New Bling from Your Valentine? Make Sure It’s Covered

Thursday, January 26th, 2012

If you receive an expensive gem or a new Valentine’s Day bauble, make sure you have the  necessary insurance.  While no one can put a price on sentimental value, insuring your jewelry
will keep it financially protected if it is lost or stolen.

 What you should know about insuring your jewelry:

Jewelry can be covered in a standard homeowner policy under your existing policy. Types of  losses are theft, fire, windstorm,  and vandalism. However, all policies have limitations.

Steps you can take for the right coverage:

Have jewelry appraised and keep a copy of the appraisal in case you need to file a claim.
Ask your agent about adding an endorsement to cover your new item.
It is always good practice to review your policy whenever you purchase new, expensive items.

If you are an Erie Insurance Policyholder, you probably have a $3,000 limitation for the theft of personal items unless you have purchased an endorsement for the policy. If you own jewelry, watches, furs or precious stones that are worth more than $3,000 combined, or any one item is more than $3,000, you may want to purchase an additional endorsement on your existing homeowner’s policy.

Erie Insurance offers Policyholders various options to protect valuables. Those choices include:

1. Purchasing an expanded or enhanced endorsement. For an additional premium, Policyholders can increase their coverage limits from $3,000 to $5,000 for extra theft coverage. With this option, the most a Policyholder can claim on any one item is $3,000 and the homeowners deductible applies.
2. Purchasing a personal inland marine policy. Erie Insurance Policyholders can add an endorsement to an existing homeowners policy or purchase a separate personal inland marine policy for expensive items such as jewelry, furs, watches or precious stones. This type of policy provides all risk coverage, including theft, misplacement or losing a valuable item. The policy can be purchased with no deductible; or, for a premium credit, a deductible can be applied.

When you purchase an item with considerable value like jewelry, you should contact your Agent immediately. Find out how much coverage you have and if any additional coverage is needed.

 

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How to Avoid Unpaid Claims When Your Home Is Damaged

Friday, June 10th, 2011

As your Insurance Agents our job is to give it to you straight, so you can make the right decisions for you. Sometimes that means delivering some “tough love”. This is one of those times, so put on your thick skin for some no-nonsense advice.

Q: What’s more upsetting than a claim that’s not paid? A: One that could have been…but isn’t!
Three important starting points:
1) Your insurance policy doesn’t “cover everything”, though many people mistakenly think it does. And that mistake can be quite costly. Your policy is a contract that spells out what is and isn’t covered.
2.) Your policy is not a one-size-fits-all purchase. There are many optional coverage’s that do not come with a standard policy, especially on home insurance.
3) You may say we’re trying to sell you something. You’re right! If we don’t tell you what’s available, and try to “sell it” to you, then you could have unpaid claims!
Our job is to help you protect your stuff and your financial security. If you don’t want to buy the protection available to you that’s OK. But don’t say we didn’t tell you about it.
Here are some of the more common areas that lead to unpaid, or partially paid, claims. This list is by no means a total policy review. It’s just some food for thought.

Dwelling Value
This is the amount of insurance you have for the home itself. This number needs to be enough to rebuild your home-considering demolition, site cleanup, reconstruction costs and more. Construction costs have increased over the past decade, despite the flat real estate market, and many homes are now underinsured. It’s an easy fix. We can run a new replacement cost estimate and adjust your policy appropriately. Otherwise, you may find yourself paying for some of the damage to your home out-of-pocket.

Home Improvements
Perhaps the biggest cause of unpaid claims is home improvements. Those that you didn’t tell us about! Why? Such improvements usually, but not always, increase the amount of insurance you need. But if you don’t tell us about it, we can’t advise you one way or the other. If you have Erie’s Ultracover policy, you may know that you get guaranteed replacement cost on the dwelling..a very nice feature. But!Have you read the contract, your policy? Here’s what the policy says in part…
“You are required to notify us or our agent of any improvements..which exceed $5,000…If we are not notified we do not cover loss to such improvements…” Have you notified us?

Finished Basements
Unfortunately, this one gets a lot of people. Home insurance does not cover water damage caused by surface, or below surface water that enters your home, including your beautiful, finished basement.
If you have sump pumps in your finished basement you can purchase an endorsement, call Water Backup or Sewer & Drain Backup, that can give you some protection. But you have to buy the endorsement! Otherwise, you’re on your own when such damage occurs. We also recommend getting a backup system on your sump pump, which should help if there is a power outage.

What Should You Do?
Talk to us. That’s why we’re here. We’ll go over the options available to you, and we’ll explain your risk versus the price to protect against that risk.That’s what insurance is all about.
Sure, nobody likes to talk about insurance. We know that. But isn’t talking about it now better than having an unpaid claim later? You bet. Ultimately, the choice is yours.

*This article provides general educational information only as a service to our clients. When conflicting language exists, your policy takes precedence over any information in this article. You should always obtain advice from a licensed Insurance Agent before changing your policy.

