On Sunday, November 8th, a 3.6 magnitude earthquake struck at 9:10 a.m. in an area of Buzzards Bay about nine miles south of New Bedford. The United States Geologic Service (USGS) website received over 14,000 visits reporting the quake. Fortunately, the quake caused no injuries. However, the Red Cross reported that they were aiding twenty people who were forced from their homes because their residence suffered some quake-caused structural damage.
No coverage for earthquakes under a homeowner policy
The standard, HO3 home policy provides broad, open-perils coverage for losses EXCEPT for excluded perils, such as:
Earth movement, Floods, Mold damage, Wear and tear, Damage due to insects, vice or vermin, Eminent domain, Power failure, Intentional destruction of property, Acts of war, Faulty workmanship
According to a March 2006 report: “Earthquakes a National Threat,” the USGS identified twenty-six urban areas in the United States at risk to significant seismic activity. The fourth urban area on the USGS’s listing was Boston.
Earthquakes in the northeastern United States and Southern Canada from The Northeast States Emergency Consortium
The map above shows the seismic activity of the New England region from 1975 until 2017. The seismic activity in the New England area is constant. Some geologists predict that the Massachusetts area could have a 6.0 to 7.5 magnitude earthquake. In fact, since the settling of New England, there have been two.
In Central New Hampshire, a magnitude 6.5 earthquake occurred in 1638. The shaking from this quake was felt up into Canada and down into Boston. Around Boston, the quake’s aftershocks were felt for twenty days following the first earthquake.
Near Cape Ann in Gloucester, a Magnitude 6.0 earthquake occurred in 1755. Thirty-four miles south of Cape Ann, in Boston, about one-hundred chimneys were toppled, and as many as fifteen hundred other chimneys were damaged. Several brick buildings had walls collapse, and ground cracks opened.
Get a quote for Earthquake Coverage
Some companies offer earthquake coverage through endorsement. Other companies require separate policies.
Give us a call and get a quote for Earthquake Coverage.
Part 4, Property Damage, is a compulsory coverage on the MA auto policy, with minimum limits of $5,000.
Most of our clients carry Part 4 limits of $100,000 per accident. More and more are electing to buy, $250,000.
This coverage provides Property Damage coverage for any property you might damage while driving. This could include another vehicle(s), fence, house, telephone pole, or whatever else you might hit.
Driving next to a BMW car transport truck on Route 128 the other day, I was reminded that $100,000 may not be adequate coverage.
The annual cost to increase Part 4, Property Damage, coverage from $100,000 to $250,000 is about $7.
Conversely, the annual savings, going from $100,000 down to $50,000 of coverage is about -$5.
Part 4. Damage to Someone Else’s Property
Under this Part, we (the insurance company) will pay damages to someone else whose auto or other property is damaged in an accident. The damages we will pay are the amounts that person is legally entitled to collect for property damage through a court judgment or settlement. We will pay only if you (named insured) or a household member is legally responsible for the accident. We will also pay if someone else using your auto with your consent is legally responsible for the accident. Damages include any applicable sales tax and the costs resulting from the loss of use of the damage property.
We (the insurance company) will not pay for property damage which occurs:
1. While your auto is being used as a public or livery conveyance. This does not apply to the use of your auto in a share-the-expense car pool arrangement or in an expense reimbursement program wither as a volunteer or at work.
2. While any auto is being used by anyone in the course of his or her employment in the business of selling, servicing, repairing or parking autos. This exclusion does not apply to the ownership, maintenance or use of your auto by you or a household member.
3. While anyone is using a vehicle in the course of any business other than the business of selling, servicing, repairing or perking autos. This exclusion does not apply to private passenger autos or to pic-up trucks, vans or similar vehicles not used for the delivery or transportation of goods or materials unless such use is incidental to your business of installing, maintaining, or repairing furnishings or equipment.
4. While a household member, other than your spouse, is using an auto which you or any household member owns or uses regularly unless a premium for this Part is shown for that auto on the Coverage Selections Page.
5. While you or your spouse, if a household member, is using an auto which you or your spouse, if a household member, owns or uses regularly unless a premium for this Part is shown for that auto on the Coverage Selections Page.
