Divorce and Your Insurance

While going through a divorce, you need to reassess your finances. To start, you should:

• Review all insurance policies in place during the marriage
• Decide which policies you still need
• Decide how health insurance for all family members will be provided for
• Decide what additional coverage is needed

The Basics

Health Insurance – Health Insurance coverage should be covered in the final divorce decree. Who pays for what should be clearly stated so that there is no confusion. If you have children, it is imperative that an agreement is reached as to who will provide coverage. Usually whoever had the coverage for the children prior to the divorce will continue that coverage. Who is responsible for unreimbursed medical expenses should also be addressed.

If you had medical coverage through your spouse’s employer-sponsored health plan, you may be allowed to continue that coverage for up to 36 months under COBRA. If you do qualify, coverage is not automatic. You must contact the employer within 60 days of the divorce and complete the necessary paperwork. If you do not qualify, you should consider a standard health insurance policy or, at a minimum, a policy that would protect you in the event of a major medical emergency.

Life Insurance – You should review your Life Insurance policies and make sure that they still meet your needs. You may also want to change beneficiaries at this time. Make sure that your ex-spouse carries coverage and that you are named as a beneficiary if you depend on their income for support. Check with your attorney before making any beneficiary changes. Now might also be a good time to increase your policy. Who carries Life Insurance, the amounts of the insurance, named beneficiaries, and accrued cash values should all be provided for in your divorce decree.

Disability Insurance – This pays a monthly benefit in the event that you become disabled and are unable to work. If alimony or child support is ordered, it’s especially important if the payer has no other sources of income to continue to make those payments. Consider what your needs would be in the event that you became disabled. We can help you determine specifically what type of insurance and the amounts you need to best protect your interests.

Homeowners and Renters Insurance – These policies protect your residence and the contents from damage or theft. If one spouse remains in the residence, they will want to make sure that they change the Homeowners Insurance policy to their name only and review their coverage. As a single parent, we recommend Replacement Cost coverage, which will reimburse you for what it would cost to replace an item. Also, opting for a higher deductible will help you save money on your premium.

Automobile Insurance – Automobile Insurance covers damage to your vehicle and damage that you may cause with your vehicle. Inform your insurance agent if you are separating or divorcing. Separate policies may be required if you and spouse are not living under the same roof. When you divorce, you will need to remove your spouse from your insurance policy. As a single person, you may now find options like towing, rental reimbursement, and roadside assistance beneficial.

Umbrella Insurance and Long-Term Care Insurance are additional coverages you may want to consider.

Helpful Tip – Avoid post-divorce credit problems by closing all joint accounts.

Don’t make the mistake of overlooking your insurance needs when going through a divorce. The lack of adequate insurance for yourself, your children, and even your spouse can lead to financial ruin.

Contact your insurance agent to discuss some important things to consider when going through this stressful time.

Candle Safety Considerations

Candles provide a warm ambiance for an intimate dinner, a sparkling decoration for a birthday cake or a nice aroma of cinnamon during the holidays. Ambiance aside, candles can be a fire hazard if they are left unattended or placed in areas of the home in which they can start other objects on fire. Your best bet? Learn to use candles safely.

Candle Safety Tips

The cardinal rule is that candles should only be for adults to use since they are a major fire hazard. If you enjoy candles, here are some other safety tips that illuminate some ways to enjoy them safely:

• Always blow out candles before leaving the house, going to bed or when leaving the room in which a child or pet is present.
• Do not allow children to light candles in their bedrooms unsupervised.
  • Never light candles when you are under the influence of drugs and/or alcohol. These substances may inhibit your ability to decipher when you are using candles in a hazardous manner.
  • Do not place candles on a Christmas tree or on evergreens during the holidays since they could start the limbs or pines on fire.
  • Use nonflammable, stable candle holders or hurricane glass holders to hold candles and protect open flames.
  • Place candles on a stable surface where they cannot be knocked over easily, blown down or reached by children and/or pets.
  • Place candles away from flammable items such as drapery, sheets, towels and carpeting.
  • Do not throw away a candle in the trash to extinguish and/or dispose of it. Instead, blow it out and then wet the wick before tossing it out.

