SPRING INSURANCE INSIGHTS

BY BY ALAN PLAFKER, PRESIDENT & CEO
MEMBER BROKERAGE SERVICE LLC
A MELROSE CREDIT UNION SERVICE ORGANIZATION



Does your policy cover damage from trees?

After Tropical Storms Irene and Lee battered the East Coast this past Fall many homeowners found themselves contacting their insurance agents for help with fallen trees.

According to the Insurance Information Institute, damage to the home, it’s contents and other structures on the property are covered. This is true regardless of whether the tree was on your property or your neighbor’s. However, you are responsible for the deductible. And if the storm that caused the damage is a named hurricane you may be responsible instead for the hurricane or windstorm deductible which often is much larger.

If the tree was your neighbor’s your insurer may contact the neighbor’s insurance company to cover the cost. If this happens you may be reimbursed for your deductible. If your tree damages a neighbor’s property they should file a claim with their insurer.

Homeowners insurance typically covers the costs of removing the tree or shrub that fell on an insured structure. There is generally a cap of $500-$1,000 per tree/shrub.

If the fallen tree doesn’t damage your home or other buildings but blocks a driveway or handicap ramp, your insurance may pay to have it removed. Otherwise, homeowners insurance won’t cover the tree removal unless your policy has an endorsement specifying that coverage.

It is important to note that there is no coverage for any damage directly resulting from a flood, surface water or water that backs up through sewers or drains caused by an act of nature. Call your agency for more information on coverage for these perils.

Prevention usually is the best preparation. If you have trees close to your home you may want to consider having them professionally pruned or even removed. Consider the cost of pruning cheaper than the cost of it coming down on your house. If your property is damaged, however, call your agent as soon as possible. If it is
safe to do so take steps to protect your property from further damage and theft by making emergency repairs. Keep receipts for anything you buy so you can submit them to the insurance company. Inventory all damaged property. Take pictures of the damage.

This information is only a general guideline for tree damage. Contact your agency for more answers and additional advice.

Avoid contractor fraud this Spring

Spring is the time when many people consider sprucing up their homes and property. However, before you hire the first contractor who knocks on your door offering to help with your projects there are a few things you should consider.

Before you do anything call your insurance agency. If you decide to make considerable alternations to your home or property they’ll need to review your policy to make sure you still have the coverage that is adequate for your needs.

Next, remember: Not all contractors are created equal. Be careful whom you hire and avoid being taken for a ride. If a contractor drives around your neighborhood or approaches you at home be dubious. Take your time to make a decision, especially if someone pressures you to make a quick decision about fixing something he or she pointed out to you around your home. And, be cautious if you can’t get a straight answer from the individual.

If someone refuses to take a check for the work, insists on a check made out to the individual rather than a company or wants too much money before the project starts—those are more warning flags.

Don’t forget to get a project estimate in writing, take the time to check references, or contact your local Better Business Bureau to verify the contractor’s work history and any possible complaints. Verify the contractor’s licenses and insurance.

When you hire a contractor ask for a certificate of liability naming you as an additional insured on his or her policy in case they cause damage or bodily injury to a third party. This will provide you with coverage through their policy should someone sue you for their negligence. Also, if the contractor has employees, ask for a certificate of workers’ compensation. That way injured employees are covered if they are hurt while working on your property.

Your Agent can answer the questions you have about your insurance policy and may be able to help you if you have questions about your potential contractor’s coverage. Give them a call before you start your next home project

Mowing others lawns

We all expect professional landscaping and lawn care businesses to carry insurance for the potential hazards of the job, but what about homeowners? It’s common for someone to mow the lawn of the elderly couple down the street every now and then as a good deed. Similarly, everyone knows an entrepreneurial child who goes door-to-door offering $5 or $10 a lawn. Risk and potential liability exists in these scenarios, too. It’s not just the professionals who can get sued.

Riding mowers are powerful machines that if steered off course can go so far as to damage a home’s foundation. Even a push or self propelled mower can damage landscaping work, plants and trees. Most seriously, improperly dislodging a stuck blade can cause severe lacerations or even amputate fingers or a hand. These and other unfortunate scenarios may be unlikely, but that doesn’t mean they never happen.

A standard homeowners program that many insurers offer was recently revised to include coverage for people who mow others’ lawns, but that is no guarantee that you have coverage. Insurers might opt to use an older edition homeowners policy or create their own.

If you or a member of your family often mow others’ lawns give your agent a call so he or she can go over your policy together. You might opt for more coverage, you might decide you don’t need it, or you might discover you’re covered already. What’s important is that you know where you stand.

Work zone ahead — drive safely!

