What is “Dwelling Fire” Insurance?

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Most Maine home insurance is written on a homeowners policy. But certain types of property do not qualify for homeowners policies, either because of the characteristics of the property or its occupancy. Properties that do not qualify for Maine homeowners insurance are often insured on a Dwelling Fire policy.

Does a Dwelling Fire Policy Only Cover Fire?

The name is misleading. All Dwelling Fire policies cover more than just fire. How much more depends on which policy form you have.

Dwelling Fire policies offer 3 common flavors: DP-1, DP-2 and DP-3. Homeowners policies also have 3 options, HO-1 through 3. The vast majority of Maine homeowners policies are HO-3; likewise, DP-3 is the most common coverage level found on Maine Dwelling Fire policies.

DP-3 Dwelling Fire policies and an HO-3 Homeowners policies have very similar coverage for buildings. Building coverage is considered “open perils”: unless a cause of loss is excluded, it is covered. The lower-numbered policies provide more restrictive “named perils” building coverage; only specifically listed causes of loss are covered. The DP-2/HO-2 building section covers 12 named perils. The DP-1/HO-1 only covers 4: Fire & lightning; windstorm; explosion; and vandalism.

The Difference Between a Dwelling Fire Policy and a Homeowners Policy

There are several key differences between the two policies.

  • Dwelling Fire policies do not automatically include Liability or Medical Payments coverage.
  • Theft of contents is not covered by Dwelling Fire policies (you can sometimes purchase a small amount for an additional premium).
  • Dwelling Fire policies typically don’t permit optional coverage extensions that are common to homeowners policies (e.g. water backup; identity theft; fallen tree removal; food spoilage).

 

Related Post: What’s the Difference Between a Homeowners Policy and a Dwelling Fire Policy? 

Why do I need to Buy a Dwelling Fire policy?

A Dwelling Fire policy may be required for:

  • Property rented to others.
  • Seasonal property.
  • Other properties as determined by an insurer’s Underwriting Department.

A Dwelling Fire policy covers your property for more than fire. Coverage is generally not as broad as a homeowners policy, but it’s not as limited as the name implies. For advice about your particular situation contact your Maine insurance agency or Noyes Hall & Allen at 207-799-5541.

Do I Have to Wait for the Insurance Company Before Repairing Maine Storm Damage?

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Hurricane Irene visited Maine yesterday. Fortunately, the southern Maine wind damage was mostly limited to fallen trees and limbs – at least judging by our clients who contacted us to report an insurance claim.

The most common claim question today is “A tree fell on my house. Can I remove it, or do I have to wait for the insurance company to inspect it”? As this prior post explained, fallen trees aren’t always covered by insurance. But, if a tree lands on your home or other structure, your homeowners or business policy probably covers both the damage it causes and the cost to remove it.

Generally, it’s fine to remove the tree from your home or driveway to assess the damage and to  make temporary repairs to preserve your property. You don’t need to wait for the insurance adjuster to see it; they can usually tell what happened by the scars that the tree or limb left behind.

5 Things to Do if a Tree Falls on Your Property

  • Document the damage with digital photos or video.
  • Take action to preserve your property from further damage. Remove the tree from the structure, make temporary repairs, or move property indoors.
  • Save damaged property for the insurance company to inspect.
  • Schedule – but don’t begin – permanent repairs. Repair contractors are very busy after a natural disaster. The earlier you schedule your job with a reputable, experienced and insured contractor, the better the chance of your property being repaired faster. Do not start repairs until the insurance company has a chance to see your damage.
  • Report your claim. Noyes Hall & Allen clients can contact an agent to start the process.

If you have questions about Maine homeowners insurance, condo insurance, renters insurance or insuring your Maine business property, call Noyes Hall & Allen at 207-799-5541.

Does a Maine Homeowners Insurance Policy Cover Hurricane Damage?

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That may be the most popular insurance question of this week as Hurricane Irene curves its way toward the East Coast.

