$500, $1000, $2500, 3% Wind, 5% named storm, what is my true deductible?

There seems to be more an more confusion about deductibles on home insurance.  Different companies have put different thresholds for wind and hurricane deductibles in New York.  Many homeowners have no idea of how much they would have to pay if they had damage in a severe windstorm, Nor'easter, or Hurricane.

Deductibles, what are they?

First let's start with what is a deductible.  It is the amount of money that you would be responsible to pay before a claim is paid by your insurance.  Most people have a $500 or $1000 deductible.  If you have less than that, you are probably paying too much for your insurance.  You can usually save $100 a year if you go from a $250 deductible to a $500.  So if you have a claim, you pay the first $500 instead of $250, so you will save the difference if you go three years without a claim.  In many cases, it doesn't save enough to go over a $1000 deductible on a home policy.

Wind & Hail Versus Named Storm

After Hurricanes Andrew, Katrina, and Rita, many companies realized that they couldn't handle the volume of claims without greatly increasing the cost of home insurance policies.  Many companies put a named Hurricane deductible in place. They all have different thresholds as to when they come in, so there could be large differences in the premiums.  The percentage can be from anywhere between 2% and 5%.

For example, Allstate Insurance Company and State Farm Insurance Company both have a 5% Named Storm, or Hurricane deductible.  The Allstate Deductible starts when there is a named storm with sustained winds of 100mph for a certain period of time.  The State Farm deductible is for ANY Hurricane.  You might be able to save $100 a year with the State Farm policy, but if a normal Hurricane does damage with winds of 75mph, you will have to pay 5% of the insured value versus your normal $500 Deductible.

Insured Value            State Farm Ded.                  Allstate Ded.

$300,000                      $15,000                                $500

Other companies have an even more stringent deductible and apply it to ALL Wind Storms.  The percentages are usually less, 2-3%, but they are in effect for any storm, depending on the threshold on your policy.  So in the example above, it could be a Nor'easter with 75mph winds, and the deductible would be $6,000 to $9,000, where the above companies would be the normal $500 deductibles.  Some companies have the deductible with no threshold, so you are responsible for any wind claims below the deductible.

What do I do?

Unfortunately, unless you know how to read the details of your policy, you might not know what your deductible is until you have a claim.  Some are clearly written, but others are buried in the endorsements section of your policy.  Currently the Professional Insurance Agents Association, and the State Insurance Department are looking to standardize the deductibles, but you need to do something before Hurricane Season starts.

Fax, mail, or email me your policy, and I will help you determine what your deductible is, so you can be prepared.  We work with companies with that have low Hurricane Deductibles with High Thresholds.  They also have great rates.  Happy Spring Everyone.

Flooding Awareness Week

You can't turn on the news this week without hearing about all of the devastating flooding in our area.  Westchester, the Bronx, New Jersey, and many other places are seeing the results of the heavy rains and melting snow from a record breaking winter.  People who have lived in their homes for 30+ years are suffering flood damage for the first time.

Flood Awareness Week comes at a time when flood risks are heightened due to a number of contributing factors: spring snowmelt, ice jam, heavy rains or flash flooding. Flooding is always a major concern, especially in the spring. This is the time to review your risks and ask yourself why it is important to purchase flood insurance. 

 

Why should I purchase flood insurance?

• Floods are the most common natural disaster.
• Most homeowners, condominium, manufactured home, renters and business insurance policies exclude losses due to flood.
• Flooding is the most costly natural disaster in the U.S., causing nearly $24 billion of property damage over the last 10 years.
• Just an inch of water can cause costly damage to your property.
• A car can easily be carried away by just two feet of floodwater.
• Your home has a 26 percent chance of being damaged by a flood during the course of a 30-year mortgage.
• Government assistance is sometimes available, but only if the disaster is declared a state or federal disaster, and the assistance is usually in the form of a loan.
• A federal disaster loan of $50,000 will be paid back at $240 a month at four percent interest while the average flood insurance policy costs $500 a year.  

What if my flood risk appears to be low?

