FLOOD INSURANCE vs. Federal Disaster Assistance

Posted on September 19, 2011 by aamberg

Again, we want to urge you to be aware of the benefits of purchasing a flood insurance policy. Certainly, the recent storms across the country show how tragic and financially devastating a flood can be to lives and homes. Flood insurance is the best way to protect you and your family from flood loss. Sometimes people tell us that they resist purchasing flood insurance because they believe that they will be eligible for disaster assistance should their homes become flooded.

A National Flood Insurance Program (NFIP) publication provides a comparison between Flood Insurance and Disaster Assistance.  Here are the facts:

FLOOD INSURANCE VS.  DISASTER ASSISTANCE

The insured is in control.  Flood insurance claims are paid even if a disaster is not declared by the President.

Most forms of federal disaster assistance require a Presidential declaration.

Between 20 and 25 percent of all claims paid by the NFIP are outside of Special Flood Hazard Areas.

Federal disaster assistance declarations are not awarded in all flood incidents.

There is no payback requirement.

The most typical form of disaster assistance is a loan that must be repaid with interest.

Flood insurance policies are continuous, and are not non-renewed or cancelled for repeat losses.

The duration of a Small Business Administration (SBA) disaster home loan could extend to 30 years.

Flood insurance reimburses you for all covered building losses up to $250,000 and $500,000 for businesses.  Contents coverage is also available up to $100,000 for homeowners and $500,000 for businesses.

The average Individuals and Households Program awarded for Presidential disaster declarations related to flooding in 2008 was less than $4,000.

The average cost of a flood insurance policy is a little more than $500 annually.  The cost of a preferred risk policy is less than $300 annually, depending on where you live.

Repayment on a $50,000 SBA disaster home loan is $340 a month or $3,880 annually at 4% interest.

You can get further information, request a flood quote or verify these facts at http://www.fema.gov/business/nfip/ or http://www.floodsmart.gov/floodsmart/

Posted in Business Insurance, Disaster Preparedness, Flood, General, HomeOwners Insurance, Hurricane, Uncategorized | Leave a comment

Hurricane Preparation Information

Posted on August 25, 2011 by aamberg

The National Flood Insurance Program (NFIP) has developed a number of resources that can help you communicate with residents about preparing for and recovering from a hurricane.

FEMA’s National Flood Insurance Program and the FloodSmart Campaign also offer helpful tips on what to do to prepare before a flood. We encourage you to share this information with residents of your community.

1. Safeguard your possessions.

  • Create a personal flood file containing information about all your valuable possessions and keep it in a secure place, such as a safe deposit box or waterproof container. This file should include:
    • A copy of your insurance policies with your agents’ contact information.
    • A household inventory: For insurance purposes, be sure to keep a written and visual (i.e., videotaped or photographed) record of all major household items and valuables, even those stored in basements, attics or garages. Create files that include serial numbers and store receipts for major appliances and electronics. Have jewelry and artwork appraised. These documents are critically important when filing insurance claims. For more information visit www.knowyourstuff.org.
    • Copies of all other critical documents, including finance records or receipts of major purchases.

2. Prepare your house.

  • Inspect your sump pump. If you have a sump pump, make sure it’s working and then install a battery-operated backup, in case of a power failure. Installing a water alarm will also let you know if water is accumulating in your basement.
  • Clear debris from gutters and downspouts.
  • Anchor fuel tanks.
  • Raise your electrical components (switches, sockets, circuit breakers, and wiring) at least 12 inches above your home’s projected flood elevation.
  • Place the furnace, water heater, washer, and dryer on cement blocks at least 12 inches above the projected flood elevation.
  • Move furniture, valuables, and important documents to a safe place.

3. Develop a family emergency plan.

  • Create a safety kit with drinking water, canned food, first aid, blankets, a radio, and a flashlight.
  • Post emergency telephone numbers by the phone and teach your children how to dial 911.
  • Plan and practice a flood evacuation route with your family. Know safe routes from home, work, and school that are on higher ground.
  • Ask an out-of-state relative or friend to be your emergency family contact.
  • Have a plan to protect your pets.

