5 Essentials for Portland Maine Apartment Owners & Landlords

Posted on by Bob O'Brien

 

Portland Maine has more rental units than any other city in the state – more than 19,000 units according to the 2000 US Census. Portland’s very low vacancy rate – as low as 1% by some estimates – makes it an attractive place to own residential income property.

But landlords know that owning an apartment building is more than just sitting back and collecting rent. From property damage to liability concerns, apartments can threaten your net worth as well as increase it. Here are 5 essentials for you to consider to protect your investment in habitational income property.

Doors, Windows and Locks

It’s basic, but surprising how many landlords ignore the first line of security defense: doors and windows. Make sure the entry doors to your building and each unit are solid wood or steel, with a deadbolt lock. Windows on lower levels should also have solid locks. To protect your tenants and your property, re-key the entry lock every time a tenant moves out. A door peephole is also an appreciated safety feature to allow your tenants to see who’s at their door without opening it.

Intercoms, Alarms and Security Cameras

Maine law requires every rental property to have working smoke and carbon monoxide detectors. That’s just a start. If you own a building with a locked main entry, an intercom is another valuable security feature. Some intercom systems have built-in cameras. Whether you have an intercom or not, a security camera system is also a good idea.Security Camera

Security cameras with a recording device:

  • Provide added security for your tenants;
  • Deter vandalism;
  • Protect you in liability cases, by recording a fall or incident;
  • Document any criminal or nuisance activity.

Proper Tenant Screening

Rental property management companies do a good job of screening potential tenants. If you choose not to use a property manager, you’ll want to use a professional rental application. A proper application asks about job history; income level; pets and number of occupants; and personal references, including prior landlords. The application should also give you permission to do a background check on prospective tenants, including criminal history and a credit check.

If the initial background information report indicates that someone is a desirable tenant, you may want to conduct a quick interview. Of course, the Fair Housing Act prohibits discrimination based upon color, disability, race, national origin, gender or sexual preference, religion or family status. But, you can ask potential tenants about pets and their behavior; what hours they work and sleep; smoking; and roommates and frequent guests.

apartment building in Portland Maine

A Good Rental Contract – including a Pet Policy

A good lease agreement spells out the responsibilities of both landlord and tenant. It also outlines grounds for eviction, which will be critical if your tenant turns out to be a payment or behavior problem. Keep signed rental agreements in a secure place.

Your rental agreement should include a pet clause, which limits animals by type, number, size or breed – or prohibits them altogether. Even if your prospective tenant has no pets, their lease should include this clause. They may want to get a pet after they move in.

We recommend that all landlords require renters’ insurance policies. Many renters think that their landlord’s insurance protects their belongings. It doesn’t. Moreover, if someone is injured in your tenant’s apartment and the tenant has no insurance, you can easily be sued for damages. For a more detailed description, read “Should a Portland Maine Landlord Require Renters Insurance?”

Solid Insurance

Even the best managed Maine income properties can still create costly losses for their owners. Good landlord insurance can make the difference between a financial disaster and a manageable expense. At a minimum, your insurance should protect you against:

  • Damage to your property – with an insurance limit sufficient to replace or rebuild.
  • Liability Suits – including injury, damage to others’ property, wrongful eviction, invasion of privacy and slander.
  • Loss of Rental Income – caused by damage to your property

Many landlords set up LLCs or other ownership entities for their real estate. Make sure that the legal owner of the building is an insured on the policy. Depending on your property’s location and characteristics, you might also consider flood or earthquake insurance.

If you have questions about Portland Maine landlord insurance and Maine income property insurance, contact Noyes Hall & Allen Insurance at 207-799-5541. Noyes Hall & Allen is a partner organization of the Maine Apartment Association, which offers helpful information and member benefits for apartment owners. One of our insurance agents, Dave McKenna, is currently a Committee Member of the MAA. Noyes Hall & Allen is independent and committed to you.

What is Hazard Insurance? Maine Home Insurance Explained

Posted on by Bob O'Brien

 

Whether you’re buying a home in Falmouth, a condo in Portland or income property in Scarborough, if you’re borrowing money, your lender will ask for proof of “hazard insurance”.

