Insurance Tips

Static Electricity at the Pump

All motorists should be aware of the potential dangers when fueling a vehicle in cold, dry weather. It is estimated that there are over 300 incidents each year. While filling up their vehicles with gasoline, many motorists return to the warmth and comfort of their vehicles, totally unaware that they are taking a big risk. When they slide out of their car, a static charge is generated by sliding across the car seat. Then, when they touch the nozzle, a spark can ignite the fuel vapors. Static charge build-up is enhanced when the air is dry.

Experts' advice about refueling vehicles:

Turn off your engine while refueling.
Do not overfill or top off your fuel tank. Allow automatic shut-off to do its job.
Never jam something into the pump handle to hold it open when fueling.
Never get back into your car when refueling. If you have to re-enter the car for any reason, make sure to discharge the static electricity buildup when you get out by touching the outside metal portion of your vehicle, away from the filling point, before attempting to remove the pump nozzle.

Terrorism Bill

Effective November 26, 2002, under most commercial policies, losses caused by certified acts of terrorism would be partially reimbursed by the U.S. Government Dept. of Treasury under a formula established by federal law. Under this formula, the U.S. pays 90% of covered terrorism losses exceeding the statutorily established deductible paid by the insurance company providing the coverage.

How It Works

The Secretary of the Treasury, Attorney General, and Secretary of State must determine that an event was an act of terrorism. The total amount of the loss must exceed $5 million. An insurance company has a large deductible before the government steps in to help. Transitioning over the first 3 years, the deductible becomes 15% of the company's direct earned premium. A company with direct earned premium of $500 million would have a deductible of $75 million.

The Treasury must be repaid amounts it paid for losses up to $10 billion in the first year of the program, going to $15 billion in the third year. Terrorism coverage cannot be denied a commercial policyholder unless agreed to in writing. While this legislation does nothing for personal insurance, it does provide a backstop that will enable carriers, especially smaller carriers, to continue to provide a competitive market for terrorism coverage.

Mold and Its Impact on Insurance Rates

One thing is certain this year: rates are going up. Increased claims costs, terrorism and a poorly-performing stock market are driving rates upward. In addition, mold has become a major issue confronting insurance companies, who never intended to sell a product to cover such an event.

Insurers sell a promise backed up by a contract and an ever growing number of insurance-related judgments and legislation. The playing field is always changing, and this is what is happening with the issue surrounding damage done by mold.

Increasingly, the public is looking to insurance companies to provide coverage for any misfortune by which they are confronted. One main insurance principle is that the occurrence be sudden, accidental, and unforeseen by the policyholder. However, another insurance principle is the ability to predict, with some degree of accuracy, potential losses. This is the only way to determine whether rates charged are adequate to cover incoming and expected claims, overhead expenses, and maintain a surplus fund to assure claims-paying abilities in catastrophes.

Mold is not only unpredictable, but coverage interpretations differ, not only from policy to policy, but also region to region. It is very difficult to determine the cause of mold: leaking pipes, too much moisture in the air, inferior construction material or techniques. It is difficult to determine if the loss will require minor or major remedies. How is it possible to compare this type of exposure to a fire or tornado? Also, it cannot be debated that a fire or tornado was the result of poor maintenance, as is the case with mold.

There is no question that this discussion will continue and that rates will rise to meet the demands for ever-expanding coverage. We have seen one of the country’s largest insurer of homes place a moratorium on writing new homeowner business in some states. Another has refused to write new homeowner business in Texas because of the issue of mold.

Storm Loss Considerations

Renters and homeowners policies protect against windstorm losses and damage caused by associated hail and tornados. Renters have coverage for their contents, such as furniture and clothing, while the typical homeowner insurance policy will also include the dwelling structure and other structures on the insured premises.

