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Ever drive down the street and see a front yard with a trench that looks like someone is dredging a channel from the front door to the street? While a select few may be installing an expensive irrigation system, most are having the sewer line replaced. This line consists of a pipe that runs from the home to the mainline under the street. The lucky among them have undertaken this project on the advice of a proactive plumber who warned of the consequences of backup or leakage due to cracked or clogged pipes. The unfortunate majority have already experienced those consequences.

There are many substances that can clog a pipe. Most can be controlled, others cannot. Consider tree roots: a common reason for clogged and cracked pipes, which can cause most unpleasant damage to the inside of your house. Remedying this unfortunate situation can be costly, and depending on the nature of the project, is not covered by standard home insurance.

Consider the costs: (1) cleaning up damage to/in the house caused by the roots growing into the pipe, and (2) fixing pipes damaged by the roots.

In the case of the former, some home insurance policies will cover damage to your home if a clog causes your plumbing to overflow; others will not. Thus, if the root clog causes a toilet to send water the wrong way (which falls on people’s “biggest fear” list somewhere between death and clowns), resulting damage such as warped tiles, soaked carpet and furniture may not be paid by insurance.

Luckily, most standard home insurance policies can be modified to cover this significant exposure for additional premium. Cost of the modification varies but can be inexpensive; some providers will add the coverage for only a few dollars.

Consider the latter. In addition to paying for damages caused by the clogged or cracked pipe, homeowners will need to protect their property by having roots removed and installing piping that is not damaged. This could mean digging up several square feet of your yard, conducting repairs, and closing the hole as if nothing ever happened- not an easy or inexpensive task.

If this happens to you, don’t panic! While unmodified home insurance does not cover resulting damage, it may cover the cost to tear out and replace the damaged pipes. The kicker is “damage”—the home insurance policy will often cover the cost to fix the pipes if they are physically damaged by the roots, such as when the root penetrates a joint causing it to crack. It is possible for a root to clog a line without damaging the pipe- if this happens there would be no coverage to fix the pipe because it is not physically damaged.

There are many unexplainable phenomena in nature and the unpredictable root structure of trees and plants certainly qualifies. Talk to your independent agent about how to amend your home insurance to control the impact of this “growing” threat.

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.

Millions of Americans donate time—their most valuable asset—to serve as a volunteer board member on non-profits, booster clubs, churches, PTAs and civic organizations, just to name a few. The decisions these folks make can have a dramatic impact on their respective organization—and not always for the better. If a volunteer endeavor goes bad, would a volunteer board member have coverage against a lawsuit under his or her homeowner’s policy?

Homeowners’ Insurance

The last thing volunteers want to consider is what would happen if their favored organization file suit against them as a result of their efforts. But it happens, and not infrequently. This does happen, especially when volunteers make decisions that directly influence the finances of an organization. Often, the only insurance these volunteers have to back their efforts is a homeowner’s policy. Unfortunately, this policy may be of little assistance.

The reason homeowners’ policies do not usually cover liability stemming from actions as a volunteer is the nature of the claim. The policy is designed to cover claims of “bodily injury,” such as someone slipping on cracked pavement in your driveway; and/or “property damage,” such as accidentally setting your neighbor’s house ablaze when burning some brush on a windy day.

Claims against board members do not usually involve bodily injury or property damage. Rather, they involve bad decision-making that results in financial loss to the organization, such as the decision to invest in an IT system that turns out to be a debacle, costing the organization tremendous time and money.

There is another problem. Homeowners policies do not cover “professional services.” This is important to note, because board members are often asked to serve in a capacity consistent with their profession. For example, a church member who is a CPA may be asked to serve on the church’s board as finance chairman. Even though he is not paid for his services, the “professional services” exclusion under his homeowner’s policy would still apply.

In addition to the above, homeowners policies do not cover claims of personal injury unless this coverage is specifically added. Personal injury insurance is added to the homeowner’s policy to cover claims such as libel, slander, wrongful eviction, and false advertising.