What is Hazard Insurance?

Hazard insurance is just the bank’s term for property insurance. The bank wants to make sure that if a disaster strikes, they will be protected at least up to the amount of your loan. Typical types of hazard insurance in Maine include:

  • Homeowners insurance (sometimes called an HO-3 or HO-5);
  • Condominium Unit Owners Insurance (aka HO-6);
  • Renters insurance (HO-4);
  • Dwelling Fire policy (often used for rental property or camps).

How Much Hazard Insurance Do I Need on My Home?

The bank would prefer to have 100% of your loan protected by property insurance. Sometimes, that’s too much insurance. After all, your insurance will only pay to rebuild your home. Insurance doesn’t cover items such as land, site work, landscaping or other items that are included in the purchase price. Your Maine homeowners insurance agent should help you

  • estimate the cost to rebuild your home;
  • provide cost estimates based upon the coverage you need;
  • provide proof of insurance that will satisfy the bank.

A good insurance agent can help you avoid buying too much – or too little – insurance.

If you have questions about Maine investment property insurance, or protecting your home, camp or condo, contact a Noyes Hall & Allen agent at 207.799.5541 today. We offer a choice of many of  Maine’s preferred property insurance companies, so we can do your shopping for you. As we like to say: “we’re independent and committed to you.”

 

Can My Insurance Company Force Me to Make Changes to My Property?

Posted on by Bob O'Brien

 

Insurance policies give insurance companies the option to inspect your property from time to time. The result of your insurance property inspection is a report to the company underwriter.

If the underwriter has concerns, they make “recommendations” to address them. This is a euphemism. These are not recommendations at all, but requirements. A “recommendation” may be as minor as fine-tuning the amount of insurance on your property (up or down); or as major as replacing the roof.

The underwriter sets a deadline for the “recommendation” to be completed. The deadline varies depending on the severity of the situation, how long they’ve insured your property, when your policy expires, and the season of year.

The Importance of Communication

The worst thing you can do is ignore an insurance company “recommendation”. Nobody likes to be Woman on Cellphoneignored; insurance underwriters dislike it more than most. It’s better to let the insurance company know your intentions, or to ask questions if you don’t understand.

Your Maine insurance agent is the link between you and the insurance company. Talk to them! They can explain the situation and advocate for you. If you are uncertain what the underwriter requires and why, ask your agent for a clarification. If you are unable to comply or need help, tell your agent. Depending on the circumstances, your agent may be able to negotiate with the underwriter for more time or for a different solution to the issue.

If the insurer’s recommendation involves physical changes to your property, they will require confirmation that you’ve made them. This usually means sending a photo of the completed change. The company may ask for a signed statement confirming that the change is permanent (such as removing a trampoline from the yard).

What Happens If You Can’t – or Won’t – Comply With Insurance Company Inspection Recommendations?

If the underwriter’s deadline passes without confirmation that the recommended changes were made, they may cancel your policy. Depending on the severity of the recommendation, they may cancel your policy within 30-45 days, or send a notice of non-renewal for when the policy expires.

When your policy is canceled or non-renewed by an underwriter, it’s very difficult to obtain replacement insurance with a preferred company. Your agent may be able to find replacement coverage, but it will probably at a higher cost and with less broad coverage.

Also, remember that you’re then a new customer with another insurance company. Now THEY may want to inspect. The cycle begins again, and it’s not always a good cycle.

If you have a question about Greater Portland Maine home or investment property insurance,  contact a Noyes Hall & Allen agent in South Portland at 207-799-5541. We offer you a choice of Maine’s preferred property insurance companies. We’re independent and committed to you.

Insurance Inspections in Maine : What to Expect

Posted on by Bob O'Brien

Insurance inspection is common in Maine. Home and investment property insurers routinely inspect properties that they protect. Because of more severe property insurance losses in recent years, insurers have stepped up the rate of inspections. Inspections allow them to make sure that they insure properties that fit their guidelines and that those properties are adequately protected.

Is an Insurance Inspection Mandatory?

