Becoming a first-time homebuyer can be both exciting and nerve-racking at the same time. There are a lot of expenses you’ve probably heard about that come with closing on your first home, for instance the down payment, closing costs and agent fees. One expense you may be less familiar with is homeowners’ insurance. Don’t get blindsided by the cost insurance might add to your financial responsibilities – take time to understand your options and get estimates before putting down a large sum on your home.

We’ve assembled a number of most commonly asked questions that first-time homebuyers ask to help give you a better sense of what you need to know when shopping for homeowners’ insurance.

How Much Coverage Do I Need? A Home Inventory Will Tell You.

Start by completing a home inventory (a comprehensive list of everything you own and each item’s value). Make a list or your possessions, describing each item, and noting the make and model and where each item was purchased. Include sales receipts, purchase contracts and appraisals if you have them. Organize your clothing into categories so they are easier to reference.

Here are some handy tips to help you organize your inventory:

• List big-ticket items such as jewelry, artwork and collectibles
• Take pictures of important individual items and store with descriptions
• Save your inventory list on your computer and store it on an external hard drive or disk (you can also send it to a trusted family member for safe-keeping as well)
• Put all the photos, lists and any other documentation (electronic or paper) in a safe deposit box

What Coverages Are Included?

Standard homeowners’ insurance policies include coverage of:

• The structure of the home – if your home is damaged or destroyed by a covered peril (fire, windstorms, hail, lightning, theft, vandalism, explosion, water damage and riots)
• Your home’s contents – if your belongings are damaged or destroyed, it’s typically set between 50 and 70% of your home’s structural coverage (each carrier has its own set of amount covered); high-value items have a cap on repair/replacement value so you should go over these details with your agent.
• Liability – if someone is injured on your property, the liability portion of your insurance policy can help pay for medical, rehab, funeral expenses and legal fees in the event of a lawsuit
• Other structures – if your detached garage or toolshed is damaged or destroyed by a covered peril (see structure of the home for covered perils), your insurance can help pay to have it repaired or rebuilt
• Additional living expenses – in the event that you home is destroyed and needs to be rebuilt, this coverage can help pay for living expenses (hotel and food bills) while you’re displaced

Why Won’t Your Insurance Costs Be The Same As The Current Owner’s?

Many first-time homebuyers assume that they will be paying the same for insurance as the previous owner. In fact, many ask the previous homeowners how much they paid for electricity, school and property taxes, along with the insurance cost when deciding on whether or not to buy the home.

What a previous owner paid in insurance is not always a good indicator of what you’ll pay. There are some predictable and consistent factors, such as if the home is in a flood area, or in an area with many windstorms, hail or tornado claims. But, insurance companies like lenders, take into account your personal information to establish the cost; your age, credit rating, profession and other personal choices are used to determine what kind of insurance they choose and how much you’ll pay.

What Factors Can Affect How Much I Pay For Homeowners Insurance?

The following variables can impact the cost of your homeowners’ insurance premium:

• Home features and characteristics – your home’s age, type of structure, wiring, roof, garage and more can affect your homeowners’ insurance premium. Older homes tend to cost more to insure, and those costs can depend on whether your home is brick, frame, stone or has synthetic siding.
• Location – where your home is located can impact your premium. Proximity to the ocean, exposure to extreme weather (hurricanes, tornadoes, floods) or high-theft neighborhoods can all be factored in.
• Protective devices – burglar alarms, smoke detectors, fire extinguishers, sprinkler systems and deadbolt locks can lower your insurance premium.
• Personal factors – believe it or not, being a smoker may cause you to pay more for your home insurance than a nonsmoker; in their eyes there’s a greater chance for an accidental fire. A good credit history can also lower your insurance.
• Claims history – if you have a history of claims, you’ll pay more and if you made a claim under a previous insurance policy, like a renter’s policy, you’re not eligible for a claims-free discount.
• Previous insurance history – factors like if you’ve never had previous insurance on a residence, have a gap in your insurance history, or if you’ve been previously cancelled by an insurance company for non-payment can impact coverage and cost.

How Can I Save Money On Insurance?

It is possible to cut the costs by making certain adjustments. Some of these are immediate solutions and some require a longer term modification.

• Discounts – Most insurers offer a laundry list of discounts for policyholders. One of the most common is bundling; by bundling your home and auto insurance with the same provide or agent, you’ll be entitled to a discount. As mentioned earlier, safety/protective devices can also reduce your premiums.
• Raise Your Deductible – Raising the amount you agree to pay toward a claim before the insurance kicks will lower your premiums. However, setting it too high can come to bite you in the end if disaster strikes.

How Do I Pay For My Homeowners’ Insurance?

There are two ways to pay your annual homeowners’ insurance premium. You can pay it once annually to your insurer, or elect to pay it as part of your mortgage (escrowing), one month-at-a-time.

How Do I Choose A Provider?

The best advice we can give is to shop around for the rates and programs which best meet your needs. Like mortgage rates, homeowners’ insurance vary between carriers. They also vary in terms of coverage. Don’t be shy about asking friends for recommendations either, referrals are great ways to validate the quality of a provider. However an insurance agent is the best and easiest way to get quotes from several companies in order to choose the best policy for your needs.

