We spoke about the coverage for mold, or nonexistent mold coverage, on the homeowners insuranec policy last time but this time I want to focus on mold prevention and then work our way into cleanup tips. 

 According to the United States Environmental Protection Agency (EPA) when water leaks, as long as it is cleaned up and dried within 24 – 28 hours, mold will not grow.  But there are ways to prevent these areas from leaking before it happens.

           Clean and repair roof gutters regularly

          Keep air conditioning drip pans clean

          Clean up any condensation as quickly as possible on the windows, walls, pipes etc.

          Vent appliances that produce moisture

          Use air conditioners and de-humidifiers when needed

          Run the bathroom fan when showering or open windows

          Use fan when cooking or running the dishwasher

          Open doors and windows as much as possible to increase ventilation and air movement

          Cover cold surfaces

          Fix leaks as soon as you see them

          Pay special attention to carpet on concrete floors

 If you come across mold and have to clean it up be sure you wear safety goggles and gloves to reduce contact with the mold spores.  Scrub the mold off hard surfaces with detergent and water then dry completely.  Avoid using bleach.  Don’t paint over moldy surfaces because it is likely to peel, Throw away all absorbent materials like tiles and carpets and then remove the mold, it will be difficult to get into the crevices and cracks if you leave the tiles or carpet. 

 Scrub until it appears to be all gone, odor as well, and check the area again at a later date to be sure there is no more growth or water damage.

 It is your responsibility as a homeowner and an insurance policy holder to try to prevent a loss before it happens so stay on top of all the suggestions we made above in order to prevent mold.  Prevention is important for not only for the sole reason of preventing property damage, but also for the health of your household members, family and friends.

Yikes, mold!  That is what I think when I think of mold but mostly because coverage for mold on the homeowner’s policy is a tough one.  Generally, it is not covered but then there is some coverage and you can add coverage on.  So, I would like to clear up what is and what isn’t covered and look at ways to add coverage on. 

On the homeowner’s policy, property damage caused by “mold, fungus or wet rot” is excluded but only when the mold, fungus or wet rot is the cause of damage not the result.  So basically, just to confuse you a little, the policy is saying that mold, fungus or wet rot can be covered in certain situation and as long as the damage has not been caused by mold, fungus or wet rot. 

The certain situation we can find coverage for mold is when “mold, fungus or wet rot that is found HIDDEN in the walls or ceilings or beneath the floors or above the ceilings of a structure if such loss results from the accidental discharge or overflow of water or steam from within

A. a plumbing, heating, air conditioning or automatic fire protective sprinkler system or a household appliance on the residence premises or

B. a storm drain or water, steam or sewer pipes off the residence premises.”

The policy will not cover mold, fungus or wet rot in these certain situations if the mold, fungus or wet rot was caused by a “sump pump or related equipment or a roof drain, gutter, downspout or similar fixtures or equipment”.

WOW, did you get all that?  So in summary, the policy doesn’t cover it when it is the CAUSE of damage but will when situations A & B happen but with other exclusions.  But guess what, the cost to remove the mold is not covered; only the property it damaged.

So, how about an example?  If you see mold on your wall under a window that has been leaking in water, it is not covered.  But, if you open up a wall and see mold inside the wall that has been caused by a leaking pipe, it is covered. 

Each situation is different and would have to be looked at to find if there is coverage or not, I could go on all day with examples but they best thing that you as a homeowner and insurance policy holder should do is to make sure you are doing routine maintenance checks and fix any water issues immediately.  Also, there is a way to add some coverage onto your policy.  Again, it won’t cover all situations but will add coverage to some.

Stay tuned to our next blog on ways to prevent and cleanup mold.

 I just wanted to send out a friendly reminder that flood is NOT covered on the homeowners policy!  It must be purchased seperately.

This week, we have had a few sump pump failures so I have decided to re-post a previous blog to refresh your memory. 

Sump pumps are mostly used in homes where the basement is lower than the water table level and places where flooding is common.  They come in very handy especially when it rains and the soil around your home gets so soaked the foundation gets wet and the water leaks into the basement. 

Sump pumps are usually powered by electricity, although some have a battery backup system, and it is imperative that it not lose power supply or else water would get in the basement and you could have water damage or flood on your hands. 

