Does Your Maine Insurance Policy Cover Wind Damage?

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The National Weather Service confirmed on Thursday what many Mainers knew Wednesday night: tornadoes touched down in southern Maine, causing widespread damage. Our Maine insurance agents have been busy answering clients’ questions about damage ranging from fallen trees to wind damage – even lightning damage. Their first question, of course: “Does my insurance cover my windstorm damage?”

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.

Maine Drivers: What’s Your “Third Number”?

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Every so often, a local news article like this one appears. Something goes wrong, and a Maine driver finds their vehicle in somebody’s living room – or bank lobby.

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.

P.S. 

In the 6 years since we first posted this, lots of similar accidents have occurred. Just this week, the Press Herald Headline said “Young Driver Smashes Car into Scarborough Natural Food Store“. Our advice is just as relevant as ever.

Happy Retirement, Barbara!

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Friday marks the end of an era.

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!

Maine’s Low Car Insurance Rates Lead the Nation

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As recently reported in the New York Times‘ “Wheels” blog,  The average  cost of a Maine auto insurance policy is $902.85 per year, the lowest rates in the country.

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…

Maine - The Way Life Should Be

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!

Update: Maine Flood Insurance Re-Authorized until May 31

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For the second time in a month, The National Flood Insurance Program lapsed on March 28 due to lack of continued federal funding. The Senate left for Easter recess until April 12 without addressing HR4851, which would have offered an extension. This leaves anyone looking to buy Maine flood insurance – or in any other state – high and dry, in the height of flood season.

If You’re Buying a Home and Need Flood Insurance
Flood insurance servicing companies are collecting applications, but cannot accept them or bind coverage until the NFIP is re-authorized by the Senate. If your lender requires proof of flood insurance, this may delay your closing. Talk to your lender for more information. You literally can not buy flood coverage without an act of Congress.

If You Already Have Flood Insurance, and Need to Make a Claim
Claim payments  will be continued as usual for all policies currently in effect.

If You Have Flood Insurance and Need to Increase Your Coverage
Coverage cannot be increased on existing policies until the NFIP is reauthorized. This may delay a loan closing if you are refinancing or taking out a home equity loan.

If Your Flood Policy is About to Renew
Renewal policies can not be issued during the lapse. Many companies sent renewal bills prior to March 28. If you received a bill and paid it, your coverage should be in force. If your premium was not paid before March 28, coverage cannot be bound until after the NFIP is reauthorized by Congress.

What You Can Do
The NFIP is the only primary flood insurance available for residential properties. Many insurers have a servicing contract to issue business on behalf of the NFIP, but it is a government program. Without reauthorization, the program is essentially shut down. Call or email your senator to let them know what this lack of funding means to you. While there’s no guarantee, the NFIP reauthorization will likely be retroactive to March 28 – once it’s finally passed. That’s usually what happens in these cases.

Even during normal operation, the National Flood Insurance Program operates differently than most insurance programs. There are waiting periods and underwriting rules and requirements that are unique to this program. It’s impossible to advise you about your individual situation with a blog post like this. Call a Maine homeowners insurance agent for advice about your own insurance.

UPDATE:
As of April 15, 2009, Congress passed, and the President signed into law, a bill reauthorizing the National Flood Insurance Program (NFIP) until May 31, 2010.  The extension included retroactive funding to cover two gaps in the program (March 1 – 2 and March 29 – April 15, 2010). The program will expire again on May 31 unless it is further extended. Stand by!

Maine Flood Insurance Unavailable

Posted on by admin

For the second time in a month, The National Flood Insurance Program lapsed on March 28 due to lack of continued federal funding. The Senate left for Easter recess until April 12 without addressing HR4851, which would have offered an extension. This leaves anyone looking to buy Maine flood insurance – or in any other state – high and dry, in the height of flood season.

If You’re Buying a Home and Need Flood Insurance
Flood insurance servicing companies are collecting applications, but cannot accept them or bind coverage until the NFIP is re-authorized by the Senate. If your lender requires proof of flood insurance, this may delay your closing. Talk to your lender for more information. You literally can not buy flood coverage without an act of Congress.

If You Already Have Flood Insurance, and Need to Make a Claim
Claim payments  will be continued as usual for all policies currently in effect.

If You Have Flood Insurance and Need to Increase Your Coverage
Coverage cannot be increased on existing policies until the NFIP is reauthorized. This may delay a loan closing if you are refinancing or taking out a home equity loan.

If Your Flood Policy is About to Renew
Renewal policies can not be issued during the lapse. Many companies sent renewal bills prior to March 28. If you received a bill and paid it, your coverage should be in force. If your premium was not paid before March 28, coverage cannot be bound until after the NFIP is reauthorized by Congress.

What You Can Do
The NFIP is the only primary flood insurance available for residential properties. Many insurers have a servicing contract to issue business on behalf of the NFIP, but it is a government program. Without reauthorization, the program is essentially shut down. Call or email your senator to let them know what this lack of funding means to you. While there’s no guarantee, the NFIP reauthorization will likely be retroactive to March 28 – once it’s finally passed. That’s usually what happens in these cases.

Even during normal operation, the National Flood Insurance Program operates differently than most insurance programs. There are waiting periods and underwriting rules and requirements that are unique to this program. It’s impossible to advise you about your individual situation with a blog post like this. Call a Maine homeowners insurance agent for advice about your own insurance.

Independent Contractor or Employee in Maine

Posted on by Bob O'Brien

Workers’ Comp Costs Hang in the Balance

(Note: Maine law regarding independent contractor or employee changed January 1, 2013. This post from March, 2010 remains accurate. For the most up-to-date information, see “How to Save Insurance Costs and Win More Jobs Under Maine’s New Subcontractor Law“. )

What’s the difference between an independent contractor or employee? It’s the Maine workers comp insurance question that’s worth a lot more than $64,000: Guess wrong and you could end up with a huge Maine workers comp audit bill from your insurance company.

