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Hurricane Season Begins June 1: Are You Covered?

By Kelly McMurtrie

Last year, experts recorded 19 tropical storm systems in the Atlantic Ocean – the third highest number in history. Of those, nine developed into fully fledged hurricanes, and one mutated into Superstorm Sandy – the second most catastrophic storm on record, outranked only by Hurricane Katrina.

Millions of homeowners were caught unprepared and underinsured last year because they didn’t know that their standard homeowners insurance policies did not automatically provide complete coverage against hurricanes.

Here are the types of hurricane-related coverage you can typically count on from most standard policies:

• Strong winds: Property damage caused by flying debris, falling trees or other wind-related perils typically is covered.
• Hail: If hail damages your roof or other property, you could file a claim for the repairs.
• Loss of use: If your home is so severely damaged by a covered claim that you’re forced to evacuate for repairs, a standard policy could help you cover temporary living expenses.
• Water damage: If heavy rain comes in through a leaky roof or otherwise damages your home and belongings, a standard policy typically will offer some coverage.

However, while most standard home insurance policies do include coverage against water damage, rising water is usually excluded. That means homeowners who have only invested in a standard policy are vulnerable to one of the most damaging factors that often accompany tropical storms and hurricanes: floods.

According to the Insurance Information Institute (III), average losses for homeowners after Hurricane Sandy flooded the East Coast last year topped $40,000. Compare that cost to an average annual premium of $500-$600 for flood insurance. Standard flood policies are available for homeowners as well as renters and typically provide replacement cost coverage for the structure of a home as well as actual cash value coverage for damaged possessions. All in all, the average homeowner pays less than $50 a month for peace of mind and better protection against hurricanes.

This year’s hurricane season begins June 1, and experts are already calling for a similarly busy season: Between now and Nov. 30, 16-18 tropical storms are predicted to develop in the Atlantic, including 8-9 fully fledged hurricanes, hurtling across the Atlantic at more than 74mph. The most worrisome prediction: At least three hurricanes are expected to make landfall somewhere in the U.S. this year.

Don’t wait until Superstorm Sandy II is predicted to land in your front yard. Most standard flood policies won’t actually take effect until 30 days after the date of purchase. If you’re not covered by a valid flood insurance policy when a disaster strikes your home, you’re taking a big risk that you’ll face devastating damages alone. Work with a licensed agent before the storms blow in to make sure you’re prepared with the coverage that’s right for you.

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The average cost of homeowners insurance last year was $897, based on policies sold across the U.S. by HomeInsurance.com in 2012. This was a 15% increase in the average national premium as reported by HomeInsurance.com in 2011. Some homeowners paid as much as $1,700 and as little as $520 to insure their homes last year. Check out the states where homeowners were paying the highest and lowest premiums in the map below. Where do your rates measure up? Let us know in the comments section below.

Note: The average premiums displayed in the map below are based on average premiums as sold by HomeInsurance.com in 2012 through top-rated U.S. P/C Insurers including Safeco, Travelers, Liberty Mutual, Progressive, MetLife, The Hartford, Foremost and ASI. Visit the HomeInsurance.com RateReport for the complete list of most recent data.

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Bigger homes should make us happier, right? Maybe not. Since 1950, the size of an average home in the U.S. has more than doubled. But we’re spending less time in them, working more to pay them off and – to top it off – sleeping less. Check out how we’ve become fatter, poorer and sleepier despite all the upgrades in our homes.

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Whether you’re getting ready to send your kids away on a summer adventure or planning an overdue getaway for yourself, the last thing you want to worry about when it comes to vacation is what could go wrong. Sometimes, investing in travel insurance for your trip is a smart move in order to give you that peace of mind and help you relax on your time off. But when a policy typically costs 5-8% of your trip’s total cost, it’s important to have a good understanding of when you really need travel insurance, and when you could do without.

