Senate Clears Flood Insurance Bill for Vote To Keep Rates Low

On Monday night, the Senate cleared for floor action legislation that could delay implementation of most flood insurance premium rate hikes for customers of the National Flood Insurance Program (NFIP) imposed by a 2012 bill for as many as four years.


The Senate brought the bill to the floor through rarely used emergency procedures by an overwhelming 86-13 vote. Floor action could begin as early as Wednesday, industry officials said.


The legislation has prompted animated responses from both supporters and opponents. But, an industry lobbyist cautioned that “this was a very strong vote” to clear the bill for floor action under accelerated procedures that required the support of every member of the Senate. “It would seem certain that they have the votes to go all the way with this one,” the lobbyist said.


Given the strong vote on the motion to proceed, opponents of the legislation said they hope the House will significantly modify the legislation so that it imposes caps on annual increases.


Sen. Bill Nelson, D-Fla., alluded to that problem for the legislation in a statement supporting clearing the bill for Senate action. “The problem is going to be down at the other end of that hallway,” Nelson said on the Senate floor, referencing the House, according to a transcript. “Because the speaker of the House has already said that he doesn't like it, but what he's going to find out that he doesn't like is a lot of the members of the House of Representatives whose constituents are facing tenfold increases in their flood insurance.”


The bill is S. 1926, the Homeowner Flood Insurance Affordability Act of 2014 and National Association of Registered Agents and Brokers Reform Act of 2014. It would prevent flood insurance rate increases until the Federal Emergency Management Agency's mapping methods are certified as technically sound and an affordability study is completed. The bill would keep in place phase-out of subsidized flood insurance premiums for vacation homes and homes that have a history of repeated flooding

Courts: Send A Text To A Person Driving A Car & They Get In An Accident Reading It, You Could Be Held Responsible!

Perusing various sources of information reveals some interesting developments that can raise

texting and driving

questions about insurance coverage. For example, the New Jersey Appeals Court decided that sending a text to someone you know is driving—and who will read it at the same time— can lead to legal responsibility for the sender if the driver has an accident.

The judge in that case said, “when a texter knows or has special reason to know that the intended recipient is driving and is likely to read the text message while driving, the texter has a duty to users of the public roads to refrain from sending the driver a text at that time.”

The court also noted that if the sender of the text does this, then the sender "has taken a foreseeable risk in sending the text, has knowingly engaged in distracting conduct, and it is not unfair to hold the sender responsible for the distraction."

If this judicial reasoning becomes the norm and the sender of the text is held legally responsible—at least partially—for an auto accident, then is insurance coverage available under the auto policy?

Texting and Auto Liability

Let's say that a man named Mr. Smith decides to text a friend or business associate when Smith knows the person is driving and will read the text immediately. How will Smith's personal auto policy or business auto policy respond if the friend or associate has an accident because he was distracted as a result of reading the text?

Both the personal auto policy and the business auto policy declare that the insurer will pay damages for bodily injury or property damage for which the insured becomes legally responsible because of an auto accident. Currently, there are no exclusions in either policy that would prevent coverage for the insured under these circumstances; and at the very least, defense costs for the insured would have to be paid if the insured is brought into a lawsuit. Of course, some states have passed laws prohibiting drivers from text messaging and this could possibly be used by an insurer to deny coverage, but that is just one of the many legal issues that lawyers and courts will have to tackle when the claims reach the legal system.

Ronald Dwyer is an independent insurance agent licensed in Michigan for Home - Auto – Business Insurance and is a licensed Real Estate Agent/Realtor. He can be reached at rondwyer@roninsureme.com or 248-390-6345. His website addresses are www.roninsureme.com and www.dwyerproperties.com Linkedin address is www.linkedin.com/in/ronalddwyer and Facebook address is www.facebook.com/dwyerinsurance

Family Day Care Liability Insurance - Are you Covered?

 Why Do I Need Liability Insurance?

While most providers never need to file a claim, daycare liability insurance is a wise investment. As careful as you are with the children in your care, accidents can happen. If a child in your care is injured or there is an allegation of abuse or sexual misconduct, you can be sued. Even if you win the case, litigation could cost you a great deal of money for legal fees. Childcare liability insurance gives you peace of mind.

Doesn't My Homeowner Policy Cover My Day Care Business?