For more information on home insurance, contact Lallis & Higgins Insurance.

Prime Lending

Renters Insurance Should Be Considered For College Students Living on Their Own

College students renting an off-campus apartment or house while away at school should consider purchasing renters insurance to protect their personal property, such as a computer, television, stereo, bicycle or furniture, in the event that it is damaged, destroyed or stolen.

Even if a student is a dependent under his or her parent's insurance, the student's personal property, in many cases, is not covered if the student lives off campus. Parents should check their policy or contact their insurance agent to see if renters insurance is right for their son or daughter who is away at school.

What is Renters Insurance?

Renters insurance protects your personal property against damage or loss, and insures you in case someone is injured while on your property.

Why Purchase Renters Insurance?

If you live in a rented apartment, house or condominium, your landlord’s insurance doesn’t cover your personal property in the event that it is stolen or damaged as a result of a fire, theft or other unexpected circumstance.

College students living in off-campus housing are ideal candidates for needing renters insurance, since many students bring thousands of dollars’ worth of personal items, such as electronics, a computer, textbooks, clothes, furniture, and a bicycle, with them to school. It is the renter’s responsibility to provide coverage for these valuable items.

However, if a college student is under 26 years old, enrolled in classes and living in on-campus housing, the student may be covered under his or her parents’ homeowners or renters insurance policy.

The premiums for renters insurance average between $15 and $30 per month depending on the location and size of the rental unit and the policyholder’s possessions.

Basic Options

Most renters insurance policies provide two basic types of coverage: personal property and liability. Personal property coverage pays to repair or replace personal belongings if they are damaged, destroyed, or stolen. This is the most commonly purchased renters policy.

Liability insurance provides coverage against a claim or lawsuit resulting from bodily injury or property damage to others caused by an accident while on the policyholder’s property.

Unusually expensive items, such as fine jewelry or an art collection, may require the renter to purchase additional coverage, called a “rider” or “floater”. Your insurance agent can help you determine if additional coverage is necessary.

Shop for the Right Coverage

Another important factor to look for when shopping for renters insurance is “actual cash value” vs. “replacement cost” coverage.

Actual cash-value coverage will reimburse the renter for the cost of the personal property at the time of the claim, minus the deductible. It’s important to account for depreciation when considering this coverage option. For example, if a stereo system were stolen from an apartment, five years after the stereo was purchased, the policyholder would be reimbursed for the current value of the system.

Replacement cost coverage, on the other hand, will reimburse the full value of the new stereo system, after you purchase the new system and submit your receipts. While the up-front cost is greater, you are more likely to receive accurate compensation for your possessions.

Parents' Homeowners Insurance

As a parent with your own homeowners policy, you may want to contact your homeowners insurance company and ask if your child will be covered while they are away at school. Some companies might still cover your child's belongings under your policy depending on their age and student status. However, you will still be responsible for your deductible under your policy.

Other Points of Interest Regarding Renters Insurance

When a claim is reported, the insurance company will ask the policyholder for proof of purchase for all items reported on the claim. A comprehensive list of possessions, including purchase prices, model numbers and serial numbers, will suffice. It also is a good idea to take photos or video footage of any personal possessions for documentation, making sure it is stored in a secure, off-site location.

When determining how much, if any, renters insurance you should purchase, estimate the value of your personal possessions. This is the amount of insurance you will need to replace the contents of your home if everything were destroyed.

If a college student is living in an off-campus house or apartment with one or several roommates, they may be able to purchase a renters insurance policy together. Some policies automatically extend coverage to any resident of a policyholder’s household who fits the definition of a “domestic partner.” Otherwise, consider carrying separate coverage for each of the adult tenants.

One of the smartest things you can do as a renter is reduce the chances of needing to file a claim altogether by requesting that the property owner install an anti-theft or safety device inside the rental property.

In all cases, it is recommended to reference your current insurance policy or contact your agent when deciding whether or not to purchase renters insurance for a student away at college.

For more information on renter’s insurance for college students, contact Lallis& Higgins Insurance.

naic.org

For many of our neighbors in Quincy and Weymouth, MA, summer means more than sunshine and vacations. It also means working in the yard - often with tools that can be dangerous if not used properly.

Each year about 400,000 people are treated for injuries from lawn and garden tools, according to the U.S. Consumer Product Safety Commission (CPSC). Don't let your landscaping efforts land you in the hospital! Follow these handy safety tips.