Why should you care?  Because, sump pump failure is not covered on your homeowner’s policy leaving you responsible to cleanup and repair any damage.  

Don’t worry; there is a way to add coverage!  The Water Back Up and Sump Discharge or Overflow endorsement adds $5,000 in coverage for direct physical loss to property covered under section 1 of your policy if your sump pump were to have mechanical breakdown.  Certain restrictions apply; ask Michaud Insurance Agency more about this coverage.

If you would like to know what a Flood Policy costs, please let us know and we would be more than happy to quote a policy for you.  Remember, you dont have to be in a flood zone to have flood insurance!

In the past few months we have had a few clients who have been hit by another vehicle, with minor damage, and not had Full Collision coverage or Limited Collision coverage on their own auto insurance policy.  Because they lacked collision coverage, they had to report the claim through the other person’s auto insurance company to get the damage fixed.  In both cases, the police were not called to the scene as the damage was minor but the other party claimed that it was my insured who hit them and not the other way around.  Because of the conflicting stories by each party and police report to back anyone up, the other company had to believe their own insured over mine and my insured’s were denied coverage on their vehicle.

In both cases, my insured was very upset.  As they should be, but you can never tell what the other person is going to do once they drive away from the scene of the accident.  But if my insured had coverage on their own auto insurance policy, they would have had the damages fixed and could let the insurance companies fight it out.  That is why we always suggest collision coverage on the policy.

We understand that for many people, finances might be tight but also if you have an older car you may not feel it is worth the full coverage.  But clearly, in cases like this, it is worth it.  There is an alternative to full collision that many people aren’t aware of called limited collision.  Limited Collision is a cheaper version of full collision; however, it has some restrictions that differ from full collision.

Limited Collision will cover you for a collision accident as long as you know who it was who hit you.  So if it was a hit and run it will not be covered under limited collision.  It will cover you for any direct and accidental damage to your auto caused by collision, direct and accidental damage to a non-owned private passenger vehicle, it will pay the cost to physically repair the auto up to the actual cash value of the auto or the lesser of the actual cash value or the cost to repair.  Limited collision offers deductibles from $0 up to a $500 and is a much lower cost to full collision.

Another aspect of limited collision that differs from full collision is that the driver of the vehicle (you) must be no more that 50% at fault and if you are less than 50% at fault, it will not affect the amount of payment.  The company will determine fault once the claim has been reported.

Some examples of a 50% or less at fault accidents that could be covered under limited collision are:

• An auto legally parked
• An auto struck in the rear
• The other operator was convicted of a violation at the time of accident.  This is as long as the operator of the covered vehicle is not also convicted of a violation.
• If the covered driver is entitled to recover in court against an identified person for other reasons not listed above.

So if you are reviewing your policy and do not have collision coverage because you feel it is too expensive, consider limited collision so you at least have some extra coverage during an accident.  It is worth it, just ask our clients who learned the hard way!

We get a lot of questions about the Massachusetts Safe Driver Insurance Plan (SDIP) aka points on your license that increase the price of your insurance, so we thought a blog about it was in order.

The Safe Driver Insurance Plan is a program created by the state to encourage safe driving.  It greatly rewards drivers with excellent driving records and sets in place a surcharge for drivers who do not have clean records.  It basically is as follows:

As part of the Safe Driver Insurance Plan, all drivers start with a clean slate of 00 surchareable points on his/her license.  If the driving record stays clean for 3 years, the driver will then become a 98 and then move to a 99 after 6 clean years.  Both a 98 and 99 in the Safe Driver Insurance Plan rewards the driver with a discounted insurance rate.

If the driver has had tickets or accidents, points will go on the record.  The point system is made up of:

Major Traffic Violation (D.U.I for example): 5 points

Major At-Fault Accident: 4 points

Minor At-Fault Accident: 3 points

Minor Traffic Violation (i.e speeding): 2 points, *the first ticket would be free (no points)

Points on the driving record increase insurance premiums so the more points you have, the more premium you will pay.  In some circumstances a driver with a very high SDIP may be ineligible for an insurance policy through certain insurance companies.