Inspections are expensive for insurance companies, so they don’t perform them unless they feel it’s necessary. Often, one of these conditions can cause an underwriter to order an inspection on your property:

  • You bought a new property.
  • You switched insurance to a new company. The new company wants to make sure that your home or business meets their underwriting requirements.
  • You had a recent property claim. The insurance company may want to make sure that you have repaired the damage following your claim. This is especially common after a water damage loss, to avoid mold developing.
  • You own property that the insurance company hasn’t inspected in several years. Over time, DIY renovations; property improvements and additions; or lack of maintenance can create situations that can increase the probability or size of an insurance claim. The insurance company wants to make sure that your policy stays up to date in case they have to pay a claim.

inspectorCan I Opt Out of an Insurance Inspection?

In short, no. Each insurance policy has an “inspection clause”, which gives the insurance company the right to inspect your property with reasonable advance notice. If you refuse, it’s a violation of the contract. The insurance company may cancel your policy as a result.

Does the Insurance Inspector Need to Get Inside my Home?

There are two types of insurance home and business inspections: exterior only; and interior/exterior. The company underwriter decides which report to order based upon the age and value of your property, your claim history, and other factors. Some inspectors are employees of the insurance company, but many are independent contractors.

What Does an Inspector Look For?

Insurance Inspector Should

During a routine inspection, the inspector looks for features of your home or investment property that can affect the probability or the severity of an insurance claim. Items they typically inspect include:

  • Condition of
    • roof, including age of shingles, overhanging trees and accumulation of debris or vegetation
    • plumbing fixtures, drains and supply lines
    • electrical, including wiring, outlets and breaker boxes
    • heating and similar systems.
  • General property condition, paying particular notice to peeling paint; signs of rot; debris in the yard; and overhanging trees or vegetation close to the property. Because of an increase in deck collapse claims, insurers pay special attention to how your deck or porch is attached to the home, and its overall condition.
  • Special hazards such as dogs; trampolines;  swimming pools; or business operations.
  • Condition of any outbuildings or other structures.
  • Dimensions of structures, so they can estimate the cost to rebuild them.

What Happens During an Insurance Inspection?

The inspector sends their report to the insurance company underwriter. If no deficiencies are noted, you will probably not hear from anyone. If the underwriter has concerns, they make “recommendations” to address them. For more information about insurance recommendations and how to deal with them, read “Can My Insurance Company Force Me to Make Changes to My Property?”

If you have a question about Greater Portland Maine home or investment property insurance,  contact a Noyes Hall & Allen agent in South Portland at 207-799-5541. We offer you a choice of Maine’s property insurance companies. We’re independent and committed to you.

What to Do if You’re in an Auto Accident in Maine

Posted on by Bob O'Brien

 

Auto accidents are stressful, and the scene is often chaotic. Emotions and nerves run high, which can prevent clear thinking. Whether you’re driving a personal vehicle or a business vehicle, if you’ve been in an auto accident in Maine, you may have these questions.

Do I Need to Report an Auto Accident in Maine?

Rear-end auto accidentMaine state law requires you to report to the police any accident on a public road causing more than $1,000 in property damage or any bodily injury (a driveway, parking lot or other private property is not considered a public way). If you fail to report, you’ve committed a Class E crime, and may have your driver’s license suspended. So, it’s better to report it, just in case.

3 Good Reasons to Report Your Accident Anyway

  • $1,000 damage is less than you think. On modern vehicles, most parts are replaced, not repaired. A simple cracked bumper plus labor costs will do it. The responding police officer may estimate it lower, but it almost always costs more.
  • Injuries aren’t always immediately apparent. Sometimes everyone says they’re fine at the scene, but ends up at the ER or the doctor’s office later.
  • Stories can change. A police report captures them at the scene. ‘Nuff said.

While You’re Waiting for the Police to Respond to Your Accident

Assuming everyone’s OK, not belligerent, and you’ve been able to pull over to a safe spot:

  • Take photos of the vehicles with your phone. Include license plate numbers and any apparent damage.
  • Take photos of the other person’s info: driver’s license, insurance card an registration.
  • Get the other person’s phone number.
  • Record names, addresses & phone numbers of any passengers in either vehicle.

