Original Fire Insurance Policy

Today when you receive your homeowner policy in the mail it comes as a thick packet usually about 40-50 pages in depth.  Each year the policy renews, you get a similar package delivered to you.  On and on this goes until you sell your current house and then get another.  Once again, however, as you setup your homeowner policy on the new house you get yet another 40-50 page packet.  I mention this because it was not always this way.  Like every other industry, things used to be simpler.  The photo that is with this article is of a fire policy dating back to 1833 that hangs in our office.  During the time of this policy there was only one page to the insurance packet.  It held the logo of the insurance company on the top and then the rest of it was the contract language.  When you sold your home you did not go out and purchase another policy.  Instead you would go get the insurance policy from the prior homeowner and have it signed over to you.  If you look closely at the photo you will see where there is writing all around the document which shows the different transfers of ownership.  Ah, the simpler times.

One thing to note though, this policy only covered you for fire.  Damage from wind, theft, water leaks, liability, etc. had not been invented yet.  Though they were simpler times the coverage was not nearly as good as it is today.

Our best tips to help your property withstand winter

By Cincinnati Insurance

If you haven’t made preparations already, now might be your last chance to get your home or business in shape before the coldest months of the year. Here are our best tips for commercial property owners and homeowners that can help you prevent damage from the worst that winter has to offer.

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A well-maintained building is ready for winter

Buildings protect us from the elements but, like people, are not immune to seasonal change. Take action to help protect your commercial building from the effects of winter. Your efforts now will keep you and your customers more comfortable later.
Here are some tips for owners of commercial buildings covering general building maintenance; snow and ice removal and management; and frozen pipe prevention. More

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Let it flow! Let it flow! Let it flow!
Did you know that letting your most weather-susceptible faucets drip during periods of extreme cold can keep your water pipes from freezing? Don’t let cold weather ice your pipes this winter!
Because liquid expands as it freezes, pipes full of water are vulnerable, and those outdoors or running against exterior walls are especially susceptible. With a few preventive steps, you can save the expense and bother of burst pipes and water damage. More

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First aid for frozen pipes – steps to prevent more problems
There’s plenty of cold weather ahead of us – enough to freeze pipes, causing costly water damage at your home or business.
If you suspect you have a frozen pipe – you’ve turned on the faucet, but no water comes out – call a qualified plumber immediately. Shut off the main water valve, and leave the faucets open until repairs are made. If a pipe has burst, take the necessary steps to prevent further damage, and contact your insurance agent to file a claim. More

Are you properly insuring your other structures?

Cincinnati Insurance Company Blog by William Maples

There’s more to your homeowner policy than just coverage for the house you live in. It also provides coverage for other structures on your property.

These may include all structures and buildings not sharing a foundation with your house. Most insurance policies provide 10 percent coverage for other structures. For example, if you insure your home for $200,000 an additional limit of $20,000 applies to all other structures. Remember that if you have a total loss, you don’t receive $20,000 for each structure, but $20,000 total for damage to all other structures. A large detached garage by itself can exceed this amount in many cases.
So how do you know you have appropriate coverage?

If you have detached structures on your land, it is best to consult with your local independent insurance agent to discuss options. A pool house, large barn, garage with living space, fence, freestanding deck and stable may fall into different categories, and your agent can help make sure you have the correct coverage to protect you in the event of a total loss.

While the chances of losing all your other structures at one time are small, you want to secure enough coverage to protect your investments. You may need more than the 10 percent standard coverage for appurtenant structures.

Also consider that many different types of structures could qualify for coverage on your policy, and it’s important to select the correct category based on usage. Your agent can advise you on the information you will need to provide to obtain the coverage that’s right for your situation.
A good example is a barn. Barns can be built in many different ways from a variety of materials. By providing accurate information on usage and construction, you can be assured that your property is protected.

If your other structure is being rented, is used for a business or was not reported, you are most likely not adequately insured. Your agent has the expertise to guide you.
Finally, don’t forget to assess how much insurance protection you need for personal property housed in your other structures. For example, a home woodshop in your barn could have valuable equipment you’ll want to protect. Ask your agent for advice.

The best way to look at it is to think of insuring your other freestanding structures the same way you would your home. You want 100 percent coverage for each structure in the event of a loss. Replacement of these structures is typically less expensive than a home, but those costs can add up and represent a significant loss.

