Blood may be thicker than water, but it is thinner than insurance contracts?

Understandably, insurance is not always a priority for adult children who are now on their own. In the beginning, there’s often a phase where the kids commute between “home base” and their new apartment or home, and their property is at both locations. The new grown-ups typically have few possessions, especially possessions of high value, and this adds to the likelihood that insurance is overlooked or seen as unnecessary. However, even when possessions are few, EVERYONE has a legal responsibility to handle the damage they accidentally cause to other people and/or other people’s property. When a child reaches adulthood, they’ve also reached the point where they need to get their own insurance.

Being Independently Insured

An adult son or daughter may think that, when a loss happens, coverage is available from mom or dad’s homeowners or auto policy. It usually isn’t and finding this out after a loss makes matters much worse. Policies are typically clear. A relative is covered, but only if the relative is a full-time resident of the named insured’s household. Even if the nonresident child lives next door, a parents’ policy is not going to spread its coverage to take care of an adult child’s belongings.

If this fact appears harsh, know that insurance contracts are meant to handle sources of loss that can be easily identified. Person A’s cars or home is protected by Person A’s auto or homeowner policy. Imagine if that weren’t the case.

Example: The Smithfield’s home and cars have been insured by Friendly Coverage Company for 20 years. In the last five years, the Smithfield’s children have grown and started their own households. Per the Friendly Coverage home and auto policies, the insurance premiums and two policies that covered the original family’s two cars and one home, now cover the original home and cars PLUS the following:

• Son Jason Smithfield’s apartment and car
• Daughter Rachel Smithfield’s home and two cars
• Other son David’s home, seasonal home and two cars
• Other daughter Staci’s apartment and car.

Besides covering all of the property, the Smithfield parents’ policies ALSO cover everyone’s personal legal liability.

While it might be a bargain for insurance consumers if a single auto or homeowner policy could be stretched this far, it’s not likely that the insurance industry could survive such flexibility.

If an adult child asks you for insurance advice, give them the name of an insurance professional you trust to help them get the exact protection they need.  Contact us anytime!

We hope everyone had a wonderful Valentine’s Day.  According to NRF’s 2012 Valentine’s Day Consumer Intentions and Actions survey, conducted by BIGinsight, the average person celebrating the holiday was expected to shell out $126.03, up 8.5 percent over last year’s $116.21 and the highest in the survey’s 10-year history. Total spending was expected to reach $17.6 billion.

Since Jewelry is one of the most popular gifts for sweethearts, now may be a perfect time to consider your coverage of valuable articles.

According to the FBI, victims of burglary suffer more than $4 billion in lost property annually with an average dollar cost of about $2,000 per incident.  The typical homeowners policy, however, has specific internal limits on jewelry, art and other items. If you have valuable pieces that exceed those limits, you could be in for an unhappy surprise if you become a victim of theft or an accidental loss.

To help prevent coverage shortfalls, insurance companies offer valuable articles coverage to give customers multiple options for protecting their most valuable items.

Itemized or scheduled coverage

This is the coverage for customers who want the most protection available.

• Additional classes of property – Additional classes of property are available on a scheduled basis, including jewelry such as wedding rings, stamp and coin collections, musical instruments and others.
• Agreed value and no deductible – With an agreed-upon value for each item of fine art and jewelry and no deductible, the claims experience is straightforward and simple.

Blanket Limit or unscheduled coverage

Scheduling each item of personal property can be time consuming for you and costly for the customer. Blanket limit coverage is designed to provide you and your customers with an affordable and easy alternative. Available for fine arts, including collectables such as figurines and glass with breakage coverage, cameras, furs, jewelry and silverware, it offers coverage for a wide range of perils.

• Easy coverage – Customers can simply increase or decrease the blanket coverage limit as the amount of total property changes without having to modify schedules.
• High limit and low deductible – High limits are available, subject to a maximum per item limit of $5,000. A deductible of applies per loss.

Want to make sure your valuables are covered?

Contact our Personal Lines department today at http://huhinsurance.com/contact-us.

Don't worry Mr. Boxer, you're on the nice list!

We Love Dogs!

