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You know your homeowners insurance protects you if fire damages your home or burglars make off with your valuables. But, did you know the typical homeowners policy also includes liability coverage?
Depending on the specifics of your policy, liability coverage typically provides:
- Coverage against the cost of lawsuits for damages that were caused by you, by family members or by your pets.
- Assistance when you injure other people or damage their property.
- Medical coverage for visitors injured in your home.
So, how does that apply in real life? Take a look at these possible — but we hope improbable — holiday scenarios and the most likely coverage outcome for each. Of course, these are only theoretical situations. Every claim will require a full investigation, and coverage can only be determined based on the specifics of the loss.
- Negligent Nephew - As a responsible host, you keep an eye on who dips into the eggnog at your party. But you miss your 22-year-old nephew’s second and then third visits to the punchbowl. At the end of the night, as he backs out of your driveway, he injures a passing caroler. That caroler later sues you as a responsible party. In this case, the liability coverage on your homeowners policy would likely provide a defense for you, but probably not the nephew. After all, he’s not a member of your household or under your legal guardianship.
- Clumsy Daughter - Your young daughter is fascinated by the glass sculpture at your boss’s holiday get-together. She wonders what it feels like … oops! Crash! Your daughter may not be negligent, due to her age, but you could be. In that case, the damage may be covered under Property Damage to Others, if you have that on your policy.
- Aggressive Shopper - You’re normally calm and courteous, but that changes when you see there’s only one video game system left at 75 percent off. You don’t remember throwing that elbow, but the store’s security cameras see it differently. Now you’re being sued for the broken arm the other shopper sustained in her fall. This could be seen as an intentional act and therefore may not be covered. Liability coverage, after all, is for accidents.
- Decorating Dynamo - You’ve designed a rooftop lighting display that will be the envy of the whole neighborhood. But, while carrying Santa up to the top, you slip off the ladder and break your leg. Don’t expect your homeowners policy to cover injuries to you. Your liability coverage is for injuries to others. This accident falls to your health insurance.
- Auntie’s Ankle - Finally, your Aunt Marge visits your home for the holidays. In the excitement of her arrival, the rug in the entryway gets rumpled. Aunt Marge stumbles and breaks her ankle. It’s likely your liability coverage would go toward her medical expenses. However, say Aunt Marge tripped on a rug in a banquet hall you rented instead. In that case, her medical expenses are more likely to be covered by the banquet hall’s policy, not yours.
Now it’s time to review your own policy. You might be covered for $100,000 in liability costs, a fairly standard amount. Or perhaps you’re covered for $500,000. How much is enough?
The Insurance Information Institute recommends having enough liability insurance to help protect your assets. Is the liability limit on your policy more than the combined value of your property, investments and savings? If not, you may want to increase it. Talk to an independent insurance agent to better understand your options.
The 2016 holiday season is upon us and as we enter this time of holiday cheer focused on family and great food, we want to give you a quick reminder to stay safe while you are out shopping for the holidays. The National Crime Prevention Council has great tips to help you shop safely while getting those great holiday bargains on Black Friday. Here are some savvy safety tips to remember:
Shopping in Stores
- Do not buy more than you can carry. Plan ahead by taking a friend with you or asking a store employee to help you carry your packages to the car.
- Save all receipts. Print and save all confirmations from your online purchases. Start a file folder to keep all receipts together and to help you verify credit card or bank statements as they come in.
- Don’t flash the cash. Consider alternate options to pay for your merchandise, such as onetime or multi-use disposable credit cards or money orders, including at online stores.
- Wait until asked by a cashier before taking out your credit card or checkbook. An enterprising thief would love to shoulder surf to get your account information.
Walking to and From Your Car
- Be informed about your surroundings. Use the free mobile app available from AlertID™ to receive alerts about registered sex offenders living and working in the vicinity of your shopping venue.
- Deter pickpockets. Carry your purse close to your body or your wallet inside a coat or front trouser pocket.
- Have your keys in hand when approaching your vehicle. Check the back seat and around the car before getting in.
- Tell a security guard or store employee if you see an unattended bag or package. The same applies if you are using mass transit.
- Do not leave packages visible in your car. Lock them in the trunk, or if possible, take them directly home.
Shopping With Small Children
- If you are shopping with children, make a plan in case you are separated from each other.
- Select a central meeting place.