We also hope you are also taking this time to prepare your family and business from the potential impact of the storm.

Please email us at info@femafloodsmart.com with any questions about NFIP and FloodSmart.

Stay safe,
The FloodSmart Team

Posted in Disaster Preparedness, Flood, General, HomeOwners Insurance, Hurricane, safety | Leave a comment

Peak Hurricane Season is Here!

Posted on August 17, 2011 by aamberg

The height of the 2011 Hurricane Season is here, which means a significant risk of flooding in both coastal communities and those far inland as well. In fact, some of the worst damage from recent hurricanes occurred hundreds or even thousands of miles from the coast—as far as New York state due to Hurricane Ivan in 2004 and through much of the Midwest and into Pennsylvania because of Hurricane Ike in 2008. While you may not be aware of the risk until your community is threatened with an impending storm, you need to know now that there is typically a 30-day waiting period for a flood insurance policy to take effect!

We encourage you to get covered now!  Flood insurance is more affordable than you may think. The average flood insurance policy is around $579 a year and in moderate-to-low-risk areas, Preferred Risk Policies start as low as $129 a year.

Costly Consequences

Eight of the top ten most expensive federally declared disasters were caused by hurricanes. Just a few inches of water can cause tens of thousands of dollars of damage and last year, the average individual flood insurance claim was more than $24,000. Without flood insurance protection, many property owners have to absorb the financial losses on their own, potentially draining their savings.

Visit FloodSmart.gov to find essential information and tools that will help you prepare for the dangers of flooding all year long.  The following are some of the great information sources you can find there:

  • Cost-of-Flooding Tool:  This gves you an estimate of how much you will have to pay to repair your properties based on various levels of flooding.
  • Levee Simulator: Demonstrates how levees work and the risks home and business owners face when they fail.

While many are motivated to purchase flood policies when flooding dangers are top of mind, too many allow their policies to lapse when they believe the threat has passed.  Don’t let this be your state of mind!  Get the facts, stay informed and be prepared!

Posted in Disaster Preparedness, Flood, General, HomeOwners Insurance, Hurricane, Uncategorized | Leave a comment

Feathering the Nest? Update Your Insurance

Posted on August 16, 2011 by Pat Amberg
Consumers spend billions on their homes. Home improvement projects tallied to a whopping $280 billion in 2005, according to research from the Joint Center for Housing Studies at Harvard University. The center forecasts that home renovations will grow at a steady 3.7% rate annually through 2015, after inflation.

What shouldn’t be lost in the excitement of adding a bedroom, finishing a basement or updating the kitchen is your financial security. The risk management and insurance tools available through your Trusted Choice® insurance agent are indispensable when you’re renovating.

Be aware that home renovations add to the risks you’re facing as a homeowner, including injuries to family, contractors and delivery workers; fire, theft, and vandalism; and water damage. What’s more, know that you must protect yourself from financial liability for anything that goes wrong.

It’s imperative that your homeowners and umbrella insurance coverages are set up correctly before, during and after your renovation project. The time and paperwork required may seem a distraction when you’re eager to upgrade an older home, install an energy efficiency retrofit, or renovate a rental property. But it’s every bit as important as buying the building materials or choosing the contractor.

Before renovations start: Require contractors to provide proof of insurance for workers compensation and liability coverages. Your insurance agent can guide you on how to do this and what to ask the contractor to provide.

Workers compensation insurance pays for medical and rehabilitation expenses (and covers lost wages) if workers are hurt on the job. Workers who are injured in your home can sue you or claim damages from you if the contractor they work for does not have adequate coverage. (By default your homeowners and umbrella liability policies can become their insurance coverage, an unwelcome development for those who pay the premiums and do the claims paperwork.)

If you need to move out during construction, notify your agent so you can be certain that you have proper coverage for a temporary residence such as a hotel or rented home.

Recognize that building code upgrades and market changes may change the standard to which your renovated home is held. For example, home alarm systems have become popular, so you may wish to add one during your renovations. It may add to the renovation cost, but can make your home safer and earn a homeowners insurance discount. Such decisions are generally best considered before the project starts.