If you have no more than 3 surchargeable incidents over a 5 year period, the point value of those incidents will go down by 1 point a year when you are “clean in three” or have 3 years driving with no incidents. 

Again, this is a brief overview of the Safe Driver Insurance Plan but if you would like to know more, go to www.state.ma.us/mrb or call the Merit Rating Board at 617-351-4400.

By September 30, 2011 the Massachusetts Homeowner Oil Heating System Upgrade and Insurance Law will require that all homes heated by oil fuel must be equipped to prevent leaks from tanks and pipes that connect to your furnace.  This new law addresses oil leaks from home heating systems and will require a few updates to be done in order to be in compliance.  If your home has an oil tank it must be updated with either an oil safety valve or an oil supply line with a protective sleeve.  Installation of the valve or sleeve must be done by a licensed oil burner technician in order to satisfy this new law. 

Chances are that if your oil tank was installed on or after January 1, 1990, you are already in compliance with this new law.  If the oil burner is located above the oil storage tank and the entire oil supply is connected to and above the top of the tank you will also be exempt from this new law.  Either way, a copy of the oil burner permit from the local fire department can be used to show compliance with the Homeowner Oil Heating System Upgrade and Insurance Law.

How much will it cost to get the valve or protective sleeve?  It ranges from about $150-$350 including labor, parts and permit fees.  Is it worth it?  Yes, homes can avoid disruption and expense that can be caused by heating oil leaks.  It could release vapors in your home, leak into the underground of your home and impact drinking water supply wells. 

Part of this law is also requiring homeowner insurance companies to offer coverage for leaks from oil heating systems. If you comply with this new law, insurance companies have been required to create a new coverage package that can be added to your homeowner policy for a minimal amount of money.  Each company has a different amount of coverage but the basis is to provide third party liability coverage for remediation or cleanup of oil spills from your oil tank on and off your property.  Leaks can possibly affect someone else’s water or property and this coverage if for those sort of circumstances.

So contact Michaud Insurance Agency to find out what package your insurance company is offering for Oil Spill Coverage to see if you are eligible, or for ways to start getting into compliance with this new law.

We would like to use this blog to go over the different ways you can winterize your vehicle to prepare for the long New England Winter.

I remember one year I didn’t wash my car all winter so the salt and dirt started accumulating on my brake lines and I ended up having to get new brakes that spring.  I wasn’t too happy.  That is why preparing for the winter is best for both you and your vehicle.  Preserve the value of your vehicle for the future and protect your wallet from high costs to fix the vehicle after the winter.  These are just two reasons why you should follow these ideas.

Get an emergency kit.  If you don’t already have one, an emergency kit should have things that you might need if you were broken down in your vehicle without heat on the coldest night of the winter.  Blankets, boots, radio, flares, flashlight, coolant, engine oil and other fluids you might need for your vehicle. 

Glycerin for de-icing.  We just learned this, it can be purchased at car specialty stores in tubes and if your locks freeze, this will help.  It will prevent your key and lock from breaking when placing your key in the frozen lock.

Ice Scraper and Windshield Treatment.  Of course the ice scraper is a must but don’t overlook a tough windshield washer fluid to clear off all the snow, salt and dirt that fly up from the road and traffic.

Snow Tires.  Any vehicle performs better with new tires, but snow tires make snow that much easier to drive in.  If you have all weather tires, make sure they are still in good shape with tread, bald tires are dangerous.

Rear Wheel Drive?  Put a ballast in your trunk.  Bags of sand, salt, or anything heavy in the trunk or bed or your truck to weight the back down makes all the difference when driving a rear wheel drive vehicle in the snow.  This goes along with the snow tires, you need the whole package for best performance.

Check your battery!  Battery capacity is reduced by the cold weather so be sure to do a thorough check of the battery, cable terminals and fluid before the cold weather gets here.  Make sure there are no cracks or breaks, read the level of charge and check the manufacturer date.

Engine Coolant and Engine Oil.  Outside weather has a huge influence on what is happening inside your engine, make sure you are using the proper oil and coolant for the conditions.  The coolant protects your engine from corrosion so make sure your coolant has ethylene glycol to help protect the engine.

