Lights Out: Frozen Pipes & Spoiled Food

(Republished from TrustedChoice.com)

You’re hosting the party for the big game. The invitations are out, responses are in and it’s going to be a big one. Your shopping is done and the refrigerator and freezer are stocked with the finest party fare money can buy.

Then the ice storm comes. And with it freezing temperatures. In fact, this particular cold snap is so extreme that it knocks out power to every home in a six-mile radius. The outage takes hours to restore, and when the lights come back on, you open the refrigerator to find the remains of what used to be fresh food for the party. Here’s the question: Will your home insurance policy cover the cost to replace the spoiled items?

Spoiled Rotten

Finding coverage under a home insurance policy for spoiled items depends on why the power supply was interrupted. For example, if the outage can be sourced to your premises and caused by a covered loss, such as a tree branch falling onto your power meter in your yard, many home insurance policies will cover the cost of the spoiled items.

However, if the outage is generated off of your premises, such as at a utility company’s transfer station or downed power line, your home insurance policy may not cover resulting damage. Some communities may have programs available for reimbursement of damage caused by the outage. However, such dollars are usually paid by the utility company, not your home insurer.

Some home insurance carriers will cover spoiled items if the outage is caused by a surge in power. This may happen when the utility company flips the switch to restore power to your area. Even in cases where spoilage is covered, don’t get too excited. Keep in mind that your insurance company will not pay anything until you have kicked in for you deductible. This is typically $500 or $1,000 that you must pay out-of-pocket, meaning the spoilage loss would have to be significant to justify a claim.

Note you can also ask your home insurer about specific spoilage coverage, sold via an endorsement to your policy. This coverage typically has a limit of $500 to $1,000—but your deductible is zero or $100 max, which is usually less than your regular homeowner deductible. Bonus: Many of these endorsements cover not only spoilage due to power failure, but also if the refrigerator or freezer simply breaks down.

Frozen Pipes

But wait: A power outage that occurs during freezing conditions can cause more headaches than some spoiled party food. Lack of heat not only means discomfort for you, your family and guests—it also can leave pipes in your home vulnerable to freezing. A frozen pipe can easily burst, exposing your home and its contents to resulting water damage. When a pipe bursts, damage can happen very quickly and will continue to worsen until the problem is isolated.

Most home insurance companies will cover damage resulting from a frozen pipe provided you can prove that you took measures to prevent the pipe from freezing. For example, many policies say that coverage applies if you can show that you either 1) shut off the water supply and drained your system, or 2) maintained heat to your home.

If a power outage prevents you from maintaining the heat, many home insurance policies will cover the resulting loss from the frozen pipe.

Summary

Cold weather conditions pose a number of threats to homeowners. If the threat manifests into damage to your home or its contents, is it covered by your home insurance policy? Sometimes the answer is “yes” and sometimes it’s “no.” Either way, waiting until the damage happens is the wrong time to learn about coverage. A phone call to your Trusted Choice® independent insurance agent can help. Your agent will help you understand the types of losses you are most vulnerable to, types of losses that are and are not covered, and options that exist which may prevent a high out-of-pocket expense to you. It’s a brand new year—why not call today?

Insuring Your Happily Ever After

(Republished from TrustedChoice.com)

Getting married and embarking on a new life together is one of the most exciting experiences in two people's lives. It's a time of hope, promise, romance and ... reality. Finding the person who will be by your side forever may have seemed like the hard part, but getting married also requires a lot of time, money, and careful consideration. Whether a couple is planning their wedding or deciding where to live, there are a lot of decisions to make before saying "I do," especially when it comes to insurance.

Whether a walk down the aisle is in your future or you're a newlywed, there are numerous insurance issues that come with being Mr. and Mrs. To keep them all straight, your Trusted Choice® independent insurance agent has these helpful tips on how getting married impacts your insurance. No wedding planner or over-priced flowers required.

Spoiled Rotten

Finding coverage under a home insurance policy for spoiled items depends on why the power supply was interrupted. For example, if the outage can be sourced to your premises and caused by a covered loss, such as a tree branch falling onto your power meter in your yard, many home insurance policies will cover the cost of the spoiled items.

Auto insurance

• Most auto insurers view marriage as an indication of greater responsibility ­ especially for men younger than 25 ­ so most  insurance companies offer lower premiums for married people.

• Getting hitched also means you can add your spouse and their car to your auto insurance policy (or vice versa), which will likely lower your rate with a multi-vehicle discount.

Health Insurance

• Once you are married, most group health insurance plans allow you to put your spouse on your plan ­ even if it's outside the annual enrollment period. If you both are enrolled in group plans, analyze each of them based on your current and future health care needs. One spouse's plan my have a lower premium, but require a higher deductible. Also check each plan's policy limits and rules about pre-existing conditions.

• If your new union includes new dependants, and you need to include them on your policy, you should contact your employer to add them to your policy. This can also be done outside the annual open enrollment period. If you have individual health insurance, you may need to prove the child or children's insurability prior to adding them to the policy.

Life Insurance

• If you already have a life insurance policy, you may want to update it so that your new spouse is the beneficiary. If you don't have life insurance, tying the knot is a good time to get a policy. Life insurance provides you and your spouse with the peace of mind that you're financially protected from the unexpected.

Homeowner's/Renter's Insurance

• Couples can save money on their homeowner's or renter's insurance once they are married for the simple reason that they're under one roof instead of two. Couples who already live together, but have separate policies can get a joint policy after they tie the knot.

• Whether you're moving in together or already cohabitating, chances are you're going to receive wedding gifts. Be sure to update your home inventory and insurance policy to include these new items. If you don't have an inventory, you should create one that includes everything of value that you and your spouse own.

• It doesn't matter if you're the one who bought the engagement ring or you're the one wearing it, you'll want that sparkler to be insured. Most homeowner's and renter's policies can be adjusted to include a personal property rider to cover the cost of replacing the ring.

Wedding Insurance

• Getting married usually means orchestrating a wedding or some sort of gathering for family and friends, and planning such a party is a big comes with a hefty price tag. While couples make hundreds of decisions when planning their wedding ­ from finding a reception hall to choosing china ­ many don't spend the time and money to get insurance for their big day. Wedding insurance policies are usually relatively inexpensive (about $125 to $275) and protect your big day from being spoiled by bad weather, illness/injury, or a missing officiant or vendor. Wedding insurance will also usually cover damage to or problems with your ceremony and/or reception sites that cause your wedding to be rescheduled.

Before you take your vows, make sure you have the right insurance to help you through good times and bad, in sickness and in health. Contact your Trusted Choice independent insurance agent with questions about your policy or if you need a new policy. Your agent is always happy to help newlyweds navigate their insurance ­ and you don't even have to invite him or her to the wedding!