Recently in Homeowners Category

Keeping a home inventory has always been a good idea for insurance purposes, but now technology is making it easier than ever.

If you are the owner and iPad or iPhone, you may want to check out the free Know Your Stuff App from the Insurance Information Institute (III). If you do not own either of these devices, there is also an online web-based version at the Know Your Stuff website, a free tool to help you keep an up to date list of your home inventory.

The application allows you to set up your belongings by room, making lists of everything you own so you have a good replacement record in the event of a loss or a disaster. Furthermore, you can upload photographs of your belongings, scanned receipts or appraisal forms, and generate several types of reports in case you need to file a claim. All of this information is web-based, very handy to access from anywhere in case you need to evacuate your home in a hurry. This way your home inventory is always secure and easily accessible when you need it most.

In addition to simplifying the process of filing a claim, keeping a home inventory will also help to ensure that you purchase the right amount of insurance. III says, "Having an accurate list of your possessions allows you to have a more productive conversation with your insurance agent or company representative when making decisions about homeowners or renters insurance coverage."

For comparative purposes, you might also check out the Home Inventory app from the National Association of Insurance Commissioners. It's called myHOME Scr.APP.book and it's available for both iPhones and Android devices. Also, see another previous post about home inventory apps.

Insurers are still tallying up storm-related losses for the Halloween storm that has been called the freakiest ever. It's thought that when the final price tag comes in, losses will fall between $1 and $3 billion.

If you remained unscathed from this storm then you are one of the lucky ones, but don't count on your luck holding out in the future. Winter storms cause more than one billion dollars in damage annually and are the third largest cause of catastrophe losses. The Farmer's Almanac predicts the following about New England weather: "...the upcoming winter will be the equivalent of a cold slap in the face, as we forecast much colder-than-normal temperatures."

All this should serve as a reminder that it's important to take the necessary precautions to prevent unnecessary damage to your home. The Insurance Information Institute has posted a list of helpful tips to Winter-Proof Your House. We've reprinted a summary of their recommended preventative measures here:

Outside Your Home

• Clean out gutters
• Install gutter guards
• Trim trees and remove dead branches
• Repair steps and handrails
• Seal cracks in holes in outside walls and foundations.

Inside Your Home

• Keep the house warm.
• Add extra insulation to attics, basements and crawl spaces.
• Have the heating system serviced.
• Check pipes.
• Install an emergency pressure release valve in your plumbing system.
• Make sure that smoke and fire alarms are working properly.
• Consider installing a carbon monoxide detector.
• Learn how to shut the water off and know where your pipes are located.
• Hire a licensed contractor to look for structural damage.

While all these tips are helpful the most important thing is to review your insurance coverage to make sure you are adequately covered. Remember, flood insurance is not included in standard homeowners or renters insurance policies. Don't wait to learn your coverage limits until after something happens -- it may make for unpleasant surprises -- talk to your insurance agent today!

The National Association of Insurance Commissioners offers a wealth of insurance information at Insure U. When shopping for homeowners, here are some questions that NAIC suggests that you ask your agent:

• Are the agent and the insurance company licensed by my state insurance department? For how long? (Your state insurance department can confirm the answers to these questions.)
• How can I find out the claims history of the home before I buy it?
• If I submit a claim, how will it affect my premium when I renew the policy?
• What discounts are available?
• What does the policy cover? What doesn't it cover? What are the limits to the coverages?
• How much coverage for my personal property do I need?
• Should I buy flood insurance or earthquake coverage?
• How will my credit history affect my premium?

Learn more at A Consumer's Quick Guide to Home Insurance (PDF)

The U.S. Small Business Administration reports that there are 29.6 million small businesses in the U.S. of which 52% are home-based -- and this trend is only expected to increase, according to Network Solutions Small Business Index research. We even have a new word for this vital rising demographic: "homepreneurs" -- but some home-based small business owners make the dangerous assumption that their homeowners insurance will cover their business needs. In fact, it's critical to consult with your insurance rep to understand the limits of your homeowner's insurance in regard to your home business.