Practicing candle safety is just one of the many ways to protect your home and its contents. To make sure you are covered, no matter the mishap, contact us today.

Since matches and lighters are a major fire hazard in addition to lit candles, keep these items in a cabinet out of a child’s reach. Teach your children that candles, matches and lighters are not toys and should be used only by an adult who knows how to use them safely.

For more information on candle safety and your home insurance coverages, contact your agent.

Liabilities of Renting Your Home

Perhaps you’re considering renting out your home for extra income while away for an extended period of time or for a big event nearby that’s causing the demand for lodging to increase. Though this seems like an ideal solution for families with extra room to spare, it can also pose liabilities. If you are considering renting out your home, take the following considerations to heart.

Renting To-do’s

• Draw up a rental agreement that defines the terms of the rental, including restrictions, liabilities and occupancy guidelines.
• Ask for references from potential renters, especially those that will stay for awhile.
• Request a security deposit to be refunded if there is no damage to your home.
• Advise Oakland Companies that you plan to rent out your home and ask about how this may affect your current coverage.
• If are renting for a long period of time, consider hiring a “property manager” to look out for your house while you are away.

Protecting Your Personal Property

• Set aside a locked place in your home to house personal items such as clothing and valuables.
• Take valuable items to a locked storage facility, a family member’s home or a bank vault.
• Change alarm codes after you are done renting.
• Provide keys to only one door of your residence so that you have to change only one lock after the renters leave.
• Photograph and videotape all areas of your home before the rental takes place in case damage occurs while you are away.
• Tell your neighbors that you are renting and ask that they watch over your home.
• Ask your telephone company to block long distance phone calls from your landline.
• Have your mail forwarded or held until you return.
• Provide your contact information for both the renters and your neighbors in case of an emergency.
• Provide the renters with a list of service providers, such plumbers and electricians, in case of a water leak or furnace failure.

Checking the references of potential renters is vital when determining if you will open your home to strangers. If you uncover any red flags while checking their references, do not agree to rent your home, even if you are afraid of hurting someone’s feelings. Your first priority should be to protect yourself and your property. If you have any questions regarding your home insurance, contact your agent.

Prepare Your Home for Frigid Temperatures

As the weather starts to cool in the autumn months, many homeowners tackle winterizing projects to ensure that their homes are weather-ready for cooler temperatures. The best way to undertake these projects is to start by taking a walk around your home and assessing what needs to get done. Consider inspecting the following areas:

• While on the roof, examine your chimney for missing mortar, cracks and structural problems, as damage in your chimney or fireplace can lead to dangerous carbon monoxide buildup in your home. Also ensure that your damper is working correctly and has a tight seal. Your chimney cap should be snug as well.
• Remove clogs in your gutter and check for any water damage. Consider consulting a professional for guidance on how to prevent ice dams (water backup in cold temperatures).
• Check your doors and windows for missing weather stripping. Also make sure that door sweeps are not damaged and are aligned properly to block drafty air.
• Cover window-mounted air conditioning units if you are not going to remove them entirely. Fill in the gaps on the sides of the unit with insulation board and caulk. If you have central air, cover the unit loosely.
• Turn off the faucets outside of your home and cover them with a commercial cover or two old socks wrapped tightly around the faucets; seal with duct tape.
• Inspect the foundation for cracks and gaps to prevent animals from entering your home.
• Look at your home’s siding for missing pieces.
• Make sure your exterior light fixtures are working properly and are sealed tightly to the mounting.

It is very important to keep your home safe during these blistering months. Year-round maintenance is critical to your home insurance policy to avoid the need to file a claim. For more information on your winter preparation and your insurance, contact your agent.

Filing an Insurance Claim? Watch What You Say!

Filing Claims 101: All You Need to Know!

Many people are flustered when they file an insurance claim given that claims typically follow devastating events like car accidents, illnesses or home fires.

To help you file a claim in Michigan with ease, below is some useful information you need to make the best of this trying experience.