- Teach them to know they can ask mall personnel or store security employees if they need help.
- Have them memorize or keep your cell phone number handy.
- Keep up-to-date photos and accurate descriptions of each child electronically with AlertID’s My Family Wallet™. Should they go missing, this information can be sent quickly to law enforcement when every moment counts.
Shopping Online
- Before surfing the Internet, secure your personal computers by updating your security software. Everyone’s computer should have anti-virus, anti-spyware and anti-spam software, as well as a good firewall installed.
- Keep your personal information private and your password secure. Do not respond to requests to “verify” your password or credit card information unless you initiated the contact. Legitimate businesses will not contact you in this manner.
- Beware of “bargains” from companies with whom you are unfamiliar — if it sounds too good to be true, it probably is!
- Use secure websites for purchases. Look for the icon of a locked padlock at the bottom of the screen or “https” in the URL address.
- Shop with companies you know and trust. Check for background information if you plan to buy from a new or unfamiliar company.
- To avoid purchasing counterfeit products, carefully examine the products you want to buy for signs of missing information (manufacturing information, warranty, product codes, etc.), broken or missing safety seals, different or incomplete packaging, and subtle or obvious changes to a company logo.
Help Minimize the Need for Costly Auto Repairs Simply by the Way You Drive
No matter how safe you are behind the wheel, you’ve probably done things like:
- Shift into drive while the car is still rolling backward.
- Ride the brakes on steep hills.
- Roll into the gas station on empty.
Guilty? If so, you may not have even realized you were doing anything wrong. After all, most everybody has a bad driving habit or two. But, most everybody doesn’t have to pay for your auto repairs. You do.
So, take a look at these seven driving habits that are bad for your car and learn why you should avoid them. It may be time to change the way you drive!
- Running on empty. You might enjoy living on the edge, but driving around without much gas can put your car’s fuel pump on edge, too. That won’t necessarily ruin your car, but having to replace your fuel pump probably will hurt your checkbook. Keep your tank at least a quarter full.
- Shifting too soon. If you have an automatic transmission, it’s easy to pop the car into drive while it’s still rolling in reverse. Don’t! Unless you want to put additional stress on your transmission, that is. Come to a stop, then shift.
- Braking too much. Following other cars too closely can wear your brakes and rotors out more quickly, because you’ll probably have to use them more than other drivers. (Of course, you should maintain an adequate following distance for safety reasons, too.) But, even in situations where braking seems unavoidable, such as going down a steep hill, you have another option: Shifting into a lower gear will slow you down without riding the brakes.
- Gunning it. Maybe you drive a fast car. Or, maybe you want to feel like you drive a fast car. Whatever kind of car you have, punching the gas from a stop can be hard on it, even more so if the car is cold and the oil hasn’t fully dispersed throughout the engine. Those fast starts can mean faster wear on your tires, too.
- Forgetting the parking brake. Do you know what holds your car in park? One small piece of metal in the transmission. Not using the parking brake puts more stress on that bit of metal. So, use it.
- Packing on the pounds. Just like with your body, extra weight puts stress on several different areas of your car. So, clean out that trunk and remove unnecessary items from the interior. Your suspension, brakes and transmission will thank you. Thanks to better gas mileage, your bank account will, too.
- Holding down the clutch. Have a manual transmission? Keep the car in neutral at intersections so you don’t need to press the clutch until you’re ready to roll. Riding the clutch is a great way to burn it out eventually.
Even if you don’t do anything on this list, you’re still not out of the woods. (But you’re probably closer than most of us.) Keep your ears and eyes open for strange noises, warning lights or anything out of the ordinary — and don’t ignore them. Inspect the issue, or get your car to a mechanic, before it becomes a bigger problem.
Halloween is a scary holiday, but even the goriest costumes or darkest haunted houses aren’t as scary as the risks insureds need to protect themselves against, such as fire, distracted driving, vandalism and theft.
According to claims data from New York City-based Travelers Insurance, on average there are 24 percent more crime-related claims on Halloween than any other day of the year. Of those claims, 19 percent are related to vandalism and “malicious mischief,” 21 percent are off-premises theft (personal items such as a GPS or laptop left in a vehicle) and 60 percent are on-premises thefts.
Below are a few precautions homeowners can take to prevent having a claim this Halloween.
