Is Your Home Winter Ready? – Pt. 1

If you live in a climate that includes cold winters, you know the season creates special challenges for homeowners. In this article, we discuss an icy situation.

Ice Dams

An ice dam refers to ice that has formed along a roof’s edge. The dam of ice blocks additional water and the pooling water backs up and finds pathways into a home’s interior. This water may cause deterioration and decay to interior wood and plaster, drywall or other insulation materials. Once an ice dam has forced paths into a home, the roof becomes more susceptible to future ice dams and water damage.

Too much heat rising from the home to warm the roof is the most frequent cause of ice dams. The process occurs unevenly with the warmer area at the higher part of the roof melting the snow and then the cooler, lower area, particularly the roof edge, permitting the water to refreeze and then accumulate. Inadequate insulation lets too much heat escape into the attic and this creates a warmer roof. Improper ventilation creates moisture and heat buildup due to the lack of air movement.

How To Detect A Problem

Compare the way the snow is melting from the living area of your home with how snow appears on the roof over an unheated area such as a garage or shed. How does any snow coverage on your roof compare with your neighbors’ homes? Check for icicles. They can be pretty, but heavy icicle buildup means that interior heat is melting a lot of snow and may contribute to ice dams.

How To Prevent Ice Dams

There are a number of ways to help prevent ice dams:

• Clear excess snow from the roof. However, in order to minimize damage to the roof and roofing, hire a professional to remove the snow.
• Add rubberized or special roofing adhesives to help prevent pooled water on the roof from finding entry into the home’s interior.
• Inspect the attic and roof for cracks, holes, or joints that permit warm air to escape to the roof, and seal or repair these areas.
• Add the recommended amount of insulation to the attic and exterior walls of your home to minimize escaping heat (this also reduces your heating costs).
• Reduce your home’s thermostat and throw on warmer clothing during extended cold spells.
• Clear your gutters and downspouts so that water is properly shed off your roof.

As always, an insurance professional is a valuable source of safety and insurance information. Don’t hesitate to contact an agent to discuss your questions. If you haven’t had the chance, please be sure to read parts two and three of “Is Your Home Winter Ready” which discusses other winter concerns.

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COPYRIGHT: Insurance Publishing Plus, Inc. 2011

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Loss (Reporting) Control

Daily, insurance consumers experience all types of losses to their property. Depending upon how serious the loss is, property owners have to consider their next action. Typically, the next move is to get an insurance company involved. When a loss amount is high, this may be the only practical thing to do. However, when a loss involves a more modest amount, it may be prudent to carefully consider if it is appropriate to file a claim.

Any entity that carries insurance should always evaluate how insurance affordability or availability may be affected by filing minor claims. Insurers are focusing more of their attention on loss history. They closely scrutinize how past losses affect a given business that they insure or are considering insuring. In the current insurance environment, reporting a minor loss could make you a two-time loser. First, depending upon loss circumstances, coverage may be denied. Second, the fact that the loss occurred may cause your insurer to take a closer look at you.

Insurance companies want to have as much information as possible in order to decide whether to offer or continue to offer coverage. Loss history has always been important to insurers. However, an increased emphasis is being placed on using past losses as a way to predict the likelihood of future losses. The difference is that insurers have abandoned asking only about losses that exceed a certain amount. They now look for information on every conceivable loss. This increased sensitivity to losses may cause an insurer to increase premiums or even decide not to renew coverage when, in the past, minor or unpaid claims were not treated as problems.

Insurance consumers need to be aware of how they handle losses and of how insurers currently respond to their customers’ (or applicants’) loss activity. You owe it to your organization to manage losses in a manner that is in sync with the new reality. Handling more small losses as an operating expense instead of through your insurer may be good business and could help preserve insurance availability for serious situations. More organizations are becoming aggressive and creative in managing losses, especially as insurers have changed their attitude toward losses and underwriting.

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Related articles

• Insuring Jewelry (hkinsurance.wordpress.com)

Personal Injury

Unlike accidental events that result in a person suffering a serious injury (called Bodily Injury) or property that is damaged or destroyed (called Property Damage); Personal Injury usually involves one person’s alleged interference with another person’s legal rights. It also applies to incidents that damages another person’s reputation. Personal Injury commonly includes the following acts:

False arrest, detention or imprisonment

Example: A homeowner suspects that her teen daughter’s friend has stolen jewelry while visiting her home. She locks the teen in her bedroom for an hour until the police arrive and it turns out the teen did nothing wrong.

