News
One day following a particularly nasty hailstorm, you receive a knock on your front door. It’s roofing contractors, and they can replace your roof at no cost to you – it’s covered by your insurance.
Suspicious? You should be.
Roofing contractors (the not-so-reputable kind) spring into action following a storm, coaxing homeowners into okaying work that may or may not be needed and may or may not be covered by their insurance. So, despite how genuine the contractors may seem, it’s smart to remain wary until you work out a few key details. These scenarios and tips should help you sort out any confusion.
Contractors: Want to Take a Quick Look at Your Roof
You: Should Decline
The problem with this scenario is, if you let dishonest contractors onto your roof, they might do more than just look for damage. They might go so far as to cause damage. Why? They want a reason to replace your roof. There’s money in it for them, remember? So, if they don’t see a valid reason, they may attempt to create one.
When representatives from your insurance company come out to take a look, they will likely know the difference between actual storm damage and artificial damage. And, since you only have coverage for the former, according to the terms of your policy, you may have to pay out-of-pocket to repair the latter. So, leave the initial roof inspection to your insurance company or to someone you know and trust.
Contractors: Insist on Starting Work Right Away
You: Should Research, Not Rush
So, the contractors want to begin work right away and handle the insurance details later. All you need to do is sign. Not so fast. You haven’t been in touch with your insurance company, you don’t know anything about the roofers and you likely haven’t had a chance to read the fine print – all red flags.
This is when you stop and ask for the roofers’ business card and references and tell them you may be in touch. Then contact your insurance company, which can likely recommend a reputable roofing contractor in your area. If you wish, look into the other contractors’ reputation online, such as with the Better Business Bureau or other online review sources.
Contractors: Say Your Insurance Company Will Pay the Entire Cost of a New Roof
You: Need to Hear This From Your Carrier, Not a Contractor
Sure, a contractor may say you’re entitled to a new roof because a storm went through the area or because your neighbor’s getting a new roof. However, a random contractor doesn’t know the specifics of your homeowners insurance policy. That’s why it’s important to start with your insurance company when facing the need for potential roof repairs or a potential roof replacement following a storm. This allows you to understand whether or not you have coverage for the scenario at hand. It also helps you know how much you may need to pay out of your own pocket, such as your deductible. And, isn’t that nice to know upfront?
Contractors: Want You to Assign Your Insurance Benefits to Them
You: Should Be Very Cautious
Say you assign your insurance benefits to roofing contractors, who claim this will make the whole process quicker and easier. The problem here is that you may end up being scammed. The contractor may pocket the insurance money and skip town before finishing your roof repairs.
The bottom line is this: Rushing into roof repairs or a roof replacement may leave you on the line for some or all of the costs. So, be wary of contractors going door-to-door in your neighborhood, and contact your insurance company at once if you suspect you have roof damage following a storm.
If you still find yourself hiring or interacting with a roofer, here are some tips:
5 Tips for Dealing With a Roofing Contractor
- Ask for the contractor’s license number (if your state licenses roofers) and insurance information. Also write down the person’s license plate number and, if possible, driver’s license number.
- If you allow unfamiliar contractors to inspect your roof, be sure to supervise them. However, it’s best not to let them onto your roof at all.
- Be especially wary of contractors who say replacing your roof won’t cost a thing. They may even claim they’ll pay your deductible for you.
- Never sign a contract with blanks. Get everything in writing: Cost, scope of work, time frame, guarantees, payment schedule and other expectations. And, read every contract carefully, paying particular attention to any “assignment of benefits” language.
- Don’t pay in full or sign a certificate of completion until the work is done and you’re satisfied with the outcome.
Finally, one last warning: Contractors may try to pull similar scams with windows, siding or driveways following a storm, so be wary.
We know it can all seem a little daunting. We just want you to be aware of some scenarios you may encounter so you can protect yourself. Because, while not all roofing companies engage in disreputable behavior, some of them certainly do.
So, remember, get in touch with your independent insurance agent or your insurance company first to deal with storm damage. Doing so may just help you avoid unsavory characters and contract conditions.
With pricey tuition to pay and books to buy, renters insurance isn't exactly something that most college kid's think about, but in some cases that could be a big mistake.
Students who live on campus typically don't have to worry about renters insurance: Their parents' homeowner's insurance policy should cover the loss or damage of most items as long as the policy includes so-called 'off-premise coverage.'
However, once you move off-campus and start paying rent, you are no longer covered by your parents' policy. While renting the Landlord will typically cover the building but not the tenant's belongings. The Landlord is not responsible for any of the tenant's damaged or stolen items. Also, if one roommate has a renters insurance policy, don't expect it to cover all the other roomates stuff, too. Most rental insurance policies only cover the belongings of the policyholder.
So what does renters insurance cover? There are three basic types of protection: personal possessions, liability and additional living expenses.
Personal possession protection covers your belongings if they are lost or damaged due to a fire, vandalism or theft among other things.
Liability protection kicks in if, say, your dog bites the neighbor, or someone slips and gets hurt while at a party at your place. It not only helps cover any medical expenses but, in some cases, can pay for your legal fees if you get sued.
Meanwhile, if you are displaced by a storm or a fire, additional living expenses coverage will typically cover the cost of a hotel, or a temporary rental until you can move back home.
The cost of renters insurance is typically pretty affordable -- on average, it costs $184 a year -- but the amount will vary depending on the location and size of the rental unit and how much coverage you need, according to the National Association of Insurance Commissioners.
With the kids heading back to school, you may be thinking about putting some of your older ones on wheels. But what are the best cars for a teen driver?
