Situations change. Time to ask yourself, 'do I have enough coverage?'
Everyone is more than busy these days. However, it's a good idea to stop and re-assess your insurance coverage on a regular basis. That’s because coverage may very well need to be updated or changed to accommodate any life changes to fully protect you, your loved ones and your property.

Consider this — if you aren't covered properly, the cost of a claim may come out of YOUR POCKET. That's why DIY, online insurance sites may seem to save you money. But in actuality can COST YOU MORE in claims... A LOT more... if you don't have high enough limits.

Here's an actual case straight out of the "penny-wise-pound-foolish" department:
In 1984, while he was a captain in the U.S. Army, Charles Cohan purchased an automobile insurance policy from USAA with a $100,000 per-person liability limit. He kept the same coverage limits through 2011. He married Lisa Cohan in 1995 and added her to the auto policy as an “operator,” but never increased the liability limit.
In 2002, the Cohans purchased land and built a new home. They purchased homeowner's insurance with liability coverage in the amount of $1 million per occurrence but did not purchase an umbrella policy.
Lisa Cohan, while driving a Cohan vehicle, collided with another vehicle, killing the driver. A wrongful death suit was brought against the Cohans. The insurance company defended the action on Lisa's behalf. The matter settled for $300,000 but the insurance company paid only the policy limits of $100,000. The Cohans were responsible for paying the remainder of the settlement amount — $200,000!

Got questions about policy limits?
Don't be penny wise and pound foolish. Know your limits. Protect yourself, your loved ones, and your assets. Contact Connecticut Insurance Exchange at 860 666-5443 or info@cieltd.us for more information. We're always here to help!

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 hit by 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 diseased and 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 insurance agent to make sure you are adequately insured during the renovation and after it is completed.

Here are five 'what ifs' you may need to 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. Contact the insurance agency that issued the certificate if you have questions about coverage.
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 insurance agent as well as lenders, but is well worth the effort.
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 are inadequate? 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.
5. How much more is your home worth AFTER the renovation? Remember to speak with your insurance 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!
Connecticut Insurance Exchange offers a full line of insurance products, including Builder's Risk and Umbrella policies. Contact us at 860 666-5443 or info@cieltd.us to see how we may be able to assist you.