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Clear The Decks! Get Ready For Spring and Summer

Tuesday, May 24th, 2011

There’s nothing quite like sitting back on a comfy outdoor chair, or dining al fresco, when the sun’s up and all seems right with the world. But if that’s the sort of opportunity you have on your mind right now, maybe you should be getting a little groundwork done. And, if you have a patio or deck, that means checking it for wear and tear, making repairs and sprucing it up for the best of the spring and summer months.

The life expectancy of a wooden deck is around 10 to 15 years and the Home Safety Council reckons that in any one year 20 million decks may be a risk of collapse. It’s a serious business. On average, one or two people die every year and about 60 people are injured when their deck collapses. You can improve your safety factor and achieve the highest deck life expectancy, and maybe even extend it, by doing an annual check, replacing damaged or missing items and by cleaning and treating the wood with preserver.

The First thing to check out is the overall structure, starting with the state of the wood or composite material and the fixtures that hold the whole thing together, especially the connection – the ledger- that fastens the deck to your house. Make sure you look underneath your deck, using a flashlight, checking for metal corrosion or missing fixtures, and rot or ignore cracks in the boards and posts. Don’t try to repair any of these items-replace them. With ground-level patios, usually concrete or tile, the main safety issues are slippery surfaces and cracks. Broken tiles can be replaced but slab cracks are a bigger challenge. You can use a filler to seal the cracks but, in the longer term, the patio will have to be replaced, especially if cracks cause part of it to slope towards the house. Slippery surfaces, usually the result of moss, are best dealt with by a high-pressure cleaner. You can buy solvents at your local hardware store to loosen or even remove moss but there’ll likely be a residue to be pressure washed. None of these jobs is particularly peasant but by doing them now you’ll be able o sit back and enjoy the outdoor experience when the time comes!

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Garage Owner Outraged – Your Information Is Safe!

Thursday, September 2nd, 2010

The other day we got a fax from a garage owner who wanted to give us a piece of his mind. He was quite upset. Why? He needed an ID card for an inspection, and the owner didn’t leave one with the car.

Well, our policy is pretty simple. We don’t release your information to anyone without your permission. So, in such a case, we’ll call you to make sure it’s OK. Why?

First, there are privacy laws – the Graham-Leach-Bliley Act of 1999 for one, and the Pennsylvania Information Security Program Regulation for another.

Now, in all honesty, I haven’t read either of these laws word for word. I leave that to the attorneys. But I know what they say … we are legally bound to protect your information from all unauthorized access, period. I and my staff take that responsibility very seriously.

Second, identity theft is one of the fastest growing crimes in America, perhaps the world. I’m not going to release information about you to someone else just because they call and ask for it! It doesn’t matter if they claim to be a family member, a mortgage company, a bank, a car dealer, another insurance agent … or a garage owner. For all we know, the person on the other end of the phone is a criminal. It’s unlikely, sure. But I’m not going to be the one who takes that chance, when all it takes is a simple phone call to you to make sure.

Here are only some of the other ways we protect your privacy …

• We have a written Information Security Program in compliance with state law. All employees are required to read, understand and sign off on their responsibilities for protecting your information.
• We maintain the most modern computer firewalls to stop hackers from getting into the system. PLUS … we have a consultant try to hack in to ensure the firewalls are working!
• All documents – with as little as just your name on them – get cross-cut shredded and turned into confetti!
• And, going back to the beginning of my story … we don’t release your information to anyone without your permission.

Well, this garage owner was beside himself. But don’t worry! We don’t let anyone bully us into violating your privacy. We simply call you and get your permission. Almost every one of our clients thanks us for contacting them first. They appreciate us protecting their information.

Can it be a small hassle sometimes? It can be. So, here are some tips to help you avoid the hassle…

1. Whenever possible, give current documents to third parties, so they have no need to contact us.
2. If that’s not possible, give us a quick call or e-mail in advance and let us know who you’re dealing with. That way, we can help them immediately when they contact us. This is especially important when buying a new car!
3. Make sure we have your current phone numbers, so we can get your permission pronto when needed.

Privacy laws are in place to protect YOU. Yes, sometimes they get in the way of a hassle-free life. Unfortunately, we can’t have it both ways. So, rest assured we place the privacy of your information first. The hassle of a 30-second phone call today far outweighs a stolen identity. I hope you agree.

Thanks for your business!

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Who’s To Blame When A Tree Comes Down?

Thursday, September 2nd, 2010

The Answer Defies Common Sense

Springtime means thunderstorms and high, gusty winds. Sometimes those winds bring down trees. And sometimes those trees land on your stuff!

The damages caused by such an accident are covered under your home policy – which is nice. However, your deductible applies, and that means money out of your pocket. Plus, it puts a claim on your record, which could affect your future rates and eligibility for insurance.

