Posted on Wed, Sep 01, 2010
Current models show Hurricane Earl tracking closer to the U.S. East coast than earlier anticipated. The storm is projected to pass 125 miles east of Cape Hatteras on Friday and 150 miles east of Long Island and Cape Cod on Saturday.
We want to ensure you are prepared should the storm approach your area. Please review the following information and familiarize yourself with these important inspection and safety tips in the event that Hurricane Earl strikes close to home.
Before
- Understand the difference between a hurricane watch and a hurricane warning. A hurricane watch means that a hurricane may occur within the next 24 to 36 hours. A hurricane warning means that a hurricane will probably strike your area within the next 24 hours.
- Prepare a survival kit (see below).
- Plan your evacuation route in advance of the storm.
- Close storm shutters and board up all windows.
- Stock up on drinking water and non-perishable goods.
- Have a supply of batteries and be sure you have flashlights and a portable radio in good working condition.
- Review how to shut off utilities in an emergency with all family members.
- Secure all outdoor objects or move them inside.
- Secure your boat or move it to a safer place.
- Fuel your car in case you must leave immediately.
During
- Listen to the radio for important storm information and instructions.
- If at home, stay inside and away from all windows, skylights and glass doors. Do not go outside, even if the weather appears to have calmed. The "eye" of the storm can pass quickly, leaving you outside when strong winds resume.
- If you must evacuate, leave as soon as possible and be sure to tell someone outside of the storm area where you will be.
After
- Stay tuned to the radio or television. If you have had to evacuate, return home only after authorities advise it is safe to do so.
- Avoid downed power lines.
- Beware and check for gas leaks or electrical system damage.
- Make temporary repairs as necessary.
- Promptly report the loss to us by calling 800-922-8381 and if we cannot answer, select your carrier from the menu.
Survival Kit
When preparing for a disaster, be sure to make a survival kit that includes:
- Canned or other non-perishable food
- Non-electric can opener
- First aid kit and manual
- Portable radio and/or television
- Flashlights
- Extra batteries
- Water in non-breakable containers
- Prescription medicines as needed
- Extra clothing and blankets
- Emergency cash and credit cards
From: Travelers
Posted on Wed, Sep 01, 2010
In Massachusetts, you are required to carry uninsured motorist coverage however, underinsured motorist coverage is optional. It’s important to understand the differences between the two and why you should consider increasing your limits.
What is uninsured motorist coverage?
Uninsured motorist coverage can pay medical expenses and lost wages in the event that you are injured in an auto accident in which the driver of the other car is at fault and has no insurance (including hit and run accidents). Although Massachusetts is a mandatory insurance state, there are many uninsured vehicles on our roads. The majority of these vehicle owners have no insurance due to non payment and they continue to drive because either they feel they have to or because they did not realize their coverage had been cancelled. Other uninsured vehicles are from states which do not require insurance and the car owners have opted not to purchase insurance.
Why do I need increased limits of uninsured coverage?
- If you are injured in an accident in which the other driver is at fault (including hit and run accidents) and you cannot work for 6-12 months, it would be helpful to collect some money from your insurance carrier.
- If you or a family member suffered injuries after being hit by an uninsured car while walking on the road or while riding a bicycle, it would be helpful to collect some money from your own insurance carrier.
Why might I not need increased limits of uninsured coverage?
The best argument for not purchasing additional coverage would be if you and your family members had a strong disability income policy in force. In effect, uninsured motorist coverage acts like disability insurance and as a result additional coverage may not be necessary.
What is underinsured coverage?
Underinsured motorist coverage will pay for medical bills and lost wages if you are injured in auto accident and the at-fault driver has little insurance. Your policy will pay you for any damages above the amount of bodily injury coverage carried by the at fault driver up as high as the limit of underinsured coverage you purchase. For example: the at fault driver has a $20,000 per person limit of bodily injury, you carry $100,000 per person of underinsured coverage and your injuries and lost wages amount to $40,000. The other drivers insurance would pay you $20,000 and your own policy would pay you $20,000 for a total of $40,000.
Why do I need underinsured coverage?
