AUTUMN SEASON INSURANCE ADVICE

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

It's important to call your agent when …..

• You replace your existing vehicle with a different one or add a new one.
  
  
  
• You make significant upgrades or changes to your home.
  
  
  
• Your student driver gets B or better grades or goes away to college.
  
  
  
• You purchase new artwork, jewelry, cameras or other high priced items.
  
  
  
• You get a new boat, jet ski, motorcycle or other recreational vehicle.
  
  
  
• You change your property ownership via trust or family status.
  

It would be impossible to list all of the items that can have an impact on your insurance. To make sure you are fully covered at all times do not hesitate to call your advisor who will be happy to make recommendations regarding your insurance coverage.

Why you need homeowners insurance

Chances are your home is one of your largest investments. If you are still paying for your home your lender will probably require that your home is fully insured. Even if you've paid off your mortgage you should have enough insurance to ensure you are protected financially if something unexpected happens to your home or possessions?

If your home were destroyed by fire or damaged by a natural disaster you'd need money to repair or replace it. If a guest in your home was injured you would be expected to help pay his or her expenses and you might well be sued. If you are the victim of theft or vandalism insurance can reimburse you for your loss or pay for repairs. And, if you are still paying for your home, your lender probably will require insurance.

While homeowners insurance is meant to cover unexpected damage and not routine maintenance, it's still one of the most important protections you need for yourself and your family. But everyone's needs are different.
This article only touches briefly on homeowners insurance. Be sure to read your policy thoroughly and call your agent to discuss what is covered and what is not. They will help assess your needs and find the insurance policy that is right for you and answer any questions you may have.

Renting power tools comes with responsibility

As the heat of summer recedes, fall invites homeowners to tackle a variety of tasks around their homes and yards: put up a fence, remove an old tree stump or chop firewood. In many cases a homeowner will make a trip to a local home improvement store for a tool to help with the job. The very power of such tools, along with the fact that the average homeowner uses them so infrequently, invites an examination of the related safety and insurance issues that go along with them.

In many cases, a person who rents a power tool has recourse under his or her homeowner's policy. However, the nature of these tools creates a greater degree of possible damage or a more expensive sort of damage such as digging into a buried fiber optic cable.

There are other considerations. When obtaining a power tool, a renter typically signs a rental agreement. This agreement may apportion liability for certain outcomes to the user. An agreement may state that the renter of a tool is strictly liable for all harms that befalls the tool as long as it is in the care, custody or control of the renter. The contract may limit the liability of the rental facility, the manufacturer or other parties. Because of these contractual limitations and the limited nature of coverage under a homeowners policy for this sort of loss, a tool renter actually may be liable and without adequate recourse in the event of damage to or the theft of a rented machine.

Because of the above listed considerations it is smart for the homeowner/renter of a piece of outdoor power equipment to periodically consult with his or her independent agent regarding the suitability of his or her insurance package.

Are your holiday gifts covered?

Yes and no. It depends. Generally, a homeowners or renters insurance policy covers personal property often subject to deductibles. However, many policies limit the amount of coverage or insurance they provide for personal computers, silverware, stamp or coin collections, fine art and jewelry. So, if your house or apartment is filled with expensive gifts just opened or waiting to be opened, you may want to consider additional coverage to make sure these gifts are repaired or replaced if something happens to them.

Call your agent and ask about personal property endorsements and floaters. With an endorsement you can specify a higher amount of coverage than under the standard homeowners policy. With a personal articles floater, items such as jewelry can be covered at full value based on current appraisal or the bill of sale with no deductible. Floaters also can cover broader causes of loss such as dropping a new ring down the drain.

Besides arranging endorsements or floaters a home inventory is a good idea to protect your property. Conduct a home inventory of all your possessions, and update this inventory whenever you make major purchases or receive gifts. Go over your insurance policy with your agent to be sure it provides coverage for the total value of items on your inventory. Keep receipts, serial numbers and dates of purchases for major items. Appraise jewelry and fine art at least every three years because they may change in value over time.

Alternative Heating Precautions

With the cost of heating oil rising and dipping temperatures homeowners in the Northeast who heat their homes with oil may be tempted to use alternative heating sources. If not used properly, heat sources such as space heaters, kerosene heaters, wood stoves etc., increase the risk of fire and carbon monoxide poisoning. Preventive efforts such as checking furnace flues, chimneys, and vents could help to alleviate the hazard. Have heating equipment and chimneys cleaned and inspected every year by a qualified professional. Use common sense in avoiding open flames, ovens and other appliances not intended for heating to reduce the number of carbon monoxide related incidents.

According to the National Fire Protection Association, home heating equipment is a leading cause of home fires during the winter months with half occurring during the months of December, January and February.

Alternative heating sources fires may be caused by:

• Creosote buildup, a flammable tar byproduct of wood smoke that builds up on the walls of a chimney or wood stove in wood burning devices, chimneys and connectors;
  
  
  
• Failing to give space heaters enough space;
  
  
  
• Fueling errors; and
  
  
  
• Improper installation.
  

These fires could be costly or even fatal. Have a qualified professional install your space heating equipment, water heaters or central heating equipment according to the local codes and manufacturer's instructions.

Make sure the fireplace has a sturdy screen to stop sparks from flying into the room. Test smoke/carbon monoxide alarms monthly.

Standard homeowners insurance and renters insurance policies cover damage caused by fire and smoke as well as water or other damage resulting from fire fighters working to extinguish the blaze. Before a fire or other disaster strikes, call your agent to make sure you have enough insurance coverage to completely rebuild your home and replace personal belongings.

Smartphone: Identity theft concerns

We've talked about identity theft before. It's still our fastest growing crime but, by now, most of us are aware of the danger. Generally, we are aware of the common sense precautions one can take to avoid identity theft:

• keep Social Security cards/numbers secure;
  
  
  
• use a credit card rather than a debit card when possible;
  
  
  
• check your credit report annually; etc.
  

However, there is a growing blind spot in our identity theft vigilance: smartphones. According to The Neilson Co., a tipping point is coming. Sometime in 2011, smartphones—iPhone, BlackBerry, Android phones, etc., will outnumber traditional feature phones.

Big deal, right? So a phone has apps; what does it matter? The problem is that these phones and their apps capture information about us. Think about passwords saved with Facebook or Google apps or the financial transactions we've made using our phones, logging onto our back account, making a credit card payment. Some phones even allow us to swipe our phones just like credit cards to pay for groceries or settle a bar tab.

Technology advancements are amazing, but they come faster than we can understand their full consequences. So, how about this? Think twice before providing any information on your smart phone that you wouldn't want to give the world.

Another way to protect yourself is to call your agent. Identity theft may be covered by insurance. Some companies include identity theft coverage as part of their homeowners insurance policy selling it either as a stand alone policy or as an endorsement to a homeowners or renters insurance policy. Your agent can make sure you're covered.

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