Freezing temperatures not only can affect driving conditions, it can cause havoc on your pipes.  One of the most common claims(other than sump-pump failure) at your home is a frozen pipe bursting and leaking water to all parts of your home.  It is common and costly.  Broken pipe claims average $15,000.00 of damages to your personal property or structure.  A lot of times it is easily prevented if you take a couple additional steps in your planning and maintenance.

1. Be smart or don’t be cheap: If you are selling your house or you own a property your in between renters take extra precaution.  This seems so simple but many people forget about this.  There are those people that are cheap and don’t want to spend the money on heating a property that is not being used.  Okay, we can understand that mindset.  Please spend the extra money though to have the house properly winterized. Now, if pipes break you can go after the winterizing company to pay for damages instead of your own pocket or insurance company.
2. Going on a trip: Have someone consistently go to the property and check on things if you planning on going on a trip or you know you are not going to be there for an extended period of time.  Document the visits on paper or take pictures with a date stamp to prove the visits.  Sometimes your insurance company will like to see some proof of visits to make sure it wasn’t pure neglect of the property.  Your insurance company wants to take care of you but laziness is not a covered claim.  The fact there are lazy people who try to beat the system now forces the honest people to show proof that you are not neglecting the property.
3. Staying at home: There is nothing wrong with controlling your utility bill.  Don’t let it get out of hand though.  Keep the temperature at your home warm enough to keep pipes in your walls thawed.  If you want to be safe, run your faucet with a slight trickle to keep water moving in your pipes to help prevent freezing.
4. Insulate your pipes: Slab houses typically have the plumbing running through the attic.  This will leave your pipe exposed to the high probability of a burst happening. Putting a heat tape around the pipes will definitely help keep pipes from freezing.   Insulate the pipe to prevent cold temperatures from reaching it. Find air leaks in your home and properly insulate.  Fireplaces and vents are areas of the house where cold air can easily penetrate and freeze unsuspecting pipes.

Don’t let freezing temperatures infect your home to only damage your prized possessions and property.  These are simple ideas but could make a big difference when taking preventative actions.

Have any other tips? Leave them in the comments below.

Recently, a situation came up with an insured that in the end is not going to be happy.  They have reached their policy limit with their personal property coverage.  Now, in retrospect everybody played a part in the displeasure of the client.  The agent, adjuster and restoration contractor all played a role in the communication breakdown.  How can we avoid this happening again?

Usually personal property coverage is only an issue when the insured has reached their policy limit.  Sure, some are annoyed by the process of replacing their contents.  They only get Actual Cash Value for their contents and then will recieve the depreciation that was applied when they actually buy and replace the lossed item.  But things really hit the fan when they are approaching or hit their limit of coverage.  Typically, this happens when the damage to their property was heartbreakingly bad.

Insurance Tips for your Personal Property Coverage:

1. Review your contents coverage every year when you renew your policy.  You can buy and store up a lot of new personal property in a year.  Did you buy some high ticket items?  Did you buy anything that might need to be additionally insured?  It may be time to increase your coverage.  Call you agent and discuss your options.
2. Stay in direct communication with your restoration contractor through out the process.  Things cost money.  The restoration contractor has huge costs they incur when managing your contents restoration.  Their bill is going to be higher that what you will expect.  They are trained professionals and have the technology to restore your property the right way.  Decide on your contractor and have them start the work.  Ask them before they clean anything to go over the bill personally.  This way you will understand exactly how much it is going to cost.  This cost comes out of your personal property coverage.
3. Storage charges add up.  Your contents are stored until your house his ready to be moved back in.  This cost is dependent on your whoever is repairing your home.  The longer they take to repair your home, the higher your storage charges are going to be.  This will decrease our available funds to replace your damaged contents.  Have a plan with your restoration contractor.  You need to know exactly how long the repairs are going to take and stick to the plan.
4. Keep a running total yourself.  It takes extra paperwork but you should know where you are in comparison to your limit.  Sometimes the adjuster is hard to get a hold of.  Some don’t want to give you information until they have everything turned in from you and the restoration contractor.  This will leave you in limbo.  Keeping track of the totals from all parties will help you make educated decisions.

We hope with these tips you can go through your claim with a little more knowledge to properly prepare yourself.  Decisions are going to be difficult but going in with out the proper knowledge will only make matters worse for you.