Malicious prosecution

Example: A gentleman accuses his neighbor of stealing a laptop from his home and files charges with the police

Wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy

Example: A boarder comes home from work and finds his room’s door padlocked. The homeowner/landlord did it after the boarder, for the third night in a row, plays his stereo loudly;

Oral or written publication of material that slanders or libels a person or organization or disparages a person’s or organization’s goods, products or services

Example: A homeowner is the president of her parent and school organization. She also publishes articles for the organization on her Website. After an argument with another organization officer, the president recounts the incident on her site and includes some insults and false items about that person

Oral or written publication of material that violates a person’s right of privacy

Example: A woman is visiting a friend. During the visit, she overhears her friend’s conversation with her doctor. The next day, the person reveals to others that the friend, a young, single female, is having medical problems due to an unexpected pregnancy.

All such acts are examples of incidents that could result in lawsuits. However, they are also the sort of events that are excluded from coverage by the typical homeowners policy. The major reason for their exclusion is that they are deliberate acts rather than being accidental. One way to secure coverage for personal injury losses is to purchase personal umbrella coverage. It may be worthwhile to discuss your possible need for personal injury coverage with an insurance professional.

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Snowmobile Safety

Bounding over trails through woods, over fields and across frozen ponds or lakes with cold blasts of air whipping around are all part of the fun that thousands and thousands of people enjoy during winter in their snowmobiles. Snowmobiling’s fun should not mask the fact that it still involves the use of fast, heavy vehicles that, in collisions, can cause severe injuries and damage to property. Some models of snowmobiles and all-terrain vehicles operate at speeds that rival automobiles. Unlike autos, they are open vehicles, lacking the structural protection of even the smallest auto; therefore the danger to snowmobile users is far higher.

The danger of being injured while operating snowmobiles is compounded by some important factors. Snowmobiles are operated over rough terrain with obstacles that are often hidden by snow. They are operated in areas where the drivers are not familiar with paths or trails. Novices and older operators with poorer reflexes are attracted to recreational snowmobiling and these vehicles are often used very late at night, in remote areas. Another consideration regarding use of snowmobiles is that operators also combine driving with drinking and alcohol intensifies the other dangers.

Naturally there are practices that can help lower the chances of being in a serious accident. Snowmobile operators should:

• Avoid solo snowmobiling – having another person around in case of an accident is probably the greatest safety practice.
• Properly maintain the snowmobile to insure safer operation
• Dress in appropriate safety gear and clothing, including water-repellant apparel
• Operate snowmobile at speeds that are appropriate for conditions and terrain
• Do not drink alcohol while operating a snowmobile
• Use marked trails and don’t stray off of them
• Carry a first aid kit, as well as other emergency equipment, especially tools, flashlights, compass, matches, etc.
• Avoid crossing bodies of water as breaking through ice is a major peril (drowning is a chief source of snowmobile accident fatalities).

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COPYRIGHT: Insurance Publishing Plus, Inc. 2010

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Claims by Candlelight?

There’s Something Happening With Candles?

If things haven’t got complicated enough for persons concerned with protecting their homestead, it appears that the soft, soothing glow of a candle’s flame may disguise some problems. Specifically, the use of candles may result in:

• reducing the internal air quality of your home
• increasing the chance of fire losses
• damages by particulate deposits on interior and exterior walls, carpets, furniture, appliances, window treatments, floors and other surfaces.

Further, their use may also contribute to health problems from inhaling particulate matter or ingesting harmful chemicals.

What’s The Problem?

Actually, there are a number of problems and they have been accentuated by a change in the market for candles. The last few years have seen an explosive growth in the popularity of candles. They are increasingly used for their traditional, decorative purpose and they are now marketed as scented candles for deodorizing and for a health-related purpose called aromatherapy.

Of course, to boost sales, candle-makers find that they have to offer products with an intense scent. This is accomplished by adding scented oils into their wax mixture. This often causes the candle to burn improperly and increase the production of soot.

A Sooty Situation

It looks like soot, which is a carbon residue produced by burning, can create a large, expensive problem. Since soot is particulate matter that can be carried through the air, it can seriously stain walls, carpets, and personal property. Studies show that electronic and plastic components are also vulnerable to soot damage. Unfortunately, soot produced by improperly burning candles bonds very strongly, making it difficult to impossible to clean. Further, soot may contaminate a home’s heating system, including ductwork. The soot can then be spread throughout a home, creating widespread damage that is difficult to repair. Property stained by soot may have to be cleaned by professionals and, often, the property has to be replaced.

What’s in those things anyway?