What to Do

Events causing claims are unpredictable. While the reasons shown above prove it’s unlikely, not all claims against volunteer board members are excluded by a homeowners policy. Decisions to purchase personal injury coverage and a personal umbrella policy will increase your ability to find coverage for a suit against you.

The best method for insuring the actions of board members is for the organization to purchase a directors and officers (D&O) liability policy. These policies are relatively inexpensive for most non-profits. Before volunteering, request information on the organization’s D&O policy. The absence of this insurance leaves you at risk of having no personal insurance to defend a suit brought against you by the organization and should influence your decision to serve.

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 entertainment value in a summertime get-together can be in the camaraderie and storytelling. But don’t let your next backyard barbecue turn into a tale of woe, to be retold years from now.

One party hostess recalled a disastrous event that involved hot oil, alcohol, a paper tablecloth and fireworks:

“The oil to fry the turkey was too hot and too full (yes, we fry our turkeys in Texas). Maybe it had to do with the over-served [read: one too many alcoholic beverages] cook. But once the turkey went in, the oil bubbled over, caught the paper tablecloth on fire, and lit the grass on fire.”

The grass fire then ignited a pile of fireworks, which were supposed to be on the porch. This in turn “led to one huge fireball, screaming crying children who will probably never recover from the panic that was set throughout, which then led to roof catching on fire.”

The damage tally was: one home partially destroyed, several cars damaged by smoke, a missing dog, $2,500 worth of poorly timed fireworks and three acres of burned grass. The lessons learned reported the wiser hostess: “We now monitor everyone’s booze intake, park cars far away, and only have one person know where the fireworks are. And I now cook the turkey with fire extinguishers nearby.”

Summer is truly party time in America. But homeowners should be aware of the risks associated with these get-togethers. Before reviewing safety tips, let’s look at three common risks for which a homeowner might need insurance coverage:

Liquor liability: Summer parties can be a breeding ground for drinking-and-driving accidents. Most homeowners know that they bear some responsibility if a guest becomes impaired after consumer alcoholic drinks at the homeowner’s house, and then causes a car accident. If the party-giver is sued, however, his/her homeowners and automobile insurance policies may not provide liability coverage. (Keep in mind that the legal defense against a claim is another significant expense for anyone who is sued in such a circumstance.)

Changes to homeowners insurance standard contracts in 2000 may limit the coverage available under a homeowners policy. Homeowners might be well served to check their homeowners and auto insurance policies (contacting their agent, if necessary) to determine what protection they may have.

Personal accidents on the homeowner’s property: A homeowners policy and an excess liability policy (dubbed an “umbrella” policy) provide broad protection for accidents on the party host’s property. For instance, if a guest tumbles down the steps of an outdoor deck or a child is burned by the outdoor grill, the homeowners policy would pay medical costs for the guest (and, should a lawsuit follow, likely would pay the costs of defending against the lawsuit and damages awarded in the case).

No one, of course, wants to see such events occur, but accidents do happen. Homeowners coverage is designed to “make whole” a homeowner who is facing a liability claim due to an accident on his or her property.

Property damage liability: When guests drive to your party and park their cars at your home, the homeowner assumes risk. The possibilities of property damage range from a simple dent from a stray baseball, to a young driver releasing the parking brake and rolling the car into a tree, to an impaired driver going for a joy ride and damaging the car. A different example of property damage is the theft of a guest’s purse/wallet or valuable articles from the party-giver’s property.

Homeowners coverage pays for damage to another person’s property, if the homeowner is held liable. A homeowner’s negligence and omissions (i.e., failing to take steps that might have prevented an incident) are reasons that he or she can be found liable for damage to another person’s property.

