Market Value and Building Cost – How Much Insurance do You Need?

Posted on by Bob O'Brien

Market value and building cost are important factors for property owners. But only one really matters when buying insurance. Knowing which one can help you avoid buying too much – or too little – insurance.

Market value and building cost are both important to property owners. But only one matters for insurance.

Market Value and Building Costs – Both are High

Market values of real estate are at an all-time high. That’s no secret to anyone buying or selling property. Whether you believe we’re in a bubble or not, 2022 is clearly a seller’s market. Due to low supply and high demand, buyers are offering above asking price and making other concessions to get properties.

Building costs are also high in 2022. Although lumber prices are lower after a huge COVID spike, they remain at a historically high level. So do contractors’ labor rates. Prices for petroleum-based building materials are also sky high.

Market Value – What is It?

Simply put, real estate market value is the going price. The one a willing buyer and seller agree upon. Many factors go into market price. Among them:

  • Location (location, location)
  • Inventory of similar properties for sale
  • Features of the buildings
  • Acreage
  • Landscaping and other improvements

Building Cost vs. Reconstruction Cost

Building cost is different from market value. It’s also different from reconstruction cost.

Building cost includes:

  • Building materials (“sticks and bricks”)
  • Design or architectural work
  • Contractor labor and use of equipment

Reconstruction cost per square foot is often higher than building new. Some reasons for that include:

  • Constraints of working around existing landscaping and structures
  • Matching existing materials, design, etc.
  • Reduced economies of scale. Contractors often build several new homes at a time. This distributes the cost of equipment, materials and labor. A reconstruction job at one home doesn’t permit this kind of scale.

Insurance Doesn’t Cover Market Value

Market value includes land, earth moving, landscaping and hardscape. Insurance doesn’t pay for any of those things. Market value also includes outbuildings, fences, pools and other structures. Insurance lists those separately from main buildings.

Insurance Covers Reconstruction Cost

Insurance covers the cost to rebuild. Even after a complete disaster, a contractor may be able to use the excavation or foundation that remains. That’s why in highly desirable areas, insurance values are often less than the price you would pay to buy the property.

Can A Lender Make You Insure the Purchase Price?

Lenders are always concerned about protecting their interest in your property. But your building insurance amount may not match your loan amount. That’s OK.

By law, lenders cannot require insurance in excess of rebuilding costs for 1-4 family dwellings in Maine. If your insurance agent can prove that your policy covers 100% of reconstruction costs, your lender cannot require more insurance.

Your Insurance Agent – Your Advocate

An insurance agent should work with you to estimate the proper rebuilding cost of your property. They should also provide proof of insurance to your lender. Finally, they should advocate on your behalf if the lender pushes for insurance above the fair rebuilding cost.

Do you need to insure property in Southern Maine? Whether it’s in Greater Portland, Cape Elizabeth, Scarborough or anywhere in Cumberland, Androscoggin, Sagadahoc or York County, contact Noyes Hall & Allen Insurance in South Portland or call 207-799-5541.

We offer a choice of many insurance companies so we can help you find the best value. We’re independent and committed to you.

South Portland Home Insurance About to Renew?

Posted on by Bob O'Brien

We know South Portland home insurance. We can help you get the best value.

South Portland Maine home insurance since 1933 - Noyes Hall & Allen

From Ferry Village to Highland Avenue and Brick Hill to Meeting House Hill, Noyes Hall & Allen Insurance has provided South Portland home insurance since 1933. That’s a long time of protecting our neighbors and businesses.

Is your home insurance about to renew? Wonder if the price and coverage are competitive? Why not get a 2nd opinion? It’s totally free and without obligation.

Independent

As a Trusted Choice Independent Agency, we offer a choice of Maine’s preferred home insurance companies. That allows us to find solutions that fit your budget and your needs.

Committed to You

We’re a locally owned business. Our team lives, works and plays here. We support South Portland organizations and non-profits. Put our local knowledge to work for you. You can get up to 5 home insurance quotes in 10 minutes here, or by clicking the button below.

Scarborough Home Insurance About to Renew?

Posted on by Bob O'Brien

We know Scarborough home insurance. We can help you get the best value.

Scarborough home insurance since 1933 - Noyes Hall & Allen Insurance

From Higgins Beach to Fogg Brook and Beech Ridge to Oak Hill, Noyes Hall & Allen Insurance has provided Scarborough home insurance since 1933. That’s a long time of protecting our neighbors and businesses.

Is your home insurance about to renew? Wonder if the price and coverage are competitive? Why not get a 2nd opinion? It’s totally free and without obligation.