During construction: With the added risks—such as construction accidents, fires due to power tools and open utility lines, and strangers in the house who may be tempted to steal your property or your identity—you may want to consider temporarily increasing homeowners and/or umbrella policy limits and/or changing the deductible.

After the project is finished: Home improvements can increase the market value and replacement cost of your home. Your agent can guide you to proper insurance coverage levels for homeowners and umbrella policies. At that time, you may want to also ask about guaranteed replacement cost coverage for your homeowners policy.

The renovated or expanded space in your home may fill up with new furniture, exercise equipment, electronics, and appliances. Track those purchases with receipts and a written or electronic home inventory. Additionally, check the coverage in your homeowners policy for personal property (home possessions).

Talk to your Trusted Choice® agent to be sure your home is properly insured at all stages of a home renovation project.

We are a Trusted Choice® agency and represent multiple insurance companies, so we offer you a variety of personal and business coverage choices that can  be customized to meet your specialized needs.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Join the forum discussion on this post - (1) Posts
Posted in HomeOwners Insurance | Leave a comment

Let’s Take A Look At Boat Insurance Coverage

Posted on August 8, 2011 by Pat Amberg

Boat insurance is an important type of coverage, as boats can be quite expensive. You wouldn’t drive a car without insurance, and it’s a bad idea to drive a boat without appropriate coverage.

Many different types of boat insurance are available for different types of crafts. For instance, major insurance companies will often offer sailboat insurance, jet ski insurance, and even rowboat insurance. The major differences in these plans are often their cost; riskier craft come with a higher cost. Speed boats and jet skis often carry the highest boat insurance premiums. The number of individuals that can ride on your boat will also affect your premiums, and many other factors will also be at play, including the lake that the boat is stored on and your age. An insurance agent should be able to tell you about the common factors that go into boat insurance premiums, and this can be very useful information if you’re trying to get lower premiums.

Coverages can provide for repairs to a boat, personal injury coverage, and special add ons for water towing or “roadside” assistance. Deciding on an appropriate amount of coverage can be difficult. It’s generally a good idea to opt for emergency add ons and to buy personal injury protection (PIP) as well as liability coverages. Check your state’s laws to find out whether certain amounts of boat insurance are required, and again, check with your insurance agent. It may be a good idea to buy total loss coverage, which can cover the cost of your boat if it sinks or if it’s involved in a major accident. An agent should be able to explain this coverage and give you solid feedback on how much coverage that you need to buy.

Always shop around when buying boat insurance, and have as much information about your boat prepared as possible. This will make it easy to compare rates and find a great low cost policy with sufficient coverage. You’ll feel a lot safer when you’re on the water with the right boat insurance coverage–don’t wait to buy.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

 

Posted in General | Leave a comment

The Special Risks of Hurricanes and Floods

Posted on August 1, 2011 by Pat Amberg

The end of summer seems to be peak time for natural disasters. Often, Labor Day weekend newscasts include stories about a hurricane, flood, tornado or wildfire happening somewhere in the United States.

Those who are dealing with the crises created by natural disaster need more than news coverage—they need insurance coverage. There are significant risks presented by natural disasters, which not only threaten homes and businesses but also endanger the health and lives of people in their paths.

Nowhere is the value of insurance more apparent than with natural disasters. But consumers must make decisions on important issues in order to insure their homes and possessions from the financial risk of hurricanes and floods:

Hurricane deductibles. June through November is hurricane season in the United States. Many remember the disastrous 2005 hurricane season in the south, when insurance companies paid an estimated $41 billon for 1.7 million claims for damage to homes, businesses and vehicles in six states from Hurricane Katrina, according to the Insurance Information Institute. The Katrina disaster, combined with Hurricanes Rita, Wilma and Dennis, led to more than $57 billion of insured losses and 3.3 million insurance claims.

In recent years, insurance carriers have begun requiring homeowners to have a “hurricane deductible” where permitted by state insurance law. Designed to help insurers manage the significant financial risk they carry when paying thousands of claims in one geographic area, hurricane deductibles apply to damage solely from hurricanes.

