed during fall and winter months. Here are a few top ways to shake the seasonal slump and boost your mental health until Spring:

Make a goal for the Spring: One way to forget about the winter blues is to start planning for the warmer months ahead. Plan a trip for April or give yourself a weight loss goal to hit by May. Giving yourself something to look forward to will help you forget about the stagnant feeling you have right now.

Get outdoors even if it’s cold: Just because it’s cold outside doesn’t mean you have to stay locked in the house. Take up a winter sport or just get outside for a stroll once a day and breathe some fresh air. Oftentimes a lack of sunshine is the reason for seasonal mood disorders so just getting outside to take in a little sun can do you some good. Too often we succumb to cabin fever when we really need to dust off our snow boots and get out into nature.

Socialize More: When the weather gets especially frigid and intolerable there’s no reason to bear it alone. Call that friend you’ve been meaning to get in touch with or plan a dinner party for a few pals. Having friendly faces around is refreshing.

Go on a healthy eating binge: Many of us start to feel unhealthy this time of year and a lack of in-season fruits and vegetables at the grocery store doesn’t help. But don’t resort to TV dinners just yet. Incorporate as much fresh produce as possible into your diet this time of year to make sure you are still getting all the vitamins your body needs. When all else fails go for canned or frozen alternatives.

Reaffirm your new year’s resolutions: Oftentimes new year’s resolutions are in full swing after the Holidays but come February and March, they begin to taper off. Get re-motivated to strive towards your new years resolutions or, make up a few new ones! Dreary weather provides no better opportunity for creating a personal finance budget or organizing the laundry room- tasks you won’t want to take on when the weather is beautiful.

With the recent explosion of SOPA and PIPA in the news media this week, the term “digital content piracy” has received a ton of exposure and left many people wondering if they themselves are guilty of this very crime.

An online pirate is anyone who reproduces the work of another without authorization to do so. Ever downloaded a song from Napster, Limewire or BitTorrent? How about when you burned that DVD so you could have your own copy?  These works are protected by the Digital Millennium Copyright Act. Most people who download these types of content without permission from the copyright owner think that they could never get caught. Or, they believe the site they downloaded the material from is the guilty party. This is so far from true. Not only can you get caught, but you can personally be faced with a massive lawsuit.

Did you know that every time you download or upload content your computer’s IP address can be traced directly back to you?

In a famous recent case, Voltage Pictures went after 24,000 people who downloaded a copy of the film Hurt Locker from a bit torrent website. The Internet Service Providers (ISPs) were required to give up the names of the users who downloaded the content and lawyers began knocking on doors. The Copyright Group demanded payment from the content pirates each between $3,000 and $5,000 to avoid being sued for $150,000. Voltage ended up taking 5,000 of the accused pirates to court.

These “content pirates” were everyday people just like me and you. They were not executives at YouTube or the CEO of Napster. They were our neighbors, cousins, babysitters and friends.

So, can you be sued for downloading copyrighted material from the web? The answer is yes. You can be caught and held liable. And since “content piracy” is not listed as a covered peril on a personal liability insurance policy- I wouldn’t depend on your liability coverage to help you with the legal costs.

So next time you sit down to download a movie or music for “free” from the Internet, you might want to think about the price tag that could actually come along with it. I’ve never seen the Hurt Locker- but I think it’s safe to assume it’s not worth a $5,000 fine- better yet a $150,000 lawsuit.