For example, many homeowners policies provide a maximum of $2,500 coverage for business equipment (computers, fax machines, etc.) in the home -- while your actual investment may far exceed this figure, so you may need business property insurance to adequately cover equipment and any inventory. Additionally, depending on the nature of your business, you may require liability insurance: "If you are sued because of your home-based business activities -- the company that hired you as a consultant believes your advice was dead wrong; the computer equipment you "fixed" doesn't work; the cookies you baked made someone ill -- your homeowners policy won't protect you." [- How to Protect Your In-home Business].

Finally, you may want to insure against loss of income in the case of fire or natural disaster.

If you are like millions of other home entrepreneurs, your business is too important to risk with sup-optimal coverage; here are some items to consider when consulting with your agent: 

• Equipment and furniture
• Inventory
• Business items belonging to others in your care
• Accounts receivable
• Important records, documents and reference material
  
• Electronic data
• Liability for personal injury, products, services and contractual obligations.
• Auto -- be sure your existing policy covers all business uses
  

If you are thinking of getting a dog, or even if you already have one, it's critical as either a homeowner or renter to check with your insurance agent to establish or review your liability coverage for dog bites and other canine-related injuries. The Centers for Disease Control and Prevention report that every year more than 4.7 million people are bitten by dogs, and last year, the average cost of a dog bite claim was $26,166, according to the Insurance Information Institute -- and costs continue to rise due to growing medical costs and larger settlements.

Most states have strict statutes holding owners directly responsible for injuries or damage inflicted by their dogs (you can check your state's liability statutes here), and some insurance policies exclude dog breeds that are seen as particularly aggressive (see the Top 7 Dangerous Dog Breeds), so in addition to evaluating your ability to care for and properly train a dog, it's vital to make sure you are covered by your policy, and take steps to minimize any risk of dog bite or other injury.

Tips for dog owners seeking homeowner/renter's coverage for their dog(s):

• Enroll your dog in obedience classes and work on helping the dog earn a diploma or certification


• Schedule refresher classes for dogs who have already been trained, but are not as attentive as they once were!


• Neuter male dogs to reduce dominance and aggression


• Always keep your dogs on a leash and under control during walks


• If your dog is allowed outside on your property, be sure the area is adequately fenced and protected


• Never leave young children alone with a dog, and always teach them how to behave safely around dogs


• If strangers make your dog nervous, be sure to separate them from new visitors in your home


• To keep canine frustration in check, always make sure your dog is properly exercised, and don't allow them to be exposed to teasing or taunting

Finally, if you are thinking of getting a dog primarily for home protection, be aware that money spent on increased security measures will ultimately be easier, more reliable, less expensive -- and kinder to the animal.

Summer vacation is always fun but there are some steps that you should take ensure that your home is protected.

1. Secure your property. Check to be sure all doors and windows are locked. Bring in valuables and any outside furniture that might be damaged in a heavy storm. If you have an alarm system, motion detectors, or outside lighting, be sure they are set for while you are away.

2. Avoid giving signals that you are away. Try to make things look as normal as they would if you were at home. Cancel mail and newspapers so they don't pile up. Use timers to turn on lights at night. Arrange to have grass mowed.

3. Be cautious with sharing on social networks. Unless your friends list is strictly limited to family and a few trusted friends, don't announce your travel plans on Facebook, Twitter, or other social media. Be careful about checking in with FourSquare or other services that give your location away. Be cautious about posting and sharing real-time updates and photos that telegraph the information that your home is empty.

4. Ask a neighbor or relative to keep an eye on your property while you are away. Leave contact information and a key for emergencies. A trusted neighbor might even leave a bag of trash in front of your house on trash day or occasionally park in your driveway.