• Everyone lives in a flood zone - anywhere it rains, it can flood.  
• Flooding is not limited to coastal areas. Floods and flash floods happen in all 50 states.
• Approximately 25 percent of all flooding events occur outside Standard Flood Hazard Areas.
• If you live in a low-to-moderate risk area and are eligible for the Preferred Risk Policy, your flood insurance premium may be as low as $129 a year, including coverage for your property's contents.
• Just because you haven't experienced a flood in the past, doesn't mean you won't in the future. Flood risk isn't just based on history, it's also based on a number of factors: rainfall, river-flow and tidal-surge data, topography, flood-control measures, and changes due to building and development.

What causes flooding?

• Many conditions can result in a flood: hurricanes, broken levees, outdated or clogged drainage systems and rapid accumulation of rainfall.
• New land development can also increase flood risk, especially if the construction changes natural run-off paths.
• Floods often happen when bodies of water overflow or tides rise due to heavy rainfall or thawing snow. Flash floods may occur without warning when a large volume of water falls in a short time.

With everything going on with changing weather patterns, increased rain fall, and severe storms happening more often than in the past, now is the time to consider purchasing flood insurance.  The increase in claims in the past two years has been eye openening, and having a claim that isn't covered is the last thing that you want to experience.  Give us a call today, so we can get you a quote on flood insurance.  Remember, it takes 30 days for a policy to start! 888-900-2173

Rain, ice, and snow = Excessive Roof Loads!

Some people are welcoming the rain in hopes that it will melt all of this snow.  The problem is that it could cause more damage to already overburden roofs!  We have been flooded (no pun intended) with calls about water getting into the house from ice dams the past few weeks.  I have been up on a laddder, cleaning my roof several times trying to get the snow off of one section of my roof that is backing up into my house. I had to call in a contractor to clean it up, because the leaking was getting worse.

Now the rain could help if it gets warm enough to melt the ice and snow.  If it freezes, it could trap more melting ice and snow, which could find it's way into your home as it tries to find it's way off of your roof.
Following some simple precautions can help. You should inspect roofs for leaks or structural defects to ensure that gutters, drains and downspouts are clear of ice and debris. Likewise, you should clear snow and ice from exhaust vents leading from the home through the exterior walls as well as clear all snow from sidewalls to prevent excessive pressure on the walls from snow mounds. Also, decks should be cleared of snow as soon as possible.

Exercise caution at all times. Be cautious of falling snow and ice. Untrained individuals should not undertake clearing snow from roofs due to the dangers of falling from heights and those associated with falling tree limbs and electrical wires. Also, the roof could be covered with a sheet of ice, making it even more hazardous.

Give us a call if you are concerned about the potential damage you could have from the weight of ice and snow.  Most home insurance policies will cover this type of claim, but not all are created equally.  Now is not the time to hear the dreaded words "sorry, you're not covered for that!"









Consult with professionals. If you notice damage to your roof or walls from the weigh of snow and ice, temporarily shore up and brace the damaged area until professional help arrives. If you are concerned about your building's condition, contact a trained professional for an assessment of the condition.



Report damage to your home. Contact your broker or Kingstone Insurance Company immediately if you have suffered storm damage to your property.



February 1, 2011



We hope you find this information helpful. Thank you for being one of Kingstone Insurance Company's Select Producers!







Thomas G. Seccia, Jr., General Manager

845-340-8316 tseccia@kingstoneic.com

Flooding can happen in the winter too!

Most people associate floods with the rivers in the Mid-West, and Hurricanes in the spring.  Unfortanetly, floods an happen year round, and have many causes.  First, you need to understand the definition of a flood in insurance terms.

In regular terms, flooding is any situation where water accumulates on the ground where it shouldn't be.  Overflowing rivers, tidal surges, and heavy rains are the most popular examples.  Melting snow can also cause flood damage to your home that would be excluded from your home insurance policy.  If the snow on the roof causes water damage, it could be covered by your home insurance depending on your policy.  But if it is on the ground, then flood insurance might be the only way to recoup your damages.

