News

Consumers spend billions on their homes. Home improvement
projects tallied to a whopping $280 billion in 2005, according to research from
the Joint Center for Housing Studies at Harvard University. The center forecasts
that home renovations will grow at a steady 3.7% rate annually through 2015,
after inflation.

What shouldn’t be lost in the excitement of adding a
bedroom, finishing a basement or updating the kitchen is your financial
security. The risk management and insurance tools available through your
Trusted Choice^® insurance agent are indispensable when you’re renovating.

Be aware that home renovations add to the risks you’re facing
as a homeowner, including injuries to family, contractors and delivery workers;
fire, theft, and vandalism; and water damage. What’s more, know that you must
protect yourself from financial liability for anything that goes wrong.

It’s imperative that your homeowners and umbrella
insurance coverages are set up correctly before, during and after your
renovation project. The time and paperwork required may seem a distraction when
you’re eager to upgrade an older home, install an energy efficiency retrofit,
or renovate a rental property. But it’s every bit as important as buying the building
materials or choosing the contractor.

Before renovations start: Require
contractors to provide proof of insurance for workers compensation and
liability coverages. Your insurance agent can guide you on how to do this and
what to ask the contractor to provide.

Workers compensation insurance pays for medical and
rehabilitation expenses (and covers lost wages) if workers are hurt on the job.
Workers who are injured in your home can sue you or claim damages from you if
the contractor they work for does not have adequate coverage. (By default your
homeowners and umbrella liability policies can become their insurance coverage,
an unwelcome development for those who pay the premiums and do the claims
paperwork.)

If you need to move out during construction, notify your
agent so you can be certain that you have proper coverage for a temporary
residence such as a hotel or rented home.

Recognize that building code upgrades and market changes
may change the standard to which your renovated home is held. For example, home
alarm systems have become popular, so you may wish to add one during your
renovations. It may add to the renovation cost, but can make your home safer
and earn a homeowners insurance discount. Such decisions are generally best
considered before the project starts.

During construction: With the added risks—such as
construction accidents, fires due to power tools and open utility lines, and
strangers in the house who may be tempted to steal your property or your
identity—you may want to consider temporarily increasing homeowners and/or
umbrella policy limits and/or changing the deductible.

After the project is finished: Home improvements can increase the
market value and replacement cost of your home. Your agent can guide you to
proper insurance coverage levels for homeowners and umbrella policies. At that
time, you may want to also ask about guaranteed replacement cost coverage for
your homeowners policy.

The renovated or expanded space in your home may fill up
with new furniture, exercise equipment, electronics, and appliances. Track
those purchases with receipts and a written or electronic home inventory.
Additionally, check the coverage in your homeowners policy for personal
property, as this may need to be adjusted as well.

Talk to your insurance
agent to be sure your home is properly insured at all stages of a home
renovation project.

TLIG is a local Trusted Choice^®
agency that represents multiple insurance companies, so it offers you a variety
of personal and business coverage choices and can customize an insurance plan
to meet your specialized needs.

You can visit TLIG online at www.tligins.com
or call us at (434) 582-1444.

It’s Valentine’s Day, and thoughts of people everywhere turn to … jewelry.

About one of four Americans buys jewelry, spending $2,000 per year on average, and industry
experts expect jewelry sales to grow by at least 5% annually through 2025.
Those who don’t buy shiny things for Valentine’s Day may prefer other types of
valuables, such as electronics, artwork, antiques, wine and furs. All totaled,
Valentine’s Day gifts will tally approximately $17 billion of retail sales in
2008.

Whatever the purchase, American consumers should take steps to safeguard and insure their
valuables. Homeowners insurance generally covers valuable and precious items
such as jewelry, but they usually have limits.

Typically policies restrict the dollar amount of coverage for individual valuable items ($1,000 is
a typical maximum), as well as “sub-limits” that constrain coverage for certain
categories of possessions (all the jewelry in the house, for example) to a
certain dollar amount (say, $10,000).

What’s more, most homeowners insurance policies cover “named perils” such as fire, lightning, and
windstorm. That will exclude many events that create financial losses. Note,
for example, that “my five-year-old dropping my engagement ring in the toilet
and flushing” is not a named peril.

To cover such circumstances—or other situations that the insurance industry has dubbed
“mysterious disappearance” —you’ll need a valuable articles personal property
endorsement (also called a “floater”) on your homeowners contract. Some
homeowners insurance carriers also sell stand-alone valuables policies.

Need to know what’s best to protect your beloved Valentine’s Day gift? Ask your Trusted Choice®
insurance agent. He or she will need a copy of your receipt or bill of sale for
jewelry, furs, electronics and other valuable items.