Won’t the Police Get Information About the Other Driver?

Yes, but police no longer are required to share this information at the scene, and they rarely do. We get it: the police are busy, and traffic accidents are mostly a paperwork chore for them. They didn’t become cops because they loved to file reports. And they file a lot of them. The police office will tell you that the insurance company can get the report and all the information online.

Important Things About the Accident Report that the Police DON’T Tell You

  • Accident reports aren’t available for a long time. If you’re lucky, it’s 2-3 days. In larger cities, it can be weeks. That’s a long time if you’re waiting to start your insurance claim.
  • Accident reports cost money to obtain. The insurance company will order one, so your local agent doesn’t want to pay for it, too – just to get the info to report your claim.

That’s where than info you gathered before the police arrived comes in handy.

  • You’ll be able to report your auto accident to your agent or insurance company with all the info you need.
  • If you were clearly not at fault, it allows you (or your agent, if you have one) to report the claim RIGHT AWAY to the other driver’s insurance company. This is especially important if you don’t carry collision coverage on your own vehicle. If the other insurance company accepts responsibility, they will pay to fix your vehicle and rent a replacement while yours is in the shop. If it turns out the other driver didn’t have valid insurance (it happens), you can make a claim under your own insurance, or, if you didn’t buy collision coverage, at least plan accordingly.
  • Your photos document the extent of damage at the scene. Believe it or not, things sometimes change between the time of an accident and the time an adjuster sees the vehicle (’nuff said).

Noyes Hall & Allen Insurance clients can report claims here, or call us at 207-799-5541. If you live in Greater Portland and find this information helpful, why not get 5 Maine car insurance quotes in 10 minutes from our website?

Does Homeowners Insurance in Maine Pay to Remove a Fallen Tree?

Posted on by admin

 

If a tree falls in your yard, and no one hears it, is it covered by your insurance? What about the cost to remove a fallen tree? The answer, as it is with all insurance questions, is “it depends”. Policy forms vary.

This post assumes that you have an “HO-3” Maine homeowners insurance policy using forms from the Insurance Services Office (ISO). This is the most common type of homeowners policy in Maine.

 

Did a Tree Hit Your Home or Other Structure?   tree damage

If so, you probably have coverage for:

  • The cost to remove the tree
  • The damage to your home, fence or other structure

But, not coverage of the cost to replace the tree itself.

Is a Fallen Tree Blocking Your Driveway?

Depending on the edition of your home insurance policy in Maine, you may have coverage for at least some of the cost to remove a tree that’s blocking your driveway. Even if it didn’t damage any of your property, the 2000 edition of the HO-3 policy provides $1000 of coverage ($500 max per tree). Older forms have no coverage unless the tree hits a covered structure.

 

Did a Tree Fall on Your Car?

If so, your auto policy, not your homeowners policy, might pay to fix your car. Hopefully, you have Maine auto insurance, and chose to buy “other than collision” (widely known as “comprehensive”) coverage. The cost to remove the tree is not covered by either home or auto insurance, unless the tree blocks your driveway (see above).

If There’s No Damage, There May Be No Coverage

If a tree falls without damaging any insured structures or blocking the driveway, you will likely need to pay the costs to remove it. Some insurance policies provide a limited amount of coverage for these cases. Check with your agent or insurance company to see if yours does.

Did Your Tree Hit Your Neighbor’s Property?

If so, the damage would be covered under THEIR homeowners policy, not yours. If the tree fell due to obvious neglect, your liability insurance might apply. For a more detailed explanation, see our prior post “Is Your Fallen Tree Covered by Maine Homeowners Insurance?”

Tips to File an Insurance Claim for a Fallen Tree

  • Take photos, preferably from different angles to show the damage.
  • If utility wires are involved, stay away! Call your electric utility to have the wires cleared.
  • Call your insurance agent or company to report the claim.