Hurricane deductibles range from one to 5% of a home’s insured value. Coastal areas may be higher. The deductible is “triggered” based on the circumstances stated in the homeowners insurance policy language. For example, a 2% hurricane deductible for a home valued at $200,000 means that the homeowner would pay the first $4000 (2% x $200,000) of damage from a hurricane.

Like most insurance coverage, premiums are higher with a lower deductible. Policyholders may have the option of a traditional dollar deductible (such as $500 or $1000) in some states, although that’s not typically offered in higher-risk coastal areas.

Flood insurance. Flood damage is specifically excluded by homeowners and renters insurance policies. Flood insurance coverage, though, is available through independent insurance agents as a separate policy from the National Flood Insurance Program (NFIP), a federal insurance mechanism. In the 1960s, taxpayers often had to “bail out” flood victims, and Congress created the NFIP to make flood insurance available in communities that adopted floodplain management laws to reduce flood damage.

Today, NFIP insurance covers up to $250,000 for the structure of a residential property and $100,000 for contents. Premiums start at $348 for that coverage for a residential property and its  contents. Some insurance carriers offer additional flood insurance (called “excess coverage”) above the basic policy limits or for people whose communities do not participate in the NFIP.

In 2008, a survey by the Insurance Information Institute found that 17% of Americans have a flood insurance policy. The national flood program reported that the average flood claim amounts to $33,000.

Hurricane deductibles and flood insurance are two insurance decisions that consumers might want to double-check. Contact us. We are a Trusted Choice® insurance agent.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

 

Join the forum discussion on this post - (1) Posts
Posted in Flood, Hurricane | Leave a comment

What Does Umbrella Insurance Cover?

Posted on July 15, 2011 by Pat Amberg

Perhaps, you have been repairing your outside deck and patio due to the wood becoming old and rotten. You mean to finish this job quickly, but it drags on. One day, you invite a friend over. He wanders onto your deck and falls through it. He badly injures himself and sues you for over one million dollars. You may be wondering what kind of insurance you should buy to protect against situations such as these. The answer is umbrella liability insurance.

It is for extreme situations such as these that umbrella insurance is purchased. Umbrella insurance, however, is not really something designed to be purchased alone. It is designed as more of a way to fill in gaps in existing forms of insurance coverage that an individual may have. You may need Umbrella insurance, for example, if your car insurance can only pay out a certain amount in certain situations. Another situation may present itself when your home insurance can only pay out at a certain rate.

Umbrella insurance acts as a kind of backup insurance to come into play when other forms of coverage a person owns have become exhausted. For example, a person may be sued for $1,200,000. That person may have car insurance that can only pay out $400,000 and home owners insurance that can pay out $250,000. If this person does not have umbrella insurance, that person may end up losing almost all of her possessions. However, with one million dollars worth of umbrella insurance, the amount of coverage may be more appropriate to cover the actual loss amount.

Umbrella insurance doesn’t only fill in the gap for these kinds of policies. It can also be used in many other situations in which a person may be sued for damages. The reason it is called umbrella insurance is because the kind of coverage it provides is very broad. This is why umbrella insurance is extremely popular with businesses that are at risk of being sued in a multitude of different scenarios.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

 

Join the forum discussion on this post - (1) Posts
Posted in General | Tagged , | Leave a comment

How do you Insure your home business?

Posted on July 7, 2011 by Pat Amberg

Home businesses are great because they give a person the flexibility they need to take care of their families, run errands, and attend school, among other responsibilities. However, do not think that your business is untouchable just because you run it from your home office or garage. It is important to really safeguard your investments so that you do not wake up one day to see everything destroyed. This is where insurance comes into play.

If you run a business from home, then chances are high that you are using a computer to do everything from communicate with clients to deal with payments and mailings. What would you do if this computer was hacked or suddenly died? Computers are valuable and so too is the information on them. This is why you need insurance for your home business. The right plan means that you will always have the financial resources you need to recover from such an issue.

Homes can be the target of theft, both business related and otherwise. You could come home from a family outing only to realize that your home has been vandalized and your goods or inventory have been damaged or stolen. Having insurance means that you can replace such items without your business going under. You want to protect yourself so that a year’s worth of work and inventory does not vanish in a moment.