- Many people have bodily limits of $20,000 per person and $40,000 per accident. The $40,000 per accident limit may need to be shared by 3 or 4 people . Is $10,000 or even $20,000 enough for you to survive if you are out of work for 6 months to a year? How about two years?
- You have children that are driving in other people’s cars or perhaps teenagers or young adults who are driving in a friend’s cars. If your child is injured in a car accident in which the driver is at fault and does not have high enough insurance limits to pay for the injuries and damages to all of the injured people in the car.
- If you were running, walking or riding a bike on the street and were hit by a car whose owner had very little insurance, this coverage would cover you.
Why might I not need underinsured coverage?
Again, a strong disability income policy may be a good reason not to carry high limits of coverage as long as all of your household members are insured.
As a family with multiple vehicles, can we increase the uninsured/underinsured limits on just one of the vehicles?
The answer is yes if you or your family members are injured in accident and the other party is found to be at-fault but, only if you are driving the vehicle with the increased limits or are in someone else’s car or as a pedestrian. However, you cannot rely on the higher limit coverage if you were driving the car with the lower limits during the accident.
Posted on Wed, Sep 01, 2010
From: Brett C. Meade, Ezine Articles
Aside from the obvious differences between homes and condominiums, there is one crucial difference to keep in mind: the type of insurance coverage you will need. While homeowners need to purchase insurance on all of their property, condo owners are generally responsible for covering only a part of their property. It is important to know what sort of insurance you're going to need, depending on what your condo association requires. You don't want to end up spending more than you need to by covering things that your association already covers, or not buy enough insurance to cover things that your association doesn't cover.
A condo association is very similar to a homeowner's association. Both monitor and maintain common areas, like the neighborhood, or the complex in a condominium's case. Both also collect monthly or annual fees in order to pay for the maintenance. The main difference between the two is that condo associations also use some of the money collected from owners to pay for insurance for the common areas, the condominium building itself and the association's liability insurance. The theory is that all condo owners are collectively responsible to insure the areas that are shared among them. Typically, condo owners are responsible for insuring their own unit, and the condo association will take care of everything (via dues) beyond that. You can find out exactly what is covered and what is not by looking at your condo association's master policy. Even though your condo association may cover a lot, savvy owners still have individual unit insurance as well. This will protect you if your condo is burglarized, if there's interior water damage, or if someone is injured inside your unit.
Some policies cover the entire unit, from the exterior walls in, including interior fixtures such as floors, countertops, sinks, etc. Other types of policies may cover less than that; it is not uncommon for a condo policy to cover the building itself (walls, floors, ceilings), but not interiors such as countertops, cabinetry, sinks, etc. Condo owners whose associations have less coverage for individual units are in greater need of individual insurance for their unit. While homeowners usually start by insuring their property and the exteriors, condo owners should do the exact opposite. The latter should assess interiors (furnishings, electronics, etc.), then calculate in what part of the structure they are responsible for individually.
After you decide exactly what needs to be covered within your condo, you have a couple of options as to what type of insurance to get. You have to decide between replacement cost or cash value coverage. In cash value coverage, depreciation is calculated in, while in replacement cost coverage, it is not. For example, say you had to replace a 5-year-old laptop. In cash value coverage, your insurance company would look at how much you originally paid for the laptop, calculate in 5 years of depreciation and send you a check for what that laptop was worth today. In replacement cost coverage, the insurance company would pay you for what it would cost to replace the laptop today. Just like in any other insurance situation, you must weigh the risks to decide just how much insurance you want to buy. Replacement cost insurance generally costs more than cash value coverage, but could end up saving you money should you need to replace something.
As far as association coverage goes, another important aspect to keep in mind is the deductible. In most cases, the association's insurance will not cover all of the damages, leaving a deductible for condo owners to pay. This deductible is split among the condo owners, so its good to know how much the association's insurance will cover; the left over is up to the owners. Another key element that should be covered in the master policy is what happens if other condo owners do not have adequate coverage? Say one owner cannot pay their portion of the deductible. Is their liability passed along to other owners? This should be outlined in the policy, and if it's not, ask!!
