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home insurance

Use these guidelines to protect your home and your assets with adequate insurance coverage

If disaster strikes, you'll want enough homeowners insurance to rebuild the structure of your home, to help replace your belongings, to defray costs if you're unable to live in your home and to protect your financial assets in the event of liability to others. Use these guidelines to help determine the coverage and amounts you need.

Determine how much insurance you need for your home's structure

home insuranceStandard homeowners policies provide coverage for disasters such as damage due to fire, lightning, hail and explosions. Those who live in areas where there is risk of flood or earthquake will need coverage for those disasters, as well. In every case, you'll want the limits on your policy to be high enough to cover the cost of rebuilding your home.

The price you paid for your home—or the current market price—may be more or less than the cost to rebuild. And if the limit of your insurance policy is based on your mortgage (as some banks require), it may not adequately cover the cost of rebuilding.

While your insurer will provide a recommended coverage limit for the structure of your home, it’s a good idea to educate yourself as well. To make sure your home has the right amount of structural coverage, consider:

Major factors that will impact home rebuilding costs

  • Local construction costs
  • The square footage of the structure

For a quick estimate of the amount of insurance you need, multiply the total square footage of your home by local, per-square-foot building costs. (Note that the land is not factored into rebuilding estimates.) To find out construction costs in your community, call your local real estate agent, builders association or insurance agent.

Details that can impact home rebuilding costs

  • The type of exterior wall construction—frame, masonry (brick or stone) or veneer
  • The style of the house, for example, ranch or colonial
  • The number of bathrooms and other rooms
  • The type of roof and materials used
  • Other structures on the premises such as garages, sheds
  • Special features such as fireplaces, exterior trim or arched windows
  • Whether the house—or a part of it—was custom built
  • Improvements you've made that have added value to your home, such as the addition of second bathroom, or a kitchen renovation

Other considerations

Whether or not your home is up to code

Building codes are updated periodically and may have changed significantly since your home was built. In the event of damage, you may be required to rebuild your home to the new codes and homeowners insurance policies (even a guaranteed replacement cost policy—see below) generally won't pay for that extra expense. If you suspect that elements of your home are not up to current building codes, consider getting an endorsement to your policy called an Ordinance or Law, which pays a specified amount toward bringing a house up to code during a covered repair.

Whether your home is older with hard-to-replace features

Lovely, special features on older homes—like wall and ceiling moldings and carvings—are expensive to recreate and some insurance companies may not offer replacement policies for that reason.

If you own an older home, you may have to buy a modified replacement cost policy. This means that instead of repairing or replacing features typical of older homes—like plaster walls—with like materials, the policy will pay for repairs using today's standard building materials and construction techniques.

Allowing for possible increased cost of building materials

Inflation can impact rebuilding costs. If you plan on owning your home for a while, consider adding an inflation guard clause to your policy. An inflation guard automatically adjusts the dwelling limit to reflect current construction costs in your area when you renew your insurance.

After a major catastrophe such as a hurricane or tornado, construction costs may rise suddenly because the price of building materials and construction workers increase due to the widespread demand. This price bump may push rebuilding costs above your homeowners policy limits and leave you short. To protect against this possibility, a guaranteed replacement cost policy will pay whatever it costs to rebuild your home as it was before the disaster. Similarly, an extended replacement cost policy will pay an extra 20 percent above the limits (possibly more, depending on the insurance company).

Determine how much insurance you need for your possessions

Most homeowners insurance policies provide coverage for your belongings at about 50 to 70 percent of the insurance on your dwelling. However, that standard amount may or may not be enough. To learn if you have enough coverage:

Conduct a home inventory of your personal possessions

In order to accurately assess the value of what you own, it's highly advisable to conduct a home inventory. A detailed list of your belongings will not only help you figure out how much insurance you need, but it will also serve as a convenient record. In the event any or all of your stuff is stolen or damaged by a disaster an inventory will make filing a claim much easier.

There are several apps available to help you take a home inventory, and our article on how to create a home inventory can help, as well.

While you're reviewing your possessions, think about whether you want to insure them for actual cash value (where the policy would pay less money for older items than you paid for them new) or for replacement cost (which would cover to replace the items). The price of replacement cost coverage for homeowners is about 10 percent more but is generally a worthwhile investment in the long run. (Note that flood insurance for belongings is only available on an actual cash value basis.)

If you think you need more coverage, contact your insurance professional and ask about higher limits for your personal possessions.

Take stock of your expensive items

There are limits on how much a standard homeowners insurance policy will cover for items such as jewelry, silverware, collectibles and furs. For example, jewelry coverage may be limited to under $2,000. Some insurance companies may also place a limit on what they will pay for computers.