Tool safety tips from the U.S. CPSC

• Dress appropriately. To protect yourself from debris when using lawn tools, wear eye protection, long pants, long-sleeved shirts, close-fitting clothes and no jewelry. Sturdy shoes are recommended, and ear plugs may be appropriate depending on how loud the device is.
• Before starting, remove objects from your work area that could cause injury or damage, such as sticks, glass or stones.
• Keep children indoors and supervised at all times when any outdoor power equipment is being used. Never let a child ride or operate a garden tractor or riding mower, even if the child is supervised. And never assume children will remain where you last saw them. Use extreme caution when backing up or approaching corners, shrubs and trees.
• Teenagers using power equipment should always be supervised by an adult.
• Handle gasoline carefully. Never fill tanks while machinery is on or when equipment is still hot. Of course, you should never smoke or use any type of flame around gasoline or any gasoline-powered equipment.
• Do not work with electric power tools in wet or damp conditions. For protection against electrocution, use a ground fault circuit interrupter (GFCI).
• Be sure that extension cords are in good condition, are rated for outdoor use, and are the proper gauge for the electrical current capacity of the tool.

Lawn Chemical Safety Tips from Texas A&M University

• If you use chemicals to control weeds or pests in your lawn, read the product label carefully so you understand the potential effects on humans, animals and the environment. Follow all instructions.
• Keep children and animals away from the application area, and protect your skin, eyes and nose during and after application.
• Remember, use only the recommended amount. Using more of the chemical will not do a better job.
• Ask yourself if you truly need to use a general pesticide. Is there a product that will specifically treat only the problem you need to solve?

From all of us at Lallis & Higgins Insurance, here's to keeping both you and your lawn healthy this summer!

Purchasing your first home can be both nerve-racking and exciting. Closing on your first home comes with lots of expenses. Sometimes, other costs overshadow homeowners insurance.

Your homeowner’s insurance policy shouldn’t be the primary reason to buy or reject a particular house. However, it should play a fairly prominent role.

To prevent getting in a financial bind, get estimates on your homeowner’s insurance policy. Especially before putting down a large sum on your home.

Deciding which type of homeowner’s insurance policy to purchase can be complicated. The insurance industry and their policies are complex.

Here’s a few standard actions homeowners should take when purchasing their first home insurance policy.

Explore Your Options

Doing your research is the top piece of advice insurance brokers provide. When seeking a quote, there are many factors that determine your home insurance premium.

These factors may include location of the home, proximity to the fire department, previous claims filed, the age of the home, etc. Because so many factors go into determining premiums, you’ll want to ask about rebates.

You can help by fixing up or renovating your new home. Purchase safety features like an alarm system and smoke alarms. These will often reduce the cost of your coverage.

Premiums can be expensive. It’s important to shop around to get the best deal possible.

Be sure to get multiple quotes, because every carrier has a different pricing model. Your rates could vary significantly from one carrier to the next.

There’s no way to know which carrier will have the lowest rates for your particular circumstances. What you can do is gather homeowners insurance quotes from the top insurers and compare their rates.

Bundle Your Policies

Bundling is when you combine auto insurance and homeowners under one policy. It can result in significant discounts and save you money.

Insurance companies want your business. By purchasing both an auto and homeowners policy, they’ll be more willing to give you a deal.

Besides bundling, you can have your homeowners premiums included in your mortgage payment. This is called an escrow account.

Your mortgage lender will pay your property tax and insurance premiums for you. Just make one combined monthly payment. This payment includes your mortgage and one twelfth of your annual property taxes.

Choosing a policy can be straightforward. However, consumers should be cautious of what is or isn’t covered in their policy.

Special luxuries and antiquities are not always covered. It’s important to do your research.

Specialty guitars, family heirlooms, one of a kind art, and more are not always covered under your policy.

Sometimes adding endorsements or riders to your policy will help you get the coverage you need.

Assess Risk

Risk associated with your home or area you’ll be living in is critical. You measure risk in terms of “likelihood”.

Home insurers look at the likelihood of a natural disaster or other unforeseeable misfortune occurring. The definition for this is peril.

Where you live will dictate the type of homeowner’s insurance you’ll need. Some areas need flood insurance. Others need earthquake insurance.

Lower levels of risk result in lower home insurance premiums.

Homeowners insurance is not, “one size fits all”. There are several different types of homeowner’s policies.

Which one is right for you, depends on the location of your home. This dictates the types of perils that may occur. And the relative risk of experiencing one of these perils.

The most common homeowner’s policy is the special form. They call this homeowners form 3 (HO-3).

According to the Insurance Information Institute, this form covers all perils except for ones specifically excluded.

• Ordinance of law
• Water damage
• Power failure
• Neglect
• War
• Nuclear hazard
• Intentional loss
• Government action

It would be in your best interest to add on flood insurance, if you live in a flood-prone area. Sometimes law requires it.

Another popular policy many first time homeowners go with is the broad form. Also known as homeowners form 2 (HO-2).

This policy only covers 16 perils. Again, depending on where you live, this may or may not be the best policy.

It might be best to purchase an HO-3 policy to get protection from more perils. Or you can add endorsements such as extended replacement cost coverage. This pays out additional money to repair your home if needed.

All of these choices come with different premium amounts. To help ensure you get the best rate, call an insurance agent or broker who can save you time and shop around and compare homeowners insurance quotes from top companies for you.

If you are moving to an area with a low risk of natural disasters, you might not need to purchase extra coverage. However, don’t assume where you’re buying a home lacks natural disasters.

Speak to an insurance broker. They can assess exactly the type of coverage you’ll need.