We here at the Insurance Paper wish everybody a safe holiday.  It’s a great time to reflect on the year and be thankful for the blessings that we do have, even though trials can be hard to forget. There is always something to be thankful for, just take a second and think.

Along with all this thankfulness, cooking and fellowship we tend to forget how to be safe while doing so.  Our minds are too consumed with hurring to get out the door to a relatives house or cleaning the house if company is coming over.

Let’s keep a couple things in mind to keep the holiday a festive one to remember and not a tragic one.

Insurance Tips for Cooking:

A recent study shows that 40% of house fires start in the kitchen.  This stat increases our odds for a possible devastating Thanksgiving.  Lets keep in mind some of these tips while we are making that fabulous turkey!

• If you need to walk away from your cooking station, find someone to overlook the situation while you step away.
• Keep pot holders, dishtowels, food packaging and clothing away from burners.  This is one of the biggest culprits of a kitchen fire.  Set a 2 foot safe zone around these areas to help prevent such a fire
• Make sure and clean your cookware, cook-tops and range hoods.  Grease and oil buildup can cause a serious fire when such areas get hot.
• Keep Children Away from the cooking area.  Children tend to get under our feet.  This can cause a tripping hazard causing something to spill on the unsuspecting little one. Set up a zone for no children.  I know it’s hard but maybe zone your kitchen as a no children zone.  Good Luck!
• Keep pot lids handy.  When your cooking on the stove and a fire occurs in the pan. Use pot lid, preferably the matching size, and cover it.  Never use water.

Insurance Tips for Driving:

• Do not drink and drive.  Thanksgiving statistically is one of the biggest drinking and driving holidays.  This may seem like common sense but please for my daughters sake don’t drink and drive.
• Defensive Driving.  There will be a lot of cars on the road. Which mean a lot of bad drivers.  Keep in mind that not everyone drives like you.  Be ready for anything to pop out causing a driving hazard.

We are thankful for all the readers out there and supporters making this site a great informational tool for the public.  We wish a great holiday for everybody and don’t forget to be safe!

The claim process can be full of priorities.  Paperwork, returning phone calls, proof of loss, unrestoreable contents and above all else the client should be the highest priority. One of the biggest problems; everybody is different.  Wow, that is really profound, I know.  But really, you have to truly grasp the idea when a claim is filed.  That first initial phone call to the insured after an insurance loss is yet another first impression for them.  How you handle the client will somewhat set the tone of how the claim will be handled going forward.

If you call and the insured has any ill will or uneasy feeling afterward, they could be on guard and defensive throughout the claim.  This can cause major delays in the process and possibly more money and time for you.  The goal at the end of the insurance claim is a happier client.  I chose “happier” intentionally.  You can’t always count on a client to be completely happy at the end of it all.  For one, them going through a claim, especially if it’s devastating, will never make them completely ecstatic at the end.  They usually have the feeling of “I wish this never happened to me” attitude.  I would consider it a successful claim process if you have a client “happier” at completion than when it first happened.  But obviously, if the client is happier at the end because they don’t have to work with you again is a bad thing.

Every client I have run into can be put into one of these 5 categories.  But, the same client can be in different categories at different parts of the claim.  I’ve handled insured’s that went from “The Crier” to “The Laugher” in a period of 5 minutes.  Handling the insured properly throughout each category will only help your chances of a successful claim process.

The Crier

There is nothing more uncomfortable then getting on the phone or in person and talking to a hysterical person.  How can you truly say “I understand” if you have never gone through a claim as severe as the one they just went through?  The goal with this type of insured is to make it all about them.  When you are making first contact, let them be and give them all the time in the world.  Handle them slowly.  Give them comforting words like, “I’m sorry for your loss(meaning insurance loss)”,“Is everything going at the pace you are comfortable with?” and “What can we do to help you right now?”  They need comfort and stability to know everything is going to be okay.
This type usually will go from “The Crier” to another type through a little time.  How you handle them now will help them go straight to “The Cheerleader” and hopefully soon.

The Hater

This is one of the most difficult to handle. These insured are usually bitter about what just happened and sometimes with just cause.  More than likely they are really upset about the loss because it was either something that was done intentionally to them (vandalism, break in, arson) or a dumb mistake by someone else (left sump pump unplugged, spotty work by a previous contractor).  Sometimes, who can blame them?  I would be just as upset.  But they don’t know how this is affecting the claim process.  Everybody will be walking on eggshells around them.