To prevent accidents, consider some sensible safety precautions:

Grilling

Some 5,000 people are injured by charcoal, wood-burning and propane grill fires each year, according to the U.S. Fire Administration of the Federal Emergency Management Administration. Good safety practices include:

• Before using a propane gas grill, check the connection between the tank and the fuel line. Make sure the Venturi tubes (where the air and gas mix) are not blocked, and check hoses for cracks or damage.
• Never use a propane barbecue grill on a balcony, terrace or roof. And never grill/barbecue in enclosed areas, as deadly carbon monoxide can be produced.
• Keep a fire extinguisher or a source of water (a garden hose or four-gallon pail of water) near an outdoor grill or barbecue.
• While barbecuing, don’t wear loose clothing. Use long-handled barbecue tools and/or mitts that are flame resistant.
• Don’t squirt flammable liquids onto an open flame.
• Don’t leave a grill unattended.
• Keep matches and lighters away from children. Supervise children around outdoor grills, which are objects of curiosity.
• If using a charcoal or wood fire, dispose of hot coals properly by soaking them with water, then stirring to ensure that fire is extinguished. Never place them in plastic, paper or wooden containers.
• Keep alcoholic beverages away from the grill since they are flammable.

Drinking

Liquids containing alcohol cause the human body to lose more fluid, say health educators. So summertime drinking in the sun or heat can present hazards to health, including impaired judgment, balance and coordination. Consider these safety tips if serving:

• Use designated drivers.
• Make non-alcoholic beverages as available as alcoholic drinks.
• Stop serving alcohol before the party ends.
• If children are attending the event, remember that alcohol may seem more available to them at a party.

Dining outdoors

Food-borne illnesses favor the hot conditions found at outdoor events where food is not refrigerated or may be undercooked. The U.S. Department of Agriculture offers food safety tips:

• Cook foods thoroughly to safe minimum internal temperatures.
• Keep hot foods hot and cold foods cold. Hot foods should be heated and maintained at 140 °F or warmer with chafing dishes, slow cookers, and warming trays. Cold foods should be held at 40 °F or colder. Maintain cold by placing food dishes in bowls of ice or in a cooler.
• Live by the “two-hour rule”: Foods should not sit at room temperature for more than two hours.

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.

Do you own a condominium? To you, condo ownership may represent a feasible way to home ownership. Or maybe it represents a second residence in some exotic location you like to visit. Or maybe it’s an investment to generate rental income. Regardless of why you own, understand that insuring a condo is much different than insuring a traditional home.

Statutes and Paperwork

A thorough review of your master deed (often called declarations or “docs”) is necessary to adequately insure your condo. Unfortunately, these docs can be multiple pages of legalese that make it difficult to decipher insurance requirements. Further, your association’s bylaws may contain important insurance information. And if it wasn’t confusing enough already, some states have statutes which dictate condo insurance requirements.  For these reasons, a best practice is to review your insurance needs with a trusted insurance advisor, like your Trusted Choice^® independent agent.

Definition of Unit

Your docs should contain a definition of “unit.” This term is often used to define the boundaries of the property that you individually own vs. common property that is owned by the association or other entity. For example, boundaries may include the space you occupy as well as all real property located between the unfinished walls, floor and ceiling. Note that there is no standard definition of unit: All docs are different.

“Bare Walls In?” or “What I Bring In?”

Some docs will make the association’s insurance policy (often called “master” policy) responsible for all building items and fixtures including those located inside your unit. Such items may include floor coverings, kitchen and bathroom fixtures, built-in cabinets and counters, appliances and equipment. In this case, you are only responsible for insuring your personal property such as furniture, electronics, and clothing. You may also be responsible for insuring alterations you make to the existing floor plan, such as laying carpet over tile.

Other docs will make the master policy responsible only for real property that is located outside of the unit. In this case, you are responsible for insuring the items mentioned above including building items and fixtures located inside your unit. Some docs will specifically list the items that you must insure yourself, but others are not as clear. This is another important reason to review the docs with your independent agent.

Rental Units

If you plan to use your condo to make a few extra bucks, proceed with caution: Once you rent or make your condo available for rental, your insurance changes. For example, once your condo is made available for rent you lose coverage for your personal property. This means items like furniture, electronics and decorations are no longer insured. Since condos often are rented furnished, this is a large gap that must be addressed before the damage happens. Coverage is also eliminated for appurtenant structures—such as a detached garage or dock—if damaged once the condo is rented or made available for rent.