Most homeowner policies exclude coverage of family day care. In fact, some insurance companies will not insure a home at all where a child day care business is run. You can check with your insurance carrier to find out if you are covered. Be aware that if your insurance carrier will not cover a day care home, you may end up having to seek coverage elsewhere. However, it is better to have proper coverage than to avoid the issue.

If you are not covered by your homeowner policy, you can seek separate family day care liability insurance coverage. This would be an insurance policy that is separate from your homeowner policy. There are several companies that offer coverage. Some companies offer coverage to providers across the nation, while others are more localized.

Shopping for Liability Insurance
The rates for liability insurance vary greatly from one area to the next. When shopping for family day care liability insurance, look at the amount of coverage you are purchasing, as well as what is covered by the policy. The basics should be covered: bodily injury, property damage, accidents, medical payments, and personal injury.

Additionally, you should look for coverage that includes a provision for sexual abuse. False accusations or misinterpretation can result in the need for such protection. Such issues as libel, slander and alienation of the affection of a child toward his/her parents should also be covered.

Look for a policy that covers claims on an occurrence basis. This means that claims that occur during the policy period will be covered, regardless of whether they are reported after the policy expires.

What is Not Covered by Liability Insurance?

You must look at your individual policy for the "Exclusions" section to find out exactly what is being excluded from coverage. Most companies will not cover claims resulting from: transporting children in a motor vehicle, swimming pools, certain breeds of dogs, admitted sexual misconduct, willfully hurting a child or failing to follow state licensing regulations.

Ronald Dwyer is an independent insurance agent licensed in Michigan for Home - Auto – Business Insurance. He can be reached at rondwyer@roninsureme.com or 248-390-6345. His website address is www.roninsureme.com , Linkedin address is www.linkedin.com/in/ronalddwyer and Facebook address is www.facebook.com/dwyerinsurance

How to Prevent and Deal With Frozen Pipes

Bitterly cold temperatures have hit the area hard.

One big headache that can accompany the dangerously low temperatures is frozen water pipes in unheated basements and crawl spaces of local homes. 

Why Frozen Pipes Are a Problem

Water expands as it freezes.

This expansion puts extreme pressure on whatever is containing it, including metal or plastic pipes. Pipes that freeze most frequently are those that are exposed to severe cold, like outdoor water faucets, swimming pool supply lines, water sprinkler lines, and water supply pipes in unheated interior areas like basements and crawl spaces, attics, garages, or kitchen cabinets.

Also, pipes that run against exterior walls that have little or no insulation are also subject to freezing.

A 1/8-inch crack in a pipe can leak up to 250 gallons of water a day, causing flooding, serious structural damage, and the immediate potential for mold.

In the US, frozen pipes cause significant damage every year, but they often  can be prevented. Taking a few simple steps, even now, may save you the aggravation and expense.

Prevention

There are three common causes of frozen pipes:

•  Quick drops in temperature
•  Poor insulation, and
• Thermostats set too low.
• There are a number of preventative steps you can take to keep your pipes from freezing:
• Check the insulation of pipes in your home's crawl spaces and attic. Exposed pipes are most susceptible to freezing.
• Heat tape or thermostatically controlled heat cables can be used to wrap pipes.  Be sure to use products approved by an independent testing organization, such as Underwriters Laboratories Inc., and only for the use intended (exterior or interior). Closely follow all manufacturers' installation and operation instructions.
• Seal leaks that allow cold air inside near where pipes are located. Look for air leaks around electrical wiring, dryer vents, and pipes, and use caulk or insulation to keep the cold out. With severe cold, even a tiny opening can let in enough cold air to cause a pipe to freeze.

Use an indoor valve to shut off and drain water from pipes leading to outside faucets. This reduces the chance of freezing in the short span of pipe just inside the house.

A trickle of hot and cold water might be all it takes to keep your pipes from freezing. Let warm water drip overnight, preferably from a faucet on an outside wall.

Keep your thermostat set at the same temperature during both day and night. You might be in the habit of turning down the heat when you’re asleep, but further drops in the temperature – more common overnight – could catch you off guard and freeze your pipes.

Open cabinet doors to allow heat to get to un-insulated pipes under sinks and appliances near exterior walls.

If Your Pipes Do Freeze...