Though it may seem like a lot of work now to investigate and understand your condo association's insurance coverage, it is well worth it. The best way to protect yourself and your money is to make sure you know exactly what you'll have to pay for or are responsible for in specific situations. By understanding this, you'll be able to not spend more than necessary by covering things already insured by your association.
Posted on Tue, Aug 31, 2010
Let's start by dispensing with many of the myths surrounding umbrella liability coverage.
- It's just for the rich.
- It's too complicated to coordinate it with your existing insurance like your homeowners policy.
- The premiums are too expensive.
All of these myths are incorrect. Umbrella liability is relatively affordable, can be easily coordinated with your existing insurance policies and by no means is it just for the well-to-do.
Umbrella liability insurance is so named because it acts like an umbrella, sitting on top of your auto and homeowners liability policies to provide extra protection. (Even if you don't own a home, remember that you still need renters insurance to cover both your liability and your personal property). Some examples of where umbrella coverage often comes into play:
- An auto accident in which youre sued under your auto insurance policy.
- Your neighbor slips and falls on your property, and you're sued under your homeowners insurance.
- A natural disaster in which another person's property is damaged by, say, a tree on your property crashing down on their vehicle or home. This usually falls into the, "I thought that was covered by my homeowners policy" category.
Your auto and homeowners policies have at least some liability insurance that would be used to settle legal claims. But what if a settlement (or judgment, if it goes to court) is $800,000 and you only have $300,000 of liability insurance? The insurer would pay its $300,000, but where are you going to get the other $500,000? Virtually everything you own would be fair game to pay off the debt. The only good news is that some states protect certain assets (like your home) from seizure.
Worried? You should be. With Americas love affair with lawsuits, you cant afford to not have umbrella liability insurance.
Umbrella liability insurance pays $1 million, $2 million and sometimes even $5 million or more of a claim, on top of what your basic policies will pay. You're usually able to set the amount. For the protection you get, umbrella liability coverage is not very expensive. Premiums are usually $200 to $300 a year for $1 million worth of coverage. The cost depends on such criteria as the amount of coverage, the insurance company issuing the policy and your own "personal risk factors" (such as the number of traffic tickets you've gotten in the past few years, and possibly your credit report).
When people do buy, they often don't buy enough. For example, you may have assets worth $1 million, figure that you need enough coverage to protect your assets, and therefore buy a $1 million policy. But what if a judgment of $2 million is handed down? We often hear of juries awarding $20 million; it should be obvious that the amount of someones assets isn't taken into consideration. In either of these cases, you would lose all of your assets and still owe money. Your future income, if you have to make settlement payments over time, could easily be jeopardized. The same goes for any inheritance you may receive (it could easily be seized for payment), not to mention any inheritance you may want to leave your children.
How much you own is irrelevant when deciding how much to purchase. Do you live in a wealthy town, where you could be an easy target for a big settlement? Do you travel a lot? Do you entertain a lot? Do you operate a home-based business and have employees or clients coming to your home on a regular basis? (Many self-employed people wrongly assume that this is covered in their homeowners policy.) If you answered yes to any of these questions, it is particularly important for you to have umbrella liability insurance.
Umbrella liability insurance usually carries a high deductible of $300,000 or more. Its designed not to kick in until your other policies are tapped out. The illustration below shows how umbrella insurance is coordinated with your auto and homeowners policies. Typical umbrella policies require you to have homeowners and auto liability insurance equal to the amount of your deductible. Its a good idea to try and get your umbrella liability, homeowners, and automobile policies from the same company; theres usually a substantial premium discount. Additionally, you eliminate the potential nightmare of dealing with different insurance companies if something should happen, where each would likely try to shift payment responsibility to the others, leaving you caught in the middle.
Its depressing to think of all the liability risks you take, any of which can instantly decimate even the best financial planning strategy. Keep in mind that its fine to take calculated risks for example, if you don't drive your car every day and you infrequently have people on your property, you may decide that instead of spending money on umbrella premiums you'd rather take the risk that you will never be hit with a liability lawsuit. This strategy is called "self insurance." (In fact, you're automatically self-insured if you don't have any insurance coverage.)
