Renting From Your Peers
Courtesy of iii.org
Before you consider renting out your home, your guest room—or even your couch—first contact your insurance professional so you fully understand the financial risks and can take the proper precautions. Here's some general information to jumpstart your insurance conversation.
If you are considering renting out your home, your guest room or even your couch your first step should be to contact your insurance professional. Peer-to-peer home sharing opportunities such as Airbnb can be a great way to bring in extra money and are increasingly popular; however, they can also leave you financially vulnerable. If your renter starts a fire and damages your property or is hurt while renting your home, will you be protected?
Peer-to-peer home rental
Peer-to-peer home sharing opportunities such as Airbnb are increasingly popular and can be a great way to bring in extra money. However, they can also leave you financially vulnerable. If your renter starts a fire and damages your property or is hurt while renting your home, will you be protected?
Standard homeowners and renters insurance policies are designed for personal risks, not commercial risks. Some insurers now offer a home-sharing liability insurance policy that can be purchased on a month-to-month basis, but there may be exclusions and limitations, so read the policy carefully. If you plan to rent out all or part of your home on a regular basis, many companies will consider this a business use and you may need to purchase a business policy—specifically either a hotel or a bed-and-breakfast policy.
If you are doing the renting
If you are the one using a peer-to-peer network to rent a space from someone else, check your own homeowners or renters insurance policy. In most cases, if your personal possessions are stolen or damaged off-premises, you can simply file a claim with your own insurer. And if you accidentally injure someone, you should also be financially protected.
Occasional home rental
There may be times when a major event in an area—the Super Bowl, say, or a graduation at a major university—depletes local hotel space. In these cases, it's fairly common for people to rent out their home or part of it for the extra cash it brings in.
Many insurance companies take this situation into account when creating a homeowners or renters policy and, with sufficient advance notice, will extend your coverage to the renter on a one-time basis. Other insurance companies may require the purchase of an endorsement to the policy to provide broader coverage for the renters in your home.
In both cases, be sure to let your insurance company know ahead of time, so you can be prepared.
Pets And Insurance
Courtesy of iii.org
The pet insurance industry got its start almost a century ago in Sweden where about half that country’s pets are now insured. In North America, Veterinary Pet Insurance Co., a subsidiary of Nationwide, sold its first pet insurance policy in 1982 to cover the dog playing Lassie on television.
The North American Pet Health Insurance Association (NAPHIA) reports North America’s pet health insurance sector posted record growth in 2017, with combined gross written premiums hitting $1.2 billion. This represents a 23 percent increase in gross written premiums over 2016. The total number of pets insured in the U.S. and Canada reached 2.1 million at year-end 2017 up by 17 percent from 2016. According to NAPHIA, there are 12 major pet insurance companies in North America.
Pet ownership in the United States
Sixty-eight percent of U.S. households, or about 85 million families, own a pet, according to the 2017-2018 National Pet Owners Survey conducted by the American Pet Products Association (APPA). This is up from 56 percent of U.S. households in 1988, the first year the survey was conducted.
NUMBER OF U.S. HOUSEHOLDS THAT OWN A PET, BY TYPE OF ANIMAL
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Source: American Pet Products Association's 2017-2018 National Pet Owners Survey.
TOTAL NUMBER OF PETS OWNED IN THE UNITED STATES, BY TYPE OF ANIMAL
(millions)
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Source: American Pet Products Association's 2017-2018 National Pet Owners Survey.
TOTAL U.S. PET INDUSTRY EXPENDITURES, 2007-2017 (1)
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(1) Includes food, supplies and over-the-counter medicine, veterinarian care, live animal purchases and grooming and boarding.
(2) Estimate.
Source: American Pet Products Association's 2017-2018 National Pet Owners Survey.
BASIC ANNUAL EXPENSES FOR DOGS AND CATS (1)
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Tornado Facts and Safety
Courtesy of iii.org
When atmospheric conditions are right, tornadoes can strike with little warning and cause grave amounts of damage in a very short time. These tips can help minimize your risk and keep you and your family safe.
What is a tornado?
A tornado—also known as a twister—is a violently rotating column of air that extends from a thunderstorm and comes into contact with the ground. Tornado intensity is measured by the Enhanced Fujita (EF) scale, which rates tornadoes from 0 through 5, based on the amount and type of wind damage.
How common are tornadoes?
An average of about 1,000 tornadoes are reported nationwide each year. Twisters are more common in the central United States, though they can occur almost anywhere in North America, including in large cities.