Independent

As a Trusted Choice Independent Agency, we offer a choice of Maine’s preferred home insurance companies. That allows us to find solutions that fit your budget and your needs.

Committed to You

We’re a locally owned business. Our team lives, works and plays here. Put our local knowledge to work for you. You can get up to 5 home insurance quotes in 10 minutes here, or by clicking the button below.

Comparing Homeowners Insurance Quotes

Posted on by Bob O'Brien

Comparing homeowners insurance among several companies is smart. When you only check one company, you don’t know if you’re getting a good value. Some insurers target higher value homes. Others focus more on the middle-market. Still others specialize in manufactured homes or hard-to-insure homes.

Comparing homeowners insurance quotes is hard. An independent agent can make it easier.

What’s the best way to shop for homeowners insurance?

Step 1: Gather Information About Your Home

You’ll need:

  • Square footage
  • Approximate age of updates to roof, plumbing, heating and electrical systems
  • Details about any claims in the last 5 years
  • Current coverage limits and deductibles (if you currently own the place you’re insuring).

Step 2: Decide Where to Get Quotes

You have 3 main options for getting insurance quotes:

  • DIY – go online or call an 800 number. You’ll get 1 quote at a time from companies like Progressive, GEICO, State Farm or Liberty Mutual. Plan to call a few places and repeat answers to the same questions to get quotes to compare.
  • Company Agent – State Farm, Allstate, Liberty Mutual and others may have local offices near you. You’ll still only get 1 quote at a time. But unlike the DIY option, you’ll get advice and help from an agent.
  • Independent Agent – like Noyes Hall & Allen. Indie agents offer the convenience of several quotes at once. They also provide help and advice, like a company agent.

Step 3: Comparing Homeowners Insurance Quotes

Comparing homeowners insurance quotes can be challenging. Each company’s presentation looks different. Some may not offer the coverage you asked for. And they may not even tell you that it’s not the same.

Key Differences

The basic coverage limits and deductibles should be clear. You should be able to tell the difference by looking at the numbers. A policy that insures your home for $600,000 obviously has more coverage than one insuring it for $500,000. Of course that coverage costs something. Likewise, a higher deductible usually costs less than a lower one.

The other differences may not be easy to find. Here are a few things to look for:

  • “Open Perils” vs. “Named Perils” contents coverage. Open perils (sometimes called HO-5) coverage is better.
  • Water damage – Basic policies may not cover hidden leaks or water backup. These are some of the most common homeowners insurance claims.
  • Service Lines – Base homeowners insurance doesn’t cover damage to pipes outside of your foundation. You can buy service line coverage or a water district plan to protect yourself.
  • Extra Replacement Limits – Base policies limit coverage to the amount on the face of the policy. If building materials or labor costs spike after you buy your policy, that may not be enough. Look for “additional amounts of insurance” or a similar clause to protect yourself.
  • Wind deductibles – Some insurers apply special wind deductibles to homes near the coast. This practice is very inconsistent between companies. Pay attention! Wind deductibles can be several times higher than your regular one.

Comparing Homeowners Insurance Quotes Since 1933

Noyes Hall & Allen Insurance in South Portland Maine has helped generations of home and condo owners protect their assets. As an independent agency, we offer a choice of several insurance companies.

Own property in Southern Maine? Want to compare insurance quotes all at once? Call a Noyes Hall & Allen agent at 207-799-5541. Not ready to talk to an agent? You can get up to 5 insurance quotes online on our website.

We can help you find the best fit and value for your Maine home or condo insurance. We’re independent and committed to you.

Your Insurance Claim is Reported – What Happens Next?

Posted on by Bob O'Brien

We’re sorry to hear about your loss. You’ve reported an insurance claim. What’s next?

Important insurance claim information includes who's responsible for what.

After you report your claim to an insurance company, they assign it to an adjuster. The adjuster determines whether your policy covers this claim, and, if so, what it will pay.

The adjuster should contact you within 24 hours. It might be longer if you reported your claim on a holiday or a weekend. If you haven’t heard from the adjuster after a full day, or if your situation is urgent, contact the adjuster or your agent.

Your insurance policy is a contract.
It requires you AND your insurance company to do certain things.

Your Responsibilities in an Insurance Claim

  • Prevent further damage to any property until it can be inspected and repaired.
  • Respond promptly to any claim communication. That helps speed the process.
  • Keep copies of any documents important to settling your claim. That might include: police reports; receipts; estimates; or notes of conversations.
  • Cooperate with the insurance company to settle the claim. That may include providing a list of your lost or damaged items.

