Extended Dwelling Coverage on a Homeowner

Many moons ago all insurance companies used to have guaranteed replacement cost endorsement you could put on your homeowner policy. This endorsement would guarantee that the insurance company would rebuild your house exactly as it was prior to the claim even if your limit of insurance on the house was lower than the cost to rebuild. Today many insurance companies limit that endorsement to only homes that are considered high value (homes valued at $500,000 or more). The endorsements also require that the insurance companies send out professional reconstruction appraisers to figure out as best they can what it would cost to rebuild your home.

For those homeowner clients who have a house valued at less than $500,000 the endorsement that needs to be added to the homeowner policy is Extended Dwelling Coverage. What this endorsement does is give a percentage of the homeowner limit as extra coverage in case of a total loss on the home. For example, if you have 25% Extended Dwelling Coverage and your house is insured for $200,000 then you would actually have $250,000 if your home suffered a total loss ($200,000 X 1.25 = $250,000).

We feel this coverage is important for two reasons. One reason is we do not send out professional reconstruction appraisers to every house. Instead, insurance companies use in house software that helps determine reconstruction cost on your house using things like square footage, construction type, location, year built, etc. to come up with a value. These programs are usually very accurate but nothing replaces the accuracy of an in home visit with measuring tape and details of the type of amenities in the house. The Extended Dwelling Coverage endorsement helps make sure that if for some reason the calculations on the house are a little off, there is still enough insurance there to replace the house to its original state.

The second reason we encourage this endorsement is for catastrophe situations. Let’s say a tornado wipes out not only your house but two other neighborhoods worth of homes. Every builder and building supplier in town will be in demand. Economics 101 will tell you that if demand goes up and supply is the same, then prices are going to rise. That home that only cost $200,000 to rebuild just got a lot more expensive but if you have the Extended Dwelling Coverage on your homeowner you would be in a much better situation.

One thing to note about this endorsement, you can’t use it to underinsure your home. In our example above, you can’t insure the house for only $160,000 and add the 25% Extended Dwelling Coverage (which would put your total insurance at $200,000). That is not the intent of the coverage. The insure companies will use their software to figure out a good estimate of the cost to rebuild your house and you would have to have it insured for that amount in order to add the coverage.

Child Under 13 in Your Car? Washington Law Requires They Ride in Back Seat

A recent poll by PEMCO Insurance has found that, although a vast majority of Washington drivers understand that the safest place to have a child passenger is in the back seat, just 43 percent say they see other drivers in compliance.

Children's car seat, properly used.

Washington is one of 14 states that require a child under the age of 13 be seated in the rear of a vehicle "where it is practical to do so", according to the Revised Code of Washington.

Not only are front-end crashes the most prevalent type of auto accident, the added threat posed by air bags, which are designed for adult passengers, makes the front seat a dangerous place for youngsters. Air bags can severely injure or even kill small children seated in the front seat, even in an approved car seat.

This is a disparity of opinion among drivers as to what should determine when a child can ride in the front seat. Nearly half the poll respondents said height should be the primary criteria, and another 21 percent believed that weight should be the determining factor. Only 25% of respondents agreed with the state age requirement   that the age of 13 was the key factor.

According to the Insurance Institute for Highway Safety (IIHS), placing kids in back instead of in front reduces injury risk by 64 percent for infants and kids up to age 8, and 31 percent for children 9 to 12.

While age is the determining factor in where children should ride, height and weight are more important in deciding when a youngster is ready to move from a child safety seat to a booster seat, or just be restrained with a seat belt.

The general rule of thumb is that children under 40 pounds should be in a car seat. As kids outgrow the height and weight requirements of a car seat, the recommendation is that they first graduate to a booster seat that allows cross-body seat belts, then eventually to just using an adult seat belt.

Although car seats and booster seats can be inconvenient and expensive, the protection they provide for small children is vital. Besides, it's the law.

To learn more about the PEMCO Insurance Northwest Poll and view a summary of the results, visit www.pemco.com/poll, where the public is invited to participate in an informal version of the poll to see how their own responses compare with those collected by FBK Research of Seattle.

Child in booster seat.

About the PEMCO Insurance Northwest Poll
PEMCO Insurance commissioned this independent survey that asked Washington drivers several questions about driving habits and attitudes toward current Northwest issues. The sample size, 826 respondents in Washington, yields an accuracy of +/- 3.5 percent at the 95 percent confidence level. In other words, if this study were conducted 100 times, in 95 instances the data will not vary by more than +/- 3.5 percent.

Safe Travels this Holiday!

The Holidays are in full swing and with Christmas just a couple of days away; many have already started their Holiday travels. Being the insurance people that we are, here are a few tips for a safe and secure season of travel.

1) Make your home seem like someone is still there. You can do this several ways. Leave your front and back porch lights on so that at night your house is lit up. Ask a neighbor to collect your mail while you are gone so it doesn’t stack up. You can also ask the post office to hold if for you until you get back. Another way to make it look like you are home is to ask a neighbor to pull in and out of your driveway at some point if it snows giving the appearance that you have been in and out of your house.

2) Don’t show off to the Facebook world that you are on vacation. I know this can be tough for some but letting everyone know you are out of town on Facebook can be dangerous. We recommend waiting until you get home from your trip before you post vacation pictures.

3) Car travelers should be prepared for heavy snow at all times. The best way to do this is to make sure you have extra blankest, windshield washer fluid, ice scrapers and even a small shovel. You never know when you might need any of those things. Also, be sure to have your phone charged during the trip so that you have it in case of an emergency.
4) Don’t skimp on heat in your home: This time last year our big recommendation in our “Traveling Over the Holiday” blog article was to keep the heat in your house at a reasonable level so your pipes don’t freeze. Again, we recommend this.