The Good News…

Most Maine homeowners insurance policies cover wind damage, wind-driven rain, damage to a home from falling trees, and other common types of hurricane damage.

BUT…

In the past 5 years, many insurers have introduced special deductibles for property located within a quarter-mile of the coast. Sometimes, the deductible applies only in the case of a hurricane, or other “named storm”. Other insurers’ policies have higher deductibles for all wind damage, even from a February nor’easter.

These deductibles are usually expressed as a “percentage deductible”. Common deductible percentages are anywhere from 1 to 3% of your property insurance amount. In other words, on a $250,000 home, a 2% wind deductible would be $5,000, and would apply to any wind damage.

You should check your own policy to find out what kind of deductible is on your homeowners, Maine renters insurance or Maine condo insurance policy, and how large that deductible is.

What About Other Hurricane Claims?

Standard homeowners policies do not cover damage from loss of power, such as food spoilage or basement water backup caused by a sump pump not working. Often, you can buy some power failure coverage.

Likewise, homeowners policies have little or no insurance coverage for fallen trees, unless they strike a structure or block a driveway. Some insurers sell endorsements that offer limited coverage for this.

Finally, flood damage is NOT covered by homeowners policies. You must buy NFIP Maine flood insurance to have flood coverage.

FMI

For more information about Maine hurricane insurance for homes, autos, condos, boats or other property, contact Noyes Hall & Allen Insurance at 207-799-5541. If you are already a client, and need to report a Maine insurance claim, visit our web site, or call the number above for instructions.

Hitting Miranda Cosgrove’s Bus: A Liability Insurance Fable

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If your household is like mine, you have an iCarly fan. Teens and tweens across America were distraught by news that iCarly’s star Miranda Cosgrove’s ankle was broken in a bus accident, causing her to postpone her popular “Dancing Crazy” summer tour. Fortunately, no one was seriously hurt.

How Much Auto Liability Insurance Should I Buy?
That’s a question we hear often. Many people who shop for Maine auto insurance have purchased “split liability limits”, which contain separate limits for bodily injury and property damage. On split limits policies, Bodily injury is also subject to a “per person” sub-limit. If you have one of these policies, your liability coverage might say 100/300/50. This means you have $100,000 of bodily injury coverage per person, subject to a $300,000 maximum per accident; and $50,000 property damage.

What If You Cause a Serious Accident?
Let’s pretend that you were responsible for the accident that injured Miranda Cosgrove, and you had those common Maine liability limits shown above.

There were 5 people on the bus. Would $100,000 be enough to pay for any one person’s medical bills? Would $300,000 be enough for all the bus’ occupants? Maybe. Maybe not. What if our fable had a commuter bus full of people? Uh-oh.

And that’s just the injuries from one vehicle. What about the damages from lost income due to the postponement of Miranda Coscrove’s tour? What about any other vehicles that may have been involved?

Who Will Defend Me Against a Liability Suit?
This fable has a knight in shining armor! Your auto liability insurance pays defense costs – regardless of whether the suit is groundless, and in addition to the limits of your policy. As long as you have liability limits remaining, your insurer will defend you.

What if You Don’t Have Enough Liability Insurance?
 If you’re legally liable for damages, and your insurance isn’t enough to pay them, two bad things happen.

  • Your defense coverage stops. That means you have to pay for your own legal representation to defend yourself.
  • Your assets and future earnings are fair game. You could be forced to turn your home, investments, savings or other assets into cash to pay the damages. If that’s not enough, the court can garnish your future wages.

That’s a Fable. What Are the Chances?
Fortunately, they’re slim. But, celebrity sightings in Maine are common, especially in summer.  And, you might be unlucky to meet a celebrity in the worst way possible – by accident.

Remember, you don’t buy insurance to protect you from the probable – you buy it to protect your assets from financial disaster.  Buy enough to protect your assets and your future earnings. We generally recommend against split limits, and often suggest that our clients consider Maine personal umbrella insurance. For custom advice about your situation, or a Maine auto insurance quote, contact Noyes Hall & Allen agent at 207-799-5541 – and live happily ever after.

