Though less noted, material possessions are part of the American dream.  After all, once you’ve bought that little house with the white, picket fence, you immediately begin to fill it with decorations, furniture, and unique collections.  And once you’ve outgrown that starter home, you buy an even bigger house to accommodate… more possessions.

While the accumulation of “stuff” doesn’t seem like it could hurt anyone, too much clutter can actually prove hazardous.  For instance, the homeowner (or someone visiting him or her) could trip over items that have collected in walkways.  Or, in those extreme cases where there is no further space to store possessions, clutter can prevent the homeowner from being able to prepare meals, sleep, and function on a daily basis.

Individuals with cluttered homes are also at a greater risk in the event of a disaster.  In a fire, for example, accumulated possessions can serve as additional fuel, and piles of things can block walkways, entrances, and exits.  That said, should a fire ever break-out in a cluttered home, it can be extremely dangerous for the resident and any rescue personnel. 

While the minimalism trend isn’t for everyone, you can still keep your possessions in check by tracking your belongings in a Household Inventory Checklist.  Not only will this simple record serve as a reminder of what you already have, and perhaps even prevent future impulse buys, but it will also prove invaluable to you during the insurance claims process should an unfortunate event (such as a flood or fire) ever cause you to lose or need to replace the contents of your home.

At Preferred Mutual Insurance Company, we believe that a healthy balance in all things, including your “stuff”, is the best way to live assured.

According to the SafeWise Report, a safety and home security resource, a home is robbed in the United States every 15 seconds.  And while fear and confusion are instinctive responses, those hours immediately after a burglary are critical to ensuring your safety and the retrieval or replacement of your belongings.

Once you realize you’ve been robbed, follow these steps:

• Exit your house immediately.  The robber could still be in your home, so make your personal safety a priority by leaving the premises.
• Call the police.  Report the incident and any details you may have (i.e. did you see someone enter or leave, damage to the entrance, etc.) 
• Take photos and document.  Once the police have deemed the area safe to enter, take photos and determine what items are missing and/or damaged. 
• File a claim.  Contact your insurance company as soon as possible to file a claim for the missing or damaged items. 

Burglaries happen even in the safest neighborhoods, but you can take certain precautions to decrease your risk.  Always lock your doors and windows, secure your valuables, and never advertise on social media when you won’t be home.  And don’t forget:  many robbers are deterred by those houses that advertise security systems, and most insurance companies offer a discount for homes equipped with alarms.  You can’t control everything, but you can live assured when you’ve done all you can to protect your home and your family.

According to the Centers for Disease Control and Prevention, carbon monoxide (CO) poisoning sends approximately 20,000 people to the emergency room and results in more than 400 deaths every year.  Such startling statistics might beg the question:  why?

Carbon monoxide is produced when you burn fuel in a vehicle, as well as in common major household appliances, like fireplaces and furnaces.  And, as a colorless and odorless gas, CO can infiltrate a home without notice. 

Unfortunately, the symptoms of CO poisoning (headache, dizziness, weakness, upset stomach, and vomiting) can sometimes be confused with general illness, and many people don’t get out until it’s too late.  However, you can take the following precautions to protect your home and family from CO poisoning:

• Install a CO Detector- a detector will sound should it measure dangerous levels of CO in the air.  Be sure to place the alarm in a location where you’ll hear it if your sleeping, such as outside your bedroom. 
• Have Appliances Professionally Serviced- while we are a generation that embraces DIY projects, it’s best to have a professional service your appliances to ensure there are no leaks and that all ventilation is directed out of the home.
• Follow Manufacturer Instructions- You should never bring “outdoor” appliances indoors, and portable heaters and generators should be used according to the manufacturer’s instructions.

Like many risks, the best way to protect yourself from CO poisoning is to learn the facts and be prepared.  For more information, visit www.cdc.gov.  When you live proactively, you can live assured.

Liability lawsuits are not just a concern for famous people and large corporations.  Anyone could find themselves in a liability situation, and today’s lawsuit settlements often exceed the limits of traditional insurance policies.  Umbrella endorsements can be added to your existing policy, and will provide coverage where your other policy ends.  Still don’t think you need to be concerned? 