Those are just a few simple tips. We here at Fey Insurance hope you have a wonderful Holiday and Merry Christmas

Feds urge states to ban texting and talking on the roads

Tuesday, the National Transportation Safety Board (NTSB) announced that in their opinion texting, emailing or chatting while driving is simply too dangerous to be allowed anywhere in the United States. They are urging all states to impose a total ban except for emergincies. Presently, 35 states plus the District of Columbia ban texting while driving, and thirty states ban all cellphone use for beginning drivers. Enforcement is sketchy and no states ban the use of hands-free devices for all drivers. The NTSB says they are seeing increasing texting, cellphone calls and other distractions by drivers in accidents involving all kinds of transportation. It is common for law enforcement officers to immediately request the preservation of cell phone and texting records when an accident investigation begins. While no states ban hands-free use, the NTSB's recommendation that hands-free use of cell phones be banned, too, will carry much weight with federal regulators, Congress and state law makers.

Tips for Driving in the Rain

Western Washington in the winter is a pretty rainy climate, and combined with occasional freezing or near-freezing temperatures, this can make for hazardous driving conditions.

There are a number of things you can do to reduce your chances of having an accident in the inclement winter weather.

Tires: Where the rubber hits the road

First, you should check your tire treads for wear. Even though you didn’t notice a difference this summer, now that wet weather is here worn tires may suddenly lose their grip on the road, and you could go sailing into another car or the ditch! Have your local tire center check to see if the tread is adequate.

Tires that are overinflated not only wear out faster, but can’t hold the road as well in wet or snowy weather. Reducing the air pressure in your tires will help you keep your car under control in treacherous conditions. By slightly reducing the pressure from 32 psi to 28 psi, you will make your tire have a little more rubber on the road surface, providing additional stability. Of course, when winter is over you will need to inflate your tires to the proper levels to avoid excessive tire wear.

Limited Visibility

Now is the time to make sure your windshield wipers are in good working condition, your windshield is clean and you have washer fluid in the reservoir. When it rains, worn wipers will streak your windshield, making it difficult to see, especially at night. Headlights of approaching vehicles will reflect this residue and make visibility even worse. Also, it is important to keep your windshield clean. Mud or leaves that get on your windshield can be smeared by your wipers, making it very difficult to see clearly, and if you get spattered by a passing car or truck, your windshield washer fluid can get it cleared off quickly.

If, for any reason, your windshield will not clear, leave the roadway as soon as safely possible and use a cloth and some clear water to thoroughly clean the window. Do the same for your other windows and side view mirrors, too.

Driving in a downpour

Usually, Seattle rain is fairly light, but occasionally a weather front will come in and dump rain in buckets. It’s best to avoid driving until it tapers off, but if you are caught in a deluge, here’s something that may help -- put on your sunglasses! Even at night, putting on your sunglasses in the pouring rain will help you see much more clearly. You will see drops on the windshield, but not the rain that's pouring down in front of your car. It also helps eliminate the sudden blindness from getting sprayed with a wall of water by a passing semi truck.

Don’t use cruise control in the rain

When you’re driving in rain, turn your cruise control off. The problem is when your tires begin to hydroplane in slippery conditions and lose contact with the road, cruise control can suddenly cause your car to accelerate to a higher rate of speed, and cause you to lose control of your car! Some cars are designed to shut cruise control down in wet or icy conditions, but yours may not be one of these.

Finally, slow down!

The speed limit may read 60 mph, but that is only applicable in optimum driving conditions. If it’s wet or icy, slow down. If you are involved in an accident in bad weather conditions, and it is found that you were going within the speed limit, that won’t help you in court if the conditions warranted slowing down. When weather conditions make driving hazardous, posted speed limits are not in effect, and motorists must drive at a safe speed or be liable for damages that they cause.

Churches to Be Kicked Out of NYC School Buildings January 1

Having spent 9 years in the church insurance business, which included providing coverage for dozens of churches that met in schools, this could start a troubling trend across the country:

The Supreme Court has rejected an evangelical church’s plea to overturn New York City’s ban on renting public schools for religious worship services. That means the city now has a green light to begin evicting congregations who pay rent to use public school buildings for church services.

The Supreme Court’s decision not to hear the case leaves in place a federal appeals court ruling that upheld the city’s policy.

The court case involved the Bronx Household of Faith – a church that paid weekly rent to hold worship services at a public school since 2002. The church, along with five dozen other congregations, was allowed to continue worshipping at public schools pending the outcome of the lawsuit.

It’s a sad day for religious liberty,” said Jordan Lorence, the church’s attorney and senior counsel for the Alliance Defense Fund. “Churches and religious other groups should be allowed to meet in public buildings on the same terms as other community groups and they’re being denied that in New York City.”

Look at the twisted reasoning that went into this decision:

The 2nd U.S. Circuit Court of Appeals determined that allowing churches to use schools resulted in an “unintended bias in favor of Christian religions” – since most Christian churches worship on Sunday.

“Jews and Muslims generally cannot use school facilities for their services because the facilities are often unavailable on the days that their religions principally prescribe for services,” Judge Pierre Leval declared. “At least one request(ed) to hold Jewish services (in a school building used for Christian services on Sundays) was denied because the building was unavailable on Saturdays. This contributes to a perception of public schools as Christian churches, but not synagogues or mosques.”

