With the recent weather we’ve had, here are some examples of frequently asked questions.

Q. Will Allstate pay for a hotel if the power is going to be out for a few days?

A. Allstate will pay the reasonable increase in living expenses when a direct physical loss we cover makes your residence premises uninhabitable. So if it’s just a power outage and there is no actual damage to the house, we would not pay for a hotel.

Q. Does deductible apply to food spoilage?

A. Yes a deductible would apply.

Q. If insured buys a generator to provide power to his house while there’s a power outage, will we reimburse them for the cost of the generator?

A. No, homeowner’s insurance will not pay for the generator.

Q. Will the homeowner’s policy cover damage to insured’s car caused by a fallen tree limb?

A. No, damage to an automobile should be filed under an automobile policy.

Q. How are trees covered that have fallen due to a windstorm?

A. When a tree falls due to wind – insurance may cover up to $500 to remove the tree debris if the fallen tree damaged property covered under the dwelling or other structures coverage. Insurance pays reasonable costs to remove the tree from the structure it damaged, and then up to $500 for the tree debris removal. If the insured has the Yard & Garden endorsement….insurance may pay up to $1000 for tree debris removal and the tree does not have to damage dwelling or other structures.

Q. If the wind partially uproots a tree and it is now leaning over the house, will insurance pay to have this tree removed before it does damage to the house?

A. No, insurance will not since the tree has not fallen. The company would expect the homeowner to take steps to prevent the tree from causing damage.

Q. Does insurance cover a tree that is hit by lightning?

A. Insurance may pay for the replacement and debris removal up to $500 total. If the insured has the Yard & Garden endorsement…insurance will pay up to $1000 for any one tree damaged by lightning.

Q. If a neighbor’s tree falls on our insured’s house due to a windstorm, whose policy pays to have the tree removed?

A. If the tree was dead and the neighbor realized that but did nothing to take care of it, then the neighbor may ultimately be responsible. If it was a live tree, then our insured’s policy would provide coverage. In either scenario, the insured’s policy would likely provide coverage subject to policy provisions and applicable limits.

Q. Will insurance cover food spoilage due to power interruption?

A. Yes, subject to policy specifics, insurance will pay for loss to contents of freezers and refrigerators on the residence premises caused by a power outage off premises. Deductible does apply.

Q. Do we cover damage to electronics and appliances caused by a power surge?

A. Coverage would be provided based on the individual homeowner’s policy language as long as the cause of loss was due to a power surge.

With more people on the roads during the summer months, it’s even more important to make sure your insurance fully protects your needs. Unfortunately, there are many driver’s on the road who are either uninsured or underinsured for liability coverage by having the state minimum or no insurance at all. This could end up to be extremely costly to you if that person hits you, totalling your car, or even worse, significantly injuring you or your passengers.

Call your insurance agent for a policy review. It could save you thousands of dollars and a lot of pain.

With Americans living longer, the country is facing a situation where nearly half (48 percent) of those ages 45-70 have no financial plans in place to protect themselves against outliving their assets and the rising care of healthcare according to a new survey from the Society of Actuaries (SOA).

Additional findings show more than one-third are worried about running out of money during retirement, but only 20 percent plan to purchase an annuity or other form of guaranteed lifetime income to protect their assets.

“It’s apparent that Americans, specifically the baby boomer generation – many of whom will be eligible for retirement the beginning of the new year – have not saved enough money for retirement,” says Anna Rappaport, FSA, MAAA and president of Anna Rappaport Consulting. “With the challenges in the housing and financial markets over the past few years, coupled with the fact that people are living longer, many baby boomers are finding themselves unprepared to maintain their lifestyle in retirement. As actuaries, we cannot stress enough the importance of having a plan in place that addresses all of the risks individuals may face in retirement, such as spending available assets too soon, meeting financial care needs, paying for the rising cost of healthcare and adjusting financially and otherwise to the loss of a spouse.”

Americans are continuing to rely on Social Security more heavily, with nearly three quarters (71 percent) of respondents saying they plan to claim it before the age of 70. Actuaries like Anna Rappaport emphasize the importance of claiming Social Security as late in life as possible to help secure more guaranteed lifetime income in retirement and help hedge against the risk of outliving assets.

Looking at other actions Americans take to protect themselves and hedge against potential future risks, the SOA survey found that 75 percent of Americans ages 45-70 protect their tangible assets, such as housing, through home or renter’s insurance; however, only 19 percent plan to insure the extra costs of disability and well-being by purchasing long-term care insurance.

“While long-term care insurance may be a complex and somewhat costly product, it can act as a financial safety net should people need extensive care in their old age,” says Dawn Helwig, FSA, MAAA and consulting actuary for Milliman, Inc. “Purchasing a long-term care policy or combination product can help mitigate the potential risk of having to pay out-of-pocket for unexpected health-related costs down the road.”

