Beginning in January 1, 2019,  Connecticut homeowners will see a $12 increase in their homeowner's policy. The Healthy Homes Fund Surcharge was passed by the Connecticut Legislature (CT HB05209) to raise as much as $100 million in the next 10 years mainly to assist Connecticut homeowners with crumbling foundations. The legislation is set to expire on December 31, 2029.

The surcharge is not a premium and applies to policies on residential dwellings with four or fewer units and on condominiums. Renters policies are exempt.

The bulk of the money collected in the Healthy Homes Fund Surcharge will be used for grants-in-aid to homeowners with homes located in the immediate vicinity of the West River in the Westville section of New Haven and Woodbridge for structurally damaged homes due to subsidence and to homeowners with homes abutting the Yale Golf Course in the Westville section of New Haven for damage to such homes from water infiltration or structural damage due to subsidence.  The fund will also go toward programs designed to reduce health and safety hazards in residential dwellings in Connecticut such as lead, radon and other contaminants or conditions and pay for the removal, remediation, abatement of these contaminants.

Two facts about Halloween: 1) Children are more than twice as likely to be hit by a car and killed on Halloween than any other day of the year according to Safe Kids Worldwide.  2) The National Highway Traffic Safety Administration reports that Halloween is one of the top three days of the year for pedestrian injuries and fatalities. So, drivers and parents need to pay extra attention.

Related Links: Umbrella Liability

What's a Fourth of July celebration without fireworks?

Who didn't handle sparklers as a kid? I know I did. But did you know hand-held sparklers burn at temperatures of around 2,000 degrees F? That's hot enough to cause third-degree burns and melt some metals!

Let's let these facts* tell the story...

• In 2017, 14% of the injuries reported were from sparklers, which are number-one cause of fireworks injuries
• Each year, firework injuries are in the thousands
• On average, 1,300 structure fires are caused by fireworks, including 300 vehicle fires
• In 2017, there were eight firework-related deaths to people ranging in age from four to 57
• Approximately 12,900 fireworks-related injuries were reported at hospital emergency departments in 2017, mostly occurring two weeks prior and after the July Fourth holiday

Misuse and malfunction were the primary causes for injury including:

• Setting off fireworks improperly and by hand
• Throwing lit fireworks at someone
• Dismantling and manufacturing fireworks
• Lighting fireworks too close to someone
• Trying to re-ignite dud fireworks
• Placing fireworks too close to a heat source
• Tip-over incidents
• Debris
• Errant flight paths
• Exploding fireworks while still in the tube
• Sparks exiting from the rear of the device

If you're going to handle fireworks, use them responsibly, safely and follow the law. Have a safe and enjoyable Independence Day!

Related links:
Fireworks safety tips
Homeowners Insurance

*Source: U.S. Consumer Products Safety Commission (CPSC)

In 2017, there were 16 separate disasters in the U.S., which generated total record losses in excess of $306 billion (1). Most damage was the result of flooding, including historic floods associated with Hurricane Harvey in Texas and Louisiana, and record high water levels in Missouri, Arkansas and Illinois.

Here are facts you should not ignore:

• Flooding can happen practically anywhere at any time
• 25% of all flood damage occurs in low- to moderate-risk areas
• Floods occur in all 50 states
• Flooding is the costliest and most common natural disaster in the U.S. (2)
• Most Americans are seriously under insured

In the Northeast, floods can occur from spring snow melt, rapid rainfall, changing weather patterns and clogged rainwater systems. In general, they can also occur from tropical cyclones, structural failure leading to flash floods, or new building development.

It doesn't take much water to destroy a property and wipe out the finances of an uninsured homeowner or business. The National Flood Insurance Program (NFIP) estimates that 1 inch of water in a home can create $20,000 worth of damage (3). And yet, few property owners have flood insurance (besides those in high-risk areas who are required by their lenders to purchase NFIP policies).

Think about this:

• Only 12% of U.S. homeowners had a flood insurance policy according to an Insurance Information Institute poll in 2016 (4)
  
• Less than 20% of homes damaged in Hurricane Harvey were insured for flood.
• 56% of respondents mistakenly believed that a standard homeowners policy covers flood damage according to a March 2017 survey.
• Most business insurance policies exclude flood damage.
• Flood maps are drawn by FEMA. Some research suggests that current flood maps seriously underestimate those in the high-risk 1-in-100-year floodplain, and one study suggests 40 million Americans, instead of the current estimate of 13 million, are at high-risk.

When considered together, these statistics paint a grim picture for Americans who don’t currently have flood insurance.