Navigating an insurance claim can be quite tricky if you are unsure how to approach it. Consider the following recommendations to increase the chance that your claims will be processed successfully. Better yet, put these tips in your wallet or post them on your fridge.

When you are involved in an automobile accident

• Do not apologize to other drivers involved or admit fault under any circumstances.
• Describe what occurred to law enforcement and to your insurance company. If you are unsure, leave it to the authorities.
• Always contact your insurance company immediately after an auto accident.
• Do not talk to the other driver’s insurance company; let your company represent you throughout the ordeal.

 When your home is flooded

• The term flood in the insurance world refers to water damage resulting from an overflow of a nearby stream or river. Even if your sump pump did not work and you have 6 inches of water in your basement, you are not dealing with a flood.
• Making references to the wrong terms can cause claims to be denied or elongate the process.
• Review your Homeowners Insurance policy to determine what it covers with regard to water damage.
• Do not guess how accidents occurred. An insurance investigator will determine the exact cause of the claim in question.

When you have a health care claim:

• Avoid calling procedures experimental, investigational or a clinical trial. The claim may be denied if the treatment is seen as unnecessary.
• Do not sign any medical record releases. It is illegal for an insurance company to access your records without your consent, and they should not need them to process the claim.

The most important thing to remember when filing a claim is that the less you say the better. Do not speculate and do not judge; simply give the facts and the insurance company will take care of the rest.

Feel free to contact your agent for assistance throughout the claims process.

Get a Handle on Hand Tool Safety

Everyone loves a good hand tool; it can get a simple job done easily, quickly and efficiently. Plus, it is easy to transport since it is compact and generally lightweight. Yet, many accidents occur when homeowners use hand tools because they are careless and assume that no major injuries can occur. You can’t have every household injury covered under your Michigan home insurance, so safety should always be your top priority. Well… the reality is to the contrary. Many people suffer eye injuries, puncture wounds, cuts, broken bones and contusions from using hand tools inappropriately.

Hand Tool Safety Recommendations

To avoid unnecessary accidents and injuries while using hand tools, consider these safety recommendations:

• Examine tools before each use to ensure that they are in good working order. If your tools appear damaged or broken, have them repaired or discard them before using.
• Use tools only for their intended purposes only.
• Do not force tools beyond their capacity.
• Use a vise to secure tools whenever possible.
• Never carry tools in your pockets; wear a tool belt instead.
• Ground hammerheads properly and do not use them if they have broken claws or handles.
• Keep cutting tools sharp and use the appropriate handles.
• Always wear protective equipment to shield your eyes, hands, ears and other body parts from danger. Consider wearing goggles or safety glasses, ear muffs or plugs and gloves depending on the task at hand.
• Sharpen, clean and oil tools as needed to keep them in good working condition. A little TLC goes a long way.

In addition to insuring your home, ensuring your safety and preventing losses are also top concerns. If you would like more home loss prevention or safety tips, please contact your agent.

Insuring Valuables

 

 

 

 

 

 

 

Protection for the Finer Things in Life

Your valuables are important to you – and insuring them is equally important to prevent serious loss in the event of damage or theft. Learn more about how you can protect the finer things in life with additional Michigan insurance coverage options, highlighted below.

Coverage Options

Standard homeowners, condominium or renters insurance policies include a limited amount of coverage for jewelry and other valuable items. However, many policies limit the dollar amount of coverage for the theft or loss due to a covered peril of such items. To properly protect certain types of valuables, additional coverage is available through a policy endorsement or floater.

Endorsements

Endorsements are additions to your homeowners, condominium or renters insurance policy that change or add to the policy’s provisions. The endorsement can cover property otherwise excluded from a basic Homeowners Insurance policy, extend the number of perils included, or increase the amount paid for a covered loss. The items of value are “scheduled” on a list that includes a brief description and the item’s dollar value.

To determine each item’s value, an appraisal or sales receipt is typically required. This will help ensure that, in the event of a covered loss, the amount of insurance is enough to cover the repair, replacement or cash payment of the item.  Items scheduled are typically not subject to the policy deductible.