If you live in Greater Portland Maine, contact a Noyes Hall & Allen Insurance agent for answers to your Maine renters insurance, homeowners insurance and condo insurance questions. 207-799-5541. We’re independent and committed to you.

What Happens AFTER You Buy Insurance Online?

Posted on by admin

 

There are many ways to buy insurance. Online. Over the phone. Using an app. By email. In person. In 15 minutes. In 7 minutes. Whatever.

Buying Insurance May Be Easy…

But, it’s not how you buy insurance that creates value. It’s whether it’s there when you need it. If you buy insurance from someone hundreds of miles away, whom you’ve never met, or even talked to, do you really think they’ll be there to help later? We will.

A Week’s Worth of Questions We Dare You to Ask Your Internet Insurance Company

We helped Greater Portland Maine insurance clients with these issues, just in the last week:

  • My claim was denied, and I don’t think it’s right.
  • How can I insure property I co-own with three other people?
  • I want more umbrella coverage, but my insurer won’t do it, because I have a couple of speeding tickets.
  • I haven’t gotten my claim check from the other guy’s insurance company after he hit my parked car.
  • I need help completing this form that the insurance company sent me.
  • I’m helping my son buy a car; who should insure it?
  • My insurance company wants me to make some improvements to my home, but I need more time.
  • Who can clean my basement in Saco, Maine after a sewer backup?
  • Who is good Portland Maine jeweler to have appraise my pieces?
  • I own a classic car. What’s the best way to insure it?
  • I’m about to buy a new car. When is the best time to shop for the insurance?
  • My fiancee and I are buying a house together. Can we combine our car insurance, too?
  • Why does the insurance company want to know about other drivers in my house? They don’t drive my car!
  • Should I suspend my insurance for the winter on one of my cars?
  • Help! The Maine DMV suspended my license in error!
  • My former insurance company keeps sending me bills!
  • I’m moving to Maine. How do I register my car? When do I need to get a Maine license?
  • I’m moving to New Hampshire. Can I keep my cars registered in Maine?

Does your insurance company know Pleasant Hill from Munjoy Hill? Westbrook from the West End? Sebago from Sugarloaf? Would you trust the answer they gave you to even one of the questions above? If not, that’s why you need a local agent.

Insurance Choice Filter

It doesn’t matter how easy it is to buy insurance. It matters who’s there to help when you  have a problem that’s not so easy. That’s why you need a local agent.

For answers to your Maine insurance questions, contact a Noyes Hall & Allen agent. Right here in South Portland. 207-799-5541.

Should You Have a Personal Umbrella Policy?

Posted on by Bob O'Brien

Many financial advisors recommend personal umbrella coverage to protect your net worth and future earnings. The maximum liability limit offered by most home and auto insurers is $500,000. Even those with modest incomes can exceed $500,000 in net worth, as they pay off debt, accumulate retirement savings, or receive an inheritance.

Maine’s Wrongful Death Statute allows lawsuits up to $500,000 in addition to specific medical or property damages (update: as of 2023, Maine’s Wrongful Death Statute permits up to $1 million in damages, with automatic increases for inflation – even more reason to have an umbrella!) .

If you don’t have enough liability insurance, you could be forced to pay out of your own assets and future earnings. Also, when your insurance runs out, so does your coverage for legal costs.

What Is an Umbrella Policy?

Maine Personal Umbrella Insurance provides excess liability protection above your home, auto, boat, RV and other primary insurance. Umbrella policies are purchased in increments of $1 million. They may be added to a personal package policy or purchased separately on a “stand-alone” policy.

How Much Does Personal Umbrella Insurance Cost?

Maine Personal Umbrella policies are quite inexpensive – often less than $200 per year for $1 million in protection. Insurance companies can offer these low prices because they require you to maintain a certain amount of “underlying” coverage, usually $300,000 or $500,000. Insurers know that claims larger than that are rare, so umbrella policies are priced accordingly.

Personal umbrella insurance protects your assets against major lawsuits.

Can Someone Garnish My Wages?

Absolutely. If you don’t have enough assets to pay for a legal judgement, but you expect to work in the future, the court can garnish a percentage of every paycheck you receive until the debt is paid.

