Auto, Home & SR22 Insurance Blog

The major wildfires in Southern California in August and September have burned over 150,000 acres, destroyed dozens of homes, and caused residents to flee from over 10,000 homes. Indeed, wildfires are one of the most destructive natural forces known to mankind. While sometimes caused by lightning, nine out of ten wildfires are human-caused. A wildfire can be defined as any unwanted and unplanned fire burning in forest, shrub, or grass. According to the National Interagency Fire Center, there were over 80,000 wildfires in the United States in 2008. These fires burned an estimated 5.2 million acres.

If you live in a wildfire-prone area, the following are some tips for you to mitigate the risks of suffering a wildfire loss.

• If you are building a house or planning to replace a roof, consider noncombustible or fire-resistant roofing materials, such as Class A asphalt shingles, metal, cement, and concrete products, or terra-cotta tiles. These types of roofs are less susceptible to burning embers from a wildfire.
• Remove any dead branches, leaves, and any other vegetation from your roof and gutters.
• Remove any dry brush from your yard and stack firewood at least 20 or 25 feet from your home.
• Create a "fuel-break" -- driveways, gravel walkways, or lawns.
• Prevent sparks from entering your home by covering vents with wire mesh no larger than 1/8-inch. Cover skylights and chimney outlets with nonflammable screening materials.
• Use tempered glass in your windows since this material withstands high temperatures from wildfires better than regular plate or double pane glass.
• Make trellises of nonflammable metal.
• Avoid certain exterior siding materials, such as vinyl, which soften and melt easily under high temperatures. Instead, siding materials such as stucco or masonry should be selected, since these resist heat better.

Copyright 2009
International Risk Management Institute, Inc.

Posted by at 11:42 AM | Permalink

Homeowners regularly hire general contractors and subcontractors to work on their homes but are often unaware of the large exposures that could result in hiring an unlicensed or uninsured contractor, particularly for large projects. For example, an uninsured roofer working on your home may sue you for damages if he is injured on the job. The following key rules should thus be followed when selecting a contractor to work on your home.

Be wary of contractors who solicit business door-to-door or via cold calls. In addition, avoid contractors who quote you a price that will automatically go up the next day or week if you don't accept it immediately.

Obtain recommendations from friends, family members, and neighbors about experienced and reputable contractors who have performed excellent work for them.

Ask for a written estimate from the contractor that includes any oral agreements the contractor makes in this process. The estimate should contain a line-by-line breakdown of costs, including materials and labor.

Verify that the contractor is licensed, bonded, and properly insured. Ask for certificates of insurance for workers compensation and general liability policies. You should also receive these certificates for any subcontractor the general contractor may hire to work on your home.

Contact the Better Business Bureau to see if complaints have been filed against the contractor. This can be performed via the bureau's Web site at www.bbb.org.

Get a copy of the proposed contract. Ideally, it should include a hold harmless clause in your favor, particularly for major work such as when heavy equipment will be used in constructing a swimming pool. A hold harmless clause specifies that the contractor will indemnify you with respect to your liability to members of the public who are injured or whose property is damaged during the course of the contractor's operations. The contract should also explicitly establish an independent contractor relationship.

Ask a knowledgeable friend, relative, or attorney to review the home repair contract before you sign.

Copyright 2009
International Risk Management Institute, Inc.

Posted by at 9:52 AM | Permalink

More and more homeowners in the United States now employ domestic workers, either on a full-time or part-time basis. In fact, the U.S. Census Bureau estimates that there are at least 1.5 million domestic workers across the country. The services these domestics render are great, but so are the risks for the employer. The following are some ways for you to mitigate the risks of employing domestic workers and for ensuring that these workers have the proper protection as well.

If hiring a domestic worker directly, run a background check on potential domestics to see if they (a) are U.S. citizens, (b) have a history of filing lawsuits, (c) have credit problems, or (d) have a criminal record. If using an employment agency, verify the above steps are performed. Prospective domestics with major concerns of these types should not be hired.

Check with your insurance agent to see if you need to procure workers compensation coverage. Your agent will be familiar with your state laws concerning this issue. Of course, you may choose to voluntarily provide workers compensation coverage, which may be a good idea. As discussed below, even if your homeowners policy covers injuries to your domestic employee, the policy limit could be grossly inadequate in the event of serious injury, permanent disability, or death.
The advantage of workers compensation coverage is that it provides broader protection (e.g., disability payments) than your homeowners policy, including unlimited medical expenses in most states. So, even if not required by law, it is a good idea to consider voluntarily providing this important coverage.