 

Three Ways Green Drivers Can Save on Maine Car Insurance

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Even Maine’s most environmentally conscious citizens usually own a vehicle. You might own more fuel-efficient or hybrid model, or you may drive fewer miles than average, but in a rural state like Maine, few people can live a car-free lifestyle.

If you own a vehicle, auto liability insurance is mandatory in Maine. But green auto insurance discounts can help you reduce your costs and your carbon footprint at the same time. Here are three ways to save money on insurance by going green.

Drive Less

Recently introduced in Maine, Progressive Snapshot discount offers you up to a 30% discount for driving less, driving more safely, and avoiding driving during those dangerous post-midnight hours. Other insurance companies are following suit.

Some people call this as Pay-as-You-Drive insurance, or PAYD. Organizations like the Better World Club, consumer advocates and public planners have advocated this type of discount. A study by the Pacific Institute for Climate Solutions (,pdf) concludes that “…PAYD changes insurance into a variable cost, so motorists save money when they reduce their mileage. As a result, they tend to drive less.”

While it’s not for everyone, many people who drive only when necessary could rack up significant car insurance savings. Do you qualify for the Snapshot discount? Check our recent blog post, or call your local Maine Progressive Insurance Agent.

Get a Hybrid or Electric Vehicle

Companies like Travelers Insurance offer Maine insurance discounts for electric and hybrid vehicles.  Would you like a Maine Electric or Hybrid car insurance quote? Click on the link to the left or contact Noyes Hall & Allen at 207-799-5541.

Go Paperless

There are two ways to save money on your insurance by going paperless.

  • Paperless policy delivery – The insurance company produces electronic copies of your documents, which you can retrieve on your computer, smartphone or iPad. Paperless insurance discounts pass the savings along in the form of lower rates.
  • Paperless billing (electronic funds transfer, or EFT) – You can save $60 a year on your car insurance by setting up automatic monthly withdrawal of your premiums. Instead of the insurance company mailing you a bill, they take the money from your checking account. This saves paper, time and postage. It also avoids a potentially catastrophic lapse in insurance coverage due to late payments.

By being a green insurance buyer, you do good for the environment AND your budget. For more information about green insurance discounts contact our Greater Portland, Maine insurance agency.    We’re independent and committed to you!

Three Ways to Keep Epsilon Spammers from Phishing Your Money!

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On March 30, Epsilon, one of the world’s largest email marketing companies, reported a breach of their system.  Epsilon sends more than 40 billion emails a year to consumers who register on one of their clients’ websites or who give their email addresses while shopping.

Have You Received an Email Like This One?

“Dear Valued Customer,
On March 30th, we were informed by Epsilon, a company we use to send emails to our customers, that files containing the email addresses of some [company name here] customers were accessed without authorization.”

Millions of people have. As of April 18, 2011, clients of more than 100 companies and brands have been hit, including big names like GlaxoSmithKline, Shell, Radio Shack, PacSun, Capital One, JPMorgan Chase, J. Jill, Sears, Crate & Barrel, Walgreens and Abercrombie & Fitch.

According to Epsilon, the breach was limited to email addresses or customer names only; they report that no other personal identifiable information was stolen. Despite that, many security experts are concerned about the implications.

Having even a person’s email address and their spending habits or favorite brands may make it easier to craft a sophisticated phishing attack. For example, you could get an email that appears to be from a company you know and trust, asking you to log in and provide  information that may seem harmless. This nefarious technique is called “spear-phishing”.

Prevent Phishing Attacks

1.  Stay on guard – especially now. Be extra careful about where you click and what information you enter on a website.

2.  Scrutinize emails from any company. Look for typos and strange URLs. Look at the email address of the sender. Don’t click on those links!

3.  Call the company in question if you get a suspicious email,. No company should be asking you for sensitive information by email.

If you have questions about identity theft in Maine, contact Noyes Hall & Allen, a Maine Trusted Choice independent insurance agent. If you’re looking for Maine data breach business insurance, our business insurance specialists can help.  Call us at 207-799-5541.