Along with the type of policy, there are varying amounts of coverage available. For example, you may opt to cover the entire value of your dwelling/home.

You can ask for coverage to include additional living expenses in case you lose your home to a covered peril. Your amount of coverage is due to the probability of a natural disaster occurring. Again, a licensed insurance agent or broker can help you determine your needs.

Wear and Tear of the Home

It’s important to assess what needs fixing up on your new home. Do this before deciding which type of homeowner’s coverage to invest in.

By spending up front to correct issues, you’ll be saving money in the long run. If you didn’t have a home inspection as part of the buying process, have one done.

Fix any items surfaced as a result of the inspection. Tell your home insurance agent. This may result in a lower price tag on your premium.

Assess Your Credit

People often overlook that insurance companies take your credit score into account when quoting premiums. It’s important to have a good credit score. This tells mortgage lenders you are trustworthy and will pay them back. The same goes for purchasing insurance.

A high credit score means lower premiums and mortgage rates on your first home.

For more information, contact Lallis & Higgins Insurance.

Quote Wizard

When it comes to insuring your boat, it’s often best to separate your boat insurance from your homeowner's policy. Many homeowners’ policies limit or don’t cover marine-specific risks, such as salvage work, wreck removal, pollution or environmental damage. But there are exceptions. Many homeowners policies include perfectly good coverage for smaller boats and motors, usually with a horsepower limit of from 25- to 100-horsepower. While homeowners riders are normally adequate for these boats, be careful to ask the same questions you’d ask any other insurer about damages to your vessel and how they will be paid. Also, most homeowners insurance riders apply only to use in inland waterways, lakes and rivers. Coverage seldom extends outside a coastal inlet or along the beach. If you plan to boat “outside the inlet” you definitely need an experienced marine insurer.

Many other factors will lead you to a qualified marine insurer, too, and here are the things to consider.

Insurance Factors

Insurers consider many factors when deciding whether or not to offer a policy. Almost any vessel can be insured— for a price. You want to consider the following to make sure the policy you purchase meets your needs:

• Age of Boat
• Length
• Value
• Speed/Horsepower
• Condition (Does it meet US Coast Guard Standards in effect at the time it was built?)
• Primary residence (If the boat is used as a primary residence)
• Type (Inboard, Outboard, utility, cruiser, bassboat, saltwater fishing boat, performance boat)
• Homemade (Boats without a serial number are tricky but many kits are okay)
• Houseboats with no motor
• Ownership (more than 2 owners)
• Where it will operate (Ocean, lakes, bays, rivers, Great Lakes)

Types of Boat Insurance

There are two basic types of boat insurance—“agreed value” and “actual cash value.” How depreciation is handled is what sets them apart. An "agreed value" policy covers the boat based on its value when the policy was written. While it can cost more up front, there is no depreciation for a total loss of the boat (some partial losses may be depreciated). "Actual cash value" policies cost less up front, but factor in depreciation. In other word, the policy will only pay up to the actual cash value of the boat at the time it is declared a total or partial loss. Eventually, as your boat ages, your insurer will likely insist on an actual cash value policy—and if often gives a substantial savings.

Kinds of Policies

Marine insurance covers a wide array of watercraft. You may be surprised to find what can be insured. Marine insurance policies include:

• Boat
•  PWC/Watercraft
• Yacht - generally, vessels 26' and smaller are called "boats,” and "yachts" are 27' and larger. Yacht coverage tends to be broader and more specialized because larger boats travel farther and have more unique exposures.
• Sailboat
• Dinghy
• Boat & PWC Rental – Although this is generally not required, rental insurance will help cover any damage the vessel, as well as the operator and passengers.
• Boat Clubs – covers all members of club while operating a boat.
• Professional (ProAngler, Fishing Guides & Charters) – These policies are very customizable and can cover items like travel to a tournament, equipment and more.

What Boat Insurance Policies Cover

How and where you boat determines the type of coverage you need. An "all risk" policy will offer the best protection. However, an “all risk” policy does not cover every type of loss. In insurance terms “all risk” just means that any risk not specifically omitted in the policy is covered. Typical exclusions include wear and tear, marring, denting, animal damage, manufacturers’ defects, design defects, ice and freezing.

You may also be able to add extra coverage. Available options may include: medical payments, personal effects, uninsured boaters liability, and towing and assistance. Most policies will cover permanently attached equipment, as well as items like anchors, oars, trolling motors, tools, seat cushions, and life jackets. Be sure to discuss these options with your agent.

Types of Coverage

This will depend on the type of policy, but common coverage add-ons (in addition to basic ones above) include:

• Specialized Coverage – Coverage for something specific on your boat like an expensive prop or navigation equipment.
• Salvage – Coverage that pays to remove your boat due to damage, from substantial to minor.
• Consequential Damage - Covers a loss that was the result wear and tear rather than an accident (rot, mold, corrosion).
• Towing – Towing your boat across a body of water to safety can cost $400 per hour.
• Cruising Extension – You can get temporary, additional coverage if you plan on leaving the USA (typically to Mexico or the Bahamas).