Coverages described here are in the most general terms and are subject to actual policy conditions and exclusions. For actual coverage wording, conditions and exclusions, refer to the policy or contact your independent agent.

Safe Travels this Holiday!

The Holidays are in full swing and with Christmas just a couple of days away; many have already started their Holiday travels. Being the insurance people that we are, here are a few tips for a safe and secure season of travel.

1) Make your home seem like someone is still there. You can do this several ways. Leave your front and back porch lights on so that at night your house is lit up. Ask a neighbor to collect your mail while you are gone so it doesn’t stack up. You can also ask the post office to hold if for you until you get back. Another way to make it look like you are home is to ask a neighbor to pull in and out of your driveway at some point if it snows giving the appearance that you have been in and out of your house.

 

2) Don’t show off to the Facebook world that you are on vacation. I know this can be tough for some but letting everyone know you are out of town on Facebook can be dangerous. We recommend waiting until you get home from your trip before you post vacation pictures.

 

3) Car travelers should be prepared for heavy snow at all times. The best way to do this is to make sure you have extra blankest, windshield washer fluid, ice scrapers and even a small shovel. You never know when you might need any of those things. Also, be sure to have your phone charged during the trip so that you have it in case of an emergency.

 4) Don’t skimp on heat in your home: This time last year our big recommendation in our “Traveling Over the Holiday” blog article was to keep the heat in your house at a reasonable level so your pipes don’t freeze. Again, we recommend this.

Those are just a few simple tips. We here at Fey Insurance hope you have a wonderful Holiday and Merry Christmas

Thanksgiving Safety Tips from NFPA

Here is an article from the National Fire Protection Association (NFPA) on Thanksgiving Safety Tips.  From our family here at Fey Insurance Services to yours, have a wonderful and safe Thanksgiving! 

THANKSGIVING SAFETY TIPS
The kitchen is the heart of the home, especially at Thanksgiving. Kids love to be involved in holiday preparations. Safety in the kitchen is important, especially on Thanksgiving Day when there is a lot of activity and people at home.

Safety tips:


•Stay in the kitchen when you are cooking on the stovetop so you can keep an eye on the food.

•Stay in the home when cooking your turkey and check on it frequently.

•Keep children away from the stove. The stove will be hot and kids should stay 3 feet away.

•Make sure kids stay away from hot food and liquids. The steam or splash from vegetables, gravy or coffee could cause serious burns.

•Keep the floor clear so you don’t trip over kids, toys, pocketbooks or bags.

•Keep knives out of the reach of children.

•Be sure electric cords from an electric knife, coffee maker, plate warmer or mixer are not dangling off the counter within easy reach of a child.

•Keep matches and utility lighters out of the reach of children — up high in a locked cabinet.

•Never leave children alone in room with a lit a candle.

•Make sure your smoke alarms are working. Test them by pushing the test button

Flue season: Have your fireplace and chimney inspected

-Cincinnati Insurance Company (Paul Thibault)

Home heating fires are the second leading cause of home fire deaths after cooking fires, according to the National Fire Protection Association. Fireplaces, chimneys and flues account for a significant number of home heating fires.
Homeowners with a wood-burning fireplace or solid fuel stove or insert can protect your property and your family by having a qualified professional inspect and clean your chimney at least annually to prevent a buildup of creosote.
Creosote is a tarry residue or solid organic compound caused by incomplete combustion of wood that can build up in chimneys and ignite a chimney fire. A heavily used fireplace or stove may require periodic cleaning throughout the heating season. NFPA statistics show that failure to clean creosote from chimneys was the leading factor in 28 percent of the home heating equipment fires between 2007 and 2011.
The U.S. Fire Administration offers a series of videos showing how to safely build and tend a fire. Additional tips for safe fireplace and wood stove use:
-Equip your fireplace with a sturdy glass or metal screen to stop sparks from flying into the room.

-Inspect your fireplace’s flue prior to use for any obstructions or blockage by using a flashlight and looking up the flue. This also assures that the flue’s damper control is open prior to lighting the fire.

-Keep anything that can burn at least three feet away from the fireplace or wood stove. NFPA statistics show 53 percent of fires resulting in home heating fire deaths were caused by having heating equipment too close to things that can burn, such as upholstered furniture, clothing, mattresses or bedding.