You may have assumed that the only materials found in candles were the wick and some type of wax. Surprise! Here’s a list of ingredients which may either be found in a candle or may be created during combustion:

• Acetone Benzene Trichlorofluoromethane
• Carbon disulfide 2 Butanone 1 1- Trichloroethane
• Trichloroethene Carbon tetrachloride Tetrachloroethene
• Toluene Chlorobenzene Ethylbenzene
• Styrene Xylene Phenol
• Cresol Cyclopentene Lead

Another surprise is that the candle-making industry is not required to tell consumers about the ingredients used in their products, including when a wick is used which contains a lead core.

Poor candle design or practices

Besides the use of oils and chemicals, candle-makers sometimes create problems because they make other mistakes. Candles may also burn improperly (causing soot) because a candle’s wick may be off-center or there may not be a proper amount of air in the candle mixture. A candle may have a higher likelihood of causing a fire loss due to:

• an improper candle mixture which results in intense heat or high flames
• improper holders (glass that shatters or spills flammable liquid)
• wood holders that catch fire
• flammable items imbedded in the candle mixture such as potpourri

Coverage Under a Homeowner Policy?

Damage to a home or personal property due to soot can create serious problems for both an insurer and a homeowner. Losses involving soot can create thousands of dollars in damages. Depending upon the details surrounding a loss and the wording of the particular homeowner policy, coverage for the damage may not be available. Why? Because the source of loss might be considered the result of pollution, which may be excluded. Another reason for rejecting a claim may be an assumption that the damage was gradual instead of sudden, so it wouldn’t be considered accidental and sudden damage. A claim could even be affected by the knowledge of the insured. For instance, even if the policy covers soot-related losses, a claim could be denied if a homeowner knew that the type of candle they used could cause damages.

Since the damage is caused by matter that is invisible to the naked eye, it could be difficult to prove that the loss was sudden. Tests can be used to determine the cause of stained or discolored property, but the testing can be expensive and the cost may have to handled by the homeowner.

What To Do?

It’s all up to you. You might wish to ask more questions about the type of candles you use or curtail your use. You can also discuss whether coverage is available under your homeowner policy with an insurance professional. If you do use candles frequently, you may also want to check your home thoroughly for any stains or discoloration, including any contamination of your heating system. Candle, candle, burning bright? Not if you cause a claim tonight.

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Office Functions and Alcohol

The office picnic, office-sponsored sports activities, holiday party, and client party are events that may involve serving and consuming alcoholic beverages. Can a business be held responsible for injuries or damages that result from serving alcohol? Is the current insurance program sufficient to address this concern? Is it necessary to purchase special insurance? State alcohol laws (called Dram Shop Laws in most states) determine a business entity’s liability for injury or damage arising from serving alcohol. Laws vary, but most assign liability for serving persons who are minors or are visibly intoxicated.

The Commercial General Liability (CGL) policy provides coverage for Liquor Liability but EXCEPT for businesses ‘in the business of’ selling, serving, or manufacturing alcoholic beverages. If the event offers alcohol without a charge, it could be stated that the insured is not ‘in the business of’ selling or serving. If persons have to pay, even if the charge is only to offset the alcohol’s expense, that fact could create a different legal situation.

When hosting an event that includes liquor, some businesses have decided that hiring a bartender will reduce their risk of being held liable. This step at least offers the benefit of another party being held primarily responsible and reducing the amount the business might be required to pay. The main issue is obtaining proof from the bartender to confirm that he or she carries an adequate level of Liquor Liability insurance. Proof should be obtained PRIOR to the event. Otherwise, it may be too late when you find out that there isn’t a policy or that the limits are insufficient.

Society is less tolerant of drinking and driving. An impaired driver who causes an auto accident is much more likely to be sued. Besides the driver, a lawsuit will likely include a business that provided alcohol. Why, because such a business is considered as contributing to the loss and is called on to share (or fully bear) the cost of injury or damage. The Commercial General Liability policy could provide the necessary defense for the business.

Example: Business A and Business B are both insured by CGL policies and each company recently sponsored a Christmas party. After each party, a very inebriated employee leaves and, before reaching home, causes a collision. The injured drivers sue the businesses along with the drunken employees. Business A is an accounting office and its CGL handles the lawsuit. Business B is a tavern; its CGL denies the claim.

The solution is to discuss the types of events your business sponsors or hosts with your agent to determine if you need to purchase special coverage. This discussion may also help you take steps to reduce potential lawsuits. Some businesses may find it easiest and safest to ban drinking during business hours, including business lunches, dinners or other events. Your insurance agent and legal counsel can assist you in determining ways to protect your assets.