Check your policy (or ask your insurance professional) for the limits of your coverage for any expensive items. If your home inventory includes items for which the limits are too low, consider buying a special personal property floater or an endorsement. This will allow you to insure valuables individually or as a collection, with significantly higher coverage limits.

Determine how much additional living expense insurance you need

Additional Living Expenses (ALE) is a very important feature of a standard homeowners insurance policy. If you can't live in your home due to a fire, severe storm or other insured disaster, ALE pays the additional costs of temporarily living elsewhere. It covers hotel bills, restaurant meals and other living expenses incurred while your home is being rebuilt.

If you rent out part of your house, this coverage also reimburses you for the rent that you would have collected from your tenant if your home had not been destroyed.

Many policies provide coverage for about 20 percent of the insurance on your house. But ALE coverage limits vary from company to company. For example, there are policies that provide an unlimited amount of coverage, for a limited amount of time, while others may only set limits on the amount of coverage. In most cases, you can increase ALE coverage for an additional premium.

Determine how much liability insurance you need

The liability portion of homeowners insurance covers you against lawsuits for bodily injury or property damage that you or family members or pets cause to other people, as well as court costs incurred and damages awarded.

You should have enough liability insurance to protect your assets. Most homeowners insurance policies provide a minimum of $100,000 worth of liability insurance, but higher amounts are available and, increasingly, it is recommended that homeowners consider purchasing at least $300,000 to $500,000 worth of liability coverage.

If you own property and or have investments and savings that are worth more than the liability limits in your policy, consider purchasing a separate excess liability or umbrella policy.

Consider an umbrella or excess liability policy

Umbrella or excess liability policies provide coverage over and above your standard home (or auto) liability policy limits. These policies start to pay after you have used up the liability insurance in your underlying policy. In addition to providing additional dollar amount coverage, umbrella or excess liability often offers broader coverage than standard policies.

The cost of an umbrella policy depends on how much underlying insurance you have and the kind of risk you represent. The greater the underlying liability coverage you have, the cheaper the umbrella or excess policy. To write an umbrella or excess policy, most companies will require a minimum of $300,000 underlying liability insurance on your standard homeowners policy.

Source: Insurance Information Institute

family life insurance

You’ve purchased life insurance as part of your estate planning efforts. You deserve to be commended for taking this step, and certainly there is a temptation to file away your policy and forget it.  However, there are a few key things you should do right away after buying life insurance to ensure that in the event of a tragedy, your loved ones will easily be able to receive the money you want them to have.

1. Discuss it

While life insurance is personal, it’s also something to discuss with your loved ones. Certainly use your discretion and judgement, as there may be individuals who you feel should not know. If you have an executor, he/she should be aware of your plans, and often the beneficiary is informed. Your loved ones can’t be protected if they don’t know the protection exists. 

Typically, beneficiaries, who will receive a life insurance payout, are asked in advance as part of your planning process.  If you haven’t previously discussed it, you should tell them now. By being open and clear about your plans, you can provide them with basic information so that they know how they are protected and where to locate documents in the event of your passing.

2. Safely store your documents

Keeping your life insurance and other end of life planning documents safe is critical.  Make copies of the originals in case they are lost or damaged. Be sure to store the original and copies in two or more different place, so if something happens that destroys copies in one location you have a backup elsewhere.

Life InsuranceStoring at home – At home there is always the risk of documents being destroyed by fire or other natural disaster. Keep documents in a fireproof/waterproof safe or chest.  Just be sure your executor has the key or combination in case they need access. But be sure to find a way to store documents off site, too.

Storing in safe deposit box – This is a traditional way that people have chosen to store documents and valuables off site; however, even if your executor has a key and is authorized, a bank may secure the box after your death and require a court order to open it.

Digital storage – Keeping digital copies can be a wise option.  Scan your policy and other documents and keep them on your computer. You may want to back up to an external thumb drive. Online storage resources like Dropbox , Google Drive and others provide offsite storage for important documents in case your computer fails or is damaged.  Just be sure that there is a way for your executor or other trusted person to also know how to access documents.

3. Leave instructions…leave a ‘paper’ trail

Leave written instructions about what to do in the event of your death.  Some refer to this as a “love letter” to your family and loved ones. Clearly outline with detail what steps need to be taken upon your death including:

  • where important paperwork is stored as well as how to access it if passwords or keys are required. 
  • describe the documents and what to do with them including details they will need.
  • provide contact information

If you need help preparing such a document, ask your insurance agent, accountant or legal advisor for assistance. Providing this guidance will help your executor/family to navigate more easily during an emotional time.  

Other future planning issues to think about include having an up to date will, health care proxy, power of attorney and other legal documents.  If you haven’t yet made such preparations and don't already have a provider you trust, please let us know.  We can provide you with a list of options.