The heavy snows that we have had, followed by the warmer weather and rains will increase the chance of flooding.  3 inches of water in your home can cause tens of thousands of dollars in damage that may not be covered by your home insurance.  For less than $1 a day, you can get this valuable coverage in place.  But act now, as there is a 30 day waiting period before the coverage starts!

More snow, beware of Ice Dams

With these storms, I get many calls about water seeping through the walls or ceilings from melting snow.  This is caused by ice dams. They generally appear after a heavy snowfall during an extended period of cold temperatures. Because ice dams occur on roofs buried in snow, few people actually see them, let alone understand their causes. The only time people think about them is when they occur, which is about the only time that almost nothing can be done.

 

What are Ice Dams?

 

Ice dams are literally dam-like buildups of ice on a roof. They normally occur at the edge of the roof but can occur higher up under certain circumstances.

 

The ice itself is not a problem. The problem is caused by melting snow can form a pool behind the dam. Most roofs are very effective at shedding water. Very few roofs, however, are designed to cope with pools of water. Water backs up behind the ice, seeping up under the shingles until it finds its way through the roof to the attic and living areas below.

While usually temporary in nature, the massive roof leaks the dams cause can wreak all kinds of havoc with wiring, drywall, paint, carpet, flooring and interior furnishings. Ice damming can also cause problems for your exterior siding and the wood and insulation behind it.

What Causes an Ice Dam?

 

Ice dams occur most often when we get heavy snow followed by below freezing temperatures, but they can occur with just an inch or two of snow. Some part of your roof warms up enough to melt the snow. The melt water flows down to another part of the roof that is cooler, and the water refreezes. The ice forms a small dam that builds up slowly as more melt water refreezes. Eventually, water backs up behind the dam and works its way up under the shingles until it begins to leak through the roof into the living space below.

There are four main causes of ice damming, and the latter three we can actually do something about.

1. Weather
2. Household heat escaping to the attic
3. Uneven roof temperatures
4. Roofing underlayment that water can penetrate

Preventing Ice Dams

Ice dam prevention is best achieved in three ways: 

1. Attic insulation
2. Attic ventilation
3. Proper re-roofing

There are many sources of information  on properly avoiding Ice Dams.  Some insurance policies will cover the damage, but it is subject to the deductible.  Give me a call if you would like some more information about how to prevent ice dams.  888-900-2173

STATE FIRE ISSUES SAFETY ALERT: SNOW INCREASES CARBON MONOXIDE HAZARD

With winter starting next week, the snow has been hitting the northern part of New York.  Heavy snow fall has closed airports, roads, and has already caused millions in damage.  The southern part of the state has been getting minimal snow, but icy roads have been causing accidents and traffic tie-ups. 

The New York State Office of Fire Prevention and Control (OFPC) today issued a Safety Alert advising homeowners and businesses throughout New York State that heavy snowfall and drifting snow may create a new hazard: carbon monoxide poisoning. Carbon monoxide is a colorless, odorless, dangerous gas, commonly known as CO.

State Fire Administrator Floyd A. Madison said that with the recent onslaught of lake-effect snows in western, central and northern portions of New York State, local fire agencies have reported an increase in calls about carbon monoxide detectors going off in homes. Madison said that the reason for these calls is that high snow drifts may be blocking furnace vents and air intakes in some homes, particularly those that have newer high-efficiency furnaces.

“New, high efficiency furnaces vent out the side of a house rather than up through the roof,” Madison said. “This type of venting and air intake must be kept free and clear of snow. If it plugs up, the carbon monoxide would go back into the home. This is why the New York State Office of Fire Prevention and Control is issuing this warning.”

The State Fire Administrator said that some areas of New York State have received more than three feet of snow in the last week. Many newer high efficiency furnaces have an automatic device that shuts off the furnace when the vents are blocked, but not all of them. First responders say it is important to keep a three-foot area clear around the vent and intake tubes.

