Tag Archives: home insurance

Personal Insurance

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There are many different forms of personal insurance. The reason for the wide variety of offerings is that each type of personal insurance insures a different thing. Homeowners insurance insures a persons home and valuable possessions that are kept within that home. Life insurance covers the person for the possibility of his death. Health insurance insures that if the person happens to get into an accident or develop an illness, he will be able to afford the treatment that is necessary to treat the condition. Auto insurance insures that the person will be able to pay for any damages he may cause in the event of an automobile. These are the most common types of personal insurance. The reason that these personal insurance policies exist is that the expenses that can arise from these various situations can be unexpected and incredibly expensive.

Homeowners Insurance

Homeowners insurance is a personal insurance policy that covers the expense to repair or replace a home and the property that is kept inside. These policies protect the holders from damage that may be caused by vandalism, natural disasters, and the like. One thing that people should keep in mind when they are considering purchasing homeowners insurance is that many of these homeowners insurance policies do not cover damage that is caused by flooding. People who live in areas that are prone to flooding will usually have to purchase an additional policy to cover themselves for those possibilities. One interesting thing that is covered by most homeowners insurance policies is liability. This means that if a guest is injured while inside of one’s home due to negligence or something that can be blamed on the house, such as slipping on a wet floor, that person has the legal right to sue the owner of the house for the damages that occurred to his person. However, these damages that would be awarded to the injured guest would be covered by the homeowner’s homeowners insurance policy. This can save a great deal of stress and hardship and is very valuable for people who entertain company often.

Auto Insurance

Auto insurance protects a person in the evident that he has an accident i his car. these accidents can cause a great deal of harm. That is why it is so important to have automobile insurance.

Life Insurance

Life insurance covers a person in the event that he dies. These policies pay out money to people who were dependent on the person. When the provider for a family dies, it can be a huge blow to a family. Life insurance softens this blow.

Health Insurance

Health insurance pays for medical bills that a person incurs. Medical bills can be very expensive. Health insurance makes these costs manageable.
 
By purchasing the right personal insurance policies, a person can greatly reduce the impact that disasters will have on his life.

Maryland Earthquake Offers Reminder of Widespread Risk

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Most Homeowners and Businessowners in Maryland and its surrounding states are NOT prepared for Earthquakes!

The 3.6 magnitude earthquake felt in the Washington, D.C., metropolitan area on July 16th had its epicenter in Gaithersburg, Maryland.  While no damage was reported, it is a reminder that in the United States about 5,000 quakes strike each year.  “Since 1900, earthquakes have occurred in 39 U.S. states and caused damage in all 50″, according to the Insurance Information Institute (I.I.I.).

Earthquakes are not covered under standard homeowners or business insurance policies.

Coverage is usually available for earthquake damage in the form of an endorsement to a business or homeowners insurance policy or as a stand-alone policy, depending on the state in which you live.  Standard homeowners and business insurance policies may, however, cover losses from a fire following an earthquake, which would include additional living expenses and business interruption coverage.

Stock knocked off the shelves at a grocery store after an earthquake.  Does your business insurance provide coverage for this?

Call Rossmann-Hurt-Hoffman, Inc. today at 1-866-847-0449 and make sure that your home or business is covered for earthquakes.  A seldom thought of, but very real risk!

Dundalk water-main break triggers coverage questions | RHH Insurance

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The extensive damage caused by the water-main break in Dundalk last week has lead to many coverage questions and potentially erroneous interpretations.
Normally this type of loss should be considered a flood, and in order for there to be coverage there must be a Flood Policy in effect.  This was confirmed by the Maryland Insurance Administration.  Some insurance companies, however, have indicated they might cover the claims under homeowners’ or other property policies.  This will depend on the wording of the individuals’ policy, specifically the water-damage exclusion, coverage for burst pipes and/or backup of sewer and drains coverage.
Here are the MIA’s official guidelines concerning this incident:
•    People who have flood insurance can file under their flood policy
•    People who don’t have flood insurance should file a claim with their property  insurer and get any denial in writing; and
•    The MIA will handle any complaints they get and look at the specifics at that time.

