Boat Insurance Spotlight - "Store your watercraft, not your coverage"

The boating season in Iowa may be coming to an end as the weather starts to cool, but that doesn't mean that your boat insurance coverage should end.  It is important that your boat is protected year-round.

One thing that you need to do is to make sure to winterize your boat.  You can pay someone to professionally winterize your boat, or you can go through the steps yourself.  Check out this Progressive "Life Lanes" blog with tips on preparing your boat for fall & winter if you want to winterize your boat yourself, or there is also a step-by-step guide from Discover Boating that might be helpful.

Why should you keep coverage on your boat when it is being stored?  Just because your boat isn't out on the water doesn't mean that it is safe from the risk of damage. 

• Last year, we had an insured where a raccoon family "moved in" to a boat over the winter and tore up the seats.  Because they had a fitted cover on their boat, this was a total loss covered by Progressive.
• The temperature fluctuates greatly in winter - sometimes boats will have damage from the freezing and thawing coverage.  If a boat has been winterized, this is a covered loss by Progressive.

Two key things to keep in mind to help protect your boat: 1)  You need to winterize your boat  2)  Make sure your boat has a fitted cover in place when in storage

Check our website for more information on boat insurance, or contact your Absolute Insurance agent today for a quote on your boat today!

You've Got Some Q's: We've Got the A's

Q:  Why does it matter whose name is on the title?

A:  This is an important questions and the answer is because the owner (titled individual) is ultimately liable for the vehicle.  For instance, if you are driving your friend's vehicle, and you get into a horrible accident that is your fault, the owner could still be sued after all insurance has been exhausted.  As the liability of the insurance follows the vehicle, so to does the liability of the titled owner of that vehicle.  Most insurance companies will want the insurance named in the same way the cars are titled.


Q:  Flood insurance will cover my belongings in my basement, right?

A:  No.  Flood insurance has limited coverage in basements period.  In fact, Flood Coverage will only recognize food freezers, heat pumps, sump pumps, water pumps, washers, and dryers as covered property in the basement.  These are NOT covered to replacement cost either.


Q:  I was waved through while trying to get out of a parking lot and was hit by another driver.  Is this my fault since I was waved through?

A:  Yes.  This actually happens quite a bit.  To begin, never rely on another driver to be your eyes and ears on the road.  Often times, the other driver is not looking at all parts of the road to make sure you are safe to pass through.  As the first article in this newsletter explained, be wary that you might be waved through and then hit by the driver that did the waving!  Fact is, only you know when it is best to go through and you can never rely on the judgment of another driver.  Be cautious of these situations, and better to be slow or late than in an accident.

Steering Clear of Staged Accidents

It happens more than you think - a driver causes an accident to collect the insurance money - and you could become the victim.

The Sudden Stop:

• "It happens like this," says Hartford Special Investigations Manager Odie Waters, "I'm driving along, minding my own business, in rush hour traffic, and the car in front of me inexplicably slams on (the) brakes.  I read-end that car and I get blamed for the accident."  The driver of the first car will claim that a "phantom" dog or child ran into the road, or that the car in front of them had stopped suddenly, although that car will not be involved in the accident.  Any witnesses will have driven off long before the policy arrive, and it's nearly impossible to prove a dog didn't dart out.

Inattentive Targets in Traffic:

• The drivers in such a scam cruise clogged highways and city streets, watching in the rear view mirror, looking for someone not paying attention.  In the past, two cars might employ a tactic called the "swoop and squat," where one car would crowd the victim from behind and another would stop suddenly in front.

The Phantom Wave:

• Another type of staged accident can occur when a driver is trying to merge.  The scam artist will wave you into the lane and then crash into the side of your vehicle.  This can also happen when someone is backing out of a parking space.  A second car will stop and wave the first car out, as if waiting for the space, but then drive into the first vehicle.  In both cases, the scam artist denies stopping or waving, and police find the victim at fault for failing to yield the right of way.

