SPRING SEASON INSURANCE CONCERNS

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

This past winter's weather may still be causing a flood of concerns

People in high risk flood areas are not the only ones who need flood insurance. In fact, approximately 25 percent of all flood insurance claims come from areas that are not considered high risk. Winter run off, heavy rains and water backup from overlooked drainage systems can cause thousands of dollars in damages to homes. Flooding can happen any place at any time.

Unfortunately, too many people find out too late that flood damage is not typically covered by homeowners insurance. Only a flood insurance policy will protect homeowners from costly flood damage. A 30 day waiting period exists between the time the flood insurance is purchased and the time the coverage goes into effect. Waiting until the next storm warning to purchase flood insurance is dangerous since coverage probably will not begin in time.

The National Flood Insurance Plan offers flood insurance at federally subsidized, premium rates which your insurance agent may be able to help you purchase. Contact your agency to get the coverage you need to protect your family from the devastation flooding can cause.

Windstorm reminder

June 1 – Nov. 30 is hurricane season. Although the Northeast may not be quite the Hurricane Mecca that the Gulf coast is, hurricanes and windstorms are still a real threat to homeowners along the eastern seaboard. A home near the coast typically has a higher deductible for windstorm loss than for other causes of loss such as fire or theft. Inland households are not immune to the risk either. A hurricane can have a good, long reach and don't forget, even a thunderstorm can cause significant wind damage. The deductible applies to each windstorm or hurricane that causes damage.

Although damage from windstorms is covered by all standard homeowners policies, insurance agencies don't want a windstorm to be the moment you decide to check your homeowners policy. We would rather you knew in advance. So, please, if you aren't sure what your deductible is, contact your agent.

Tips for keeping your homeowners insurance costs down

People are always looking for ways to cut expenses, especially in today's economy. Following are a few suggestions for consumers to save on their homeowners premiums.

• Re-evaluate coverage amounts. Many policies have inflation protection that automatically increases your coverage amounts. This was needed in the years leading up to the crash, but today it should be looked at more closely.
  
  
  
• Small claims can become expensive. Homeowners should have the highest deductible they can comfortably afford and should repair minor items out of pocket rather than filing a claim. Filing a claim for every broken window can increase premiums 10 percent or more.
  
  
  
• Check your credit report. Insurance companies check credit history before figuring rates. This is done to help them assess the payment risk and individual policyholder responsibility.
  

Finally, call a professional, independent agency, They have access to several different companies. Let them shop around for you to find the best price for the best coverage to fit your homeowners needs.

College graduates: Keep yourself covered

Young adults must make a number of adjustments when they graduate from college and enter "the real world." One of the more abrupt changes concerns health insurance coverage. It's not easy to land a job with full health benefits straight out of college so contingency plans must be made.

A common justification from young people for going without coverage is that youth is on their side. Contrary to that popular misconception, the U.S. Department of Health and Human Services says "one in six young adults have a chronic illness like cancer, diabetes or asthma. Nearly half of uninsured young adults report problems paying medical bills." In addition, more and more people rely on prescription drugs to stay healthy. And, there's always the risk of an accident—anything from a car crash to a simple slip and fall can result in serious medical problems.

Many graduates take health coverage for granted since they've always been included on their parents' policies. However, some insurance companies will not allow parents to include their grown children on their policies if they are no longer students. Other insurers tie termination to when the child turns a specific age. Parents should check their policies to see which is the case. Some states have laws preventing insurers from dropping grown children younger than a certain age from their parents' coverage. You should check with the state insurance department for the laws concerning this issue in your state.

• Some policies contain a loophole for "students." If a dependent child can be classified as a full time student he or she can still receive coverage on their parents' policy. So, if the graduate is planning to begin a graduate program coverage sometimes can be retained.
  
  
  
• Another way for recent graduates to ensure continued coverage is by signing up for Consolidated Omnibus Budget Reconciliation Act benefits. The COBRA law allows graduates to continue their existing health coverage for up to 36 months. More information can be found on the COBRA website: www.dol.gov/dol/topic/health-plans/cobra.htm.
  
  
  
• Student health insurance is another option available to most full time students. This type of coverage may continue after graduation, but often the policy must be written within a certain period before commencement. Check with specific companies for their requirements.
  
  
  
• Short term health insurance may also be available as well. This temporary coverage can provide a safety net to those who need to span a short period. Neither student nor short term coverage is ideal. There are gaps in these types of coverage. With short term coverage, if an accident renders you in need of ongoing care, the policy can expire after six months or a year leaving you with hefty expenses.
  

With a little research you can find the best fit for you and your family. And, as always, your professional, independent insurance agent can help you along the way.

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 Treasurer 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.