6. To an auto or other property owned by you or the legally responsible person. Similarly, we will not pay for damage to an auto or other property, except for a private residence or garage, which you or the legally responsible person rents or has in his or her care.
7. When the property damage is caused by anyone using an auto without the consent of the owner.
The most we will pay for damage resulting from any one accident is shown on the Coverage Selections Page. This is the most we will pay as the result of a single accident no matter how many autos or premiums are shown on the Coverage Selections Page.
If someone covered under this Part is using an auto he or she does not own at the time of the accident, the owner’s auto insurance must pay its limit before we pay. Then, we will pay for any damages not paid by that insurance, up to the policy limit shown on the Coverage Selections page. However, if the claim is covered by us and another auto policy, we will pay only our proportionate share of those damages not paid by the owner’s auto insurance.
Under this Part, we may have ot pay for property damage even if youor the legally responsible person fails to give us prompt notice of the accident. In that case we may be entitled to reimbursement from that person.
This Part is Compulsory. You must have limits of at least $5,000. However, you may want to buy more protection. Higher limits may be purchased if agreed upon by you and by us. However, $5,000 is the most we will pay for property damage caused by an auto covered under this Part which is being operated in any prearranged or organized racing, speed, stunting or demolition contest or activity or in practice or preparation for any such contest or activity.
2020 has been a difficult year for everyone. Governor Charlie Baker recently announced that, in spite of the pandemic, he would not be cancelling Massachusetts Halloween 2020 this year.
In a Salem, MA press conference he shared a letter he received from one of his young constituents:
“It was written with a crayon, but it was quite clear. It said, ‘Governor Baker, I want to thank you for not canceling Halloween. And I think the best thing you can do to make sure that people really limit their exposure to each other when they’re out is to tell everybody that they should give out one large candy bar, instead of those baskets of many small candy bars, because then kids won’t put their hands in and fish around for them.’”
Enjoy Halloween outside rather than attending indoor events.
Place candy on a platter instead of a bowl
Instead of traditional trick or treating, opt for one-way trick-or-treating, with treats placed outside of the home for trick-or-treaters as a “grab and go” while keeping distance from others.
Consider leaving hand sanitizer by any treats left out for trick-or-treaters to use.
Wear a face mask or face covering. For more information on face masks and face coverings, please see the state’s Mask Up MA webpage.
A costume mask is not a substitute for a face mask or face covering. To protect yourself and others, ensure you are wearing a protective face mask or covering instead of or in addition to a costume mask.
Observe good hand hygiene, including hand washing and use of alcohol-based sanitizers with at least 60% alcohol. Carry hand sanitizer and use it often, especially after coming into contact with frequently touched surfaces and before eating candy.
Refrain from touching your face.
Decorate your yard for others to enjoy from their car or while on a socially-distanced walk.
Hold virtual costume contests or pumpkin carving events.
Celebrate with members of your household with a Halloween-themed meal, Halloween movie night, or by preparing a Halloween scavenger hunt.
Maintain social distancing of at least 6 feet of physical distance from all other participants who are not members of the same household.
Avoid:
Attending crowded costume parties held indoors, or any gatherings that exceed indoor or outdoor gathering limits;
Going to an indoor haunted house where people may be crowded together and screaming; and
Going on hayrides or tractor rides with people who are not in your household.
Indoor haunted houses and;
Stay home and refrain from Halloween activities, including handing out Halloween treats, if:
you feel unwell;
you have tested positive for COVID-19;
you have been exposed to someone with COVID-19; or
you have traveled to or from a state that is not classified as lower risk within the last 14 days. For more information on lower risk states, please see the state’s COVID-19 Travel Order webpage.
Did you know that the highest rate of deer collisions occurs between October and December? This is the migration and mating season for deer, so they are likely to be moving at a more frequent pace.
According to the National Highway Traffic Safety Administration, there are one million car accidents involving deer each year in the United States, resulting in close to 200 deaths and an additional 10,000 injuries. The financial costs are also high, as deer collision damages to vehicles total upward of $1 billion in costs a year. On average, a vehicle collision with a deer will cost an insured more than $3,000 in damages. The Insurance Information Institute (I.I.I.) attributes the increase in deer-vehicle collisions to the fact that more roads are being built through wildlife habitats, which causes deer to be displaced from their natural habitat.
