The key component to any successful business is their people and this summer we had the privilege to add another great team member to our family, Beth Kilpatrick. Beth brings a wealth of business and life experience to our team and as you will learn she also has a real passion for her family and helping others.

As a child I loved pretending I worked in a store selling my toys, serving ice cream to people, or actually having a lemonade stand. Needless to say, I’m not pretending anymore and I can really do what I love, helping people. Over the years I have worked in the customer service field and even owned my own business with my husband while staying home with my children. Then I returned to work part-time as a Para-educator at Manheim Twp School District. Now that my children are older, I am excited to make a career change into the world of insurance and jump back into a full-time customer service career.

As a para-educator, I was fortunate to become educated to work with special needs children for 11 years. During those years of working with children, I learned the importance of being patient and understanding. I believe patience and understanding are critical when working with customers, because I appreciate when others show these same qualities towards me. Simply put I believe in the Golden Rule. I expect a customer service representative to be pleasant, knowledgeable, patient, and understanding under any circumstance and that’s what I want to give to my customers.

My husband, Mark and I have been raising our 5 sons in Manheim Township for the last 20 years. Our oldest son Erik is 27 years old, a second grade school teacher at Pequea Elementary, head basketball coach for the JV Penn Manor basketball team, and a new father to my first granddaughter, a beautiful 7 month old named Finley. Next in line are 21 year old twins, Michael and Travis. Michael is a senior attending Shippensburg University with a dual major in International Management, Supply Chain/ Logistics, and a minor in German. He plans on graduating in December 2012. Travis is a senior attending California University of PA with a major in Sports Management and a minor in Parks and Recreation. He will be graduating in December 2011. Fourth in line is Wesley, who is 18 years old and a Freshman attending Slippery Rock University, with a major in Sports Management and minor in coaching. Last but not least, there is Justin who is 13 years old and in eighth grade attending the Manheim Twp Middle School. Justin loves to play baseball, football, and is a devoted Green Bay Packers fan.

Mark and I love traveling to the Caribbean together. As a family, we love to have cookouts on our deck, go to the boys sporting events, spend time with our new addition to the family (Finley), and play a competitive game of Clue.

I currently passed my Life and Health Insurance examination and now I am working on getting my Property and Casualty license. I am learning so much working at Baron Insurance and I look forward to using my knowledge and education to help customers achieve what they’re looking for in a personal insurance agent. I am very excited to be part of the Baron Insurance Group family!

You also know that.

There is no question that the ownership and use of our autos present us with the greatest personal liability exposure. But our normal daily activities can expose us to the potential of a large liability claim that could threaten our personal assets.

One of the best ways to understand the need for a Personal Umbrella policy is to review actual claim examples. Listed below are actual personal liability claims that illustrate the need for higher personal liability limits.

Loss #1:
A babysitter left a 5-month-old infant unattended in a walker. The infant toppled the walker, struck her head on the floor and suffered brain damage. The parents of the infant sued the teenage babysitter and her parents. The court awarded the parents $11,000,000.

Loss #2:
A 28-year-old engineer dove into a friend’s above-ground swimming pool, struck his head on the bottom and, as a result, became a quadriplegic. He sued both the homeowner and the pool manufacturer. The court found the homeowner to be 60 percent responsible and the pool manufacturer to be 40 percent responsible, and awarded $10,000,000.

Loss #3:
An 18-year-old college student was struck by fraternity paddle during initiation. He sustained facial fractures and blindness in his left eye. The fellow fraternity members and their families were sued. The court awarded $1,300,000.

Loss #4:
The insured’s 18-year-old son was driving his parents’ car to the store with his 19-year-old girl friend. He left the roadway and hit a tree. The son told the police that another car cut him off, but there were no witnesses, and the girlfriend had no recollection of the accident. She was hospitalized for over a month with multiple fractures and internal injuries and received extensive physical therapy. The Personal Umbrella insurer settled with the girlfriend for the policy limit.

