3 Questions to Ask Yourself

1) What Repairs am I Repsonsible For vs. the Water District?
In the Portland Maine Water District, you are responsible for repairing damage to the water service line on your property; the utility is responsible for supply lines that lead to your property. Finding and repairing an underground pipe leak can be expensive.

2) What Pipe Damage Does My Homeowners Insurance Cover?
Water damage from burst or leaky interior plumbing is covered by most homeowners policies; repairs to the pipes themselves are not. Most homeowners policies do not cover water or sewer backup into a basement unless you buy special coverage.

Most Maine Homeowners insurance policies do not cover damage to water or sewer pipes beyond your foundation walls. Common causes of such damage are tree roots, wear and tear, and crushing by heavy equipment. For most home owners, this leaves a gap in coverage that the water district plan offers to help fill,  for an additional charge

3) What is the Cost vs. Benefit of Filling this Gap?
The Portland Maine Water District plan costs about $60 per year.

4 Things to Know About the Utility’s Water Service Line Program

These plans vary from district to district. These comments relate only to the plan provided by Portland Maine Water District.

1) It is not insurance. It is a service plan offered by an independent, private provider. The water district markets it to their customers, and provides billing along with water and sewer bills. Although it uses terms like “deductible”,  ”coverage”  and “exclusions”, the plan is not insurance; it promises to arrange for a contractor to repair your pipes, and guarantees their work for 1 year.

2) Repairs to sewer or septic pipes aren’t covered by the PWD plan – only repairs to water supply pipes.

3) The plan covers repair or replacement costs up to $3,500 per service call ($7,000 maximum per year).

4) The plan contains exclusions such as: “acts of God”, “pre-existing conditions” (exclusion wording that a homeowners policy does not have); and “faulty construction/improper maintenance” and “reduction in performance caused by normal wear and tear” (similar to homeowners policy exclusions).

So, Should I Buy the Water District Plan or Not?

If you have a limited funds for emergencies, or want to avoid unexpected out-of-pocket expenses, the plan may be a good choice for you. For about $60 a year, you’re avoiding up to a $3,500 expense. But realize that coverage is limited – it only covers water supply lines, not sewer lines – and that it contains exclusions, some of which seem to be open to broad interpretation.

The Bottom Line

The plan protects you from expenses not covered by most homeowners policies, but it does not protect you against all of the bad things that can happen to your underground pipes.

For answers to your insurance questions, contact Noyes Hall & Allen Insurance at 207.799.5541.

 Are you getting the auto insurance discounts you deserve? How much does your neighbor pay? It’s not a common topic of friendly conversation, and there are so many factors at play, it’s hard to know.

Maine auto insurance rates are the lowest in the country, averaging $902 (Louisiana is the highest at $2,511). Of course those rates vary depending upon a lot of factors. Even with our comparatively low insurance rates, some Mainers pay many times the average.  

Traditional Factors Influencing Car Insurance Costs

• Type, age and value of your vehicles.
• Where you live and drive.
• How you use the vehicles (pleasure, commute, business use).
• Age and driving record of people who drive your vehicles (teenage drivers’ insurance rates are the highest).
• What deductibles and liability limits you choose.

Those factors probably have about a 75% impact on your insurance rates, but other, newer factors can make the difference between getting a fair deal on your insurance and a great one.

To Get the Best Price on Auto Insurance:

• Have an excellent insurance score (similar to a credit score – this can lower your premium by as much as 25%).
• Own a home.
• Combine your Maine Homeowners and Auto insurance with the same company.
• Maintain your insurance without lapse. Lapses cost dearly.
• Insure all your vehicles on the same policy.
• Do business with a local Maine Independent Agent, who represents more than one company, and can shop to find the best deal for you.

Many other car insurance discounts may be available. Your agent, can ask you the right questions to make sure you get all the credit you deserve. Contact Noyes Hall & Allen Insurance at 207-799-5541 for a Maine auto insurance quote or get up to 4 comparison online car insurance quotes from our Quick Quote page.

Insurance Saves the Day
The good news is that the groom’s mother had contacted her local insurance agent , and insured the ring – without his knowledge -the day he bought it.

The Lesson
Loss of jewelry (or a stone from a ring) is not covered by most Maine homeowners insurance policies, unless you buy specific coverage. Your Maine insurance agency may call this “scheduling your jewelry”. It’s not expensive: this ring would have cost less than $70 a year to insure.

Until it’s given, the ring belongs to the groom, and can be insured on his policy. It’s usually scheduled on the bride-to-be’s policy after she’s received it. If you’re not a homeowner, you can buy a Maine renters insurance policy and schedule the ring there.

If you have questions about insuring your property, Maine car insurance, or other ways to protect your assets, contact Noyes Hall & Allen Insurance at 207-799-5541.