Here are a few basic rules for determining whether or not travel insurance is right for your trip:

• If you’re not going very far for very long, you likely don’t need to invest in an expensive insurance policy. If you’re driving to Grandma’s for the weekend, camping out for the week or just taking a day trip to the beach, travel insurance is probably not worth the investment for you. However, if you have any concerns about being underinsured, it is certainly worth your time to contact a licensed agent and ask questions.
• If you’ve made big deposits on your vacation, travel insurance could help you protect your investments. If you’ve dropped several thousand dollars on plane tickets, hotel reservations, event tickets and more, an insurance policy could help you get reimbursed for those investments if something were to happen at the last minute. For example, if you get sick just before boarding the plane and aren’t able to get refunds, your policy can likely offer some support.
• If you’re going on an extended overseas adventure, you likely should look into some type of coverage. Backpacking through the rain forest or exploring Europe comes with a few higher risks than visiting Grandma on the weekend. Consider the fact that it could cost anywhere between $75,000 and $95,000 to be medically evacuated back to the U.S. if something were to happen and you weren’t covered – paying the relatively low cost for a travel insurance policy likely seems like a wiser choice for you.
• Check for pre-existing types of coverage you’re already paying for. There’s no point in shelling out extra cash for protection you already have. Some airlines offer flight reimbursements if your trip is canceled at the last minute even if you don’t have a travel insurance policy, and many credit card companies offer flight accident insurance, rental car insurance, limited baggage insurance and more. Find out what you’re already paying for before you sign up for anything more.

Remember, it’s always worthwhile to contact a licensed agent before purchasing an expensive travel insurance policy or shipping off uninsured. If you have questions about your vacation and how you should insure it, make sure they’re addressed long before you hit the road.

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You’ve purchased a smart home insurance policy that’s helped to prepare you for the fast-approaching perils of spring. You’ve got coverage against the strong winds that come with spring storms, smoke and fire damage that often accompanies the changes in temperature and much more. But what happens when you face a peril that doesn’t fall under the protective umbrella of your insurance policy? We’ve compiled a helpful list of things you can do to better prepare for those times when you need more than insurance.

Remove tree stumps and roots to help prevent water back-up

As the flowers and trees bloom in your yard, there could also be some dangerous growth occurring under the surface. If a rampant tree root invades the pipes on your property, you could face thousands of dollars in damages and repairs as a result of water and sewage backup –typically listed as exclusions in a standard homeowners insurance policy.

Rather than facing major plumbing problems (and a stomach-churning mess) later, attack the problem head-on before any damage occurs. Survey your property to find out if any trees pose a threat to your pipelines, and flush a chemical tree root killer through your system if necessary.

Landscape your yard for protection against mudslides

Mudslides can occur in almost any location but are typically brought on by heavy rains, flash floods and earthquakes. If you live on a hill, near a mountain, along a canyon or any other sloping surface, your home could be at risk of mudslides, which typically are not covered by standard home insurance policies.

You can help reduce damage to your home as a result of mudslides by doing a little landscaping in your yard. Plant some trees and other foliage along your property in order to help stabilize a hillside or other sloping surface. You also should have a system in place to be prepared for extended power outages as well as an emergency supply water, since mudslides can quickly wipe out communications lines and contaminate wells and groundwater.

Prepare your home for earthquakes

Another exclusion of most standard homeowners insurance policies is earthquakes. If you live in an area prone to tremors, take a few precautionary steps to help reduce the potential damage to your home and your valuable belongings inside:

• Use brackets to secure wall units, bookcases and other tall furniture to studs in the walls.
• Install shatter-safe window films in order to help prevent breaking glass.
• Store fragile expensive items in closed cabinets with strong latches, and use plastic putty to secure them to shelves.
• Repair any cracks in the ceiling or foundation as soon as you notice them, as earthquakes can cause these to rapidly worsen.

Buying the right home insurance policy is a powerful step in helping to protect the people and things you love. However, it’s important to know exactly which perils are and aren’t covered. Work with a licensed agent to learn more about the exclusions in your policy so you can take steps to prepare for any problem that comes your way.