Judge Leval also took issue with the evangelical church’s membership. “Bronx Household acknowledges that it excludes persons not baptized, as well as persons who have been excommunicated or who advocate the Islamic religion, from full participation in its services.” Leval wrote.

But it all boiled down to a key point, the judges decided. “In the end, we think the board could have reasonably concluded that what the public would see, were the Board not to exclude religious worship services, is public schools, which serve on Sundays as state-sponsored Christian churches,” Leval wrote.

This is stupid on so many levels. Although I believe a city or school district should have the right to determine who uses their facilities and when, schools are being hammered all across the country with budget cuts. These churches provide much needed revenue to the districts, and they're generally very good tenants, careful not to mess up teacher's rooms or in any way do damage to the school facility. This is easy money for the districts, but the anti-religious zealots just can't stand the idea that something that values God can have any contact with a public facility.

During my insurance days I insured all kinds of denominations that met in public schools.  Never once did a school district apply any sort of standard as far as the type of church they allowed, nor did they provide any kind of support that could be misconstrued as "state sponsoring".  The judge's ruling is nonsense.

Churches that meet in schools in other parts of the country should take note and have contingency plans at the ready. The anti-religious activists will be emboldened by this decision and will seek to spread their bias nationwide.

Host Liquor Liability (Repost)

Over the next several months there will be many reasons for businesses and individuals to host events and parties where alcohol may be served. Businesses will have parties and happy hours to celebrate the holiday season where they will be providing alcohol for employees or customers. Individuals may use the same reason to have friends and family over to celebrate and consume alcohol. Taking my party hat off for just a moment and putting my risk management/insurance hat on, let me discuss something called Host Liquor Liability.

This is a coverage that often is part of a Commercial General Liability (CGL) policy and also included in homeowner policies as long as the individual and/or businesses are not in the occupation of making, selling or distributing of alcohol for money (meaning bars, distilleries, wineries, restaurants, etc. would have a different coverage simply called Liquor Liability). Host Liquor Liability is a coverage to help protect in cases where injuries happen because of alcohol incidents. One common example would be a participant is driving drunk and as a result crashes and injures people in an auto accident. Wherever the drunk driver last consumed alcohol could find themselves facing a lawsuit for injuries that were caused by the driver. They could be pulled into the situation because it was at their event and under their supervision that this driver consumed alcohol and then got behind the wheel intoxicated and drove off.

So here is one key thing about host liquor liability that all your employees, customers and/or friends and family will like to hear: if you are going to have an event with alcohol you are best to give it away. If at your event money changes hands and people are then able to consume alcohol you would have violated the no making, selling or distributing of alcohol for money rule. If you are having alcohol at a charity event the alcohol would have to be donated for the event or have a very good paper trail showing that none of the moneys collected to get in the event went toward the purchase of alcohol. Now, if your event is going to have a cash bar you will need to look into purchasing two items. The first is a temporary liquor license from the state and the second is a Liquor Liability insurance policy. Both of those can be costly and time consuming to acquire so your best bet is to just give it away… and be more popular with your employees, customers, friends and family.

Thanksgiving Saftey Tip from Red Cross

Thanksgiving is only a few days away.  By now many families are preparing for the big day by plotting out the cooking of the traditional Thanksgiving Turkey.  Whether you are deep frying the turkey or just baking it in the oven there is always risk in doing something that is not a daily routine.  I recently came across a great article written by the Oregon Chapter of the Red Cross.  They give these seven tips for safe cooking:

• Keep potholders and food wrappers at least three feet away from heat sources while cooking  
• Wear tighter fitting clothing with shorter sleeves when cooking
• Make sure all stoves, ovens, and ranges have been turned off when you leave the kitchen
• Set timers to keep track of turkeys and other food items that require extended cooking times
• Turn handles of pots and pans on the stove inward to avoid accidents
• Follow all manufacturer guidelines regarding the appropriate use of appliances
• After guests leave, designate a responsible adult to walk around the home making sure that all candles and smoking materials are extinguished

To read the entire article please click this link:  Thanksgiving Safety Tips

 

Market Value vs. Replacement Cost

Here is our first attempt at catering our insurance education to the visual learner.  We at Fey Insurance are not artist so please keep that in mind.  Enjoy this video that talks about the difference between market value and replacement cost.

Alternate Source of Home Heating

The high cost of home heating and the current recession have led many Americans to search for alternate sources of home heating. Many of these sources of heating may be acceptable if appropriate safeguards are used. However, be aware these supplemental heating devices are responsible for thousands of home fires each year.

Wood Stoves

Wood stoves cause more than 4000 residential fires each year. Carefully follow the manufacturer’s installation and maintenance instructions. Look for solid construction, such as plate steel or cast iron metal. Check for cracks and inspect legs, hinges and door seals for smooth joints and seams. Use only seasoned wood for fuel, not green wood, artificial logs or trash. Inspect and clean your pipes and chimney annually and check monthly for damage or obstructions. Cleaning more often may be necessary. Be sure to keep combustible objects at least three feet away from your wood stove.

Electric Space HeatersBuy only heaters with the Underwriter’s Laboratory (UL) safety listing. Check to make sure it has a thermostat control mechanism, and will switch off automatically if the heater falls over. Space heaters need space; keep combustibles at least three feet away from the heater. Always unplug your electric space heater when not in use.

Kerosene HeatersBuy only UP-approved heaters and check with your local fire department on the legality of kerosene heater use in your community. Never fill your heater with gasoline or camp stove fuel; both flare up easily. Only use crystal clear K-1 kerosene. Never overfill any portable heater and never fuel the heater when it is hot. Use the kerosene heater in a well-ventilated room. Kerosene heaters pose perhaps the worst exposure largely due to improper use and the fact they contain a highly flammable liquid- not to mention potentially dangerous fumes.