Your Insurance Company’s Claim Responsibilities

  • Investigate your claim thoroughly, promptly and fairly.
  • Pay or deny your claim within a reasonable time.
  • Provide a written explanation for any denial, referencing your insurance policy wording.
  • Fairly compensate you for a covered loss, according to the terms of your policy.

Your Agent’s Role in Your Insurance Claim

One reason you do business with Noyes Hall & Allen is assistance after a loss.

Most claims go faster if your agent doesn’t get in the middle. You and your adjuster work together to settle your claim quickly and fairly.

Sometimes you need more help. We’re here! Your agent can:

  • Explain any insurance terms, or how the process works.
  • Help get your claim back on track if communication falters during the process.

Contact Noyes Hall & Allen if you need assistance with your claim: 207-799-5541.

Andover Insurance Offers New Protection from Cyber Crime

Posted on by Bob O'Brien

Many of us are online more than ever. We can shop for everything from groceries to garden supplies. We can pay bills, communicate with doctors, connect with loved ones, and read news online.

This can all be really convenient. It can also expose your personal information to cyber criminals and other bad actors.

Up to now, insurance coverage against cyber crime frankly hasn’t been very good. It covered limited types of loss – mostly the kind that don’t occur often.

But Andover Companies recently introduced Cyber Protection coverage.

We like Andover’s Cyber Protection because it covers you against many common situations, including:

  • Cyber attack – someone attacks your computer, stealing information.
  • Data breach – your personal information is stolen or compromised from a vendor or service you use.
  • Online fraud – unauthorized use of accounts, identity theft, etc.
  • Cyber extortion – your computer is disabled by bad actors who promise to fix it – for a price.
  • Cyberbullying – harassment or attack via text, email or social media. 

Premium starts at $45 per year for $25,000 in protection. You can buy as much as $50,000 coverage for $55 per year. 

For years we’ve asked our insurance companies to introduce coverage like this. Andover Companies is one of the first one to make it broadly available to our clients. We recommend that our clients consider it.

Interested in learning more? Here is a link to our Blog Post about Cyber Insurance (5 minute read). 

If you’re a Noyes Hall & Allen client who would like to add cyber protection, or have any questions about your insurance, we’re happy to help with local, personalized service. Call us at 207-799-5541.

Jewelry Insurance – Is a Homeowners Policy Good Enough?

Posted on by Bob O'Brien

If you’re fortunate enough to have jewelry, you may wonder about jewelry insurance. Does a homeowners, condo or renters policy properly cover it? What kind of jewelry claims are covered by homeowners policies, and which aren’t?

Off the shelf homeowners policies do a good job of insuring everyday belongings. But to keep costs reasonable, they limit coverage on unusually valuable items. That includes jewelry, watches and similar items.

Therefore, many people choose to insure their jewelry specifically. The most common way is to list jewelry as Scheduled Personal Property on a homeowners policy.

Jewelry insurance is limited on homeowners policies. It's a good idea to have separate jewelry coverage.

5 Reasons to Separately Insure Your Jewelry

1. To Cover Jewelry Theft

Maine renters insurance policies only cover theft of jewelry up to $1,000 or $1,500. Maine condo insurance policies and homeowners policies have the same limitation.  If you separately list your jewelry (called “scheduling”), it’s covered for theft up to the listed value.

2. Jewelry Insurance is Cheap

Maine jewelry insurance is inexpensive. Insuring a $5,000 ring often costs less than $50 a year on your homeowners policy.

3. To Avoid Arguing with Your Insurance Company about Value

After your jewelry is gone or damaged, it’s hard to prove what it was worth. What size and quality were the stones? What type and grade of metal was it? Scheduling more expensive pieces of jewelry requires an appraisal. When your jewelry is appraised and scheduled, you and the insurance company agree up-front what you have and how much it’s worth.

4. Jewelry Insurance Can Avoid a Deductible

Your homeowners policy has a property deductible. Often that’s $1,000 or more. If you lose a stone or a piece of jewelry, you’re less likely to replace it if you have to pay that kind of money. When you schedule your jewelry, there’s no deductible. That makes it more likely that you can replace or repair it.

5. Broader Coverage for Damage

Homeowners policies cover your belongings for 16 “named perils”. Those include everyday causes like fire, theft, etc.  If you schedule your jewelry, it’s covered for “open perils”. In other words, if a cause of loss isn’t excluded in the policy, it’s covered. For example, losing a stone from a diamond ring is NOT covered on an unendorsed homeowners policy, but IS covered when the ring is scheduled.

Maine Jewelry Insurance Quotes

Do you live in Maine and own jewelry? Contact a Noyes Hall & Allen Insurance agent in South Portland at 207-799-5541. As an independent agent, we offer a choice of Maine’s top insurance companies. That means we can compare price and coverage to help you find the best value. We’d be happy to compare options for your jewelry insurance and give advice.