Tornadoes can happen at any time of year or at any time of the day or night, though they happen most frequently between early spring and July, and between the hours of 4pm and 9pm.
What are the warning signs of a tornado?
Signs that a twister is coming include:
- Dark greenish skies
- Large hail
- Dark, rotating, low-altitude cloud
- Loud roar, like a train
Despite the fact that meteorologists are now better able to predict them, tornadoes can strike with little warning. Therefore, it's best to be prepared well before a tornado approaches. For tips, handy checklists (including ones you can personalize yourself) and planning advice to cover a variety of situations, get the I.I.I.’s Know Your Plan app. It's a great tool to help get you and your family—including pets—organized and ready to act more quickly if disaster strikes.
In communities with a history of tornado activity, there may be a tornado warning siren and/or a digital messaging system to alert residents that there is a twister coming and that they should seek proper shelter immediately.
What's the difference between a tornado watch and a tornado warning?
Both tornado watches and tornado warnings are issued by the National Oceanic and Atmospheric Administration (NOAA)/ National Weather Service. However, there are critical differences between the two alerts.
- A tornado watch means that conditions are favorable for tornadoes to develop. Be alert to changes in the weather, account for all family members, and listen to local radio and TV stations for updated storm information. Move cars inside and keep car and house keys with you. If time permits, move lawn furniture and equipment inside to minimize flying debris. If a tornado siren sounds, stay inside and take cover.
- A tornado warning means a tornado has actually been spotted or is indicated on weather radar in your area. This means danger is imminent and you may only have seconds to take cover.
What to do when a tornado has been sighted
When a tornado warning sounds or a tornado has been sighted, do not try to outrun it. Stay calm but quickly seek shelter in the safest place possible.
- If you are at home, the safest place to be is underground. Basements are usually the most protected area, but if this is not an option take cover in central part of the house away from windows—for example in a bathroom, closet, interior hallway or under a heavy piece of furniture.
- If you are in an office building or skyscraper, go directly to an enclosed, windowless area in the center of the building—away from glass and on the lowest floor possible—and crouch down and cover your head. Interior stairwells are usually good places to take shelter and, if they are not crowded, allow you to get to a lower level quickly. Stay off elevators, you could get trapped if the power is lost. If you are in a tall building you may not have enough time to evacuate to the lowest floor.
- If you are at school follow the staff instructions and go to an interior hall or room in an orderly way as directed. Crouch low, head down, and protect the back of your head with your arms. Stay away from windows and large open rooms like gyms and auditoriums.
- If you are in a car or truck, abandon the vehicle and seek shelter in sturdy structure. If you are in open country, seek shelter in the nearest ditch. Lie flat, facedown on low ground, protecting the back of your head with your arms. Get as far away from trees and cars as you can.
- If you are in a mobile home, get out! Even if the home is tied down, you are probably safer outside.
Safety precautions to take after a tornado
Tornadoes can cause dangerous damages, so take caution with potential hazards after the storm.
- Stay in your shelter until after the storm is over or until emergency personnel have arrived.
- Check the people around you for injuries. If necessary, begin first aid or seek help.
- Check your utility lines and appliances for damage. If you smell gas, open the windows and turn off the main valve. Don't turn on lights or appliances until the gas has dissipated. If electric wires are shorting out, turn off the power.
- Outside, watch out for downed power lines and stay away from any puddle with wires in them. These could be carrying deadly live current.
- Be aware there may be leaking gas pipes or fuel tanks nearby. The oil from these can be present in water or on the ground, so avoid using matches or lighters.
Recovering from a tornado
Damage caused by tornadoes is covered under standard homeowners and business insurance policies, and under the optional comprehensive portion of an auto insurance policy.
If you sustain tornado damage:
- Contact your insurer as soon as possible and start the claims filing process. After tornadoes and other disasters, insurance companies will reach out to those with the worst losses first.
- Take photos of any damage. A photographic record is useful when making insurance claims.
- Make temporary repairs to prevent further loss from rain, wind or looting; these costs are reimbursable under most policies, so save the receipts.
- Make a detailed list of all damaged or destroyed personal property. If you have a home inventory, it will be extremely useful here. Don't throw out damaged property until you have met with an adjuster.
- Don't rush to sign repair contracts. Do your homework, deal with reputable contractors and get references. Be sure of payment terms and consult your insurance adjuster before you sign any contracts.
- If your home is uninhabitable because of tornado damage, your homeowners or renters insurance provides coverage for additional living expenses (ALE) such as hotel bills or meals out. Save all related receipts and, if you have vacated your home premises, make sure your insurance representative knows where and how to contact you.