Home insurance coverage can differ from policy to policy depending on a multitude of factors. Being aware of these factors that affect your premium can ensure that you are appropriately covered. Review this Know Your Insurance to understand the factors that are influencing your home insurance premiums.

Your Personal Information

Your credit history and claims history can contribute to your premium costs:

• Credit history—In most cases insurance companies will take your credit history into account when calculating your home insurance premium. Insurance companies will look at how good you are at making payments and how much debt you currently have. Typically, the better your credit score, the lower your insurance premium.
• Claims history—Any claims you’ve made at previous residences will be assessed by your insurance company when determining your premium. The type and frequency of the claims you’ve filed can lead to higher premiums.

Standard property insurance covers physical damage and losses—furniture destroyed in a fire, a storm-damaged office building or stolen equipment. This coverage can help you pay the costs of rebuilding or replacing damaged property. But what about losses resulting from your business’s inability to operate because of property damage? For this type of loss, you’ll need business interruption insurance, also known as business income insurance.

Coverage to keep your business afloat

When your business is shut down due to a damaging event—a fire or windstorm, for instance—you lose revenue. In addition, your business is still obligated to pay its bills and may incur additional expenses as a result of the disruption. Fortunately, if you have business interruption coverage, many of these costs and losses can be reimbursed. Generally, business interruption insurance will cover:

• Revenue lost due to the closure.
• Fixed expenses, such as rent and utility costs.
• Expenses of operating from a temporary location.

Your policy may cover additional extra expenses associated with the disruption—for instance, advertising to announce your new temporary location.

To receive appropriate reimbursement from your business interruption coverage, there must be direct physical damage to the property resulting from an insured event.

Determining a business interruption loss involves establishing what the business would have earned had the loss not occurred. Insurance companies take into account past tax returns, profit and loss statements, projected sales and non-continuing expenses. It is crucial to keep very accurate records so that your business interruption losses can be properly projected.

Obtaining business interruption coverage

Business interruption coverage is not sold as a stand-alone policy. It can be obtained as part of the following types of policies:

• Commercial Property Insurance—You can add an endorsement or rider to commercial property insurance that will extend the policy’s coverage to business interruption losses.
• Business Owners Policy (BOP)—Intended for small businesses, this type of insurance package policy includes property, liability and business interruption coverage.
• Commercial Package Policy (CPP)—CPPs are flexible policies that can be customized with a range of options, including business interruption coverage.

Other types of policies may include business interruption coverage for certain circumstances. For instance, some kidnap and ransom policies will cover business interruption loses resulting from a covered event.

Understanding the limitations of business interruption coverage

While business interruption insurance can help your business survive a disaster, there are limitations and exceptions to this type of coverage. If you obtain business interruption coverage as part of a commercial property policy, the coverage will only extend to events delineated in the core coverage. If your property insurance does not cover wind damage, you cannot receive business interruption insurance if your company is displaced because of a windstorm.

There are also time limits on business interruption coverage, so be sure to discuss limitations and exceptions with your insurer or insurance professional, and whether purchasing extended business income coverage is a good option for your business.

Contact us to have a discussion about your business protection needs.

source: Insurance Information Institute

A permanent life policy provides lifelong insurance protection. The policy pays a death benefit if you die tomorrow or if you live to be a hundred. There is also a savings element that will grow on a tax-deferred basis and may become substantial over time. Because of the savings element, premiums are generally higher for permanent than for term insurance. However, the premium in a permanent policy remains the same, while term can go up substantially every time you renew it.

There are a number of different types of permanent insurance policies, such as whole (ordinary) life, universal life, variable life, and variable/universal life. In a permanent policy, the cash value is different from its face value amount. The face amount is the money that will be paid at death. Cash value is the amount of money available to you. There are a number of ways that you can use this cash savings. For instance, you can take a loan against it or you can surrender the policy before you die to collect the accumulated savings.

Unique features of a permanent policy:

• You can lock in premiums when you purchase the policy. By purchasing a permanent policy, the premium will not increase as you age or if your health status changes.
• The policy will accumulate cash savings.

​Depending on the policy, you may be able to withdraw some of the money. You also may have these options:

• Use the cash value to pay premiums. If unexpected expenses occur, you can stop or reduce your premiums. The cash value in the policy can be used toward the premium payment to continue your current insurance protection – providing there is enough money accumulated.
• Borrow from the insurance company using the cash value in your life insurance as collateral. Like all loans, you will ultimately need to repay the insurer with interest. Otherwise, the policy may lapse or your beneficiaries will receive a reduced death benefit. However, unlike loans from most financial institutions, the loan is not dependent on credit checks or other restrictions.