Loss #5:
The insured hosted a party at his home. Among the guests was a family friend, who was also the insured’s financial advisor. The friend brought his wife, their 2-year-old child and their baby to the party. The insured gave them a jug of spring water to mix formula for the baby. The 2-year-old child also had a drink of the water. Shortly thereafter, both children became ill. The family left the party and took the children to the hospital. The hospital confiscated the water jug which was found to contain arsenic. An old label was found wrapped around the handle with the words “weed killer” printed on it. The insured had mistakenly given the jug, which was similar to the ones containing spring water, to the family. The baby died and the 2 year old survived after being in critical condition several days. The Personal Umbrella liability limit was paid.

Loss #6:
A couple hosted a pool party for their teenage children. They did not provide any alcohol, but it was brought by some of the guests and was available. After leaving the party, one of the guests was severely injured in an auto accident, and the injury was attributed to his consumption of alcohol. This case went to the Wisconsin Supreme Court which decided that anyone who sells or furnishes alcohol to a minor is responsible for the minor’s injuries as well as any injuries caused by the minor. The opinion of the court was that the homeowners should have prevented the consumption of alcohol by minors on their premises. Both the Homeowners’ and Personal Umbrella policies responded to this claim.

The above losses show the consequences of situations that can quickly exhaust the liability limits of the underlying policies.

For less than the cost of a cup of coffee a day, most folks can purchase a Personal Umbrella policy with a limit of $1,000,000, possibly $2,000,000 or even $5,000,000.

Reprinted with permission with Insurance Agents and Brokers

With all of the bad storms the last few weeks we are getting a lot of calls about roof damage. Damage to your roof can take a few different forms. 

In extreme cases sections of your roof may be blown off and completely missing. The key thing here is to get some type of protection up there as soon as possible. This can sometimes be as simple as covering the area with a tarp.  Many of us remember after a hurricane went through Florida, all of the pictures of “blue roofs”. These tarps are only a very temporary solution though and are not meant to last very long. They are to protect the contents of your property until a more permanent solution can be arranged.

Other damage may be more cosmetic. Maybe a shingle blew off, or some gutter was damaged. Some damage may not even be noticeable from the ground. After a hail storm, small dents or punctures may appear in your roof membrane, metal flashings, or shingles. These are sometimes only visible by a close inspection on the roof. I would recommend that after a severe storm, that you have a local roofing professional examine your roof.

BEWARE the “Storm chasers”!  After any severe weather event they descend on an area like locusts. They come from all over the country and can be in an area almost overnight. They may even set up a temporary local office, so that they can use a local address.

Residential roofing contractors in Pennsylvania must obtain a license (they are relatively easy to get). Under the “Pennsylvania Home Improvement Consumer Protection Act” proposals must include the approximate start and completion date. The proposal must also include a “Right of Rescission” which allows you to rescind the contract within three business days of signing with no penalty.

Contractors from your general area will be much better to work with. You can check with local references and maybe even look at other jobs that they have done over the years in your area. Chances are that they are members of local organizations and their reputation is very important to them.

Joe has many other great roofing and home maintenance tips on his blog, Facebook page and Twitter account.

As we enter the summer vacation months, many families will be renting cars and unexpectedly dealing with the same rental car insurance question as I did a few years ago. Faced with a number of choices, families will either purchase all the coverage or they will decline the insurance without knowing if they are covered by other policies. This can lead to either wasting money by purchasing coverage you already have or leave you dangerously uninsured or underinsured.

Homework Before the Rental Car Counter

The first thing you should do if are planning to rent a car is call your insurance agent before getting to the rental counter. In most cases, whatever coverage and deductibles you have on your own car would apply when you rent a car, assuming you are renting car for pleasure and not for business. This means if have comprehensive and collision coverage on your vehicle, the rental car will likely also be covered if it is stolen or damaged in an accident.