FireplacesFireplaces and wood stoves regularly build up creosote in their chimneys. They need to be cleaned frequently and chimneys should be inspected for obstructions and cracks to prevent deadly chimney and roof fires. Check to make sure the damper is open before starting any fire. Never burn trash, paper or green wood in your fireplace. These materials cause heavy creosote buildup and are difficult to control. Use a screen heavy enough to stop rolling logs and big enough to cover the entire opening of the fireplace to catch flying sparks. Do not wear loose fitting clothes near any open flame. Make sure the fire is completely out before leaving the house or going to bed. Store cooled ashes in a tightly sealed metal container outside the home.
Finally, having a working smoke alarm dramatically increased your chances of surviving a fire. Always remember to practice a hoe escape plan frequently with your family.
Source: US Fire Association

Home Security Alarm (re post)

On a daily basis you see ads on TV for home security systems. We at Fey Insurance highly recommend the installation of a Home Security System to add additional protection for you and your family. Insurance will work to put your property back in place after a fire or burglary, but a Home Security System will work to prevent or minimize the effects of that fire or burglary. If you are interested in such a Home Security System, please call us and we will tell you our opinion of the various manufacturers and what features to consider. For example battery backups are usually included in Home Security Systems, but we would also recommend cellular backups for your system in the event your normal phone service goes down or even disabled by a potential burglar. We would include carbon monoxide detectors in your system especially if you have a natural gas furnace or hot water heater. Central station monitoring is preferable to systems that go directly into a police or fire dispatch. Both are considered superior to a system that only sounds a local alarm in your home. There are discounts on your Homeowner policy for the installation of a Home Security System. Please call us to review those discounts. But the most important reason, in our opinion, to install such a system is for additional security for your family and peace of mind that you are doing everything to protect your family and your property.

Professional Liability & the Claims-Made Policy

Occupations or business practices involving specialized care or advice often need professional liability insurance. Typical business classifications that need this coverage would be notary publics, real estate agents or managers, attorneys, doctors and consultants. The typical commercial general liability policy will only respond to bodily injury, property damage, personal injury or advertising injury claim.

The professional liability policy often is written on a claims-made form. The claims-made form requires the claim to be reported during the policy period, and the incident causing the claim must have occurred after the retro date for a claim to be covered. A retro date is a date prior to the start of the claims-made policy. The retro date could be years prior to the start date of the policy based on the underwriter’s discretion, after considering the applicants past exposures and loss history.

By comparison, the typical occurrence-based policy used in most commercial policies responds to claims that occur during the policy period, regardless of when reported subject to the statutes of limitations. The occurrence-based policy handles when the claim happens, and the claims-made policy considers when the claim is reported. In some cases, it is possible to purchase a claims-made policy with full prior acts coverage that essentially does away with a retro date. Coverage classes for this option are limited, and again, depend on the underwriter’s discretion.

When canceling an existing claims-made policy, it is usually advisable to purchase and extended reporting period. This is commonly referred to as tail coverage. Various lengths of time are available. Tail coverage extends the claim reporting period under the claims-made policy to cover claims that have occurred during the coverage period, and not yet reported by the cancellation date.
While most occurrence-based policies are somewhat similar, claims-made policies are usually specific to each company issuing the policy. The insurance agent must d o a careful review of these differences to determine applicability to a particular operation.

Northwest Drivers Think They Can Exceed the Freeway Speed Limits Without Getting a Ticket

A recent PEMCO Insurance poll found that drivers in both Washington and Oregon believe a driver can exceed the speed limit and not get stopped by the state patrol, but Oregon drivers are considerably bolder when it comes to how far over the limit they think they can go without getting ticketed.

As many as two out of every three Northwest drivers think that they can go a few miles per hour over the posted speed limit -- even if witnessed by the patrol -- and get away with it. But drivers in Oregon are convinced that they can go as much as nine miles-per-hour over the legal limit and not get pulled over.

That’s significantly higher than Washington, where about half the drivers think there’s some lenience on freeway speed the state patrol will allow before they turn on the blue lights. The survey found that about 60 percent of Washington drivers think the threshold is four miles-per-hour, less than half what Oregon drivers believe is allowable.

“Oregon’s lower freeway speed limit, set at 65, may explain why Oregon drivers think there’s a higher tolerance for speeding,” said PEMCO spokesperson Jon Osterberg. "Regardless, data shows that speeding causes more crashes and fatalities."

The National Highway Traffic Safety Administration reports that nearly one-half of all fatal speeding-related crashes in 2009 occurred on roads with posted speed limits of 55 mph or more.

According to the Washington State Patrol, speeding is one of three areas where data shows motorists are most likely to be killed or injured when drivers violate posted speed limits. Other fatal behavior includes driving while impaired and failure to wear a seatbelt.

Despite the State Patrol’s emphasis on catching speeders, nine out of 10 Washington drivers admit they’ve exceeded the speed limit at least once, and half of all Washington drivers say they speed at least some of the time. The same holds true for Oregon drivers, according to the PEMCO poll.

Oregonians, however, are more likely to push speed limits, with 61 percent saying they should be quick to slow down before reaching 9 mph above the posted speed. That compares with 71 percent of Washington drivers who slow down before hitting 9 mph over the speed limit.

In either state, of those who admit to speeding, a majority say they’re simply keeping up with the flow of traffic, and a smaller fraction say they speed without realizing they’re exceeding the limit.