4. Don’t just file and forget it

While you may be set for planning for the moment, your life is always changing.  If you change jobs, have a child, move to a new home, enter a different stage of life where kids are grown, etc., your needs can change requiring updates to your life insurance plan.  Issues to keep in mind:

Beneficiary changes – There are a variety of life events that can result in a decision to change your life insurance beneficiary. Your insurance company needs to know your intentions so that the loved one(s) you want to protect receive insurance funds.

Moving – Update your insurance agent with your current contact information.  This is important to ensure that premiums are paid on a timely basis so that your policy doesn’t lapse or if any other issues/opportunities arise.

Policy review  – Every 3 years or so, it’s smart to talk to your agent.  Together you can discuss anything that may have changed and review your needs to ensure your current policy is still the best fit for you. There might be different policy options to consider or perhaps you need to change coverage amounts. If you become disabled or have financial challenges, contact your agent as your policy may have options that can assist you depending upon how it is structured.

Taking the extra time every now and then to consider your plan helps ensure your loved ones stay properly protected. 

 

NEED TO PURCHASE OR REVIEW LIFE INSURANCE PROTECTION?

> Click to request a review or quote

 

create home inventory

Every homeowner, renter and college student should have an inventory of their possessions. Just imagine…if you had a fire or burglary, would you be able to remember everything you own and what it cost? Having an inventory can save you time, money and stress if you have to make a claim.

get started…a partial inventory is better than none

Set a time goal. Setting a deadline helps keep you on track.

Break it up into pieces. Don’t overwhelm yourself by trying to do it all at once. Go room by room. Start with your most valuable possessions. 

Get help. Have someone help you take the inventory and review it. 

home inventoryhow to tips 

create a list

Find a method that works for you. Using a computer, can make storage, duplication and updates of your inventory easy. If you don’t have a PC, paper works fine, too.  Click below for sample home inventory worksheets:

There is even a new iPhone app from the National Association of Insurance Commissioners myHOME Scr.APP.book app. The app will guide you through capturing images, descriptions, bar codes and serial numbers, and then storing them electronically for safekeeping. The app even creates a back-up file for e-mail sharing.

what to document

Describe all items noting make, model, where purchased and price paid as applicable. List serial numbers for expensive electronics and major appliances. Count up clothing items by category noting high value items. Keep receipts or appraisals with your list if you have them.

take photos or video

Take pictures and/or video of everything using the time stamp feature if available. Label all photos with descriptions. Digital photos are inexpensive and easy to store. Video is great to give verbal descriptions of items. You may want to do this step first to create a quick inventory.

document high value items  

Items worth over $500 should be described in detail and photographed. High value items may need to be insured separately since home policies have certain personal property limitations.

safely store your inventory

Keep a copy handy for yourself. But most importantly, store your inventory documentation away from your home in a safe deposit box or with some one you trust.  

keep it up to date!

Once you’re done, update your inventory when you make big purchases. It’s a good idea to review your list at least every couple years or when you move. When you’ve completed your inventory, talk with us to be sure that you have enough insurance to cover all your possessions.

diamond ring

Imagine how you’d feel if you looked down and saw the stone missing on your diamond ring? Would it be covered by your homeowners', condo owners' or renters' policy? Unless you have the ring "scheduled" on your policy, the answer is probably NO. 

Most home/condo/renter policies provide coverage only in specific situations (named perils) listed on your policy, i.e. fire, theft, etc.  In the the above situation, the stone simply fell out and was accidentally lost, which is not a covered situation by most standard policies.

Even if you're not worried about accidental loss and are comfortable with having coverage only for the name perils, you also need to consider that home/condo/renter policies generally limit coverage for jewelry losses in a theft situation to $1,000—$3,000 per incident depending on the policy. So, if your house is broken into and your jewelry is stolen you may not have coverage for the full value.

The best way to insure valuable jewelry and other items is to have them "scheduled" on your home/condo/renter policy, which provides broader coverage. Scheduling expands covered loss situations as well as increases your theft dollar amount limit for the listed items.

To discuss coverage options for your valuables and obtain a quote, take a moment to complete a scheduled valuables quote request.

 

NOTE: The information provided here is a general description and should not be relied upon as being complete, correct or accurate for every situation. All coverage information is subject to policy provisions, endorsements and may be subject to your meeting underwriting qualifications.

life insurance options

 

The decision to protect your loved ones is easy. Where people sometimes struggle is deciding whether they want term or permanent insurance. Your decision will be guided by what you want it to accomplish for those you’re protecting and will balance the factors of:

life insurance optionsCost – What you pay for the protection.

Time – How long you will be insured.

Face Value – How much money your beneficiaries receive upon your death.

Cash Value – How much money can be received by withdrawing, borrowing or cashing in the policy.