Another potential source of existing insurance coverage for rental cars is your credit card. To find out what type and how much coverage a credit card company offers call the 800 number on the back of the card. The Insurance Information Institute (III) recommends, “If you are depending on a credit card for insurance protection, ask the card company or bank to send you their coverage information in writing. In most instances, credit card benefits are secondary to either your personal insurance protection or the insurance offered by the rental car company.”

At the Rental Car Counter

Contacting your agent prior to getting to the counter is going to make reviewing these common rental car insurance coverages much easier and avoid the panic and uniformed decision I made when trying to get that convertible.

1. Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW): This is the rental company’s version of comprehensive and collision coverage insurance. If you do not have comprehensive or collision on your own vehicle this coverage is recommended in case the car is vandalized, stolen or damaged.  But be careful. According to III, your coverage may become void if the accident was caused because you were speeding, driving under the influence or some other reckless error on your part.

However, you may still want to buy this coverage even if you have comprehensive and collision on your own vehicle. Yes, there is some double coverage by doing this but a rental car company may charge for something called “loss of use”. Let’s say you get into an accident with your rental car and it causes $5000 of damage to the rental car. Since you have collision coverage on your own car your insurance pays the $5000 damage minus your deductible. Then the rental car company sends you a bill because they cannot rent the car to someone else (loss or use) for 2 weeks. Your car insurance company may not pay this expense and you could be left picking up this expense unless you purchased this waiver. If you have comprehensive and collision on your vehicle ask your agent if your policy covers “loss of use” and find out from the rental company if they would charge for “loss of use” to determine if buying this option makes sense.

2. Liability Insurance: Rental companies are required by law to make sure all rented cars have at least the state required amount of liability insurance. If you do not have any auto insurance you will be required to buy this coverage. Remember that state minimums do not offer much protection and it is recommended to buy additional liability insurance above the state minimums. 

If you already have auto insurance rental car company will ask you to purchase additional liability insurance. According to III, “You should probably only forgo the additional liability protection if you have adequate amounts of liability protection on your own car.” If you are interested in additional liability insurance it may be a better option to talk to your agent about an umbrella liability policy versus getting through the rental car company. 

3. Personal Accident Insurance: This offers you and your passengers coverage for medical and ambulance bills for injuries caused in a car crash. According to III, “If you have adequate health insurance or are covered by personal injury protection under your own car insurance, you may not need this additional insurance.”

4. Personal Effects Coverage: This provides coverage for stolen items in your car while on vacation. If you have a home or renters insurance policy, you are already covered for theft of your belongings away from home, minus the deductible. However, the amount of coverage away from home could be limited so tell your insurance agent if you are planning to take valuable items on the road.

In hind sight, the coverage I had on my own auto and renter insurance for our Everglades trip probably would have been adequate even if something did happen after I declined the car rental insurance coverage.  However, I would not of known it was adequate after it was too late and that is never the time to hope you have the right insurance. Take 5 minutes call your agent, be prepared and happy renting!

The other week Jeff Geoghan from Your Lancaster Home stopped by to ask me what are some “hot button” issues for insurance companies when it comes to older city homes in Lancaster PA area. Jeff explained that there have been a number of instances in his 7 years of brokering homes for sale in Lancaster City and the boroughs where the insurance suddenly becomes a “front burner” issue because a problem or barrier to securing coverage is uncovered.

We reveiw some common issues that can trigger concerns on the part of insurance companies and how these things are quite common in older homes. Buyers need to be aware of these issues BEFORE they write a contract on the home. Otherwise, buyers may forced to buy a very expensive home insurance policy, if they can find insurance at all, or the closing date may be delayed.

Check out other great real estate tips on Jeff’s Youtube Channel – Lancaster PA Real Estate

What is “Insurance to Value”

Insurance to Value is a provision in most home insurance policies that states you must insure your home to a specified percentage of the value of the home. This requirement is normally 80%-100% of the cost to replace or rebuild the property (not the market value). In return to complying with this provision, the insurance company usually offers lower rates. However, if the Insurance to Value requirement is not met, you are considered “underinsured” and can be penalized when a property claim is filed. The penalty is calculated using the formula below.