What’s also true for both states is the more you earn, the more likely you’ll speed. Nearly 60 percent of drivers with incomes of more than $50,000 per year admit to sometimes speeding.

Younger drivers also demonstrate less caution for slowing down. About two-thirds of drivers under age 35 admit to speeding at least some of the time, while less than half of drivers over age 35 say they sometimes speed.

"Although most of us speed at least once in a while, the major takeaway here is to remember that increased speed equals increased danger of physical harm, whether the police catch you or not," Osterberg said.

To learn more about the PEMCO Insurance Northwest Poll and to view a summary of the results, visit www.pemco.com/poll, where the public is invited to participate in an informal version of the poll to see how their own responses compare with those collected by FBK Research of Seattle in April 2011 and July 2011.

Source: PEMCO Insurance

Fire Prevention Week

This week is the National Fire Protection Association’s (NFPA) Fire Prevention Week.  This is a great chance for you and your family to discuss the danger of fire, the best ways to prevent fires in the home and create an escape plan if fire were to occur in your home.  The National Fire Protection Association has teamed up with Scholastic, Inc. and have made great educational programs for families.  Click the below hyper link and be directed to the NFPA’s website that focus on the educational materials.  The materials are free.

National Fire Protection Website

US Working Toward Standardized Penalties for Data Breaches

Last month the US Senate’s Judiciary Committee approved three bills that deal with data breaches.  Those three bills where, The Personal Data Privacy and Security Act of 2011, The Personal Data Protection and Breach Accountability Act of 2011 and the Data Breach Notification Act of 2011.  The gist of all these acts is that the government is working toward a standardized practice of requiring notification of data breaches and a standardization of penalties for companies that have data breaches.  What this means for business is that it is now very important for you to take as many precautions as you can to secure your clients’ private data.  Firewalls, antivirus software, IT consultants, encryptions, company internet usage policies and password protections are all key parts of securing your business for data breaches. 

Even if all the preventative measures are in place, your business still runs that risk of a data breach.  That is where insurance products can help protect your business.  Insurance products can’t help protect your data but they can protect your company’s money by helping pay for data breach notification costs, third party lawsuits filed against your company for breach of client’s personal information and the cost to restore lost data.

As the government moves to a more standardized notification requirement and penalties for data breaches, companies that hold private information should also be working toward setting up strong data security measures as well as put in place insurance products to help protect their company’s hard earned money.

Be Cautious When Using Smart Devices

Mobile devices used by you personally or provided by your business or employer offer wonderful advantages to make you more productive, but they come with potential hazards. Security breaches either by accident or intentional "hacking" can put your personal information and/or your business information at risk.

Most corporate security types say the biggest issues involve personal mobile devices use to "hack" into corporate servers and data bases. Data encryption and passwords are highly recommended along with the ability to wipe out data from a Smartphone or tablet issued by the company. The latter can be extremely helpful in the event a personal Smartphone is stolen, and the corporate IT people want to wipe the phone of all secure access information remotely. Some corporations allow access to company data through personal mobile devices but only with devices that were provided by the corporation. Some corporations are requiring employees to register personal devices with corporate security/data processing so they can control how their corporate data is being accessed. All of these precautions are highly recommended by Fey Insurance.

It isn't just the business world that faces possible problems with personal smart phones, iPads, etc. accessing data. Accessing your personal and private financial information via Smartphone, iPads, etc can also be an issue. Many people have their banking applications on their devices as well as applications that have all their stored passwords. A lost device could result in access to your personal bank accounts and do a lot of financial damage. Password protecting your devices is key. The more passwords and protection you employ the better in protecting you and your family from potential financial ruin. Apple iPhones have tracking capabilities so if your phone is lost you can use your personal computer or another iPhone to track its location. They also allow you to wipe the phones clean of all data and make them useless to anyone who might find the lost phone and want to cause serious problems with your data.

If you have further questions, consult your Smartphone or table manufacturer, your phone service carrier or your corporate IT/security people for help.

Tips to Keep Your Home From Being a Target for Burglars

Advice from Consumers Union of U.S., Inc.

A home is robbed every 14.6 seconds and the average dollar loss per burglary is $2,119, according to statistics just released by the FBI. And that's the good news because burglaries were down slightly in 2010 compared to 2009. Sure you lock your doors and windows when you're not home (you'd be surprised how many people don't). But here are ten things that you're probably doing that make your home a target, and what you should do instead:
 

1. Leaving your garage door open or unlocked. Once inside the garage, a burglar can use any tools you haven't locked away to break into your home, out of sight of the neighbors. Interior doors between the garage and your home often aren't as strong as exterior doors and may not have deadbolt locks.
Instead: Always close and lock the garage door. Consider getting a garage-door opener with random codes that automatically reset.

2. Hiding spare keys. Burglars know about fake rocks and leprechaun statues and will check under doormats, in mailboxes, and over doorways.
Instead: Give a spare set to a neighbor or family member.

3. Storing ladders outdoors or in unlocked sheds. Burglars can use them to reach the roof and unprotected upper floor windows.
Instead: Keep ladders under lock and key.

4. Relying on silent alarm systems. Everyone hates noisy alarms, especially burglars. Smart thieves know that it can take as long as 10 to 20 minutes for the alarm company or cops to show up after an alarm has been tripped.
Instead: Have both silent and audible alarms.

5. Letting landscaping get overgrown. Tall hedges and shrubs near the house create hiding spots for burglars who may even use overhanging branches to climb onto your roof.
Instead: Trim any bushes and trees around your home.