Consider the following liability “targets,” real-life lawsuits, and the corresponding settlements:

Do you own a dog?

• A 12-year old boy suffered lacerations to the lower legs and thigh when he walked by a neighbor’s house and was bitten by her two dogs. (Plaintiff Award:  $500,000)

Did you make a repair in your current home?

• A man improperly installed a diving board in his former home, which later resulted in a serious injury to the home’s new owner.  (Out-of-court settlement: $2,500,000)

Do you have a teenage driver in your house?

• A teenage driver hit a parked truck, causing his passengers to suffer serious head injuries. (Out-of-court settlement:  $1,250,000)

Do your children's friends come over to your house to play?

• A 6-year old boy suffered partial permanent impairment of one arm and hand while playing in a friend’s yard and being lifted over a fence to retrieve a ball.  (Compensatory Award:  $1,220,000)

Don’t make the mistake of assuming you have nothing to lose. 

Talk to your independent agent about adding umbrella coverage to your existing insurance policy.

Even if you treat your drainage and plumbing system with the utmost care, sewer backups can still occur.  And, as with any kind of flooding, sewer backups can result in thousands of dollars’ worth of damage to your home’s flooring, walls, furniture, and electrical system. 

According to the Insurance Information Institute, the following factors could contribute to a sewer backup:

• Aging Sewer Systems:  according to a report published by the Society of Civil Engineers, the nation’s 500,000-plus miles of sewer lines are, on average, more than thirty year’s old. 
• Combined Pipelines:  during heavy rainfalls, those storm water and raw sewage lines that are combined into the same pipeline could experience more volume than they can handle, resulting in damage or a break.
• Blockages Due to Tree Roots:  Tree and shrub roots will seek water as they grow, and can often cause further damage to lines that have preexisting cracks or leaks.
• Sanitary Main Blockage:  if a blockage occurs in your city’s sanitary main and is not detected in time, the sewage can back up into your home.

While many of these situations are out of your control, you can protect your home and future finances from the devastation of sewer backups by adding a Water Damage endorsement to your existing homeowner’s policy, which will provide limited coverage for the resulting water damage.  Furthermore, you can also discuss the perimeters of your coverage with your independent agent, who can address how the policy specifically applies to your individual situation. 

At Preferred, we believe the best way to live assured is to be prepared for the unexpected.

With the worst of the weather behind us, we can all breathe a sigh of relief knowing that we made it through another winter driving season.  And now, it’s time to show your car a little appreciation.

The winter weather can wreak havoc on your vehicle’s interior, exterior, and operating mechanisms.  So, be sure to check the following before the sweltering days of summer arrive:

• Exterior- be sure to give your car a good wash to remove any salt residue that could cause rust, especially in those areas prone to build-up, like the undercarriage and wheel wells.
• Interior- vacuum your vehicle’s floor mats, and consider a deep clean to remove all the salt and water stains.
• Fluids- your vehicle has to work harder to operate during the cold weather, so be sure to check your oil, coolant, windshield washer, and brake fluids before taking any long road trips.
• Wipers- after sweeping away a whole season’s worth of snow and ice, your windshield wiper blades may be worn-out.  Inspect and replace as needed.
• Brakes- have your brakes checked by a professional to ensure that they haven’t been worn-down or corroded. 
• Tires- If you drove on all-season tires this past winter, have your tires rotated to ensure even wear.  And if you have snow tires, now is a good time to have them removed and stored for next year.

For more information about seasonal car maintenance, visit AAA.com.  And for more tips to help you drive assured, log-on to www.preferredmutual.com.

While many of us associate spring with “spring cleaning,” we often overlook that it’s the outside of our home that has been exposed to the elements all winter season.  So, before you reach for that mop and bucket, homeadvisor.com recommends inspecting the following features outside:

• Foundation- Look for cracks or deterioration that may have developed during the winter.  Contact a professional if major repairs are needed.
• Landscape- Even out areas that may have shifted, trim back shrubs, and cut down tree limbs that could cause damage.
• Gutters- Clean out debris and repair any detachments.
• Siding- Use a pressure-washer to clean your house’s siding to prevent mold growth and improve overall appearance.
• Deck- Repair any loose or warped boards.  Consider applying a treatment to preserve the wood’s condition.
• Air Conditioner- Inspect it now, and save yourself a lot of hassle during the first scorching days of summer.
• Windows, Doors, & Screens- Inspect the molding around your windows and doors for any air leaks.  And be sure to check your screens for any holes or tears that could be letting pests into your home.
• Roof- Even if you made it through the winter without a problem, have your roof inspected to ensure you won’t experience leaks during those April showers.