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

Professional Liability Insurance – Do I Need It?

Posted on by Bob O'Brien

Most Maine businesses have general liability insurance. However, if your business provides a service, you should have professional liability insurance (errors and omissions insurance) as well.

Professional liability insurance (errors and omissions insurance) protects the assets and reputation of service providers.

Professional Liability vs. General Liability Insurance

General liability insurance is essential to protect your business assets. It’s also required to get larger jobs. But every business needs GL, from manufacturers to restaurants, contractors to service providers.

General liability protects against damages and legal defense for:

  • Injury to people
  • Damage to property
  • Product liability
  • Personal Injury, such as invasion of privacy, slander or libel

Professional liability insurance is designed for Maine service providers. It’s sometimes called Errors & Omissions (E&O) insurance, or “malpractice insurance”. Although professional liability insurance is required less often than general liability, it can be even more important.

Anyone who sells their expertise needs professional liability insurance. Whether you’re a tattoo artist, cosmetician, financial service or health care provider, professional liability insurance is for you.

Professional liability insurance protects your assets and your reputation against claims of substandard work. In addition to paying for damages, it also provides defense costs. Some examples of professional liability accusations include:

  • Work errors or omissions
  • Failure to complete work
  • Deadline or budget errors
  • Improper design
  • Intellectual property infringement
Professional Liability (errors and omissions) is an important addition to general liability for Maine service providers

Who Needs Professional Liability – Maine Examples

Almost every service provider has a professional liability risk.

Examples include:

  • Medical professionals, including pharmacists
  • Attorneys and accountants
  • Real estate and insurance brokers
  • Drafters, architects and engineers
  • Consultants of any kind
  • Hair stylists, tattoo artists, personal trainers and other personal service providers
  • Advertising and design studios
  • Web site and marketing services
  • IT services
  • Practice managers
  • Board of directors, including not-for-profits

Find Professional Liability Insurance in Maine

If your Maine business provides services, contact a Noyes Hall & Allen Insurance agent in South Portland at 207-799-5541.

Because we’re local and independent, we offer a choice of insurance companies. In other words, we can help you find the best value for your insurance protection. Moreover, we can help protect your assets and reputation.

We’re independent and committed to you.

Individual Cyber Insurance – Protection Against Cybercrime

Posted on by Bob O'Brien

Individual Cyber Insurance protects against data breach, online fraud, cyber ransom and more. As our lives become more digital, we’re vulnerable. Identity theft, cyberbullying, phishing and ransom attacks are constant risks. Cyber insurance can help reduce your inconvenience and loss.

Individual cyber insurance protects against data breach, fraud, hacking, phishing, malware, ransomware and more.

What Does Individual Cyber Insurance Cover?

Cyber insurance for individuals is different than businesses cyber coverage. It pays to repair your online identity and reimburse for theft due to computer fraud. Coverage forms vary by insurance company. Some common examples of personal cyber liability coverage are:

Online Fraud and Identity Theft

Bad actors are everywhere on the internet. Spoofing. Phishing. Scamming. They’re looking for a quick buck or to capture your personal information or bank account info. A good cyber insurance policy reimburses you for fraudulent charges.

Ransomware or Cyber Extortion

Ransomware is malicious software that disables your computer or steals your data. The criminals then offer to fix the issue – for a price. Cyber insurance can pay for expert counsel to respond to the extortion.

Cyberbullying

Cyber crime isn’t always about money. Experts estimate that 1 in 6 teens have been bullied online or by text. Cyber Insurance can cover the cost of counseling, tutoring, and legal expenses.

Individual Cyber Insurance Against Data Breach

Every day, criminals hack companies and organizations and steal their clients’ personal information. Smart companies buy their own cyber insurance. That can help their customers. But personal cyber insurance can help, too. Cyber insurance can connect you with credit monitoring and identity restoration services. It can also pay for that professional help.

Identity Fraud Expense vs. Individual Cyber Insurance

Identity Fraud Expense coverage sounds good. But it’s much weaker than true Cyber Insurance for Individuals. Identity Fraud Expense reimburses you for costs to report and challenge identity theft. Examples include notarizing costs, loan re-application fees and some lost income for time spent meeting with credit agencies and lawyers. This is a fraction of the true damage of cyber crime.

Cyber Insurance also pays the costs of those extra services to help you fix things. But even more, it also repays money you lost to fraud or illegal activity. That’s much more valuable and meaningful insurance coverage.