Shopping for Boat Insurance

Start with a little fact-finding. Ask your boating friends which company they use and how their claims have been handled. The way an insurer has handled claims in the past is a good indicator of the quality of service you can expect in the future.

State insurance regulatory agencies are also a good reference and can be found online.

Boat Insurance Cost Factors

Many factors are used to set the cost of a policy, and they vary among insurers. Here are some items to consider:

• Cruising Area - where you boat
• Boating Safety Education - if you have been formally trained or certified
• Good Driving Records - both boating and driving
• Liability Limits - the higher the limit the higher the cost
• Deductible - the higher the deductible the lower the premium
• Towing insurance requirements for offshore fishing. A 20-mile tow could cost $3,000

Storm Plan

If you boat in a hurricane zone, your insurer may expect you to provide a hurricane plan. If a storm approaches, will you have it stored in a hurricane-proof facility or will you tow it or skipper it to a safer harbor. The answer can affect your rates, even lower them, but be prepared to follow the plan, because your coverage may hinge on it.

Discounts

There are a few ways to reduce your boat insurance costs. For example, if your boating is restricted by seasons and your boat is in storage during the winter, you can get deductions for winter layup. Many insurers offer discounts for good driving records and for anyone who has completed boater education classes. Finally, it usually costs less to be insured in fresh water versus salt, so be sure to discuss where you boat with your agent. You may earn extra savings by bundling your coverage with the same company that insures your home and/or car.

Before you buy your new vessel, it’s a good idea to determine your insurance costs based on your needs.

For more information on boat insurance, contact Lallis & Higgins Insurance.

discoverboating.com

Do you have flood insurance? Do you need flood insurance?

If you don’t have the answers to these questions or are unsure of the answers to these key questions, we can answer them for you here.

Of all the natural disasters impacting the United States, floods are the most common. Average homeowners are five times more likely to deal with flood than fire damage. (And your chances increase if you live in a medium- or high-risk area for floods.)

Flood damage can be expensive to repair. The National Flood Insurance Program (NFIP) estimates a six-inch flood that hits a 2,000-square-foot home is likely to cause about $40,000 in damage.

Then there's the surprising fact that most standard homeowners and renters insurance policies don't cover flood damage.

Warning: Homeowners and Renters Policies Don't Cover Flood Damage

Typical homeowners and rental insurance policies don't cover flood damage.

Most people ignore flood insurance for this very reason. They assume the insurance they have will protect them from the aftermath of a flood.

In fact, you have to go out of your way to buy flood insurance as a separate policy from the NFIP. The Federal Emergency Management Agency (FEMA) administers this insurance. Or from one of the 80 private insurance companies that provide flood coverage.

A Few More Reasons as to Why You Shouldn't Ignore Flood Insurance

Generally people overlook flood insurance because they don’t think they need it.

Statistics show US homeowners (and renters), in general, are likely to deal with flood damage at some point in their lives.

Chances are higher if you live in an area that's considered “high risk” for flooding. There’s a one in four chance of experiencing a flood during the life of a 30-year mortgage in high risk areas.

Low- or moderate-risk areas, as according to the NFIP, field almost 25 percent of flood-damage claims. So, flood insurance is a good idea no matter where you live.

When You Are and Aren't Required to Have Flood Insurance

Do you live in a high risk area? Is your mortgage with a federally regulated or insured lender?

If you answered yes to both questions, you're required to have flood insurance.

If you live in a moderate- or low-risk area, you aren't federally obligated to have this kind of insurance. Although some lenders may still require it.

In some situations, government aid is available for flood damage to homeowners who didn’t have flood insurance. However, if they want to quality for future aid, they need to purchase a flood policy first.

One Rate is Just Like the Other?

Flood insurance rates are set nationally and don’t differ from company to company or from agent to agent.

Don't take that to mean that everybody pays exactly the same amount of money for this kind of coverage. What it means is that, all things being equal, the quote that you receive from one agent will be the same as one you receive from another agent.

That particular rate is based on a number of factors. Including the age of your home or building, how it was built, the elevation of your property, and its overall flood risk.

Contemplating Coverage Impacts and Limits

Another factor companies take into consideration when determining your rate is the desired amount of coverage. Be aware, though, that standard flood policies place certain limits on the coverage they offer.

Homeowners can buy a maximum coverage of $250,000 for buildings. And up to $100,000 for their contents.

Buildings may include the actual structure and its foundation, as well as any air-conditioning, electrical, heating, and plumbing systems and equipment.

Business owners can buy up to $500,000 in structure coverage and $500,000 in personal property coverage.

If your building is worth over $250,000, you'll have to buy excess flood insurance. This increases your coverage limit to $750,000. (Businesses can extend their coverage up to $1 million.)

Don't Worry, It's Easy to Buy

Despite the fact that flood insurance is a separate policy, it isn't difficult to purchase.

In fact, it may be easier to buy than some other forms of insurance. Options are limited to private companies and agents that have partnered with the NFIP.

Also, the NFIP makes the process of finding those companies and their agents pretty straightforward. Additionally, an extensive list of "participating companies" can be found at fema.gov.

