SPRING SEASON INSURANCE TOPICS

By Alan Plafker, PRESIDENT & CEO
Member Brokerage Service LLC
A Melrose Credit Union Service Organization

Flooding: It can happen to you

When the snow melts and the spring thaw begins, winter run off, heavy rains and water backup due to over loaded drainage systems can cause thousands of dollars in damages to homes. Unfortunately, too many homeowners find out too late that their homeowners insurance policy does not cover flooding.

Homes in high risk flood areas are not the only ones who need flood insurance. Approximately one in four of all flood disasters occur in areas with low to moderate risk of flooding. An important fact to remember is that flooding can occur in any place at any time.

The National Flood Insurance Program offers flood insurance at federally subsidized low rates. Call your independent insurance agency now to determine if you need flood insurance. Don’t wait until the next storm warning because there is a 30 day waiting period between the time the flood insurance is purchased and the time the coverage goes into effect. Make sure you’re covered in time. Don’t put it off - call your agent today.

Considering a summer home? Find the right insurance

When the temperature heats up do you long for relaxation in a sunny beach haven? Thinking about investing in a seaside retreat to spend your summer months? If you are considering purchasing a vacation home make sure to keep insurance in mind before buying beach towels and sunscreen.

Insuring your summer getaway can be a tricky and costly proposition. A second home is deemed a bigger risk by insurers than a year round residence for reasons that often are the same factors that make the property so appealing:

• secluded, far away locations (without easy access to fire departments); or
  
• coastal, beach communities (at high risk for flooding).
  
  

Also, second homes often sit empty for a large part of the year increasing their odds of a break in. As a result, it is important to think about insurance for your second home early before closing on a property. Avoid complications. Take the following steps to help you make an informed, practical decision.

Do your research: Work with your independent insurance agent to consult your primary insurance company about covering your second home. You may be eligible for a significant discount if you choose one company for all of your insurance needs. If your company does not offer coverage on your vacation home your agent will search the available markets for you.

Obtain liability coverage: Will you rent your property out during parts of the year? Securing property liability coverage is a must, and it will protect your assets in the event of a lawsuit. Consider your total net worth when choosing a limit and investigate the benefits of a personal umbrella policy.

Add security features: Fitting your second home with an alarm system and window locks can make finding coverage easier. Security in and around your home is perceived by insurers as reducing the risk of the property being targeted by thieves.

Purchasing a home in a neighborhood watch area or hiring a house sitter to check in on a regular basis can help reduce your insurance quote. Also, if your vacation home includes a swimming pool be sure to protect it with a fence and locked gate. Without these safeguards you are unlikely to find a policy with any insurance company.

Update your coverage: If you make any improvements to your second home be sure to call your agent. Whether you decide to build a deck, add a bathroom or even purchase new sporting equipment, it is a good idea to review your policy and ensure you have the needed coverage.

If you plan to purchase a second home, contact your agency to discuss your insurance needs. It can help you find the best protection for your vacation home.

If you build your own home you need to manage the risks (NY)

Building your own home can leave you open to three major risks.

• Property risk—this typically is handled with an Inland Marine Builders Risk policy, but a dwelling or homeowners policy also could be used.
  
  
• General liability risk—which can be covered with a personal or commercial insurance policy depending on the circumstances.
  
  
• Workers’ compensation risk—which requires an insurance policy to be in compliance with New York state law.
  
  

Since significant penalties and sanctions exist if uninsured for workers’ compensation rissk it is too important to overlook. Even if no one gets hurt on your building site the fines could add thousands of dollars to the cost of your home. Fortunately, you won’t be able to overlook this risk easily since you are required to provide proof of workers’ compensation insurance when you get a building permit or file a BP-1 affidavit (your agent will provide you with this form) to show that workers’ compensation insurance is not required.

If you must obtain a workers’ compensation policy you probably will have to purchase it from the New York State Insurance Fund. The NYSIF has very strict audit requirements which impact the premium you pay.

Your NYSIF policy will charge a premium for every individual or contractor you hire unless they can provide valid proof that they are insured, or they can prove they are not subject to the law.

The NYSIF tends to hold the homeowner responsible for verifying the authenticity of a contractor’s insurance certificate. If the certificate is a phony homeowners must pay premiums on their own policies which could be thousands of dollars to make up for the contractor’s failure to provide the required insurance.

Property, liability and workers’ compensation risks also arise when you make alterations, additions and renovations to your home. Because of the insurance implications for construction we recommend that you call us well in advance of your start date so we can help you manage the risks

Trampolines: Are they covered by your homeowners insurance policy?

Not necessarily. If you purchase a trampoline and someone is injured on it, your homeowners insurance policy may not cover the incident. This could leave you with expensive medical bills and, possibly, lawsuit expenses which you will have to pay out of your own pocket.

Trampoline injuries, which usually include sprains and fractures but can be as serious as paralysis and death, are one of the leading causes of emergency room trips in the United States each year. The dangerous nature of these devices can cause your insurance company to increase your insurance rates or to cancel your homeowners policy all together.

Play it safe. If you have a trampoline at home:

• never let a child on it without adult supervision;
  
  
• only let one person jump on the device at one time;
  
  
• have designated spotters;
  
  
• make sure all the metal on the trampoline is covered with padding; and
  
  
• make sure to remove any ladders when the trampoline is not being used to prevent unauthorized use.

If you are thinking about purchasing a trampoline give your agent a call. Your agent can walk you through all the options and scenarios before you make your final decision. If you’ve already purchased the trampoline give your agent a call as well. Your agent can make sure you have the proper coverage to protect yourself and those you allow on your trampoline.

Do you know what to expect when it comes to insurance?

• Coverage that suits your lifestyle.
  
  
• A policy that gives you choices.
  
  
• Service that consistently gets high marks. And,
  
  
• no surprises when it comes to reporting a claim.

When it comes to protecting your home and your assets, your insurance agency offers the most appropriate coverage at the best cost for you.

Your independent insurance agent believes you value the knowledge and service he or she can provide in protecting your home, automobiles and businesses. Their expertise has a reputation for satisfying policyholders’ needs and they will continue to meet that expectation.

We encourage you to contact a professional independent agent for any insurance needs or concerns. They are always here to help.

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 on the Board of Directors the PIANY (Professional Insurance Agents Association of NY) and on the Board of CIBGNY (Council of Insurance Brokers of Greater NY). 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.

© 2015 TLC Magazine Online, Inc.