Cyber Security Vendors (e.g. Lifelock) vs. Individual Cyber Insurance

Cyber security vendors provide a valuable service. They can help monitor your data and credit. They can also help with password protection and other loss prevention activities. In fact, insurance companies often partner with vendors to offer these services when you buy individual cyber insurance. But in addition, cyber insurance reimburses you after a covered cyber event. Some third party vendors don’t do that.

Where to Get Individual Cyber Insurance

Personal cyber insurance is usually bundled with homeowners or condo insurance instead of on its own. Few companies offer it in Maine as of Spring 2022. High-value home insurers like AIG and Chubb do.

Hanover Insurance offers cyber insurance to middle-to-upper income households as part of their bundle. Andover Companies do, too. We expect other Maine insurers will follow suit.

Get a Quote for Personal Cyber Insurance

Do you live in Maine? Interested in a quote for individual cyber insurance? Although options are limited now, the market is changing quickly.

Contact a Noyes Hall & Allen Insurance agent in South Portland at 207-799-5541. As an independent agency, we’re not limited to one insurance company. That means we can compare and offer options that are available. We’re independent and committed to you.

Liquor Liability Insurance in Maine

Posted on by Bob O'Brien

Liquor liability is a risk for Maine businesses and not-for-profits that provide alcohol. Whether your sell or serve, you can be liable under the Maine Liquor Liability Act. You can be responsible for property damage, injury or death caused by the alcohol you provide. Liquor liability insurance can help.

Liquor liability is a risk for those who sell and serve alcohol in Maine. Liquor liability insurance can help.

Do I Need Liquor Liability Insurance?

If you don’t SELL alcohol…

Regular business liability coverage may be all you need. Most business general liability policies include “host liquor liability” coverage. That covers you for providing alcohol at a social event where guests aren’t paying for it. For example an open house or special event where drinks are available. Granted, you can still be liable for the effects of alcohol you provide. But you may not need special insurance.

If your business or organization sells or serves alcohol…

You DO need separate liquor liability insurance. Typical examples include

  • Bars, pubs and taverns
  • Breweries and distilleries with tasting rooms
  • Restaurants and cafes
  • Retail stores
  • Performance venues
  • Private clubs
  • Dance clubs

For instance, someone could claim the alcohol you sold caused injury or damage. While your general liability insurance will not respond, but liquor liability insurance would.

Possible Liquor Claim Examples

  • Auto accidents – a patron you serve gets behind the wheel and crashes, injuring someone. Or worse. The police test their BAC and find them over the legal limit.
  • Serving underage patrons, even by mistake.
  • Altercations or violence – an intoxicated patron (or two) gets into a fight. They injure others as a result. (Note, some liquor liability policies exclude assault and battery).
  • Serving someone excessively – you can be responsible for their injuries or death.
  • Serving an obviously intoxicated person – you can be responsible for resulting harm.

Are Damages for Maine Liquor Liability Capped?

The Maine Liquor Liability Act limits damages to $350,000 per incident. But that doesn’t include medical care or wrongful death. Medical care liability is unlimited. Even more, Maine’s Wrongful Death Statute allows up to an additional $750,000

(in 2023, PL Chapter 390 increased the Maine Wrongful Death damage limit to $1 million, with an automatic adjustment for inflation).

In other words, serving liquor can get you in plenty of trouble. Protect your assets with Liquor Liability Insurance.

How Much Does Maine Liquor Liability Insurance Cost?

Costs vary greatly according to exposure. For example, the smallest liquor liability exposures can cost as little as $250 a year. On the other hand, businesses selling a lot of alcohol can spend several thousand dollars a year.

Cost factors include:

  • Alcohol sales revenue
  • Ratio of alcohol sales to other retail sales (stores)
  • On-premises consumption vs. take-away
  • Ratio of alcohol receipts to food (restaurants).

How to Reduce Insurance Costs

Meanwhile, controlling those factors are a good way to reduce insurance costs.
For example:

  • Server education training for employees (TIPS, etc.)
  • Written policies and procedures for servers, with compliance monitored by management.
  • Strong ID checking procedures
  • Providing non-alcoholic beverages
  • “Ride home” alternatives for patrons who appear intoxicated
  • Keeping a log book of any incidents – or potential incidents

Part of Your Total Insurance Plan

Does your Maine business or organization sell or serve liquor? Talk to a Noyes Hall & Allen Insurance agent in South Portland at 207-799-5541. We can advise whether you need liquor liability insurance. If you do, we can help you incorporate it into your overall insurance program.

Because we’re locally owned and independent, we offer a choice of insurance companies. In other words, we can help you find the best value for your insurance protection. We’re independent and committed to you.