Thanks to Steve Anderson for sharing these tips, which we’re sharing with his permission.

Progressive Snapshot Debuts in Maine. 5 Questions To Ask to See if It’s Right for You

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Progressive Insurance’s Snapshot auto insurance discount launches in Maine today, featuring rates up to 30% less than before. Our South Portland, Maine insurance agency has been certified to sell this ground-breaking safe driving and low-mileage auto insurance discount. It features a small device that you install in your vehicle, which monitors your driving habits and may provide an auto insurance discount depending upon the results.

Our March 15 blog post featured a detailed explanation of Progressive’s Snapshot auto insurance discount, along with our opinion about it. We received a lot of compliments about that review, from other agents, vendors – even Progressive itself.

Is it Right For You?

The answers to these 5 questions will probably tell you.

1. Do you avoid driving regularly between midnight and 4am?

2. Do you avoid driving in heavily congested traffic?

3. Do you drive fewer than 8,000 miles a year?

4. Are you a “patient driver” (rarelybrake hard or accelerate rapidly)?

5. Will you plug a device into your car that automatically reports your driving information directly to your insurance company?

If you answered “yes” to 2 or 3 of the first 4 questions, Snapshot may be a good fit for you. If you answered “no” to question 5, forget it; you can only earn Snapshot discounts by installing (and leaving) the device in your vehicle. Remember, Snapshot is optional, and you can choose which of your vehicles you want to enroll in the discount program.

Your Maine Progressive insurance agent can advise you best. If you live in the Portland, Maine auto insurance market, call Noyes Hall & Allen at 207-799-5541. If you’re outside our market area, call your local Progressive agent.

Game Changer: Pay as You Drive Car Insurance in Maine – Is Progressive Snapshot a Good Deal for You?

Posted on by Bob O'Brien

Let’s face it. Everyone thinks they’re a better-than-average driver. Most people think they drive fewer miles than the norm. And lots of us think that we’re paying too much for insurance because we subsidize those who are more aggressive,  less attentive,  less responsible drivers than we are. Soon, we will have a chance to put our money where our mouth is.

For years, green organizations like the Better World Club,  consumer advocates and transportation planners have called for lower insurance rates for people who drive less than average. Some call it ‘pay as you drive”; others call it “usage-based insurance”.

We’ve been watching this issue for years. We’ve shared our reservations about pay as you drive insurance and its cost – not only in dollars, but in lack of professional advice and lost privacy. While the concept sounded intriguing, we haven’t found a product we were comfortable recommending to our clients.

Until now.

“This is Our iPod”

Progressive Insurance is bringing its Snapshot auto insurance to Maine next month. With this product, they’ve refined the concept and addressed many of the concerns that we identified with the previous generation of usage based insurance.

Progressive says “this is our iPod”, a product that will change the way people buy and use car insurance. With Snapshot, Progressive offers discounts for quantity (driving less) and quality (driving better).

We think that usage-based Maine auto insurance has a good chance to redefine how car insurance is rated, and empower consumers as never before. It rewards safe driving habits by offering car insurance discounts for risk-reducing behaviors such as gradual starts and stops, driving fewer miles, and staying off the roads during the most dangerous hours.

Progressive appears to have respected the line between information gathering and privacy invasion. They’ve also removed the cost uncertainty that concerned us in the first generation product. Finally, they’ve integrated a cool feedback tool that allows drivers to self-monitor and compare their driving to others on the road.

We haven’t been fully briefed on Snapshot auto insurance, but these are some of the coolest rumored features:

Discounts!

Depending on your driving behaviors, you may earn up to a 30% auto insurance discount. You’re eligible for your first discount after 30 days. Your “final” discount will be set after your first 6 month policy term. Because the discount is based upon individual vehicle data, a different discount percentage will probably apply to each of your vehicles.

