How do I know if my home is adequately insured?

Most homeowner policies offer replacement-cost coverage on the dwelling itself. In order to receive and be paid replacement cost on your home, the insurance policy requires your limit of coverage to be within 80% of full replacement at today's construction costs.

Over the course of time, many homeowners do extensive remodeling, make additions to their homes, add decks or screened porches, etc. When this occurs, many people do not think of contacting their agent to make them aware of the changes that may have taken place. As a result, were you to have a loss, you may be underinsured in order to collect replacement-cost coverage.

If you have forgotten to make us aware of changes, or if you feel you may be underinsured, please call us so we can review your values and help determine if you are adequately insured.

Are water backups in basements covered?

Water backup from the ground, sewer line, etc., is not covered under the standard homeowner's contract. A separate rider must be purchased in order to insure against some of this exposure.

The rider is available to provide coverage in the event of a "sump pump" failure. In addition, this rider also provides coverage for water coming into your house if a water or sewer line were to break outside your home. The policy will not pay for repair of the sump pump itself or repair of the broken water or sewer line. The rider will pay for the water damage as a result of these occurrences.

Coverage is purchased for a specific dollar amount. The maximum limit varies by company and ranges from $5,000 to $25,000.

Please call us to discuss this very important coverage and review any other questions you may have about your policy.

Whose name is on the title of your insured vehicle?

In order to be insured under an insurance policy in your name, the vehicle must be titled to you. If you are insuring a vehicle which is entitled to another person, you may not be covered at the time of a claim. Please telephone our office right away if this situation applies to you and your vehicles.                                                      

Have you hit a deer or had a broken windshield? 

As our vehicles age, most of us decide to remove the physical damage coverages of comprehensive and collision. While you may continue to drive your car safely with a dent in the fender, if the windshield is cracked, it must be replaced. Comprehensive is the coverage which pays for broken glass, car-animal accidents, storm damage to the vehicle, fire to the vehicle, etc.

What about rental reimbursement?

If your car is damaged due to an accident, your comprehensive and collision coverages on your auto policy do not pay for the cost of renting a substitute car while repairs are being made.

This optional coverage must be specifically purchased. The approximate cost for this coverage is $10 to $15 per car, per six months. Your policy must have collision coverage on the car for which you purchase this coverage.

What if my home is not building-code compliant?

This optional coverage is not standard on most homeowner policies. In the event of a claim on your house, the insurance policy is required to replace the damaged property with like kind and quality.

Many older homes have not been brought up to today's building codes. The law and ordinance optional rider would allow you to upgrade to current building codes in the event of a loss. This coverage would apply toward any upgrades now required by law.

Typically, this important coverage costs an additional 10% of your current premium. Please telephone us if you want more information, or to discuss this optional rider.

Does my business package contain equipment breakdown coverage?

The more your business depends on equipment, the greater the need for equipment breakdown coverage. Equipment breakdown coverage pays for damage caused by such things as electrical arcing, mechanical breakdown of parts, power surges, centrifugal force, and more. Sure, you have property insurance, but property insurance policies do not cover a motor burnout, a short-circuited electrical system, or a mechanical failure. Also, most property insurance policies do not replace the income and expenses you incur as a result of equipment breakdown. The low-voltage circuitry in computers and other controls are susceptible to damage from electrical injury (power surges, shock, vibration and heat).

Check with us. The cost of machinery equipment coverage is extremely reasonable. We would be glad to discuss whether it has any application to your business. That's what we're here for--to answer questions and help you in any way we can with your insurance needs.

Am I required to have a workers' compensation insurance policy?

• All private employers regularly employing one or more employees 35 hours or more per week for 13 weeks or longer during the preceding 52 weeks.

• All private employers regularly employing three or more employees at one time.

• Agricultural employers, if they employ three or more employees 35 hours or more per week for 13 or more consecutive weeks.

• Householders employing domestic servants if they employ anyone 35 hours or more per week

Over the years, many employers have tried to escape the required coverage by stating the people working with them are "independent contractors".  Some of the tests used to determine if a business is truly a "sub-contractor" are:

• Does the sub have a "Federal Identification number"?

• Is there a written contract between the two parties?

• A list of other general contractors who the sub has worked for recently.

• Does the sub advertise, do billings to customers directly, have an assumed name filed with the County in which they reside, etc.?

To assist you in determining whether or not you should carry a workers' compensation policy, please contact Carolyn Kempf or your agent at The White Agency.  Our goal is to assist you with all of your insurance needs.

What’s your in-home business exposure? 

 Amway - Tupperware - Mary Kay -Tax Accountant - Computer Programmer - Child Care - Music Teacher -Work  at Home for Your Employer - Auto Mechanic 

If any of these categories, or any other type of “working at home”, fit your business, you may not have coverage under your homeowner policy for your contents, the building or personal and professional liability. 

Many individuals are now operating businesses from their homes to save on time and reduce their operating expenses.  This is a wonderful idea, but is also a situation which needs to be discussed in full with your insurance agent.  Many companies do not cover your office furniture, including your personal computer, etc., if these items are being used for a business exposure.  In addition, any “stock” or “supply of business goods” is not covered as homeowner contents.  You also face the risk of no liability coverage if an individual is in your home for business purposes.  Also, if the business exposure is located in an unattached uilding, the coverage for the entire building may be removed.   

DON’T RISK A NON-COVERED CLAIM - CALL THE WHITE AGENCY TODAY! 