-Only adults should build and tend a fire; enforce a three-foot “kid-free zone” around fireplaces and wood stoves.

-Always use the right kind of fuel, specified by the manufacturer, for inserts. For fireplaces and wood stoves, use only seasoned wood. Green wood increases creosote buildup.

-Do not burn cardboard, wrapping paper or other rubbish in the fireplace or wood stove.

-Never use lighter fluid or any flammable or combustible liquids to start the fire.

-Make sure a fully charged fire extinguisher is nearby and accessible.

-Install smoke alarms and carbon monoxide detectors as recommended, change the batteries twice a year, and test them according to manufacturer’s recommendations, usually monthly.

-Put out fireplace fires before going to sleep or leaving your home.

-Allow ashes to cool prior to cleaning out a fireplace or wood stove. Ashes that seem cool may contain concealed hot embers for several days after your last fire. Place the ashes in a covered metal container and keep the container outdoors a safe distance away from your home or any buildings.Have fireplace inserts or wood stoves installed by a qualified professional who can meet the established NFPA 211 standard. Never attempt to install them yourself. According to the NFPA, 10 percent of fires involving heating appliances actually involve the ignition of structural members where flues or chimneys pass through a building’s wall.

Homeowner Policy: Section 1

A homeowner policy is made up of two sections, Section 1 Property and Section 2 Liability.  This blog post will focus on Section 1 which outlines the four property coverages provided by a homeowner policy.  Those four coverages are as follows:

 

-Coverage A Dwelling:  This coverage pertains to the actual house itself.  The limit shown on the policy in this section is the amount of insurance the policy will pay out if the house was totally damaged.  It Is important to understand that this limit of insurance should be based on Reconstruction Costs (the amount it would take to rebuild the house) instead of Market Value (the amount you can buy or sell the house on the real estate market).  For more details on this check out our Reconstruction Cost vs Market Value article.  The dwelling limit of insurance will drive the other three parts of Section 1 Property so for example purposes let's say our Coverage A Dwelling limit is $200,000.

 

-Coverage B Other Structures:  Other Structures are property located on your land that are not permanently attached to your home.  This would be things like detached garages, fences, sheds, barns and pools to name a few.  Back in the 50's this was a much more common concern to have Other Structures coverage because the norm was to have a detached garage.  Today many garages are part of the house so this coverage is not as much of a focus on new homes.  The homeowner policy, however, automatically includes this coverage in most cases so even if you do not have a need for it, still it is there.  The limit for this coverage is usually 10% of the dwelling limit so if our Coverage A is limit is $200,000 then our Other Structures limit is $20,000.  

-Coverage C Personal Property:  This section covers your contents, your personal belongings inside the house, such as TVs, clothes, furniture, pictures, etc get its coverage.  The important thing is to be sure that you have replacement cost coverage for you Personal Property and not actual cash value.  If you have actual cash value it means they will take into account how old your stuff is and not give you enough money to go out and replace your items without having to go buy used.  If you have replacement cost coverage you can go replace your furniture with new furniture from a store and the policy will reimburse you the full amount.  Coverage C Personal Property is also derived from the Coverage A Dwelling and usually is 70% or 75% of the amount.  This means that if our Dwelling limit is $200,000 then our Personal Property limit would normally be $140,000 or $150,000.

-Coverage D Loss of Use:  Loss of Use means that if you have a claim on your house that makes it so that you can not live in the house for a period of time, the homeowner policy under this section will help pay for your lodging expenses and some of your eating out expenses (usually 1/3rd of your meal expenses).  This loss of use might be for a few days or a few months depending on the extend of your homes damage.  The limit of coverage given under this section can very from company to company.  Some companies give a time period they will cover it for (example 2 years) or they will just pay what ever the amount of loss is (actual loss sustained).  Some companies, similar to how they do it on the Other Structures and Personal Property section, give a percent (usually 10%-20%).

Insurance Things to Consider on Rental Properties

Over the last few years many homeowners have turned into landlords.  With the real estate market drop, those that decided to purchase a new house also decided to not sell their prior home for fear of a financial loss on the property.  Instead, they have turned their prior house into a rental.  The trend still continues today even after the real estate market has rebounded some because landlords are seeing great cash flows from renting.

