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Keep Your Place to Play Safe and Secure  

The whole point of a second home, be it a summer vacation retreat or a winter snow-birding destination, is to provide an escape from day-to-day worries, a place to recharge and have fun. But, of course, owning property is never all fun and games. And, when it comes to protecting your investment, seasonal homes can pose unique challenges. Challenges you’ll want to address through some careful insurance choices.

What’s Different About Insuring a Second Home?

You’ll need a separate homeowners policy for your seasonal home, and it might look a little different from your primary homeowners policy. Here are three reasons why:

1. Coverage: Different carriers cover second homes in different ways. Some offer the same broad coverage as a primary home policy – be sure to note any exclusions your policy outlines. Others cover second homes on a “named perils” basis, under which the home is covered only for events such as lightning damage, an explosion, theft or smoke damage that are specifically called out in the policy. The type of policy you want may impact the carrier you choose.  
2. Occupancy: By definition, your second home is likely to be unoccupied for much of the year. That could mean an increased risk of burglary, and no one around to report it. Same with the threat of fires or leaks.  
3. Location: The very thing that makes your getaway spot so appealing can also make it a bigger risk. Waterfront sites could be susceptible to flood damage, for example. Isolated, rural spots could be hard for police or fire agencies to reach in case of an emergency.

Issues like these will impact how much you pay to insure a second home, as well as the type of coverage your carrier is willing to provide. Plus, there are additional insurance considerations for your vacation home:

• Personal Property: You’re certain to keep your vacation home stocked with a few necessities, whether sun loungers or snowboards, to help you enjoy your stay. And, you'll certainly want to cover as much of it as possible under your vacation home policy. So, create a separate home inventory for your second home and update it as you add new belongings. Knowing the value of your things helps you select an appropriate level of personal property coverage on your policy.
• Flood Insurance: If the home is near the water, you’ll want to look into a flood insurance policy. Standard homeowners policies do not cover flood damage.
• Umbrella Coverage: Umbrella policies give you extended liability coverage for a relatively low cost. This can be one of the most economical ways to guard against unforeseen expenses, such as a lawsuit resulting from an injury on your property. And, one umbrella policy could cover you at your primary home, your secondary home and wherever you may go.
• Remodels: Is your getaway home a work in progress? Do you plan to add a pool or a new fence? With each change, be sure to check in with your insurance agent to help ensure your policy is keeping pace with your property.
• Discounts: Features such as burglar alarms and sprinkler systems do more than help keep your home secure. They may help you save on your seasonal home insurance policy. You many find other ways to save, too, such as choosing a higher deductible or paying your entire premium at once.
• Home Sharing: Making your seasonal home available to renters is an attractive way to generate some extra income while you’re not using it. However, your insurance carrier may not cover damage caused while the home is rented out. Before you list your vacation home for rent, be sure you understand whether or not you’re covered and purchase additional coverage, as needed.

Many of us aspire to own a vacation home. If you’re thinking about taking that step, or you already have, be sure to talk through your insurance options with an independent insurance agent. Then take some quality time to enjoy your seasonal home. You deserve it!

Safety Tips for Driving in Heavy Rain and Flood Conditions  

It’s just rain — how much impact can it really have on your driving?

The answer: a lot. You’re likely to experience lower visibility, reduced traction and increased difficulty in handling your car both during and after a rainstorm.  Add flooding to the mix and suddenly things get much more challenging – and dangerous.

In fact, more than half of flood-related drownings are due to people driving into floodwaters, according to the Centers for Disease Control and Prevention.  So, never, ever do it. As little as 12 inches of rushing water can carry away a small car, and 24 inches can carry away most any vehicle, according to the National Weather Service, which emphasizes “Turn Around, Don’t Drown” when it comes to both walking and driving into floodwaters.

So, what about when the roads are wet but passable? From the rainy northwest, the Oregon Department of Transportation (ODOT) offers these tips for a safer approach to wet weather driving:

1. Turn on your lights. Rain (and the spray from other vehicles) can significantly lower visibility. Make it easier for other drivers to see you.
2. Slow down. It’s easy to lose control and hydroplane on wet roads, especially at speeds of about 35 mph or higher. Hydroplaning occurs when your front tires ride on a film of water instead of actually being in contact with the road. If it happens, ODOT recommends taking the following measures: “Ease off the gas, gently apply the brakes and steer straight ahead.” You’re also at risk of splashing water into the engine and stalling it when you drive at high speeds.
3. Give people more room, and don’t use cruise control. You won’t be able to stop as quickly when the roads are wet — cars need two to three times more stopping distance.
4. Expect things to be slick, especially if it hasn’t rained for a while. When a fresh rain mixes with engine oil and grease on the road, the combination can produce exceptionally slippery surfaces.
5. Make sure tires have proper inflation and adequate tread. Both over- and under-inflated tires are dangerous even in normal conditions. As for checking the tread, use the penny test: Insert a penny into the tread with Lincoln’s head upside down. If you see his entire head, it’s time for new tires.
6. Keep up with general car maintenance. Make sure your wipers are functioning and that you replace the blades regularly. Also check your defroster, especially if you don’t use it often.

Remember, driving safely in inclement weather requires caution and patience. Give yourself more time to get where you’re going. If conditions are truly unsafe, pull over to a safe place (or stay home if you can). And, finally, don’t be caught with inadequate insurance coverage, either. Wet conditions make accidents more likely, so before you head out into the storm, make sure you have the coverage you want.