With that in mind, what if your neighbor’s tree falls on your property? It doesn’t seem fair that you should put a claim on your policy and pay your deductible out of pocket, does it? After all, it’s HIS tree!

Here’s a phone call we’ve had many times with our clients… “Hey, my neighbor’s tree fell on my property. He’s responsible for that, right? The unfortunate answer…probably not.

Warning: Insurance Content

Generally speaking, responsibility for damages in an insurance claim comes down to a question of negligence. The negligent party is responsible for what happened.

For example, the guy who runs a red light and causes a car accident is responsible for the damages, because he was negligent when he ignored the traffic signal. In real life it may not be that black and white, but you get the idea.

But what about when the wind blows a tree over? Things are definitely not cut and dry now! (Leaf pun intended!) Think about this…

There’s a tree standing in your neighbor’s yard. Here comes the wind, and now the tree is laying in your yard. Your fence is broken, and your shed is smashed. Can your neighbor, or anyone else, be found negligent on behalf of the wind?

Live Trees Versus Dead Trees

An argument can be made – and has been made many, many times – that there’s a difference between live trees and dead trees. No, not the difference of one being alive and the other not, smarty pants. I mean the potential for negligence to apply differently depending on the tree’s health.

Clearly, if a live, healthy tree falls over, who could have seen that coming? But what about a dead tree? What about one that’s been dead for quite a while now? Every day that tree remains upright it poses a greater and greater threat of falling over. Surely, the tree’s owner can see THAT coming, right? Wouldn’t a conscientious person cut that tree down to remove the hazard? And, if they don’t cut it down, is that negligence? Are they responsible for the damages that tree causes when it falls?

I’d love to answer with a resounding, YES! Because it’s common sense, isn’t it? The dead tree poses a hazard. If the property owner doesn’t cut it down they are negligent in their “non-action”, right?

Common Sense And The Law Don’t Mix

Unfortunately, it’s not that simple for the courts or for insurance companies. Based on past court decisions, the insurance company knows they can’t win that argument. Your neighbor won’t be found negligent for a tree that falls over, even a dead one. Even though it makes perfect sense to the rest of us, the courts don’t agree.

But wait … there’s something you CAN do to protect yourself.

What To Do About Dead Trees That Threaten Your Property

First, if you’re the owner of the dead tree – or any tree that’s unstable in any way – cut it down. Don’t wait any longer. Get it taken care of. A dead or unstable tree is a hazard to both property and people. The last thing any of us wants is someone to be badly injured, or even killed, by a falling tree … especially a tree that should have been removed long ago.

Second, if the offending tree is in your neighbor’s yard, the claims department recommends the following.

Start with the neighborly approach. Talk to your neighbor and explain your concerns. See what they say. Most people are reasonable, and they may get on it right away. Problem solved. If you’re so inclined, you may even want to chip in on the removal cost.

If talk gets you nowhere, put it in writing. Put your concerns in a letter, keep a copy for your records and give it to your neighbor. If something does happen, you have proof that you pointed out the hazard to your neighbor. And since your neighbor refused to act on that knowledge, it’s much more likely he’ll be considered negligent, and, therefore, be responsible for the damages to your property.

If you’re really motivated, you can also contact your municipal authorities. You may be able to convince them that the hazard the tree creates is so dangerous that they will require your neighbor to have it removed. Nobody likes strained relationships with their neighbors. But nobody wants to be crushed by a falling tree, either. Which is worse?

What About Live Trees?

Forget about live trees. You’ll never convince a court that your neighbor was negligent by not cutting down a live, healthy tree.

If a live tree falls from your neighbor’s property onto yours, just accept it as an act of nature. Stuff happens. Yes, it stinks, but it’s nobody’s fault. And the good news is your home insurance covers it.

Why Won’t The Insurance Company Cut Down My Tree For Me?

You can’t have a discussion about falling or hazardous trees without somebody smugly bringing up this point. It sounds like this…

“If this tree falls it will cause a lot of damage, say $20,000 worth. It will only cost $1,000 to cut it down. I’d think the insurance company would rather spend $1,000 to prevent the accident than spend $20,000 after it happens. Hah!” Yeah. Nice try.

Your insurance protects you against sudden and unforeseen events. That’s the nature of insurance. You are responsible for maintenance of your property. If you buy the tree argument above then why wouldn’t the insurance company also replace the brakes on my car for me before I rear-end someone? Or replace my bald tires that are guaranteed to cause me to slide in the next rain storm? Or fix the leak in my upstairs toilet before the pipe bursts and really causes some damage? Where would you draw the line? And who would make that decision? Insurance companies drew the line long ago. And they won’t be budging on it anytime soon! You are responsible for maintenance. They will pay when accidents happen.

In summary, remove dead trees promptly. Compel your neighbor to do the same. Put it in writing if you have to, and keep a copy just in case his tree winds up in your yard.

Posted in Gannon Insurance, Homeowners Insurance, Umbrella Insurance | 1 Comment »

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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