Ask the Agent

The short answer is maybe, but maybe not. That is why you should talk with your Loiselle agent to find out if it is necessary to increase your policy coverage or obtain a separate policy to insure valuable gifts such as jewelry.

At Loiselle Insurance, we recommend:

• Insuring jewelry and other expensive items with a floater or endorsement if additional coverage is needed.
• Obtaining store receipts or written appraisals and keeping them with your records to ensure proper replacement value.
• Storing valuables in a secure location such as a safe deposit box.
• Keeping an updated video or digital camera inventory of your possessions in your home and in at least one off-site location.

Remember that home improvement contractors are required by law to be registered and licensed.  You should always ask for proof of license, which in many cases is imprinted on a contractor’s business card. You can verify credentials and confirm a contractor’s license by contacting the Contractors Registration Board at www.crb.ri.gov/search.php. It is equally important to request a Certificate of Insurance. This verifies that the contractor has both General Liability and Workers’ Compensation insurance. It is important that the contractor is covered in case anything goes wrong. Also, you should make sure that the contractor is insured for the type of work you are requesting. For example, if you need work done to your roof, make sure the contractor is insured to do roofing. I also believe you should not only ask for and check references, but also look firsthand at the work that was completed. In addition, I would suggest that you consider obtaining more than just one estimate. And remember, you should not pay a contractor until the inspectors certify that the work is done professionally and in accordance with local building codes.

“In tough economic times, people look for ways to trim household expenses, but cutting back on insurance coverage may leave them open to even bigger financial hardship. It is particularly dangerous to make these decisions without the help of an agent.” 

A recent national survey discovered that more than 18% of respondents – more than 30 million Americans – have considered reducing their auto, home, life, or health insurance coverage in the last few months. However, Loiselle Insurance recommends that you closely evaluate your policies with your agent before making any changes that could leave you underinsured and cost you money in the long run. There are some specific areas in which you can make some cutbacks, such as credit life insurance, deductibles and computer policies.

Credit life insurance: We recommend avoiding credit life insurance (for new furniture or credit card debt, for example) under most circumstances. These policies, offered by credit card companies and other lenders, extend the term of a loan and decrease in value over its life. They are designed to protect a third party if for some reason the consumer dies before the loan is paid off. However, no protection is provided to beneficiaries – only to the company that offered the credit or loan.

Deductibles are too low: Owners of expensive homes need to consider whether a low deductible makes sense. Proper levels of insurance are needed to cover total catastrophes and provide protection from you being sued. Therefore, you may want to take a $1,000 deductible and use the savings, which can be 10 to 20%, to buy a reasonably priced "umbrella liability" policy, giving you $1 million or $2 million of coverage to safeguard you from being sued.

Specific computer insurance policies: Though this coverage may seem like a good idea since so many people now have computers at home, a standard homeowners policy will cover most basic personal computer equipment.

Here’s how it works: If you have a home with the structure insured for $250,000, you typically have at least $125,000 of personal property coverage, including computer equipment not used for business. If used for business, the home insurance policy typically provides $1,500 or $2,500 of coverage for computers. Only people with home-based businesses, laptops used for business outside the home or elaborate high-tech equipment, need to consider extra coverage. But, it’s usually cheaper to buy an endorsement to the home or home-business policy rather than a separate computer policy.

The same concept holds true for cancer insurance or trip-specific life insurance, and other specific policies when, in fact, broader coverage that is cheaper in the long run might be needed.

Lawsuits are being filed at an alarming rate, leaving both individuals and businesses vulnerable. If you are sued and found at fault, you could be responsible for medical bills, legal defense, lost wages, and even rehabilitation. That’s why it’s so important to have adequate coverage to protect you, your family, or your business.

An umbrella policy, sometimes referred to as excess liability, provides protection when you are sued or found liable for bodily injury or property damage amounts that exceed the underlying limits of coverage available in your primary policies. Safeguarding you from some of life’s most unpredictable moments, an umbrella policy provides additional coverage beyond the limits of your home, auto, or business policies. One million dollars of umbrella coverage can cost as little as $150/year for individuals/families and as little as $500/year for small businesses. Umbrella insurance is an affordable way to receive a significant amount of reliable protection. We strongly suggest that you speak to us about this very important coverage if your protection plan does not already include umbrella coverage.

The Rhode Island Department of Business Regulation’s Division of Insurance recently finalized language that addresses hurricane deductibles for residential property. The regulation, effective Aug. 24, 2008, is No. 110. Under the regulation, residential property insurance deductibles for damage caused by hurricanes are capped at 5 percent of the insured value of a dwelling. In addition, insurers are prohibited from offering optional hurricane deductibles that exceed 5 percent of insured value.

According to Regulation 110, insurers may offer a flat dollar hurricane deductible in place of or in addition to a percentage deductible. When that is done, the total deductible may not exceed 5 percent of the insured value of the property. Whether deductibles are dollar-based, percentage-based or both, they must provide for a premium credit that is actuarially supported. The trigger of a hurricane deductible must be clearly stated. It is only applicable at the start of a hurricane warning for any part of Rhode Island by the National Hurricane Center and ends 24 hours after the termination of the last hurricane warning for any part of the state.

Insurers are required to provide clear and prominent notice of all hurricane deductibles and at least two practical examples of how they work. When flat dollar and percentage deductibles are offered, there must be examples of both.

Examples do not have to cite the insured value of a specific property but must show how the deductible works in a hurricane scenario. For instance, if there is 5 percent deductible on a home with an insured value of $200,000, then the homeowner must pay the first $10,000 of covered losses.

Regulation 110 also addresses mitigation measures within the various Rhode Island Building Code zones, the waiver of deductibles, non-renewal and cancellation issues, rate and policy form filings and surplus lines and insurance producers. For more information about hurricane deductibles, you can visit www.coastalinsuranceri.com or to speak to one of our agents.

Annually reviewing your insurance policies ensures adequate coverage for your home, personal belongings, liability, and temporary living expenses. To safeguard your assets, it is essential to update your policy when you acquire costly items, make additions and upgrade your home, or experience significant changes in your personal finances.