A Few More Things You Should Know About Flood Insurance

There's a 30 day waiting period. In most cases, flood insurance policies won’t take effect until after that period is over.

You'll still be eligible for government aid. Having flood insurance won't prevent you from receiving government aid if you live in an area declared as a federal disaster area due to flooding.

Government aid isn't a suitable alternative to a flood policy. You may be thinking, "Hey, why should I bother paying for insurance when federal disaster assistance will bail me out?"

The reality is government aid isn't all it's cracked up to be. There are a few reasons for that.

First, before a community can become eligible for this assistance, it has to be declared a federal disaster area. And these declarations are issued in less than 50 percent of flooding incidents, according to the NFIP.

Second, federal disaster aid usually takes the form of a low-interest loan. The loan is designed to help pay for the repair of flood damage. It isn’t straight compensation that doesn't need to be repaid.

A flood is a fairly specifically defined event. Just because your basement fills up with water after a torrential rain storm, doesn't mean the resulting devastation will be covered by your insurance policy.

For that to happen, the flood has to affect two or more properties. Or, if affects only your property, it has to have covered two or more acres of land. Also, you might want to note that damage from wind-driven rain--such as when rain comes through a hole in a wall or roof, or through a wind-damaged window--isn't considered flood-related.

For more information on flood insurance, contact Lallis & Higgins Insurance.

quotewizard.com

The way homes and furniture are now built creates a new challenge for local firefighters.

They’re changing how they fight fires and going back to basics.

Boston 25 News Anchor Blair Miller suited up with Cambridge firefighters as they trained, for a rare look the true dangers they face in these quick-burning homes.

“Every skill we learn perishes if we don't keep it fresh,” said Cambridge Deputy Chief Sean White.

White says they've long been taught to “open a fire”, by creating a hole in the roof of a home or business. But he also says that may no longer be the best plan of attack according to new research.

"We've had to really go back and re-invent the wheel and use our tactics a little bit differently and at different times,” he said.

He points largely to the way furniture and homes are now built, as the reason why.

“The fuels have changed. The synthetics that have gotten into the couches, beds and everything like that. They burn at such a higher heat release rate. When you open up those windows or roof too early, it stimulates the fire,” said White.

Into the flames

Firefighters are working on new techniques at a special training location in Quincy that simulates darkness, smoke and intense fire.

Side by side with them, Boston 25 News went up six flights in the training tower. Firefighters raced to hit the fire with water, then looked for a window to let the smoke escape.

“We need to get the cooling of the water effect on the fire first before we open and that's a big change for us,” said Deputy Chief White.

“Over time, things change and they have different scenarios and different ways to fight fires that help out,” firefighter Rick Feliciano said after the training. Communication was often a huge challenge. Crews learn to focus on relaying signals to work well as a team.

“If we're not very good at what we do and we don't do it well fast, then we're out of air and things don't go so well.”

After that training exercise, the group of firefighters reviewed what went wrong and what went right to make sure when a real fire happens, every firefighter comes out alive.

For more information, contact Lallis & Higgins Insurance.

Fox 25 Boston

It’s Not Just a Quote, It’s a Relationship

Shopping for insurance? You may think you’re simply looking for an insurance policy. But, perhaps, what you’re really looking for isn’t a “what” but a “who” - someone you can trust to guide you through all of the insurance choices, rather than trying to make sense of all the options yourself online.

That someone is an insurance agent, but there are countless agents out there – not to mention different types. So, how do you choose? Use these four steps to select the type of agent that’s right for you and find one you want to work with to purchase, review and manage your policies on an ongoing basis.

1. Know the Types of Insurance Agents

Some insurance agents represent only one insurance company. These are known as direct, or captive, agents, and they are direct employees of the company whose policies they sell. Any policy he or she sells will be from that company, and that company only.

An independent insurance agent, on the other hand, represents a number of different carriers, oftentimes as an employee of a local agency in your community. An independent agent isn’t restricted by what any one carrier offers, so he or she has more flexibility to help you explore a broader range of options.

2. Get Recommendations

The best way to predict what kind of service you can expect from an agent is to find out what kind of service he or she has provided in the past. Ask for recommendations from family, friends and neighbors, and then ask for more details.

• What does your friend or co-worker like about that agent?
• Have there been any problems or complications?
• Was the agent helpful, attentive and friendly?
• Was the agent knowledgeable, answering all questions satisfactorily?
• Most importantly, were the agent and the company he or she represents dependable, timely and supportive through the process of resolving a claim?

3. Research the Agency and Agent
Once you have a few recommendations in hand, it’s time to research your prospective agents, the agencies where they work and the companies they represent. Here are a few places to check:

• The website of your state’s Department of Insurance. Here you can likely see any complaints, investigations or disciplinary actions against agents, as well as ensure they have an active license. You can likely look up information about various carriers, as well.
• Local chambers of commerce or the Better Business Bureau.
• The agency’s own website, which should outline their services, the types of insurance they offer and the carriers they represent. • Online reviews for the agency.

4. Interview the Agent

Your research paid off, leading you to an agent in your area who seems like a good match for you. Now’s the time to ask some tough questions to be sure.