Not all policies are the same. One of the most important things a policyholder can do in the event of a major loss is to be ready ahead of time. Experts advise that every homeowner and renter should maintain a household inventory to make settling a loss easier on the policyholder. Having to remember all of the personal items you owned at the time of a traumatic event is nearly impossible and could lead to not being reimbursed properly. Here are a few items you should consider:

Contact your insurance agent as soon as possible. Be aware, in the event of a major catastrophe, there are many people seeking help at the same time.
Closely inspect your property and cars for damage.
Secure your property from further damage or theft and save any related receipts, since most insurers will reimburse you for these expenses.
Seek temporary housing if necessary. Most policies provide coverage for temporary living expenses when there is a loss from a covered peril.
Be aware there are always those who will try to profit from the losses of others. Carefully check the background of contractors and others who promise cheap repairs.

Thinking About Annuities?

Annuities are a pretty simple product. An annuity is a contract providing for the systematic liquidation of principal and interest in the form of a series of payments for a fixed period, or over the life of the annuitant. In exchange for cash, the insurance company agrees to pay someone (typically the annuitant) a stipulated sum (the annuity) periodically. Annuities come in different forms. A life annuity promises payment as long as the insured is alive but does not provide a refund at the annuitant's death.

Two common annuity types are immediate and deferred annuities. The immediate annuity starts paying benefits immediately, while the deferred annuity does not pay benefits until the annuitant chooses to receive those benefits. This is the type most usually used to fund IRA accounts.

Some advantages to the use of annuities are:

Safety of principal
Tax-deferred accumulation of capital
When guaranteed minimum returns are desired
Retirement income
To avoid probate and pass a large sum of money to an heir
When a person wants to be free of investing

Call us today to discuss how we might best serve your needs.

Why Are Trampolines So Dangerous?

Most trampolines are set up 4-5 feet above the ground. Thus, a child jumping 12 feet high on the trampoline actually falls 17 feet to the ground. This is like jumping out a two story window, which of course no parent wants to see happen.

Think about children and swimming pools. How long does it take a child to drown when no one is watching? It takes even less time for a trampoline injury. Trampolines can cause severe injury in children. Most serious injuries are to the head, neck, and back, usually while performing a flip or somersault.

Improper use of trampolines can result in frequent, serious, and sometimes catastrophic injuries.

Some of the dos and don'ts of using trampolines:

No double bouncing - allow only one person to jump at a time.

No somersaulting rules for beginners and intermediate level participants.

No sitting on the edge while waiting your turn.

Never put a trampoline on a hard surface.

Never jump on a trampoline when it is wet.

Do not use a ladder with a trampoline; it provides unsupervised access by small children.

Never jump off the trampoline; always climb off.

Don't allow trampoline to be used without shock-absorbing pads that completely cover the springs, hooks, and frame.

Make sure the hooks on the end of the springs are pointing down to avoid injury.

PROBLEMS WITH SAFETY NETS:

The net encourages a false sense of security in jumpers giving the impression they can try anything because they can't fall off.

Contact us for a copy of additional information provided by the American Association of Orthopedic Surgeons and the U.S. Consumer Product Safety Commission.

Vacation Tips for the Prepared Traveler

Vacation means more than packing your luggage and hitting the open road. Some common sense can go a long way to helping you have a fun and safe vacation. Have you ever had that uneasy feeling when; somewhere along your route you wonder if you turned off the coffee maker? Some simple planning can help calm those uneasy travel jitters. Think about what you are leaving at home and the special care that is required.

Use deadbolts on all of your exterior doors.
Have mail and newspapers picked up daily.
Ask a neighbor to park his/her car in your driveway.
Leave your blinds and curtains open as normal.
Consider having a neighbor set out trash in front of your house.
Put a couple of interior lamps on timers to come on at normal times.
Leave your itinerary and phone numbers with a neighbor.
Turn off the ringer on your phones.
Make sure you have sufficient outdoor lighting.
Leave the NAME and PHONE NUMBER of your INSURANCE AGENT with a neighbor.
It is probably a good idea to check your homeowner policy. Are there any restrictions regarding how long you can be away from home? Are the items you are taking on your trip covered adequately? If you are traveling outside of the United States, there might be special concerns about coverage. Give us a call anytime, 937-836-5251, to discuss your trip and any coverage extensions you might need.

Traveling North or South of the Border?

