How to Make Sure Your Contractor Won’t Stick YOU With His Lawsuit!

Tuesday, June 15th, 2010

When you hire a contractor to work at your house, or your business, you take on some additional risk.

The contractor’s actions can directly impact you. You could be dragged into any problems he creates on your property.

If the contractor has insurance, the chances of you being dragged in go down. But if the contractor’s not insured, then you become the target.

If he damages someone’s property, you could be responsible for repair or replacement. If he hurts someone, the injured party is going to sue you, too…anywhere they can get money.

That’s why you always…without fail and without exception…want to make sure the contractor is insured before they set one foot on your property. Here’s what to do…

1. Request a “certificate of insurance” when you hire the contractor. This is a one-page document prepared by the contractor’s agent or insurance company that shows what insurance he or she has. It also shows that it’s been issued to you.
   Only the contractor’s agent or company can produce a certificate. So, if the contractor pulls one out of his brief case for you, beware! That’s a red flag that he may not really be insured anymore. Some contractors have been known to reproduce their own certificates after cancelling their insurance. Therefore…
2. Always call the agent or company on the certificate and verify the policies are actually in force. You might be surprised what you find out!
3. Then, call and verify again the day before the job is supposed to start.

If the contractor dropped the insurance, drop him as your contractor. Otherwise, you guarantee that his problems will become yours.

We have lots of contractor friends and clients. They’re upstanding business people who make sure they invest in insurance to protect themselves and their customers. Make sure you work only with those kinds of people.

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Spring Rains Are Coming, But Water Damage Is NOT Covered! Here’s What You Need To Know…

Tuesday, March 23rd, 2010

The exclusion sections of your policies are, arguably, the most important part of them. Why? Because that’s where you find what’s NOT covered. And that means YOU retain the risk of loss for those conditions. Uh-oh.

In your home policy, one of the most important exclusions in- volves water damage.

There are lots of ways water can damage your home. Some of them are covered, and some aren’t. Here are some examples that ARE covered…

1. A thunderstorm blows off a section of your roof allowing the rain to come in. The water damages your ceiling, walls, furni- ture and flooring. That water damage IS covered.
2. A pipe burst behind the wall in your bathroom. The water damages the wall, the ceiling below and rips onto your furni- ture. That water damage IS covered.

When you think about the examples above, you’ll realize that something happened to your house first, which then led to the wa- ter damage. Those causes of loss (called the “proximate cause” in insurance language) – wind and a burst pipe in my examples – are covered by your home policy. So, the water damage that ensues is also covered. That’s how it works.

So, when is water damage NOT covered? Plainly stated…when the water that causes the damage comes from the surface of the ground…from underground…or from sewer or drain backup the resulting damage is NOT covered by a standard home policy.

Surface Water

Surface water is water that is laying on the ground or flowing across it.

Your home policy will not pay for damage caused by surface water. It doesn’t matter where that water came from.

It could come from an overflowing creek or river, a standing pool of water due to hard rains, run off from a poorly designed swale, or whatever. If the water is on the ground and damages your home, your home policy excludes that damage.

Also, the damage caused by spray that comes off such surface water has a lot of dirt in it doesn’t change anything. Damage caused by mudflow is not covered in your home policy.

Underground Water

Water below the surface of the ground can seep into your home or pool. It can crack sidewalks, vault driveways and crack founda- tions. None of this damage is covered, either.

Backup of Sewers & Drains And Sump Pump Overflow Damage from these sources of water are not covered, either.

Can I Get Protection For Water Damage That Is Excluded By My Home Policy?

Yes, you can…except for underground water. Nobody will in-damage caused by surface water, mudflow, sewer or drain backup, and sump pump overflow.

Protection For Surface Water Damage

To protect yourself for damage caused by surface water you need a flood policy. Now, don’t let the work “flood” fool you. A flood policy covers “unusual and rapid accumulation or run off of surface water from any source.” For insurance purposes, a “flood” is not limited to overflowing rivers and streams.