Insurance Carried on Property

————————————–     X   Damage Amount  =  Amount Paid by Insurance

Insurance Required on Property

Let’s revisit our example to see why the Insurance to Value provision caused the insurance company to pay $20,000 less than the $100,000 of damage you suffered in the fire. After letting you blow off some serious steam, the adjuster explains that the amount of “Insurance Carried” on your home insurance policy was $200,000 but the “Insurance Required”, based on your 100% Insurance to Value provision, is $250,000. Thus, you are underinsured by $50,000 or 20% and your $100,000 of fire damage is only covered for $80,000*.

$200,000 (Carried)

—————————   X   $100,000 (Damage) = $80,000 (Paid by Insurance)

$250,000 (Required)

How Can I Protect Myself

I know this example may sound extreme but it can and does happen. It is estimated that 60% of homes are underinsured by as much as 20%. Here are some tips to protect yourself from being underinsured and from being disappointed if you have a home insurance claim.

1. Contact your agent to find out what your “Insurance to Value” requirement is on your home insurance policy. The impact can be significant if it is 80% or 100%.

2. Have your agent calculate the replacement cost value of your home and find out if you are underinsured. Even if you have to pay a few extra dollars to increase the coverage on your home insurance, it is much better than going through a claim that leaves you paying thousands of dollars out of pocket.

3. Make sure to contact your agent anytime you upgrade, improve or make an addition to your home because this may change the amount of insurance you are required to carry. See more on this subject in our prior blog post “Don’t Improve Your Home Without Improving Your Insurance”.

4. If you are shopping your home insurance, make sure to ask what the Insurance to Value requirement is and how a partial loss and total loss claim would be handled. Not all insurance companies handle this the same way and this is a great example why shopping insurance solely on price can be dangerous.

Were you aware of this important home insurance penalty? Please leave questions and comments below.

* This example assumes the actual cash value settlement option is less than the Insurance to Value option

Many cities have specific ordinances or laws which state that if a building is damaged, it must be rebuilt to meet certain specifications or construction codes. Since the new PA construction code now requires a sprinkler system be installed for all newly built homes, any older homes that are rebuilt would also have to conform to the new sprinkler code. For example, if your 2000 square foot home built in 1995 burned in a fire and it needed to be rebuilt, you would be required to install a spinkler system.

The Bad News: According to the Federal Emergency Management Agency, the average cost to install a residential sprinkler system in an existing home is approximately $2.50-$5 per square foot, assuming you have an adequate and reliable water supply. Thus, that 2,000 square-foot home could cost an additional $10,000 to just install the required sprinkler system to meet the new construction code.

The Good News: If you have a covered homeowner insurance claim on a home without a sprinkler system, most policies have a coverage called “Ordinance & Law” to help cover the cost of adding one. This provision covers:

1. The cost to tear down the undamaged portion of the house

2. The cost to rebuild the home up to the current  construction code

The standard amount of Ordinance & Law coverage under a standard HO-3 homeowner insurance policy is 10% of the home coverage for a covered loss (more coverage may be provided by endorsement). For example, if that same 2,000 square-foot home is insured for $200,000 then the Ordinance & Law coverage may be $20,000.

The Potential Risk: In this example, $20,000 of Ordinance & Law coverage sounds like more than enough coverage since the average sprinkler system for this size home should cost around $10,000, but remember this coverage is also used to rebuild the home to all current construction codes plus the cost to tear down the undamaged portion of the house. Thus, the standard 10% of Ordinance & Law coverage may not be enough for a home that requires a sprinkler system plus other significant changes to meet construction codes and the extra costs to tear down the undamaged areas of the home.