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COPYRIGHT: Insurance Publishing Plus, Inc. 2011

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

Be a Common Sense Host

Holidays and special events often include celebrations that bring together families and friends in private homes across the country. Food, fun, talk and spirits flow generously and, unfortunately, so do injuries and accidents. It’s not news to hear that increased drinking leads to increases in personal tragedies, but it’s important to get reminders that individuals must be responsible for their actions.

Hosts are very important with regard to any consequences of partying. Hosts are given the credit for the enjoyment that their guests experience at a party. On the dark side, party-givers are also asked to bear partial or full responsibility for guests who cause damage or injury on the way home from a gathering. In other words, they may be sued for contributing to losses caused by alcohol-impaired guests.

Although hosts are often found legally culpable for accidents; the brunt of responsibility has to be faced by the individuals who directly cause a loss. There would have to be strong evidence to support a host being held financially responsible, since any involvement is indirect. For example, Jane provides drinks to Barrie, who then plows into the side of Chris’ car and garage.

While a homeowners policy may offer coverage if a host has substantially contributed to a loss, an insurer may be able to deny a claim for a number of reasons, including:

• A gathering involves the host making an income
• The involvement of paid bartenders
• The party is thrown as a fundraising event
• A host’s knowledge that the guest was impaired and continued to serve liquor
• The host failed to make arrangements for impaired guests (designated drivers, taxis, lodging, etc.)
• Local or state law(s) related to providing alcohol

Hosts who take their responsibility seriously are those who make sure that parties are thrown responsibly, are done as a social (rather than business) event, and that the chances of sending drunken guests on the road are minimized. A good host will make sure that food is available, that a liquor supply under his or her control is cut-off and that impaired friends or relatives are prevented from endangering themselves or others. No celebration should end up with a lawsuit.

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Identity Theft Part – 2

Part 2 is a brief explanation of what can be done to prevent ID Theft. Please see Part 1 for an explanation of what is meant by ID Theft.

Unfortunately, even as instances of ID theft grow, insurance is not a particularly important anti-ID theft tool. The type of loss is not something that an auto, home or similar insurance policy may be adequately adapted to handle. While homeowner policies do typically protect against credit card loss, coverage is usually just for the amount that falls below the minimum liability imposed by federal law (currently $50 per card). The serious harm suffered by ID theft victims are the costs associated with clearing up the aftermath, such as correcting one’s credit history and straightening out various accounts and records. This effort routinely takes months and hundreds to thousands of dollars in legal fees.

More insurers offer coverage for ID theft. Typically, the coverage reimburses legal fees or paying costs related to dealing with third parties to correct records. The most effective protection is for individuals to prevent becoming ID theft victims. Following are some suggestions:

• Keep your account information and Social Security Number (SSN) safe. One idea: keep home records in a locked file.
• Keep details about your various account numbers in a safe place so you can rapidly take care of stolen or lost cards.
• Be very careful with on-line transactions. Is the Website you use secure?
• Find out the privacy guidelines and safeguards of the businesses and parties you deal with.
• Make sure that you verify that websites for online transactions are legitimate
• Use password protection on smart phones and never leave such devices unattended
• Challenge those who request an SSN. Why is that information needed? Can some other information be used as an alternative?
• Think about buying and using a paper shredder. Many information thieves steal mail by going through garbage.
• Write companies who send unsolicited charge cards and have yourself removed from their mail list.
• Check bank and business records thoroughly for irregularities. Track down the reason for any unusual transactions or entries.
• Ask stores that use credit cards if they transmit the information with a wireless network. If yes, ask what safeguards they use to prevent airwave theft.
• If you ever have a charge card transaction involving an imprinter that uses a carbon set for copies, ask for the carbon or watch the clerk destroy the carbon before it’s thrown away.
• Collect mail from mailboxes quickly and don’t put outgoing mail in your own mailbox. These practices give thieves fewer opportunities to fish for checks and private information.

Remember that these are just a few suggestions. Taking steps to minimize the chance of ID theft is a lot of work. That is a major reason that ID theft will continue to be a problem to individuals and businesses.

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COPYRIGHT: Insurance Publishing Plus, Inc. 2002, 2006, 2011

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Identity Theft – Part 1

Part 1 is a brief explanation of ID Theft and its consequences. Please see Part 2 for information on what can be done to prevent it.