This is one area where you want them to feel like you understand.  If the same thing happened to you, by all means tell them you went through the exact same thing. Now, if you haven’t had this happen to you, say things like “I would be upset if that happened to me” or if the client is pretty vulgar you should be safe to say “That would piss me off” without them looking down at you.  In fact some will actually feel better.  The client wants to feel justified for being upset.  By giving them that feeling they will feel better about themselves and calm down over time and move to “The Cheerleader” insured.

The Laugher

There are people that deal with rough situations by laughing or being too jovial. Beware, underneath could be any of the other types laying dormant ready to come out.  Treat this delicately.  You should give in a little to the humor to find out what their true feeling is about the situation.  Then you can handle them accordingly.  This is a tough predicament to be in.  Please don’t be too involved with the humor because they can take it the wrong way and go straight to becoming “The Hater.” Sometimes, there are a few people that are just that way.  It is in their blood.  They like to laugh and be happy.  This isn’t a bad thing.  Be careful and on your toes a little just to be on the safe side.

The Challenger

This is a handle full of people that have too high of expectations.  They don’t understand the process and never will.  Most of the time it’s a long road ahead and there is nothing you can do to weather the storm.  It’s almost impossible for them to understand that you want to help and you understand.  At the end of the claim some will leave your agency no matter what happens.  In this case, pull out your insurance handbook, dot your I’s and cross your T’s.  Please don’t lose sleep over it.  Try your best but don’t cater because you will lose your mind and it will never stop.  Please understand that you will run into this group of people again and again.  It helps getting through it.

Sometimes, client like this are craving for someone to put them in their place.  They actually enjoy and need it.  You can transform this person by telling them off in a nice but direct way.  “Mrs. Jones, you have too high of expectations.  Stop.  We want to help you but you have to let us do our job.”  It may come time for you to stick your heals in the ground.  If you are not that type of person to be confrontational have someone else in your office do it.  Just don’t break your company policy by using the wrong words.

The Cheerleader

Every other type has the possibility to transform into “The Cheerleader” client.  Really, that is our goal isn’t it?  These are the best to deal with.  We, unfortunately by human nature, try harder for these people.  We go WAY beyond what is expected.  These clients are going to be our major cheerleaders for us down the road.  They do their part of the claim, ask quality questions and let us do what we love.  Often, they may be a little too involved but we don’t mind and actually understand why they are doing it.

The only thing that can ruin this relationship is if you REALLY screw it up.  Too many phone calls not returned can make this turn ugly.  If this relationship goes sour, we have nothing to blame but ourselves.  Just do the job that you love, servicing people, and you shouldn’t have any problems.

Conclusion

Every insured has different needs.  Identifying those early is the key to success.  This will help decipher what path you are going down and what path your going to take to bring them to “The Cheerleader.” When I make the first contact with the insured I try and asking them a question up front and see how they respond.  If it’s a fire loss, I ask “I was just informed you had a fire at your home, is everybody okay?” and gauge their response. Servicing the client is our number one goal and priority.  Anything we can do to help them become “The Cheerleader” will help them be a happier client in the end.

“Oh, we cannot do that because my insurance company will never approve of it!”

“If I have a little fender bender my rates will go up!”

How often have we heard that we just have no say with the insurance companies because all they do is collect premiums and deny claims?

Or, my favorite, your rates are just too high, I cannot afford it!!

When the first insurance companies began, they were merely a community co-op. Some smart business men thought that if they collected a small amount of money from the populace, they could help pay for big claims. If your house burned down or you died, the family could get some small re-imbursement.

The idea grew and the owners of the co-ops began to invest to help grow the funds. If the fund was larger they could help more people and it would not cost anyone very much. Through the years, their funds did grow and people were paid when the bread winner died.

At one time, a life insurance document was a single page and the beneficiary designation always read: “Pay proceeds to bearer”. So the first person to go through the deceased belongings got the “spoils”, because all he/she had to do was present the document and get the money! Needless to say, that system changed and evolved until today you must have a named beneficiary. The beneficiary must have an insurable interest……..meaning they will suffer financially upon the death of the policy holder.

Then came property and casualty and the fun really began.
Now, you want to insure your car, pick up, etc, anything that moves around the country.

