Category: Home Insurance

Just Because You’re A Renter Doesn’t Mean You Don’t Have Insurance Needs

Posted on by butlervetinsurance

Many renters mistakenly believe that they don’t need Renter’s insurance or view it as an expensive luxury. However, insurance needs aren’t negated just because one happens to be renting their home.

For those not familiar with Renter’s insurance, it’s an insurance coverage that protects the renter from property losses from damages like water and fire. It also provides protection for liability risks, such as lawsuits brought by the landlord of the property, pet attacks, falls and slips, and guest accidents. This type of coverage is available in most areas and has an average $20 monthly premium rate for around $500,000 dollars worth of liability coverage and $20,000 dollars worth of property coverage.

Trusted Choice, a network of financial and insurance service firms, recently found in a survey that almost 25 million American home renters didn’t have any insurance coverage to protect themselves from losses and that most renters have limited, if any, knowledge of Renter’s insurance.

Eight percent of the respondents without Renter’s insurance had never heard about Renter’s insurance before. Meanwhile, 17% said they weren’t aware that they needed Renter’s insurance and 26% percent felt that Renter’s insurance was too costly.

According to the study, some renters also mistakenly believed that their insurance needs were covered under the insurance policy held by their landlord. In reality, landlords don’t typically insure anything other than the building and infrastructural elements like HVAC systems and elevators. Other losses incurred will be directly on the renter’s shoulders. Even negligent actions caused by one tenant, such as a fire, that affects other innocent tenants in the building aren’t typically covered by the landlord’s insurance.

Other key findings of the study included:

  • Fifty percent of the surveyed renters owned pets. Thirty-two percent of the non-pet owners had Renter’s insurance. Although renters that own pets have a higher liability exposure than renters without pets, a mere 26% of the pet owners had Renter’s insurance.
  • Eighty-nine percent of the surveyed renters owned at least one expensive electronic device, such as a computer, camera, digital recorder, or home theater system. This group was more likely to have a Renter’s insurance policy than those that didn’t own such devices.
  • Fifty-three percent of the surveyed renters owned at least one form of exercise or sports equipment, such as a skis, bicycles, or a home gym system. This group was more likely to own Renter’s insurance than those that didn’t own such equipment.
  • Only thirty-one percent of the renters operating a home business from their apartment, condo, or other type of rental unit had Renter’s insurance.

Call 877-994-6787 for your FREE price-comparison Renters Insurance Quote Today, that’s 877-99-INSURE!!!

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Check Insurance Coverage Before Diving Into Your New Pool

Posted on by butlervetinsurance

You’re having a new pool installed in your backyard, and you can’t wait to dive into a summer of swimming fun. Of course, you might be so busy buying water wings, noodles and floats that you forgot to take care of one very important detail: Your insurance. Now is the time to take a close look at your Homeowners policy to see if you have sufficient coverage for your new pool. Your first step should be to give one of our insurance agents a call right away and let us know you have a new pool. If you neglect to inform us of this important fact, it could cause problems down the road if someone is injured in your pool. Here are a few insurance facts to keep in mind as you get ready for your pool opening:

Your pool is separate from your home. Homeowners insurance generally provides coverage for damages to your home and “other structures” on the premises. As far as your insurance company is concerned, your pool is considered a separate entity from your house — which means it is covered under the “other structures” portion of your policy, together with detached garages, sheds, and gazebos.

With most Homeowners policies, the maximum amount of insurance coverage for these other structures is 10% of the amount of coverage on your home. In other words, if your insurance policy covers $100,000 on your home, the coverage you would receive for your pool and other structures would be $10,000 combined. If you spent wads of money on a fancy new pool, $10,000 might not be enough to cover serious damages to it. Plus, if you have a shed and a detached garage in addition to a new pool, keep in mind that this amount will have to cover damages to all three structures. You might decide that you need to purchase additional insurance. The type of pool damages your insurance will cover varies depending on your specific policy. Be sure to read the fine print and figure out exactly what your policy covers. Most policies do not cover damage caused by freezing, thawing, pressure or weight of ice water. Therefore, if you live in a particularly cold area, be sure to protect and “winterize” your pool properly before the colder months hit.

Protect yourself against pool liability issues. Insurance can also protect you against liability issues related to your pool. Obviously, there are serious dangers associated with pools, including injuries and drowning. As a matter of fact, about 45,000 swimmers are injured and 300 people drown in backyard swimming pools every year. Although the liability portion of your Homeowners policy will protect your assets if someone sues you, it might not be enough. Most Homeowners policies pay up to $100,000 in coverage each time a person makes a legitimate civil claim against you for an injury that occurred on your property. When you install in a pool, you are increasing the chances that someone could be seriously injured or even killed on your property. Therefore, you should consider purchasing additional liability coverage after you install your new pool. First of all, find out if you can purchase higher liability coverage limits on your existing Homeowners policy. You might be able to increase your coverage from $100,000 to as much as $300,000 for a minimal premium.