Umbrella coverage, if nothing else, offers psychological comfort. Youll know that if your neighbor falls on your front steps or you rear-end the car in front of you that youre protected.
Source: Ginger Applegarth, MSN Money
Posted on Wed, Aug 25, 2010
There is a big difference between an insurance company canceling a policy and choosing not to renew it. Insurance companies cannot cancel a policy that has been in force for more than 60 days except when:
- You fail to pay the premium
- You have committed fraud or made serious misrepresentations on your application
- Your drivers license has been revoked or suspended.
Nonrenewal is a different matter. Either you or your insurance company can decide not to renew the policy when it expires. Depending on the state you live in, your insurance company must give you a certain number of days notice and explain the reason for not renewing before it drops your policy. If you think the reason is unfair or want a further explanation, call the insurance company’s consumer affairs division. If you don't get a satisfactory explanation, call your state insurance department.
The company may have decided to drop that particular line of insurance or to write fewer policies where you live, so the nonrenewal decision may not be because of something you did. On the other hand, if you did do something that raised the insurance company’s risk considerably, like driving drunk, the premium may rise or you may not have your policy renewed.
If your insurance company did not renew your policy, you will not necessarily be charged a higher premium at another insurance company.
Source: iii.org
Posted on Thu, Aug 19, 2010
From: Massauto.com
There are two types of rentals … the “I Have To” and the “I Want To” situations. The “I Have To” situation is when your car is inoperable due to an accident, theft or repairs. The “I Want To” situation is when you rent a car on vacation or a special occasion.
“I Have To”
With the “I Have To” situation, the rented vehicle is treated as if it is your own car: Your personal Massachusetts Auto Policy (MAP) defines YOUR AUTO as
- “The vehicle or vehicles described on the Coverage Selections Page.
- “Any auto while used as a temporary substitute for the described auto while that auto is out of normal use because of a breakdown, repair, servicing, loss or destruction …”
The GOOD news is that ALL of the coverages on your MAP will respond in the same way they would to damages to your own car. The BAD news is that may NOT be enough to make the rental car company happy.
Generally, a rental firm is looking for replacement cost (of a NEW vehicle) and loss of use (the value of the rental of the vehicle while it is disabled due to the damage that occurred while you had the vehicle).
It MIGHT make sense to purchase the coverage offered by the rental firm … BUT make sure you read the contract so you know exactly what the Loss Damage Waiver (LDW) actually cover!
“I Want To”
With the “I Want To” situation, the rented car is NOT considered YOUR AUTO. As a result, not all coverages would respond in the same way as they would in the “I Have To” situation. The following coverages would apply in the following manner:
- Bodily Injury and Property Damage apply as long as you are legally responsible for the accident while using an auto you own,borrow or rent.
- Medical Payments coverage follows you and household members while occupying autos owned by others.
In the case of Bodily Injury and Property Damage, the vehicle owner’s policy would have to pay its limits before your policy would respond.
The types of vehicles you can use and have your Bodily Injury, Property Damage and Medical Payments respond in the event of an accident are very broad. In BOTH the “I Want To” and “I Have To” situations, there are some policy exclusions. Your Collision, Limited Collision and Comprehensive coverages will follow only for “non-owned private passenger type autos. If you rent a car, van or SUV, these “physical damage” coverages would respond. Physical damage coverages would NOT respond to, for example, a rented motorcycle, motor home or moving truck.
Under what is commonly referred to as the “regular use exclusion,” some of your MAP coverages will NOT respond for a vehicle owned by or regularly used by you or a household member, and your policy also might not respond if a vehicle is rented for an extended period of time. Be sure to contact your agent or company for complete details.
In the event of a total loss or theft of a rented vehicle (“I Want To” or “I Have To”), the MAP will pay for the actual cash value (ACV) of the damaged, destroyed or stolen vehicle. As a result, you may end up paying out-of-pocket for the difference between the vehicle’s ACV and replacement cost as well as the loss of revenue because the vehicle cannot be rented during the time it is disabled. Be sure to read the rental agreement because each rental firm’s contract is slightly different! Again, it might make sense to purchase the CDW or LDW offered.