1. Watch out for trick-or-treaters: Be cautious while driving, as trick-or-treaters populate the streets at night. It’s important to avoid distractions and drive at a safe pace, especially while in populated neighborhoods with people out and about.
2. Stay alert when trick-or-treating: Like drivers, it’s important to stay alert when walking from house to house with trick-or-treaters. Encourage customers to talk to children about the importance of looking both ways before crossing the street. Trick-or-treaters should also carry a flashlight, wear reflective clothing if possible and avoid approaching homes that are dark.
3. Don’t make your home welcoming to thieves: To help prevent theft, homeowners shouldn’t let homes appear unoccupied. Homeowners should leave the lights and/or TV on in the home to give the impression that someone is there. Another tip is to let neighbors who may be home know the homeowners will be away, asking them to key an eye on the place. Homeowners should also avoid leaving spare keys anywhere outside the home.
4. Check your coverage and be prepared: In the even that there is a theft, encourage homeowners to be prepared. Homeowners should make sure they have the right type and amount of insurance coverage. Creating a home inventory can speed up the claim process.
5. Avoid fire hazards: Pumpkin carving might be a tradition, but using candles can be a major fire hazard. When it comes to decorating, use lights and other electrical decorations that have been tested for safety. Look for a certification mark from UL, CSA, ETL or another nationally recognized laboratory. Never staple, nail through or fasten electrical wires or extension cords and plug all outdoor lights and decorations into ground-fault circuit interrupters to help reduce the risk of electric shock.
6. Consider property risks: Homeowners should check the outside of their home to identify and minimize potential dangers, especially those difficult to see after dark. For example, check to make sure temporary extension cords are secured to avoid becoming a tripping hazard and walking surfaces are even, clear of debris and well lit.
7. Don’t let your haunted house come back to haunt you: Charging for admission for a haunted house can be considered a business activity. Let insureds know they should consult with their agent or insurance company representative to ensure they have the proper insurance coverage.
Why Discount Car Insurance May Cost a Lot More Than You Think
We all have a lot of demands on our wallets: Mortgages or rents, car payments, lessons for the kids, phone bills – and on and on. So, when it comes time to buy car insurance, it’s little wonder why so many people want to keep their costs down.
However, buying cheap car insurance – or minimal car insurance – today can set you up for a big financial hit tomorrow. Here are three hidden costs of cheap car insurance you’ll want to avoid:
- Paying out of pocket to cover your own injuries and vehicle repairs. Most states require you to carry liability insurance for property damage and bodily injury you may cause to others. And, that’s just it: The coverage is for other people’s repair bills and medical expenses, not your own. If you’re at fault for an accident, and you have chosen a liability-only policy, none of your own expenses related to the accident will be covered. You’ll have to cover them on your own. So, think twice before buying only enough car insurance to meet your state’s requirements. Yes, it will be cheaper than buying a more robust policy, but you’ll lack any coverage for yourself.
- Having your wages garnished to make up for inadequate liability coverage. Imagine you hit another car and the driver sustains a pretty bad head injury from the crash. She has to stay in the hospital for a week, and it looks like she is going to have some long term medical needs. A judge awards her a settlement of $150,000 for medical bills, mental and emotional anguish and loss of quality of life. Your auto liability limits, however, are exhausted at $50,000, so the judge garnishes your wages. You’ll have to hand over 40 percent of your income until the remaining $100,000 is paid. All of a sudden you don’t have enough money to meet your regular expenses, and you still have to address the damage to her vehicle and yours, too.
- Being denied coverage when you lend your car to a friend. Most carriers provide coverage for you, any listed household members who have access to your vehicle and any relatives or friends you allow to borrow your vehicle(s) occasionally. But, your discount auto policy may not. Such a policy may limit coverage only to you, the person named on the policy. If someone else is driving your car and causes an accident, you won’t receive any coverage for the incident. No coverage to help repair your vehicle, and no coverage to help pay for any damage or injuries that others involved in the accident sustain. You’ll have to pay it all out-of-pocket.
I know it’s tempting to determine what you can afford to pay for car insurance and then find a policy to match. But, as these examples illustrate, saving in the short term may actually cost you more in the long run. So, talk to your independent insurance agent before you settle for an auto policy that leaves you open to risk. Your independent agent can help you balance coverage and price to a point that feels comfortable to you.
