Tornado Damage: Are you covered?

Does windstorm include tornado?

After a tornado paid a late night visit to the Forest Meadows neighborhood in Medina, we received a lot of calls from clients regarding their homeowners coverage.  Since the policy specifically refers to windstorm as a covered cause of loss, some residents have wondered what exactly windstorm includes.  Tornadoes, hurricanes, high winds, thunderstorms and blizzards are all included in the definition of windstorm.  Your homeowners policy also provides 'loss of use' benefits to cover additional living expenses while repairs are being made to your home.

Volunteer Activities:  Are you covered?

You are a volunteer soccer coach, a 4-H advisor, a chamber of commerce committee member, on the church board, or you helped raise contributions for the last United Way campaign.  Perhaps you have volunteered hundreds of hours this year without a thought of insurance coverage. If someone is injured, who pays for any legal action brought against you in these volunteer activities?  If sued as a board member for breach of duty, imprudent investments, discrimination in hiring or wrongful termination, are you covered?

To answer these questions, there are two places to check: your home insurance and the organization's insurance.  Let's look at them.

Your homeowners insurance policy gives you liability protection for bodily injury and property damage to others in non-business activities, like a child getting injured when you are the volunteer soccer coach or 4-H advisor.  On the other hand, no protection is provided if your volunteer activity is related to a business (chamber volunteer; union, trade or professional association rep, etc.) or if you receive any compensation.  Any legal action other than bodily injury and property damage is not covered (an exception: some homeowners policies cover personal injury --- libel, slander, false arrest, false imprisonment, etc.).

Also check for coverage under the organization's policy. Ask the organization leadership for proof of insurance for: general liability, directors and officers liability, and employment practices liability.  Also check to see if volunteers are covered (named as additional insureds) under those policies.  Some other potential loss situations could include:

• Failure to examine documents signed
• Silence with respect to improper conduct of fellow officials
• Improper rejection of bids
• Failure to exercise diligence in management
• Incurring unnecessary expenses

Communities are fortunate to have so many volunteers donating their time in a host of different areas.  This discussion is not meant to discourage any present or prospective volunteers.  Rather, our intent is to help individuals be well-informed, comfortable and adequately protected when it comes to volunteering.

Earthquake, Flood and Sewer Back-up

While not wanting to dampen your anticipation of this long-awaited season, it is a good idea to review some optional coverages you may wish to add to your current homeowners policy.  Flood insurance as well as the sewer back-up and earthquake endorsements are worth a brief examination.

Flood - Since flood damage is excluded under your homeowners coverage, you should be aware that flood insurance is available from the National Flood Insurance Program.  Most Ohio communities have qualified for the program which provides coverage for surface flooding only.  Structural and contents protection are offered.  A $500 deductible applies.

Sewer Back-Up - This endorsement provides protection for direct loss caused by water which backs up through sewers, drains or sump pump wells.  Just as flood insurance excludes coverage for sewer back-up, this endorsement excludes any coverage for damage due to flooding.  Coverage is subject to a deductible.

Earthquake - Coverage is available with the premium determined by the structure of your home or building.  Because it will better withstand an earthquake, a frame structure is less to insure than a masonry one.  A substantial deductible (often a % of the amount of insurance that applies to the destroyed or damaged property) is in effect.

For clarification of your current policy or information regarding the above coverages, please contact your Hunter Insurance agent.  We welcome the opportunity to evaluate your present needs and to discuss possible insurance improvements for you and your family.

Protecting Your Arts and Antiques: Fine Arts Floaters

The Problem: How much should your insurance pay you if the oil painting you purchased 10 years ago is damaged or stolen? Or what should you receive for great-great-grandpa's Civil War sword hanging over your mantle? Or the claw-foot table that Aunt Ruth left for you?

Many policies pay to replace a personal item with a similar new one, but that is of little help for irreplaceable one-of-a-kind antiques and art objects. Also, setting a fair value is very difficult if the item is gone and there is no way to get an expert opinion on its value.

The Solution: Consider a fine arts floater! Know exactly how much you will receive for a damaged or stolen item before a loss ever occurs. The advantages of fine arts floaters include:

• It is a “valued policy.” The value is determined when the item is insured, not at the time of loss. In a total loss, the insurer pays the limit shown on the policy.
• It covers nearly any direct physical loss with very few exclusions, and usually without a deductible.
• The premium is reasonable--typically $3-8 per $1000 of value. So, coverage for a work of art valued at $10,000 would cost between $30-80 annually.
• Protection against breakage of fragile items can also be purchased.

Where to begin: Give us a written appraisal from a qualified appraiser, and we will add the coverage to your policy. Be sure to let us know if you want breakage coverage or not. Our goal is your peace of mind. We want to continue as your Agency of Choice. Please call if you want to discuss this further.

Fine arts floaters are available for many items including:

• Antique furnishings
• Hummel collections
• Tapestries
• Oriental rugs
• Paintings
• Antique light fixtures
• Statuary
• Old rare books
• Antique clocks
• Other artwork
• Glassware, china
• Royal Doulton collections examination.

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Trampoline Alert!

Not too long ago, a Beacon Journal headline read “Trampoline accidents jump to new heights across the nation.” Because of the huge potential for liability losses, insurance companies across the nation are responding to this phenomenon. If you have a trampoline and haven't already been notified of some action your homeowners insurance company is taking, please call us to see how your trampoline will likely impact your insurance. If you're thinking about acquiring a trampoline, our suggestion is a simple one. Don't!