What would happen if your home was destroyed and you were forced to rebuild after a total loss? Would your insurance cover it all? The answer is, as uneasy as it sounds, maybe! It all depends on if your insurance carrier is able to offer you extended or guaranteed replacement coverage. In other words, will they cover partial or all expenses to completely replace your home.

For example, if you happen to purchase a foreclosed home for $230,000, but in today’s economy it’s worth $270,000 to rebuild, you would want to opt for $270,000 coverage to insure your home is fully covered in the case disaster strikes. Otherwise, if you opted to insure your home for the purchase amount, you’d find yourself paying out of pocket an additional $40,000 to cover the remaining construction costs which in most cases could result in severe financial hardship.

It’s also important to point out that due to inflation and market volatility, building materials and labor are sure to rise with time. Sure they dip in price too, but you must prepare for worst case scenarios — the main purpose of insurance. Extended and guaranteed replacement coverage are vital options meant to protect you against unpredictable circumstances that may occur.

For the most part, companies offer homeowners a special home coverage endorsement — extended replacement coverage — that typically pays out an additional 25% or 50% over the dollar amount you insured on your home. In the unfortunate case your $270,000 home catches fire and burns to the ground, and is estimated to cost $300,000 to replace, extended replacement coverage will kick in and and pay the additional $30,000 to make you whole again.

Guaranteed Replacement Coverage

Guaranteed replacement coverage is the premier choice of coverage for homeowners. You can expect no cap on the dollar amount your insurance provider is willing to pay to rebuild your home due to total loss. Meaning, that in the event of catastrophic circumstances where your home valued at $270,000 is estimated rebuild cost is $400,000, your insurance company is responsible for the additional expense to ensure your home is renewed. For this reason, choosing a home policy that includes guaranteed replacement coverage is the best choice, despite all insurance companies offering this type of coverage.

Take note that these add-on endorsements are available to protect you against rising construction costs, not add additional square footage to your damaged home that weren’t there previous to the loss. Your main goal is to reduce the risk of rising costs should you experience an unplanned, devastating event.

To learn more about extended and guaranteed replacement coverage, please contact an insurance advisor at Bennett & Porter. We will help you determine an accurate amount of insurance protection for your dwelling.

We often forget that our auto insurance policies are contracts. Besides paying your premium on time, in order to keep your car insurance rates down you should abide by your car insurance company’s rules.

But how can you abide by the rules when you don’t even know what they are?

Here are 10 common scenarios that Insure.com readers often ask about. If any of these hit close to home, quickly fix the issue before you get in a pickle.

1. You haven’t added a licensed teen to your car insurance policy.
No one wants to raise their hand and offer to pay more for car insurance. But insurers are permitted to consider all household residents when they price a policy, including a teen. Withholding information about your teen driver from your car insurance company is a big no-no.

And insurers have ways of finding out. They can pull reports that identify “hidden” household members. One such report from LexisNexis looks for “undisclosed” newly licensed drivers between ages 15 and 25.  If your insurer finds out about your licensed teenager this way, it can revise your premiums to include the young driver, or decide it doesn’t want your business anymore.

If your insurer doesn’t find out about your teen until there is an accident, it still might cover the incident.  That would be a lucky outcome, but you’ll back premiums based on the teen driver. Or, your auto insurance company may say it’s not covering the teenager and is dropping your policy because of your failure to inform it.

2. You let your adult child take your car with her when she moved to another state.
Sure, it’s so much easier to put off a call to your agent and let your child move away with a family car. But when your car is being driven and garaged in a new area, the risks of you as a customer have changed. Car insurance companies expect to be informed about these changes.  If your daughter were in an accident, your insurer could say you concealed vital information about the vehicle’s location, deny your claim and cancel the policy.

If you want to do things the right way, add the child’s name to the car’s title.  Then your child can buy insurance for  the car in her own name and using her new address. This will also allow your child to register the car in her new state, which most states require.

3. You sold your car to your son but still carry the insurance on it.
Uh oh. In general, you can’t carry insurance on a car in which you don’t have an “insurable interest.”  Typically those with an insurable interest are the car’s owners, lienholders and co-signers – meaning those who would be affected financially if something happens to the car.

Since you are no longer the car’s owner, it’s time for the new owner — your child — to buy car insurance for the vehicle.  If he’s still a minor, you may have to be on the policy with him.  Minors typically must have a parent or guardian involved in the auto insurance contract.

You could face problems submitting a claim if you have failed to tell your insurance company about the ownership change. Or worse, the car insurance company could say you hid the change as a scheme to get lower car insurance rates, which would qualify as insurance fraud and a reason for it to deny claims and cancel the policy.

4. You want to finance and insure a car for a relative who lives out of state.
Auto finance companies want evidence that the car loan is in the same name as the insurance policy. Since you’re not the primary driver of the car, nor is the car at your residence, it is difficult, if not impossible, for you to insure the car.