Source: Insurance Information Institute

Even the most careful drivers can be in an accident. Because having an accident isn’t a common occurrence, you might forget what you should and shouldn’t do if you’re in an accident. Here are actions you can take to help things go smoothly and facilitate the claims process.

Stay calm.  Getting upset only makes a bad situation more difficult. Maintain your composure even if the other person doesn’t.

Check for injuries and call the police. Even if the accident is minor call. Notify them of injuries so that they can call for medical assistance.

Don’t leave the scene of an accident. Even if the other driver says its okay, they could later file for injuries or you could be accused of a hit and run. Wait for the police to arrive as they provide an objective witness.

Don't move an injured person -- unless they are in immediate danger.

Try to protect the scene of the accident. Don’t move your vehicle unless it impedes traffic or it’s necessary to prevent further damage. Have a kit with emergency cones, triangles or flares.

Don't blame the accident on anyone -- including yourself. Even if you might be at fault, don’t say so to anyone. Give your full description of the accident only to the police officer.

Exchange information with the other driver. Take notes of:

• the license plate number, make, model & color of other vehicles
• names & addresses of all drivers/passengers
• drivers license numbers
• note if driver is different from vehicle owner
• insurance company information
• name and address of witnesses

Take photos. Use your cell phone to document the accident scene and damage to all vehicles.

Ask the officer where you can get a copy of the policy report.

If you hit an object or unattended vehicle, try to find the owner. If you can't, leave a note containing your name, address and phone number. Record the details of the accident.

Call us as soon as possible after an accident so that our Claims Team can assist you. Don’t assume we’ll find out another way. You can initiate your claim online at dfmurphy.com/claims. In an emergency call our 24 hours emergency hotline at 800 222 8711.

The National Safety Council recognizes April as Distracted Driving Awareness Month. This event is intended to raise awareness about the dangers of distracted driving and encourage motorists like you to minimize potential distractions behind the wheel. Review the following article for more information on distracted driving and ways you can help prevent it. 

Distracted Driving Overview

According to the Centers for Disease Control and Prevention, distracted driving refers to any activity that may divert a motorist’s attention from the road. There are three main types of distractions that can interfere with drivers’ attentiveness behind the wheel, including: 

1. Visual distractions—These distractions involve motorists taking their eyes off the road. Some examples of visual distractions include reading emails or text messages, focusing on vehicle passengers, looking at maps or navigation systems, and observing nearby activities (e.g., accidents, traffic stops, or roadside attractions) while driving. 
2. Manual distractions—Such distractions entail motorists removing their hands from the steering wheel. Key examples of manual distractions include texting, adjusting the radio, programming navigation systems, eating, drinking, or performing personal grooming tasks (e.g., applying makeup) while driving. 
3. Cognitive distractions—These distractions stem from motorists taking their minds off driving. Primary examples of cognitive distractions include talking on the phone, conversing with vehicle passengers, or daydreaming while driving. 

Regardless of distraction type, distracted driving is a serious safety hazard that contributes to a significant number of accidents on the road. In fact, the National Highway Traffic Safety Administration reported that more than 2,800 people are killed and 400,000 are injured in crashes involving a distracted driver each year—equating to approximately eight deaths and 1,095 injuries per day. Considering these findings, it’s crucial to take steps to prevent distracted driving. 

Distracted Driving Prevention Tips

Whenever you get behind the wheel, keep these distracted driving prevention measures in mind: 

• Put away your phone. Silence your phone and store it in a location that is out of reach while driving to lower the temptation to check it. 
• Plan your trip before you leave. Program your navigation system before hitting the road to get familiar with your journey and feel confident in your route. 
• Don’t fumble with your playlist. Select a radio station or plug in a predetermined playlist before driving to limit the need for music adjustments. 
• Secure passengers. Ensure kids are properly situated in car seats (if needed) with seat belts fastened. Keep pets stationary in the back seat. 
• Avoid multitasking. Never complete additional tasks—such as eating or personal grooming—behind the wheel. 
• Stay focused. Concentrate your mind on the road by keeping distracting conversations to a minimum and looking straight ahead.

