Seasons Greetings-Be Careful

I would like to offer and our clients and blog readers the best this holiday season. The past year has been difficult for many in our insurance community and we all hope the recovery of our economy happens sooner than later for all our sake.

A couple things to be aware of always, but especially this time of year are car breakins, credit theft and holiday lights or candles.

A few year ago someone took a store credit card out in a our names and did their Christmas shopping on us. We got a bill $11,000.00 from a Sears Credit Card. We never had a Sears credit card. The charges were removed but it was a real pain.

We now have identity shield coverage on our homeowners policy.

Valuables left in cars is just asking for trouble. You would not believe the number of calls we get year round, but especially around the holidays about cars getting broken into. Goods bought are one thing but when you wallet or purse is stolen it is another. I never leave my wallet in the car. They can have my cell phone, camera and that wad of napkins I keep in the door pocket, but a thief is not getting my drivers license and credit cards.

Christmas tree lights and holiday candles: Just use common sense. Don't overload electrical outlets and be careful where you put candles.

Enjoy the Holidays!

Water Water Water

Did you know that water is the number one loss paid on a home policy in terms of frequency and dollars? The amazing thing about this is water losses have been restricted to sudden and accidental loss only. As and example, the pipe that suddenly breaks under the sink or the ice maker hose that bursts.

Water that backs up on a roof deck, water that hits the ground first and runs into the home, surface water (floods), that drip that has caused dry rot, the floor under the toilet that has been deteriorating for years and water that has been lapping over the tub under the tile are excluded from your home policy (see your policy for full details).

I will be happy to review the water and other exclusions in your home owners policy.

Ecobuild

A brand new endosement that carriers are offering is ECOBUILD. For those who would like to use more enviromentally friendly building materials in the event of a loss this endorsement is great. Ecobuild works like building ordinence coverage. There is a percentage of coverage A dwelling limit that can be used to upgrade to enviromentally sound building materials that typically cost more than the traditional building material that you had in the home prior to the loss.

Some Umbrellas Leak!

You may have purchased an umbrella policy and if so you have done the right thing. Just the act of driving a car exposes you to tremendous liability, but not all umbrella policies are the same. A TRUE UMBRELLA policy is both excess coverage beyond your underlying liability on your cars, home, boat, motorcycles etc but also broader coverage. Over my years in the insurance business I have seen claims denied on the base home or car policy, but the broader shorter definition of the TRUE UMBRELLA policy picked up the cost related to that liability.

Many carriers sell a product that they refer to as an umbrella, but it is actually just an excess policy. So, this product only provides the excess not broader coverage. If they claim is denied on the underlying policy it is automatically denied on the excess policy.

There is also what I call a hybrid umbrella. This insurance company will give you broader and excess coverages on only their policies, but not on a differnt carrier's underlying exposure. This carrier writes only home and auto, so if you have a boat, motorcycle, RV, possible a second home or personal income property you would only get the excess not broader coverages.

Cars that are readily available to drive (room mate's, live in relative) need to be disclosed and covered. A coverage called DOC (drive other car) can be added to your policy so you have your good limits available on that other car. You may not know what limit of liability a room mate has or maybe the insurance on that other car is lapsed. You can also, add drive other car physical damage, so that car available to you has comprehensive and collision coverage.



Here is a typical scenario: Your mother in law lives with you and has her own car and her own insurance lets you drive her car when needed. She happens to be away in Europe and forgets to pay the insurance. Now, it is important to know that in the US the insurance follows the car in a loss not the car you insurance and was not in the accident. So, while the car has no insurance you get in an accident. There is no coverage from your mother in laws policy because she forgot to pay it. Your insurance policy does not extend to car that you do not insure. This is where DOC coverage and DOC material damage is important. With the DOC coverages the insurance on the car you own and insure extends to your mother in laws car.



This is not to be con fussed with permissive driver rules. That applies to vehicles you own and insure that someone outside of your house hold is driving. The fact that your in law or roommate make the car they own readily available (they live with you) to you can void permissive driver privileges