Voluntary and Flexible

You will be able to choose whether or not you want Snapshot or traditional rating. You’ll even be able to choose which vehicles you want to be rated in Snapshot. Let’s say you drive from South Portland to Augusta every day, but your spouse stays home to care for your toddler. You might choose traditional rating for the commute vehicle, and Snapshot for the other.

Truly Rewards Responsible Behavior

Maybe you’re a safe driving advocate, gas mileage fanatic or carpool rider. Maybe you use public transit or commute by bike. Snapshot is the first Maine car insurance that rewards your green behavior with green in your pocket.

We think that this may lead to safer roads, however marginally at first. Snapshot drivers are likely to try to reduce their car insurance rates by driving less and driving more safely. Who knows, maybe classes like Maine Clean Communities EcoDriving Workshop (offered in April for fleet drivers) will become popular with individuals, too?

Professional Advice

Snapshot is not a good idea for everyone. Because it will be sold by an independent Maine insurance agent, you will be able to talk with a professional about your situation, and determine if it’s a likely fit for you. If it’s not, an independent agent has other options for you.

No Up-front Cost

Unlike the first generation of pay as you drive car insurance, you don’t have to pay for the monitoring equipment. Progressive gives it to you; when your monitoring period (about 6 months) is over,  you simply mail it back to them in a prepaid envelope.

Cool Monitoring Tools

You can view your driving data up to the minute online. This just cries for an an update to the Progressive iPhone app. You will be able to see if you are tracking to get a discount within ten days of installing your device. Progressive will report how your driving compares to others. They will report how you drive, when you drive, and how much you drive. You’ll be able to use this feedback to improve your driving – and get a  lower car insurance rate.

Sounds Good. What are the Drawbacks?

Privacy Concerns

The devil of this concept has always been in the details of monitoring and reporting. Just what information does Snapshot capture? With whom is it shared? The Snapshot device is not a GPS. It doesn’t record where you drive – only how and when. It records mileage, speed and time driven. It also uses an accelerometer (the way Toyota’s “glass of water” iPhone app does) to measure hard braking and jack rabbit starts. It transmits this information to Progressive via cell signal.

Progressive says they will not share this information with any third parties. But what if their data is subpoenaed following an accident? We have no doubt that the data would be provided. – and possibly become public information. And, while the device doesn’t have a GPS, it does use cellular technology. It’s not too crazy to think that one could identify where your vehicle is or was by what cell tower picked up your Snapshot signal. Whether that’s good or bad might depend on whether you’re trying to recover your stolen car or whether someone accuses you of causing an accident, and reports your license plate number to the police.

Privacy Rights Clearinghouse, a consumer privacy advocacy group, has testified their objections to pay as you drive insurance in the past. The publisher of Privacy Journal also expressed concern in this USA Today article. But as long as Snapshot remains an “opt in only” product, you can simply say no  if you think the cost of your lost privacy outweighs the insurance discount.

How Do You Know if You’re a Good Candidate?

Don’t drive much?  Have more vehicles than drivers? Have a “toy” for the weekends, or a truck that you only use for yard work and dump runs? Chances are good that usage based insurance will save you money.

Have Questions?

If you live in the Greater Portland area, contact Noyes Hall & Allen Insurance at 799-5541. If you live elsewhere, call your Maine independent agent who sells Progressive products. You can also see Progressive’s Snapshot page for more information.

Identity Theft in Maine – Can Insurance Help?

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Identity theft has been a hot topic in Maine recently. It’s a nearly unavoidable risk in our digital age. Many of our clients have asked about “identity theft insurance”.  We’re not aware of any insurance that can prevent identity fraud from occurring, or pay for fraudulent charges someone may make on your account. Some of the insurers we represent do offer solutions that can help if your information has already been compromised.

Experts recommend using the  3 D’s” to help you reduce the chance of identity theft, and deal with it if it does happen: Deter, Detect and Defend.

DETER Identity Theft

  • Shred financial documents before you throw them away.
  • Don’t give out personal info to anyone unless you have initiated the contact and know who you are dealing with.
  • Lock personal information at home, especially if you are having work done at your house, or have roommates.
  • Choose complex passwords. Avoid birth dates or easily guessed numbers or phrases.
  • Don’t print your Social Security Number on checks,  carry your card in your wallet, or give it out unless absolutely necessary (insurance agents may ask for it to quote your home or auto insurance; it’s not required, but does provide the most accurate quote).