With valuable items, two of the biggest snags that consumers run into at the time of a claim are
proving that an item is missing or stolen, and establishing a value for the
items. In fact, insurance carriers, when contacted for a claim, sometimes even
ask consumers to get a police report for the missing item, even if the loss was
not thought to be a theft.

Proving the value (termed “proof of loss”) of items is imperative when it’s time to file a claim.
Claims are simpler and faster for consumers when they have photos of valuable
items and collections; receipts or appraisal reports: and a written inventory.

Most valuables “floaters” or values policies can provide:

• All-risks coverage, which covers mysterious disappearance as well
  as flooding or breakage.
• $0 deductible, which means that the entire replacement cost of
  that engagement ring is covered.
• Blanket coverage for groups of valuables such as jewelry, crystal,
  or fine arts.
• “Scheduled” coverage (meaning that items are individually listed)
  for valuables.
• Coverage for valuables purchased but not yet reported to the insurance
  agent or carrier.

Whatever is on your Valentine’s Day wish list or shopping list, protect it. It’ll help you love it even more. TLIG is a local Trusted Choice^® agency that represents multiple insurance companies, so it offers you a variety of personal and business coverage choices and can customize an insurance plan to meet your specialized needs.

Visit us online at www.tligins.com or call us at (434) 582-1444.

Old Man Winter will soon be unleashing his full fury. Is your home ready for the onslaught of snow, ice and cold winds? If not, the time to prepare is now, before the first storm strikes and your home suffers significant damage from the freezing temps and winter conditions.

Typical homeowners insurance policies protect against winter-related disasters such as burst pipes, ice dams, wind and damage caused by the weight of ice or snow. But you can save yourself a huge headache and probably higher insurance premiums by acting now to head off these winter-caused damages.

Ice damming and bursting pipes are two costly hazards facing homeowners during the winter season. An ice dam is caused by the ice buildup at the lower edge of a sloped roof near the gutter. It starts when the interior heat of your home escapes through the attic and melts the snow or ice on the roof. The water runs down and refreezes at the roof’s edge. Over time, ice builds up and blocks water from properly draining off the roof. With no place to drain, the water seeps under the roof shingles and into your attic and the inside walls of your house, causing serve damage.

To avert ice damming you should keep your attic no more than 10 degrees warmer than the outside temperature and well ventilated. The cooler the attic the less likely that ice and snow will melt and refreeze on the roof. Also, keep your attic floor well insulated so the heat stays in the house instead of escaping through the roof. Insulation with a rating of R-30 is considered the minimum for an attic.

Bursting pipes also cause significant damage to homes. Frozen water increases pressure in pipes, causing the pipe to burst. Pipes located in attics, outside walls and crawl spaces are most susceptible to freezing in cold weather. To prevent bursting pipes take these preventive steps:

1. Wrap exposed pipes with insulation. The more the better.
2. Caulk cracks and holes in outside walls and in the foundation near water pipes.
3. Open cabinet doors during very cold periods to allow warm air to circulate around the pipes.
4. Leave faucets on at a slow trickle; use this step especially when the plumbing runs through unheated or exposed areas.

There are other things you can do to protect your family and home from injury or loss this winter. For instance:

1. Be sure you have plenty of rock salt, sand, and snow shovels so you can remove snow and ice immediately and completely from the sidewalks on your property after a winter storm. Doing so will minimize your exposure to liability lawsuits filed by people who are hurt when they slip and fall on your property.
2. Have your heating system inspected by a certified technician to ensure that it is working properly. Doing so could prevent more costly repairs and a couple cold nights.
3. Check your smoke detectors to ensure they are working properly. Also, buy a carbon monoxide detector if you don’t already have one.
4. Check and clean the gutters. Clogged gutters can contribute to ice damming and cause basement flooding when snow melts.
5. Replace missing or worn roof shingles.
6. Have your house’s chimney checked and cleaned, if necessary, to minimize fire hazard.
7. Trim trees and branches away from your home. Ice, snow and wind can cause dead trees and branches to fall on your home.
8. Drain and shut off outside water spigots.
9. Keep the temperature inside your home no lower than 65 degrees. This step will help prevent freezing pipes.
10. Repair broken stairs and banisters located outside. People need these more than ever when the sidewalks are slippery.
11. Turn off portable or space heaters before going to bed or leaving your home.
12. Never use heaters that burn kerosene or similar fuels in the home. They could ignite a fire and cause a build-up of carbon monoxide gases.
13. Store combustible materials away from furnaces, fireplaces and portable heaters.

Contact TLIG today to make sure that your home is fully protected against everything that Old Man Winter will dish out this coming winter. We will review your homeowners insurance policy with you and will recommend any necessary additions to your insurance coverage.