As you have probably noticed there is some difference in premiums for what appears to be the same coverage, if you ask different companies.

Behind the scenes the rates are largely based on your driving habits, including how many miles you drive and what the accident ratio is in your area. So if you live in a community or city with a lot of “crummy” drivers the rates will be higher for everyone in that problem age group.

When we start to complain about insurance companies, we need to remember that there is a lot of cost involved so that you can have a policy and be protected.

Always rely on your agent for the best advice. They put in a lot hours of study and research on your behalf. Believe it or not, it matters a lot to them if you are happy. They have a lot of guidelines in which to operate, so be patient when you chose your agent. He/She will be there for you when you need them the most.

Post Provided by Jo Anne Morris [Email Her]

A fire at someones property can be one of the most devastating things that can happen. Damages can range from a small smoke damage from an over cooked turkey to a total destruction from a candle fire. This results in the family misplaced out of their home for months while their house is getting reconstructed. Living in an extended stay hotel room or rental home with rental furniture is not enjoyable and it is stressful. Nothing can really make this situation an enjoyable one but maybe, just maybe, we can provide a couple tips to help make it a little less stressful.

Pick your restoration contractor quickly.

At the same time, don’t pick one that you’re not comfortable with working with for months. Contractor selection is a tough choice but having your house sit there will only make your situation more difficult. The damage will worsen the longer it sits dormant. Soot will start to stain and bleach what ever material it sits on and sometimes this secondary damage will not be covered by your insurance company. If the secondary damage is a result of you delaying the process, it is not covered. If the delay is caused by your insurance company, government agency, or Cause and Origin, it should be covered.

Don’t Pick a general contractor, home builder or family member.

You want to pick a restoration contractor to perform your services. A normal remodeler, home builder or family member do not know the insurance requirements or process to properly deodorize your home. A good restoration contractor should guarantee that you will have no residual odor from the fire that devastated your home. Also, they know how your insurance adjuster likes to see the estimate written, paperwork flow and plan. Most normal remodelers don’t even know where to begin or have the products to clean and deodorize properly.  If you hire your family member, it is going to be quite awkward if you have to ask “When is this going to be done.”

You don’t need an estimate to pick your contractor

Most insurance companies have a “Premier Service Company” list. This is a list of contractors they have pre-approved based on applications, history and quality. This is the best choice for you. Please ask your adjuster for recommendations. Plus, if you go this route, they can get started with demolition of the the work based primarily by verbal approval from the adjuster. This can save weeks of time, because they can start while an estimate is being written. It’s okay to trust the insurance companies list of contractors. Most of the big insurance companies have done a lot of time and homework to find quality restoration contractors. This can consist of background checks, financial background check and interviews.

Be prepared for the long haul.

The process to restore you home or property will take longer than a normal remodel or home build. The process is completely different. When you have the relationship triangle of an insurance company, insured and restoration contractor it gets a little crazy with paperwork and communication. It could take a month from the date of the loss for a worker to even begin to start hammering a nail. Estimate, permits, building code and money from the insurance company are all factors of delaying the start of work.

You can plan on your contractor to able to do $25,000 – $50,000 worth of work at your property per month. If the structure part of your loss comes to $100,000, you can plan on a 3-4 month process. That is, if you are doing your part of getting things done in the loss.

Don’t be a part of the delay.

You, the insured, can be one of the biggest delays in the whole process. Getting selections from the insured can delay the process weeks and even months! Some material needs to be ordered and getting it in can take weeks to be delivered. Kitchen cabinets, for one, can take 4 weeks to come in. Carpet can take up to 7-10 days to be delivered. The windows have a 2-4 week lead time. If you think to yourself “oh, the contractor is no where near to installing kitchen cabinets, I have time,”… your delaying the process. You want to make sure everything is selected and ordered for when the time comes to install the material, it is already in their possession.

Get your paperwork in.

You will have your share of paperwork to complete throughout the process. Getting these completed in a timely manner will only help your chances of a smooth, efficient work flow. Mortgage Company Forms, Proof of Loss, Unrestoreable Contents List, Selection Sheets, Contracts are just a couple of examples of some forms you will have to fill out. Please, read them carefully, and get them completed.  Ask questions if you don’t understand the wording or legalities.