Fire damage is covered by Maine homeowners insurance. Damage to vehicles is not. To have vehicle damage covered, You need to purchase “other than collision” coverage on a Maine auto insurance policy. Hopefully, both of these families did have insurance to help them rebuild their homes and replace their vehicles. Of course, the best fire insurance is of all is prevention and avoidance. Here are a few tips to help prevent garage fires and to reduce damage if one should occur.

Fire Needs 3 Things to Exist
Fire  can not exist without oxygen, heat and fuel. If you can prevent those three from being together at the same time, you’ve greatly reduced your fire risk. Here are a few tips to help improve your chances.

Store Items Safely

• Allow gasoline-powered tools to cool completely before putting them away. Store them a safe distance from combustibles. Remove remaining grass from mowers, line trimmers, etc. before storing them.
• Never use grills, outdoor fryers, or any other cooking appliance in your garage.
• Store combustibles away from any source of heat.
• Use a metal cabinet with a closed door to store flammables like gasoline, wood finishes, spray paint or thinner.

Get Proper Safety Equipment

photo credit: www.usarak.army.mil

At a minimum, your garage should have a fire extinguisher. It’s also a good idea to have a smoke detector in the garage, especially if it’s attached to your home. Your town or city may have other codes or ordinances. Check with your local Code Enforcement Department.

Use Safe Workshop Practices

• Sweep wood chips and sawdust immediately after cutting or sanding wood.
• Seal paint cans and containers of finishes and solvents, and store them away from flammables, preferably in a metal cabinet.
• Dispose of oily rags in a steel bucket with a closed lid. If you need to re-use them, you can also hang them on a line with good separation between them, far away from any heat source.

Whether you have Maine homeowners insurance, auto insurance, or business property insurance, the answer is usually “yes”, subject to the level of property coverage and deductible on your policy.

Windstorm Coverage in Maine
A tornado is just wind – vicious, frightening, powerful, damaging wind whirling in a funnel cloud. Many insurance policies cover wind damage to buildings or vehicles. It doesn’t matter if it’s caused by a gale, nor’easter, tropical storm,  hurricane, microburst or tornado. Some limited policies exclude wind damage – again, it doesn’t matter what kind of storm caused it.

Types of Wind and Storm Deductibles
Every property and auto policy has a deductible. On personal and commercial vehicle  insurance policies, wind is covered if you purchase “other than collision” (sometimes called “comprehensive”) coverage.  This coverage varies by vehicle.

Some property insurance policies have specific deductibles for wind. In Maine, it’s common to see these types of storm deductibles (from least to broadest insurance coverage):

• “Wind Deductible” – Any wind damage is subject to a flat dollar deductible – usually a higher amount than your normal deductible,  or a percent of the amount of your property insurance.
• “Named Storm Deductible” – Any damage caused by a storm that the National Hurricane Center has given a name is subject to a special deductible (see “wind deductible” above for some examples). Other wind damage is covered, subject to the regular policy deductible.
• “Hurricane Deductible” – Any damage caused by a true hurricane is subject to the special deductible. Other wind damage is covered, subject to the regular policy deductible (usually a smaller deductible).

Insurance companies have different criteria for underwriting the peril of wind damage. A Maine independent insurance agency has access to many insurance companies, which gives you the most options.

We’re happy to answer your questions about property insurance for your home, auto or business. Contact Noyes Hall & Allen, or call us at 207-799-5541.

You can read the full article by following the link above.

This accident happened right around the corner from our office. At noontime today, the damage was impressive: two large (and no doubt, expensive) glass walls were completely destroyed. Equally impressive was the speed of the repairs, which were in full swing. Fortunately, the bank was able to open today, so there was no “loss of income” suffered.

Hopefully, the driver of this vehicle had insurance. And hopefully, he paid attention to “the third number”.

The Third Number
Maine auto insurance policies provide liability coverage. Maine’s minimum liability limits are $50,000 per person and $100,000 per accident for Bodily Injury, and $25,000 for Property Damage. When you get a car insurance quote, the insurance company might quote those figures as “50/100/25″.

In the accident that happened last night, there was no Bodily Injury (thank goodness), only Property Damage. That means that the Third Number is what will pay for the damages.

I have no idea whether $25,000 would be enough to repair this building, but I wouldn’t want to find out the hard way. If a Maine driver doesn’t have enough insurance for the damage or injuries they cause, their assets are wide open to help pay for the other party’s loss. That’s why we never recommend buying State Minimum limits.

What’s Your Third Number?
When you get a Maine car insurance quote, pay attention to ALL the numbers, including the “Third Number” – your Property Damage limit.

For professional, personal insurance advice, call Noyes Hall & Allen at 799-5541. We’ll help you understand what you’re buying, and help you make informed choices to find insurance you can afford.

The answer is a bit complicated.  It may help to look at the types of coverage that the car rental companies offer.  Of course, car rental contracts differ. It’s smart to request a copy of the rental agreement to review ahead of time with your Maine auto insurance agent.