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It’s springtime, and love is in the air – almost a third of all weddings occur in the spring, and the most popular month to get married is June, according to The Knot. Since the wedding season has begun, we’re offering a few smart insurance considerations every couple should hear before they say, “I do.”

Mother Nature could rain on your big day

The risks of getting rained out are obvious for those couples planning a tropical getaway wedding on the beach or for anyone planning an outdoor wedding. But Mother Nature can quickly ruin any wedding in a number of other, less obvious ways:

• Lightning causes the power to go out during your ceremony or reception.
• Severe conditions prevent your guests or bridal party from traveling to your wedding.
• A tornado causes damage to your venue a week before the nuptials are planned, forcing you to reschedule.

Investing in a wedding insurance policy could offer coverage in the event you have to reschedule your wedding as a result of severe weather.

No-shows leave you hanging

You write countless checks for the caterer, the band, the venue, the photographers, the florist and other vendors before the big day. What if one doesn’t show up? Rather than losing your entire deposit, you could get reimbursed by a smart wedding insurance policy.

Accidents happen

Almost any venue you book for a wedding will require some form of liability insurance in case an accident happens. This means if Uncle Joe grooves too hard on the dance floor and throws out a hip, your policy could cover the costs. It could also offer protection if a mischievous ring bearer spills punch on the carpet or otherwise wreaks havoc on the venue.

Don’t rule out cold feet

Even if you and your fiancé are madly in love, it’s important to protect yourself against cold feet. Many wedding insurance policies will reimburse you if you’ve already made big investments in your wedding when your spouse-to-be gets cold feet.

Even if you’ve planned every detail of your fairytale wedding and can’t imagine anything going wrong – life happens. Compare the price of a typical wedding insurance policy ($125-$400) to the price of replacing your entire wedding (the average cost of tying the knot is almost $30,000!). If you’re getting ready to say “I do” without any kind of back-up plan, consider contacting a licensed agent before the big day to help you insure your happily ever after.

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For many homeowners, the beginning of spring signals a time for cleaning. That makes great sense, of course. But while you’re moving stuff around in every room so that you can clean it, take a few extra minutes to compile a detailed inventory of what you’ve got.

Why do I need an inventory?

A home inventory is an extremely valuable resource to have if you ever need to file a home insurance claim for property damage. It’s extremely difficult to name every insured item that’s been lost or damaged after a covered peril if you don’t have a ready-made list to reference. That’s why homeowners who haven’t taken the time to inventory their belongings are much more likely to forget to claim a loss (or several losses) and miss out on valuable coverage they deserve than homeowners who have.

How do I create mine?

As you go through old toys, tools, clothes and other assorted belongings, here’s what you can do to quickly create an effective home inventory:

• Download a template or create your own list with categories such as “Quantity,” “Item Name,” “Serial Number,” “Year Purchased” and “Cost.”
• Write a brief description for each item that includes any other pertinent information not included in the categories above. For example, if one of your more expensive belongings is in pristine condition, make sure you record that information in order to prove value later.
• Take a photo of each item in order to help prove quality and condition.
• Include receipts when possible in order to help prove cost and estimated values.

Your property and contents coverage can be used to replace the contents of your home, so include everything you’d like to be reimbursed for after a loss. Furniture, TVs, electronics, tools, sports equipment, your wardrobe and other belongings should all be included in a detailed home inventory.

Once you’ve got everything written down, it’s a good idea to make a copy and store it at a friend’s house or go ahead and send it to your insurance provider to have on record. You should also store your copy in a fireproof safe or keep a digital file online.

In addition to helping you organize your home during spring cleaning, a home inventory will keep you organized during the claims process and help you get all the coverage you deserve when you need it most.

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This blog often details ways to lower home insurance premiums by promoting a safer lifestyle, such as installing smoke detectors, fire extinguishers, deadbolt locks and more. With Earth Day around the corner, we thought we’d discuss how some major insurance carriers are now rewarding green homeowners and drivers for their earth-friendly initiatives. Check out these suggestions for ways the green choices you’ve made are – or should be – preserving your bank account.