Your Murphy Insurance trusted associate will help you determine what makes the most sense based on your overall needs and budget. It may turn out that the best solution for you is a combination of the two types using term insurance to protect for short-term expenses and permanent insurance policy for long-term concerns. 

Term Life Insurance

  • Least expensive life insurance protection since there is no “cash value” component.
  • Best for filling a temporary obligation, i.e. mortgage, supporting children until they can become financially independent, college tuition, etc.
  • Available in 5, 10, 15, 20 or 30 year "terms". Get protection for exactly the time you need.
  • Level premiums guaranteed not to increase during term.
  • Generally flexible payment schedule monthly, quarterly, semi-annual or annual.
  • Can’t be cancelled as long as you pay your premiums.
  • Pays a death benefit to your beneficiaries, which is generally income tax free.
  • Can convert some term policies into a permanent policy so use it as a starter for getting the coverage you need now and later convert it so that you can build “cash value” for the future.
  • May have the option of guaranteed renewal, which allows you to extend coverage beyond the initial term. The rate may change, but this feature can be very important if you should be come uninsurable during the policy term.

Permanent Life Insurance

  • Doesn’t expire and offers lifetime protection.
  • Can build tax-deferred cash value depending on how you set up your policy.
  • Pays a death benefit to your beneficiaries, which is generally income tax free.
  • Ability to access cash value either through withdrawals or loans to help with education, emergencies or as retirement income supplement.
  • Can cancel at anytime and receive the current cash
  • Option of choosing a “universal life” policy which can provide additional flexibility allowing you to make withdrawals or skip payments as long as the cash value of your account is sufficient to cover the insurance costs. 

NOTE:  The above discussion does not address Variable Life Insurance products.  This information is only a general description of the available coverages and is not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements. Some coverage may be subject to individual insureds meeting underwriting qualifications and to availability within a state.   For further information contact a Murphy Insurance Agency Associate.

Independent Contractors

 

Does your business use “independent contractors”? If so, are you in compliance with Massachusetts Independent Contractor Law (MICL)? (M.G.L. c. 149, §148B) Established in 1990, the law initially focused on the construction industry; however, changes in 2004 created a very strict “three prong test”, which expanded implications to many other types of businesses. As a result, many businesses that have used “independent contractors” can no longer classify these workers as such.

Three Prong Test

In order to be classified an “independent contractor”, a worker must meet ALL three of the following criteria:

  1. the worker is free from employer’s control and direction in performing the service, both under a contract and in fact;
  2. the service provided by the worker is outside the employer’s usual course of business; and
  3. the worker is customarily engaged in an independent trade, occupation, profession, or business of the same type.

What Should Businesses Do?

Companies using independent contractors need to re-evaluate these relationships to determine whether the worker classification is proper under the MICL. After the evaluation, it may become clear that certain workers are misclassified under the MICL test and should be treated as employees. If an employer identifies an issue but does nothing, they risk stiff penalties as noncompliance with the MICL is not taken lightly.

The Attorney General can issue civil citations and institute criminal prosecution for both intentional and unintentional violations of the MICL. Willful violations can result in substantial fines or possible imprisonment. In some instances, fines levied may be in triple damages.

Because of this law, many businesses may stop using certain (or all) independent contractors, or decide to change the status of these workers to employees. While independent contractors are important to many businesses, the MICL and three-prong test make improper classification a greater risk that Massachusetts businesses must address.

Get more information on the Massachusetts Independent Contractor Law.

 

cyber liability insurance

The Internet has changed the way most of us do business and has increased liability exposures. If any of the items listed below apply to your business, you most likely have Cyber Liability exposures.

  • you communicate by email
  • you provide information or services through a website
  • you conduct e-commerce
  • you store and use customer information electronically

why be concerned?

data breach insuranceWhile there are many publicized hacking attacks against large companies reported in the news, smaller companies face increasing computer liability risks, too.  Almost every business uses technology in some way, and your business can be held liabile if certain types of information are compromised.  It doesn't have to be a hacking attack; it could be the loss or theft of a smartphone or laptop that could expose your business to liability. Privacy and data security risks are constantly change and increasingly regulated by laws such as the Massachusetts Personal Information Privacy law, MA 201 CMR 17. In addition, given the number of people and businesses browsing the Internet, the possible pool of plaintiffs is immense. A single legal action could inflict significant financial damage, and traditional liability products do not address Internet exposures and the risks involved in Internet business activities.

Cyber liability risks are evolving rapidly with new risk scenarios emerging all the time.  Insurance experts regard cyber risks to be greater than risks related to fraud or theft.  Given this situation, your business can take a variety of steps to protect itself and limit exposure such as:

  • Installing, maintaining and updating security software and hardware
  • Developing, following and publicly posting a data privacy policy
  • Regularly backing up data at a secure offsite location
  • Hiring an IT security services vendor
  • Using cloud computing services
  • Obtaining cyber liability insurance

what are your cyber liability risks?