However, this still might not be enough for a pool owner. You should also consider purchasing what’s known as a Personal Umbrella policy. This type of policy offers a higher level of liability coverage and ensures that you and your family will be protected if someone sues you for damages. Umbrella policies typically pay up to a predetermined limit, which is usually $1 million, for liability claims made against you and your family.

Call our office today and discuss how you can protect yourself from liability issues relating to your pool.

Follow pool safety rules! Another way you can protect yourself from liability issues is to create a safe swimming area and make sure everyone who takes a dip follows your pool rules. Here are a few safety tips to keep in mind:

  • Do not install a pool diving board or slide. (Many insurers will not even cover pools with these items because they are far too risky.)
  • Install a secure fence around the pool.
  • Never leave small children unsupervised near the pool, even for a few seconds.
  • Do not allow anyone who cannot swim into your pool.
  • Keep children away from pool filters. The suction from these filters can cause injuries or trap them at the bottom of the pool.
  • Do not swim alone or allow others to swim alone.
  • Do not allow people who are under the influence of drugs or alcohol to swim in the pool.
  • Check the pool regularly for glass, bottle caps and other hazards.
  • Keep a secure cover on the pool during the off-season.

If you have any questions about your protection, call the Stromsoe Insurance Agency Total Protection Team for the right answers to your questions.

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Teen Drinking at Parties = Insurance Issues

Posted on by butlervetinsurance

Every spring brings with it the prom and graduation party seasons. Unfortunately, these events often become occasions for teens to drink alcohol. Teens at unsupervised parties risk harming themselves and others when they drink. Parents who host these parties might bear responsibility for what happens there and for injuries or damages occurring after the guests leave. Although their Liability insurance might cover any financial damages, the circumstances of the accident determine which policy will respond, and this will affect how much coverage the parents have.

Assume that a guest consumes several beers at the party, drives off in his car, and gets into an accident, injuring himself and a passenger. The parents of both injured teens sue the parents who hosted the party, who in turn notify their Homeowners insurance company. However, the policy’s personal liability coverage does not apply to an insured person’s legal liability for:

  • The occupancy, operation, or use of a motor vehicle by any person
  • The entrustment of a motor vehicle by the insured person to anyone else
  • The insured person’s failure to supervise or negligent supervision of any person using a motor vehicle
  • The actions of a minor involving a motor vehicle.

Because of this, the Homeowners policy will not cover the parents’ liability or defense costs. Their Personal Auto insurance policy might cover them, however. The policy’s liability insurance covers the individuals named on the policy and household residents who are their relatives for their liability for bodily injury from an accident arising out of the use of any auto. Therefore, even though the parents were not actually operating the vehicle involved in the accident, their policy will cover their liability. In addition, the auto policy that applies to the car involved in the accident (the guest’s insurance, or, more likely, his parents’) will also cover the hosts’ liability for the passenger’s injuries. The hosts’ policy will step in if the owners’ policy either does not apply or pays out its maximum limit of insurance.

Now assume that the guest consumes the beer, but a sober guest gives him a ride home. Rather than go straight to bed, the young man goes for a swim in his parents’ pool and drowns. His parents sue the hosts, alleging that his judgment was impaired because the hosts allowed him to drink. In this situation, the homeowner’s policy should pay for the hosts’ liability and legal defense. Because this accident did not involve a motor vehicle, and no other policy provisions that would remove coverage apply, the policy will cover this claim.

Although one policy or the other might apply to a liquor liability claim, there could be significant differences between the amounts of coverage the two policies provide. Most homeowner’s policies provide personal liability coverage of at least $100,000 for each occurrence; many provide limits of $300,000 or $500,000. Auto policies might provide much less coverage. Most states have laws setting the minimum amounts of liability coverage that an auto policy might provide, but those limits are relatively small. For example, New York law requires minimum limits of $25,000 for injuries to one person and $50,000 for injuries to two or more people (higher amounts apply for death claims.) Should a young person become seriously injured or killed, the damages claimed could well exceed these amounts. Parents should consider buying as much liability insurance as they can afford; they should also think about buying an umbrella policy, which pays for damages that surpass the amounts payable under homeowner’s and auto policies.

Of course, the best course of action is to properly supervise parties, so that everyone has a good time and lives to have another one someday.

Don’t Forget to Update Insurance Policies When Moving

Posted on by butlervetinsurance

Anyone that has ever moved can attest that the process has a considerable impact on everything from transportation to and from work to how and where free time is spent. When considering a move, one change that’s often overlooked is insurance coverage. Often a move will affect whether or not various insurance coverage policies are still adequate.