What about long-term care?

A recent public opinion survey by the National Council on Aging and the American Health Care Association produced some revealing data:

• 87% of Americans think long-term care is a big problem in the U.S.

• 69% said they were worried about paying for their own or their spouse’s long-term care

• 79% of older boomers believe long-term care is the greatest risk to their standard of  living during retirement

• 12% feel they have adequately prepared for the risk of long-term care 

• 85% of boomers can not name Medicaid as the primary funding source for the vast majority of nursing home residents

• Medicare does not always cover long-term care

• There are tax-deductible situations for long-term care premiums

• The average cost of a long-term care facility is $110 per day (currently, approximately $40,000 per year)

• Over 40% of Americans receiving long-term care are under 65 years old and 49% of  people age 65 will enter a nursing home at sometime for care 

Solution to the long-term care problem: 

Call and ask for Terry Heyboer or Juli Dykman

If you want to choose where to go, instead of having to go where you are taken, you will need to have either a “big” estate or adequate Long-Term Care Insurance.

What is automobile liability?

The terms "bodily injury" and "property damage" mean very little to most of us.  Under the no-fault law, it would seem, as drivers or owners of a vehicle, we could not be held "at fault".  However, outside the State of Michigan, in instances of death or serious injury to another person, or property damage, we would need liability coverage.    
   
Bodily injury will protect us in the event of a lawsuit due to an automobile accident where we have been negligent and cause death or serious injury to another person.  The State minimum limits are $20,000 per person and $40,000 per accident.  Most insurance agents recommend limits of $50,000 per person and $100,000 per accident , or higher.  Remember, these are "lawsuit" coverages.

Property damage provides insurance benefits for accidents outside the State of Michigan, should we damage another person's home, fence, sign, mailbox, etc.  The State minimum for this coverage is $10,000; although, once again, most agents will recommend a limit of $100,000 or higher.

Are you 65 or older?

 It's a wonderful time in our lives; however, the change in our health insurance coverage--Medicare and Medicare Supplements--will leave us vulnerable to a $300 deductible for injuries suffered in an automobile accident.  Your Personal Injury Protection coverage, or "PIP", needs to be at "full" benefit.  To review your coverage, call The White Agency.

Is your car filled with music?

Most of our vehicles have radios, tape and/or CD players, and a great speaker system.  If you have altered or added to the system that came factory standard in your vehicle, it may not be insured by your car insurance policy.  Also, any additional tapes or CD's carried in the car for your listening enjoyment are definitely not insured under the auto insurance coverage and are excluded by your homeowner's policy.  Please call us to schedule coverage for your tapes, CD's and sound equipment.

Could you give me some helpful hints to reduce my chance of having a claim?

WIND/LIGHTNING

• Trim trees away from electrical wires and rooftops, and cut out all dead branches.

• Remove patio umbrellas and secure patio furniture if there is a threat of severe weather.

• Unplug all electronic devices during a severe storm.

• Use power surge strips on electronics and on the phone lines to the computer.

• Electric fencers must be located 50 feet from an insured building, and be properly grounded.

THEFT

• Lock all doors and windows when you leave the house.

• Keep all guns in a secured, locked cabinet or safe.

• Do not keep large amounts of cash in the house.

• Contact the police department immediately upon discovering a theft.

WATER

• Turn water valves off when leaving the home during the winter months.

• Immediately shut off the water supply once the leak or problem is discovered.

• Begin extracting the water right away, or contact a professional to assist.

• Set up fans or dehumidifiers to assist in the drying process.

• Store items on pallets or shelving units to keep them off of the floor in basements.

FIRE

• Do not leave candles unattended or sitting near flammable objects.

• Clean fireplace and woodstove chimneys on a regular basis.

• Make sure lights are turned off before leaving the house.

• Make a video tape or take pictures of each room of the house and keep them in a fireproof safe or safe deposit box.

• Check batteries in smoke detectors twice annually.

MISCELLANEOUS AND LIMITED ITEMS

• Specifically schedule valuable jewelry, gems and watches.

• Specifically insure ATV's and snowmobiles.

• Carry separate insurance on business property and tools.

• Automobile parts have limited coverage only if they are NOT on the vehicle at the time of loss.

• Never carry large numbers of CD's or cassettes in your vehicle.

• All outdoor steps should be equipped with a railing to avert liability risks.

• Keep walkways free of snow and ice.

• Remove excess snow from dwelling and barn roofs to prevent collapse.

• Remove old, fallen-down structures to avert liability risks.

SAFETY TIPS FOR FARM MACHINERY ON PUBLIC ROADS

• Be sure you can see.  Clean cab windows and keep your lights and wipers in good working condition.  Lights are required from a half-hour after sunset to a half-hour before sunrise.

• Be sure you can be seen.  Use your flashing lights, and make sure your SMV emblems are clean and properly mounted.

• Allow only qualified operators to drive machinery on public roads.

• Keep driveways and access/and sight lines clear.  Cut away growth that blocks the view, and avoid planting tall crops where they might hide a view of oncoming traffic.

• Keep any load within your vehicle's ability to slow and stop.

• Signal all turns.  When turning right, avoid swerving into the opposite lane; and before turning left, make sure no one is trying to pass.

ALWAYS BE CAREFUL!

A majority of the claims are caused because of carelessness.  Taking the extra precautions with your property can minimize and metimes even eliminate the need for turning in a claim.