What you might not know about carpooling

You’ve made the responsible choice to carpool to work with a friend. You enjoy the company, for one thing. But there’s more. You’ve also cut the amount of carbon emissions you and your friend generate and the amount of fuel you use. Here’s why it’s important: In a single year, the average car in the U.S. emits almost 10,000 pounds of carbon dioxide and guzzles about 500 gallons of gasoline, according to the Environmental Protection Agency. You’re reducing emissions and saving money on gas.

Here’s what you might not have considered. Most top insurance providers reward responsible policyholders who drive less. Carriers use a number of factors to determine the risk you pose and the rate you pay. One is how much you drive.  If carpooling means you put less than 12,000 miles on your vehicle each year, make sure your insurance agent knows it and that your premium reflects it. Other ways to help reduce the mileage on your vehicle include walking or riding a bicycle whenever possible for short trips. The additional reward from this also is valuable: You’ll be healthier.

The ‘other’ advantage of your hybrid car

You bought a hybrid car because they’re as much as two-thirds more fuel-efficient than conventional vehicles. That’s a lot of gas and emissions you’re saving right there. Plus, many top insurers believe hybrid owners are more responsible drivers, and they consider the cars safer – at least in part because they generally weigh more than similar conventional vehicles. The result: Some providers offer hybrid car insurance discounts of as much as 10%.

Stop smoking: You can clean up three ways

Did you know that three cigarettes can produce 10 times the pollution of a diesel engine during the time they’re lit? With 1.1 billion smokers in the world today, the consequences of smoking on the environment are staggering. Plus, it’s common for smokers to toss their cigarettes out the car window when they’re done, where the butts take about 25 years to completely decompose. Quitting means you’re helping to clean the air and the land around you.

But you also can clean up another way. In addition to the obvious environmental and health benefits of not smoking, most insurance companies consider homeowners who are completely tobacco-free to be lower risks for house fires and other perils. As a result, nonsmokers often receive discounts of up to 20% on their premiums.

Choosing cozy is really living large

It’s simple math: The smaller your home, the less energy it requires. You don’t have to have the largest home on the block. A smaller home means you spend less to heat, cool and power your place. You also don’t require as much dwelling coverage. That’s the portion of your home insurance that pays to repair or rebuild your home after a covered disaster. Your dwelling coverage should be equal to the amount it would take to rebuild your home completely. The less it costs to do this, the lower your premium.

All systems on go

You updated your electrical and heating and cooling systems so they’d use less energy. In doing this, you also reduced your risk of a costly failure that could lead to fire, water damage and other expensive problems. Make sure your insurance carrier knows: Many offer premium discounts of up to 20% for homeowners who live in a new home or have invested in new systems during the past 10 years.

You’ve seen the light on solar panels

The solar panels you installed are a smart choice for sustainable living. In addition to drastically lowering electricity costs, the panels could help some homeowners qualify for an insurance discount of as much as 3%. Even if your insurance provider does not offer this discount, make sure it knows about your solar panels – the improvements could increase the replacement value of your home – so that you don’t run into coverage issues in the event of damage.

Get the full benefit of the remote advantage

You cut your heating and cooling costs by using SmartHome technology to control your thermostat when you’re not home. Most of these systems typically include or are part of monitored security systems. Why does that matter? Burglars are three times less likely to target homes with security systems; as a result, many home insurance carriers will reward policyholders with a discount of as much as 10%.

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The calendar says it’s spring – even if the temperatures outside don’t act like it yet. Regardless, the changing of the season means it’s time to conduct some maintenance on your house. Sure, it’s a chore, but you could save big bucks in the long run by taking care of the little things before they become big problems.

Put aside some time over the next two or three weekends to take care of the following issues. They could prevent big home insurance claims.

