Give Your Gifts with Peace of Mind

Imagine you receive or give a beautiful piece of jewelry this Holiday season only to have a stone fall out after a warranty has ended, and upon examination of your home insurance policy, find that the jewelry was not covered for this type of loss.

Not all homeowner’s policies cover the loss of expensive gifts, but fortunately, you can add valuable items insurance. Valuable items insurance is a blanket endorsement that expands coverage to protect certain valuables against all risk of physical loss anywhere.

Valuable items insurance also does not count towards your homeowner’s loss surcharge in the event of a covered loss because no deductible applies in most circumstance.

This Christmas, if you receive a valuable gift, or if you’re considering giving, enjoy your gift with peace of mind knowing that Hunter Insurance has you covered.

Call Hunter Insurance today to learn more about insuring your valuable items at 401-769-9500.

Happy Holidays!

Steps to Take to Reduce Exposure to Water Damage Losses

Water damage losses can create severe financial difficulties, particularly since not all water losses are covered by the homeowners policy. There are numerous ways by which you can safe-guard your home from water damage losses, including the following.

• Your home’s drainage system should be checked to verify that proper water drainage occurs. For example, gutter downspouts should extend the proper distance from the foundation.
• Your yard should be properly graded to slope away from the home to allow surface water to adequately drain.
• A sump pump system should be considered in your basement to keep unwanted water out of this vulnerable part of your home.
• Your washing machine hoses should be periodically checked since these hose failures cause millions of dollars of water losses each year. Hoses should be replaced at the first sign of wear. Many adjusters recommend that insureds upgrade to the heavy-duty wire mesh hoses or stainless steel hoses during this replacement.

Personal Catastrophe Planning

The prevalence of major catastrophes such as tornadoes, floods, and hurricanes drive home the point that personal catastrophe planning is an essential part of any personal risk management program. Catastrophes, whether natural or man-made, can strike individuals and families at any time without warning. You should develop a comprehensive disaster plan that addresses the following nine items.

1. Identify hazards in your home, such as frayed wires or large amounts of gasoline stored in the garage. Hazards should be reduced as much as possible.
2. Learn first aid and CPR skills, which can lessen injuries after they occur.
3. Make certain your children learn your full name, address, and phone number at the earliest possible age.
4. Develop an emergency evacuation plan. For example, you should work with family members to establish escape routes and rehearse these periodically.
5. Establish a disaster meeting place and an outside family contact. For a sudden emergency, a location right outside the home should be arranged. Consider designating a friend or relative in another city as a common contact through whom the family can communicate if separated by a disaster.
6. Keep an adequate water storage supply to use in the event you become stuck in your home. Several days’ worth of bottled water should be stored in a cool, dark location.
7. Prepare a food supply, including canned meats, fruits, and vegetables. You should include a manual can opener and disposable utensils and plates along with the food.
8. Store emergency supplies, such as a first aid kit, flashlights, batteries, prescriptions, and a lantern.
9. Prepare a portable pet disaster supply kit for pets, including dry food, potable water, and proof of vaccination. Proper identification on the pets is essential.
10. Practice, modify, and maintain the plan every 6 months.

Steps to Take to Reduce Exposure to Water Damage Losses

Water damage losses can create severe financial difficulties, particularly since not all water losses are covered by the homeowners policy. There are numerous ways by which you can safeguard your home from water damage losses, including the following.

• Your home’s drainage system should be checked to verify that proper water drainage occurs. For example, gutter downspouts should extend the proper distance from the foundation.
• Your yard should be properly graded to slope away from the home to allow surface water to adequately drain.
• A sump pump system should be considered in your basement to keep unwanted water out of this vulnerable part of your home.
• Your washing machine hoses should be periodically checked since these hose failures cause millions of dollars of water losses each year. Hoses should be replaced at the first sign of wear. Many adjusters recommend that insureds upgrade to the heavy-duty wire mesh hoses or stainless steel hoses during this replacement.

Proper Coverage for Your Jewelry

Many people overlook the need to properly insure their expensive jewelry, believing that it is automatically covered by their homeowners policy. While homeowners policies do cover jewelry, this insurance usually is subject to a much lower limit than the overall contents coverage. This is called a “sublimit,” and a typical sublimit is $1,500 for loss by theft of jewelry, watches, and precious and semiprecious stones. If your jewelry is worth more than the sublimit in your homeowners policy, you should consider purchasing specific insurance to cover it. The following is a good process to follow.

• Arrange an appointment with your agent to review your jewelry coverage. Bring as much information about your jewelry portfolio as possible, including any appraisals.
  
