Additional Policies

Additional Policies

Get Coverage You Need. Learn more about additional policies you may need below.

Earthquake

According to the United States Geological Survey (USGS), eighty-one percent of the world’s largest earthquakes have occurred in what is known as the circum-Pacific ”Ring of Fire”, which includes America’s West Coast up through southern Alaska. Not surprisingly, the USGS notes that Alaska and California have more earthquakes than any other states in the country.

There are two common types of earthquake coverage for homeowners:
- Comprehensive policies. Covers the home, the contents of a home, loss of use and building code upgrades. It also covers other structures such as the garage or a backyard shed.
- Standard/mini policies. Protects your home, but usually have more limited coverage for contents, loss of use, other structures and building code upgrades.
Deductibles typically run from 5 to 15 percent of your home’s replacement value. Cost is most affected by your home’s proximity to a known earthquake fault line, but premiums can also be influenced by coverage amount, deductibles, your home’s age and its construction materials.

Flood

If you live in a flood-prone area, flood insurance can cover flood or mudslide damage to your property. Federal law prohibits mortgage lenders from offering loans on homes located in a designated flood zone unless the consumer can show proof that they have secured the appropriate limit of flood coverage provided through the National Flood Insurance Program (NFIP).

According to the American Red Cross, flooding and associated debris flow causes as much as 90 percent of damage related to natural disasters (not including droughts)1. In general, floods can occur anywhere and are four times more likely to occur than fires, according to the insurance-rating and information agency A.M. Best Company, Inc. While A.M. Best notes that people living in high-hazard flood areas have a 26 percent chance of experiencing a flood over any 30-year period, 35 percent of flood claims each year are paid on property outside those zones.

Flood insurance typically covers damage to a building — including support systems and foundation. It can also cover direct physical losses and damage caused by floods, including mudslides.

Coverage may vary depending on the contents of a home. In addition, exclusions and limitations may also apply.

The Facts

Taken from: National Flood Insurance Program2
- Floods and flash floods happen in all 50 states.
- Hurricanes, winter storms and snow melt are common (but often over looked) causes of flooding.
- Basic homeowners insurance usually does not cover flood damage.
- Federal disaster assistance offers loans to help cover flood damage, not to compensate you for losses. Even then, those loans are only available if the President formally declares a disaster.
- Less than 10% of all weather-related emergencies in the United States are declared federal disaster areas.2
There are generally three policy types available:
- Home – for single- and multi-family homes.
- General Property – for apartments and businesses.
- Residential Condominium Building Association Policy – for condos.
Coverage may vary depending on the contents of a home; exclusions and limitations may apply to most policies.

Protect Yourself from Flood Damage
- It takes 30 days after purchase for a flood policy to take effect, so make sure you’re covered before flood waters start to rise.
- If your washer and dryer are in the basement, elevate them on bricks or pressure-treated lumber at least 12 inches above the projected flood elevation.
- Place your furnace and water heater on bricks or concrete at least 12 inches above the projected flood elevation.
- Buy and install a sump pump with back-up power.
- For floor drains, toilets and other sewer connections, install interior or exterior back flow valves or float plugs to prevent flood waters from entering.
1 (2004). Preparation Urged for Potential Spring Flooding. Retrieved June 15, 2007, from the American Red Cross. Web site: http://www.redcross.org/article/0,1072,0_157_2350,00.html

2 (2007). Flood Smart . Retrieved June 15, 2007, from FEMA. Web site: http://www.floodsmart.gov

Hurricane

If your home is located in a coastal state – it may not be protected against damage caused by wind or named hurricanes with basic homeowners insurance. Like most, you may consider your home your largest asset and if so, consider adding hurricane coverage to protect it during the hurricane season. Update your insurance regularly to include improvements, major purchases and increased rebuilding costs due to devastation from previous storms and increased global demand.
Be prepared. The following are some guidelines in case a hurricane strikes in your area:

Before the hurricane decide whether you will:
- Go to a designated shelter.
- Go to a safer place inland.
- Ride out the storm in your home – only if local authorities permit you to stay.
Make sure your relatives know where you will be and follow the following guidelines:
- Plan an escape route.
- Stock plywood and materials you may need to board up windows before you leave.
- Move garbage cans and other large objects inside the house or garage.
- Secure boats and cars left behind.
- Shut off utilities.
During the hurricane:
- If you go to a shelter or inland, go straight there.
- If you stay home, stay indoors and away from windows and glass doors. Get on the opposite side of the house from the wind.
Umbrella

Do you often entertain guests in your home? Do you have a swimming pool or children who have friends over to play? Concerned about protecting your assets in the event that you (or a member of your household) accidentally injure another person or damage someone else’s property? If you answered “yes” to even one of these questions, you may want to consider a personal umbrella liability insurance policy.

What is an Umbrella Policy?

Umbrella Coverage is designed to provide added liability protection above and beyond the limits of your primary Auto and Homeowners policies. This extra layer of protection is for anyone who has assets that might be at risk if they are found liable for a loss. You can purchase umbrella liability coverage for amounts of up to $5 million.
An example of how a $1 million umbrella policy may work is described as follows:

If you are sued by someone injured at your home for covered damages exceeding your primary Homeowners policy, your Homeowners policy pays liability up to the policy limit. An umbrella policy provides liability insurance for covered damages after the liability amount on your primary policy is exhausted.

Umbrella policies cover liability losses that you, your dependents or even your pets may cause. If your current liability coverage is not adequate to resolve a claim or a lawsuit, the person filing the action against you might go after your home or other assets to collect for damages.