The New York State Office of Fire Prevention and Control advises all New Yorkers affected by the recent heavy snows to inspect the area around their furnace and hot water heater vents to ensure that snow and ice are not blocking the efficient and safe operation of these fuel burning devices.  Homeowners should keep a three- foot area around the vents clear of snow, shrubs, or other potential obstructions.

If your CO alarm sounds, evacuate all family members to a safe location and call your local fire department, Madison said.

Additional information on carbon monoxide may be found at:

http://www.dos.state.ny.us/fire/COtoolkit.htm

Winter Home Protection Tips

All of that mild weather kind of spoiled us, but winter is hear.  Well technically it isn't yet, but it sure does feel like winter out there.  There are several things that you can do to minimize some of winter's biggest threats to your home. 

Snow Fall
Heavy snow accumulation can pose a threat to your home or business -- both as it builds up and as it melts. The three most important things to do are:

1. Watch for snow accumulation on the leeward (downwind) side of a higher-level roof, where blowing snow will collect. For safe removal that won't endanger you or damage your roof, consult a roofing contractor for a referral.  
2. Remove snow from basement stairwells, window wells and all walls. Melting snow can lead to water damage and moisture intrusion.
3. Keep your attic well ventilated to maintain a temperature close to that of the outdoors to minimize the risk of ice dams forming. A warm attic melts snow on the roof, causing water to run down and refreeze at the roof's edge, where it's much cooler. If ice builds up and blocks water from draining, water is forced under the roof covering and into your attic or down the inside walls of your house.

Melting Snow and Ice

Water intrusion and flood damage from melting snow and ice can threaten homes and businesses, but you can take these steps to help minimize the potential damage.

  

Immediately after the threat of physical danger has passed:

1. Make sure the building is structurally safe to enter or reoccupy.
2. Turn off electrical power. Do not use electricity until it is safe to do so.
3. Ensure that natural gas sources are safely secured.
4. Secure the exterior to prevent further water intrusion. This can include boarding up broken windows, making temporary roof repairs, sealing cracks or tacking down plastic sheeting against open gaps in walls or roofs.

When it's safe to begin cleanup:

1. Disconnect all electronics/electrical equipment and move it to a safe, dry location.
2. Remove as much standing water as possible from inside the building.
3. Begin to remove water-damaged materials immediately.
4. Ventilate the home as best you can with fans and/or dehumidifiers.
5. Contact a water extraction company, if necessary, for assistance.

By taking immediate action, you will reduce the amount of damage and increase the chance of salvaging usable materials. You'll also reduce the amount of rust, rot, mold and mildew that may develop, and lower the likelihood that the water will lead to structural problems.

 

Ice Dams

Ice dams are an accumulation of ice at the lower edge of a sloped roof. When interior heat melts the snow, water can run down and refreeze at the roof's edge, where it's much cooler. If the ice builds up and blocks water from draining off the roof, water is forced under the roof covering and into your attic or down the inside walls of your house.

  

To help reduce the risk of ice dams:

1. Make sure your gutters are clear of leaves and debris.
2. Keep the attic well ventilated so snow doesn't melt and refreeze on the roof's edge.
3. Make sure the attic floor is well insulated to minimize the amount of heat rising through the attic from within the house.  

Frozen/Bursting Pipes
Bursting pipes occur when frozen water causes a pressure buildup between the ice blockage and the closed faucet. Pipes in attics, crawl spaces and outside walls are particularly vulnerable to extreme cold. To keep water in your pipes from freezing:

1.  Fit exposed pipes with insulation sleeves or wrapping to slow heat transfer.
2. Seal cracks and holes in outside walls and foundations near water pipes with caulking.
3. Keep cabinet doors open to allow warm air to circulate around pipes.
4. Keep a slow trickle of water flowing through faucets connected to pipes that run through an unheated or unprotected space.

If you suffer damage from some of these winter hazards, you might be covered under your home, condo, or renters insurance.  To find out, you should contact your current company, or call us at 888-900-2173, and we can review your coverage for you.  Taking the steps to prevent these hazards will not only save you money from having to pay for your deductible or parts of the claims that aren't covered.  They will also save you money on your premiums for years to come.