  
• If you have not had your high-valued jewelry appraised within the last 3 years, consider obtaining an appraisal from a reputable jeweler. Insurance companies often require an appraisal from a graduate of the Gemological Institute of America (GIA) on more expensive jewelry. The Institute’s G.G., G.J., or A.J.P. designations at the end of an individual’s name indicate that the jeweler has achieved a high level of professionalism with an education backed by a respected nonprofit organization.
  
  
• Make sure the appraisal has a description of the diamond’s four C’s—(a) carat, (b) cut, (c) clarity, and (d) color. The “carat” refers to the weight of the diamond. The quality of the “cut” of the diamond results from the way light enters the stone and is reflected back. “Cut” is also used to refer to the diamond’s shape, such as round or pear-shaped. The “clarity” refers to the prevalence of minor spots, lines, bubbles, or other natural imperfections within the diamond. The “color” denotes the tint a diamond may possess. Remember that the better the appraisal, the fewer problems you will encounter with the insurer if you ever have to make a claim.
  
  
• Purchase inland marine coverage that can be added via an endorsement onto your homeowners policy. This endorsement (also available as a separate policy) provides much broader coverage than the limited protection found on the unendorsed homeowners policy.
  
  
• Consider keeping any valuable jewelry you rarely wear in a safety deposit box at your bank.
  
  
• Review your jewelry protection with your agent at least every 2 years or whenever you sell or purchase high-value jewelry.

Why Purchasing a Personal Umbrella Policy is a Wise Decision

One of the most important insurance policies you can buy is the personal umbrella policy, but many people are unaware they need one. This policy provides high limits of liability to protect you against a catastrophic liability loss. It pays after your homeowners or personal auto policies’ limits have been exhausted. For example, a major car accident in which you severely injure sev-eral persons can result in damages easily exceeding your personal auto policy’s liability limits. Losses that result in injuries to numerous people, head injuries, and death are often covered by a personal umbrella policy. In addition to providing higher limits, this policy normally pays for some losses not covered by the underlying policy, such as legitimate allegations concerning libel or slander.

Personal umbrella policies are growing in popularity. In the past, only wealthy individuals and families purchased this coverage. Today, middle-income families also may procure this policy for protection in our society’s increasingly litigious climate. As the tendency to sue for damages rises and awards granted by the courts grow, the personal umbrella policy is increasingly seen as an insurance necessity, rather than a luxury. It is especially attractive because of its relatively low cost.

In particular, you should consider purchasing a personal umbrella policy if you have certain
characteristics or engage in certain activities, including the following.

• Your total assets are greater than your underlying liability limits.
• You are financially responsible for the actions of a young, inexperienced driver.
• You live in an exclusive and affluent neighborhood.
• You have a high profile career or high income.
• You frequently host guests on your property.
• Your residence includes a swimming pool.
• You own waterfront property, a farm, or a ranch.
• You own watercraft or aircraft.
• You own numerous rental properties.
• You engage in extensive international travel for pleasure.

Reducing Auto Insurance Fraud

The insurance industry calculates that property and casualty insurance fraud costs our society over $30 billion annually. According to some estimates, this insurance fraud adds about $200 to $300 annually to total insurance premiums for the average household. Auto insurance fraud accounts for a large segment of these losses, which are ultimately passed on to you, the auto insurance consumer, in the form of higher automobile insurance premiums.

Auto insurance fraud can occur in a variety of ways. For example, unethical groups of doctors and lawyers can team together to overtreat patients and thus exaggerate claims. Staged accidents are also a common problem, in which a conspirator’s car pulls in front of an innocent driver’s automobile and stops suddenly. This causes the innocent driver to rear-end the conspirator’s vehicle. Thus, the innocent driver often believes he or she is negligent. Typical victims are usually driving alone in new and expensive vehicles. In many cases, the criminal driver uses a large, older sedan with several passengers inside.

There are several ways by which you can avoid becoming a victim of these “staged accidents,” including the following.

• Avoid tailgating at all times and focus on driving defensively.
• Obtain the names and driver’s license numbers of all occupants in the other car.
• Attain the names and key information of witnesses.
• Report your suspicions to your insurance agent immediately.

In addition, auto insurance companies emphasize several key steps drivers can take to fight auto insurance fraud in general, including the following.