What about you?

A licensed insurance agent can help you understand the different insurance products available. Even with government-backed NFIP policies, some people may need excess coverage to cover up to replacement cost, and still others may benefit from various coverage options available with private insurance products instead of an NFIP plan, when available.

Ask a licensed Connecticut Insurance Exchange agent about flood insurance today.

Source: (1) According to the National Oceanic and Atmospheric Administration (NOAA). (2) FBLIC (3) National Flood Insurance Program (NFIP) (4) Insurance Information Institute Poll

Where it lands is the key to liability...
Q: Let's say a neighbor's tree falls during a storm and crashes into your home. Who pays for the damage? This isn't meant to be a 'trick' question, but it may seem like one.

A: Even though it's your neighbor's tree, it's your responsibility. If the tree was in good health and it came down due to an act of God, nobody can be held responsible for that.

Tree damage — who pays for what?

• The property owner whose house is hit by a tree is covered under their homeowner's policy.
• The property owner whose vehicle is hitby a tree is covered under their auto policy — but only if they have "comprehensive" coverage on the vehicle.
• If the tree that falls is rotted or diseasedand should have been pruned or cut down, then a question of negligence can be raised. The property owner may seek to hold the tree owner liable for damages.
• Tree removal is only covered if a structure or vehicle is hit by the falling tree. NOTE: Pools are not covered. So, if a tree falls only on your lawn or garden — with no damage to your home or vehicle —the cost of tree removal, damage to lawns, gardens or damage to pools are generally not covered. Check your policy for specifics.
• If a tree on your property falls into your neighbor's yard without damage to their home or vehicle, tree removal is not covered by either party's insurance. You and your neighbor must discuss who pays for cleanup.

Contact your Connecticut Insurance Exchange agent at 860 666-5443 or email us at info@cieltd.us if you have questions about tree damage liability. We will be happy to review your policy and exposures to make sure you are properly covered!

There's a lot more to a home remodeling project than the price of the job. If you’re planning to do the work yourself or hire a general contractor (GC) or subcontractors, your FIRST CALL should be to your CIE agent to make sure you are adequately insured during the renovation and after it is completed.

Here are five 'what ifs' you should know BEFORE you begin…
 1. What if the project can't be finished?After you’ve selected a GC — but before you sign a contract for the project — be sure the GC is licensed and bonded. If they can’t finish the job for some reason (such as illness or bankruptcy), the bond is intended to provide coverage for financial losses you may incur in getting the job finished. Your contract with the GC also should agree all work that is to be done is in accordance with current building codes and all permits will be obtained.

Request a copy of your contractor's Certificate of Insurance. Check its effective and expiration dates to see if the coverage will be in force the entire time work is being done. If you aren't sure, contact your CIE agent who will be happy to review the certificate with you.
2. What if materials or equipment are stolen from my project?In general, building materials and equipment belong to the GC or subcontractors are NOT protected from theft by your homeowner's policy. A Builder's Risk Policy can be tailored to cover any of the contractor's equipment or materials that are left on your property to be installed. EXAMPLE: with the high cost of copper, thieves target construction sites looking for copper plumbing pipe.

You should consider the purchase of a Builders Risk Policy for the length of YOUR renovation project. Be prepared. Determining the proper coverage and policy may require several conversations with your CIE agent as well as lenders, but is well worth the effort. Ask your CIE agent about a Builder's Risk policy.
3. What if a subcontractor gets injured at my home?Confirm if your subcontractors carry Workers’ Compensation coverage of their own or are covered under the GC’s policy. If not and a subcontractor is injured on the job at your home, YOU could liable for injuries!
4. What if policy limits aren't enough?General Liability limits vary, but most GCs carry a $1 million limit. This amount may not be enough to cover damages. As the homeowner, you should consider adding additional limits with the purchase of an umbrella policy. Ask your CIE agent if an Umbrella Policy is right for you. You may be surprised how affordable it can be!
5. What if something goes wrong after the project is done?Completed Operations coverage provides insurance for things that can go wrong AFTER a job is finished. EXAMPLE: You have new gutters installed. But a year later, the gutters fall off because the contractor didn't anchor them properly. You contact the original contractor only to find out they are out of business. Ask your CIE agent about Completed Operations coverage.
How much more is your home worth AFTER the renovation?Remember to speak with your CIE agent about increasing coverage for the NEW value of your property after it’s been remodeled.
Got questions about your upcoming home renovation project?We're here to help because your CIE agent is looking out for your best interests. Contact us at 860 666-5443 or info@cieltd.us