ID theft is another form of fraud that has been around for as long as there have been dishonest people. It is a high-profile problem because technology has created many more opportunities for this crime. Credit cards, funds transfer cards, ATMs, wireless payments, slipshod business practices and the Internet have all combined to make identity theft a major problem for individuals and businesses.

ID theft describes any dishonest and unauthorized use of private information. In the past, the term rightfully described forgery or passing oneself off as another person to trick someone out of money and/or property. Today, it refers to an unauthorized party who secures goods, services, or other financial benefits by the fraudulent use of another person’s confidential information.

The favorite piece of information is a social security number. This information has routinely been used for gaining access to other private information such as driver’s history, credit information, bank accounts, loan information, credit cards, occupational history, military records, mortgage information, investment accounts and so on. Having this critical bit of information can allow a criminal to use another party’s accounts, secure loans, and charge a host of goods or services; the list is only limited by the criminal’s resources and imagination.

A complication of ID Theft is that it is a by-product of modern commercial life. Lenders, retailers, supermarkets, gas stations, airlines, travel clubs and everyone else have elevated cashless payments into the premiere way to do business, either live or electronically. This “ease” comes at great cost. As naïve as it sounds, business still operates on the assumption that everyone is honest. Few businesses have adequate safeguards to protect the information they collect on customers. Many businesses commonly mail out or electronically transit communications and solicitations that include private account information. It is common for electronic transactions to be transmitted through wireless networks and thieves are now able to intercept such data. Further, since businesses are often embarrassed that information has been stolen or compromised by hackers, many businesses keep such invasions secret or substantially delay reporting incidents to authorities and to their customers.

In light of business practices and attitudes, it’s basically up to the individual consumer to guard against ID theft. Though, in recent years, business best practices and government regulations are ramping up security activities. See Part 2 for tips on guarding against it.

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COPYRIGHT: Insurance Publishing Plus, Inc. 2002, 2006, 2011

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

Insuring Jewelry

Most homeowner policies provide very limited coverage for jewelry. The reason? Jewelry is high-valued (especially in relation to its size), is easily lost or destroyed and is vulnerable to theft (as well as fraud). If you only own a modest amount of jewelry (say just a few hundred dollars), perhaps the limited coverage provided by a basic policy is adequate. However, when high values are involved, consider buying special insurance coverage. A few options are available such as buying supplemental insurance that is attached to your homeowners or tenant’s policy or purchasing a separate jewelry policy.

Discussing what is needed and expected from separate coverage is very important. Does the coverage consider jewelry values that increase over time? Does it cover mysterious disappearance (when you know the property is gone, but can’t pinpoint when and how the property was lost) and other causes of loss, or just fire and theft? Discussing the coverage also helps you understand the steps you must take to make sure that you keep the maximum coverage in force and whether the coverage you receive is worth the additional price.

Documenting The Jewelry’s Value
If the jewelry has just been purchased, a store receipt or certificate should establish the insured value. However, as time passes or circumstances change, the insured value must be reevaluated, perhaps by seeking an appraisal (expert opinion). Getting an appraisal that affirms your jewelry’s current value is an excellent way to assure that your property is properly protected. Of course, make sure that you work with a competent appraiser (check their credentials and number of years of experience). It is also helpful to talk to a potential appraiser. Does she seem to have the necessary expertise? How willing and able is she to explain her work? There are several professional jewelry and appraisal associations that can give you information on appraisers and appraising methods. All of these items are important, especially since you have to pay a fee for an appraiser’s services.

Handle With Care
Once you’re certain about the value of your jewelry and the adequacy of its insurance coverage, you need to properly handle your jewelry. After all, who wants to actually file a claim? If you own a significant amount of expensive jewelry you may want to look into other precautions such as:

Get new appraisals every two or three years, sending a copy to your insurer
Take photos of your jewelry from several angles; again, share copies with your agent or insurance company
Consider a quality in-home security system, including a hidden vault or storage area
Take care on where and when your jewelry is worn to try to avoid becoming a theft target
Keep original receipts and all appraisals, especially if they demonstrate that the jewelry’s value is appreciating
Ask your jeweler whether they have access to “Gemprint,” or a similar jewelry identification system that documents a jewel’s distinctive markings much in the manner of fingerprinting.
Consider storing jewelry that is rarely worn in a bank or saving institution’s vault. (Note that such special storage often qualifies for an insurance premium discount)
Again, your first step is to talk to an insurance professional since he or she shares your concern that you have the protection you need at a price you can afford.

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COPYRIGHT: Insurance Publishing Plus, Inc. 2011

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.