• Be aware of all the various ways in which auto insurance fraud can occur. Your agent is a good source for this information.
• If you believe you are a victim of auto insurance fraud, report your concerns to your agent.
• Communicate with your legislative representative about this issue and request new laws to assist the fight against automobile insurance fraud

Top 10 Contractor Hiring Tips for Homeowners

Your home is probably your most valuable asset. Properly maintaining your home is a key factor in the retention and growth of its value. This factor is one reason why it is important to hire highly qualified contractors when making major repairs or renovations to your home. The following 10 key rules should be followed when selecting a contractor to work on your home.

1. Be wary of contractors who solicit business door-to-door or via cold calls. In addition, avoid contractors who quote you a price that will automatically go up the next day or week if you don’t accept it immediately.
   
   
2. Obtain recommendations from friends, family members, and neighbors about experienced and reputable contractors who have performed excellent work for them.
   
   
3. Ask for a written estimate from the contractor that includes any oral agreements the contractor makes in this process. The estimate should contain a line-by-line breakdown of costs, including materials and labor. In addition, ask if there is a charge for an estimate. If there is, avoid dealing with this contractor.
   
   
4. Obtain at least three estimates along with the names and phone numbers of two former customers of the contractor. Contact these customers and ask about the work performed.
   
   
5. Do not automatically select the lowest bidder. Their work may be lacking in quality.
   
   
6. Verify that the contractor is licensed, bonded, and properly insured. Ask for certificates of insurance for workers compensation and general liability policies.
   
   
7. Contact the Better Business Bureau to see if complaints have been filed against the contractor. This can be performed via the Bureau’s Web site at www.bbb.org.
   
   
8. Avoid dealing with a contractor who asks you to pay for the entire job before the work begins. The standard practice is to pay 33 percent of the job up front.
   
   
9. Get a copy of the proposed contract. Ideally, it should include a hold harmless clause in your favor, particularly for major work such as when heavy equipment will be used in constructing a swimming pool. A hold harmless clause specifies that the contractor will indemnify you with respect to your liability to members of the public who are injured or whose property is damaged during the course of the contractor’s operations. The contract should also explicitly specify the work to be performed, the start and end dates, payment agreements, and warranty information.
   
   
10. Ask a knowledgeable friend, relative, or attorney to review the home repair contract before you sign.

Protect Yourself from Identity Theft

Identity theft occurs when someone appropriates another person’s personal information without his or her knowledge in order to commit fraud or theft. These identity thieves may open charge accounts in the victim’s name and thus borrow money and even perpetrate felonies.

The Federal Trade Commission found that complaints of identity theft have increased rapidly during the last several years. The U.S. Secret Service estimates that consumers nationwide lose hundreds of millions of dollars to identity theft each year. According to the Identity Theft Resource Center, the normal victim spends approximately 550 to 700 hours clearing his or her
credit record. What can you do to reduce your chances of becoming a victim?

• Your credit record should be checked each year to verify all the information is accurate. In addition, you should contact your creditors if your bill does not arrive in time. A missing credit card bill could mean an identity thief has taken over the credit card account and changed the billing address to cover his or her tracks.

• All old financial documents, including bank statements and credit card bills, should be shredded to reduce the exposure to what is called “dumpster diving.”
  
  
• You should not carry your Social Security card with you; rather, it should be secured in your safety deposit box.
  
  
• You should avoid using an unlocked mailbox, such as at your residence, to drop off out-going mail, since mail can be easily stolen.
  
  
• You should not print your Social Security number or driver’s license number on your personal checks.
  
  
• Ask your insurance agent about an identity theft endorsement providing protection if your identity is stolen.

Maintain That Home!

Many consumers have faced rapidly escalating insurance premiums on their homeowners insurance during the last few years. In some cases, consumers have experienced difficulty in procuring insurance, particularly people with several claims. However, there are numerous measures that consumers can take to lessen the possibility of future losses, resulting in more readily avail-able insurance down the road and more affordable premiums.

The following tips offer ways of saving premium dollars and reducing losses on your homeowners policy.

1. Replace washing machine hoses when they show signs of deterioration. Consider replacing them with stainless steel hoses, for which your insurer may provide you a discount. The hoses should also not rub against the wall. In addition, turn off the washing machine water faucet when the appliance is not in use to prevent leaks.
2. Maintain your roof in optimal condition. A quality roof inspection on a periodic basis can identify sections that need repair and thus prevent water losses. Roofing materials containing high wind resistance features should be considered in windstorm-prone areas.
3. If you experience a water leak, make sure it is properly repaired and promptly remediated, which can include the removal and replacement of building materials such as sheet-rock. For larger water leaks, a professional who specializes in remediation should be called in. These measures will reduce the possibility of hazardous and expensive mold losses down the road.