Making sure your home is properly covered for a disaster

1. Do I have enough insurance to rebuild my home?

• Replacement cost -  Most policies cover replacement cost for damage to the structure. A replacement cost policy pays for the repair or replacement of damaged property with materials of similar kind and quality.
• Extended replacement cost -  This type of policy provides additional insurance coverage of 20 percent or more over the limits in your policy, which can be critical if there is a widespread disaster that pushes up the cost of building materials and labor.
• Inflation guard -  This coverage automatically adjusts the rebuilding costs of your home to reflect changes in construction costs. Find out if your policy includes this coverage or if you have to purchase it separately.
• Ordinance or law coverage -  If your home is badly damaged, you may be required to rebuild it to meet new (and often stricter) building codes. Ordinance or law coverage pays a specific amount toward these costs.
• Water back-up -  This coverage insures your property for damage from sewer or drain back-up. Most insurers offer it as an add-on to a standard policy.
• Flood insurance - Standard home insurance policies provide coverage for disasters such as fire, lightning, and hurricanes. They do not include coverage for flood (including flooding from a hurricane). Flood insurance is available through the federal government’s National Flood Insurance Program, www.floodsmart.gov, but can be purchased from the same agent or company representative who provides you with your home or renters insurance. Make sure to purchase flood insurance for the structure of your house, as well as for the contents. Excess Flood Protection, which provides higher limits of coverage than the NFIP in the event of catastrophic loss by flooding, is available from some insurers. Keep in mind that there is a 30-day waiting period before the insurance is valid. 

2. Do I have enough insurance to replace all of my possessions?

Most homeowners insurance policies provide coverage for your personal possessions for approximately 50 percent to 70 percent of the amount of insurance you have on the structure of your home. So if you have $100,000 worth of coverage on the structure of your home, you would be covered for $50,000 to $70,000 worth of the contents of your home, depending on the policy.

The best way to determine if this is enough coverage is to conduct a home inventory, which details everything you own and the estimated cost to replace these items if they are stolen or destroyed by a disaster. Keep your home inventory in a safe place if you have physical copies, or store it in the Cloud if you are using a home inventory app.

You can insure your possessions in two ways: by their actual cash value or their replacement cost. Make sure you review with your insurance professional which type of coverage is best for your particular situation. 

• Actual cash value policy  This coverage pays the cost of replacing your belongings minus depreciation.
• Replacement cost policy  This coverage reimburses you for the full current cost of replacing your belongings.

To illustrate the difference between the two types of policies, suppose, for example, a fire destroys a 10-year-old television set in your living room. If you have a replacement cost policy for the contents of your home, the insurance company will pay to replace the TV with a comparable new one. If you have an actual cash value policy, it will pay only a small percentage of the cost of a new TV set because the old TV has been used for 10 years and is now worth a lot less than its original cost. Some replacement cost policies specify that the new item be purchased by the insurance company as they may be able to purchase at a bulk or special rate. The price of replacement cost coverage is about 10 percent more than that of actual cash value.

3. Do I have enough coverage for additional living expenses?

Coverage for additional living expenses pays the extra costs of temporarily living away from your home if you can't live in it due to an insured disaster such as a hurricane. It covers hotel bills, restaurant meals, transportation and other living expenses incurred while your home is inaccessible or being rebuilt. It is important to note that it covers only those expenses that are over and above your regular living expenses, so it would not cover your mortgage, or regular trips to the grocery store. 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.

Coverage for additional living expenses differs from company to company. Many policies provide coverage for about 20 percent of the insurance on your house. Some companies will sell you a policy that provides you with an unlimited amount of loss of use coverage, for a limited amount of time.

Make sure you know exactly how much coverage you have for additional living expenses, and whether there is a time limit. If the standard coverage is not adequate, it can generally be increased for an additional premium.

4. Do I have enough insurance to protect my assets?

It is important to purchase enough liability insurance to protect your assets. If the standard liability coverage in your homeowners policy is not sufficient, you may need an excess liability, or umbrella, policy, which provides additional coverage over and above what is covered in your home (and auto) insurance policy.
 

Source:  Insurance Information Institute

When buying car insurance there are lots of different coverage issues to consider, most of us tend to focus on coverage for situations where we damage our vehicle, pay for damage to other peoples property and paying for damages if we physically injure another person. But, what if someone hits you? Have you ever said to yourself, "If someone else hits me then their insurance will pay." But, what if they don't have insurance or what if they have really low limits that doesn't cover the damage/injury they cause?