5. Check your home and auto insurance before you go away to ensure that your coverage is up to date and that you have adequate coverage. Know what policies you have and with what insurers. Make sure that you bring your insurance agent's telephone number in case you need it while away.

Here are some other good tips from experts:
Tips to Secure Your Home While on Vacation
Don't Leave Your Home Vulnerable to Break-in, Flooding While on Vacation

If you own a pool or a spa, you need to see this excellent video from the National Drowning Prevention Alliance. It takes a three-step approach to minimizing the risks associated with pools and spas: steps for making a safer water environment; steps to ensure that your kids are safer; and steps to ensure that you are prepared should an emergency occur.

Our last post dealt with various tools and technologies for keeping home inventories, and we just learned about a free new app for iPhones. The National Association of Insurance Commissioners (NAIC) have introduced myHOME Scr.APP.book, a tool that lets you capture images, descriptions, bar codes and serial numbers. It looks great. You can see a brief 2 minute video demo below and you can get tips from NAIC's InsureU on how to create a home inventory. And if you don't have an iPhone, there's always the low-tech method, which works too. NAIC offers a Home inventory checklist.

Also, be sure to check our our last blog post for other alternatives.

Tech reviewer Farhad Manjoo of The New York Times recently ran a roundup of apps for home inventories, along with his commentary of the pros and the cons for each system. Manjoo comes from a perspective of organizing and managing possessions, and inventorying as a potential first step in simplifying your life. For those of us in the insurance world, there's another practical purpose to home inventories that can be summed up in two words: Risk management. Should you suffer theft, fire or some other type of loss, having a record of your valuables will help you - whether you need to file a claim, apply for disaster relief, or document losses for tax purposes.

Manjoo reviews several apps for both mobile phones and PCs, with options running from $4.99 to $50. Some have useful features, such as warranty trackers and the ability to upload and annotate photos from your phone. But most require a fair amount of work entering the details manually. One Mac program that he found has bar code scanning ability which simplifies the process, at least for your new possessions.

Whatever system you use, it's important to keep things current, as James Lynch points out in his post What's in your house? at the Insurance Information Institute's blog Terms + Conditions. And he reminds us about Know Your Stuff, a free online home inventory service from III. The following video offers a good introduction.

The Insurance Information Institute reports that there is a strong potential for a nasty flood season. While the areas at highest risk are in the Upper Midwest, The national Weather Service says that parts of southern New England, New York and Pennsylvania are also at risk. And NWS reminds us that while snow runoff can increase the risk in some areas in the spring, flooding is a coast to coast threat to the United States and its territories in all months of the year. At floodsmart.gov, you can check your geographical risk via Flood Insurance Rate Maps.

Flood preparation for businesses
The National Association of Insurance Commissioners has issued a checklist on Disaster Planning for Small Businesses, which covers key steps for preparation, as well as an overview of related insurance issues that you need to consider.

NAIC also issues a reminder that flood is not a covered peril in a standard business property insurance policy. They note that flood coverage can be purchased from the National Flood Insurance Program (NFIP), administered by FEMA, but there is usually a 30-day waiting period for a policy to go into force. They suggest checking with your insurance agent if the flood insurance property limits from the NFIP are inadequate to cover your business.

AgilityRecovery, specialists in disaster recovery, says that your business is more likely to flood than burn down, so they offer this helpful Business Flood Preparedness Checklist.

Flood preparation for homeowners
The Insurance Information Institute offers a useful information on preparing for a flood and recovering from a flood. The site also offers a variety of other helpful resources related to disaster preparedness.

Floodsmart.gov is the official site of the National Flood Insurance Program. You can learn about obtaining residential coverage and what it covers. The site also offers advice on flood recovery and filing claims.

Additional flood resources
Flood Safety - resources from NOAA
Flood recovery resources and insurance issues
Consumer alert: don't buy a flood-damaged car
Does homeowners insurance cover a flooded basement?