OMG…My jewelry is worth that much!!!

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Usually finding out your jewelry is worth more than you thought it was is a happy surprise…like when you are having it appraised to give to your children, or when you are selling certain pieces, or just when you want to know what it is worth.  But imagine what a huge disappointment it is to find out you could not replace that favorite ring you just lost because you did not have it properly insured. 

How could this happen?

You were so diligent in getting the appraisal and proper limit of insurance when you first purchased it several years ago.  Either unaware that the value of jewelry has been increasing steadily over the past few years or knowing it has but not giving another thought about how that would affect your coverage.  After all you insured the ring so you should be all set.

Unfortunately this is a common mistake made by most people with scheduled valuable articles, especially jewelry…not getting updated appraisals every few years and adjusting your coverage accordingly.  Until that awful day when you lose that ring and you find out you have it insured for half of what it is going to cost you to get a comparable ring.

What can I do to prevent this from happening to me?

Don’t wait until it is too late….be sure to get your jewelry appraisals updated regularly and notify your account manager of any changes in value.

And remember unscheduled jewelry has limited coverage. All Homeowner policies have a maximum limit they will pay for the theft of unscheduled jewelry. The standard limit is $1,000. In addition the standard Homeowners policy does not cover lost jewelry at all.   If you have pieces of jewelry that are valued under $10,000 and want to cover but them but don’t want the hassle of itemizing the values and keeping track of what items are being insured, you can now schedule jewelry on a blanket basis, i.e. you don’t have to list each item. You determine how much coverage you want in total for your jewelry and that amount will be your blanket limit. Blanket coverage is subject to a maximum per item limit…usually $10,000 (some companies have a higher limit). For those pieces that fall under that value, this is an easy way to cover them – same broad coverage. For those valued in excess of that value, you will need to schedule on an itemized basis with regularly updated appraisals.

Again, don’t wait until it is too late…if you have jewelry that is not currently scheduled either on a blanket basis or itemized, contact your account manager to discuss your options.

 

 

 

 

 

 

 

 

Important Information for Parents of Teenage Drivers

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The day has come…your teenager gets his or her license…how exciting! Then the panic sets in and the questions swirl through your mind.

Do I have to add my child as an operator on my auto insurance policy?

Yes, you do have to add the newly licensed driver. You are required to list all licensed operators in your household as operators. If your child only operates your vehicles occasionally, then the highest rated vehicle on your policy will be charged an occasional operator rate. If she/he is the principal operator of one of your vehicles, then that vehicle only will be rated with the inexperienced principal operator rate. If your child ends up getting his/her own vehicle, then most Massachusetts insurance companies will allow you to list the child as a deferred operator so you no longer have to pay an inexperienced rate on your policy. Beware, however, that there are now companies writing in Mass. that no longer allow deferrals. So you may be paying for the inexperienced operator on your policy and on their policy.

How much is this going to cost me?

The inexperienced operator rate can be substantial. You can’t avoid this BUT there are cost savings measures you may be able to take advantage of to keep those costs down:

  • Consider increasing your collision deductible. Collision is the one coverage that you have some control over the cost based upon the deductible you select. Increasing the deductible from the standard $500 to $1,000 will usually result in a worthwhile savings.
  • Be sure you are taking advantage of the Good Student Credit offered by many companies if your child is eligible, i.e. has a B or better average during his/her last term. All you need to do to get this credit is provide your insurer with a copy of the latest report card or transcript. 
  • Let your account manager know if your child attends school over 100 miles away as most companies offer a credit for this situation, provided the child does not have one of your vehicles at school. 
  • As stated above, if you child obtains his/her own vehicle be sure you are insured with a company that will allow you to defer the child on your policy. Deferrals are applicable to Massachusetts auto insurance only.

Do I have enough protection?

Statistically, having an inexperienced operator drive your car increases the likelihood that car will be involved in an accident. You hope your teenager will defy those odds and never have an accident but if they do you, as the owner of the vehicle, will be financially responsible for the damage he/she causes. It is definitely the time to review your liability limits to see if they are sufficient to protect your family’s assets against a severe loss. If not, increase those limits to a level you feel most comfortable with. Then, if you want even more protection, consider a Personal Umbrella policy which will give you excess liability coverage of at least $1,000,000 (higher limits are also available) for a very reasonable premium.

Contact your account manager as soon as your teenager gets that license and she will be happy to go over all of your concerns and help ease that initial panic.

 

 

 

 

 

5 Common Mistakes Made by Condo Unit Owners

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Purchasing a condominium presents itself with some unique insurance ramifications of which the buyer is often not aware. 

Here are 5 common insurance mistakes often made by new condo unit buyers​​

  1. Assuming that the condominium master policy covers their personal property and personal liability. This is NEVER true.
  2. Not reviewing (or having an insurance professional review) the insurance section of the condo by-laws.  The by-laws usually dictate what damages to the unit will be covered by the master policy vs. what damage the unit owner is responsible for and hence needs to insure against.  The varying degrees of responsibility are many depending on the language in the by-laws.
  3. Not fully understanding the insurance needs of a condo unit owner and how the Condo Unitowners policy responds to those needs.  Risks unique to condo ownership include Loss Assessment coverage, Improvements and Betterments made to the condo, and the Master Policy deductible
  4. Failue to notify their insurance agency or company of changes to the Master Policy deductble and/or insurance clause of the condo by-laws.
  5. Not realizing how inexpensive getting the proper coverage can be.

If you would like more information on insuring your condo unit, click here for a digital version of our condo brochure.