Some Other Important Considerations:
1. Your Massachusetts Auto Policy (MAP) is NOT worldwide! Your policy covers losses that occur in the United States (including Puerto Rico and U.S. territories and possessions) and Canada.
2. Some rental companies limit where the vehicle may be operated. Operating the car beyond those limitations is a violation of the contract. The MAP would NOT respond because the vehicle was not being operated with the permission of the owner.
3. Most rental companies require all drivers of the vehicle to be declared (and paid for) at the time of the rental. Use by an unauthorized person would NOT be covered under the MAP.
4. Most rental consider the rental contract VOID when anyone is driving under the influence in the rental car.
5. Some folks rely on their credit card to cover damages to a rental vehicle. Be sure to read your credit card contract to determine if there are any limitations!
Posted on Mon, Aug 09, 2010
From: Mass.gov
President Obama signed the Patient Protection and Affordable Care Act of 2009 -- the federal health care reform bill -- into law on March 23, 2010. The purpose of the law is to provide accessible health care coverage for an estimated 32 million Americans who are currently uninsured, and it will help people who already have health insurance retain their coverage. Some of the law's provisions are effective in 2010, while others will be phased in through 2020.
Massachusetts’ own health care reform law already includes some of these reforms, while others will mean changes for Massachusetts Health Insurers and consumers. This alert lists some of the initial elements of national health reform and what they mean for Massachusetts residents.
Limits on Annual and Lifetime Benefits
A health plan cannot limit the dollar value of essential benefits that an enrollee can receive over their lifetime
Most health plans sold in Massachusetts do not have lifetime limits. Those that do will have to eliminate them. This provision will apply to existing plans, as well as new plans. The new law does allow lifetime limits on some benefits that are not considered to be "essential health benefits."
A health plan cannot have an "unreasonable" limit on the dollar value of essential benefits that an enrollee can receive in a year
Most Health Maintenance Organizations (HMOs) in Massachusetts cannot have an annual limit on benefits. Other types of health plans are allowed to have an annual cap (for example, student health plans and young adult health plans may have caps); however, though there are some exceptions, health plans with annual caps typically do not meet the state’s Minimum Creditable Coverage (MCC) regulations.
Starting on September 23, 2010, a health plan may not have an annual limit on essential benefits that is less than $750,000. This limit will increase each year until January 1, 2014 - when, annual limits will be eliminated entirely. This provision applies to existing plans, as well as new plans. There can be annual caps on benefits that are not considered to be "essential health benefits."
Rescission
A health plan cannot retroactively drop an insured person from the plan, except in case of fraud.
Massachusetts already prohibits this practice.
Coverage for Preventive Care
A health plan must cover certain preventive services without cost-sharing
Insurers in Massachusetts are allowed to charge co-pays or other fees for preventive care, so this will be a new requirement for Massachusetts insurers. Preventive services covered by the new law include services rated A or B by the U.S. Preventive Services Task Force, immunizations recommended by the Advisory Committee on Immunization Practices, and recommendations to be issued by the Health Resources and Services Administration for screening and preventive care for women and children. This requirement will apply only to new plans, and not to existing plans that are "grandfathered" under the new law. Federal regulators determine what counts as a grandfathered plan.
Coverage for Dependents
A health plan must cover young adults on their parents' health plan until the age of 26.
In Massachusetts, health plans must allow a child to be covered on a parent's plan, until the child reaches age 26 or two years after the child loses dependent status (whichever comes first). The federal law is slightly broader than current Massachusetts law: it will allow young adults to remain on their parent's insurance policy up to age 26, without regard to dependent status. A young adult will be able to qualify for this coverage, even if he or she is no longer living with a parent, is not a dependent on a parent's tax return, and is no longer a student. There is an important caveat: young adults can be added as a dependent to a "grandfathered" group health plan only if they are not eligible for employer-sponsored insurance. If the young adult has any children, these children are not covered under the new law.