How to avoid becoming a statistic
Stay alert and look for signs: The easiest way to avoid crashes is to stay awake and aware of your surroundings while driving – a best practice in any season. Drivers should also look for signs regarding deer crossing, as studies have found that crash risk can be reduced by up to 34% when signs are posted.
Recognize deer patterns: You’re most likely to see a deer at dawn or at dusk, and if you do see a deer, always slow down. Deer typically travel in groups so if you see a deer crossing alone, you should wait a few minutes – more deer are likely to follow.
Don’t swerve to avoid a deer collision: If a crash with a deer becomes inevitable, it is better to apply the brake hard and fast rather than try to swerve in another direction; this could cause a more serious accident with another vehicle, guardrail or tree. Brake firmly, holding onto the steering wheel, and bring your vehicle to a controlled stop.
If you are involved in a crash, make sure to notify police officials and your insurance agency immediately. It is important to fill out the accident forms completely and accurately.
When you’re preparing your home for an approaching hurricane, you might go over your evacuation plan, put together an emergency kit, tightly seal the doors and windows and haul the deck furniture indoors. But what about getting your financial house in order?
As you’re scrambling to protect your home, yourself and your family, you might overlook the financial impact of a hurricane. The U.S. Congressional Budget Office estimates American households get walloped by $34 billion in annual losses from most types of damage caused by hurricane winds, storm surges and rainfall.
In most cases, none of the financial precautions you take “will really be necessary and the inconvenience will be limited to a few days. But it is always better to plan for the worst and hope for the best,” said Josh Simpson, a financial adviser at Lake Advisory Group in Lady Lake, Florida.
In light of the monetary catastrophes that a hurricane might cause, experts recommend taking these seven pre-storm steps to batten down your financial hatches.
How to prepare financially for a hurricane
1. Establish an emergency fund
Bob Castaneda, director of the master’s degree program in finance at Minneapolis-based Walden University, suggests putting money in a special savings account to take care of basics—like food and lodging—in case you’re not able to return home for a while following a hurricane. This should be done weeks, if not months, in advance of a hurricane.
The emergency fund should contain enough money to pay $60 to $70 a day in expenses for each family member, Castaneda said. At minimum, the fund should cover a week’s worth of expenses for your entire family. For a family of four, that would be roughly $1,700 to $2,000.
“From a financial perspective, an emergency fund serves as the safety net between an unexpected event and a financial crisis,” said Brian Walsh, certified financial planner and leader of the financial planning team at online lender SoFi.
2. Stash some cash
Store a small amount of cash in a secure place in your home, said April Lewis-Parks, director of education and corporate communications at Consolidated Credit, a consumer credit counseling service. This can help you overcome the inability to use your debit or credit cards at ATMs or stores during a power outage.
Financial coach Kasey Ring, president of Upward Personal Finance in Heber City, Utah, said you should stockpile enough cash to pay for at least two to three days of meals, lodging and transportation.
“Have a reasonable amount of cash on hand,” Ring said. “Storing a boatload of cash in your mattress or on your body is not advised. Your money is better protected in a federally insured banking institution.”
3. Set up electronic deposits
If you regularly receive paper checks for government benefits or other purposes, it’s wise to switch to electronic deposits before a hurricane hits to ensure you’ll have money in the bank when you desperately need it.
The U.S. Department of Homeland Security notes that a hurricane can disrupt mail service for days or weeks. In addition, a paper check could be stolen from your mailbox while you’re away from home.
Each month, more than 2.7 million paper checks for Social Security and Supplemental Security Income are sent to people living in hurricane-prone states, according to the U.S. Treasury Department.
4. Designate a credit card just for emergencies
Marine Federal Credit Union in Jacksonville, North Carolina, says the credit limit of your emergency-only credit card should enable you to buy enough supplies to last at least 10 days. Having a credit card solely for a hurricane or another disaster also can help track expenses that your homeowners insurance policy might reimburse.
You may want to choose an emergency credit card that delivers rewards at places like grocery stores, restaurants, gas stations and hotels—places you’re likely to spend money in the wake of a hurricane.
5. Get rid of ‘bad’ debt
If you live in hurricane territory, wiping out “bad” debt can put you in a better position to financially weather a storm. Of course, you’ll need to tackle this debt reduction well ahead of a hurricane that’s bearing down on your town.