6. Keeping your house in the dark. Like overgrown landscaping, poor exterior lighting creates shadows in which burglars can work unobserved.
Instead: Replace burned out bulbs promptly, add lighting where needed, and consider putting fixtures on motion sensors or light sensors so that they go on automatically.

7. Not securing sliding doors. These often make tempting targets.
Instead: When you're out, put a dowel down in the channel, so that the door can't be opened wide enough for a person to get through.

8. Relying on your dog to scare away burglars. While barking my deter amateurs, serious burglars know that dogs may back away from someone wielding a weapon, or get chummy if offered a treat laced with a tranquilizer.
Instead: Make your home look occupied by using timers to turn lights, radios, and TVs on and off in random patterns.

9. Leaving "goody" boxes by the curb. Nothing screams "I just got a brand new flat-screen, stereo, or other big-ticket item" better than boxes by the curb with your garbage cans.
Instead: Break down big boxes into small pieces and bundle them together so that you can't tell what was inside.

10. Posting vacation photos on Facebook. Burglars troll social media sites looking for targets.
Instead: Wait until you get back before sharing vacation details or make sure your security settings only allow trusted "friends" to see what you're up to.
Copyrighted 2009, Consumers Union of U.S., Inc. All Rights Reserved.

WSJ Article on Flood Insurance

Wall Street Journal had a very interesting article about flood insurance.   In the wake of all that is going on in the aftermath of Irene, we thought this article would be a good one to share.  As you may recall from our previous posts on flood insurance, it is run by FEMA.  What is going to even make this whole flood topic even more interesting is that the FEMA flood program expires on Sept 30th, 2011 unless the lawmakers decide to continue the program.  Stay tuned.

Click below to read the article:
As Homeowners Dive Into Pool Of Flood Insurance, Caveats Abound

Directors and Officers of Non-Profit Organizations

Many people today have a servant’s heart and wish to volunteer on different non-profit boards to help better their community.  As board members they steer the path of the non profit organization by helping with fiscal policy and with major decision making.  We at Fey Insurance strong encourage people to take part in boards to help better their community; however, we caution them to make sure these boards have Directors and Officers Liability. 

Many people think that if they buy a personal umbrella policy they will be covered for anything that could happen to them while serving on a board.  Unfortunately this is not always true.  Many umbrella policies only cover you for Directorships or Trusteeships if they are non-profit and only for Bodily Injury, Property Damage and Personal Injury.  Most lawsuits that could arise out of your service on a non for profit board will not be for Bodily Injury, Property Damage or Personal Injury.  They will be because other members of the organization that are not on the board disagree and disapprove of a financial decision or just an overall steering decision that the board made.  Lawsuits such as these are considered wrongful acts and do not fall under the Bodily Injury, Property Damage or Personal Injury and would therefore in many cases not be covered by your homeowner or personal umbrella.

This possibly large gap in coverage is why we strongly encourage our customers that sit on boards (for-profit or not-for-profit) to make sure the boards have Directors and Officers Liability (D&O liability).  D&O Liability is special coverage designed to protect for wrongful acts or supposed wrongful acts of the board.  We recommend this coverage to all boards not only to protect our individual insured’s but to also protect the organization itself.  Even if a claim of wrongful acts is frivolous it can still cost the organization thousands or tens of thousands of dollars just to defend itself.

So next board meeting you attend be sure to ask if they have Directors and Officers Liability.  If they say no and tell you that you should be fine if you have a personal umbrella be sure to reference this article to help them understand the possible large limitation that a personal umbrella has in covering you as a board member.  

“Wear and Tear” Vs. “Sudden and Accidental”

Two terms that are important to know when it comes to the reason behind an insurance claim. Those terms are “Wear and Tear” and “Sudden and Accidental”.

“Wear and tear” is defined by Wikipedia as “damage that naturally and inevitably occurs as a result of normal wear or aging.” An example on a home would be a house settling over time, a pipe that corrodes and leaks water over several months or years, or a roof that after 15 years starts to drop shingles. All these items would not be covered under an insurance policy as an insurance policy does not cover “Wear and Tear”. Insurance policies cover “Sudden and Accidental” events.

So what is “Sudden and Accidental”? The best way to define it is by giving examples. If a pipe in your house just suddenly burst from pressure or because of freezing that is sudden and was done accidently. If wind blows through your neighborhood and suddenly blows off your roof or chunks of your roof that is sudden and accidental. If a tree falls and damages your home that event is sudden and accidental.

“Sudden and Accidental” events are things people can not totally prevent which is why insurance exists and covers them. On the other hand, “Wear and Tear” damage can be prevented by making sure your property is well maintained and updated. Insurance policies are not maintenance contracts.

So next time you have damage to your property ask yourself is this “Wear and Tear” or “Sudden and Accidental”? If it is “Sudden and Accidental” be sure to call your insurance agent or if you are not sure which it falls under call your insurance agent and let them help you figure that out.

Insurance and Your College Kids

Out in front of our Oxford, OH insurance office, it is a busy place. Today 16,000+ Miami University students return to begin a new school year. This annual pilgrimage brings up potential insurance issues pertaining to what parent's personal insurance policies cover or don't cover. Three areas that parents should be aware of:

(1) If your son or daughter is going away to school over 100 miles from home without a car, most companies will rate your Personal Auto Policy for them being married which is a nice discount. Let us know if this discount might apply to your family and your Personal Auto Policy.