If your computer systems are hacked, or customer, partner or employee information is lost, stolen or compromised by a security failure or data breach, the costs of response and remediation can be significant. Here are some of the costs your business could incur:

  • Liability—Your business may be liable for costs incurred by customers and others that arise from a IT-related breach or cyber attack.
  • Notification expenses— Many states require your business to notify customers stored if a breach of personal private data occurs or is suspected.  The cost can be high especially if you have a many customers.
  • System recovery—The costs to repair/replace computer systems and lost data can be significant.  If a breach results in your company being unable to operate while your systems are down, you could incur additional losses.
  • Lawsuits—Class action lawsuits filed on behalf of customers whose data and privacy were compromised. The larger the breach; the larger the liability and associated costs.
  • Regulatory fines—Several federal and state regulations require businesses and organizations to protect consumer data. If a data breach results from your business’s failure to meet compliance requirements, you may incur substantial fines.
  • Reputation damage— Your business' reputation and customer trust may be significantly damaged.

what is Cyber Liability insurance?

Cyber Liability protection addresses the first- and third-party risks associated with e-business, the Internet, networks and informational assets. The category of Cyber Liability includes security breaches; data theft; virus transmission; privacy issues; copyright, trademark and intellectual property infringement; libel or any other issues that first parties can pass to third parties via the Internet. Some of the types of claims that may occur include:

  • Accidental release of confidential customer information
  • Spreading a virus into a customer’s computer system
  • Theft of customer’s credit card or banking account numbers
  • Identity theft resulting from data breach
  • Derogatory comments made online about a competitor by an employee
  • Denial of service attack hacking
  • Electronic data extortion or destruction
  • Interruption of business operation due to system being down
  • Webmaster uses another site's content in site development

While the exposures outlined above are not all inclusive, and no policy covers every risk, Cyber Liability insurance is of growing importance if any of the above situations applies to your business. Contact us for more information about obtaining cyber liability coverage for your business.

Additional Resources

NetDiligence 2019 Cyber Claims Study (download pdf)

Top 5 Cyber Risks for Businesses

MA 201 CMR 17 Compliance

MA 201 CMR 17 FAQs (download pdf)

 

identity protection

Identity theft is the act of taking someone’s personal information and using it to impersonate a victim, steal from bank accounts, establish phony insurance policies, open unauthorized credit cards or obtain unauthorized bank loans. In some more elaborate schemes, criminals use the stolen personal information to get a job, rent a home or take out a mortgage in the victim’s name.
 
identity theftClose to half of identity theft cases are the result of a lost or stolen wallet, checkbook, credit card or other physical document. But as online shopping becomes increasing popular, it can also pose an identity risk. 
 
Victims of identity theft are often left with lower credit scores and spend months or even years getting credit records corrected. They frequently have difficulty getting credit, obtaining loans and even finding employment. Victims of identity theft fraud often travel a long and frustrating road to recovery; depending on the severity of the identity theft fraud damage, the recovery process can take anywhere from a few weeks to several years.
 
Most homeowners and renters policies provide coverage for theft of money or credit cards; however, the amount of coverage is limited (usually $200 in cash and $50 on credit cards). Once you have reported the loss or theft of your credit card to the issuing company, you are responsible for only $50 of unauthorized use.
 
Some companies now include coverage for identity theft as part of their homeowners insurance policy. Check your policy to find out. Others sell it as either a stand-alone policy or as an endorsement to a homeowners or renters insurance policy which can run about $25-$50 annually. Identity theft insurance provides reimbursement to crime victims for the cost of restoring their identity and repairing credit reports. It generally covers expenses such as phone bills, lost wages, notary and certified mailing costs, and sometimes attorney fees (with the prior consent of the insurer). Some companies also offer restoration or resolution services that will guide you through the process of recovering your identity.
 
Use of stolen credit card numbers is among the most common forms of identity theft, but some schemes use electronic means, including online scams like ‘phishing’, in which thieves use email inquiries purporting to be from financial or other online organizations, to obtain sensitive account information. Others might use more old-fashioned methods, such as ‘dumpster diving’—rooting around in people’s garbage to collect financial information.
 
Many credit card companies are now using radio-frequency identification (RFID) chips in their credit cards instead of magnetic stripes. The advantage is quicker, more efficient transactions, especially those carried out at traditionally cash only retail outlets, such as fast-food restaurants or convenience stores. However radio frequency identification may make it possible, in some cases, for identity thieves to use a simple electronic device to capture the information. The scariest part is that it can happen right in your presence, without you even knowing it.