You should contact the finance company to see if it will allow your relative to be the “named insured” on a policy.  If it agrees, your relative has the hurdle of finding an insurance company in her state that will permit her to insure a car she doesn’t own.  If she can find such a company, then she still has to list you and the finance company on the insurance as owner and lienholder, respectively.

If you carry insurance on the car without telling your insurer about the situation and your relative wrecks the vehicle, it’s very likely the accident wouldn’t be covered.  Your car insurance company is likely to call you out for misrepresenting who was driving the car and where it was located, and cancel the policy.

5. You lend your car to a friend for a few months and don’t notify the insurance company.
Your car insurance policy typically will cover a friend who drives your car occasionally, but it’s a different story when you loan your car out for a long period. The car is now housed someplace other than your residence, and someone else is acting as the primary driver of the car — both circumstances your car insurance company wants to know about.

If your insurance company’s rules allow, you may be permitted to add your friend as a driver to your auto policy, but most car insurance companies don’t want to add a person outside of the household.  If that is the case, your friend should consider insuring the car.  Some insurance companies will allow someone to insure a car that he doesn’t own, as long as the owner is listed on the policy.

If your friend crashes your car, your insurer can deny claims because you concealed pertinent information about the “real” driver and vehicle location. That can leave you and your friend on the hook for damages he caused.

6. You sold your car and the buyer is making payments but you’re still carrying the title and insurance.
Don’t keep your name and insurance on a car that another person possesses!

First, as the owner – because your name is still on the title — you have vicarious liability for the actions of the person driving the car that you “sold.”

Second, you’re paying for insurance but any claims might not be covered. Your car insurance policy normally covers cars and drivers of your household, not others.

If you’re in this situation, you should sign the title over to the new party. He can easily get insurance once he registers the car — and you will no longer be held responsible for his actions. To protect your interest in the car, make certain you’re listed as the lienholder on the car’s title and auto insurance policy.  That way you’ll be notified if he tries to sell the car or drop car insurance.

7. You’re delivering pizzas with your personal vehicle.
Most personal auto insurance policies exclude coverage if you use the vehicle to deliver items, whether it’s pizza, newspapers, packages or medical supplies. Insurance companies see unsavory risk in delivery drivers because they are constantly on the road.

If you want to be paid to deliver items, you should change to a business-use or commercial car insurance policy. If you don’t and you get caught driving for deliveries, you’re on your own to compensate others for damages they sustained — and the damages to your own vehicle.

8. You let an “excluded driver” drive your car.
Big mistake. When you put a named-driver exclusion on your policy it meant that the person listed is not covered under any circumstances and shouldn’t be driving your car.

So if that person gets behind the wheel of your car, even in an emergency, and causes an accident, you and the driver will be the ones to pay for any resulting injuries or property damage.

Hide your keys from any excluded driver in order to lower your risk of financial disaster.

9. You bought a new car weeks ago and haven’t told your insurer.
If you traded in a vehicle, then your car insurance policy likely extends the same exact coverage to your new car for a limited time. This means if you bought only liability on your old car, your new car would only have liability coverage.

The deadline for informing your insurer about the new car varies by insurer, but is typically 14 to 30 days. Here’s more about extending coverage to new cars.

Don’t bet on having automatic coverage, either; some car insurance companies don’t give you any.

And if you’re adding a car rather than replacing one, you should buy coverage for it before driving it off the lot.

If you’re outside the insurer’s automatic coverage period, or there is no extended coverage on your new car, and you’re in an accident, your insurance company won’t help you. You’ll be paying out-of-pocket for damages you do to your own car or others.

10. You haven’t told your insurance company that your live-in girlfriend drives your car.
Insurance companies hate it when you “forget” to tell them about a driver who lives with you or regularly uses your car. Insurers can’t charge you correctly if they don’t know about all licensed household members, including a girlfriend or spouse.

If you recently got married or moved in with someone, let the insurance company know immediately and have the person added to your policy as a driver. If you fail to do so, don’t be surprised if claims are denied if they cause an accident, or if you’re asked to pay back premiums based on the additional driver.

If your car insurance company believes you were intentionally hiding the driver – say your girlfriend has a bad driving record — then it may say you committed fraud by means of misrepresentation. This means your car insurance company can cancel your policy.

Source: http://www.insure.com/car-insurance/horrible-decisions-mess-up-car-insurance.html

Did you know that after experiencing a homeowners loss, rebuilding your home to meet current codes or demolishing what is left of it might increase your costs up to 50 percent? Certain communities have laws or building codes that greatly affect the reconstruction of damaged homes. These building codes change over time and they rarely become less demanding. If a windstorm or other loss event damages your home, these local ordinances may increase the cost to repair, demolish or rebuild your home and add to your out-of-pocket costs. Ordinance or Law Coverage can help protect you from increased costs due to these regulations.

Most homeowners policies will limit the amount of coverage for the following additional increased costs caused by adherence to current laws and ordinances.