If an outside firm or agency is used to hire your domestic, verify the worker has workers compensation coverage. Obtain a certificate of insurance from the employment agency on an annual basis showing this coverage.

Prepare a well-organized and documented human resource file for every domestic employee. In addition, you should have an employment application as well as an employment manual or handbook. This manual will reduce the chances of an employment-related lawsuit because it can include protective provisions detailing your opposition to any employee mistreatment. An employee manual written or revised by an experienced attorney is an even more effective risk control recommendation.

If there are multiple domestic workers, an employment practices liability (EPL) policy may be needed. This coverage can protect you from a wide variety of lawsuits, including allegations of discrimination, wrongful termination, harassment, and slander. A personal injury endorsement under your homeowners policy is also recommended.

Discuss with your insurance agent the possibility of increasing the personal liability and medical payments limits under your homeowners policy to the highest available limits, particularly if workers compensation benefits are not required or purchased. A personal umbrella policy is also recommended.
Consider some type of fidelity bond for these employees, particularly for new employees. This bond will protect you if the domestic worker commits a dishonest act in your employment (e.g., theft of jewelry). If an employment agency or service provides these employees, verify that the employment agency has purchased fidelity bonds on them and ask for a copy of the bond certification form.

Make sure that your employment practices comply with federal requirements, such as the withholding of payroll taxes and proof of citizenship.
Get more personal lines insurance and risk management tips and ideas from IRMI.

Copyright 2009
International Risk Management Institute, Inc.

Posted by at 10:17 AM | Permalink

Breaking news:

Effective July, 1, 2007, Allstate Insurance will no longer write new homeowners insurance policies in California. Current Allstate Homeowners customers are said not to be affected by this change. To help with this change, Allstate has partnered with Pacific Specialty Insurance Company (McGraw Insurance) to help write some of the business that Allstate will now turn away.

McKenna Insurance Services will assist California's insurance consumers, including Allstate customers in need of Homeowners, Renters, Condo (Unit Owners), and Landlords (Rental Units) insurance policies. We also, represent Pacific Specialty Insurance Company among many others such as Mercury Insurance, The Hartford, Fidelity National, Workmen's, Praetorian, Aegis, Topa, Lloyd's of London and access to many more. Don't make a huge pricing mistake. Don't just get a quote from one company.

It is well known in the insurance industry, that Allstate's underwriting guidelines for brush risks is one of the most lenient in the market. Traditionally, the excess and surplus lines companies insured these high-risk homes. Insurance consumers in many cases will once again have to return to the surplus lines markets to insure their most valuable asset.

Give our markets a try. Remember, these are price quotes and they do not determine eligibility for a homeowner’s insurance policy. Most companies have underwriting guidelines for natural brush, type of dwelling, animals, roof type, claims, etc...

Instant Homeowners Insurance Quote

Posted by at 1:14 PM | Permalink

McKenna Insurance Services has added a new company to its extensive product line. The Hartford Insurance appointed McKenna Insurance Services as a personal lines agent. The Hartford will really strengthen the agency to round out the product offerings. As we all know, each client's situation is unique. Individual rating factors can affect not only premium, but also, underwriting acceptability.

The Hartford Auto Insurance program is designed to offer top-level coverages at very competitive rates for drivers that have very good driving records. The Hartford Insurance Company wants to reward those California drivers that are careful drivers. Not only are the rates competitive, but the service and claims adjusting is top-notch with a knowledgeable representative just a phone call away.

We are very excited about the Homeowners Insurance product. Under the category of Home Insurance we are able to sell HO3, HO5, HO4 Renters Insurance and HO6 Condo Insurance (Unit Owners Insurance for both owner and tenant occupied condos).

Also, The Harford offers Umbrella Coverage, Dwelling Policies and will schedule personal property on a Home Insurance policy. The multiple policy discount when you sign up for both Auto and Home Insurance is huge so we recommend that our clients package the policies when possible.

In California, native brush continues to cause problems for insurance consumers. The majority of insurance companies require at least 1/4 mile clearance from brush in order to obtain a homeowners insurance policy. The Hartford can help you obtain renters or condo insurance if your dwelling is near brush.

Call us today at (888) 384-7722 and ask for a free quote with The Hartford Insurance.

Posted by at 5:01 PM | Permalink