However, a flood policy contains its own exclusions! The most important to our discussion are…

1. The accumulation of water must be “unusual and rapid.” Therefore, if your yard pools with water every time it rains, that’s not unusual. And it’s not covered.
2. The “flooding” conditions must affect two or more acres of normally dry land or two or more properties (including yours).

So, even if you have a flood policy, if the flooding condition is isolated to your property, and covers less than two acres, the resulting water damage is not covered.

Protection For Sewer & Drain Backup And Sump Pump Overflow

You can add this protection to your policy if you want it. There are limits and exclusions, as always. So, discuss it fully with your Protection Coach to see if it’s right for you.

This is an especially important protection if you have a finished basement. If your sump pump fails – and water damages your floor- ing, furniture, etc. – that damage is excluded by your standard home policy. But it’s covered when you add the appropriate endorsement. Talk to one of the Agents at the Gannon Agency.

What Should I Do?

Water may be essential to life, but it’s the greatest enemy of homes and property!

The most important thing you can do is to first understand that water damage, as I explained it above, is NOT covered by your home policy.

Then, knowing that, be sure to do everything you can to main- tain your property to keep water from pooling and/or flowing onto it. Because, in the end, you’re probably going to be on your own if your home suffers and damage.

And, finally, check with the Gannon Agency on whether a flood policy, or an endorsement for sewer & drain backup and sump pump overflow, would benefit you. We’ll discuss with you as to what’s available and what’s appropriate.

Remember, no insurance policy “covers everything”. Your home policy involves more that 39 decisions and options that impact how, and if, your claims will be paid! Yes…more than 3 dozen!!!

Protecting against water damage requires you to make some of those decisions. And we’re here to help you do just that. Thanks for your business!

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State Cracks Down on Auto Insurance Lapses!

Tuesday, March 23rd, 2010

Don’t ask me why, because I don’t know why. I only know what we’ve seen in our day- to-day operations. The DMV seems to be paying close attention to lapsed car insurance policies and, more importantly, enforcing the laws surrounding registered vehicles with no insurance.

Why should that matter to you? Because a series of mistakes could land you in some hot water! Here’s how to easily keep this major hassle out of your life.

What the Law Says

I’m not offering legal advice, and I can’t cover the entire Motor Vehicle Code here. (Nor would I want to – as if insurance isn’t boring enough already?) But here’s an important part of it…

Simply stated, PA state law requires you to insure all registered vehicles. If you drop the insurance on a registered vehicle – regardless if it’s intentional or not, and even if only for a day – your registration is subject to a 3-month suspension. You must return the registration plate, sticker, and card to the DMV.

However, if you reinstate your insurance quickly, you can avoid the suspension by signing an affidavit declaring that nobody operated the vehicle while it was uninsured. The catch? Falsifying this statement is a misdemeanor.

I Didn’t Mean to Drop My Insurance!

If you cancel your insurance intentionally, then this article really isn’t for you. But what if it cancels by accident? What if it’s only for a few days? The DMV doesn’t really care! Here’s how it could happen to you.

Your insurance company sends you renewal notices and installment bills depending on your payment plan choice. If you miss the payment, they send you a cancel notice with a cancel date. If you don’t pay by the cancel date, they cancel your policy, you’re without insurance and they notify the state.

Most companies then allow for an “easy reinstatement” – which means they’ll accept your payment for a certain period of time and reinstate your policy. That’s nice for you. BUT…easy reinstatement does NOT mean your policy wasn’t canceled. It was. It creates a “lapse” – the period of time you were without insurance between the cancel date and the reinstatement date.

The DMV requires you to declare that nobody operated the vehicle during this lapse period. Otherwise, your registration is suspended for 3 months.

Now, let’s face it. We MUST have our cars, right? With the prospect of a 3-month suspended registration, most people are going to sign the affidavit – even if they drove the car every day during the lapse period.

What’s the solution? There’s only one I know of… Don’t get into this position in the first place! Here’s how.

How to Keep The DMV Out of Your Life

Pay your car insurance bills on time. Your policy can be canceled if your payment is late, period. And the insurance company is under no obligation to reinstate your policy… even if they’ve done so in the past.