For more spring maintenance tips, visit www.homeadvisor.com.  And if you’re looking to do a little spring cleaning of your homeowner’s insurance policy, find an independent agent near you.

“An ounce of prevention is worth a pound of cure,” or so the old saying goes.  But when it comes to winter-weather related repairs, how much can small preventative measures actually save you?  Consider the following:

Prevention: Spending $60 for a roof rake
Repair: Paying $550 to fix your roof
Fixing an ice-dam could be as simple as replacing your gutter, or as complex as having to replace a section of your roof.  By consistently removing the snow, you’ll decrease the likelihood of an ice-dam developing.

Prevention: Leaving your cabinets open for free
Repair:  Paying $10 to $5,000 to unthaw pipes/repair damage
Depending on the extent of the damage, a frozen pipe situation could require a quick trip to the hardware store or hiring a professional to replace plumbing fixtures and sheet rock.  Leaving cabinet doors open under sinks and allowing a small amount of water to drip from the faucets can prevent pipes from freezing.

Prevention: Spending $10-$25 for a shovel & rock salt
Repair:  Paying $20,000 or more for a slip and fall injury
By removing snow and applying rock-salt to commonly used pathways, you’ll lessen the likelihood of a slip and fall incident happening on your premises, thereby decreasing your chances of a liability lawsuit. 

Northeastern winters last long enough…don’t let cold weather claims follow you into the spring season. Purchase a few winter essentials now and save yourself thousands of dollars later on.  

Maybe it’s a vintage ring that has been handed-down in your family for generations.  Or perhaps it’s a gemstone necklace that your husband bought you on vacation last summer.  Either way, its value goes beyond sentimental memories and, due to factors like fluctuating metal markets and mine extinction, is always changing.

If you have valuable jewelry, odds are that you’ve already taken steps to protect it under your homeowner’s insurance or an inland marine endorsement.  However, it’s also important to ensure that the value stated in your policy is correct and up-to-date.  In fact, most insurance companies recommend having your jewelry reappraised every two years.  While this may seem cumbersome, it will ensure that you and your insurer are on the same page regarding the value of your jewelry.  A thorough appraisal should include the following:

• A detailed description of the item(s) that includes:
  • Type of jewelry (ring, bracelet, pocket watch, etc.)
  • Type of metal
  • Gemstone description – number of stones, type, color, cut, and estimated weight
  • Any identifying marks (chips, engravings, etc.)
• A photograph of the item(s)
• Lab certification (if available)
• A note that the appraisal is for insurance purposes
• The appraised value of your jewelry

All of this information should be printed on official letterhead from the appraisal company, and dated and signed by the appraiser.  Appraisals are critical to proper compensation by your insurer after a loss, so be sure that yours is thorough and current.

In the blink of an eye, a slight flurry on your way home can turn into a blizzard that leaves you and your car stranded in a ditch.  And while many natives of the Northeast are accustomed to snow storms, being without heat, food, and water while waiting for help can prove dangerous.  Here are some items to carry in your car if you live in an area prone to snowstorms:

• Blankets
• First Aid Kit
• Flashlight & Extra Batteries
• Florescent flag for antenna or road flares
• Hand warmers
• Hard-walled cooler with bottles of water inside
• Jumper Cables
• Pocket or emergency knife
• Protein bars or non-perishable snacks
• Rock salt, sand, or cat litter for traction
• Warm clothing

What should you do if you do get stranded in a blizzard?  If you’re not within a safe walking distance of help, it’s best to stay with your vehicle and wait-out the storm.  Use your florescent flag or road flairs, along with your hazard lights, to signal to passing-cars.  Do not run your vehicle constantly, as you could run out of gas or risk poisonous, carbon monoxide build-up.  Instead, turn your vehicle on for a few minutes at a time, and roll-down one of your windows a little when the vehicle is on.  Focus on staying hydrated and warm.  And remember that when the roads are bad, it’s best to avoid travel.  