Contact your insurance agent to discuss the various ways that you can protect your inventory, supplies, computers and even your potential liability that comes from running a business from home.

“Our blogs are for general education information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

 

Join the forum discussion on this post - (1) Posts
Posted in Business Insurance | Leave a comment

Don’t Forget to Insure Your Jet Ski

Posted on June 23, 2011 by Pat Amberg

When buying a new car, everyone thinks about the insurance that they will need to protect it; the same should go for everything you buy to drive, both on land and in the water. One popular item that many people forget to buy insurance for is their jet ski.

One reason some people don’t think about insuring their jet ski is because they might think that their homeowner’s policy will cover a small watercraft like a jet ski, but it rarely does. Some homeowner’s policies will protect a jet ski if they are limited to less than 50 horsepower. When they do cover jet skis, they will usually only cover it for physical damage, it will not provide any liability coverage in the case of an accident or damage to property, which is why it is important to buy a policy that covers the jet ski itself.

As with other insurance policies for small watercraft, jet ski insurance will cover normal use of the craft, along with coverage for sports activities liking towing a skier behind you. Additionally, discounts are offered for people who operate jet skis only during part of the year such as on a lake in the Midwest, where it isn’t practical to use a watercraft safely in the winter months.

It is important to know that jet ski insurance will protect you even when the craft isn’t in the water. You are protected in case of a fire or if your jet ski is damaged by accident. Additionally, you are insured in case your jet ski is the victim of vandalism or theft. No matter how much or how little you drive your jet ski, it is important to have insurance so that you will have peace of mind knowing that you are covered. Ask your agent about this important coverage.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

 

Posted in General | Leave a comment

What Should I Do Before Wildfire Threatens?

Posted on June 14, 2011 by Pat Amberg

In Florida, due to the nature of our thunderstorms and the ensuing lightning, there is the risk of wildfire.
Wildfires spread quickly, igniting brush, trees, and homes. Reduce your risk by preparing now. Decide as a family what to do and where to go if wildfires threaten your area.
Promote and practice wildfire safety.

  • Contact your local fire department, health department, or forestry office for information on fire laws.
  • Clearly mark all driveway entrances and display your name and address.
  • Report conditions that could cause a wildfire.
  • Teach children about fire safety. Keep matches out of their reach.
  • Post fire emergency telephone numbers.
  • Plan several escape routes away from your home – by car and by foot.
  • Plan how the neighborhood could work together after a wildfire. Make a list of your neighbors’ skills such as medical or technical. Consider how you could help neighbors who have special needs such as elderly or disabled persons. Make plans to take care of children who may be on their own if parents can’t get home.

Before Wildfire Threatens
Select materials and plants that can help contain fire and not fuel it. Use fire-resistant or noncombustible materials on the roof and exterior structure of the dwelling, or treat wood or combustible material used in roofs, siding, decking, or trim with fire-retardant chemicals evaluated by a nationally recognized laboratory, such as Underwriters Laboratories (UL).
Create a 30- to 100-foot safety zone around your home

  • Rake leaves, dead limbs and twigs. Clear all flammable vegetation.
  • Remove leaves and rubbish from under structures.
  • Thin a 15-foot space between tree crowns, and remove limbs within 15 feet of the ground.
  • Remove dead branches that extend over the roof.
  • Prune tree branches and shrubs within 15 feet of a stovepipe or chimney outlet.
  • Ask the power company to clear branches from power lines.
  • Remove vines from the walls of the home.
  • Mow grass regularly.
  • Clear a 10-foot area around propane tanks and the barbecue. Place a screen over the grill – use nonflammable material with mesh no coarser than one-quarter inch.
  • Regularly dispose of newspapers and rubbish at an approved site. Follow local burning regulations.
  • Place stove, fireplace and grill ashes in a metal bucket, soak in water for 2 days; and then bury the cold ashes in mineral soil.
  • Store gasoline, oily rags and other flammable materials in approved safety cans in a safe location away from buildings.
  • Keep firewood at least 100 feet away and uphill from your home. Clear combustible material within 20 feet. Use only wood-burning devices evaluated by a nationally recognized laboratory, such as Underwriters Laboratories (UL).
  • Call your insurance agent twice a year to review your homeowner’s insurance policy and also prepare/update a list of your home’s contents.