Seriously, we do.  Most of us here at HUH own dogs and we even bring them into the office from time to time.  So we definitely know how easy it is for people to become attached to their dogs.  However, did you know the #1 source of liability claims paid by Homeowners Insurance companies is dog bites?  The Insurance Information Institute reports that $413 Million was paid for dog bite claims in 2010 alone.  

The Naughty List

One out of every three Homeowners liability claims involves a dog bite.  That’s why insurance companies ask if you own a dog, and if so, what breed and any prior bite history.  They have found that certain breeds are more likely to bite than others.  Insurance companies have different prohibited breed lists, but most lists include such breeds as

• Rottweilers
• Pit Bulls
• Dobermans
• Chow Chows
• And even German Shepherds

So, if you are thinking about getting a dog, you might want to give your insurance agent a call.  Depending on your situation, it’s possible that an insurance company could charge you a higher premium or even refuse coverage.  So please feel free to contact us with any questions!  As dog lovers, we’d hate to see a pup become homeless because the owner wasn’t prepared for this type of senario.

And by Fun we Mean…

Anyone who lives in Louisville or its surrounding areas knows the “winter months” can often bring snow one day and t-shirt/shorts weather the next. So it’s easy to overlook the importance of getting your home and business “winter” ready. But if you really think about it, the drastic weather changes we often experience in this area should be an indication of just how much we really need to be prepared for whatever is thrown our way. With rain quickly turning into ice and high winds shifting into tornados, don’t you want to be prepared?

Preparing your Home Checklists

The I.I.I. and the Insurance Institute for Business & Home Safety (IBHS) offers these tips:

Storms & Tornados

• If you are up the task of building your own shelter, the Creating a Safe Room project is a great resource.
• If building or installing a tornado shelter is not an option, the next best thing is to identify the safest area of your home.  This is usually a basement or a small interior room without windows, such as a bathroom.
• The more walls between you and the outside, the better.
• Replace rock/gravel landscaping material with shredded bark.
• Put together an emergency kit that includes first aid supplies, a portable NOAA all-hazard radio, a flashlight, extra batteries, basic tools, work gloves, portable lanterns, a signaling device such as an air horn, prescription medications, extra car keys, extra eyeglasses, cash and important documents such as insurance policies.  Don’t forget water, a non-electric can opener and non-perishable foods.

Snow & Ice

• Trim trees and remove dead branches. High winds, ice and snow could cause weak trees or branches to break and damage your home or car, or injure someone walking by your property.
• Clean your gutters. Remove leaves, sticks and debris from gutters, so melting snow and ice can flow freely. This can prevent ice damming, a condition where water is unable to drain through the gutters and instead seeps into the house causing water to drip from the ceiling and walls. And don’t forget about gutter guards!
• Repair steps and handrails. This may prevent someone from falling and being seriously injured. Broken stairs and banisters can become lethal when covered with snow and ice.
• Keep your house warm. Set the thermostat to at least 65 degrees.  Since the temperature inside the walls, where the pipes are located, is substantially colder, a higher home temperature can help keep the pipes from freezing.
• For pipes on outside walls in kitchens & bathrooms, open cabinet doors to keep warm air flowing to the pipes.
• Add extra insulation to attics, basements and crawl spaces. If too much heat escapes through the attic, it can cause snow or ice to melt on the roof. Water can then re-freeze, causing more snow and ice to build up. This can result in a collapsed roof.  Ideally, the attic should be five to 10 degrees warmer than the outside air. Well-insulated basements and crawl spaces can help protect pipes from freezing. You may also consider insulating unfinished rooms such as garages to keep pipes from freezing. 
• According to the U.S. Department of Energy, 80 percent of homes built before 1980 are not properly insulated, so there’s a good chance your home is not as insulated as it should be. Adding insulation is also one of the fastest, cheapest ways to retain heat and save on heating bills.
• Have the heating system serviced. Furnaces, boilers and chimneys should be serviced at least once a year to prevent fire and smoke damage.
• Learn how to shut the water off and know where your pipes are located. If your pipes freeze, time is of the essence. The quicker you can shut off the water or direct your plumber to the problem, the better chance you have to prevent pipes from bursting.

For more information or if you would like to discuss your current coverage and how it relates to storm/winter damage feel free to contact us anytime!   

