If the ambiance and aroma of a real tree far outweigh the convenience of an artificial tree in your home, your Trusted Choice® independent insurance agent and the National Fire Protection Association (NFPA) remind you that bringing a real tree into the house also brings a real risk of fire, particularly if the tree is allowed to dry out in a room filled with flammable furniture, carpets, and gifts. Your glowing centerpiece can quickly turn into a flaming disaster.

This short, but dramatic video from the NFPA makes clear the risk.

Your Trusted Choice agent always stands ready to offer advice and a comprehensive review of your current insurance coverage and needs, and we assure you that a proper homeowner’s policy will respond for damages to your property caused by fire. But while insurance may repair or replace your damaged property, it can never repair or replace the loss of holiday magic and joy. In the spirit of the insurance adage, “The best claim is the one you never have,” here are a few timely tree safety tips direct from the folks at NFPA:

• Choose a tree with fresh, green needles that do not fall off when touched.
• Before placing the tree in a stand, saw 2” off the base of the trunk.
• Make sure the tree is at least three feet away from any heat source, such as a fireplace, radiator, candle, heat vent, or light.
• Situate the tree so it is not blocking an exit.
• Add water to the tree stand. Replenish the water daily.
• Use tree lights that have the label of an independent testing laboratory. Some lights are intended only for indoor or outdoor use.
• Replace any string of lights that has worn or broken cords or loose bulb connections.
• Connect no more than three strands of mini string sets. Connect a maximum of 50 screw-in bulbs.
• Read manufacturer’s instructions for number of LED strands that can be connected safely.
• Never use lighted candles to decorate the tree.
• Always turn off Christmas tree lights before leaving home or going to bed.

Christmas Tree Fires Deadlier Than Average

A Christmas tree fire can turn the most wonderful time of the year into the worst time ever.

• Between 2005 and 2009, U.S. fire departments responded to an average of 240 home fires that started with Christmas trees per year.
• Those fires caused an average of 13 civilian deaths, 27 civilian injuries, and $16.7 million in direct property damage annually.
• Christmas tree fires are likely to be far more serious than structural fires. On average, one of every 141 structural fires results in death; for Christmas tree fires, it’s one in 18.
• Of those fires, 20% were started by a heat source too close to the Christmas tree.
• Some 18% of structural fires resulting from Christmas trees were caused by intentional burning in January, likely in order to dispose of the trees.

Sources:

http://www.nfpa.org/itemDetail.asp?categoryID=2401&itemID=55373&URL=Research/Statistical%20reports/Major%20causes/

http://www.nfpa.org/assets/files//Public%20Education/ChristmasTreeSafetyTips.pdf

Who Is Liable if a Holiday Guest Gets Food Poisoning or Drives Home Drunk?

As millions of Americans host and attend holiday parties across the street or across the country, many may be unaware of the risks they may be taking. According to Trusted Choice^® and the Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) party hosts need to understand their responsibilities when inviting people into their homes and serving food and drinks.

“Before hosting a party this holiday season, homeowners may want to consult with their Trusted Choice^®independent insurance agent and ask questions,” says Robert A. Rusbuldt, Big “I” president & CEO. “Hosts should be aware that if someone drives drunk or becomes sick after consuming food at a holiday party, the host could actually be liable.”

In fact, a casserole could bring just as many risks as a cocktail. A recent survey by Trusted Choice^® and IIABA found that almost three-fourths of homeowners had served food in their home that was prepared by someone other than themselves. That means more than 111 million homeowners in the United States have put themselves at risk for a lawsuit by just feeding their guests.

“Whether the food served came from your kitchen, a pizza delivery truck or a five-star caterer, if you serve it, you could be liable if anyone gets sick,” says Madelyn Flannagan, Big “I” vice president for education and research. “Even a simple neighborhood holiday potluck could have disastrous results for the host if someone is stricken with food-poisoning.”

The Big “I” and Trusted Choice^® provide the following tips for holiday hosts and guests.

 Do Your Homework: When hosting a holiday party, individuals should look to the liability portion of their homeowners or renters insurance policy to protect them if they are sued and found liable for an accident involving a guest who drank or got sick after consuming food at their home. Consumers should regularly review their liability coverage limits to ensure they are adequately covered should an accident or illness occur.

Watch What You Eat and Feed Others: Even if food was prepared outside your home by a caterer, another guest, a local deli or the neighborhood pizza joint, YOU could be held liable if someone becomes ill from consuming it on your property. Make sure that you check food and don’t put anything out that you suspect may be undercooked, spoiled or contaminated. Use only reputable food purveyors. Follow proper food-handling, heating/cooling and storage recommendations. When in doubt, throw it out.

