Purchase & Maintain Your Fire Extinguishers

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I was speaking with a customer earlier today about a remodel project that they have planned.  When I asked about fire extinguishers for the project, I was pleased with their rapid response that they would go out and purchase some immediately!
  According to a National Fire Protection Association study, there are approximately 400,000 house fires each year in the United States, which account for 75 percent of all structure fires. This study also indicated that residential fires result in over 3,700 deaths per year. Indeed, fires typically kill more Americans than all other natural disasters combined.
Having properly placed fire extinguishers in your home is an excellent loss control measure that targets the most common cause of property loss.  
Before purchasing fire extinguishers, learn about the different types of fire extinguishers. There are four basic types, as follows.

• Class A extinguishers put out fires in ordinary combustibles, such as wood and paper. 
• Class B extinguishers should be used on fires involving flammable liquids, such as grease, gasoline, and oil. 
• Class C extinguishers are suitable for electrically energized fires. 
• Class D extinguishers should be used on flammable metals and are typically specific for the type of metal in question. 

We all now that having fire extinguishers makes sense unfortunately, most of us buy them, hang them, and then neglect them.  It's like a Ron Popeil rotisserie commercial, "Set it and forget it!"  Unfortunately, our inaction may lead to an extinguisher's inaction as well when called upon.  So, what can we do to make sure our extinguishers are in good working order?The following are some tips concerning this important fire protection device.

• Most home fire safety experts recommend medium size, multipurpose fire extinguishers that are labeled as suitable for use on class A, class B, and class C fires. 
• A fire extinguisher should be kept in your garage, kitchen, and on each floor of your home. 
• You and other potential users in your household should thoroughly read the extinguisher's instructions on a periodic basis. 
• A professional fire equipment supplier should inspect each extinguisher annually. 

Note that prices on fire extinguishers start at around $20. Many insurers offer modest premium credits to encourage homeowners to purchase and maintain extinguishers.

Protect Your Landscape Investment

One of the more common complaints heard from insureds after a major property loss is a lack of homeowners coverage for valuable trees and landscaping. Most homeowners policies provide only limited coverage (with restricted perils) for this loss exposure—usually 5 percent of the dwelling limit subject to a maximum of $500 per tree or shrub. Peril restrictions may also preclude coverage; for example, there is no landscaping coverage for a loss to landscape arising out of windstorm. Unfortunately, many trees, in particular, can be valued in the thousands or even tens of thousands of dollars. To protect this investment, consider the following risk management tips.

• If you have valuable mature trees, consider asking a licensed or certified arborist to appraise their value. Trained arborists use guidelines to value these trees, and such guidelines are recognized by insurance companies, the courts, and, in most cases, the Internal Revenue Service. 
• Once you have the valuation, consider asking for an endorsement to provide higher limits and enhanced coverage for your valuable trees and other landscaping. 
• Practice sound loss control for your trees. For example, topping of trees should be avoided. (Topping is the indiscriminate cutting of trees to stubs or lateral branches that are not large enough to sustain the remaining branch.) 
• Hire a tree specialist to properly prune and thin out your mature trees. This action makes your trees less susceptible to disease and insects. For extremely valuable trees, consider hiring an arborist for this work. When selecting an arborist, check for his or her membership in professional organizations such as the International Society of Arboriculture (ISA), or the Tree Care Industry Association (TCIA). 
• Recognize tree hazards to avoid injuries and damage to property. For examples, dead or dying trees are more likely to fall into utility lines, which could cause power outages, surges, and fires. Dead or dying trees are also likely to damage homes and could even injure people should they fall. Hiring a reputable tree specialist to remove dead or dying trees is a smart move. Get copies of the contractor's certificates of insurance for workers compensation and general liability before work begins. 

Lower Your Auto Insurance Costs

Image by shainelee via FlickrI remember listening to a talk radio program on the AM dial about a year ago where the host stated that he chose not to participate in the economic recession.  Now he spends a good portion of his program showing empathy to his listeners who have been affected by the economic downturn.  No matter where we live, our neighbors are tightening their belts, spending less, and pinching their pennies.  As a father of five young children, I find myself doing the same.  Here are some ideas that may help you save money on car insurance without having to shop around.

Automobile insurance premiums often take a big bite out of a family’s budget. You may, however, be paying too much for this coverage. The following are several approaches you can use to reduce your auto insurance costs.

• Choose higher deductibles, particularly if you currently have a low collision or other-than-collision deductible, such as $100 or $250. Increasing your deductible from $250 to $500 or $1,000, for example, can reduce your collision and other-than-collision premium by 15 to 35 percent.
• Eliminate collision and other-than-collision coverage on older, less valuable cars. If your car is worth less than $1,500, it may be wiser and cheaper in the long run to just retain this physical damage exposure. Used car valuations are available online at Kelley Blue Book.
• Maintain an excellent credit record, since insurance companies are increasingly using credit scores to price auto insurance policies. Consumers with poor credit often pay more for auto insurance. 
• Buy a “low-profile” automobile. Before you purchase a new or used car, check into the auto insurance costs. Automobile models that are expensive to maintain and have higher theft and collision frequency rates tend to have higher insurance costs. 
• Take advantage of multipolicy discounts by keeping your homeowners and auto policy with one insurer. Likewise, take advantage of multicar discounts by having all autos on one insurance policy.
• Seek out other auto insurance discounts (which can vary by state and by insurance company), such as defensive driving, good student, low-mileage auto, alcohol awareness training, air bags, antilock brakes, claim-free experience, and long-term customer. 