Liability Damage Waiver

 Maine auto insurance policies provide protection for liability you incur for injuries or property damage you cause to others within the U.S. Therefore, it’s not usually necessary to purchase a Liability Damage Waiver from the rental car agency since you usually already have coverage under your own insurance. An exception might be if you have purchased very low liability limits.

Collision Damage Waiver

Rental car agencies typically try to sell “Collision Damage Waivers” (CDW) for about $8 to $15 per day (an annual rate of $3,000+ a year) – pretty expensive for car insurance! These waivers are not insurance. In effect, a CDW simply buys a promise from the rental car agency that they won’t make you repair or replace a damaged or stolen vehicle.

If you already carry collision and comprehensive coverage under your own Maine personal auto insurance, your policy will extend to the rental car. You should carefully evaluate your existing coverage and discuss with your Maine insurance agent whether or not purchasing a CDW is appropriate for you.

BUT…

There may be gaps between the coverage your insurance policy provides and your contractual obligation to the rental company.  For example, many car rental companies may hold you responsible for the loss of use of a damaged rental car. Many charge you the daily rental rate for every day the car is undergoing repairs (whether they were “sold out” or not). While many auto insurance policies will pay “loss of use” charges, those that do set dollar or time limits that may or may not match the rental company’s claim.

There are other expenses that most auto policies do not cover. One example is diminished value which can amount to several thousand dollars. Consult your independent insurance agent to find out what’s best for your travel needs.

Foreign Travel – You’ll probably have to purchase separate insurance when traveling outside the U.S. and Canada. Some personal umbrella policies may provide liability coverage for rental cars abroad; few will cover damage to the rental car itself.  Again, seek professional expert advice from an independent agent before you leave home.

Check the Vehicle

Protect yourself by checking the car carefully for damage – with a rental company employee present – before you leave the lot and when you return it. Request that all prior damages be noted in writing. We’ve heard about car renters being charged for damage weeks after turning in vehicles. If you didn’t have them check the vehicle when you returned it, there’s no way to prove your innocence.

The Bottom Line

Buying the waivers from the car rental company is the safest way to make sure you have no coverage gap. But, you’ll probably want to weigh the cost of those waivers against the additional risk you assume by not buying them.

We’re happy to answer these and other insurance questions for our clients.  Call us at 207-799-5541.

Bon voyage!

Barbara, who’s worked for Noyes Hall & Allen for the past 13 1/2 years, is retiring. For such a small woman, she made a huge impact in her long insurance career.

Over the years,  she issued 3,000 new policies, reported 5,000 insurance claims, and made  15,000 policy changes for her clients. But  Barbara’s impressive work ethic is not the reason why she was so popular among her clients. Clients don’t care what you know unless they know that you care – and Barbara cared.

Clients paid many unsolicited compliments to Barbara’s service, year after year. This one from a new client sums them up best:

“While on a business trip, I realized I needed to review my policy. I was met by Barbara with courtesy, good cheer, excellent listening skills and efficiency. I care in that order and am really surprised by the excellent customer service from your company. With employees like Barbara, I’ll be with your firm for a long time.”

Noyes Hall & Allen has so many long-term clients because we are fortunate to have experienced professionals who provide great service. Barbara was one of the best.

We wish Barbara a happy, healthy and long retirement. She deserves it!

The contest isn’t even close. Residents of the next lowest state, Vermont, pay about 7% more than Mainers. The nationwide average: about $1,450 – a whopping 38% higher.

With our snowy, icy winters, why would our car insurance be so cheap? It’s not all about weather.  In fact, 7 of the lowest 10 states are in the snow belt.

Behind the Numbers
Car insurance rates essentially pay for 3 things:

• Repair Costs
• Medical Bills
• Legal Bills and Damages from Lawsuits

Maine’s costs for the first two are roughly in line with the rest of the country, but Mainers tend to be a bit less litigious than some other areas. That helps keep costs down.

Are Uncrowded Roads The Answer?
Maine is less congested than much of the country, but that’s not the whole reason behind our lower car insurance costs. Otherwise, Ohio, North Carolina, Arizona, Tennnessee and Massachusetts (yes, Massachusetts) wouldn’t also be in the bottom 10.

Our Theory
We think there’s something else behind the numbers: The rest of the country’s high percentage of uninsured drivers, and pitifully low minimum liability limits, and the number of people without health insurance.

You see, when someone has no insurance to pay their medical bills or repair their car, they’re more likely to try to “go against the other guy” after an accident, in an effort to avoid big bills. Even if you’re not at fault, if you’re “the other guy”, you can be sued, or the other party can try to make a claim against your insurance.

Even if a claim or suit is groundless, it costs your insurance company money to hire an attorney on your behalf or investigate the claim. That drives up insurance costs - for everybody.

So, maybe Maine really is…

Are you paying too much for car insurance? Get 4 competitive Maine auto insurance quotes in 10 minutes from Noyes Hall & Allen’s web site, or call us at 207-799-5541. We represent 10 of the state’s preferred auto insurers. One call gives you access to all of them!