TLIG is a local Trusted Choice^® agency that represents multiple insurance companies, so it offers you a variety of personal and business coverage choices and can customize an insurance plan to meet your specialized needs.

Visit us online at www.tligins.com or call us at (434) 582-1444.

The end of summer seems to be peak time for natural disasters. Often, Labor Day weekend newscasts include stories about a hurricane, flood, tornado or wildfire happening somewhere in the United States.

Those who are dealing with the crises created by natural disaster need more than news coverage—they need insurance coverage. There are significant risks presented by natural disasters, which not only threaten homes and businesses but also endanger the health and lives of people in their paths.

Nowhere is the value of insurance more apparent than with natural disasters. But consumers must make decisions on important issues in order to insure their homes and possessions from the financial risk of hurricanes and floods:

Hurricane deductibles. June through November is hurricane season in the United States. Many remember the disastrous 2005 hurricane season in the south, when insurance companies paid an estimated $41 billon for 1.7 million claims for damage to homes, businesses and vehicles in six states from Hurricane Katrina, according to the Insurance Information Institute. The Katrina disaster, combined with Hurricanes Rita, Wilma and Dennis, led to more than $57 billion of insured losses and 3.3 million insurance claims.

In recent years, insurance carriers have begun requiring homeowners to have a “hurricane deductible” where permitted by state insurance law. Designed to help insurers manage the significant financial risk they carry when paying thousands of claims in one geographic area, hurricane deductibles apply to damage solely from hurricanes.

Hurricane deductibles range from one to 5% of a home’s insured value. Coastal areas may be higher. The deductible is “triggered” based on the circumstances stated in the homeowners insurance policy language. For example, a 2% hurricane deductible for a home valued at $200,000 means that the homeowner would pay the first $4000 (2% x $200,000) of damage from a hurricane.

Like most insurance coverage, premiums are higher with a lower deductible. Policyholders may have the option of a traditional dollar deductible (such as $500 or $1000) in some states, although that’s not typically offered in higher-risk coastal areas.

Flood insurance. Flood damage is specifically excluded by homeowners and renters insurance policies. Flood insurance coverage, though, is available through independent insurance agents as a separate policy from the National Flood Insurance Program (NFIP), a federal insurance mechanism. In the 1960s, taxpayers often had to “bail out” flood victims, and Congress created the NFIP to make flood insurance available in communities that adopted floodplain management laws to reduce flood damage.

Today, NFIP insurance covers up to $250,000 for the structure of a residential property and $100,000 for contents. Premiums start at $348 for that coverage for a residential property and its  contents. Some insurance carriers offer additional flood insurance (called “excess coverage”) above the basic policy limits or for people whose communities do not participate in the NFIP.

In 2008, a survey by the Insurance Information Institute found that 17% of Americans have a flood insurance policy. The national flood program reported that the average flood claim amounts to $33,000.

Hurricane deductibles and flood insurance are two insurance decisions that consumers might want to double-check.

TLIG is a local Trusted Choice^® agency that represents multiple insurance companies, so it offers you a variety of personal and business coverage choices and can customize an insurance plan to meet your specialized needs.

Visit us online at www.tligins.com or call us at (434) 582-1444.

Your homeowner’s insurance policy will pay to repair damage to your home caused by a fire, windstorm or other covered cause of loss. But when you and your family incur expenses for moving out while repairs are made, who picks up the tab?

An often-overlooked but essential function of your homeowner’s policy is “additional living expenses” (also called “loss of use” or “Part D”) coverage. Additional living expenses coverage will pay the necessary increase in living expenses required to maintain your family’s current standard of living while the house is being repaired. Examples of expenses typically covered include the cost of hotel, food bills in excess of normal grocery/restaurant bills, cooking supplies and the cost of moving property into storage.

The good news is that payment for these expenses usually does not stop if the policy expires. Rather, they will continue to pay until the limit is used up, the home is repaired to a habitable state, or you permanently relocate.

The bad news is that many homeowners erroneously believe that the policy covers 100 percent of additional living expenses until the home is habitable. Realistically, very few policies do this. In most cases, home insurance companies place a limit or cap on loss-of-use payments. For example, many homeowner policies will only offer loss-of-use coverage as a percentage of the limit of insurance carried on the dwelling; 20 percent is common. Others may specify a flat dollar amount.

Usually, a covered loss must occur for any insurance dollars to be paid for additional living expenses. The one exception is if your home is not accessible due to civil authority or government mandate triggered by nearby damage. For example, in 2009, wildfires in California triggered mandatory evacuations that prevented tens of thousands of homeowners from going home. If homes in close proximity to yours are burning, there’s a chance the government will close roads and/or prevent you from entering your property even though it has not yet suffered a direct loss. In this situation, additional living expense payments are often limited to two weeks.