Here at Fey Insurance Services we insure a number of these properties and on occasion we are asked by clients if we have any insurance tips in renting a property.  When asked we always mention these five things:

1.  Temperature Requirement in the Lease:  It is a good idea to include a clause in your lease that requires the tenant to keep the heat no colder than 59 degrees.  This is important because around the Holidays many tenants will travel and if they want to try and save a buck they may turn off the heat.  Pipes do not enjoy this especially with a polar vortex threatening again this year.  This way, if they do turn the heat off and pipes break you can pass that damage on to the tenant.

 

2.  Renters Insurance for Tenants:  Since you may have passed on the risk of pipe freezing damage to your tenant you then want to make sure they have insurance in place to pay for such damages.  Requiring tenants to have renters insurance is a good idea.  Not only does it protect their contents (which is excluded under your policy), it protects your property if they are negligent in causing damage to your property.  I would recommend they have liability limits at least the value of your property.

3.  Dogs:  Know your states laws on dog attacks.  For example, in Kentucky there was a law recently passed that could drag landlords into dog attack claims.  This may make it difficult to get insurance for a property that has a dog.  If you are going to allow dogs to live on your premises it is best to limit which kinds as some insurance policies exclude coverage for "vicious dogs".

4.  Loss of Rents Coverage.  Make sure your rental property insurance policy includes coverage for loss of rents.  If you sign a year's lease with someone and then have a fire a month later, you are going to be out 11 months of rent or at least however many months it takes to rebuild the house.  You can recoup this loss with loss of rent coverage.  Also, make sure that you have enough loss of rent coverage.  Many polices give  you 10% of your dwelling limit or give you a flat $25,000.  Add up your annual rents and make sure you have enough coverage.

5.  Certificates of Insurance from Contractors:  Unless you yourself are handy, you may be employing contractors to do fixes around your rental property.  We strongly recommend you ask these contractors for proof that they have insurance.  If they were ever to cause damage to your tenants contents or to your tenants person, you would want to make sure they have insurance to cover such things.

Tornado Truths That Can Help You Stay Safe

Tornadoes have caused severe and irreparable damage to tens of thousands of Americans and their property in recent years. On top of the physical and emotional fallout, many have also lost their lives as a direct result of a tornado.

Although you can never control the weather or the outcome of a destructive storm, there are steps you can take to help you and your family remain protected in the event of a tornado. Those steps of action begin with knowing fact from myth.

Here are a few tornado truths that could help keep you and those you love safe:

 

When indoors, shut all windows and doors. Do not leave them open in an attempt to follow the mythical need to “pressurize” your home because the result would more likely be debris flying through the window and causing severe harm, or wind pressure working to lift the roof off the house from the inside.

 

If you are inside your home or other structure, retreat to the lowest level (a basement is ideal) or the room closest to the middle of the home or farthest from windows and doors. Do not seek a “corner” of the structure for your retreat; instead, go to the center-most point, away from windows and anything heavy that could fall on your head.

If you’re outdoors, find the lowest spot, such as a ditch or dry river bed, and lie flat on your stomach, covering the back of your head with your hands.  Do not follow the myth of seeking shelter underneath a bridge or overpass because it could collapse on top of you or large debris and winds could come rushing underneath and potentially sweep you up into the tornado itself.

If you are in a vehicle, abandon the vehicle and try to find shelter in a structure or outdoors in a low place where you should lay stomach-down and cover the back of your head with your hands. Most importantly, do not attempt to drive away from the storm unless it’s very obviously far away and moving in the opposite direction. 

Do not take shelter near a road or foothill and expect the tornado to miss you. Some myths say that tornadoes will reverse their directions when nearing a road or foothill, but a tornado doesn’t discriminate and will keep on its path.

Keep head gear handy. Head protection can be the number-one most important factor in remaining protected from flying debris—indoors or outdoors—so know where bike, football, batting, boxing and other helmets are in the house, and make them easily accessible.

 

At Fey Insurance we want to help you know the tornado truths that will help keep you and your family safe. For more tornado safety tips, visit the Storm Prediction Center’s comprehensive guide at http://www.spc.noaa.gov/faq/tornado/safety.html.

Prevent Water From Going Where it Shouldn’t

One of the most disheartening experiences is to find flooding or extreme water damage to your treasured home in Oxford or Cincinnati, OH.

 
At Fey Insurance we know you want to protect what’s important. That’s why we’re offering these tips to help you prevent many of the most common causes of water damage.