As of 2012, the Insurance Research Council (IRC) estimates approximately 1 in 8 drivers (12.6%) across the country is driving without insurance. 

uninsured drivers

Most states require drivers to have auto liability insurance, but a few do not including New Hampshire. While Massachusetts has a low incidence of uninsured drivers (4.0% in 2012), you are on the roads with drivers insured in other states or may visit another state yourself on vacation or for work. A popular vacation spot like Florida has among the highest uninsured driver rates with 23.8%. Drivers from all over visit New England, so you can't assume that everyone is as responsible as you.

underinsured drivers

You face an even greater risk of being hit by an “underinsured” driver who doesn’t have enough coverage to pay for your injuries. Massachusetts only requires minimum limits of $20,000/$40,000 bodily injury to others to register a vehicle...that won’t cover much in a serious accident. When you purchased your insurance, you probably purchased higher limits; however, you can't rely that others will be as responsible.

using your own auto insurance to protect you

So what can you do? You can protect yourself by having "uninsured and underinsured coverage" on your auto policy. Uninsured coverage pays for injuries resulting from an accident with a driver who is responsible for the injuries but has no liability coverage. Underinsured coverage is for situations when the responsible driver has insufficient liability limits to pay for your injuries. Generally, you can purchase uninsured and underinsured up to the limits of the "optional bodily injury to others coverage" that you have purchased. Ask yourself, why would I want to protect myself less than I protect others?

Talk to your agent about upgrading your coverage on your auto insurance policy to be protected in the event you're injured by an underinsured or uninsured motorist. If you have an umbrella policy, you may also be able to upgrade your umbrella coverage to include this protection.

When a major storm hits causing power outages, downed trees, flooding or other damage that impacts your business operation, it's important to have an action plan in place. Forty percent of businesses do not reopen after a disaster and another 25 percent fail within one year, according to the Federal Emergency Management Agency (FEMA). But by taking action in advance to prepare, businesses can increase their chance of getting back on their feet financially and keeping their doors open.

The Insurance Information Institute (I.I.I.) and the Insurance Institute for Business & Home Safety (IBHS) recommend the following steps:

Develop a business continuity plan

Having a business continuity plan is vital for companies to prepare for, survive and recover from a hurricane. Use IBHS’ free OFB-EZ^® (Open for Business) business continuity planning tool to create a plan that focuses on recovering after the initial emergency response. Share your plan with employees, assign responsibilities and offer training so your workforce can collaborate in the recovery of your business. Conduct regular drills to assess and improve response. 

Maintain key information offsite

To get your business up and operating as quickly as possible after a disaster, you’ll need to be able to access critical business information. In addition to backing up computer data, keep other critical information offsite such as your insurance policies, banking information and phone numbers of employees, key customers, vendors and suppliers, your insurance professional and others. If you have a back-up site, make sure it’s sufficiently far away so as not to be affected by the same risks that threaten the primary location. Use IBHS’ free EZ-PREP^TM severe weather emergency preparedness and response planning toolkit with checklists that can be customized for your company to be sure you have a well-organized plan and are ready to respond when disasters occur.

Create a business inventory

Include all business equipment, supplies and merchandise—and don’t forget commercial vehicles.

Review your Insurance coverage

The time to review your insurance policy is before disaster strikes and you have to file a claim. It is important that your business have both the right amount and type of insurance for its needs and risk profile. Here are a few key issues to consider:

Opt for replacement cost coverage

Most commercial property policies provide either replacement cost coverage, actual cash value coverage, or a combination of both. Replacement cost coverage will pay to rebuild or repair property, based on current construction costs. Actual cash value coverage will pay to rebuild or replace the property minus depreciation. Depreciation is a decrease in value due to wear and tear or age. If your business is destroyed and you only have actual cash value coverage, you may not be in a position to completely rebuild.

Consider tenant coverage

If you rent or lease a building, consider tenant coverage, which will insure your on-premises property, including machinery, furniture and merchandise. The building owner’s policy will not cover your contents.

Don’t forget about flood insurance

Flooding is not covered by standard commercial insurance policies, so consider buying a separate flood policy. If you’re located in a high- to moderate-risk flood zone, you could be protecting your business from devastating financial loss. Commercial flood coverage is available from the National Flood Insurance Program (NFIP) and provides up to $500,000 in building coverage and $500,000 for contents. You can also get coverage through private insurers.

Source: Insurance Information Institute

When making decisions about your insurance, it can be a balancing act deciding how much coverage to buy. Understandably, budgetary constraints may impact what coverage you purchase; however, it often doesn’t cost significantly more to get a higher protection limit or add an endorsement that broadens coverage. When a claim occurs, few people would regret having spent a little more for the extra coverage that prevents a large out of pocket expenditure. Avoiding these common insurance mistakes will help ensure you have solid protection.