The only thing worse than not getting to visit your seasonal home as often as you’d like is having to make repairs once you get there.  So be sure to prepare your home away from home for the upcoming winter season by taking the following precautions: 

• Drain and turn-off water lines to prevent frozen pipes and leaks.  Don’t forget about those outside water sources too (i.e. the garden hose).
• Have chimney and woodstove pipes professionally cleaned.  Should you decide to visit your secondary home during the winter, you’ll want to be sure your heating source is working safely before then.
• Hire a caretaker to remove snow from sidewalks, driveway, and the roof if you can’t visit your secondary home often, especially if your property is frequently used by others (e.g. public sidewalks along the front of your house).
• Inspect windows and doors for drafts before the cold weather comes.  Seal leaks or cover with heavy plastic for the winter season.
• Trim tree branches that could result in property damage after a heavy snow storm or strong winds.  And ensure that all repairs are made before the snow falls, such as broken steps or uneven landscaping.

A familiar getaway with the comforts of home, your secondary house is there when you need it most.  By taking these small seasonal precautions now, you’ll avoid unnecessary repairs and insurance claims, ensuring you get the most out of each trip back to your home away from home.   

Perhaps you believe that you were protected under your landlord’s policy.  Or maybe you think that your belongings aren’t valuable enough to warrant buying extra insurance.  Regardless of previous notions you’ve had about renter’s insurance, you’re taking a huge risk when you’re an uninsured renter.

Renter’s insurance covers the following:

• Personal Property:  In the event that your belongings are lost or damaged in a fire or burglary, renter’s insurance would pay to replace or repair those items.  And before you start thinking “I don’t have anything valuable,” imagine how much it would cost to replace your clothes, furniture, and electronics.

• Temporary Living Expenses:  If a disaster left your home uninhabitable, your landlord’s insurance would only cover the cost of repairs, not an alternative living arrangement for you.  Renter’s insurance would provide reimbursement should you need to stay in hotel until it is safe for you to return to your home.

• Personal Liability:  No one wants to think about their friends taking them to court.  However, rising medical costs and our litigious society can make people do unpredictable things.  Renter’s insurance would protect you in the event of a liability lawsuit and pay medical expenses to someone who was injured on your premises.

Being a renter without insurance is extremely risky, and with most policies costing less than a cup of a coffee a day, can you really afford to be without it?  Also, keep in mind that if you bundle your renter’s insurance with your auto policy, you can often save money.

If you're ever in the unfortunate situation of needing to file an insurance claim, it's important to have a clear understanding of your policy and the claims process.  Your carrier will follow a formal claims procedure, but knowing as much as you can about the key components of a claim in advance will help it go smoothly.

Here's a breakdown of common claim terminology:

4 Key Components of a Claim:

• Coverage – What’s covered?  How the terms and conditions of your policy apply to the facts of the loss, and how does case law apply? 

• Liability – Who did what wrong?  Or what is the duty owned? (1^st party claims do not have a liability component, but are evaluated based on the cause of the loss and if that cause is covered or excluded under the policy)

• Damages – What damage was sustained in the loss and how is it going to be evaluated?  The terms and conditions of the policy reflect how certain property is evaluated.

• Resolution – Can the claim be settled/ negotiated?  If an amicable settlement cannot be reached the parties can agree to go to alternative dispute resolution, such as mediation or arbitration.  If no common ground can be found the claim could go to trial.  During any stage of the claim or resolution process, the claim can be litigated and litigation does not prevent a settlement or alternative dispute resolution. 

Tina Schott, CPCU, AIC, AIS
Claims Manager, Property Operations

Last week, Fiat Chrysler joined a long list of manufacturers who have found themselves at the center of a lawsuit regarding vehicle recalls.  After admitting to violation of the Motor Vehicle Safety Act, Fiat Chrysler was ordered by the U.S. Transportation Department to buy back defective vehicles, pay a $105 million civil penalty, and submit to independent inspection in the upcoming years of manufacturing and development.

With recalls, lawsuits, and offending manufacturers in the news so much lately, it’s easy to become desensitized to the information.  But not knowing if your vehicle has been recalled can be extremely dangerous for you and other drivers.  So here are proactive steps to ensure the safety and efficiency of your vehicle.