Just a little time and some effort can prevent a lot of heartache and hassle.

Ø  Make sure your water pressure is not set too high. For just $6 or so, you can purchase a gauge that will help you test your pressure for the appropriate level, which should be set between 60 and 80 PSI.

Ø  Standard hoses on new appliances are not as durable as they used to be. So check your appliances. If they’re rubber, either replace them with longer lasting stainless steel braided hoses or replace them every three years.

Ø  Keep water from leaking into the walls or floor of your bathroom by replacing cracked tiles and re-grouting when it’s needed.

Ø  Examine the shingles on your roof. Worn, curled or missing shingles allow water in, so replace them as soon as noticed.

Ø  Consider buying a water alarm, which can help you find leaks, or automatic shut-off mechanisms, which can help avoid bursts.

Ø  A lot of water damage occurs when you and your family are away from home.  Make a practice to avoid running the washing machine or dishwasher while you’re out.

Ø  When you leave for vacations, turn off the water supply to appliances.

Ø  Keep up maintenance on all appliance hoses, because slow leaks from worn out hoses can cause major damage (and they are not covered under Homeowners insurance).

At Fey Insurance we hope these pointers will ensure your house stays nice and dry this year! 

 

-Safeco Insurance Article

Home Security System

On a daily basis you see ads on TV for home security systems. We at Fey Insurance highly recommend the installation of a Home Security System to add additional protection for you and your family. Insurance will work to put your property back in place after a fire or burglary, but a Home Security System will work to prevent or minimize the effects of that fire or burglary. If you are interested in such a Home Security System, please call us and we will tell you our opinion of the various manufacturers and what features to consider. For example battery backups are usually included in Home Security Systems, but we would also recommend cellular backups for your system in the event your normal phone service goes down or even disabled by a potential burglar. We would include carbon monoxide detectors in your system especially if you have a natural gas furnace or hot water heater. Central station monitoring is preferable to systems that go directly into a police or fire dispatch. Both are considered superior to a system that only sounds a local alarm in your home. There are discounts on your Homeowner policy for the installation of a Home Security System. Please call us to review those discounts. But the most important reason, in our opinion, to install such a system is for additional security for your family and peace of mind that you are doing everything to protect your family and your property.

Alternate Sources of Home Heating

The high cost of home heating and the current recession have led many Americans to search for alternate sources of home heating.  Many of these sources of heating may be acceptable if appropriate safeguards are used.  However, be aware these supplemental heating devices are responsible for thousands of home fires each year.

WOOD STOVES

Wood stoves cause more than 4,000 residential fires each year.  Carefully follow the manufacturer's installation and maintenance instructions.  Look for solid construction, such as plate steel or cast iron metal.  Check for cracks and inspect legs, hinges and door seals for smooth joints and seams.  Use only seasoned wood for fuel, not green wood, artificial logs or trash.  Inspect and clean your pipes and chimneys annually and check monthly for damage or obstructions.  Cleaning more often may be necessary.  Be sure to keep combustible objects at least three feet away from your wood stove.

ELECTRIC SPACE HEATERS

Buy only heaters with the Underwriter's Laboratory (UL) safety listing.  Check to make sure it has a thermostat control mechanism, and will switch off automatically if the heater falls over.  Space heaters need space, keep combustibles at least three feet away from the heater.  Always unplug your electric space heater when not in use.

KEROSENE HEATERS

Buy only UL-approved heaters and check with your local fire department on the legality of kerosene heaters use in your community.  Never fill your heaters with gasoline or cam stove fuel, both flare up easily.  Only use crystal clear K-1 kerosene.  Never overfill an portable heater and never fuel the heater when it is hot.  Use the kerosene heaters in a well-ventilated room.  Kerosene heaters pose perhaps the worst exposure largely due to improper use and the fact they contain a highly flammable liquid-not to mention potentially dangerous fumes.

FIREPLACES

Fireplaces and wood stoves regularly build up creosote in their chimneys.  They need to be cleaned frequently and chimneys should be inspected for obstructions and crack to prevent deadly chimney and roof fires.  Check to make sure the damper is open before starting any fire.  Never burn trash, paper or green wood in your fireplace.  These materials cause heavy creosote buildup and are difficult to control.  Use a screen heavy enough to stop rolling logs, and big enough to cover the entire opening of the fireplace to catch flying sparks.  Do not wear loose fitting clothes near any sealed metal container outside the home.