Unlike simply having us issue you a special ID card when traveling to Canada, travel to Mexico complicates things a bit. When crossing the border into Mexico, you must have insurance coverage written by a Mexican agency. Any other insurance will not be recognized.

If you are traveling to Mexico and are a member of AAA, you might be able to buy coverage through your local AAA office.

Canada makes things much simpler. We can issue you a Canada Non-Resident Motor Vehicle Liability Insurance Card. Canadian law requires that you have this card with you at all times.

Auto Med Pay Coverage

As part of your auto coverage, we include medical payments coverage. Many of you don't understand how this coverage applies. Instead, your main concern is protecting your car and your financial situation if you should be responsible for causing property damage or bodily injury to someone else.

Medical payments coverage is designed to provide for the expenses incurred by an insured for necessary medical and funeral services because of bodily injury that is caused by an accident and incurred within one year from the date of the accident. Insured is defined as the named insured, spouse or any family member. Also included is any person, but only while occupying the named insured's covered auto. For the named insured and family members, the medical payments coverage also extends to their bodily injury while a passenger in someone else's car or while a pedestrian, if struck by a motor vehicle designed for use mainly on public roads.

Dangers of Eating and Driving

Drivers beware: that uncovered cup of coffee in your cup holder could kill you. All that delicious "road food" can cause distractions and nearly 25% of all automobile accidents that cause injury or fatalities are caused by distracted drivers, according to the National Highway Traffic Safety Administration.

Surveys suggest that more than 10% of all meals in America are eaten in the car and more than half of all fast food is sold in the drive-thru lane. As many as 69% of motorists enjoy meals on wheels by some survey results, a trend that fast food restaurants and convenience stores have duly noted.

Please remember to use common sense when eating on the road and pass this advice on to younger, inexperienced drivers. It could save a life.

Ten Most Dangerous Foods to Eat While Driving *

Coffee

Hot Soups

Tacos

Chili

Juicy Hamburgers

Any Barbecued Food

Fried Chicken

Jelly and Cream-filled Doughnuts

Soft Drinks

Chocolate

Identity Theft - King of Consumer Fraud

Use these precautions to dramatically reduce your chances of becoming an identity theft victim:

Don't give out your checking account, credit card or Social Security numbers unless you initiate the transaction and are positive with whom you are dealing.
Tear up or shred all credit card offers before throwing them away.
Report lost checks or credit cards immediately.
Don't put outgoing mail in your own mailbox. Use a secure postal mailbox.
Guard your ATM personal identification number, keeping it separate from your card.
Periodically contact the major credit bureaus to review your credit files.
You can call Equifax 800-685-1111, Experian 888-397-3742, or TransUnion 800-916-8800.

Good Advice: Place the contents of your wallet on a photocopy machine. Copy both sides of each license, credit card, etc. Keep the photocopy in a safe place. By doing this you will know what you had in your wallet plus all the account numbers and phone numbers to call and cancel.

Would The Real You Please Step Forward?

With the approaching holidays, over 50% of all households will be shopping online. Each time we provide personal data for online purchases we put our cards, social security, credit, etc. on the open market. Should that information be stolen, it can create a real crisis, making one ask "Are you sure you're you?" or even more accurately, "Are you sure someone else isn't you?" Here are some things to consider when surfing the web:

Before actually conducting a purchase online, log onto www.truste.org. This site is the closest thing a web shopper has to a privacy watchdog. If the site you are thinking of using has this site's seal of approval, you may be able to shop more safely.
Manage your cookies. Some sites will plant a cookie on your hard drive. A cookie has a digital ID tag that has registration and password information that allows you to sign on to their site without having to repeatedly enter sign-on information. That doesn't sound too bad in and of itself, but there is nothing to stop a web site from selling your cookie and sharing your password with another online marketer.
If you want to find out just how easy it is for someone to get sensitive information about you, log onto www.privacy.net In a matter of seconds, the site will report things such as your computer user name, your IP address, the model and serial number of your computer as well as other personal information.

Buxton Insurance Agency 21 West Wenger Road, Englewood, OH 45322 (937) 836-5251

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