Tips for Avoiding Identity Theft

  • Keep the amount of personal information in your purse or wallet to the bare minimum. Avoid carrying additional credit cards, your social security card or passport unless absolutely necessary.
  • Guard your credit card when making purchases. Shield your hand when using ATM machines or making long distance phone calls with phone cards. Don’t fall prey to “shoulder surfers” who may be nearby.
  • Always take credit card or ATM receipts. Don’t throw them into public trash containers, leave them on the counter or put them in your shopping bag where they can easily fall out or get stolen.
  • Do not give out personal information. Whether on the phone, through the mail or over the Internet, don’t give out any personal information unless you have initiated the contact or are sure you know who you are dealing with and that they have a secure line.
  • Proceed with caution when shopping online. Use only authenticated websites to conduct business online. Before submitting personal or financial information through a website, check for the locked padlock image on your browser’s status bar or look for "https://" (rather thanhttp://) in your browser window. If you have any concerns about the authenticity of a Web page, contact the owner of the site to confirm the URL.
  • Be aware of phishing and pharming scams. In these scams, criminals use fake emails and websites to impersonate legitimate organizations. Exercise caution when opening emails and instant messages from unknown sources and never give out personal, financial or password related information via email.
  • Make sure you have firewall, anti-spyware and anti-virus programs installed on your computer. These programs should always be up to date.
  • Monitor your accounts. Don’t rely on your credit card company or bank to alert you of suspicious activity. Carefully monitor your bank and credit card statements to make sure all transactions are accurate. If you suspect a problem, contact your credit card company or bank immediately.
  • Order a copy of your credit report from each of the three major credit bureaus. A new law that took effect December 1, 2004, entitles you to one free credit report per year. Your credit report contains information on where you work and live, the credit accounts that have been opened in your name, how you pay your bills and whether you've been sued, arrested or filed for bankruptcy. Make sure it's accurate and includes only those activities you've authorized.
  • Place passwords on your credit card, bank and phone accounts. Avoid using easily available information like your mother's maiden name, your birth date, any part of your Social Security number or phone number, or any series of consecutive numbers. If you suspect a problem with your credit card, change your password.
  • Shred any documents containing personal information such as credit card numbers, bank statements, charge receipts or credit card applications, before disposing of them.

In order to make it more difficult for identity thieves to open accounts in your name, you can also contact the fraud department of any of the three credit reporting agencies to place a fraud alert on your credit report—by law, the agency you contact is required to contact the other two agencies. The fraud alert tells creditors to contact you before opening any new accounts or making any changes to your existing accounts. The three major credit bureaus are EquifaxTransUnion and Experian.

If you are the victim of a crime, report it to the credit card company and police immediately. Ask for a copy of the police report. You will need it if you want to file an insurance claim or report the crime to the FTC for their assistance. Victims of identity fraud can contact the FTC online or at 877-IDTHEFT.
 

Additional Resources

FEDERAL TRADE COMMISSION (FTC)
The FTC offers help to victims. File your case with the FTC Consumer Response Center. Include your police report number. Use the FTC uniform affidavit form.
877-ID-THEFT

PRIVACY RIGHTS CLEARINGHOUSE (PRC)
619-298-3396
 

related links

Fact & Statistic | Identity Theft and Cybercrime

 

Source: Insurance Information Institute

Rental car insurance

car rental

Protect yourself while renting—without wasting money

If you're looking to rent a car, depending on your needs and location, there are a number of alternatives—the traditional brick-and-mortar companies, peer-to-peer car services and car sharing programs—each with its own insurance parameters. It pays to understand your existing coverage first, and then look at your rental insurance options.

No matter what company or what kind of company you're renting from, the most important step is to read and understand the car rental or car sharing agreement. Most companies clearly state what is covered as well as the supplemental coverage that can be purchased. If you don't understand, have the rental or car sharing company representative walk you through.

If you're renting a car, check your own coverages first

Before you enter an agreement with any type of rental service, maximize use of the insurance you're already paying for and avoid paying for duplicate insurance.

If you own or lease a car and/or have homeowners insurance, call your insurer to first check the following:

  • How much coverage you currently have on your own car – In most cases, whatever auto insurance and deductibles you have on your own car would apply when you rent a car (providing you are using the rental car for recreation and not for business).
  • If you still have collision or comprehensive – If you dropped these coverages on your own car as a way to save money on your car insurance, you may not be covered if your rental car is stolen or damaged. Insurance rules vary by state, so it is best to check with your insurance professional for the specifics of your policy.
  • Whether your homeowners or renters insurance covers the loss of possessions – These policies (not your car insurance) generally cover your belongings if they are damaged or stolen out of your vehicle.

The credit card you use to rent a car may also provide some insurance. Though coverage is likely to be limited—for example, it may only cover the deductible if you make a claim—it's worth knowing what protections it will provide.