Homeowners who receive additional income by renting a portion of their home should also pay close attention to the Part D limit. This limit also applies to replacing lost rental income while the damaged house is being repaired.

Here’s the important question: How do you know if your policy’s Part D limit is sufficient? The trouble is that important factors are variable. For example, how do you know how long you will be out of your house? Building codes and permits cause rebuilding efforts to proceed slowly in many parts of the country. Calling a local building contractor to gain some idea is a good start but there is no exact prediction.

Further, how do you know what expenses you will incur? According to Hotels.com’s 2009 hotel price index, the average hotel room in the U.S. costs $115 per night! Add this and other expenses to a lengthy, unpredictable repair schedule and the possibility of eclipsing your Part D policy limit before your home is habitable could become a serious problem.

The last thing you want to hear is that your loss-of-use coverage has run out before you can go home. Fortunately, a professional insurance agent understands these exposures and can help you weigh your options, including those that may increase your loss-of-use coverage limit.

TLIG is a local Trusted Choice^® agency that represents multiple insurance companies, so it offers you a variety of personal and business coverage choices and can customize an insurance plan to meet your specialized needs.

Visit us online at www.tligins.com or call us at (434) 582-1444.

Trees can be the reason your property is so valuable. They can keep your utility bills low and give the kids something to do outside. For all their positives, trees can also be the reason why you need to call your Trusted Choice^® insurance agent.

Whether it’s typical seasonal conditions, a freak windstorm, or any number of other reasons, trees and branches fall. Sometimes, they fall onto things, causing significant damage to property. Factor in the cost of paying a contractor to remove the tree, and you could be shelling out some serious cash. The question is how much of that cash will your homeowners insurance pay?

Upon or following an inspection, your insurance company may require that a specific tree be maintained or removed because of the risk it poses to your property. Failure to comply with such a requirement could nullify coverage if that specific tree damages your home.

Typical homeowners insurance policies include coverage for falling objects. Therefore, damage to your home caused by the tree is covered up to your policy limit. This coverage applies regardless of who “owns” the tree. Stated differently, the coverage applies regardless of whether or not the tree is standing on yours or someone else’s property.

If a falling tree damages your home, it’s important you file a claim with your homeowners insurance company even if you believe it was a neighbor’s negligence (such as failure to maintain or remove the tree) that’s to blame for the damage. The truth is that property laws vary by jurisdiction and some neighbors may be uncooperative; if you choose to forgo filing a claim, it could prove more costly to you in the end. Your claims adjuster will investigate and, if there are signs of negligence on part of a neighbor, proceed accordingly.

It may cost thousands of dollars to pay someone to remove fallen trees from your property. Whether or not insurance coverage is available to help with this cost first depends on where the tree was standing and why the tree fell. In this situation, “ownership” of the tree does become a factor. If you “own” the tree (meaning it is standing on your property), removal is covered if it is felled by one of the following perils: wind, hail, or the weight of ice, sleet or snow.

If the tree damaging your property fell from a neighboring property, removal is covered if it is felled by the perils listed above as well as fire, lightning and several others specifically listed in the policy.

Most homeowners policies limit coverage for this cost to a stated amount—typically $500 maximum per tree, $1,000 maximum for all trees felled during the loss. Coverage applies only if the fallen tree damages a covered structure (such as your home or a detached garage) or blocks a driveway or a ramp designed to assist the handicapped. The coverage does not apply to a tree that simply falls into the yard.

Coverage for the Tree Itself

We’ve discussed what your homeowners policy will cover for damage caused by a tree as well as coverage for the cost to remove the damaged tree from your property. Next is a question frequently asked by true landscape lovers: Will the policy pay for the tree itself?

This question is important because many people invest significant money and time into landscaping. A typical homeowners policy will cover damage to trees, shrubs and plants up to 5% of your policy’s dwelling limit—this is the limit of insurance shown for your actual home. However, the maximum amount available per tree, shrub or plant is $500.  This coverage will only apply if the tree, shrub or plant is damaged by one of the following perils: fire, lightning, explosion, riot or civil commotion, vandalism or malicious mischief, vehicles (other than your own) or aircraft, and theft.

Damage to Your Car

Sometimes the branch spares the home but not your car. If your car is damaged by the tree, look to your auto insurance policy. Damage by falling objects is covered by comprehensive (sometimes called “other-than-collision”) coverage.

Trees are a very common concern for homeowners insurance companies due to the range of damage they can cause your property and the related expense. A call to TLIG will help you learn more on the risk and cost associated with trees and your home.

TLIG is a local Trusted Choice^® agency that represents multiple insurance companies, so it offers you a variety of personal and business coverage choices and can customize an insurance plan to meet your specialized needs.

Visit us online at www.tligins.com or call us at (434) 582-1444.