SoFi’s Walsh explains that there’s “good” debt and “bad” debt. Good debt, such as a student loan or mortgage, helps boost your earning power or net worth and typically comes with low interest rates.
Meanwhile, bad debt includes balances on higher-interest credit cards and loans. This type of borrowing typically doesn’t help you achieve your long-term financial goals.
“Bad debt not only eats up your budget with costly interest payments, but it also limits your flexibility to leverage debt in the event of a financial emergency,” Walsh said.
If it consumes a big chunk of your available credit, bad debt restricts the amount of credit you can tap into after a hurricane, he said. In addition, bad debt may hinder your ability to take out a lower-interest emergency loan, as that debt might bump up your credit utilization ratio and therefore push down your credit score.
6. Collect important documents
Your critical documents should be kept in a weatherproof “grab and go” kit in case you need to evacuate ahead of a hurricane, according to Walden University’s Castaneda. These documents include insurance policies, Social Security cards, driver’s licenses, birth certificates, passports, mortgage paperwork, tax records, wills and recent financial statements.
Experts recommend making copies of these documents as backups and saving them through a password-protected cloud storage service like Google Drive or Dropbox.
“Depending on how bad the storm is, the hard drive on your computer—let alone your hard copies—may not survive,” warned Jim Pendergast, senior vice president of altLINE, a division of Gadsden, Alabama-based The Southern Bank Co.
7. Review your insurance coverage
Pendergast recommends scrutinizing your homeowners insurance policy to fully understand what will and will not be covered in case a hurricane damages your property. Make sure both the structure and your belongings are adequately covered. Check with your insurance company or insurance agent—before a hurricane hits—if you think your coverage isn’t sufficient.
Also important to note is that standard homeowners policies usually don’t cover flood damage; separate flood insurance is normally required. During a hurricane, flooding causes much of the property damage.
In advance of a hurricane, take photos of your household belongings to support any insurance claims you’ll file, Pendergast said. In addition, the Insurance Information Institute advises creating a complete inventory of all your possessions and their values to help speed up the claim process.
John has nearly 30 years of experience in journalism, brand journalism, blogging and public relations. He is editor in chief at Austin, Texas-based startup SpareFoot, which helps people find and book self-storage units. John also writes for The Huffington Post, PR Daily, Muck Rack, CultureMap Austin, Allvoices, Texas Enterprise and Texas School Business magazine. From 1999 to 2006, John was editor and managing editor of the Austin Business Journal. John’s interests include sports, movies, music, travel and dining out. A native of Kansas, John earned a bachelor’s degree in journalism from the University of Kansas.
If you are at-fault in a bad accident and there’s an injury, you’re going to wish you had personal liability umbrella coverage.
A Personal Liability Umbrella Policy “sits-over” your home and auto liability limits. Coverage limits start at $1,000,000 and provides you protection from lawsuits.
Coverage is relatively inexpensive to purchase. $1,000,000 of coverage sitting over two autos and a home would cost about $200 annually.
Umbrella Policies require underlying motor vehicle liability limits of $250,000 per person/ $500,000 per accident.
In addition to coverage limits, insurance companies provide legal defense.
So, in essence, when you purchase higher limits you are also purchasing improved legal defense.
Umbrella Insurance protects your assets. If you don’t have an umbrella policy, you should. It’s an important part of one’s financial portfolio.
In an ideal insurance world, you want your liability coverage to, at least, match the amount of your assets.
“Most plans that fall under ERISA act (Employee Retirement Income Security Act) cannot be touched by a creditor if you’re sued. Most 401k plans fall under ERISA. IRA’s, on the other hand, are typically not ERISA plans, and can be lost if sued.”
So, most 401K plans cannot be touched. IRA’s can be.
Please call or click if you would like to discuss Personal Liability Umbrella Coverage.
Much of Massachusetts moved to Phase 3 effective Monday, July 6, 2020. Boston requested more time and will move to Phase 3 effective Monday, July 13th.
Bars, casinos, gyms, museums and others in the entertainment and arts industries can reopen. All other business activities can resume except for nightclubs and large venues.
More recreation is allowed to restart, including youth sorts with games and tournaments, though crowd sizes will be limited.