Homeowners insurance is usually a concern when moving. For the average person, a home will be one of the largest investments they make in their lifetime. What was adequate for previous housing might not apply to the new home. The homeowner will need to assess the differences in their new home versus their previous location carefully to determine if a new policy or transferring previous coverage is best; for example, the new home might be in a flood area or other high-risk area or contain more property to cover. It’s always prudent to research the rates and coverage from several insurance companies.

Auto insurance is also usually impacted in moves further away or closer to employment. A move closer to employment or to a suburb might translate to a lesser risk. Safer driving conditions could mean lower rates. Conversely, a further distance equals a greater amount of driving time. And, this is an equation that insurers view as the driver being a greater risk. A drive that now involves a more congested roadway may also translate to a greater risk. In any event, when an insurer views a driver as a greater risk, higher rates soon follow. In the event that rates are increased from a move, there are a few steps that can help return the premiums to the previous level or at least lower them. The driver might consider increasing the deductible, buying multiple policies through the same insurer for a discount, or installing anti-theft hardware on the vehicle to lower the overall cost of the insurance.

After you have taken care of your Homeowners insurance and Vehicle insurance policies, the next insurance that should be examined is Life insurance coverage. How moving affects Life insurance coverage might not be so obvious as Homeowners and Vehicle insurance. Those that are upgrading their home or purchasing a home with a much higher price tag will most likely no longer have adequate Life insurance. The coverage ideally should be adjusted to account for the increased monetary commitment of a higher mortgage and household expenses. Yes, this is an added cost, but necessary to prevent leaving loved ones unable to maintain the home.

If you have any questions, comment or concerns regarding your insurance coverage, contact one of our licensed Protection Coaches today at 951-600-5751 or 877-994-6787 for the right answers to your questions.

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Spring Cleaning, You’ve Got To Be Kidding Me!

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Spring is on its way (I swear), and it’s a perfect time to clean the garage, organize your home for summer projects or get your house set to host friends and family members for graduation parties, weddings or summer bbq’s.

Hah, my wife, Cindy, would fall off her chair laughing if I told her I was going to write about the virtues of spring cleaning or any cleaning for that matter.  The kids would be hiding because they know I’d search them out and enlist them to keep my actual cleaning involvement to a minimum.

Let’s just say that we are in perfect agreement that I have a very high clutter tolerance.  Sweeping out the garage is good on one of the first really nice weekend days of the year.  Plus with all our rain this year there is definitely major dirt accumulation on the garage floor.

This year might be slightly different though since we’ve got a wedding coming up this year.  I’ve already seen hints that I may be enlisted to think about projects that would be “necessary” if we are going to host a wedding celebration.

Spring is a time lots of families are planning forward and laying out those projects as they are sweeping, cleaning and planting everything that’s makes it so beautiful here in the summer.

All right at the risk of being mocked by my bride, here are a few tips to consider:

Analyze the situation. Walk around your home with a notebook and pen and make a list of problem areas that need the most attention.  This might include junk drawers, garages, closets, storage spaces, etc.  Ask yourself, what is it about that room that really bothers you or where will the guest be hanging out? This can help you prioritize your list of rooms to tackle first.

What can you give away to a great charity? Moving things around doesn’t do much of anything except move the problem from one room to another? There are charities that need most any kind of item that you are no longer using and you can eliminate the clutter once and for all.

Stay off of ladders, stay off of ladders, stay off of ladders. My joke is that nothing good can come from a ladder and it’s right about 90% of the time. The reason it’s right so frequently is that most people don’t have extensive experience using ladders and they are often used incorrectly.  People are very nonchalant about how far up they are and the surface they are using ladders on.  I’ll just jump up there and do this, becomes a trip to the emergency room and months of rehab.  According the National Institute of Health, over 97% of the ladder injuries occur in a non occupational setting (home) and ladder injuries rose more than 50% from 1990 through 2005. Check out how to safely use ladders at www.laddersafety.org.

Know when to do it yourself and when to hire a professional. See Ladder Safety if you want to know when to get a professional.  Okay, maybe not any time you have to use a ladder but stop and think if you have what it takes to visualize, design and implement a project.  You might be able to help but is it really something you (and/or your brother in law) are qualified to do yourself.  In my case, the Q and A is pretty short but for lots of my friends, they are quite qualified to do a lot.  Ask yourself before you get in too deep for two reasons, things go bad when we don’t know what we’re doing and it usually cost more to fix than it would have to get the right people to do it in the first place.

Remember to call us if you make additions or updates to your home.  Updates often result in premium discounts for you and we can’t cover additions if we don’t know about them!

Spring is coming, spring is coming, spring is coming!