It’s important to take a few extra precautions during the Holiday Season… no one wants a “Grinch” to steal their gifts!  So, here’s a few tips to help you protect your assets:

At Home

• Break down boxes, especially for expensive electronics, into small pieces & discard them into non-clear trash bags.
• Keep gifts hidden from view of outside windows.
• Lock all doors & windows even when leaving the home for a short period of time.
• Leave spare keys with a neighbor rather than hiding them outside, such as under doormats or in fake rocks.  Burglars are not fooled by most hiding places.
• Beware of strangers at your door.  Criminals can pose as couriers delivering gifts or soliciting donations for fake charitable causes.  Ask for identification or information about a charity.
• Many renteres have no insurance to cover their personal belongings in case of fire or theft.  Exisiting homeowners or renters’ insurance policies should be reviewed to ensure adequate & up-to-date coverage limits of your home or possessions.
• Valuable gifts such as jewelry, antiques & collectibles may have limited or no coverage under a standard homeowners or renters’ insurance policy.  It is often necessary to purchase an “endorsement” or separate coverage for these items.

In the Car

• Bring gifts into your home with you overnight rather than leaving them in your car.
• When shopping, keep gifts in the trunk or hidden from view in the interior of the car.
• Avoid parking next to vans & large trucks that block your space from general vision of others.
• At night, avoid secluded areas & park directly under lights whenever possible.

While Shopping

• Use a credit card in order to avoid thefts of large amounts of cash that cannot be replaced.
• Shopping with a single credit card is preferable – it’s easier to cancel one rather than several if your wallet or purse is stolen.
• Try to carry keys, cash, & credit cards separate from each other.
• Use ATMs in well-populated, well-lighted locations.  Do not throw ATM receipts away at the ATM location.

 For more information visit our website at www.huhinsurance.com or contact us directly at http://www.huhinsurance.com/contact-us. 

If you have a live/real Christmas tree this year, take note of how critically important it is to ensure it not be allowed to dry out… something that often happens when a home is heated and dehumidfied during this time of year. To drive home the point, the National Institute of Standards and Technology has a video showing how an electrical short can lead to catastrophe in literally a matter of seconds, long before the occupants may have a chance to escape.

The National Fire Protection Association (NFPA) reports there is an estimated annual average of 210 home fires that are started by Christmas trees.   Data collected from 2002 to 2005 shows these fires caused an average of 24 civilian deaths, 27 civilian injuries, and $13.3 million in direct property damage per year [1].

The good news is these fires can be prevented!  Properly maintaining a cut Christmas tree by watering it daily helps keep a high moisture content in the needles of the tree.  Thus preventing the rapid spread of a flame caused by accidental ignition.

1. Ahrens, M., Home Christmas Tree and Holiday Light Fires.  National Fire Protection Association, 1 Batterymarch Park, Quincy, MA, November 2007.

Most of us have had occasion to rent a car or truck at some time or another.  We frequently get questions from our customers about whether or not they need to buy the “rental insurance”. 

There is really no right answer here other than “it depends.”

What it depends on is how much risk you are willing to assume.  Your personal or business policy for that matter won’t cover all of the possible claim scenarios that might occur.  Certainly many policies can be crafted to cover most of the exposures, however, I don’t know of any corporate or personal policies that will cover everything that might happen to you.

For instance,  let’s say that you were involved in an at fault accident in a rental car, a one car accident where you hit a tree and damaged only the car.  Let’s also assume that your insurance company paid for the damage to the vehicle (less the deductible) and that the loss of use was also covered.  You think you are in the clear when you find that you have a charge on your credit card for “dimunition in value”.  What on earth is that? 

Most of us, when going to buy a used car, want to know if the car has been in an accident.  The popular tool found on many auto sales websites called Carfax actually reports whether or not a car has been involved in an accident.  The reason is that people prefer cars that have not been damaged and repaired.  Therefore, cars that have been wrecked are not worth as much.  The difference in value is called “dimunition in value”.  The rental car company, when they go to sell the car will get less for a damaged car, even though it’s been repaired.  They want this difference from you, and your  insurance company won’t pay it.