Is Your Flood Insurance Ending?

I returned to work today from a long family vacation.  During the course of our journeys we had the opportunity to drive on Highway 2 near Nebraska City, where one lane of the road was underwater due to flooding of the Missouri river.  We later had to detour because on highway 136 near Alexandria, Missouri, because the the road leading Keokuk, and  a bridge over the Mississippi river, was under water.  While these areas are prone to flooding and it makes obvious sense to buy flood insurance, other places aren't so obvious, yet FEMA, with flood mapping help from the US Army Corps of Engineers and others, places many housing tracts in 100 year flood plains, thus requiring homeowners with mortgages to purchase flood insurance.  Wise property owners with buildings in flood plains will purchase this same insurance whether or not they have a mortgage.
I witnessed the destruction of flooding earlier this year when a flood hit my hometown of Genesee, ID in January 2010 due to frozen ground, melting snow, and heavy rains.  If you think a flood can't happen to you, think again.

One of the brokers that I utilize recently sent me an e-mail stating that State Farm Mutual has announced that effective October 1, 2010 they are getting out of the National Flood Insurance Program business.  This means that hundreds of thousands of insureds will need to find a new company for their flood insurance.  Do you have flood insurance with State Farm Mutual?  If so, please allow me to serve you and place your flood insurance with one of our flood insurance companies.

How do you do this?  Give me a call at my Clarkston, WA office; (509) 758-5529 or e-mail me.  I will ask you for a copy of your declarations page, the year the home or building was constructed, and its replacement cost value.

It really is that simple.  I look forward to serving you!

REDUCE YOUR EXPOSURE TO HOME BURGLARIES

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U.S. residences were burglarized more than 1.5 million times in 2008, according to the latest FBI studies. Nearly 65 percent of the thefts occur during the day because people are often not at home during the weekday. Proper home theft prevention ideas and techniques, however, can reduce the odds of a home burglary. Consider the following loss control techniques to reduce your chances of suffering a home burglary.

• Invest in a burglar alarm with a central monitoring station. Research indicates that homes without security systems are about three times more likely to be broken into than homes with security systems. If a burglar is aware that a home has an alarm, he or she is more likely to avoid that home.
• Property identification programs are another deterrent to burglary. Many of these programs involve the use of stickers on which your driver's license number is imprinted. These are then placed (and become permanently imprinted) on all valuable personal property, such as stereos, televisions, and computers. This makes it more difficult for burglars to fence or pawn the property.
• Safeguarding dwelling components such as doors and windows make it tougher for burglars to enter the home. Many home security experts recommend all exterior doors be 1 3/4-inch thick solid wood, metal, or composite material. Strike plates on door jams are typically installed with 1/2-inch screws; however, these should be replaced with 3-inch long screws so that locked doors cannot be kicked in easily. Doors should also have deadbolt locks, with at least a 1-inch throw and a reinforced strike plate with 3-inch screws.
• Exterior lights with a motion-sensing switch should be installed; timers on lights are also recommended.
• Keep your garage door secure and locked even while you are home. 

Get more personal lines insurance and risk management tips and ideas from IRMI.

Copyright 2010
International Risk Management Institute, Inc.

ARE YOU SMARTER THAN AN IDAHOAN?

Idahoans and Wisconsonites may take some occasional ribbing from folks in other states, but they top the list when it comes to smart drivers.  And while people may talk with disdain about Utah drivers, the lowest test scores came from the Northeast.  Read more about the smartest drivers here: http://bit.ly/9poyto

So does this list coincide with where the safest drivers are?  Yes and no.  Many of the smarter states lead the safer states list, but not all.  The safest drivers come from the Midwest, this according to Allstate.  http://bit.ly/1D44QR   ...and yes, that is Boise Idaho, coming in at number 9.

NEED FLOOD INSURANCE TODAY? SENATE SAYS, NO WAY!

For the fourth time, the US Senate has let the funding for flood insurance lapse.  What does this mean for the economy?    Basically it puts a halt to any loans that are in process, where the loan collateral is in a flood zone requiring flood insurance.  You can read more about the lack of funding here: http://bit.ly/dAQhu5

Why is it so hard to fund the National Flood Insurance Program?  The answer is political and probably better left off this blog!

So what can you do if you need flood insurance now?  Unfortunately, not much!  You can wait until the Senate reconvenes and decides to fund flood insurance or you can try to convince your mortgage broker to accept one of the alternative flood insurance offerings available through Lloyds of London or other brokerage houses only available to those who live in some states.

Frustrated?  Call your Senators through the US Capitol Switchboard: (202) 224-3121 and let them know.