(2) Most insurance companies will extend personal property (contents) coverage and personal liability for your son or daughter while they are in college and living in a dormitory. Some, but not all, will also extend coverage if they are living in off campus facilities such as an apartment or other student housing. Please check with us to see if your insurance company provides this extended protection. If not, we should be able to write a Tenant/Homeowner for your student to cover both their personal property and personal liability while they are an undergraduate. If they are in graduate school, they should definitely have their own Tenant/Homeowner Policy.

(3) If you or your children are using a rental truck to take their things back to college, U-Haul, Penske, Hertz and other will offer you coverage on the vehicle (collision damage waiver) and extended liability. While these may be covered by your Personal Auto Policy, not all companies extend the protection, so check with us before renting the vehicle. Whether or not they are covered will depend on the length and Gross Vehicle Weight of the vehicle and several other factors. We may be suggesting you buy the extra protection from the rental company before your trip.

Church Arsonist Pleads Guilty, But You'll Never Guess Why He Did It

Having been in the church insurance business I know there are a variety of people out there with grudges against churches that can actually provoke them to try and burn the building.  However, this one is unusual even for that crowd:

A Huntington Beach man pleaded guilty Tuesday to arson and other charges for setting three fires at an Irvine church and attempting to set a fourth.

Izad Chavoshan, 32, faces a sentence from Superior Court Judge Craig E. Robison on Aug. 19 ranging from probation to 20 years in prison.

Chavoshan pleaded guilty to three counts of arson, one count of attempted arson and a hate crime sentencing enhancement. He also has a prior strike conviction for criminal threats in 1998.

Prosecutors contended that Chavoshan drove to the Orange County Church of Christ in Irvine on three nights between Oct. 15, 2009, and Oct. 19, 2009, moved trash cans to the front of the church and set them on fire. Church employees reported the fires to Irvine police, who monitored the church Oct. 21, 2009.

Chavoshan returned to the church on that night and repeatedly threw a trash can at the glass portion of the front doors, according to a news release from the Orange County District Attorney's Office. He then removed a pack of matches from his pocket, lighted a piece of paper and attempted to push it between the closed church doors, prosecutors said.

He was arrested at the scene.

And here comes the reason for his arsonist rage:

Prosecutors said Chavoshan was disgruntled with the church's teachings against masturbation.

Well, he'll have plenty of opportunity to contemplate that issue in the state prison.

Leaving Your House Vacant? Consult Your Agent! (9/17/10 Repost)

In today’s real estate market it can be somewhat common to purchase a new home with out having first sold your current home. Prices are low so if you want to upgrade your house, now seems to be the time even if you know you may have to wait a few months until you sell your current home. So many are purchasing a new home, moving into it and then leaving the old home vacant until it sells. This can pose an insurance problem that Fey Insurance feels many don’t realize.

In a typical homeowner policy there is wording that refers to a 60 day period. For sixty days your homeowner policy will have no change in coverage once it becomes vacant. However, and this is important, once the house has been vacant for 60 days some of the coverages are no longer provided. Example, vandalism or malicious mischief claims would no longer be covered. Same with glass breakage claims. The reason for this is that a homeowner policy is priced and designed for buildings that are being lived in and cared for by the owners. Once the owner no longer lives there and it is vacant then the building is more at risk for claims and therefore the insurance companies require it be on a special vacancy policy. What does vacancy mean? Vacancy means the following, “Substantially empty of personal property necessary to sustain normal occupancy.”

So if you are considering purchasing a new home and leaving the current home vacant until it sells, please be sure to call your insurance agent so they can make sure coverages don’t disappear from your policy

Special Limits in Your Homeowner Policy

Your homeowners insurance policy places limits on certain types of property. In your policy there is a section titled “Special Limits on Certain Property.” This section will list various items and place a dollar limit on each type of property- such as jewelry, fine arts, guns or money.

Why do insurance policies contain such provisions? The homeowners insurance policy is written to provide coverage for the average policy holder. Most of us do not own collections or keep large amounts of cash at our homes. While the policy provides some limited coverage for special types of property, it in no way serves the needs of the unique collector.

There is, however, a solution for the collector or owner of unusual property items. It is possible to amend your homeowners policy, by endorsement, to provide special coverage for unique collection items such as coins or stamps. By asking your agent to include a schedule property floater in your coverage, you can specifically insure items of special interest. The personal property floater also expands coverage for perils not included in the homeowner policy.

Taking Energy Efficiency to the Next Level: Furnace-less Homes!

Want to save a bunch on heating and cooling costs in a home, even in cold climates? Build the house without a furnace. It’s possible now, and a the Cleveland Museum of Natural History has just built one. In fact, thousands of furnace-free homes have already been built in Germany, but only 15 U.S. buildings have this same level of extremely low energy use.

The house in Cleveland has walls that are more than a foot thick, big triple-pane windows, doors that resemble bank vaults and engineering that cuts heating and cooling costs, as well as pollution, by 90 percent.

These futuristic dwellings are known as “passive houses”, and cost about 20 percent more than conventional housing to build. The museum decided to give its visitors a look at what the future may hold as energy costs skyrocket.

“We have to get beyond incremental improvements to get a dramatic breakthrough,” said David Beach, the museum’s director of sound urban practices. This houses, he said, is “an example of a new way of living.”

Special Insulation is the Key

The house has an insulation system with a sealed air barrier that makes it work like a thermos. A ventilator exchanges the heat from the stale, outgoing air with the fresh incoming air, allowing very little heat to be lost. Two ductless heat pumps, one upstairs and one down, supply all the heating and cooling necessary no matter how hot or cold the outside air is.

The doors are extremely think to insulate well.

The house features huge south-facing windows which allow maximum solar heat in winter, when the sun is low in the sky. A ridge over the windows blocks much of the sunlight in the summer months, when the sun is higher in the sky.