Floods can happen anywhere and everyone is at risk, as demonstrated by the Dundalk water-main break.  This is a perfect example of why even if you don’t live near the water you still need a Flood Insurance Policy!

MD Insurance coverage for children in college

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A question parents and their college-aged children don’t ask, but we need to ask, is, “Will these college students be covered under their parents’ Homeowners and Personal Auto policies while they’re living away from home and attending school?” The answer may be, “Yes.” However, the answer may be, “No.” And, sometimes the answer could be, “Maybe.”

The Millers’ 21-year old son, Buster, and their 18-year old daughter, Princess, have loaded their cars and are headed to college. Buster is entering his junior year, and Princess will be a freshman. Buster is sharing an apartment with three of his fraternity brothers, and Princess will live in the dormitory. Will their “stuff” – clothes, computers, TVs, music systems, books, etc. – be covered under their parents’ Homeowners policy? Will they have liability coverage if they cause injury or damage to another person? The Homeowners definition of “insured” includes “a student enrolled in school full-time, as defined by the school, who was a resident of your household before moving out to attend school, provided the student is under the age of 24 and your relative.”  Therefore, as long as Buster and Princess satisfy three requirements – full-time student, resided at home before attending school, and under the age of 24 – they’re considered an insured under their parents’ Homeowners policy.

If  Buster and Princess are considered insureds, their “stuff” will be covered for the same perils as the personal property located in their parents’ home. However, it could be limited. The Homeowners policy’s limit of liability for “personal property usually located at an ‘insureds’ residence, other than the ‘residence premises’, is 10 percent of the limit of liability for personal property, or $1,000, whichever is greater.”  Therefore, if the Millers’ home is insured for $200,000 and they have a personal property limit of $100,000, the “stuff” belonging to Buster and Princess is limited to $10,000.  This may be enough for Buster, but probably not for Princess. (I’ve raised a son and a daughter!). Again, there is an endorsement to address this problem.

One last comment on Homeowners coverage for college students. If they’re living in an apartment rather than a dormitory or a fraternity or sorority house, and qualify, purchase a Tenant Homeowners policy (HO-4). It’s worth the few extra dollars. I’ve been there too!

Buster and Princess probably have their own cars. After all it would be un-American to send a child off to college today without their own automobile. Are there any concerns here? Could be.

Who owns the cars? If titled in the kids’ names, then they need their own Personal Auto policies. What limits will they buy? Probably minimum. Since they’re “family members”, will they have any coverage under their parent’s Personal Auto policy? No. The Personal Auto policy excludes liability for “the ownership, maintenance or use of any vehicle, other than ‘your covered auto’, which is owned by any ‘family member’.”  What if the cars driven by Buster and Princess are owned by the parents? No problem as long as they keep those cars listed on the Millers’ Personal Auto policy.  Too often parents of college kids think if they transfer the auto insurance to the kids, they’re getting rid of the exposure. Not true. In order to transfer the auto risk, you have to transfer the title.

Let’s wrap this up…
• Make sure your insureds’ children who are away at college are still considered “insureds” in the Homeowners policies you write.
• Increase the 10 percent of Coverage C limitation on the student’s personal property, if necessary.
• Write a Tenant Homeowners policy for the student, if possible.
• If the parents still own the car being driven by the student, that car should be insured under the parents’ Personal Auto policy.
• If the parents want to take the student off of their Personal Auto policy to save money and have the student purchase the insurance, they should transfer the car to the student.
Will those college students be covered under their parents’ policies? That’s up to you!

Jerry Milton, CIC, contributed this resource. The legal profession recognizes him as an expert on insurance coverages. He is also an education consultant for IA&B, working with CISR, CIC and continuing education programs.