Independent Contractor or Employee – Why it Matters

Maine workers comp policies pay the costs of medical and lost time damages for employees. Who’s responsible if a worker is hurt on the job? Contractors are not responsible for injury costs for independent contractors; the independent should buy their own workers comp insurance to protect themselves and their own employees.

Independent contractor or employee? It's an important question in Maine.

Up to Now
Until recently, Maine workers comp insurance agents instructed their contractor clients to obtain certificates of workers comp insurance from subcontractors. Then, when the insurance company conducted the Maine workers comp audit, the premium auditor would exclude the subcontracted cost when calculating workers compensation premium. This was an effective cost and risk control technique.

Maine Independent Contractor or Employee: a New Definition

A new Maine law, effective January 1, 2010, (P.L. 2009, Ch. 452) sets a new standard for defining an independent contractor in the construction industry. It says that a person is presumed to be an employee unless that person meets all 12 parts of a new definition of independent contractor.

Contractors must pay Maine workers compensation insurance (by reporting the payroll to their workers comp insurer) for anyone who does not meet that new definition. Moreover, the employer must get pre-determination before each job starts, or all workers are considered employees.

Best Practices for Employers

Under  PL 2009, a contractor must obtain either:

  1. A Maine workers compensation certificate of insurance for the independent showing that coverage was in force for the duration of the job; or
  2. “Predetermination of Independent Contractor Status” from the Maine Workers Compensation Board. This predetermination is not binding – an injured worker might still be shown to be an employee after the fact – but it allows the contractor to presume that the worker is an independent contractor, and thereby not purchase Maine workers compensation insurance on their behalf.

The Maine Workers Comp Board does not approve predetermination requests retroactively; the contractor must have the determination letter as of the date the work begins. Moreover, the Maine Workers Compensation Board took the position that a predetermination is required for each and every job that the independent does, regardless of the scope or duration of the job.

Needless to say, this is proving to be a hardship for general contractors and independents alike. The contractor’s typical job is short-notice, and independent contractors are often hired on the same day, leaving no time for a predetermination request to work its way through the Workers Compensation Board. Contractors are paying higher workers compensation premiums to include independent contractors, or risk losing the work due to delays.

Emergency Legislative Relief Considered

The 124th Maine Legislature has taken up LD 1815, in an attempt to clarify subcontractor status and to ease the burden on the day-to-day operations of contractors. While a Predetermination of Independent Contractor Status would still be required, the predetermination would be valid for one year. At least a contractor would not have to have this predetermination for every job. They could keep this form in their files and thereby exclude the independent’s payroll from their workers compensation rating.

We believe the proposal to require a predetermination on an annual basis is a step in the right direction. We hope the Maine Legislature agrees.

For More Info about Maine Workers Compensation Insurance

For more information and advice about Maine business insurance, contact a Noyes Hall & Allen Insurance agent in South Portland at 207-799-5541. As an independent agency, we offer a choice of many of Maine’s preferred business insurance companies. That means we can compare insurance options to help you find the best fit for your business.

In other words, we’re independent and committed to you.

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Is the City Responsible for Your Sewer Backup in Maine?

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There are few nightmares for Maine homeowners more unpleasant than a sewer backup in the basement. We don’t need to go into details about sewer backups. Suffice it to say, we hope you’ve never seen one, and never will. Unfortunately, they’re all too common in heavy rains.

What Causes Sewer Backup?

  1. Sewer lines become full of groundwater or storm water, and back up, usually through basement drains.
  2. Line blockages in the street cause a backup.
  3. Tree roots or some other obstruction on your property blocks the line from your home to the street.

How Can I Prevent a Sewer Backup?

The most common protection is to install a backflow valve. This is designed to allow sewage to flow out of your home (“the good way”), but not from the street into your home (“the bad way”). These are sometimes called check valves or flap valves. Gate valves are manually operated, and completely seal the pipe leading from your home to the street. A plumber can recommend the best solution for your home.

What if I Have a Sewer Backup?

  1. Call your city’s sewer maintenance department.
  2. They will check the line in the street near your house.
  3. If the line is not found to be blocked, you should call your plumber.
  4. We do not recommend trying to clean your own home after a sewer backup. Call a qualified remediation contractor. Search for “sewer or water cleanup contractor”.

Is the City Responsible for My Property Damage?

Probably not. The Maine Tort Claims Act holds your city responsible only if they were negligent in maintaining the lines. Most municipalities have strong maintenance programs for their systems. They’re not responsible for people dumping inappropriate items into the system, such as grease, non-flushable items, or debris. If you think that the damage was caused by your municipality’s negligence, contact their legal department.

Does My Homeowners Insurance Cover Sewer Backup?

“Off the shelf” Maine homeowners insurance policies do not cover property damage from backup of sewers or drains. Optional coverage is broadly available from your Maine insurance agent. For more information about sewer backup insurance, homeowners insurance or other storm insurance, contact Noyes Hall & Allen Insurance at 207-799-5541.

February 25 Maine Wind Storm Damage Update

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Our Maine insurance agency has been very busy taking claims and reporting them to insurance companies, and keeping our clients informed of the progress of their claims.

So far, the damage that’s been reported to us has been mostly concerned with homeowners insurance: trees falling on property and wind damage to buildings, followed by water backup into basements. Many Mainers lost power, which caused their sump pumps to fail, allowing water to back up into their homes.

pie chart of claims reported to Noyes Hall & Allen Insurance

What kind of damage did you have to your property?