Cleveland endures some of the harshest winters in the U.S., so if this house can achieve certification here, chances are it can do it anywhere.

A certified passive house must meet the same stringent energy-saving standards as in Germany. To qualify, a house must meet or beat 80 to 90 percent reduction of heat-trapping gases, the amount needed by mid-century to avoid creating dangerous climate shifts.

Return on Investment

The Department of Energy estimates it costs more than $900 a year to heat and cool an average house in the Ohio area. A passive house is approximately 15 percent more energy efficient than homes built to code. The cost of building a passive house is about $10,000 more, so the point at which the extra cost is offset by the energy cost savings is about 10-11 years. Of course, as energy prices increase, the efficiency of passive homes will make it pay off in even less time.

Source: Renee Schoof, McClatchy Newspapers

Our 100th Blog Post!

We have now reached 100 posts on the Fey Insurance Services blog. Over the past few years we have posted about a variety of insurance and risk management topics. We have helped to educate businesses and individuals on how to best protect their hard earned assets such as their home, cars, and businesses. We have also give tips on how to stay safe in an ever changing world including tips on online identity safety and how to best prepare your home for the winter months.

Our hope is that you have enjoyed the 99 other posts and found some information that was helpful in each one. For the years to come we will continue to add helpful content so that our clients and readers can enjoy a safe and protected life.

Business Income

Calculating the appropriate business income limit does not have to be a mind-numbing process. To understand business income coverage limits, you must simply understand that the coverage is almost entirely based on time. The amount of coverage and the correct coinsurance amount can be calculated once a reasonable estimation of the time necessary to return to full operational capability is determined.

Four Key Objectives must be accomplished as quickly as reasonably possible:

1) Rebuild the building, or find a move to an alternate permanent location.
2) Find, purchase, and have operational, replacement machinery and equipment.
3) Replace and/or replenish stock (raw materials for manufacturing operations).
4) Return operations to the same level existing just prior to the loss.

Business Income’s Necessity

According to the Federal Emergency Management Agency (FEMA), there is a structure fire ever 4.5 minutes. Approximately 25 percent of businesses never reopen after a shutdown of just 30 or more days, according to the insurance industry. When you include the number of business failures within five years that are directly traceable to the same kind of claim, the number could approach 40 percent.

Business closings as a result of natural disasters also reach 25percent. The U.S. Small Business Administration reports that more than 90 percent of small businesses fail within two years after being struck by a disaster. Combining these two pieces of statistical data, losses can lead to the closure of thousands of business in any given year due to an interruption in operations.

The Calculation

Once total revenues and the total amount of non-continuing expenses (production-related expenses that do not continue during the interruption) is known and applied to an honest worst-case scenario estimate of the time necessary to resume operations, the correct coinsurance percentage can be calculated. Coinsurance percentages, in 10 percent increments, can be from 50 percent to 100 percent- each representing a proportion of one year (50 percent equals six months; 60 percent equals 7.2 months; 100 percent equals 12 months). It is also sometimes possible to obtain a 15-month business-interruption period at a corresponding coinsurance limit of 125 percent.

The Reality

Most businesses that close and never reopen after a catastrophic closure (30 days or more), don’t close because of the lack of building and business personal property coverage. They close because there is no money coming in the door. Few businesses can remain viable without a source of income. Many business expenses continue even during the period of temporary closing.

Obviously, the optimal goal is to have the building, contents and business income all properly insured. Ultimately, only the business can provide these figures, but this simple approach can make this exercise much easier. Once you accept the reality that loss of income is as important to the insure as insuring your property, we can help guide you to the proper coverage to further protect your business.

Extended Replacement Coverage on Home Insurance

The recent devastation caused by the spring tornadoes is a sobering reminder that catastrophes can strike at any time. When a total loss occurs, homeowners coverage is designed to reconstruct a home under normal conditions. But following a catastrophe, increased demand for building materials and labor can cause these costs to rise significantly, potentially leaving policy limits inadequate.

Fortunately, many insurance companies offer extended dwelling coverage to help prevent such shortfalls.

How it works

Two coverage levels give you options: Extended dwelling coverage is available at levels of 25% or %50% of additional Coverage A amounts, allowing people to choose the level that fits their needs.
Example: A home is insured for a Dwelling Limit (Coverage A) of $100,000. Following a total loss, reconstruction cost amount to $120,000. Without extended dwelling coverage, the policy holder could incur significant out of pocket expenses or be forced to make difficult rebuilding choices to reduce the costs. With 25% or 50% in extended dwelling coverage, the home would have those extra costs covered (i.e. 25%-Dwelling is increase to $125,000 or 50%-Dwelling is increased to $150,000).

Child Booster Seats

The institute for Highway Safety has provided a method to take much of the guesswork out of selecting the proper booster seat for your child. Seat belts are designed with adults in mind- so a child booster seat is an absolute necessity, and extra care needs to be taken when securing young children.

Children usually resist wearing a seatbelt because it is uncomfortable. Boosters elevate children so that the safety belts installed in the vehicles by manufacturers will fit the child better. The booster seat allows the lap belt to fit properly over the child’s thighs and not their abdomen. The shoulder belt should fit across the middle of the child’s shoulder. Not only will the belt be more comfortable, it will provide maximum protection in a crash.

The institute’s researchers used a specially designed test dummy configured as a 6 year old child. The researchers determined the effectiveness of how a 3-point lap and shoulder belt fit the dummy under a range of configurations representing many different automobile models. Based on a range of scores, a booster seat rating was assigned to each seat.