• Instead of wading through newspaper headlines or a long-list of makes and models, search for recalls specific to your vehicle.  Simply log-on to https://vinrcl.safercar.gov/vin/, and enter your vehicle’s identification number (VIN).
• If your vehicle/parts on your vehicle have been recalled, follow the remedy instructions and contact your local dealer/manufacturer immediately.  The National Highway Traffic Safety Administration (NHTSA) monitors each recall to ensure that vehicle owners receive free, effective repairs in accordance with the Safety Act and federal regulations.
• Stay informed.  Even if your vehicle doesn’t currently have a recall, an issue could develop later on.  Sign-up for email or text alerts regarding your vehicle on www.SaferCar.gov. 

To learn more about recalls, watch this video from the NHTSA.

Drive Assured.

To you, your dog is just another member of the family.  But to your insurance company, your furry friend represents an increased liability risk.  In fact, some companies will not insure your home if you have a dog breed that is known to display aggressive behavior, such as:

• Akitas
• American Staffordshire Terriers
• Chow chows
• Doberman pinschers
• German Shepherds
• Mastiffs
• Pit Bulls
• Presa Canarios
• Rottweilers

This list does not reflect the views of every insurer and does not imply that if you own one of these breeds, you won’t be able to obtain insurance…you may just have to shop around.  Some insurance companies write dog-owners’ home insurance policies on a case-by-case basis, and will take the dog’s behavioral history into account.  Additionally, the laws regarding home insurance and dog ownership vary by state.  But the best approach is always​ to be honest with your insurer, and check your policy beforehand.  Some homeowners forget or avoid telling their insurance company about their dog, thinking they’ll evade extra costs and hassles.  However, this notion can come back to “bite” you if your dog should ever hurt someone or cause destruction.  According to the American Veterinary Medical Association, every year, more than 4.5 billion Americans suffer dog bites.  So, while you can’t imagine Fido ever biting someone, make sure you’re covered if he does.  

You’ve probably heard that trampolines are a significant cause of household accidents.  But did you know that some insurers will refuse to sell you a homeowner policy if you have a trampoline on premises?  You may think that the netting around the trampoline keeps users safe from falls.  But did you know that many injuries on trampolines occur without the person ever falling off? 

Injuries on trampolines are so common that the American Academy of Pediatrics recommends that parents never purchase trampolines for homes andnever allow their children to jump on trampolines at someone else's home.

According to the American Academy of Orthopaedic Surgeons’ and the American Academy of Pediatrics, the majority of trampoline-related injuries are fractures and sprains, as well as cuts, strains and spinal damage. 

Between 2002 and 2011, more than 1 million people went to emergency departments for trampoline-related injuries, with nearly 300,000 of those injuries involving broken bones.  Most of those (95.1%) occurred at home.

Most trampoline-related fractures occurred in kids (92.7% in people ages 16 and younger).   Boys and girls are injured at approximately the same frequency.  However, teens are more likely to injure their spine, skull/face and ribs/sternum skeleton, probably because they are jumping higher and with more force.



Sean Campbell
PL Territory Manager

 
Sources: 
http://www.livestrong.com/article/347980-statistics-on-trampoline-injuries/

http://www.huffingtonpost.com/2014/04/29/trampoline-injuries-fractures-broken-bones_n_5227768.html

http://www.usatoday.com/story/news/nation/2014/05/07/home-trampoline-hospital-visits/8820793/

There are a variety of factors that influence the premium or amount of money charged for insurance coverage.  Rates, or how much an insurance company charges for a certain amount of coverage, is based on the amount of risk that the policyholder and/or his/her property represents.  So, a policyholder that poses less risk, statistically speaking, is charged a lower rate.  Conversely, a policyholder who poses more risk, statistically speaking, is charged a higher rate.  All rates must be approved by each state’s department of insurance, ensuring that the rate being charged is fair.