What Home Owners Should Do:

1. Make sure you have Ordinance & Law coverage on your homeowner insurance policy. The coverage details can be found in your policy or by calling your agent.

2. Work with your insurance agent to determine how much Ordinance & Law coverage is needed. Some factors to include would be the sprinkler system installation cost, home location, type of water supply and the age of the home.

3. Find out if the Ordinance & Law coverage is inside or outside the coverage limit on your home insurance policy. If it is inside, that means the $200,000 of coverage on the house would only be $190,000 after taking the $10,000 needed for the sprinkler system. This could leave you underinsured in the case of a total loss.

4. Add extra Ordinance & Law coverage by endorsing your homeowner policy if needed.

Supporters of the new PA sprinkler law believe it increases safety but those who are opposed believe it adds unwanted cost pressures to the already suffering construction industry. What are your thoughts and opinions? Leave a comment below.

Roof, Gutters and Downspouts

- Scan your roof with binoculars. Look for damaged, loose or missing shingles that may leak from melting snow or ice dams.

- Check flashing seals around vent stacks and chimneys for cracks and repairs.

- Clean gutters and downspouts frequently throughout fall to prevent build-up of leaves, pine needles and other debris. Neglected gutters can lead to wood rot problems, pest infestations and ruined gutters.

- Be sure that all gutter support brackets are securely in place to reduce the risk of gutters collapsing due to the weight of ice and snow.

- Ensure that water drains properly and add extension to downspouts so water runs at least 3 to 4 feet from the home. Pooling water can cause damage to foundations, driveways, and walkways.

 - Check basement walls and floor for dampness. Be sure to clean you dehumidifier regularly, if you have one.

 Windows, Doors and Siding

- Change summer screens to cool weather storm windows and doors.

- Inspect and repair any loose or damaged window or door frames.

- Check window and door caulking for loose or missing compound. Repairing caulking around windows and doors can prevent drafts, which can lower heating bills and prevent water damage.

 - Look for cracks and holes in house siding and repair with caulking.

 Heating Systems

- Replace the filter in your furnace and consider having a heating professional check your heating system to ensure optimal performance and to discover any minor problems before they turn into costly major repairs.

- Clean your ducts to better your heating system’s efficiency as well as to reduce household dust and to provide relief to those with respiratory problems.

 Plumbing

- To prevent pipes freezing and bursting, ensure that the pipes are well insulated.

- Know how to locate and turn off the water shut-off valve in case pipes do freeze.

 - Check for cracked or missing caulk around the base of your toilet, bath tub, and bathroom cabinets. Properly sealing gaps between your bathroom fixtures and flooring material can prevent damage.

 - Drain hot water heater. Remove sediment from the bottom of the tank

 Chimney and Fireplace

- Call a professional in to inspect and clean your chimney. Fireplaces that are regularly used during the season should have an annual cleaning. Soot and creosote, which build up inside the chimney, can ignite when a fire is lit in the fireplace.

- Test your fireplace flue for a tight seal when closed.

 - Remove bird nests from chimney flues and outdoor electrical fixtures. Bird nests on top of light fixtures are a fire hazard. Bird nests in chimney flues can prevent a proper venting of combustion gases and can catch fire from sparks.

 - Inspect and clean dust from the covers of your smoke and carbon monoxide alarms

 Attic ventilation

- Be sure attic insulation doesn’t cover vents in the eaves in order to prevent winter ice dams on the roof.

- Be sure ridge vents and vents at eaves are free of plants and debris.

- Check bird and rodent screens in your attic vents to prevent any unwanted guests.

 Landscape and Yardwork

- Clear the area of debris at least 1 foot away from exterior walls, and rake gunk out of corners and away from the foundation. Better ventilation can help dry out surfaces to help prevent decay and damage.

- Cut back tree limbs growing within about 5 feet of the house and roof. Also trim trees that are dangerously close to power lines. Heavy snow and ice can cause damage in the winter.