Second Home

Additional Policies – Protecting Your Second Home
If you own a second or vacation home, that property is not covered under the homeowner’s insurance policy on your primary residence. You’ll need homeowners insurance specifically for this second home. Because you may not be present as much in your second home as you may be in your primary residence, you need to take extra precautions on protecting this property.

Here’s a helpful guide on insuring and owning your second home:
- Invest in an Alarm System
  Make sure your second home has a central alarm system that detects both fire and burglaries especially if you are not present as much as your primary residence. According to major alarm companies, a basic system costs around $300 to install, depending on the number of zones and sensors in your system. It may also require about $70 or more for service each year.
- Keep A Watchful Eye
  You may be qualified for a lower insurance rate on your second home if it is located in a gated community, or if it is located in a rural area and there is proof that the local fire department has access to a stream, lake or other water source, or if you hire a caretaker.
- Combine and Save
  Save money on your second home. If you currently have a Homeowners policy with us, you may qualify for additional savings if we also cover your second home.
Rental Property

If you rent your property out, you need to be assured that your property is covered for loss caused by fire, or other events. You also want to avoid potential loss of income if your property becomes uninhabitable. If the complex/house needs to be rebuilt, it may take several months to a year before you can have any tenants move back in.
Some of our other carriers may even offer a product tailored to rental property that can insure up to four attached units that may be completely rented or one unit occupied by you, the owner.

The following are some features that may go along with this type of policy:
- Liability coverage options
- Increased replacement cost coverage options
- Theft, water damage and more.
Safety Standards for Rental Properties

Landlords: Protect yourselves from potential lawsuits and mishaps. Make sure that your properties meet special safety standards. The following is a list of major issues regarding your rental property:
- Independent Contractors (roofers, plumbers, tree-trimmers, gardeners, etc.) – Be sure to hire only insured contractors and request to see their license if a job requires one. For large projects, request for a certificate of insurance and require that they add you as an “Additional Insured” under their insurance policy.
- Windows and Screens – All windows that can be opened should be screened and set in place to avoid negligence charges. If your tenants have small children, be sure to advise them not to place furniture directly under a window.
- Fences/Railings and Handrails – New safety codes in certain areas require openings of no more than four inches between bars or slats. Be sure to check the strength of the bars and that they are securely attached.
- Maintain your property. Quickly address general maintenance issues and solve tenant complaints and problems in a timely manner.
- Locks and Latches – Don’t just provide an adequate lock; invest in a superior lock or deadbolt with heavy strike plates. Laundry rooms should be locked at all times to keep young children from playing around dangerous machines, and to protect against vandalism, and other mishaps.
- Smoke Detectors – If detectors are battery-operated or hardwired, be sure to check them every six months.
Home Business

Your homeowners insurance may not sufficiently cover your home business. Some policies cover up to $2,500 for business equipment in the home, but do not cover business-related liability or other losses. If you run a business from your home, you may need property and liability insurance, as well as workers compensation coverage for the business.

You may also qualify for optional coverages that allow you to tailor your policy to fit your individual business needs.

The following are some helpful tips that will help you stay organized and keep your home and business safe:

Keeping Your Records Organized
- Seek advice from your attorney or tax accountant on records you need to retain.
- Keep copies, receipts, account statements, cash purchases and a log on business related activities for tax-purposes.
- Always keep business and personal finances in separate bank accounts.
- Keep all records in a locked, fire-proofed file cabinet.
Keeping Your Home Business Safe
- Provide adequate space for office or other business related equipment. Be sure it’s not in an area where it is easily seen or stolen.
- Consider investing in an alarm system.
- Be sure to have adequate lighting for both inside and outside your home.
- Frequently check your smoke detectors.
- Have an electrician check wiring and power maximums. Office equipment may exceed regular wattage.
Water Damage/Sump Pump

Your Homeowners insurance policy likely does not cover water damage from sewer or drain backup or broken sump pumps. You will need to purchase additional coverage to insure against such damage. Don’t wait until your pipes burst, appliances leak or for your basement to flood before you look into what exactly your homeowners insurance covers.

The following are some common water-damage scenarios to be cautious for:
- At 10 below zero, your water pipes freeze and burst. Your floor is now covered in 6 inches of water.
- Water leaks from your backyard pool, ruining your manicured lawn and flooding your basement.
- Your washing machine overflows, flooding the basement.
- A sewer backs up, flooding your basement.
- Water seeps from the ground into your basement, damaging your foundation and interior.
- During a heavy rainstorm, water leaks through your roof. The roof is damaged along with your furniture.
- Your bathtub overflows.
- A nearby lake or river overflows its banks, causing a flash flood in your living room.
Sump Pump

Another mechanism to be aware of which can be frustrating and not to mention damaging is having a broken sump pump. Your current Homeowners policy may not cover such damage.

How do you know if you need a backup sump pump?

If you live in an area where floods and thunderstorms are most likely to occur and where your power can be knocked out, you may consider the need to buy a self-powered sump pump, otherwise known as a support pump. This support pump is used as a backup to your primary sump pump if it fails.

Two types of backup sump pumps to consider are:
- One that runs on a rechargeable 12 Volt battery
- One that is hooked up to your home’s water system and operates with water pressure
Below are a number of other reasons why your electric sump pump may fail:
- Power failure
- It may be burned out, unplugged or jammed with mud or stone
- A broken impeller or drive shaft
- The float switch is stuck or broken
- A tripped circuit breaker, a blown fuse or damaged power feed line
- Too much water or a clogged intake screen
- A clogged or frozen discharge pipe