Lightning Strikes and Power Surges

Most insurance carriers will reimburse you if your electronic equipment is damaged from a lightning strike. The carrier will probably ask for confirmation of lightning from another source such as your computer or tv repairman or electrician.

There can also be damage from a power surge - a surge of power sent through when your electricity has been out or interrupted and then restored. The overload of momentary power can also blow out your electronics such as your computer or tv just as a lightning strike can. Damage from a power surge is not necessarily covered by your homeowners or renter's insurance. Talk to your agent to determine if you do have coverage for this.

You can prevent a power surge from damaging your personal property by unplugging the items if you lose power. This way, when the power returns, the surge won't go through your equipment. You can safely plug the items back in after the electricity is back on.

And remember, if you lose your power, it's safer to use flashlights than candles!!!

As always, contact us if you have any further questions.

Power Surges and Lightning Strikes

There have been numerous storms throughout the Chicagoland area recently. I was wondering if my insurance protect against power surges and lightening strikes? If there is coverage, how does my insurance respond?

How to choose Umbrella limits

So we may have advanced past Insurance 101 here with this topic.  Actually, understanding what an "umbrella" is in the first place already puts you in the 200-level.  Now that we know what it is (repeat: liability above and beyond the primary limits on the auto or home policy) we have to decide on a proper amount.

Not to complicate things, but at this point I have to say there is no one right amount. That's sort of cheating, but it's true in that nobody can pick the right amount for you for legal reasons, and everybody is different.  Everybody has a different risk profile so there isn't any "one size fits all" limit.

We'll discuss the general rules of thumb after the jump.

Driving in Canada?

Oh, Canada. While many times you seem like U.S.A. North in so many ways including entertainment and sports, and your generally open policy towards border crossings for U.S. and Canadian citizens, there are some differences that are just unexpected.  Like auto insurance.

Did you know that in order to drive in Canada you have to have a special ID card issued?  Not only that, but it has to be an "original" card, meaning faxed copies are not allowed.  I just got off the phone with Travelers Insurance and they said it was lucky that I called ahead because it takes about a week to have the card processed and mailed out to me.  The card is also only good for 30 days, so if you're planning to be in Canada for longer, you'll have to work that out with the insurnace company and possibly buy something more permanent at your destination.

Why do U.S. drivers need to have this special ID card?  Here's a snippet from the U.S. State Department's travel.gov website:

Driving in Canada is similar to driving in many parts of the United States. Distances and speeds, however, are posted in kilometers per hour and some signs, particularly in Quebec, may only be in French. U.S. driver’s licenses are valid in Canada. Proof of auto insurance is required. U.S. auto insurance is accepted as long as an individual is a tourist in Canada. U.S. insurance firms will issue a Canadian insurance card, which should be obtained and carried prior to driving into Canada. For specific information concerning Canadian driving permits, mandatory insurance and entry regulations, please contact the Canadian National Tourist Organization.


Here's my experience on this whole thing...the cards are "required", but Canada also recognizes your U.S. auto insurance case of an accident.

I think the reason the cards are required is because they have to be issued by the insurance company and can't just be printed off by an insurance agent, or by a policy holder, online. This tells the Canadian authorities that the insurance is valid.  And since Canada has it's own laws regarding coverage this is important.

If you're renting a car in Canada when you get there and you purchase the rental car company's insurance, they will give you the required documentation (or it's probably already in the car).  However, if you're relying on your own insurance to cover you while renting (which is what I do), then you'll need to contact your insurance company to have them issue a card. It will be for your owned vehicle, but it will suffice.

If you have any other questions please give me a call and I'll be happy to help.

Insuring Boats

Insuring a boat isn't difficult, but it usually takes an additional step beyond what you normally do for renters or auto insurance.  The reason?  Fewer companies are interested in recreational vehicles as a risk. 

Most insurance companies like to insure what I'll call "common stuff".  Common stuff is basically what the average person has, a suburban house, or apartment, a sedan, a minivan and then an engagement ring and pair of earrings.  Why do insurance companies like this?  They can accurately predict what their potential losses will be.  They have decades of data about car accidents, house fires and theft. When you get outside of this "common stuff" zone, insurance companies have to take a closer look. When asked to insure something outside of the ordinary, they are not as sure about the outcome.  That's why insuring a boat is different than insuring a Ford.

Dog Bite Liability

Man's Best Friend, can be a homeowner or renter's worst enemy if they aren't properly insured. According to an article at the Insurance Information Institute, dog bites are responsible for 800,000 injuries that require medical attention and they account for one-third of all homeowners liability claims.

A lot of 20-somethings I talk to usually don't think about renters insurance because they say they don't own anything worth insuring, and they don't have any financial assets to protect because they just started working full time.  That thinking is wrong on so many levels.  Sure, you may not have enough furniture and property to worry about insurance, but you have the same liabilities as anyone else.  And if you don't have the money now to pay off a lawsuit, the courts have a way of collecting on judgements well into the future, like paying off student loans a bit at a time.

So, if you own a dog, read this.

http://www.iii.org/individuals/homei/tips/dogbiteliability/

This is a problem that is easy to protect against, so contact me if you have more questions.

What's your water damage IQ?

We've spoken before about the difference between flood and sewer and water backup, but now I found a video from the Insurance Information Institute that does a good job of laying out some more examples that we deal with every day.

Don't worry so much about the dollar amounts offered in the video because those are dependent on so many different factors.  Also, let me know if videos and audio clips make the website more useful and informative than just straight articles and blog posts.

Umbrella Insurance

I wanted to introduce the concept of an umbrella when it comes to insurance.  You may have heard of the term before, but not known what it meant or if it referred to the Travelers umbrella.

An umbrella is additional liability coverage that sits "over top" of your primary liability on your home or renters' and auto insurance. It usually comes in one-million dollar increments up to $5m. The point of an umbrella is to have more protection for current and future assets should there be a lawsuit against you.

Your primary auto and homeowners'/renters' policies have "Personal Liability" or primary liability limits anywhere from $100,000 to $1,000,000.  (We recommend nothing lower than $500k)  The umbrella would sit directly on top of that, effectively extending the amount of insurance available in case of a lawsuit.

The need for an umbrella typically rises as you have more assets to protect and greater ways to put them at risk (i.e. teenage drivers, boats, etc...), but it's always a good idea because the cost is not great compared to the protection given.  Lawsuits can lead to a judgement that will garnish future wages.  So even if you're just renting an apartment now and have one car, don't think for a second that's all you have to lose.  $200 now for a million dollar umbrella is worth it considering what you could lose down the road.

If you have questions please contact me for more information.