• The construction, demolition, remodeling, renovation or repair of a building or other structure
• The demolition or reconstruction of the undamaged portion of a covered building or other structure
• The remodeling, removal or replacement of the portion of the undamaged part of a building or other structure needed to complete your repair

Here is an example of how the Ordinance or Law Coverage applies. Your home sustains damage to the roof when your Grand Oak tree falls into your living room during a windstorm. Roof repairs will probably now require costlier shingle replacement and minimally, hurricane roof straps or specific size roof nails. These additional and more expensive items will add significant costs to your repair bill. Ordinance or Law Coverage pays for those costs, which insurance carriers would otherwise consider an improvement to your property absent the coverage. Without this important endorsement, you must pay the additional costs. Add these costs to your deductible and you can see why this coverage can be so critical to your budget.

As the body of safety research grows, building codes reflect that new knowledge of how to make property safer and better able to withstand wind and other natural forces. Therefore, the older your home, the more susceptible it is to code upgrades after a loss. For example, a home built in 1995 would have had much less stringent local building codes governing your electrical, plumbing or roof systems. To bring a 1995 home up to today’s standards would cost much more than simply repairing the damage.

Ordinance or Law Coverage applies whether you suffer a partial or total loss to the structure. This valuable coverage can save you thousands of dollars in upgrades you would otherwise pay out of pocket. Depending on the state where your home is located, you can select Ordinance or Law limits of 10, 25 or 50 percent of your Coverage A Dwelling limit. For example, if the Dwelling amount on your home is $300,000 the 10% option will allow up to $30,000 in upgrades due to building code requirements; the 25% option will allow up to $75,000; and the 50% limit will allow for up to $150,000.

The worst possible time to learn of coverage restrictions is after you have suffered a loss. Talk to your agent today about this important coverage.

It’s scary to realize that some drivers on the road have no insurance or have insufficient coverage. But when you have uninsured/underinsured motorist coverage, you’ll have protection even if you’re in an accident with one of those drivers.

Key points about coverage for uninsured/underinsured motorists:

• As long as you’ve chosen sufficient limits on the policy, uninsured/underinsured motorist coverage can cover your medical bills and bodily injury resulting from an accident with someone who does not have sufficient insurance.
• Coverage extends to you, your family and your passengers.
• As a pedestrian, if you are hit by an uninsured driver, you can be covered.

The requirement for uninsured motorist coverage varies by state. In most states, it applies only to bodily injury coverage, but you can usually add uninsured/underinsured motorist property damage coverage to your policy as well. Ask your Bennett & Porter representative about the coverages available in your state.

D & O Liability definition: Coverage for defense costs and damages (awards and settlements) arising out of wrongful act allegations and lawsuits brought against an organizations board of directors and/or officers.

Your organization’s assets and the personal assets of its directors and officers are at risk with every decision you make, every day.

Why you and your organization need protection

All organizations, whether publicly or privately held, and the people who lead them, are vulnerable to a multitude of Directors & Officers (D&O) exposures. These can include securities litigation, regulatory actions, allegations of misrepresentation and other breaches of fiduciary duties. Mergers and acquisitions, signs of financial weakness and perceived conflicts of interest can all be triggers for shareholders, competitors, customers, employees and government entities to make devastating claims against directors and officers.

Directors and Officers claims have become increasingly common. Directors and officers themselves can be held personally liable for these claims. To attract and retain qualified executives and board members, it’s crucial to have a comprehensive insurance program in place. Seventy percent or more of all directors and officers have inquired about the amount and scope of their organizations’ D&O coverage.

Coverage highlights

Directors and Officers Liability policies have a broad definition of claim and cover the defense costs, settlements and judgments associated with claims. D&O policies not only help provide protection for the assets of the organization and the personal assets of its directors and officers, but also help protect the personal assets of a director or officer’s spouse, domestic partner or the deceased director or officer’s estate.

FACT: 36 percent of all organizations have reported D&O claims in the last 10 years (according to a 2012 Towers Watson Directors and Officers Liability Survey)

Published by: The Travelers Indemnity Company

There are many reasons you should protect yourself with Directors and Officers coverage, but the top 5 reasons are:

1. Directors and officers can be held personally liable for claims; organizations increasingly consider personal liability coverage as one of the most important aspects of their D&O program.
2. D&O liability claims related to regulatory actions are increasing for all types of organizations, representing 23 percent of claims in 2012.
3. Directors and officers increasingly desire additional assurances beyond corporate indemnification — 43 percent desire added protection in the event their company becomes bankrupt and/or insolvent.
4. Directors and officers and their respective organizations are susceptible to a wide range of claimants including shareholders, competitors, customers, employees and government entities.
5. D&O claims are increasingly common for private companies, public companies and nonprofits: 36 percent of all organizations reported claims in the last 10 years.

Directors and Officers Liability policies have a broad definition of claim and cover the defense costs, settlements and judgments associated with claims. D&O policies not only help provide protection for the assets of the company and the personal assets of its directors and officers, but also help protect the personal assets of a director or officer’s spouse, domestic partner or the deceased director or officer’s estate.

Information gathered by a 2012 Towers Watson Directors and Officers Liability Survey

Published by: The Travelers Indemnity Company