DETECT by Monitoring Your Accounts

  • Inspect financial statements for charges you did not make.
  • Check your credit report for information that seems incorrect.
  • Be alert to bills that do not arrive as expected.

DEFEND Yourself as Soon as You Suspect a Problem

  • Place a “fraud alert” on your credit reports. To place an initial 90-day fraud alert, call one of the three nationwide credit reporting companies:
    • Equifax:             800-525-6285
    • Experian:          888-397-3742
    • TransUnion:     800-680-7289
  • Close accounts that have been affected. Ask for written verification that the account has been closed and any fraudulent debts wiped out.
  • File a police report.

Identity Fraud Insurance in Maine

Your Maine insurance agency probably sells products that can reimburse you from expenses incurred to help you recover from identity theft.

 Identity Fraud Insurance May Pay for:

  • Cost of notifying merchants, credit agencies and lenders.
  • Lost wages and incurred daycare expenses for time you spend notifying authorities and lenders.
  • A “resolution service” to work with you through the process.
  • Fees for re-applying and re-issuing government-issued personal documentation.
  • Loan application fees for re-applying if your application was rejected because of incorrect credit information.
  • Attorney fees for defense of lawsuits from creditors, criminal charges, or contesting wrongfully incurred tax liability.

 

Identity Fraud Insurance Does NOT pay for:

  • Fraudulent charges on a credit card (these are usually wiped out by the lender, provided you notify them promptly).
  • Extra expenses you may incur because your credit was frozen due to suspected identity fraud.

Many of the insurance companies we represent sell Identity Fraud Expense Reimbursement coverage. To speak with an experienced Maine insurance agent, contact us at 207-799-5541.  For more information about identity theft, we recommend the FTC’s consumer web site.

 

Avoiding Commercial Building Roof Collapse: Removing Snow from a Roof

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This week’s snow has accumulated on the roofs of Maine homes and commercial buildings, increasing the risk of collapse and ice dams. The snow has finally stopped in Portland, Maine – at least temporarily. It’s a good time to evaluate whether you need to remove snow from a roof.

High-Risk Areas – Heavy Snow Load Can Cause Roof Collapse

  • Large, flat roofs, or those with less than a 30º slope.
  • Heavily insulated roofs
  • Roofs with previous structural damage or stress.
  • Shaded areas, where snow can freeze into ice.

Evaluate Your Commercial Roof Before Snow Load is Critical

  • Create a plot plan to identify skylights, drains and scuppers, wiring and equipment.
  • Monitor rooftop conditions throughout the winter to identify ice buildup, blocked drains and snow drifts.
  • Use experienced, knowledgeable employees or (preferably) hire an outside contractor.
  • Hire only experienced contractors who can provide proof of business general liability insurance.

Warning Signs of Roof Collapse

  • Improper operation of doors or windows.
  • Deflection of ceiling finishes or exposed beams.
  • Roof leaks
  • Sprinklers moved from their normal positions
  • If you notice these, contact a structural engineer or your local building inspector.

How to Safely Remove Snow from a Roof

  • Do not remove snow all the way down to the roof membrane.
  • Use plastic shovels – never metal – on your roof.
  • Fill a plastic tarp with snow and release over the side of the building, carefully watching where snow is landing to avoid people and property.
  • If using a snow blower, adjust to prevent rotating components from contacting the roof surface.

Most Maine business property insurance policies cover roof collapse. Policies do not typically cover maintenance such as snow removal or other prudent loss prevention measures. If you have questions about commercial building insurance, contact the experienced Maine insurance agents at Noyes Hall & Allen Insurance at 207-799-5541.

We’re proud to be agents of Acadia Insurance, MMG Insurance and Hanover Insurance,  whose loss control tips which were used in this blog post.