 Source: Servicemagic Fall Preventative Home Maintenance

Picture via LancasterOnline (Dan Marschka/Staff)

According to LancasterOnline, this most recent Lancaster, PA storm had winds up to 70 mph and may have caused nearly $2 million in damage. Much of the damage was caused by fallen trees and many people are filing home insurance claims to pay for the damage and clean up. However, a standard home insurance policy does have coverage limitations for damage caused by trees and for trees themselves. Make sure to understand these coverages and limitations before submitting a home insurance claim to avoid any surprises.

My neighbor’s tree fell on my house, whose insurance pays?

Generally, who owns the fallen tree is not the determining factor of whose insurance will respond. The person who submits the claim is actually the person who owns the home that was damaged by the fallen tree. So if your home or other covered property is damaged by anyone else’s tree, your home insurance policy will respond. Likewise, if your tree falls on anyone else’s home or other covered property, their home insurance will respond.

The only time a home insurance policy should be involved with damage to someone else’s property is if the tree owner was liable. This includes a homeowner neglecting a rotten or leaning tree that should have been removed or trimmed prior to the damage occurring.

Will my home insurance replace my damaged landscaping and trees?

Trees, shrubs and other plants (including lawns) are covered on a standard home insurance policy but only for losses due to fire, lightning, explosion, riot, non owned vehicles, vandalism and theft. On the surface, this sounds pretty good, but did you notice that wind or ice are not included. So if your 100 year oak tree fell over due to wind storm, the insurance company will not pay to replace it.

Will insurance pay to remove my tree?

The cost to remove a tree is only covered if the tree damaged a covered structure on the insurance policy, if it blocks a driveway or if it prohibits access to the home. However, most home insurance policies have $500 or $1000 limitation to remove trees if a loss is caused by wind, hail, weight of ice, snow or sleet.

If a tree falls into your yard and does not cause any damage or restrict access, there is generally no coverage to remove the tree. Tree removal coverage varies based on the insurance company and it is best to ask your agent what your specific coverage limits are for tree removal before submitting a claim.

If you have any other tree related home insurance questions, let us know by leaving a comment below.

What Does Renter Insurance Cover?

Coverage for your Personal Belongings

Whether the contents of your home – furniture, clothing and other items – are stolen or destroyed in an insured disaster, such as a fire, they are covered under this part of the policy. However, just like a homeowner insurance policy, most renters insurance policies have special limitations for certain types of property.

Buy the replacement cost option. This will help ensure you get what it costs to “replace” your belongings at claim time and it only costs a few extra dollars per year.

Liability Protection

When most people think of buying renters insurance they want to protect their belongings, but the most valuable part of a renters policy is the liability coverage. Liability protection covers you against claims or lawsuits for bodily injury or property damage that you or your family members negligently cause to other people or property. It also pays for injury or damage caused by pets.

So if your son, daughter or dog accidentally ruins your neighbor’s valuable rug, you’re covered. But if they destroy your rug, your liability coverage does not provide compensation.

Your policy also provides medical coverage up to a specified limit. In the event a friend or neighbor is injured in your home, he or she can submit the medical bills to your insurance company. Expenses are paid without the injured party filing a liability claim against you.

Coverage for Additional Living Expenses

If you lose the ability to live in your apartment because of a covered loss this coverage pays for additional living expenses you incur due to temporary relocation. Note that it does not pay for the total expense, just the expenses due to the vacating of your home.

How Much Does Renters Insurance Cost?

Renters insurance is one of the best insurance buys on the market. Most policies in the Lancaster, PA area range between $50-$250 per year depending on the amount of personal property and the deductible on the policy.

Sometimes renters insurance can even be free! When renters insurance is also placed with the same company as your auto insurance, you can get a new discount on your auto insurance that can completely offset the cost of the renter insurance.

Although renter’s insurance is usually not required, it is just as necessary to have. It is a great example of using the philosophy of getting a lot for a little.