Could I Lose My Home or My Retirement Savings?

Courts don’t  like to force  someone to sell their primary residence to pay for legal judgement, but it does happen.

How Much Personal Umbrella Insurance Should I Buy?

Umbrella policies come in increments of $1 million. Many insurance companies sell up to $3 million, which is sufficient for many Americans. Higher limits are available, however, for those who need extra protection.

For more information about personal umbrella insurance in Maine, contact Noyes Hall & Allen at 207-799-5541. We would be happy to help you decide if an umbrella policy is right for you.

Does Maine Auto Insurance Automatically Cover a New Vehicle?

Posted on by Bob O'Brien

Does Maine personal auto insurance automatically cover a new vehicle? Many clients wonder about this when they purchase a new car on the weekend or after work, when their agents’ office is closed. 

The answer varies, but most preferred auto insurance companies in Maine  automatically cover a new vehicle if you have an existing policy.

Most companies that sell insurance through a Maine Trusted Choice Independent Insurance Agent like Noyes Hall & Allen use policy forms written by Insurance Services Office (ISO). This infographic outlines the automatic coverage for new vehicles in an ISO Personal Auto Policy. Your policy may be different. Check with your agent if you’re not sure.

Does Auto Insurance Automatically Cover a New Vehicle in Maine?

Your Policy May NOT Automatically Cover a New Vehicle

This information is for personal auto policies only. Most commercial insurance policies do not automatically cover new vehicles. Be sure to check with your business insurance agent if you’re buying a new vehicle for your business or organization.

Many Maine insurers don’t use ISO forms, even for personal policies. These include Progressive, State Farm, Allstate and GEICO. If you’re insured by one of those companies, call your insurer to find out how they treat new autos.

For example, Progressive’s auto policy appears to match coverage to the old vehicle when you’re replacing a car. If you replaced an old vehicle that didn’t have collision coverage, the new vehicle won’t be covered for collision until you notify Progressive. GEICO’s auto policy appears to have the same restriction. State Farm’s policy doesn’t appear to distinguish between an additional vehicle and one that replaces a vehicle on the policy.

What Info Your Agent Needs

If you’re planning to pick up a new vehicle outside business hours, check with your insurance company or agent. For answers to these and other insurance questions, contact Noyes Hall & Allen in South Portland Maine.

If you’re already a Noyes Hall & Allen client, you can notify us about vehicle changes from our Client Center, or use the links below to text or email photos of your VIN and lender or lease information.

We’re independent and committed to you.

Link: Send email to NH+A

Link: Send text to NH+A

Does Maine Homeowners Insurance Cover Stuff Away from Home?

Posted on by admin

 

Clients often ask if their homeowners insurance covers their belongings when they’re away from home. Here are 3 recent email inquiries with common scenarios:

  • I have removed some furniture and other items that were at my condo and am storing them at a warehouse.  Is my stuff is covered under my condo insurance, or do I need to insure the stuff through the company that is storing the items?
  • I’ve rented a self-storage unit for some of items that I don’t have room for in the garage. Are these items covered while they’re in storage?
  • I’ll be renting a condo in Florida for the month of March. Are my belongings covered when I’m away from home?

This infographic spells out the coverage found in most Maine homeowners insurance policies. Your coverage may differ, so check with your Maine insurance agency.

Off Premises Homeowners Coverage

In general, your belongings are covered to 100% of your Personal Property (Coverage C) limit on your Maine condominium, renters or homeowners policy. It doesn’t matter where they’re located, anywhere in the world.

The only exception is if they’re at a residence of yours other than the one listed on your policy. Then, it’s only covered to 10% of your Personal Property limit, or $10,000, whichever is LESS. Presumably, the personal property at that residence would be covered by another homeowners, renters or condo policy.

Keep in mind that certain types of property, such as jewelry and silver, have limited coverage on most policies. Talk to your agent about insuring jewelry on a homeowners policy.

If you need insurance in Greater Portland Maine, contact Noyes Hall & Allen Insurance in South Portland at 207-799-5541.We’re independent and committed to you.