Conclusion

We know you just went through a traumatic experience.  It’s hard to focus and do your part when you see your house in shambles.  These tips only will help expedite the process and keep it running smoothly.  In the end, we hope the only traumatic experience was the loss itself not the process of getting your house back together.

So my good buddy, Chris, along with his lady pal moved down south last year. Long story short they have decided to move back to good old Boston Massachusetts. I guess they got tired of the warm weather and missed the snow. I got a call from Chris this morning (I promise this story is true) and he said “hey Duff, the wife and I are renting a U-Haul to move all of our stuff home, should I purchase the auto insurance on the rental?

We get this question a lot. Although, the conversation usually goes like this; INSURED: “Hi this is Billy Button and I’m a Duffy Insurance customer and I’m in Vegas for my good pal’s bachelor party right now. I’m trying to get a rental car and they are asking me if I want to purchase the insurance on it. Should I buy it? To cover their behinds most insurance agents always recommend purchasing the coverage. That’s the lazy answer! But, below is some stuff your typical insurance agent may not tell you. (If you travel outside the U.S. the following does not apply. If you are traveling anywhere for business, then the following does not apply).

As an auto insurance buyer here’s some of what you need to know about getting insurance on a rental car.

We are going to assume that you rent a car in the U.S. that is similar in style and value to what you own, then your own auto insurance should cover the rental car. Always call your insurance agent to double check. If you have collision coverage on your personal auto insurance then it should cover you for the rental car. But, if you do not have collision coverage on your policy, then obviously you do not have collision coverage on the rental. This is the same with all the individual coverage on your auto insurance.

The tricky stuff:

1. Should you not choose to purchase the insurance from the rental company and rely on your own insurance, the vehicle that you have at home is not supposed to be driven by anybody.
2. Should you rent a vehicle that is nothing like your own, (My Buddy Chris in the above example) then your personal auto insurance will not cover you in most cases. So, buy the insurance if you want coverage!
3. If you are not listed as a named insured on your policy at home, then coverage will not follow you from that insurance policy. So buy the coverage at the rental counter! (Please note a named insured is different from being listed as a licensed operator).
4. An issue when declining to purchase the coverage from the rental car company is that typically your primary auto insurance company will not cover the loss of use. This usually gets charged to your credit card by the rental company and can be a nightmare. Loss of use is the money that the rental car company would have made by renting during the time that the car was being fixed. We have heard a few cases in which the rental company charged the renter’s credit card on file for loss of use.
5. Credit Card companies are typically an X factor when renting cars. Some credit card companies will offer certain types of insurance coverage for rental cars complimentary. We strongly recommend contacting them as certain ones will pay for the loss of use talked about in the last point.

So my advice to my good pal Chris and his lady friend was to buy the insurance on the U-Haul. Obviously, since there are many factors involved, it really depends on the situation when determining whether or not to buy the coverage from the rental company. I know when I go away I always purchase the insurance. We have seen too many cases where people get burned for not doing so. When in doubt call your insurance agent, credit card company, and insurance company.

Provided By @DuffyInsurance

In my opinion renter’s insurance is one of the best deals in the business(besides term life insurance but I will save that talk for another day). Most people assume when renting a home/apartment they are covered with the complex or the house they live in. This is RARELY the case.

Using an apartment complex for example “they” only cover the structure of the buildings. We like to say from the dry wall out. The tenant is usually responsible for the dry wall on in. Now I have never owned an apartment complex nor do I know many people who do, so in no way am I speaking for all rental dwellings, I am just speaking from experience.

Most people that do rent, don’t feel the need or do not even know about renters insurance. As I stated before this is one of the least expensive coverages insurance companies offer. I am currently renting, I have 25k worth of coverage and I pay less than $20 a month. So if my house catches on fire or gets broken into I am insured up to $25,000. Now maybe I will never file a claim under my renters insurance, but I sure do feel better while I’m away knowing that if anything were to happen I would be able to purchase all my belongings back.

In closing, maybe you are one of those people who didn’t know about renters insurance before this, and maybe you are someone who has had renter’s insurance forever. Either way, I do believe that renter’s insurance should be a part of your insurance package, if you are a renter, as much as homeowners insurance is a part if you are a home owner.

Any questions feel free to email me, or go to my website. www.amfam.com search for me.

Guest Article Written By Adam Viet (@adamviet)