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Evaluate Your Property and Consider Flood Insurance

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Don’t wait until the weather forecast calls for prolonged heavy rains before buying flood insurance. While this practical insurance can be purchased anytime, the policy does not take effect for 30 days. As the most common natural disaster in the country, flooding ruins millions of dollars of homes and property every year. Even so, flooding is not commonly covered in your typical homeowner’s insurance policy, making it necessary to purchase additional coverage for this costly, devastating disaster.

If you are in a high-risk flood zone, a federally regulated lender will require a would-be borrower to buy flood insurance in order to qualify for a mortgage loan. To satisfy the lender, flood insurance must be purchased in an amount that sufficiently covers the loan.

A homeowner should also buy flood insurance if he or she resides in a flood plain with no failsafe controls, such as a dam. Flood policies even pay off if the President does not declare the area a federal disaster area, which can prove to be invaluable. Because the nation’s Chief Executive Officer rarely issues such a declaration, protecting yourself is extremely important. Besides, you have to repay the federal aid you receive for home repairs related to a natural disaster so providing your own protection is the only way to ensure financial recovery suffered from flooding.

Not all homes qualify for flood coverage. For instance, flood insurance for beachfront or ocean-side property may not be available for the obvious reasons.

The Federal Emergency Management Association (FEMA) reports that more than 20,000 communities have agreed to tighter zoning and building measures to control floods. Residents of these communities can buy flood coverage from the National Flood Insurance Program (NFIP), which FEMA oversees. As of 2009, NFIP had 5.7 million flood policies inforce nationwide.

Premiums for flood insurance vary widely, depending primarily on individual risk. In determining price, flood insurance underwriters consider several factors including the property’s elevation, proximity to bodies of water, and whether the dwelling has a basement. Flood insurance is available to homeowners, renters, condo owners/renters, and commercial owners/renters.

Call our office today! We’d be happy to assist you through the murky waters.  Here are 4 easy ways to reach us:

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2. Fax 951-677-6265
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Whose Insurance Covers the Kids When Parents Live in Separate Households?

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Michael and Maureen divorced after 18 years of marriage and agreed to joint custody of their three children. Their 11 year-old son Mikey is riding his bike one afternoon with some friends and not paying full attention to the road in front of him. A five year-old child chasing a ball runs into the road and Mikey strikes her with his bike, causing her to fall and break her arm. The child’s furious parents sue both Michael and Maureen for compensation for her injuries and trauma.

Not long after, their 16 year-old son Mark gets his drivers license. One evening while driving home, he swerves to avoid a deer in the road, loses control, and plows into two parked cars. Both cars are relatively new; the repair bills come to thousands of dollars.

Because Michael and Maureen now have separate households, they each have their own Auto and Homeowners insurance policies. Are both parents responsible for the children’s actions? Is only the parent who had custody at the time of the accident responsible? And whose insurance pays for the damages? Will either policy pay? With the increasing prevalence of two-household families and blended families, the question of which parent (and, therefore, which insurance policy) is responsible for a child’s actions has become more common. The answer is not always clear.

A standard Homeowners policy covers the people named on it (the named insureds); household residents who are either relatives of the named insureds or under age 21 and in the care of a named insured or relative; and full-time college students who are either relatives of the named insureds and under age 24 or others in the care of a household resident and under age 21. A standard Auto policy covers the named insureds and “family members” (residents of the household related to the named insureds by blood, marriage, or adoption, including ward or foster children.) Michael and Maureen have joint custody of their children. In which parent’s household are the children residents?

State laws and courts have answered this question in a variety of ways. For example, states such as New York have established “dual residency”; that is, a person can be a legal resident of multiple households at the same time. However, other states such as Montana have laws prohibiting dual residency. Some courts start with the custody awarded in the divorce decree but also consider how the parents are actually handling custody. A New Jersey court found that a child had dual residency, despite the mother having legal custody, because both parents had actual custody at different times. The judge ruled that both parents’ Homeowners policies applied to the child.

Other states have ruled that no one factor determines residency; a court must look at multiple factors. A Georgia court devised an approach that measures custody time and focuses on whether there is in fact more than one household. New Jersey courts look at both measurable factors and qualitative factors, such as whether people in the household function together as family members.

If Michael and Maureen live in a dual residency state, both their Homeowners and Auto policies might cover the accidents their children have. Policy terms explain how they share loss payments for these incidents. In other states, the solution might be more complicated. A court may weigh several factors and assign residency to only one of the households, requiring one parent’s insurance to pay for the loss. Since the outcome in these situations is uncertain, the best thing for divorced parents to do is to make sure they have plenty of insurance provided by financially strong companies.

Check with one of our licensed insurance protection coaches often to find out what coverage you have and need. Call 877-994-6787 or 951-600-5751, we’re here to ensure that you have exactly the coverage you need.