Know Your State Laws and Statutes: In many states, party hosts can be held liable if a guest is involved in an alcohol-related accident. Many courts have found hosts liable for damages their party guests cause as a result of consuming alcohol and then driving motor vehicles. Many states have also enacted statutes that can be interpreted as mandating non-commercial social host liability. So, if a guest or third party is injured in an accident that is related to alcohol consumption and the drinking can be linked to you, you could be held responsible for the payment of medical bills, vehicle repair costs, lost time from work and — in the worst case — claims for wrongful death resulting in huge monetary settlements.

Mix up the Activities, not just the Cocktails: If the party centers around drinking, guests will likely drink more. Schedule entertainment or activities that do not involve alcohol. Provide safe filling food for guests and alternative non-alcoholic beverages.

Party Elsewhere: Host your party at a restaurant or bar that has a liquor license, rather in a home or office to decrease your liability.

Call a Cab, Get a Room or Have a Slumber Party: Arrange transportation or overnight accommodations for those who cannot or should not drive home.

Just Say No: Do not serve guests who are visibly intoxicated. Stop serving alcohol at least one hour before the party is scheduled to end. Stay alert and always remember your responsibilities as a host. You might also consider hiring an off-duty police officer or professional bouncer to discreetly monitor guests’ sobriety or handle any alcohol-related problems as guests leave.

Consider an Umbrella Policy: While holiday partygoers and hosts alike should act responsibly and know their limits, consumers need to acknowledge that most risks cannot be entirely eliminated. But planning ahead and learning about what’s involved in hosting a reception is the best defense. Purchasing a personal “umbrella” liability policy — providing $1 million or more in additional coverage over the limit of a standard homeowners or renters policy — may be a prudent move for the frequent party host.

The survey was conducted for Trusted Choice^® via telephone by International Communications Research (ICR), an independent research company in Media, Pa. Interviews of a nationally representative sample of 760 homeowners were conducted in November and December 2012. More information about ICR can be obtained athttp://www.icrsurvey.com.

Trusted Choice^® agencies are insurance and financial services firms. They represent multiple insurance companies, offering individuals and business owners a variety of coverage choices, customized insurance plans to meet specialized needs as well as advocacy support. These firms adhere to a pledge of performance, committing them to providing excellent customer service. For more information, go to www.TrustedChoice.com.

Founded in 1896, the Big “I” is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of approximately a quarter of a million agents, brokers and their employees nationally. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer all lines of insurance—property, casualty, life, health, employee benefit plans and retirement products. Web address: www.independentagent.com.

The good news is that the loss is covered and the insured will be getting a check for the cost to replace the building. The better news is that the policy limit was adequate and the insured will not suffer the consequence of coinsurance. But it’s not over.

The insured discovers that, due to increased demand resulting from widespread damage, hiring a contractor to remove the debris will be more expensive than anticipated. But that shouldn’t be a problem because the policy limit is adequate…right?

Most commercial property policies will cover the cost to remove debris resulting from a covered cause of loss. However, coverage may be limited or excluded depending on a few important factors addressed in the policy.

Factor #1 – How much is enough?

First, consider that it is not cheap to remove certain types of debris. For example, removing debris of an old frame building may be less labor-intensive than debris of a building with substantial masonry or steel. Removing such items will likely require the use of a contractor and heavy equipment. Also consider that high demand brought on by widespread damage will likely increase the contractor’s fee for service.

Second, consider how the policy calculates coverage to remove debris. Most policies say that the insured will have access to a stated amount—typically $10,000—plus the lesser of:

• 25% of the paid loss plus the deductible, or
• The remainder of the policy limit minus the paid loss.

For example, consider a loss to a building valued at $1 million. If the loss amount is $100,000 and the deductible is $5,000, coverage would be determined as follows:

• 25% times the paid loss ($95,000) plus the deductible ($5,000) = $25,000, or
• The remainder of the policy limit ($1 million minus $95,000) = $905,000.

In this claim, the insured has access to $25,000 plus the stated amount of $10,000 to clean up the mess.

Now consider the same building, only this time it is a much greater loss of $900,000. Coverage would be determined as follows:

• 25% times the paid loss ($895,000) plus the deductible ($5,000) = $225,000, or
• The remainder of the policy limit ($1 million minus $895,000) = $105,000.

In this claim, the insured has access to $105,000 plus the stated amount of $10,000 to clean up the mess. In the event of a total loss, it’s likely the policy won’t pay more than the stated amount of $10,000. The purpose of these examples is to show that the more severe the loss, the less money the policy includes for cleanup.

Factor #2 – What is ‘covered property’?