The SOA’s survey findings were based upon a nationally representative online survey of 1,006 individuals, ages 45-70, and had an error rate of plus or minus 3.10 percentage points.

As a result of the recent winter storms and frigid temperatures, I am reaching out to help you prepare for potential claims regarding ice damming.

The Allstate Claims Process

Should an ice damming claim occur we will be available to assist them at every step. As a reminder, affected policyholders may report their claim as using any of the three options: through my agency, on their own or by phone.

To report a claim:
1. Go to www.allstate.com OR
2. Call 1-800-ALLSTATE
3. Call my agency (however, filing online or on the phone will be effective immediately and is more efficient due to the specific questions they will need to ask to handle your claim properly).

About the Claims Experience
The length of time it takes to complete the claims process depends on several factors. Visit this Web page http://www.allstate.com/claims/claim-handling-process.aspx for other information about the claim process.

Please see below for information around ice damming that may be helpful to you.

What is ice damming?
Ice and snow build-up on a roof is an unprepared homeowner’s nightmare when heat from a roof covered with at least eight inches of snow melts, leaving the remaining liquid to seep into shingles and tiles. Ice dams can be lumps of ice that form on gutters, eaves and valleys, and prevent melting snow from running down. As the snow melts, the water backs up and seeps under shingles or tiles and eventually into your home.

Preventing ice dams can be as simple as mounting proper insulation and avoiding improper removal of ice and snow. Take a look at these other tips to help minimize ice dam formation on your roof and protect your home from winter damage:

Keep gutters and downspout clear of leaves and natural debris;
Identify areas of heat loss in your attic and properly insulate them to prevent heat from escaping;
Minimize heat loss through the attic by wrapping or insulating all heating ductwork;
Avoid using sharp tools or ice picks on gutters or downspouts, which can damage roofs. Use a snow rake or soft broom to clear fresh snowfall from gutters;
Contact a professional snow removal company to clear existing ice dams; and
Protect yourself by avoiding falling icicles or avalanching snow. Avoid getting on the roof and working on a ladder or beneath a roof that has accumulated large amount of snow.

Other helpful tips may be found by clicking on this link to the Insurance Information Institue website.

Legislation Introduced To Phase Out NFIP
Share | February 8, 2011
By Arthur D. Postal, PropertyCasualty360.com

The legislation to phase out the National Flood Insurance Program, H.R. 435, was introduced by Rep. Candice Miller, R-Mich. (File Photo: AP)
NU Online News Service, Feb. 8, 3:10 p.m. EST

WASHINGTON—Legislation has been introduced in Congress that would phase out the National Flood Insurance Program by the end of 2013.

The legislation, H.R. 435, was introduced by Rep. Candice Miller, R-Mich.

The bill would also immediately end all remapping of the program mandated by prior reauthorizations of the program, thereby ending the agency’s authority to charge more to current customers based on new maps mandated by the 2003 law that remains in effect.

Earlier this month, Rep. Miller had asked colleagues to support the measure.

That Congress may take a long look at the program was also acknowledged earlier this week by Rep. Scott Garrett, R-N.J., chairman of the Capital Markets Subcommittee of the House Financial Services Committee, which has prime jurisdiction over the program.

During an appearance at a housing conference Monday, Rep. Garrett said, “The government’s history in pricing risk is extremely poor,” citing the Federal Deposit Insurance Corporation, the National Flood Insurance Program, and the Pension Benefit Guaranty Corp. as three entities with “terrible records of properly pricing for risk.”

The current program expires Sept. 30, the end of the current fiscal year. The program has been extended five times, with several lapses, since the original reauthorization of the current program ended Sept. 30, 2008.

Charles Symington, senior vice president of government affairs for the Independent Insurance Agents and Brokers of America (IIABA), said that extension of the NFIP will be a top priority of the association this year.

“Much like the past two years, we don’t expect getting the program reauthorized will be easy,” Mr. Symington said. “However, the program is absolutely essential to ensure that consumers obtain the coverage for flood loss that they need,” he added.

He acknowledged that “it has been tough the last two years to get extensions, and you can put on top of that the focus on reducing the federal government, on budget-cutting; it just makes the job more difficult.”

But, he said, “We think we can get it done. We think we have a persuasive case to make. But, it won’t be an easy lift.”

He said that while the IIABA would like to see additional reforms to the program, the top priority is getting the program extended. “But, it will take an effort on behalf of agents, Realtors, mortgage bankers, banks, etc.” Mr. Symington added.

About the Author
Arthur D. Postal, PropertyCasualty360.com

Arthur D. Postal is Washington Bureau Chief for National Underwriter, P&C Magazine. He also contributes legislative and regulatory news to PropertyCasualty360.com. He may be reached at apostal@sbmedia.com.

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