Don’t panic. Just because they’re frozen doesn’t mean they’ve already burst. Here’s what you can do:

• If you turn on your faucets and nothing comes out, leave the faucets turned on and call a plumber.
• If your house or basement is flooding, turn off the water valve and immediately call 911.
• Do not touch or use electrical appliances in areas of standing water due to electrocution concerns.
• Never try to thaw a pipe with a torch or other open flame because it could cause a fire hazard. Every year, many building fires are caused by people trying to thaw frozen pipes. All open flames in homes present a serious fire danger, as well as a severe risk of exposure to lethal carbon monoxide.
• You may be able to thaw a frozen pipe with the warm air from a hair dryer. Start by warming the pipe as close to the faucet as possible, working toward the coldest section of pipe.
• Again, if your water pipes have already burst, turn off the water at the main shutoff valve in the house; leave the water faucets turned on and call 911. Make sure everyone in your family knows where the water shutoff valve is and how to open and close it. Likely places for the water turn-off valve include internal pipes running against exterior walls or where water service enters a home through the foundation.
• If you will be going away during cold weather, leave the heat set to a temperature no lower than 55ºF Bitterly cold temperatures have hit the area hard.

One big headache that can accompany the dangerously low temperatures is frozen water pipes in unheated basements and crawl spaces of local homes.

This expansion puts extreme pressure on whatever is containing it, including metal or plastic pipes. Pipes that freeze most frequently are those that are exposed to severe cold, like outdoor water faucets, swimming pool supply lines, water sprinkler lines, and water supply pipes in unheated interior areas like basements and crawl spaces, attics, garages, or kitchen cabinets.

Also, pipes that run against exterior walls that have little or no insulation are also subject to freezing.

A 1/8-inch crack in a pipe can leak up to 250 gallons of water a day, causing flooding, serious structural damage, and the immediate potential for mold.

In the US, frozen pipes cause significant damage every year, but they often  can be prevented. Taking a few simple steps, even now, may save you the aggravation and expense.

Prevention

There are three common causes of frozen pipes:

1.  Quick drops in temperature
2.  Poor insulation, and
3. Thermostats set too low.

There are a number of preventative steps you can take to keep your pipes from freezing:

• Check the insulation of pipes in your home's crawl spaces and attic. Exposed pipes are most susceptible to freezing.
• Heat tape or thermostatically controlled heat cables can be used to wrap pipes.  Be sure to use products approved by an independent testing organization, such as Underwriters Laboratories Inc., and only for the use intended (exterior or interior). Closely follow all manufacturers' installation and operation instructions.
• Seal leaks that allow cold air inside near where pipes are located. Look for air leaks around electrical wiring, dryer vents, and pipes, and use caulk or insulation to keep the cold out. With severe cold, even a tiny opening can let in enough cold air to cause a pipe to freeze.
• Use an indoor valve to shut off and drain water from pipes leading to outside faucets. This reduces the chance of freezing in the short span of pipe just inside the house.
• A trickle of hot and cold water might be all it takes to keep your pipes from freezing. Let warm water drip overnight, preferably from a faucet on an outside wall.
• Keep your thermostat set at the same temperature during both day and night. You might be in the habit of turning down the heat when you’re asleep, but further drops in the temperature – more common overnight – could catch you off guard and freeze your pipes.
• Open cabinet doors to allow heat to get to un-insulated pipes under sinks and appliances near exterior walls.

If Your Pipes Do Freeze...

Don’t panic. Just because they’re frozen doesn’t mean they’ve already burst. Here’s what you can do:

• If you turn on your faucets and nothing comes out, leave the faucets turned on and call a plumber.
• If your house or basement is flooding, turn off the water valve and immediately call 911.
• Do not touch or use electrical appliances in areas of standing water due to electrocution concerns.
• Never try to thaw a pipe with a torch or other open flame because it could cause a fire hazard. Every year, many building fires are caused by people trying to thaw frozen pipes. All open flames in homes present a serious fire danger, as well as a severe risk of exposure to lethal carbon monoxide.
• You may be able to thaw a frozen pipe with the warm air from a hair dryer. Start by warming the pipe as close to the faucet as possible, working toward the coldest section of pipe.
• Again, if your water pipes have already burst, turn off the water at the main shutoff valve in the house; leave the water faucets turned on and call 911. Make sure everyone in your family knows where the water shutoff valve is and how to open and close it. Likely places for the water turn-off valve include internal pipes running against exterior walls or where water service enters a home through the foundation.
• If you will be going away during cold weather, leave the heat set to a temperature no lower than 55ºF