Floaters

A separate personal articles floater policy may be used to schedule your valuable property that is subject to special limits under basic homeowner’s coverage.

Once you have an endorsement or floater, it is important to periodically review your policy’s coverage limits to minimize the likelihood of being underinsured due to outdated appraisals and inadequate limits of insurance.

The Cost of Coverage

The cost of coverage varies upon the item, but typically the fee is nominal. Our personal lines team of specialists can provide you with more information about coverage and an estimate for the cost of scheduling an item.

Why Should I Insure my Valuables?

The limited coverage provided in your homeowner’s policy may not be sufficient to cover your valuables in the event of a loss.

Adding an endorsement or floater policy to the coverage you have ensures that you’ll be reimbursed for these items.

Before a thief steals your possessions or precious jewelry becomes lost, call your agent to learn more about the affordable ways to protect the things you value most.

Condominium Insurance

Condominium Owners have Unique Coverage Needs

If you own a condominium or co-op, you have both common and personal insurance needs. Typically, your condo association has a master policy that insures all of the property and common areas that are collectively owned by the unit owners. Yet, how do you cover the cost of damage caused by a kitchen fire or theft of your personal items?

A Michigan Condominium Insurance policy is designed specifically to meet your unique homeowner needs, including coverage for your personal possessions, structural improvements made to your living space and additional living expenses incurred due to an accident.

Property Protection

After you’ve determined what’s covered by the association’s master policy, a personal Condominium policy will help to safe guard you from losses to your personal property and the interior of your unit. As such, you will need to estimate:

–       The cost to repair or replace the inside of your home if it were damaged, including fixtures, kitchen cabinets, plumbing, wiring, built-in appliances, etc. (if not covered by the association’s master policy)

–       The cost to replace the contents of your home

To assist you, your Michigan insurance company will provide a form for you to conduct a thorough inventory of your home. This will help you to determine your personal property policy limits, which will ensure you have the right amount of coverage in the event of a covered loss.

It is recommended insuring your personal property for its Replacement Cost Value rather than Actual Cash Value. The longer you own your belongings, the less value they hold. Replacement Cost Value insures you can replace yesterday’s purchases at today’s price tags.

Liability Protection

In addition to your belongings, the Liability to Others portion of your policy covers you against lawsuits for bodily injury or property damage that you or a family member—and some cases, pets—cause to other people. It pays for both the cost of litigation and any court awards, up to the limit of your policy, and covers you at home or away.

 Liability limits typically start at $100,000. For more coverage, consider a Michigan Umbrella or Excess Liability policy, which provides broader coverage when liability limits are exhausted in underlying policies. In the event a visitor is injured in your home, Medical Payments coverage allows the person to submit medical bills directly to your insurance company. The benefit is that expenses are paid to the injured person, up to the policy limit, without a liability claim being filed against you.

Additional coverages to consider-

Unit assessment coverage: Unit Assessment coverage reimburses you for the expense passed on to you by the association due to a special assessment, as long as the cause of loss was covered by the association’s policy.

Sewer back-up: Additional water back-up coverage insures your property for damage by the back-up of sewers and drains (does not include flood protection). It is not always included in a Michigan Condo Insurance policy.

Flood or earthquake: These can strike anywhere, so it’s important to understand your risks and check into coverage options. We’d be happy to provide more detailed information to you about covering losses due to a flood or earthquake.

Top Ways to Save on Your Premium:

• Consider raising your deductible
• Invest in a home security system
• Update exterior locks to dead bolts
• Install smoke alarms
• Select an automatic payment method
• Monitor your credit rating
• Ask about multi-policy discounts with your Michigan insurance carrier

 Check Your Condo Association Coverage First

When selecting condo  coverage, it’s important to determine what is covered by your association’s master policy and what items are your responsibilities.  Typically, your condo association carries an insurance policy for common areas, such as the lobby, walkways, boiler, basement, etc. In most cases, the association’s coverage stops at the exterior walls. However, it may also cover other parts of the interior, too. It is critical to determine what the association’s master policy covers and what items are your responsibility.

Contact your Michigan insurance agent for more information.