This practice also eliminates the personal liability coverage under your condo insurance policy. This means if someone renting your condo injures someone else or their property and you are brought into the lawsuit your condo policy will not pay to defend you.

All hope is not lost. Most condo policies can be easily amended to close these significant coverage gaps. Your Trusted Choice^® independent agent can also help you evaluate how much your policy will pay you for lost rental income if your condo is damaged.

Loss Assessments

There are many reasons why your association may render an assessment against you. There are circumstances where your condo insurance policy will help pay the cost of the assessment. One circumstance is if you are assessed to pay costs for which the association is liable due to a loss that would be covered by your condo policy.

For example, say you are assessed for dollars to repair damage to common property (i.e. a pool house). The reason you were assessed is because the damage exceeded the amount of insurance available in the master policy. If the damage was caused by windstorm, the assessment coverage under your condo policy would kick in because windstorm is covered by your policy. However, if the cause of the damage was flood your policy would not pay because flood is not covered by your policy.

Your assessment coverage will also kick in to help cover the cost of the master policy’s deductible. It may also pay for liability assessments resulting from claims of bodily injury or property damage as well as liability for your decisions as an uncompensated association director or officer.

The dollar amounts of such assessments are unpredictable and depend on factors that are out of your control. This is why you should work with your trusted advisor to raise the amount of coverage your policy will pay for an assessment.

Properly insuring your condo is complicated. A professional independent agent can help you secure the insurance you need to eliminate surprises if the worst happens.

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 catchy phrase “spring ahead” signals change for Americans. It’s a reminder to move clocks ahead one hour for daylight savings time. And it’s an optimistic forecast that warmer and sunnier weeks are ahead. With these seasonal changes, millions take on “spring cleaning” of homes, garages, and yards.

When you’re longing to get outside in the spring months, consider several simple steps to enhance safety for you and your family. After all, the numbers show where the danger is: Home accidents result in 10 million emergency room visits each year in the U.S., according to Home Safety Council estimates. Many injuries occur in garages and near doorways to a home.

Here are some suggestions for an effective spring safety sweep:

Check fluids. Look under sinks, in bathrooms, closets, garage and basement for liquids that include chemicals. Look for potentially hazardous liquids including: cleaning solvents and disinfectants; oil-based paints, primers and thinners; gasoline, kerosene, motor oil, anti-freeze, windshield washer, and other car products; insecticides, pesticides and fertilizers; and charcoal lighter fluid.

Safely discard any liquids that are unneeded or expired, based on the manufacturer’s instructions. Proper disposal is usually best accomplished with a community-based program. Typically, pouring hazardous materials down a sink, on the ground, or in a storm sewer—or placing them in the garbage—is not a safe option.

Cap, label and raise. Safely cap containers containing chemicals of any kind. If these materials need to be kept, make sure they are labeled correctly. Raise up (out of the reach of children and pets) any containers with hazardous materials.

Ventilate. Make sure petroleum-based products and other products with noxious fumes are not stored in a confined space such as a basement or closet. Nor should they be near a heat source. Springtime also is a good time to have chimneys professionally cleaned.

Check alarms. Housing codes typically require smoke and carbon-monoxide alarms in a residence. Consider adding these safety devices in garages and basements. Check the batteries in all smoke and CO alarms.

Clean up clutter. Many trip-and-fall or fall-from-above accidents happen because houses are cluttered near doors. Garages, basements, and attics are places where many homeowners put things out of the way—only to find them “by accident” come springtime. Clean up for safety’s sake.

Separate for safety. In the garage and basement, make an area for bikes, balls, and toys—away from potentially dangerous areas and items such as fuels, paints and power tools.

Prepare for an emergency. Make sure all entrances and exits to your home, including through the garage or basement, are clear. Place a first-aid kit and flashlight in the garage and basement. Mount a fire extinguisher in the garage, and train adults how to use it based on manufacturer’s directions.

Check appliances. Check appliance hoses for dishwashers, refrigerators, washers, and dryers. Danger signs: crimping, cracking or other damage on power wires, supply/discharge hoses, and vents. If you have a sump pump, test it—before spring downpours and melting snows do.

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.