• Time for a gutter check: Break out the ladder (make sure you have a partner to steady it) and check out your gutters. Clean out any leaves or other debris that’s made its way into them and checks for leaky and loose spots. Why? If the gutters aren’t draining correctly, you could wind up with water in your basement or crawlspace.
• The truth about the roof: While you’re up there with the gutters, take a look at your roof for loose or missing shingles. Get those repaired, of course, but you also should consider whether you need to start a roof replacement fund for a long-range fix.
• Look for concrete problems: Is your slab cracking or moving? Is it draining properly? Fill any cracks with silicone caulk or a concrete crack filler.
• Service your air conditioning system: Get a licensed contractor to give your system the once-over. This annual task will keep your system operating at peak levels longer. Also, change your interior filters.
• Trim your shrubs and trees. This helps prevent mildew on your home, and it also can extend the life of your siding. Dead branches can cause damage to your roof and nearby windows.
• Pressure situation: Pressure wash the outside of the house. This will remove mold, dirt and just generally brighten up the outside of your home. Look for cracks and chips in your paint job while you’re doing this and address them.
• Don’t get alarmed: Change the batteries in your smoke alarms. The last thing you want to do is let one run out of power when you need it. If nothing else, you’ll avoid that annoying chirp when a battery is running low.
• Get steamed about it: Buy or rent a steam cleaner for your carpet. You’ll be appalled by how much grime you suck out of the carpet. This is especially a big deal if you have pets or children.
• About the refrigerator: Clean it out. Get rid of outdated food, including condiments. Do the same with stuff in your freezer. If it has freezer burn, chuck it. If you’re never going to cook those last few sweet potato fries in the bag, throw them away. If your units have coils in the back, you might need to vacuum them.
• Fan-cy that: Did you ever take a close look at your ceiling fans? No, not the side of the blade you can see from below. Look at the other side. Wipe them down and get rid of all the crud that’s there.

Is there more you should do? Absolutely. You haven’t even touched the lawn yet, for example. But you’ll enjoy spring a lot more if you’ve given the house a thorough once-over before the weather gets too great. And who says you can’t take a break from all that cleaning for cocktail hour?

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It’s that time of year again – time to open up all the windows and screen doors and let in some fresh air. If nothing else, it can dispel  the overwhelming perfume of Mom’s cleaning chemicals and burnt-out vacuum bags. Even better, get outside yourself and move around some while the house is getting aired out. Heck, you could even fatten your wallet while you trim your waistline. Check out these three ways getting out in the yard this spring could help you save money on insurance.

Clear debris from the yard and tie down patio furniture

If you’ve had toys, tools or other debris strewn out on your lawn or covered in snow all winter, it’s time to bring them in. Spring brings thunderstorms and other extreme weather that could send these things crashing into the side of your house. If you set out patio furniture in preparation for when the sun finally comes out, make sure to lock it down or tie it down so that strong winds, rain or even a flood won’t carry them away (or worse – send them crashing into a sliding glass door). It’s easy to help prevent this type of damage (and the resulting insurance claims) with a couple of minutes of work in the yard.

Clean the gutters to help prevent water damage

Debris in your gutters causes rainwater to overflow onto the soil around your home and seep into your foundation. A damaged foundation could threaten the entire structure of your house, and repair costs for serious cracks add up quickly.  Clogged gutters may also lead to leaks in your basement and rotting wood that likely will invite even more damage from termites down the road. Get out in the yard now as it starts to warm up, and make sure your gutters won’t be the source of costly insurance nightmares later.

Trim dead branches and overhanging limbs

Before everything starts to bloom again, clear out the casualties of winter that are still hanging around your property. Dead branches or loose tree limbs over your roof could easily be knocked out in a storm and are an extremely dangerous hazard for your roof. Consider the potential water damage, property damage and other damage (not to mention the cost of removing the fallen tree or limb from your living room). It makes much more sense to get out in the yard and cut them down now before they cause big damage – to your home and to your bank account.

Following these spring tips every year is a smart, easy way to help prevent overwhelming repair costs down the road. Remember, even if you can file a claim for damage, you’ll still have to come up with your deductible as part of getting it repaired. Plus, responsible homeowners who stay claims-free for 10 years or more also could qualify for discounts of up to 20% on their home insurance premiums.