Finally, having a working smoke alarm dramatically increases your chances of surviving a fire. Always remember to practice a home escape plan frequently with your family.

Source: US Fire Association

Insurance Things to Consider on Rental Properties

Over the last few years many homeowners have turned into landlords.  With the real estate market drop, those that decided to purchase a new house also decided to not sell their prior home for fear of a financial loss on the property.  Instead, they have turned their prior house into a rental.  The trend still continues today even after the real estate market has rebounded some because landlords are seeing great cash flows from renting.  

Here at Fey Insurance Services we insure a number of these properties and on occasion we are asked by clients if we have any insurance tips in renting a property.  When asked we always mention these five things:

1.  Temperature Requirement in the Lease:  It is a good idea to include a clause in your lease that requires the tenant to keep the heat no colder than 59 degrees.  This is important because around the Holidays many tenants will travel and if they want to try and save a buck they may turn off the heat.  Pipes do not enjoy this especially with a polar vortex threatening again this year.  This way, if they do turn the heat off and pipes break you can pass that damage on to the tenant.

2.  Renters Insurance for Tenants:  Since you may have passed on the risk of pipe freezing damage to your tenant you then want to make sure they have insurance in place to pay for such damages.  Requiring tenants to have renters insurance is a good idea.  Not only does it protect their contents (which is excluded under your policy), it protects your property if they are negligent in causing damage to your property.  I would recommend they have liability limits at least the value of your property.

3.  Dogs:  Know your states laws on dog attacks.  For example, in Kentucky there was a law recently passed that could drag landlords into dog attack claims.  This may make it difficult to get insurance for a property that has a dog.  If you are going to allow dogs to live on your premises it is best to limit which kinds as some insurance policies exclude coverage for "vicious dogs".

4.  Loss of Rents Coverage.  Make sure your rental property insurance policy includes coverage for loss of rents.  If you sign a year's lease with someone and then have a fire a month later, you are going to be out 11 months of rent or at least however many months it takes to rebuild the house.  You can recoup this loss with loss of rent coverage.  Also, make sure that you have enough loss of rent coverage.  Many polices give  you 10% of your dwelling limit or give you a flat $25,000.  Add up your annual rents and make sure you have enough coverage.

5.  Certificates of Insurance from Contractors:  Unless you yourself are handy, you may be employing contractors to do fixes around your rental property.  We strongly recommend you ask these contractors for proof that they have insurance.  If they were ever to cause damage to your tenants contents or to your tenants person, you would want to make sure they have insurance to cover such things.

Insurance Tips Before and After A Disaster

“If only I knew.” Four words spoken after disasters by people who’ve learned they don’t have the insurance coverage they thought they had. In our agency, we never want you to be in that situation, so here are some tips to help.

Advice you need before a disaster

You might have purchased your insurance a long time ago. Do you remember the coverage choices you made and your deductibles, endorsements and exclusions? These details can make or break a family after a disaster, so take a few minutes to call us to see if your coverage fits your current needs. Be sure to report life changes and significant purchases or home improvements.

Do you know how much coverage you have if your home or possessions are damaged by rain, hail, lightning or tornadoes? If your roof was damaged in a storm, would it be repaired or replaced? How soon after a storm do you need to report a loss? Are you aware that most renters and homeowners policies don’t cover floods or earthquakes? Do you have loss-of-use coverage in case you have to vacate your home temporarily? If a tree falls on your car, do you have the right auto coverage?

If you don’t know the answers, it’s important to call us to learn what your policy specifies.  Another helpful tip is to create a home inventory every few years. It sounds like a headache, but anyone who has filed a claim will vouch for its value, and technology has made the process quick and easy. Videotape or photograph your possessions room by room. Get close-ups of valuable items, and keep receipts. Create an inventory by downloading an app or using a website like knowyourstuff.org, recommended by the Ohio Committee for Severe Weather Awareness (OCSWA). Store this inventory on the web or somewhere outside your home to keep it protected.

Insurance tips for after a disaster

Inspect your property and vehicles. Make a list of what is damaged and how. Take photos for documentation. And report your loss in a timely manner. Also take steps to protect possessions from further damage after the disaster.

