WINTER SEASON AND CURRENT INSURANCE TOPICS

by Alan Plafker, PRESIDENT & CEO Member Brokerage Service LLC

A Melrose Credit Union Service Organization

The importance of windstorm coverage

The Northeast may not be quite the hurricane alley that the Gulf coast is but, hurricanes in particular and windstorms in general, are a real threat to homeowners all along the eastern seaboard. Between expanded coastal development and a troubling increase in damaging storms it’s a danger that shows no sign of slacking.

Inland households are not immune to the risk either. A middling hurricane has a good, long reach and, don’t forget, even a modest thunderstorm can cause significant wind damage.

Fortunately, damage from windstorms is covered by all the standard homeowners policies. Even so, there are some deductible quirks of which you should be aware. You see, insurance companies see the same trends we do. So, to reduce the effect of increased losses from natural disasters such as windstorms many insurers have begun selling policies with a percentage deductible instead of a hard-and-fast dollar amount deductible.

According to the Insurance Information Institute the insurance industry’s authoritative information source:

“With a policy that has a $500 standard deductible, for example, the policyholder must pay the first $500 of the claim out of pocket. But percentage deductibles are based on the home's insured value. So, if a house is insured for $100,000 and has a 2 percent deductible, the first $2,000 of a claim must be paid out of the policyholder’s pocket.”

As you can see, the precise deductible language of your policy can mean a good $1,000+ difference in a claim. And, of course, each state regulator has issued different guidelines for windstorm damage deductibles. Be sure to check in with your agent. They can help you understand the coverage you have, and make a change if it is needed.

The weather outside if frightful

Roasting chestnuts, trimming trees and sleigh rides to grandmother’s house—all images of a peaceful holiday season. But, with the holiday season also comes the hardships of winter— the bone chilling wind, mind numbing cold and, yes, upwards of 40 inches of snow in the Northeast. So, taking a minute from putting the final touches on Frosty we have to ask ourselves: What is my disability insurance situation?

Is that a season downer, a burned out bulb on the string of lights of life? It certainly is. The fact is, study after study shows most Americans are more prepared for their own death than the reality of long or short-term disability. To attach numbers to this disaster in waiting, nearly 50 percent of all home foreclosures are caused by unforeseen disabilities. In these financial times toying with lack of disability insurance is not the holiday surprise your family is looking forward to.

Millions of Americans throw their backs out shoveling snow, and thousands break bones every winter after slipping on ice. What has been looked at as a chore (or perhaps even a family outdoor event) has never been so dangerous to your financial situation.

Disability insurance protects your most important asset— your ability to earn income. Call your professional insurance agent today and review your current long and short-term disability insurance. Stay warm by the fire this winter because you want to, not because you have to.

Don’t be left out in the cold when it comes to your holiday gifts

New holiday treasures might need coverage

Once you have unwrapped all the holiday packages it will be up to you to protect your items. Do this by updating your household inventory to include the new electronics, jewelry, sports equipment and other big ticket items you may have received. And, before you send off your thank you notes, take pictures; record any serial numbers and store them both in a safe place—like a fire proof lock box or in your safe deposit box at your bank.

Most importantly, give us a call to make sure you have the proper coverage on your homeowners or renters insurance policy. Remember some items, such as fur coats, fine art and jewelry are not covered under a basic insurance policy and require an umbrella policy to protect your valuables if they are lost, damaged or stolen.

Divorce and Insurance

Do you know the effect of divorce on your insurance? Divorce is an unfortunate reality for many people. While couples face the difficult task of separating emotionally and financially the insurance implications of ending a marriage also must be considered.

Health insurance: When one spouse has been providing family health insurance coverage throughout the marriage the other spouse no longer can be covered following a divorce. These individuals are eligible for COBRA which extends employer coverage to those who have divorced for up to 36 months. Children can be covered either by you or your exspouse’s insurance provider or both.

Auto insurance: Notify your agent of changes in household drivers, amount of driving that will be done and the address where a vehicle will primarily be garaged. These details may have an effect on your premium; and may lead to gaps in your protection.

Life insurance: You may think your need for life insurance has lessened now that you are single. However, when children are involved, life insurance is essential to protect their future economic stability should something happen to you. Consider keeping or purchasing a policy on the parent who has the primary responsibility for raising the children. Additionally, if one spouse is providing alimony or child support, life insurance prevents a loss of income should he or she die.

Homeowners insurance: Inform your agent of a change in residence and property that is covered. Once again, gaps in protection may occur if the policy is not adjusted to the household separation.

The key to reducing your anxiety during this stressful time is communication. Call your professional insurance agent today to review your policies and determine what changes need to be made.

Watch for your annual flood insurance reminder-NY

Starting this fall, New Yorkers who own homes and condominiums will get an annual reminder about flood insurance.
Watch for this information each year when your insurance policy renews.

If you don’t already have flood insurance you’ll get a regular opportunity to consider this additional protection. Remember, your homeowners insurance policy doesn’t cover you if your home or its contents are damaged by flooding. People don’t have to live on a riverbank to be a victim of “flooding.” Throughout the Northeast in recent years homes have been flooded in spots where their owners never expected to have a problem. Flooding damaged widespread areas of New York State. These disasters led state lawmakers to require the new annual reminder.

For many people, their home is their biggest asset. They wouldn’t think of not insuring its value. But lack of flood protection can be a major gap in their planning. There’s a reason why mortgage lenders often require flood insurance to stay in place till the home is paid off.

Many types of water related damage aren’t covered by the homeowners policy. Can you afford to go without this protection? Your agent can tell you what your flooding risk is and what various coverage options would cost.

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.

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