While warm weather coaxes us out to travel, many municipalities also take the opportunity to improve road conditions and infrastructure. So, before you crank up the radio and speed to your destination remember the welfare of those working on the roads. Of course, safety is the most important issue, but you may be further persuaded by knowing that the penalties for speeding or committing other traffic violations while in a construction work zone are always more severe than for normal conditions.

Nearly all states have laws that increase the penalties for speeding or committing other traffic violations while in a construction work zone. If you are caught speeding in New York where a construction zone sign is posted you could be subject to an additional fine of $90 to $600, up to 30 days in jail or both regardless if workers are present or not. In New Jersey, when you see a construction zone sign posted, you can be sure all moving vehicle violations will result in double the original fine regardless if workers are present or not. In Connecticut, moving vehicle violations in a construction zone will result in double the original fine, but only if workers are present.

We don’t expect you need any further reason to take extra care in work zones, but we’d be remiss if we didn’t mention your insurance rates, too. Traffic violations, work zone or not, can result in an increase in your premium, and that’s never news we want our clients to receive. Make this season a good one. Drive safely!

Older drivers

We all know the stereotype of the older driver: eyes just peaking out over the steering wheel, feet stretching to reach the pedals, the vehicle swerving erratically in and out of the lane. The closer we get to retirement age and beyond the more exaggerations like this make us cringe. The truth is that while drivers 65 through 74 have average fatality rates per capita (which significantly increases after age 75), there is a dramatic increase in fatalities per miles driven.

As far as licensing goes, senior citizens have to meet the same safety requirements as any other driver. In some states, at certain ages, usually 65 or 70, older drivers must undergo regular testing of their ability to drive safely. However, according to the Insurance Institute for Highway Safety, Connecticut only requires drivers to select a two or six year renewal cycle once they reach age 65 though a personal appearance generally is required. Neither New Jersey nor New York have any special provisions for older drivers renewing their licenses.

As long as someone satisfies the state’s requirements and has a valid driver’s license he or she cannot legally be denied auto insurance. However, if an older insured has had any type of medical disability, a carrier could require a medical statement attesting that they are healthy enough to drive. Now, if a person’s driving record details an extensive history of accidents or serious traffic violations, an insurance company is within its rights to refuse coverage.

However, it’s more likely that older drivers will have factors working in their favor which could earn them premium discounts. For example, they typically drive fewer miles. Contrary to the stereotype, older drivers generally are defensive drivers, and not prone to aggressive behavior. They are more likely to observe speed limits and react correctly in risky traffic scenarios. However, longer reaction time, poor eyesight, diminished
cognitive skills, medications and other health issues can work against the older driver.

Whatever your age, please feel free to contact your independent agent and find the coverage you need at a price you can afford, and make sure you enjoy the freedom of the road as long as possible.

The benefits of using a professional independent agent

Everyone has heard a friend recount a nightmarish story about an 800 number insurance company they thought they'd save money with for 15 minutes of their time only to find they were never told what their policy did and didn’t cover until after they had a claim. A professional, independent insurance agency prides itself on its availability to clients. Professional, independent insurance agencies take a proactive approach to make sure each person receives and understands his or her insurance policy and, if a problem ever does occur, they are there to fix it as fast as possible.

The next time you hear a friend complain about his insurance refer him or her to a professional independent Insurance agency, and explain that there are some professionals in the insurance field who value customer satisfaction and attentive personal service. There's no greater compliment than your referral.

By using an independent insurance agent to purchase insurance, you—as the policyholder—will receive more personal service. An agent with whom you have direct contact can be vital when purchasing a product and absolutely necessary when filing a claim. Your local, independent agent is able to deliver quality insurance with competitive pricing and local personalized service.

Whether it's for your car, home, boat or any other special need you may have, they work with you to select the level of protection you need. Their staff of personal insurance specialists will help you choose programs designed to fit your goals, budget and lifestyle. Give them a call today!

For more information, talk to your financial professional, legal advisor, or the author of this article.

Your Professional Insurance Agent …
We want you to know about the insurance you’re buying.

Alan Plafker is President of Member Brokerage Service LLC, a Melrose Credit Union Service Organization. He is a licensed Insurance Broker and serves as Vice President on the Board of Directors the PIANY (Professional Insurance Agents Association of NY), serves on the Board of CIBGNY (Council of Insurance Brokers of Greater NY), and was appointed to the New York Independent Livery Driver Benefit Fund Board of Directors. His Agency insures thousands of polices for TLC Insurance as well as many policies for all types of insurance. You can reach him in his Briarwood, Queens office at (718) 523-1300 ext. 1082, or visit the website at: www.MemberBrokerage.com