How Your Home Insurance May Cover You for Water Damage

Four-year-olds, they do the darndest things, such as stuffing tissue down the sink in the guest bathroom (true story). And, if it’s not something happening inside your home, it’s something happening outside, such as water pooling in your yard, coming right up to your back door, because your neighbor doesn’t have a proper drainage system (also true).

These are just two instances that can lead to water damage in your home. Then there’s flooding, sewer backup, burst pipes and more. So, when does your home insurance cover water damage? And, when doesn’t it? It all depends on your specific policy and the optional coverages you add to it.

Take the four-year-old playing in the bathroom. The sink overflowed, causing extensive damage to the walls and floors – $8,000 in all. Was it covered? Yes, but only because the family elected to add Backup of Water and Sewer when they purchased their home insurance policy. As such, the carrier reimbursed them for the repairs they made. Whew, crisis averted.

And, what about the flooded back yard?  Not covered.  The claim was denied because it was considered flooding of surface water, which is excluded from the typical homeowners policy.

In fact, home insurance typically has coverage exclusions for many types of water-related incidents, including floods, tidal waves, tsunamis and more.  In addition, backup of water from sewer or drains, overflow or discharge from a sump pump and water below the surface of the ground is not covered on a standard policy.

I know you're probably thinking, "What coverage do I have?"  A typical homeowners policy may include coverage for water damage resulting from leaking, burst or broken pipes.  The actual pipe or line that leaked, burst or broke isn't covered.  The water damage that ensues is.  Furthermore, if your home was built in the past 10 years and you discover faulty work, you may be able to get restitution from the builder (contractor/plumber) if he/she was licensed and bonded.

So, what about other types of water damage? You may want to consider some optional coverages or a supplementary policy to help. Backup of Water and Sewer / Overflow of Sump Pump is an optional coverage you can purchase along with your policy or add to an existing policy. This often provides anywhere from $5,000 to $50,000 of coverage or more, depending on what’s available from your carrier and what you select. The coverage typically applies to pipes and drains on the property and/or inside the house, including in the walls.

Flood insurance (available as a separate policy) adds yet another layer of protection. It’s highly recommended for those in flood-prone areas. But, a flood policy may be suitable even if you aren't in such an area, as it covers surface water runoff as well.  (Under this type of policy, the water damage resulting from the flooded back yard would likely have been covered).

If you're not sure whether or not you have coverage for these and other incidents, contact your independent insurance agent.  Ask to review your existing coverage and go over additional coverage options that are available to you.

After all, there have been some surprising and not-so-surprising natural disasters in the past 10 years (not to mention incidents involving toddlers and neighbors) that have led to widespread water damage in homes. It wouldn’t hurt to get some reassurance.

More than half the country owns a home, but how many of us really understand what our home insurance covers?

From helping protect your favorite jewelry to helping keep your groceries cool and more, home insurance can come to your aid in some surprising ways – so long as you have the right coverage.

Let’s take a look at five scenarios you may not realize can benefit from having the right policy in place.

1. Updating the Electrical     One of the worst nightmares for a homeowner is the house burning down. Now imagine, while it’s being rebuilt, the city requiring you to install a modern electrical system. Construction codes change through the years, after all. Your insurance company may offer optional Ordinance or Law coverage to help with the additional expense of bringing the home up to code during such an incident. Why might this be necessary? Remember, your home policy covers the cost to repair what you have or replace what you had, not upgrade it.      
2. A Hotel in the Meantime     When most people think of home insurance, they think of coverage for their actual home. But, what happens when you can’t live in it during construction? Most policies will help you pay for a place to stay if the home is uninhabitable due to a covered incident. Known as Loss of Use, this coverage helps compensate you for the additional expenses of living elsewhere and may cover food as well as lodging.      
3. Refrigerator Meltdown     Something unexpected go wrong with your chill box? Many insurance carriers offer Equipment Breakdown coverage as an option with your home insurance policy. This kicks in when an appliance, such as a refrigerator, has an unexpected mechanical or electrical breakdown and covers the cost to repair or replace it. But, that’s not all. Related costs, such as spoiled food and energy efficiency upgrades, may be covered, too. For only a few dollars a month, it’s a nice alternative to extended warranties for a range of products, including washers and dryers, ovens, electrical service panels, water heaters, computer equipment, heating and A/C systems and much more.      
4. Stolen Identity     Without going entirely off the grid, the potential for identity theft is nearly unavoidable. Identity Recovery is offered as an option with most homeowners policies and provides valuable tools to help pick up the pieces after your identity has been stolen. This can include use of a case manager to assist in recovery and reimbursement of some expenses related to your efforts. While anti-virus software and personal firewalls should still be maintained, this coverage can help with peace-of-mind in case security measures fail.      
5. Lost Engagement Ring     The engagement ring was sitting right on the dresser before you left for the gym, but now it’s nowhere to be found. Many people are shocked to realize that their homeowners policy may limit the payout for certain items, such as jewelry. So, while your engagement ring may be worth $3,500, your personal property coverage may limit payouts for jewelry to $2,500 per loss. However, if you added Scheduled Personal Property specifically to cover the engagement ring, the day will be saved. For high-value items like artwork, jewelry and more, scheduling them separately is your best bet. Then you know you have coverage for each item, rather than lumping them all together under your standard personal property coverage. Even better, unless otherwise stated, there is no deductible for scheduled items.

As you can see, a homeowners policy can cover a lot more than just the home! To make sure you have the coverage you want, read your policy carefully and contact your independent agent for help understanding all your options.