Pay attention to everything you receive from your insurance company. It’s not junk mail! Open it. Read it. It could save you from a painful mistake. If you’re not sure what it’s telling you, we’ll help!

Switch to automatic payments. Each company offers automatic monthly deduction from your checking account. You can’t miss a payment and have an accidental lapse this

Call the Gannon Agency if you receive a late payment or cancel notice and you think you paid the bill. We’ll work on your behalf to get things straightened out… BEFORE your insurance lapses.

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Putting Your Cell Phone on ICE

Friday, January 15th, 2010

What would happen if you were incapacitated and paramedics didn’t know who to contact? A good friend of mine experienced this frightening situation a number of years ago when his mother-in-law was at the hospital for an appointment and collapsed in the waiting room. Through the quick actions of medical personnel she was resuscitated and then placed in intensive care. Unfortunately, she had nothing in her purse to indicate who to contact in case of an emergency. It was hours later before her family realized she was “missing”; and then it took a series of calls before they were able to determine her whereabouts and rush to her bedside.

I just recently learned about a simple and effective way to provide emergency responders with a quick link to your emergency contact(s). The idea is that you store the word “ICE” in your cell phone address book along with the number of the person you would want to be contacted in case of emergency. (Incidentally… I.C.E. is an acronym for In Case of Emergency.)

If you have multiple contacts you can use ICE1, ICE2, and so on. Another great idea is to also enter the name of the individual.

Here are a few additional suggestions to help you get the most out of ICE-ing your cell phones. Make sure…

1. …the person whose name and number you are using has agreed to be your ICE contact.
2. …your ICE partner has a list of people to contact on your behalf, including your place of employment.
3. …to always include every phone number for that individual – home, work and cell.
4. …your ICE partner’s number is one that’s easy to contact. For example, a home number could be useless in an emergency if the person isn’t home.
5. … your ICE partner knows about any medical conditions that could affect your emergency treatment. For example, any allergies or current medications.
6. … to encourage your family, friends and loved ones to make an ICE entry in their cell phones, especially if it will give them peace of mind. Always include written emergency contact and medical information elsewhere as a safety precaution.

At this time, ICE is not so commonly used that paramedics know to look for it. We hope increased worldwide awareness will make it a universal application in the coming years. Tell a friend and help spread the “ICE”.

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The Emergency Contact Program

Thursday, January 7th, 2010

Click here to download the The Emergency Contact Form

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19 Reasons to do Business with Gannon Insurance Agency

Thursday, January 7th, 2010

1. GREET YOU with a real person – no irritating maze of button pushing
2. ANSWER YOUR CALL  in three rings or less
3. RETURN YOUR CALL the same day – normally in less than 45 minutes
4. ANSWER YOUR QUESTIONS on the spot OR get back to you within 24 hours
5. MAKE CHANGES to your policy in less than 10 minutes
6. FOCUS on proper protection at all times
7. TO BUILD our Protection Team with only the most competent, professional, and friendly people in the industry – this means you will always receive the HIGHEST level of service
8. RECOMMEND limits to assure that you are protected against lawsuits
9. MAKE YOU FEEL like you are our only client
10. RETURN ALL OF YOUR UNEARNED PREMIUM if you should decide to cancel your policy for whatever reason
11. REVEAL INSIDER SECRETS on how to get the best pricing
12. PAY YOUR CLAIM as quick and fair as humanly possible
13. PROVIDE TIPS on leveraging your deductible so that you save money each and every year
14. HELP YOU UNDERSTAND your policy
15. EXPERIENCE – Our licensed Agents have over 63 combined years of insurance experience and regularly pursue continuing education
16. PROACTIVE – we make an effort to review your policy before the next renewal and send you updates or options to save you money
17. CONSISTENT RATES – we will not lower your premium one year to hook you and spike it the next!
18. PROVIDE you with Quick/Free ways to conveniently contact us at all times: office: (215) 891-9990, steve@gannonagency.com or Fax (215) 891-9995
19. 24/7 DIRECT CLAIM REPORTING

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