  • Know that benefits differ – Insurance coverage can depend on the company or bank that issues the card or even the level of card. For example, a platinum card may offer more robust coverage than a green card. If you have more than one card, you may want to compare what insurance they offer for car renters.
  • Contact the credit card issuer to find out what they cover – If you are depending on a credit card for insurance protection, ask the company or bank that issued the card to send you their coverage information in writing.
  • Credit card insurance benefits are usually secondary – That is, they will kick in after your personal insurance policy or the insurance coverage offered by the rental car company are utilized.

Insurance if you're renting from a brick-and-mortar car rental

Brick-and-mortar car rental companies are generally found at airports, train stations or other locations where travelers converge. These traditional rental companies allow you to simply reserve or select a vehicle from one of the many generally available on any given day. The insurance you'll be offered is fairly standard (though, like all car insurance, it varies by state).

Depending on what type of auto and/or homeowners insurance you carry, you may want to consider some of the insurance coverage provided by the rental car company. While auto insurance regulations, costs and coverage will vary by state and insurer, consumers renting from traditional companies can generally choose from the following coverages:

  • Loss Damage Waiver (LDW) – Also referred to as a collision damage waiver, an LDW is not technically an insurance product—it is designed to relieve or “waive” renters of financial responsibility if their rental car is damaged or stolen. Waivers may also provide coverage for “loss of use"*, in the event the rental car company charges for the time a damaged car cannot be used because it is being fixed, as well as towing and administrative fees. (see note at bottom) The LDW may become void if the accident was caused by speeding, driving on unpaved roads or driving while intoxicated. However, if you carry comprehensive and collision auto insurance, you may already be covered for damage to a rental car.
  • Liability Insurance – By law, rental companies must provide the state-required minimum amount of liability insurance coverage—often this does not provide enough protection. If you carry your own auto insurance and have opted for higher liability limits (which is recommended), you’ll be adequately covered. Non car-owners who are frequent renters have the option of purchasing a non-owner liability policy, which can provide the additional liability needed.
  • Personal accident insurance – This covers the driver and passengers for medical and ambulance bills for injuries caused in a car crash. Whether or not you should consider this depends on your health insurance and the personal injury protection (PIP) provided by your auto insurance, which will likely cover medical expenses.
  • Personal effects coverage–This provides insurance protection for the theft of items from a rental car. Consider this if you do not carry homeowners or renters insurance to cover this type of loss.

Insurance if you're using a car sharing service

With car sharing programs, for a monthly or annual membership fee, consumers can pick up a vehicle at a wide range of locations for periods ranging from minutes to days. These programs are popular in urban settings where owning a car can be expensive or difficult, but where it's convenient have a car available when it's needed. Coverage options vary widely, but there is usually some insurance included.

The insurance offered by these types of companies is not standardized so read the insurance coverage information carefully (it can usually be found on the service's website). If you have any questions, call the company's customer service line. And contact your auto insurer if you feel you need more information to make an educated insurance coverage decision.

  • Car sharing programs (like ZipCar) generally include insurance costs in the fee. However, if the car is involved in a collision or is stolen, the renter may be billed for a specific dollar amount that is stated in the membership agreement. For an additional cost, customers can purchase a “waiver” to avoid paying the accident fee.
  • Many car sharing programs limit coverage for young drivers to the minimum state required amount of liability. Renters under the age 21 should read the insurance coverage carefully. If it's not adequate to their needs, they can look into whether their parents’ auto insurance would cover them for the difference, or purchasing their own non-owner liability policy.

Insurance if you're renting from a peer-to-peer service

Peer-to-peer car rental networks enable consumers to rent personally owned cars from others. Insurance coverage varies widely, depending on location and service.

  • Peer-to-peer rental services (like Turo) may offer a range of insurance options and, under some circumstances, the driver may decline coverage.

Source:  Insurance Information Institute

*Additional note from Murphy Insurance Agency: "Loss of use" of the rental vehicle in the event of an accident is NOT covered by a Massachusetts auto policy. You could be billed an additional amount by the rental company for the time period they cannot use their damaged vehicle while it is being repaired. For this reason, some rental drivers choose to purchase rental coverage (known as “collision damage waiver”).

disaster recovery planning

Businesses that are forced to close down following a disaster run the risk of never being able to open their doors again. While there’s no way to lower the risk of a natural disaster like a hurricane, there are critical measures that can be taken to protect your company’s bottom line from nature’s fury. A disaster plan and adequate insurance are keys to recovery.

disaster planningdevelop a disaster recovery plan

No matter how small or large a business, a business impact analysis should be developed to identify what an operation must do to protect itself in the face of a natural disaster. Large corporations often hire risk managers to handle this task and some companies hire consultants with expertise in disaster planning and recovery to assist them with their plans. But small businesses can do the analysis and planning on their own.