So, what factors can influence your individual rate?  Here’s a list of a few that can factor in, but not all variables are used for all coverage.  So, depending on the state you live in and the insurance rules for that state, as well as, what you’re insuring, factors can include:

• Where you live (urban, suburban, rural)
• Your age
• Your gender
• Your marital status
• Credit score
• Vehicle use for auto
• Driving record for auto
• Years of driving experience for auto
• Make and model of your vehicle for auto
• Construction type for property
• Value of property

As a reminder, there are some behaviors within your control that can also influence your insurance premium.  Examples of those things that make you a “lower” risk are better maintenance/improvements of your property.  Those things that can make you a “higher” risk can include prior loss history, a trampoline on your property, or ownership of particular dog breeds.  

Randy Hay 
Manager of Actuarial Services

A few tips to guide you through the insurance claims process:

Know Your Policy
Be familiar with your coverage, deductibles, and any exclusions before disaster strikes. 

Create a Home Inventory List
Create or update your home inventory list before you need to file a claim.  You can videotape or photograph items.  Keep the list in a secure off-site location. Watch this video on creating a home inventory. 

Prevent Further Damage
Make any minor repairs to prevent further damage to your property.  Take pictures, keep replacement parts and receipts.  Do not make complete or final repairs until after the insurance company has had an opportunity to review.

Call Your Agent/Provider Immediately
Submit the claim as soon as possible to ensure it is within the required timeframe as indicated on your policy.  Ask what is needed to ensure a smooth process: deductible, estimates, claim forms, etc.

Speak with your Claims Representative
After you file a claim, a claims representative will contact you. Be prepared to share documentation, pictures, and receipts, as this will expedite the process.  

A typical homeowner’s policy provides coverage for structural damage, replacement of lost or stolen property, and personal liability.  But what most homeowners don’t know is that that same policy might not apply when you rent out your home for short periods of time.

The emergence of the short-term rental trend has left homeowners and insurers in a precarious position.  Since you’re only renting for short periods of time, you may not see the necessity for extra coverage that’s often carried by landlords.  Your insurance company, however, sees an increase in your liability and property risks. 

Imagine the following scenario:  you rent out your home for two weeks to a family friend.  While staying at your premises, that individual trips on a loose floor board, falls, and is badly injured.  While you would never have imagined this person taking legal action, you suddenly find yourself in the middle of a liability lawsuit, being sued for that person’s medical costs…and your insurance provider won’t cover the expenses because they have deemed your short-term rental as a business.

So, where does that leave you?  The answer is Short-Term Coverage that can be added to your pre-existing homeowner’s policy.  This package provides additional coverage to protect you against theft, fraud, liability, and accidents while temporary tenants are staying at your premises.  So before you build a profile for your home on that “rooms-for-rent” website, be sure you’re protected.

John DiStefano
Personal Lines Territory Manager

A business continuity plan is a plan to continue operations even if a business is affected by disaster.  Every business should have one, and you should expect your key service providers, including your insurance company, to have one too.

Preferred Mutual’s business continuity approach focuses on the needs of our customers and the requirements of other key stakeholders, like our employees and independent agents, should we face a disaster that impacts any facet of our business.  We recognize that not all disasters are created equal – some are caused by weather, others by fire or water, some by accident, and still others deliberate.  But whether the disaster impacts our company for a few hours or several weeks, we are able to act because we have a business continuity plan in place to respond.  Here’s how we approached our planning and what your business can do to prepare as well:

1. Assess your capabilities and identify your business’ essential functions.
2. Look at the types of risks that have the potential to occur, and the possible impact of each one, against your essential functions.
3. Carefully consider your company’s risk (and opportunity) appetite.
4. Prioritize your business needs.
5. Develop mitigation strategies to proactively avoid the risks.
6. Document your process for responding to the potential risk in each area.  Include key contact information and a chain of command for responding.
7. Enhance your data center operations to ensure your essential information is accessible if needed.
8. Repeat the cycle annually to enhance your resiliency.

In the case of Preferred Mutual, we have also developed a central Corporate Incident Response Team of leaders to manage through incidents or disasters that impact our Company.  We coordinate testing and run through drills at least monthly to ensure that we are prepared to respond to our customers, even if an emergency strikes.

Business continuity has contributed to Preferred's enhanced culture of risk awareness and preparedness.  Keep in mind that often “It’s in the planning, not the plans.”

Dave Prosser
Risk Specialist, Business Continuity