Tell the agent what you’d like to insure, and ask how he or she would be able to help. If you or a friend has gone through difficult insurance experiences before, ask how he or she would deal with a similar situation.

Ask if they get involved in the claims process, or ask any of those other questions you’ve always wondered about insurance. Pay attention to whether the agent offers specific examples or speaks in generalities, as well as to whether he or she is talking about insurance in a way that makes sense to you. You can also ask for references.

A prospective agent may be able to give you a quote at this point. But, what you really want is a sense of how well you could work with this person. Is this someone with whom you can communicate easily and in whom you can place your trust?

Because, when you’re shopping for an insurance agent, you’re not just looking for an attractive quote. You’re looking for a good working relationship that can endure through new cars or homes, fender benders, storm damage and much more.

For more information, contact Lallis & Higgins Insurance.

Safeco

If your secondary home or vacation home has a mortgage, your lender may require homeowners insurance just as it would for your primary residence. However, there may be additional stipulations in the policy because you only reside in the home for part of the year. Like with your primary homeowners insurance, it is important to review the policy for your secondary home every year and keep an up-to-date home inventory in case you would need to file a claim following a loss.

Even if you do not plan to spend time at your vacation home, you might consider maintaining coverage for the structure, contents and your liability in the event that someone gets injured on your property while you're not there.

When reviewing your vacation home insurance policy, remember the insurance requirements in another area may be different than where your primary home is located. Talk with an insurance agent if you think you might need flood insurance or additional coverage against wind, hurricanes or earthquakes.

"Named Perils" Coverage

Homeowners insurance for a secondary home can have significantly different terms than your primary home's insurance policy. How a secondary property is used and how often it is occupied during the year determines the type of coverage. Insurance for these properties is typically written on a "named perils" basis.

A "named perils" policy covers losses for events specifically outlined in the policy, such as lightning, explosion, theft or smoke damage.

Homeowners policies also typically provide liability coverage in case a guest is injured on your property or if you are responsible for damage to another's property. Your homeowners policy might also include medical payments coverage that would pay an injured person's medical bills to a stated limit, regardless of negligence.

Additional Options for Secondary Home Policies

There are several ways to further protect a vacation home that you may want to consider. They include:

• General contents coverage for loss or damage to belongings permanently kept at the vacation home.
• Sewer back-up coverage or flood insurance because water damage can be even more extensive in a home when you aren't there to either stop the flow of water or quickly remove water-damaged property. Be aware that flood insurance has a 30-day waiting period.
• Out buildings might have a limited amount of coverage in a secondary homeowners policy. Review your insurance policy to make sure you are protected against damage to detached buildings - such as garages, sheds and boathouses - and their contents.
• Insurance companies might require homes with swimming pools to have special safety measures. These could include the installation of fencing, a pool cover or a locked gate. An insurance company could deny coverage or cancel your policy if you do not follow the policy safety guidelines or do not inform the company that you have a pool.

Umbrella Policies

If you have an umbrella policy in place to provide excess liability coverage, the policy should automatically extend to any new property you purchase or rent. To be sure the umbrella meets your liability expectations and that there are no exclusions in the policy that might be triggered by the new property, read your policy before making your down payment.

Waterfront Vacation Homes

The personal property coverage of your primary or secondary homeowners policy might cover a small boat for $1,500 or less in physical damage. However, coverage for your liability risk is limited. Insurers generally provide liability insurance on small sailboats (26 feet or less) and powerboats with small motors (50 hp for inboard and inboard/outboard and 25 hp for outboard motors). However, a boat of any significant size will be excluded from your homeowners policy for both property and liability coverage. Read your homeowners policy carefully before you put your boat in the water.

Personal watercraft will likely require a separate boat insurance policy. You might be able to purchase this policy from your homeowners insurer or you might choose to use an insurer that specializes in boat insurance. Get quotes and compare policies from several different places to get the best deal.

Some important questions to answer before you head out on the water:

• Are you insured if someone other than yourself is operating your boat or personal watercraft?
• Are there legal age restrictions on who may operate the boat or personal watercraft?
• Is towing skiers or inner tubes covered by your policy?

Renting Your Vacation Home to Others

If you hope to make a little extra cash this summer renting your vacation home when you aren't there, first review your insurance policy. It may be wise to purchase additional liability, bodily injury and medical payment insurance to cover your risk when you or your family is not in the home.

Also be aware that your homeowners coverage might not extend to damage caused by a renter and/or their guests. Read the policy closely to ensure your coverage meets your expectation.

For more information on insuring your vacation home or boat this summer, contact Lallis & Higgins.

naic.org

There's nothing quite as exhilarating as boating: the wind in your hair, the thrum of the wake against the hull, the snap of the mainsail and the buzz of an outbound fishing line.

In the U.S. 75 million people participate in recreational boating.

A wide range of property and casualty companies offer boat insurance. It's easy to feel over your head when it comes to obtaining the right insurance for your boat. That's because boats are a bit of an odd duck in the insurance world: Insuring a runabout has much in common with buying auto insurance while insuring a million-dollar yacht more closely resembles buying home insurance for a small house.