Key elements of a business recovery plan 

  • Set up an emergency response plan and train employees how to carry it out. Make sure employees know whom to notify about the disaster and what measures to take to preserve life and limit property losses.
  • Write out each step of the plan and assign responsibilities to employees in clear and simple language. Practice the procedures set out in the emergency response plan with regular, scheduled drills.
  • Compile a list of important phone numbers and addresses. Make sure you can get in touch with key people after the disaster. The list should include local and state emergency management agencies, major clients, contractors, suppliers, realtors, financial institutions, insurance agents and insurance company claim representatives.
  • Decide on a communications strategy to prevent loss of customers. Post notices outside your premises; contact clients by phone, email or regular mail; place a notice in local newspapers.
  • Consider the things you may need initially during the emergency. Do you need a back-up source of power? Do you have a back-up communications system?
  • Human Resources. Protect employees and customers from injury on the premises. Consider the possible impact a disaster will have on your employees’ ability to return to work and how customers can return to your shop or receive goods or services.
  • Physical Resources. Inspect your business’ plant(s) and assess the impact a disaster would have on facilities. Make sure your plans conform to local building code requirements.
  • Business Community. Even if your business escapes a disaster, there is still a risk that it could suffer significant losses due to the inability of suppliers to deliver goods or services or a reduction in customers. Businesses should communicate with their suppliers and markets (especially if they are selling to a business as a supplier) about their disaster preparedness and recovery plans, so that everyone is prepared.
  • Protect Your Building. If you own the structure that houses your business, integrate disaster protection for the building as well as the contents into your plan. Consider the financial impact if your business shuts down as a result of a disaster. What would be the impact for a day, a week or an entire revenue period?
  • Keep Duplicate Records. Back-up computerized data files regularly and store them off-premises. Keep copies of important records and documents in a safe deposit box and make sure they’re up-to-date.
  • Identify critical business activities and the resources needed to support them. If you cannot afford to shut down your operations, even temporarily, determine what you require to run the business at another location.
  • Find alternative facilities, equipment and supplies, and locate qualified contractors. Consider a reciprocity agreement with another business. Try to get an advance commitment from at least one contractor to respond to your needs.
  • Protect computer systems and data. Data storage firms offer offsite backups of computer data that can be updated regularly via high-speed modem or through the Internet.

review your insurance plan

Make sure you have sufficient coverage to pay for the indirect costs of the disaster—the disruption to your business—as well as the cost of repair or rebuilding. Most policies do not cover flood or earthquake damage and you may need to buy separate insurance for these perils. Be sure you understand your policy deductibles and limits.

New additions or improvements should also be reflected in your policy. This includes construction improvement to a property and the addition of new equipment.

For a business, the costs of a disaster can extend beyond the physical damage to the premises, equipment, furniture and other business property. There’s the potential loss of income while the premises are unusable. Your disaster recovery should include a detailed review of your insurance policies to ensure there are no gaps in coverage. Your policy should include business interruption insurance and extra expense insurance. Even if your basic policy covers expenses and loss of net business income, it may not cover income interruptions due to damage that occurs away from your premises, such as to your key customer or supplier or to your utility company. You can generally buy this additional coverage and add it to your existing policy.

basic commercial insurance to consider

  • Building Coverage provides coverage up to the insured value of the building if it is destroyed or damaged by wind/hail, or another covered cause of loss. This policy does not cover damage caused by a flood or storm surge nor does it cover losses due to earth movement, such as a landslide or earthquake, unless added by endorsement.
  • Business Personal Property provides coverage for contents and business inventory damaged or destroyed by wind/hail, or another covered cause of loss.
  • Tenants Improvements and Betterments provides coverage for fixtures, alterations, installations, or additions made as part of the building that the insured occupies but does not own, which are acquired and made at the insured's expense.
  • Additional Property Coverage provides for items such as fences, pools or awnings at the insured location. Coverage limits vary by type of additional property.
  • Business Income provides coverage for lost revenue and normal operating expenses if the place of business becomes uninhabitable after a loss during the time repairs are being made.
  • Extra Expense provides coverage for the extra expenses incurred, such as temporary relocation or leasing of business equipment, to avoid or minimize the suspension of operations during the time that repairs are being completed to the normal place of business.
  • Ordinance or Law provides coverage to rebuild or repair the building in compliance with the most recent local building codes.

 

For more information:

Source: Insurance Information Institute

 

The information provided in these articles are only general descriptions and should not be relied upon as complete, correct or accurate for your specific situation. All coverage informaiton is subject to policy provisions, endorsements and may be  subject to your meeting underwriting qualifications. Murphy Insurance Agency is not engaged in rendering legal, accounting or other noninsurance professional services. Consult an appropriate professional for advice regarding your own situation.