So, the moral of the story is that if you rent a car, check with your agent about how much coverage you have under your policy.  Each one is different.  Then you should be prepared to assume some risk if you rent a car, or you should purchase the rental insurance.

Awards, Trips & Doctors Galore

Our Medical Professional Insurance team (Julie, Tom, & Todd) recently won all sorts of awards & even a couple of trips to Niagara Falls.   

How you may ask?  Well, you may or may not know the company MAG Mutual, but we happen to think it’s the best option out there when it comes to insuring our physician friends.  On March 3rd & 4th, MAG held their 11th Annual Meeting in Atlanta, GA and Hayes, Utley & Hedgspeth won the “2010 Top Producing Agency” Award!  Julie walked away with the title of “Most New Sales in 2010″ for the entire state of Kentucky.  And to top it all off, both Tom & Julie became members of the 2010 MAG Mutual Top Producers Club – meaning they are in the top 6 of agents producing the most new business last year for the entire US.  It was this award that won them each a trip to the lovely Niagara Falls & Toronto in June.   

Let’s hope they bring us back something nice from Canada!

Spring is here!  Which means we can look forward to warmer weather, beautiful flowers and a whole bunch of pouring rain!  With the arrival of flood season we want to make sure you are prepared for whatever comes your way.  Test your Flood Insurance IQ with the video above which goes over different damage types and sheds light on what may or may not be covered under your policy.

We know it can be a bit confusing, so feel free to contact us with any questions.   Or if you need a flood insurance quote, just let us know!

Utilizing Risk Management Services to Reduce your Business’ Premium

Armed with a little insurance and risk management know-how, your business can realize significant savings.  These risk management tips are a great start for any business owner who is curious about starting the risk management planning process.

1. Budget for Insurance Price Fluctuations
   A key goal of any good risk management plan is to be aware that the insurance market is cyclical.  If prices have been flat or dropping for a few years, they will go up again. Plan for it by budgeting at the top end of the market.
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2. Keep your Company’s Loss Ratio Low
   A loss ratio is the premium paid divided by the cost of claims incurred.  A low loss ratio will make your company attractive to insurers, resulting in them competing for your business. This competition leads to your business being offered lower premiums.
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3. Become a Coveted Account to Insurers
   Insurance companies will choose to cover the businesses they feel would be the least risky to insure. It is important to prove to them you are one of the safer choices.  Hence the need to manage your risk.  Hayes, Utley & Hedgspeth can help with this by supplying a customized risk management plan, which can show our carriers exactly how you avoid & minimize risk.
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4. Choose Deductibles that Result in the Optimal Cost of Risk
   The general principle is: the higher the deductible, the lower the premium. By analyzing past losses in conjunction with insurance premium quotes for different deductible options, it becomes clear which deductible is best.
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5. Make Sure your Property Values & Policy Limits are Accurate & Up to Date
   Get a professional appraisal of your property values.  Accurate values and limits mean you are adequately covered, and ensure that you aren’t paying an excessive amount.
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6. Annually Review your Coverages
   Work with your insurance broker/agent to make sure you have all the coverages you need without paying for bells and whistles you don’t want.
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7. Make Payments on Time
   You don’t want a cancellation due to “nonpayment of premium” on your record.
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8. Utilize your Insurance Broker/Agent’s Services
   Most businesses do not fully utilize the services of their broker or agent. Ask them what services they can provide in addition to the ones you already receive. At Hayes, Utley & Hedgspeth, we offer multiple levels of risk management planning & services.  Are you aware of what your broker/agent offers?
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9. Report All Claims to your Broker or Agent Promptly
   They will advise you of your rights and obligations. Failing to give prompt notice may result in denial of the claim.
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10. Just Ask!
    Simply ask what you can do to lower your premium.  Things like installing a burglar alarm or sprinkler system could reduce your premium. Often if you ask, the insurance broker/agent will be happy to tell you what is used to develop the premium, therefore helping you control your insurance costs.

Insurance and claims represent a large percentage of a business’ expenses but it is an area most business people know very little about. With some simple risk management planning many businesses can realize significant savings.

If you have any questions about this topic, feel free to contact Glen Hedgspeth, one of our Risk Management experts.