Massachusetts has warned that not only is Phase 3 considered the riskiest of phases — it is the one we will likely be in for the longest time.
Phase 4
Effective upon the development of vaccines and treatment
Full resumption of activity in the “new normal,” including travel, all outdoor recreation and activities as well as events in large venues and nightclubs.
People will still be urged to wear face coverings, maintain physical distance and proper hygiene.
Dwelling forms are used primarily for rental property insurance. That is, property’s that are occupied, but not owner occupied. Typically properties that are one to four family dwellings.
Rental property insurance covers you from potential exposure to financial loss from unpredictable events such as: Fire, windstorm damages, vandalism of personal property, and lawsuits from an injured person. Dwelling owners can protect themselves against all of these losses by purchasing Dwelling Fire and Liability insurance.
Dwelling:
Coverage is provided for the residential dwelling, any structures attached to it, and materials and supplies on or adjacent to the location that are used for construction, alteration or repair of any structures at the described location. Coverage does not apply to land, including the land on which the dwelling is located.
Other Structures:
Coverage is provided for other structures on the described location, set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection. This coverage does not apply to land, including land on which the other structures are located.
Personal Property:
A limited range of perils protects personal property usual to the occupancy as a dwelling. This coverage is not automatically provided in the Dwelling policy and must be specifically requested.
Fair Rental Value/Additional Living Expense:
Fair rental value and Additional living expense provide compensation if a covered loss renders the residence premises unusable.
Fair Rental Value means the fair rental of that part of the dwelling rented to others less any expenses that do not continue while that part of the dwelling rented or held for rental is not fit to live in.
Additional Living Expense means any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living.
Personal Liability:
This is important coverage if you or your family members are found negligent in causing bodily injury or property damage to another party that arises out of the ownership, maintenance or use of the insured premises. In that event, you have the peace of mind knowing we will pay the legal damages imposed on you and include legal defense cost if necessary.
Medical Payments:
If a visitor is injured in or around your home, we will pay for the medical expenses incurred by that person.
The 4th is, traditionally, one of our favorite holidays. Family, friends, fireworks, cookouts and pool parties.
This year, of course, everything seems different.
This crazy pandemic, to some degree, has changed everything, maybe forever.
Social distancing and face masks have become the new normal.
But, perhaps, because of COVID-19, or maybe in spite of COVID-19, this 4th of July, 2020 might mean more than other 4th of Julys.
In some ways our communities have grown together in spite of the isolation. We’ve all suffered through the same virus fears, economic hardships and loss of loved ones.
Let this 4th be a reminder of how lucky we are to live in such a great country. Maybe not perfect, we have the ability, through our great democratic process, to perfect.
Maybe the “new normal” includes a greater kindness and empathy for others.
Happy 4th of July from your friends at Johnson & Rohan Insurance.
Here, as an essential business, our office has remained open throughout the pandemic. Some of us working remotely and some of us here, at our desks, masks at the ready.
When John Lennon sang “Strange days indeed,” on Nobody Told Me, he couldn’t have imagined how strange these days actually are.
Massachusetts is working on the state’s reopening plan.
Entering Phase 2 of the Massachusetts Reopening Plan: Four Phases, let’s recap:
Phase 2
Effective Monday, June 22
Retail businesses, restaurants, hotels and other personal services such as nail salons and day spas can reopen with restrictions.
Hospitals and community health centers are allowed to provide less-urgent preventative care, including teeth cleanings and certain elective procedures.
More recreation is allowed to restart, including campgrounds, playgrounds, public pools, athletic fields and courts and youth sports in a limited fashion.
Baker’s “safer-at-home” advisory is lifted, but business and recreational travel is discouraged. The limit on gatherings of 10 people could be lifted depending on the trends.
Phase 3
Effective at least three weeks after Phase 2
Bars, casinos, gyms, museums and others in the entertainment and arts industries can reopen. All other business activities can resume except for nightclubs and large venues.
More recreation is allowed to restart, including youth sorts with games and tournaments, though crowd sizes will be limited.
Phase 4
Effective upon the development of vaccines and treatment
Full resumption of activity in the “new normal,” including travel, all outdoor recreation and activities as well as events in large venues and nightclubs.
People are still urged to wear face coverings, maintain physical distance and proper hygiene.