Most commercial property policies will pay only the cost to remove debris of “covered property.” This definition includes items specifically listed as such in the policy. The policy also lists items that are defined as “property not covered.” Items meeting this definition may also require cleanup, and the cost associated will not be paid by the insurance company. Examples of these items include pieces of the parking lot, building foundation, landscaping, and items that end up on your property from somewhere else.

Factor #3 – Pollutants

If a building is damaged and the site must be cleared, items defined in the policy as “pollutants” may require special care. For example, consider a print shop that catches fire, releasing highly toxic inks and dyes into the ground. Local engineers may require you to extract those pollutants from the site. If so, the cost may be substantial and is typically not covered by a commercial property policy or is limited to a specified dollar amount that may not be enough, such as $10,000.

What’s the Solution?

The best solution to this potentially large gap in coverage is to call your Trusted Choice^®insurance professional. We can help you amend your existing policy to offer more coverage for the cost to clean up debris. We can also help you minimize your exposure by amending the policy to cover items that are currently excluded, such as those examples listed above. Further, we can help you understand the meaning of “pollutants” in your policy and determine if your property contains items that may require special care to remove.

Here are a few tips for how to create a plan for your family.  If we do nothing else but prepare then we are still better off.

The following is an excerpt from MAKE A PLAN www.ready.gov-

“Your family may not be together when a disaster strikes so it is important to plan in advance: how you will get to a safe place; how you will contact one another; how you will get back together; and what you will do in different situations. Read more about Family Communication during an emergency.

Ready.gov has made it simple for you to make a family emergency plan. Download the Family Emergency Plan (FEP) (PDF – 508 Kb) and fill out the sections before printing it or emailing it to your family and friends.

You should also inquire about emergency plans at places where your family spends time: work, daycare and school, faith organizations, sports events and commuting. If no plans exist, consider volunteering to help create one. Talk to community leaders, your colleagues, neighbors and members of faith or civic organizations about how you can work together in the event of an emergency. You will be better prepared to safely reunite your family and loved ones during an emergency if you think ahead and communicate with others in advance. Read more about school and workplace plans.

Prepare yourself and your family for a disaster by making an emergency plan.

Download the Family Emergency Plan (FEP) (PDF – 3 Mb), print the pages and fill them in offline.

Your emergency planning should also address the care of pets, aiding family members with access and functional needs and safely shutting off utilities.

You may also want to inquire about emergency plans at work, daycare and school. If no plans exist, consider volunteering to help create one. Read more about school and workplace plans.

Once you’ve collected this important information, gather your family members and discuss the information to put in the plan. Practice your plan at least twice a year and update it according to any issues that arise.”

You can find additional information about how to best prepare your family and your business for a disaster at www.ready.gov

Classes starting at most colleges in Nebraska this week has surely caused many empty nesters some first day of school blues.  Despite our children leaving for college taking their first flight out of the nest, they still need their parents guidance and forethought.  Help protect your student from risks that they may not even know is there.

When students go off to college they usually take their computers, TVs, stereo equipment, most of their wardrobe, and anything else that they can cram into the car. Whether they’re taking all their worldly possessions or just enough to get by, they’ll need insurance to cover the things in their dorm room or apartment. So before they take off for college, make sure they’re covered by yourhomeowner’s insurance or a separate renter’s policy.

Students living in dorm rooms are typically covered by their parents’ homeowners policy if they are temporarily living at school and are younger than 24 years old. However possessions in a dorm room are considered “personal property located off premises” and most homeowners polices limit coverage to 10 percent of off-premises property. For example, if you have $80,000 in coverage for your home, your student’s dorm room is covered up to $8,000. If your student is taking a lot of pricey electronics and other valuable items to school, he or she may want to take out a separate renter’s insurance or property policy if the value of their belongings exceeds the coverage offered through the homeowner’s policy.

Renter’s insurance is a must if a student is living in an off-campus apartment. Most insurance companies consider students’ apartments permanent residences, which means a parent’s homeowners policy doesn’t apply. A landlord’s insurance also doesn’t cover a renter’s personal property. Renter’s insurance usually costs less than $250 a year for about $15,000 in coverage and covers the possessions in the unit in the event of a loss. It also protects the individual from liability if he or she causes damage to the rental unit.

Whether a student is living in a dorm or an apartment, it’s important to remind them to take precautions to keep their belongings safe. Encourage them to lock their doors if they leave their dorm or apartment. It takes a thief less than a minute to steal a laptop, purse, or other valuables from a room. Students also need to pay attention to their property if they host parties or have numerous guests.

If you have questions about your student’s insurance needs or you want to review your homeowner’s policy, your Trusted Choice® independent agent can help make sure your student has the right coverage for their home away from home.