If you need to move out of your residence temporarily, provide us with a phone number where we can call you. Find out the monetary limit your loss-of-use insurance covers before you choose a hotel. When you file a claim, back it up with written estimates and your home inventory information.  Prepare now, and your family will be grateful if there ever is a disaster.

Extended Dwelling Coverage on a Homeowner

Many moons ago all insurance companies used to have guaranteed replacement cost endorsement you could put on your homeowner policy. This endorsement would guarantee that the insurance company would rebuild your house exactly as it was prior to the claim even if your limit of insurance on the house was lower than the cost to rebuild. Today many insurance companies limit that endorsement to only homes that are considered high value (homes valued at $500,000 or more). The endorsements also require that the insurance companies send out professional reconstruction appraisers to figure out as best they can what it would cost to rebuild your home.

For those homeowner clients who have a house valued at less than $500,000 the endorsement that needs to be added to the homeowner policy is Extended Dwelling Coverage. What this endorsement does is give a percentage of the homeowner limit as extra coverage in case of a total loss on the home. For example, if you have 25% Extended Dwelling Coverage and your house is insured for $200,000 then you would actually have $250,000 if your home suffered a total loss ($200,000 X 1.25 = $250,000).

We feel this coverage is important for two reasons. One reason is we do not send out professional reconstruction appraisers to every house. Instead, insurance companies use in house software that helps determine reconstruction cost on your house using things like square footage, construction type, location, year built, etc. to come up with a value. These programs are usually very accurate but nothing replaces the accuracy of an in home visit with measuring tape and details of the type of amenities in the house. The Extended Dwelling Coverage endorsement helps make sure that if for some reason the calculations on the house are a little off, there is still enough insurance there to replace the house to its original state.

The second reason we encourage this endorsement is for catastrophe situations. Let’s say a tornado wipes out not only your house but two other neighborhoods worth of homes. Every builder and building supplier in town will be in demand. Economics 101 will tell you that if demand goes up and supply is the same, then prices are going to rise. That home that only cost $200,000 to rebuild just got a lot more expensive but if you have the Extended Dwelling Coverage on your homeowner you would be in a much better situation.

One thing to note about this endorsement, you can’t use it to underinsure your home. In our example above, you can’t insure the house for only $160,000 and add the 25% Extended Dwelling Coverage (which would put your total insurance at $200,000). That is not the intent of the coverage. The insure companies will use their software to figure out a good estimate of the cost to rebuild your house and you would have to have it insured for that amount in order to add the coverage.

Named Peril vs. Open Peril Homeowner Policies

Many today feel all homeowner policies are the same, that they are a commodity of sorts. In our professional opinion this is not the case. One glaring difference between homeowner policies is whether they are “Named Peril” or “Open Peril” homeowner policies.

Named Peril insurance policies specifically list the risks they will cover your home for. The policy contract will cover such happenings as wind, lightning, fire, smoke, theft, etc. If something happens to your home that doesn’t fall into the insurance policies definitions of the name peril terms than there is no coverage.

Open Peril insurance policies state that all risks are covered except for a list of exclusions that are outlined in the policy contract. This type of contract gives broader coverage than a Named Peril because the incident that happened to your home or personal contents doesn’t have to fit into a certain definition of coverage. As long as the incident isn’t excluded it is covered.

A homeowner policy that is using a “Named Peril” contract will always be cheaper than an “Open Peril” contract. It is important to know this so that you don’t fall victim to purchasing solely on price. You may be excited to see a savings from one policy to the next but that savings could be at a much higher cost and exposure to you. Unfortunately you may not know this until you actually have a claim and are staring at a bill that would have been covered under an Open Peril policy but is not covered now under your Named Peril policy.

This is just one example of what may be different between homeowner policies. Other things like deductibles, specialty items coverage, fallen tree coverage, water backing up sewers and drains, and earthquake coverage are a few others to consider.

Rough Notes Homeowner Video

The Rough Notes production department has put together a wonderful video that goes over the basics of a homeowner insurance policy and how it protects your house.  This is a great video for any homeowner to view, especially someone buying a house for the first time.

Thanksgiving Safety Tips from NFPA

Here is an article from the National Fire Protection Association (NFPA) on Thanksgiving Safety Tips.  From our family here at Fey Insurance Services to yours, have a wonderful and safe Thanksgiving! 

