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.

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.

Ice Dams

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.

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

- John Ruskin, 1900

The FAIR Plan is designed to provide coverage at reasonable rates to consumers who can’t obtain it in the open marketplace. This counts for approximately 60,000 families on coastal areas including Cape Cod. New Bedford, Fall River, Quincy, Lawrence, Brockton, Lynn and parts of Boston will face a 10 percent increase. Homeowners on Cape Cod will face a 6.7 percent rate increase under this proposal.

Actual cash value is the value of the property at the time of loss. This is equal to the replacement cost minus any depreciation. Another way to think about it is that ACV is the dollar amount you could expect to receive for the item if you sold it in the marketplace.

Replacement cost gives you an actual replacement of the item. For example, if your 5 year old laptop was stolen, you would be reimbursed for the full cost of replacing it with a new laptop of like kind. In other words, it is the cost to replace the property on the same premises with other property of comparable material and quality used for the same purpose.

Here’s a great reason why you should pay the little extra for replacement cost coverage on personal property.

8 Things that lose value as soon as you purchase them:
Cars
Video games
Jewelry
Other media
Electronics
Food
Clothing
Personal Care Products
Clothes

Valuable Articles

If you plan on buying your sweetheart something shiny this Valentine's Day, be sure to protect it.  Don't let it come as a surprise to you that your homeowners or renters policy does not offer full coverage for valuable items such as jewelry. You certainly wouldn't want a broken heart if something were to happen to it. 

Items such as rings, watches, fine art, and furs can be scheduled onto your homeowners or renter’s policy to protect you from losses such as mysterious disappearance and breakage.

Anyone items with monetary or sentimental value of $500 or more should be insured.

If you are giving it to your sweetheart, who doesn’t happen to live with you, the item will need to be insured on THEIR policy. If you are married and living together, no sweat, just have it added to your current homeowner’s or renter’s policy. Depending on the value of the item, you may need to provide receipts and an appraisal to get insurance.

Whether you are renting an apartment or own a home, make sure your personal property is covered with a renter's, condo, or homeowner's policy.  Additionally, learn how you can prevent frozen pipes so a disaster like this does not occur in your home.

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.

The Center for Disease Control and the National Fire Protection Agency agree that having carbon monoxide detectors in the home is a family’s best line of defense against poisoning.

Here are 9 ways to prevent carbon monoxide poisoning in your home:

1. Only use CO detectors that have been approved by a qualified, independent testing laboratory.
2. Install detectors in a centralized location outside of the family’s sleeping area, making sure the alarm can be heard in each bedroom.
3. Abide by the manufacturer’s replacement interval for replacing the sensors in CO devices.
4. Replace batteries at least once a year, unless the directions give a different time frame.
5. Test all carbon monoxide detectors on a monthly basis to make sure they are working properly.
6. Never use your range or oven to help heat your home and never use a charcoal grill in your home or garage.
7. Never keep a car running in the garage.
8. Have a qualified professional check all fuel burning appliances, furnaces, venting and chimney systems at least once a year.
9. When purchasing an existing home, have a qualified technician evaluate the integrity of the heating and cooking systems, as well as the sealed spaces between garage and house.