And don’t forget to wash your vehicle including the undercarriage!   We know it will just get dirty again, but its worth it!

Have you ever forgotten to renew your license but didn’t realize it until you tried to use it or got pulled over?  Well, we have good news for you.  The Massachusetts Registry of Motor Vehicles is now offering a reminder service that will help you to remember to renew your license or MA ID.

It is the newest service the Registry is offering, its a free service that will remind you by email, text or phone message to renew your license or ID.  As you can see in the picture above, it is a very easy site to sign up and you don’t have to give any personal information that would make you feel uncomfortable to submit online.  All you will need is your license number, date of birth and zip code.  That’s it!

Once you have submitted your request, you will get a confirmation message to your email, phone or text, whichever method you have chosen for your notifications.  The program will send you a reminder 30 days prior to the date of expiration of your license or Massachusetts ID.

Don’t worry, if you ever need to cancel the license renewal notification service there is an unsubscribe button on every notification you get.  All you would need to do is click ”unsubscribe” and you will be off the service with no penalty.

Take advantage of this free service with the Massachusetts Registry of Motor Vehicles to remind you when you need to renew your license.  Don’t get stuck with an expired license!  I just signed up for it and was surprised how easy it was and the peace of mind of not having to worry about my license expiring without me knowing is worth it!

For more information or help signing up contact Michaud Insurance Agency!

A very dear friend to our agency, Patty, has battled breast cancer and is now a 1 year survivor.  Did you know that every 1 in 8 women are diagnosed with breast cancer and another 200,000 are projected to be diagnosed in the United States alone this year, that is why Patty is determined to raise as much money and awareness as she can to end breast cancer.

This past year’s Boston 3-day for the Cure walk, New Balance did a video highlighting Patty and her team of amazing women called the Tough Warrior Princesses who walked together.  Each woman on this team has a special story and background as to how breast cancer has affected her life and this video shows why, who and what she walks for.   This video, Walk Like a Princes, A Film by New Balance, shows how strong and amazing each of these women and their families are thoughout this fight with Breast Cancer.  

This past year’s walk for breast cancer, Patty raised over $10,000 for the walk and she has already begun raising money for the 2011 Boston 3-day for the Cure walk.  Her personal goal is to reach $5,000 and her team’s goal is to reach $50,000.  Please go to Patty’s donation page to help support her but more importantly, the quest to raise money for the cure of breast cancer.  You can also follow Patty’s blog to see her journey throughout the year, find out where she is fundraising and help her and the Tough Princess Warriors fight for a cure for breast cancer.  Remember, no amount is too small and if you are unable to support them with a monetary donation, words of encouragement go a long way!

In our last blog we spoke about the different ways to valuate your dwelling coverage on your homeowners insurance policy.  We explained that on a typical homeowners insurance policy, we use a replacement cost value which is the cost to replace your house if it were to be deemed a total loss after a covered claim has destroyed it.  What I would like to elaborate on is what happens when you upgrade, renovate, or add onto your home and what that means to the dwelling cost.

If you are renovating your home, you are usually increasing the value of it.  You are putting more money into the house and if it were to be destroyed, the difference between rebuilding the original house and the house with the renovations would be more wouldn’t it?  Yes, it would.  When you renovate your house, you should notify your agent so we can make sure we can adjust your dwelling coverage on your homeowners insurance policy.  If you are willing to invest your money in renovating and upgrading, you should do so with your homeowners insurance as well to protect that investment.

What would happen if you did not let your agent know that you have renovated your home?  Well, insurance companies require the dwelling coverage on your homeowners insurance policy to be at least 80% of the replacement cost for them to pay the replacement cost of the home damaged by a covered claim.  This is mostly due to inflation, market change, etc. that sometimes the dwelling coverage isn’t 100% replacement cost.  It happens but as long as it is within 80% there won’t be any coverage issues.  BUT, depending on the renovations, additions or upgrades done to the house, the dwelling cost increases and leaves you open to be less than 80% of the replacement cost.  When that happens, you have coverage issues. 

If you aren’t sure if you should notify your agent of changes, do it just to be on the safe side.  Remember, we want to cover you but cant if you don’t tell us what you want covered.