Here are the answer to six important questions about boat insurance.

Why do I need boat insurance?

If you're new to boating, you may be under the impression that your homeowners insurance will magically stretch to cover your boat. Sadly, in most cases it won't.

Many homeowners policies will have a minimal amount of coverage for really small boats with either no engine or a very small engine, like a sailboat. But if you're buying a $10,000 or $20,000 boat, your homeowners policy is not going to cover you for what you need.

Boats are unique and require their own policy.

Your boat has nothing to do with your home, any more than your car can be covered under your homeowners insurance. Your home isn't mobile. Your boat, like your car, can go anywhere, so it requires a separate policy.

That said, you may save money by bundling your boat policy with your home or auto insurance.

There's often a cross-sell discount.

How does it differ from home or auto insurance?

In some ways, boat insurance is a mash-up of home and auto insurance.

Like home insurance, a boat policy covers you for liability if someone is injured on your craft and gives you the choice between replacement cost or cash value in a total loss.

Like auto insurance, boat coverage typically includes coverage for bodily injury that your boat inflicts on others, property damage your boat inflicts on docks and other boats, and physical damage to your boat should you hit something or run aground. You can also purchase comprehensive coverage against theft, vandalism, fire and flood, personal property coverage for your fishing gear, uninsured boater insurance and even roadside assistance in the event you need a tow.

Unlike home and auto, a boat policy may allow you to "lay up" or suspend coverage for specified periods when you're not using the boat.

Sometimes boaters aren't aware of that and (on) some nice day in November, they take the boat out for the day and have an unfortunate incident, only to find out that their boat was to be out of the water from Oct. 15 to April 1.

How do 'agreed value' and 'market value' policies differ?

A boat is a lot like a car. The moment you drive it off the lot, it starts depreciating.

To help boaters save money on insuring older vessels, insurers offer the option of "agreed value" (think sticker price) versus "market value" (think depreciation) in the case of a total loss.

With agreed value, the insured and insurer agree on the value of the boat upfront. If something happens to the boat, you're going to get paid up to the agreed value.

With market value, the boat depreciates; so if the boat is destroyed, you're going to get enough money to replace the boat's (current) value. If you bought the boat in 2005, you're not going to get enough money to buy a 2011 model; you're going to get enough to buy a 2005 model.

Most insurers, offer a steep discount (25 percent) with market value policies.

Owners of newer boats typically go with agreed value. As the boat ages and the value depreciates, and they don't have a loan on the boat, you'll see them switch to cash value.

Is my boat covered when it's out of the water?

Strangely enough, yes -- but not by your boat policy.

When the boat is attached to your car or truck, you are covered by your auto policy should you back into somebody. Anytime you're trailering something, the car policy overrides.

The bad news is it's covered solely by your auto policy, and only to the limits contained therein.

A yacht policy will not pay for loss of life, bodily injury or property damage that occurs when the insured property is being transported on land.

Your homeowners insurance may provide limited coverage if the boat is damaged while parked on your property, but it may not stretch to cover stolen contents or vandalism.

To protect your boat (and your assets) from terrestrial liability choose an umbrella policy.

If someone gets injured, the umbrella policy would come on top of your auto and homeowners and cover you to the additional limits. If you have a boat, it's not only one more asset but it's another opportunity for risk. You want to make sure you're covered.

Is my boat covered everywhere?

Novice boaters may be unaware of the navigational limits on their boat insurance policy.

Most policies contain a navigational warranty. It's usually the inland waters of the U.S. and Canada or the coastal waters of the U.S. and Canada for smaller boats up to 26 feet. For larger craft, there are 22 territories that are defined by geographical points.

Be sure your policy provides coverage where you want to roam. It may exclude certain areas for political or security reasons (think Somali pirates).

If you want to do a one-time trip, we provide the ability for the one-time trip, but you need to check in with your agent to make sure you have the coverage provided.

Some policies offer an optional endorsement that helps pay to move your boat out of harm's way when a named storm approaches. Travelers pays 50 percent of the cost to move or haul your boat up to $1,000 per occurrence and $2,000 per policy term.

How can I save money on boat insurance?

Now that you know the basics of boat insurance, let's dig for some savings.

Get specific. Don't buy a yacht policy if you own a dinghy. BoatInsurance.org lists 15 varieties of boat insurance, including powerboat, sailboat, houseboat, bass boat, wooden boat, fishing boat, pontoon boat, personal watercraft and so on, each with its own price structure and set of features. Shop around.

Go all-in on safety features. Many boat insurance underwriters offer policy discounts for gadgets that protect their investment, such as wireless auto tethers that act as an engine kill switch should the skipper or any of the passengers fall overboard.

Take a boating class. A trained boater is a safer boater. Contact your agent for discount-qualifying classes in your area. One class can save you 5 percent or more on your policy, year after boating year.

Extend your lay-up period. Insurers are willing to cut your premium during those days or months when you're not using your boat.

For more information on boat insurance, contact Lallis & Higgins Insurance.

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