A Record-breaking Year for Natural Disasters

2011 was a record-breaking year for natural disasters in the U.S. In Massachusetts, we experienced destructive weather events that began with a series of winter storms, causing ice dams to homes and numerous car accidents. In June, tornadoes hit western MA, and in late August, Hurricane Irene caused widespread flooding, wind damage and lengthy power outages. More recently, the Halloween snow storm caused power outages throughout central and northern MA.

How this affects you

The 2011 disasters affected large areas and caused the majority of companies to lose money. This means property insurance companies will be looking for rate hikes in 2012. You can ask your agent to shop your insurance, since some companies will raise rates more than others. You can also opt for a higher deductible to lower your rate. More importantly, you should take steps to protect your home. You can save with choosing a higher deductible or with the “no loss credit.”

Though it’s been a mild winter so far, who knows what 2012 will bring? Stay tuned with Murphy and Jordan this year as we share tips on how to keep your home, family, and assets safe.

A Parent’s Guide: Teen Drivers

There’s no doubt about it. Adding a teenage driver to your car insurance policy will cause a spike in your rates. And yes, you do have to add them to your policy since ALL licensed household members need to be added regardless of whether they drive your car or not. It is also your responsibility to inform your insurer when the child gets his or hers learner’s permit.

There’s a reason why teens cost so much to insure. National Statistics have proven that two out of five deaths among U.S. teens are the result of a motor vehicle crash. New drivers are among the most dangerous on the road. They don’t have much driving experience, and are more apt to rack up tickets and accidents at rates several times the rate of a typical driver.

The good part about this is you have some control on how much they’ll increase. Having your teen drive a safer car such as a Camry rather than a sporty car such as a Camero will have a big impact. Other ways to control their rates are by encouraging them to get good grades, and urging that they keep their driving records clean. Some insurance companies also give credit if your teen completes a driver training course such as In Control Crash Prevention.

The only way to avoid paying the premium for a teenage driver on your own car is a named exclusion. Through an endorsement to your policy, you and your insurer agree that the driver is NOT COVERED. Any claim caused by that driver isn’t covered, either.

Winter Weather Claims

Ice Dams
The cost to remove ice dams is normally not covered on a homeowner’s policy. However, interior or exterior damage caused by an ice damn on the roof is usually covered.

Roof Collapses
Homeowner policies will typically cover sudden and accidental roof collapses. However damage caused by pre-existing damage or age could be denied.

Snow Removal
Keeping roofs clear will help prevent collapses during heavy winter snowfall. A homeowner’s policy does not cover injuries to the homeowner during snow removal. However, snow removing professionals should be covered under their own liability policies.

Frozen Pipes
Most policies will not cover the cost to replace broken pipes but will pay for the damage caused by the frozen pipes. Coverage may not apply if you turned off the furnace for the winter without winterizing the home or contents. Coverage may also be denied if you fail to protect the pipes from freezing during a power outage. Thermostats should be set no lower than 55 degrees if the homeowner is away for an extended period of time.

Storm Power Outages
Some policies will pay for spoiled food. Temporary living expenses generally are not covered unless there is direct, covered damage to the home.

Renters
Landlord’s insurance will only pay for damage to the building. It will not pay for damage to personal contents which must be covered by a renter’s insurance policy.

The Benefit of Snow Tires for the Winter Season

You’re probably wondering why I chose this topic since this winter has been so mild, but remember, this is New England, and anything can happen. 

Snow tires just might be the best insurance you can buy for the winter.  You’re cruising down the road with not a care in the world and in a split second all changes.   When you lose traction, your heart starts to pound, you get scared, and you forget what to do.  This scenario can have devastating consequences.  A set of snow tires will help to prevent situations like this.

Did you know that about 70 % of winter deaths related to snow and ice occur in automobile accidents? This statistic alone should make you think about getting a set of snow tires.  Keep in mind, they are designed to deliver safety and control in snow, ice and cold weather conditions; and they can deliver as much as 25 to 50% more traction than all-season tires. 

Now it’s not a good idea to leave snow tires on year round because they are made of a softer rubber and will wear out faster, especially in warm weather.  The tires deep tread, dig into snow and ice so the wear and tear on these tires is crucial.  For the rest of the year, you may want to choose an all- season tire because they tend to handle better in the rain and can also be a smoother and quieter ride.  If you’re worried about the price of snow tires, let me put it this way: if you have two sets of tires, only one can be worn out at a time.  To put it another way, your tires will last twice as long.

I hope this helpful tip was useful!  Remember, driving is a privilege, so stay safe out there and thanks for tuning in to Murphy and Jordan Insurance. - Michelle Prall

It’s unwise to pay too much, but it’s worse to pay too little...

It’s unwise to pay too much, but it’s worse to pay too little. When you pay too much, you lose a little money—that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot—it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.

- John Ruskin, 1900