Coming up with the right model can be a challenge, but there are some important factors to keep in mind, safety first and foremost. So, while your teen might have a BMW, M3, Ford Mustang or Volkswagon Golf R high on their list, you're likely to look for something a bit more practical and affordable. You don't want to strain your household budget or stretch the thin wallet of a teen heading off to college. Affordability also involves more than just the up-front price. You also have to consider fuel and insurance costs. Teens typically get socked with hefty premiums, though you can bring that down with the right car. The good news is that it's possible to hand your teen driver keys to a car they'll enjoy and that you can afford and feel confident in as far as safety.
Below is a list of the top 10 cars for teens, accourding to a new study by Cars.com. The list, which is not ranked in order of preference, factors in total cost of ownership and only includes models that have earned a top safety rating from the Insurance Institute for Highway Safety.
1. Honda Fit
2. Kia Soul
3. Mazda 3
4. Chevy Sonic
5. Hyundai Elantra
6. Subaru Impreza
7. Toyota Prius
8. Volkswagon Golf
9. Jeep Renegade
10. Ford Focus
Click here to read more details about each vehicle.
When renting a vehicle, the last thing the salesman always asks is "Do you want to purchase insurance for this vehicle"? Many people believe they are covered but the spur of the moment question and the little doubt they have, the end up purchasing it anyway just to be safe. So, do you really need to buy rental car insurance or not?
Truthfully there isn't a one size fits all answer. However you can likely reach a conclusion you're comfortable with by considering the following three questions.
1. What Types of Rental Car Insurance Are Available?
Typically, car rental agencies will offer you four types of insurance to purchase:
- Collision damage waiver - The rental car company won't charge you for a damaged or stolen vehicle when you buy this.
- Supplemental liability protection - Electing this will ensure you're covered for costs to others if you cause an accident in the rental.
- Personal accident insurance - This coverage will pay for injuries or death of the driver and passengers of your rental car.
- Personal effects coverage - Reimburses you for stolen personal items while renting the car.
2. What Rental Car Coverage Might I Already Have?
Start with your personal auto insurance. It's likely that your policy will provide the same level of coverage for your rental as it does for your own car. That usually includes liability insurance, and, depending on the policy you purchased, may include collision, comprehensive and medical payments, too. There are exclusions, however. Some insurers won't cover rentals in a foreign country, or rentals that are being used for business. Get in touch with your independent insurance agent to verify your coverages.
Next there's your credit card. Most cards offer some degree of coverage, but it varies widely. Coverage is usually secondary, designed to step in and pick up where your auto insurance leaves off, and it tends to be mostly confined to collision, damage and theft. For coverage to apply, most cards require that you decline the rental company's collision damage waiver and pay for the car in full with the card that provides the protection. Again, contact your card company to find out exactly what is covered.
Then, consider your health and life insurance, too. If you’re in an accident involving a rental car and you have these policies, you likely have coverage for your own costs. Plus, with your homeowners insurance, you may have personal property coverage to help repair or replace valuable belongings that are lost, damaged or stolen while you’re in a rental. Your deductible and policy limits will apply, and the same goes for renters insurance or condo insurance.
3. What Rental Coverage Might I Be Missing?
In the event something does happen to the rental car, you may be looking at loss of use and diminished value fees, and your regular policy may not cover them. Loss of use is the income that the rental agency loses due to the vehicle being in the shop for repairs, and diminished value is the calculated reduction in a vehicle's resale value as the result of an accident. Credit cards sometimes cover these, but be aware that they may require documentation that rental agencies can be reluctant to provide.
So, before you rent your next vehicle, call your independent insurance agent and check with your credit card company. That way you'll be ready to make an informed decision when you get to the rental car counter.
Around the end of World War I, homeowners hired “door shakers” to walk around and check doors to make sure they were locked.
Home security is just a little bit different now.
Thanks to a perfect storm of expanding technology and decreasing costs, homeowners now have access to the types of tools and systems that previously only celebrities and the wealthy could obtain.
Here’s a rundown of some of the options you have to protect your home, from all-in-one systems to separate components for do-it-yourselfers:
Full Home Security Systems There are a number of companies that offer full-service security systems with central monitoring. These systems often include video surveillance, remote access, smoke and carbon monoxide detection and even medical alerts in case you have an emergency. Some include home automation tools so you can control lighting, heating, cooling and other appliances when you’re away from home.
Many systems can also send you alerts via text message so you know the kids are home from school safely, for example.
Smart Cameras Installing cameras used to mean dealing with bulky equipment and yards of wiring. Today, however, newer cameras are unobtrusive, wireless and capable of much more than ever before. Some even use motion activation, so they only record when there’s a reason to in order to save data storage space and battery power.
Keyless Entry Systems Even items as basic as the locks on your doors are starting to be impacted — and improved — by technology. You might not think you need an entry system that relies on a code or a smartphone, but it can come in handy at times. Say, for example, you need to let a trusted repairman into your home while you’re away, but you don’t want to risk hiding a key outside. With a keyless system (or a hybrid version that uses both keys and codes), you simply provide a temporary code for the repairman to use.
Home Automation Have you ever forgotten to leave a light on while you’re away? Burglars thrive in the dark, and having lights on both inside and outside your home, along with noise from televisions, radios, etc., can be powerful deterrents. Thankfully, you can now turn these things on and off from anywhere in the world. It doesn’t take much to get started. At least one home automation product plugs into the power outlets you already have. You can then control that outlet’s power remotely through a smartphone app.
Of course, there are still some low-tech tools and techniques you can use to deter crime, including motion-activated lighting outside. Don’t leave valuables out in plain sight, and make sure your windows and doors are locked each night. Plus, there’s always the security system that will love you back: a watchdog.
However, if high-tech is more your style and you’re into gadgets, you might find that getting set up with the latest in home security is fun. And, if you’re into saving money, many insurance carriers offer home insurance discounts for having specific home monitoring systems. Check your policy or ask an agent for details.