Tips to Avoid Staged Accidents

How you can avoid a staged accident:

• Pay attention to the road - no applying make-up, shaving, texting, or talking on cell phone.
• Be wary of "beater" cars - especially if they are changing lanes suspiciously.  Even if the driver has no ill-intent, the condition of the car might mean a poor driver
• Maintain a safe following distance
• Call policy and the insurance company promptly after an accident.  If the other driver discourages you from doing so, it is all the more important to call promptly
• Tell your claims handler if the accident seems suspicious

Off Season: Keep the Boat Insured

Summer is over, and you've taken your boat out of the water.  To save a few dollars, you cancel your boat insurance.  After all, what could possibly happen to your baby while it's hibernating? 

A lot, according to Progressive.  "You'd be shocked at the number of claims filed in colder months," says Dominic Mediate of Progressive.  "Nearly two out every 10 Progressive boat claims filed in northern states happen between Labor Day and Memorial Day."  Don't take a gamble on nothing bad happening.  Common off-season claims include:

• Fire, theft, vandalism, and flooding:  Most claims are filed for one of these reasons, which can occur anytime of the year.  Without coverage, boats damaged by fire, theft, vandalism, or flooding aren't protected
• Injuries that occur on or around your boat:  Some boaters don't realize they could be responsible for injuries that occur on or around their boat - even if the injured person was there illegally.  Without liability coverage, you could be responsible for the damages or the injured person's medical bills.  

Keeping your policy all year round might also save you a few bucks.  For example, Progressive's disappearing deductibles reduce your Comprehensive and Collision deductible 25 percent for every claim-free policy period.  Four policy periods in a row without a claim equals a $0 deductible.  Canceling your policy could mean paying more or the entire deductible, generally $500 or $1,000.

Check your policy and consult with your Absolute Agent before making any decisions.

Water Back-up of Sewers and Drains

As spring rolls in to an already saturated Iowa, make sure you know your risk for Water Back-up of Drains.

Water Back-up of Sewers and Drains is an optional endorsement on a standard home insurance policy that provides coverage in the event of water or sewage backing up through the drains or in the event of sump pump failure.  Neither of which are covered perils on a standard home insurance policy.

Typically, the cost for this coverage ranges between $40-$80 per year per $5,000 in coverage and some companies require that a sump pump be present in order to secure this type of coverage.  Also, many companies will not allow a current client to add the coverage during the term of the policy.  In these cases, it can be added at the time of renewal.  Other companies will have a 30 day waiting period before the coverage takes effect after the endorsement is issued.

The coverage provided is broad in nature and will cover contents, structural damage, and clean up.  Some companies have different deductibles for this type of coverage from the Named Perils deductible that shows on the Declaration page of your Home Insurance Policy.  There are some companies, however, that maintain the same deductible across the board.  Contact your Absolute Agent for further coverage questions and deductible options if you already have the endorsement in place.

Home Claims: How to Keep An Inventory

Keep an inventory of your belongings and updating it periodically is an important aspect to ensuring that the insurance company and properly compensate you for the loss of those belongings at the correct replacement cost.

Some individuals do so with simply keeping a written log of such in a safety deposit box in a bank or at a trusted residence outside their home.  Others will do about the same with photos and video.  These are all great examples of how to protect yourself from a low ball bid from an Insurance Adjuster, or to keep the supplemental checks to a minimum.

Now, as people and society is becoming increasingly paperless, there is a new way to create and save a household inventory.  At www.knowyourstuff.org, individuals can keep a running log of their belongings and can be stored on your home computer or laptop.

This is a very helpful website that not only can help you in the creation of the inventory (there is a short video you may watch that shows the proper steps), the site can actually store the inventory in a secured "Vault".  This software makes creating a home inventory fun and easy.  Once you have completed your inventory, it is easy to keep your information up-to-date.

However it gets done, it is very important to keep and maintain a household inventory.  While insurance companies usually don't have any problems with that which is "usual and customary" additional items and rather unusual items may be disputed.  As a small caution to this, even though you may have an inventory on all your jewelry, guns, and artwork, that does not necessarily mean that you have adequate coverage.  Those items will still need to be scheduled separately to ensure that they are covered to the full replacement cost.