Protect your home

  • Regularly clean roof and gutters.
  • Inspect chimneys at least twice a year and clean once a year. (Contact your local fire department for exact specifications.)
  • Use 1/8-inch mesh screen beneath porches, decks, floor areas, and the home itself. Also, screen openings to floors, roof and attic.
  • Install a dual-sensor smoke alarm on each level of your home, especially near bedrooms; test monthly and change the batteries at least once each year.
  • Teach each family member how to use a fire extinguisher (ABC type) and show them where it’s kept.
  • Keep handy household items that can be used as fire tools: a rake, axe, handsaw or chain saw, bucket and shovel.
  • Keep a ladder that will reach the roof.
  • Consider installing protective shutters or heavy fire-resistant drapes.

Plan your water needs

  • Identify and maintain an adequate outside water source such as a small pond, cistern, well, swimming pool, or hydrant.
  • Have a garden hose that is long enough to reach any area of the home and other structures on the property.
  • Install freeze-proof exterior water outlets on at least two sides of the home and near other structures on the property. Install additional outlets at least 50 feet from the home.
  • Consider obtaining a portable gasoline powered pump in case electrical power is cut off.

If you are warned that a wildfire is threatening your area, listen to your battery-operated radio for reports and evacuation information. Follow the instructions of local officials.

  • Back your car into the garage or park it in an open space facing the direction of escape. Shut doors and roll up windows. Leave the key in the ignition. Close garage windows and doors, but leave them unlocked. Disconnect automatic garage door openers.
  • Catch pets early, and make plans to care for your pets in case you must evacuate.
  • Arrange temporary housing at a friend or relative’s home outside the threatened area.
  • Know where you will meet if separated.

If advised to evacuate, do so immediately

  • Wear protective clothing – sturdy shoes, cotton or woolen clothing, long pants, a long-sleeved shirt, gloves, and a handkerchief to protect your face.
  • Take your 3 day Disaster Supplies Kit.
  • Lock your home.
  • Leave word with someone when you left and where you are going.
  • Choose a route away from fire hazards. Watch for changes in the speed and direction of fire and smoke.

If it is safe to do so, protect your home

  • Close windows, vents, doors, blinds, or noncombustible window coverings and heavy drapes. Take down lightweight curtains.
  • Shut off all utilities.
  • Open fireplace damper. Close fireplace screens.
  • Move flammable furniture into the center of rooms, away from windows and sliding glass doors.
  • Turn on a light in each room to so firefighters can see your home through the thick smoke.
  • Seal attic and ground vents with precut noncombustible coverings.
  • Turn off propane tanks.
  • Place combustible patio furniture inside.
  • Connect the garden hoses to outside taps.
  • Set up a portable gasoline-powered pump.
  • Place lawn sprinklers on the roof and near aboveground fuel tanks. Wetting the roof may help.
  • Wet or remove shrubs within 15 feet of the home.
  • Gather fire tools.

Emergency Supplies
Assemble a Disaster Supplies Kit well in advance of fire season. Store in sturdy, easy-to-carry containers such as backpacks, duffle bags, or trash containers.
Include:

  • A three-day supply of water (one gallon per person and per pet per day) and food that won’t spoil.
  • One change of clothing and footwear per person and one blanket or sleeping bag per person.
  • A first aid kit that includes your family’s medications.
  • Emergency tools including a battery-powered radio, flashlight, and plenty of extra batteries.
  • An extra set of car keys and a credit card, cash, or traveler’s checks.
  • Sanitation supplies.
  • Special items for infant, elderly, or disabled family members.
  • An extra pair of eye-glasses.
  • Keep important family documents in a waterproof container. Assemble a smaller version of your kit to keep in the trunk of your car.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

 

Join the forum discussion on this post - (1) Posts
Posted in HomeOwners Insurance | Tagged , , | Leave a comment