THANKSGIVING SAFETY TIPS
The kitchen is the heart of the home, especially at Thanksgiving. Kids love to be involved in holiday preparations. Safety in the kitchen is important, especially on Thanksgiving Day when there is a lot of activity and people at home.

Safety tips:


•Stay in the kitchen when you are cooking on the stovetop so you can keep an eye on the food.

•Stay in the home when cooking your turkey and check on it frequently.

•Keep children away from the stove. The stove will be hot and kids should stay 3 feet away.

•Make sure kids stay away from hot food and liquids. The steam or splash from vegetables, gravy or coffee could cause serious burns.

•Keep the floor clear so you don’t trip over kids, toys, pocketbooks or bags.

•Keep knives out of the reach of children.

•Be sure electric cords from an electric knife, coffee maker, plate warmer or mixer are not dangling off the counter within easy reach of a child.

•Keep matches and utility lighters out of the reach of children — up high in a locked cabinet.

•Never leave children alone in room with a lit a candle.

•Make sure your smoke alarms are working. Test them by pushing the test button

Flood Insurance Facts (Re post from 11/23/09)

With all the flooding that has occurred as a result of Sandy we thought this might be a good time to re post an old flood insurance blog article that gives a few facts about flood insurance.

Posted November 23, 2009 on www.feyinsuranceblog.com:

Flood insurance had its fifteen minutes of fame after the Hurricane Katrina disaster in 2005. During this time period the media was making everyone well aware that flood insurance is not part of your typical homeowner policy. Today that is still the case and with this post I would like to point out a few more facts about flood insurance.

Flood insurance is run through a government program called FEMA (Federal Emergency Management Agency). You can purchase it through insurance agency such as Fey Insurance Services but the backing is from FEMA. Typically it takes 30 days for a new flood insurance policy to go into effect. The one exception would be for a mortgage closing where flood insurance is required. So you need to plan ahead. Hearing about a big rain on the nightly news and calling your agent the next day will not work. Many people think of flood insurance when they think about what is stored in their basement. Flood insurance will only cover things such as furnaces, water heaters, washers, dryers, air conditioners, freezers, pumps and utility connections. Everything else you store down there (old cloths, furniture, carpet, TV, etc) is not covered unless those items are on the first floor of your house and the flood reaches that level.

In some cases flood insurance is required in order to get a loan. If your home or a home you are about to purchase is in a 100 year flood plain (meaning at least once every 100 years your location is under several feet of water) you will be required to purchase a flood insurance policy to close on your loan.

Deductible Basics

When a covered insurance claim happens the insured, in many cases, will be responsible for the first few dollars of most losses. The amount they are responsible for is called the deductible. More often than not, deductibles are only associated with property damage of the insured’s own possessions whether that is a vehicle that was damaged or damage to their contents, their buildings or even their loss of income. On some occasions you may see deductibles on liability claims but not in many.

Deductibles can come in many different forms on insurance policies. You can have a given dollar amount, say $500. Often times you see this type of deductible on home insurance or business property insurance. Some deductibles might be a percent of the loss like 1% or 10%. Sometimes you will see this type of deductible on a home or business but many times it will be associated specifically with earthquake coverage. Deductibles can be vanishing deductibles. As the insured racks up years of no losses, their deductible gradually drops each year until eventual it is $0.

In most cases the deductible is per claim. This means that each time you have a claim you pay a deductible. It isn’t like your typical health insurance policy where you have an out of pocket deductible for the year and once you meet that limit you are done with the deductible. In property and casualty, if you have a $500 flat per claim deductible you will pay $500 each time you have a claim no matter how many you have in a given year.

Deductibles can be a helpful cost savings tool. They can be raised to help drop premiums but the insured needs to understand that by raising deductibles they have taken on a bit more of the burden of possible claims.

It is important for insureds to understand what their deductible is so that they can be prepared to financially meet its requirement if a claim were to happen. I mention this more in connection with a percentage deductible. The insured should know if the percent is on the cost of the claim or on the coverage limit. For example, if a person had a $200,000 house and an insurance policy with a 5% deductible (on the coverage limit) it would be best to know that you have a $10,000 deductible before you have a claim. Someone that doesn’t know their policy might think that it is 5% per the cost of the claim.

Deductibles are just one of many facets to an insurance policy. Be sure to familiarize yourself with your policy and policy coverages and consult your independent insurance when ever you have any questions.