Underinsuring your home. Failing to insure your home at its replacement value is the biggest mistake a homeowner can make. The cost to rebuild a home is typically more than its market value and can fluctuate over time due to labor and building supply costs. If your home is significantly underinsured, you may not receive adequate funds to rebuild.

Not having extended replacement cost coverage. This optional coverage can pay to rebuild your home exactly as it was even if the cost exceeds the estimated replacement cost of the home. The primary purpose is to protect you against sudden increases in materials or construction costs which can occur after a hurricane or other disaster. Depending on your policy, extended replacement cost can pay up to an additional 100% of your policy’s Dwelling Coverage limit.

Not considering building code change additional costs. Building codes change periodically. If your home is badly damaged, you may be required to rebuild to meet new building codes. These extra expenses are typically excluded by a basic homeowner policy. However, you can purchase an “ordinance or law endorsement” that pays a specified amount toward these costs.

Ignoring flood and earthquake coverage. Just because you don’t live along a river or in California, doesn’t mean that you don’t need to seriously consider these coverages, which are excluded under a standard home policy.

Not buying renters insurance. If you rent (or cohabitate and don’t own the home you live in), a renters policy not only covers your possessions but also provides liability protection. It also covers additional living expenses if a fire or other covered situation requires that you move out temporarily.

Failing to have replacement cost on contents. Whether you rent or own, make sure your possessions are insured at the cost to replace them with new comparable items. Otherwise, you’d only receive the depreciated value for your possessions, which is probably only a fraction of what it would cost you to replace. Imagine having to replace everything and you’ll quickly see why this is essential. 

Purchasing only the most basic coverage. When unexpected accidents in life become a reality, having only basic coverage can still leave a significant financial burden on you. Paying for insurance coverage that doesn’t truly cover your needs isn’t helpful. Talk to your agent about ways to manage your costs while having higher limits in the areas where the greatest risk exists such as:

• bodily injury to others
• damage to others’ property
• medical coverage
• personal liability
• underinsured/uninsured motorist coverage

What you need to know if you work from home

Whether you’re running a part-time, seasonal or full-time business from your home, you’ll want to carefully consider your risks and insurance needs. Starting a business—even at home—can be a challenging venture, and having the right insurance can provide a financial safety net and peace of mind.

Your insurance choices should, in part, be based on the type of business you operate. For instance, if you’re a sole practitioner home-based accountant, you’ll have very different insurance needs than your neighbor who runs a childcare business. When considering insurance for your business, here are some questions to ask yourself:

• What type of business do I run? What are the potential risks faced by your type of business?
• What is the value of my business property? Do you have expensive equipment, such as cameras or commercial printers? Do you stock valuable business inventory, such as gemstones?
• Does my business have employees?
• Do customers or contractors visit my business at my home?
• Do I use my car or other vehicles in the course of my business operations?
• Does my business store customers’ financial and personal information on a computer or through a cloud computing service?

The answers to these questions will guide which types of insurance to purchase—and how much coverage you’ll need. For your home-based business, the main types of insurance to consider include the following:

Property and liability insurance

Depending on the nature of your home-based business, you’ll need insurance to protect the value of your business property from loss due to theft, fire or other insured perils. You’ll also need liability protection to cover costs if someone is injured as a result of visiting your business or using your product or service. Your homeowners insurance may provide some protection for your business, but it may not be sufficient. Options for property and liability insurance for home-based businesses include:

• Adding an “endorsement” to your homeowners policy
• Stand-alone home-based business insurance policies
• A Business Owners Policy—or BOP—which combines several types of coverag

Business vehicle insurance

Your personal auto insurance may provide coverage for limited business use of your car. But if your business owns vehicles or your personal vehicle is primarily used for business purposes, you’ll need business vehicle insurance.

Workers compensation insurance

If you have employees, you’ll want to strongly consider purchasing workers compensation insurance to cover costs if an employee is hurt on the job. Workers compensation insurance provides wage replacement and medical benefits to employees injured in the course of employment, in exchange for relinquishing the right to sue the employer. In some states, workers compensation insurance is mandatory, so be sure to check your state’s workers compensation website for local requirements.

Other types of insurance may be suitable for your home-based business as well. Your insurance professional can help you evaluate your needs and select insurance to meet your budget.

Source: Insurance Information Institute