Coverage for Pre-existing Conditions
In Massachusetts, health plans cannot deny health insurance coverage for an individual because that person has a pre-existing condition. However, health plans can limit coverage of that specific condition for up to six months, unless the person has had continuous health insurance coverage. The new federal law does away with pre-existing condition exclusions entirely, but not until 2014. For children under 19, these exclusions will go away for plans sold or renewed on or after September 23, 2010.
Summary
| National Health Reform Requirement |
Change for Massachusetts? |
| No Lifetime Benefit Limits |
No change for most consumers |
| No Unreasonable Limits on Annual Benefits |
No change for most consumers |
| Rescission Prohibited |
No change |
| Preventive Care Covered |
Plans will eliminate co-pays for preventive care |
| Coverage for Dependants |
Slightly better than existing MA law |
| Coverage for Pre-existing Conditions |
No change |
Additional Resources
Many details of how these health reforms will be implemented are still being worked out by federal regulators. Here are some places to look for updated information, as it becomes available:
National Web Portal:
http://www.healthcare.gov
Office of Consumer Information and Insurance Oversight, U.S. Department of Health and Human Services: http://www.hhs.gov/ociio/regulations/index.html
National Association of Insurance Commissioners and Center for Insurance Policy and Research: http://www.naic.org/index_health_reform_section.htm
Posted on Mon, Aug 02, 2010
From: Insurance Information Institute
Posted on Mon, Aug 02, 2010
From: By Aimée Carrier at AAA Horizons
Senior citizens have unique health and wealth concerns. It’s therefore even more important to have the right insurance coverage for your lifestyle. To preserve your assets and your peace of mind, Frank Doyle, Senior Vice President of AAA Southern New England’s Insurance agency, offers this advice on which insurance to consider.
Medicare and Supplemental Insurance: There have been many changes to the Medicare program in recent years. Stay informed about any new developments. You should review your health plan and prescription plan (part D) every year to ensure that you have the appropriate coverage. You should also make sure that the plan you select has affiliated doctors and hospitals in the place where you live and/or visit most often.
Life Insurance: It’s time to review your policy to make sure you have the proper levels of coverage based on today’s estimated funeral expenses, as well as any medical bills or estate taxes your family might have to pay. If you do not have insurance, look for a guaranteed policy that will be issued regardless of age or health.
Long-Term Care Insurance: An estimated 43 percent of Americans over age 65 will require long-term care during their lifetime at a cost of more than $50,000 per year. Medicare and health insurance specifically exclude long-term care. Insurance coverage is appropriate for those wanting to protect their assets and remain in control of their own decisions. It’s also a great time to purchase this insurance. Many carriers have developed new policies that offer enhanced benefits such as cash payments to help family members care for you at home. There are also new tax laws that allow tax-free exchanges from annuities and life insurance policies to pay for long-term care insurance. There are also AAA member discounts available as well as workshops that provide more in-depth information about long-term care insurance.
There are other insurance considerations for senior citizens beyond the obvious age-associated coverage, Mr. Doyle said.
Automobile Insurance: You should review the use of your car with an insurance professional every year. Senior citizens often drive less frequently and their cars are usually paid for, both of which can result in savings on an insurance policy.
Homeowners Insurance: If you move south for the winter, you might not have the coverage for your home that you expect. Find out whether your home is considered occupied rather than vacant when you are not home for extended periods. Vacant homes often have less coverage.
Flood Insurance: Some homeowners let their flood coverage lapse once the mortgage has been paid off, not realizing that their homeowner policies don’t cover damage from flooding. The floods in New England this March left many with damaged belongings and no insurance.
Travel Insurance: Unfortunately, a side effect of age is unpredictable health. When you book travel, you should seriously consider travel insurance to protect you in case of trip interruption or cancellation.
Travel Medical Insurance: If your health plan requires the use of a local network of doctors and hospitals, you may need a more flexible plan that covers any medical expenses if you become ill while traveling outside the network and/or outside the country.
Posted on Thu, Jul 29, 2010
We're often asked by clients whether their insurance covers fallen trees. This video from the Insurance Information Institute has the answer.