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Wisconsin Winter Weather: Ice Dams and your Insurance Premiums

Packerland Team

Wisconsin presents many challenges to its year-round residents and although winter may be a little late in visiting this year, there is little doubt that Mother Nature will show up sooner rather than later. Wisconsin residents truly experience four different seasons during the course of the year – a spectacular event to witness as a resident.  Mother Nature’s miracles also provide numerous hurdles for homeowners.

Have you seen this before!?

Wisconsin’s winter weather comes in several shapes and sizes:  snow, ice, rain, sleet, hail, wind, etc.  However, one of the most common claims that we see due to winter weather are ice dams.  Ice dams can cause major damage to homes and businesses and are often signs of larger problems that exist.

First things first:  what is an ice dam?  An ice dam is a ridge of ice that forms at the edge of a roof and prevents water (melting snow) from draining off the roof.  The water backs up behind the dam and may leak into a home and cause damage to the walls, ceilings, insulation, and other areas.  The damage can be extensive – often times causing mold and mildew due to the moisture and wet walls/insulation.

What are signs of an ice dam?

  • Icicles hanging from roof eaves
  • Water dripping down or ice forming on the exterior surface of home
  • Ice is developing along the overhangs of the roof and/or gutters are filled with ice
  • Icicles forming on the underside of the roof
  • Water penetrating into home

So, what can you do to prevent ice dams?  Some suggestions are:

  • Remove snow from roof using a roof rake or a push broom
  • Make the ceiling air tight, ensuring that no warm, moist air can flow from the house into the attic space
  • Increasing ceiling/roof insulation to cut down on heat loss by conduction
  • Install sufficient soffit vents and adequate ridge vent for better ventilation

As always, if you witness signs of an ice dam – consult a professional immediately.

Ice dams are generally covered under a standard homeowner’s insurance form, so there is most likely coverage for a claim.  With that being said, ice dams are generally preventable claims.  By taking measures to prevent these types of claims, an insured is saving themselves money by not paying a deductible and keeping their claim activity to a minimum!  The less claim activity one has the more competitive rates they can obtain!

Feel free to contact us with any questions or concerns you may have – we’re happy to help!  As always, please read the policy forms for exact coverage.

Uninsured Motorist and Underinsured Motorist Coverage – Do you need it?!

Packerland Team

Liability insurance is mandatory in the state of Wisconsin– along with most other states.  If you fail to drive without liability insurance you may face fines or even jail time.  If you cause an accident, it seems logical to assume that the liable party would be responsible for damages.  Liability coverage under your automobile insurance policy is most often thought of in regards to bodily injury and property damage.  This assumption is logical – however, there is another part of the liability coverage that is rarely discussed but equally important.

According to carinsurance.org, one out of every six drivers is driving without insurance (in WI, the rate is 15%) – quite a startling statistic.  If you were hit by one of these uninsured drivers and they injured you, then you would expect them (or their insurance) to pay for the damages.  What if they don’t carry any liability insurance?    Does that mean you are on the hook for all the damages that someone else caused?  No.  Your uninsured motorist coverage under your automobile insurance provides part of this coverage for you by paying for bodily injury damages sustained by a liable, uninsured motorist.  This also prevents you from having to pay any out of pocket expenses for health care costs (unlike health insurance).

Avoid headaches during a claim by being properly insured!

What happens if the person that is liable for damages has insurance, but not enough to pay for all damages?  Your underinsured motorist coverage under your automobile insurance provides another part of this coverage for you.  This coverage provides coverage for bodily injury when the liable party does not carry high enough liability limits to provide for the damages. Although only one in every six drivers is uninsured, countless more are improperly insured and may not carry high enough limits to pay for damages sustained in an accident – particularly with the rising costs of health care.

An important note regarding uninsured and underinsured motorist coverage:  it does not pay for property damage that is caused by a liable driver (i.e. damage your vehicle); it only pays for bodily injury.  Some carriers offer uninsured motorist property damage insurance, usually at an additional cost.  If you have the option to purchase it – we certainly recommend it!  If you don’t have this coverage and you get hit by an uninsured or underinsured motorist, you’d need to carry collision coverage on your automobile for property damage coverage to apply.

Uninsured and underinsured motorist coverage is an important part of a comprehensive risk management program; therefore, it’s important that you consult with your insurance professional.  Feel free to contact us directly with any questions or concerns you may have.  As always, please read your policy forms for exact coverage.

Roof Loss Settlement – understand your coverage!

Packerland Team 4 Comments

Insurance companies have been consistently increasing homeowner’s rates in the state of Wisconsin over the last year – and will continue to do so for the immediate future.  If you haven’t seen a rate increase in your home policy recently, chances are that you’ll realize one in the coming months.

One of the main reasons that insurers are increasing their homeowner’s insurances rates is due to the weather-related losses that they’ve suffered in recent years. Wisconsin has experienced heavy storm activity including wind, hail, rain, and other harsh elements.  These elements have combined to cause an excruciating amount of claims activity for insurance companies.  Luckily, the large majority of companies have responded positively and recognized the fact that this is the reason they are in business – to restore individuals and families to their condition prior to the loss.

In addition to rate increases, these losses have also affected how insurance companies are settling losses on roofs – particularly wind and hail claims.  A homeowner’s policy has two specific items that you need to be aware of:

  1. A separate wind or hail deductible
  2. An actual cash value loss settlement option on your roof

    How will your homeowners insurance policy cover damage to your roof?

These stipulations and amendments have become very common and are largely determined by:  the age of the roof, the material of the roof, the condition of the roof, the deductible on the policy, and a policy owner’s loss history.   For example, if you have a low deductible on your policy, the insurance company may mandate that you carry a higher deductible for any losses due to wind or hail since they have been both frequent and severe in our area.  Alternatively, if you have an older roof (15-20 years of age or older) or a roof that is in poor condition, the company may have the ability to mandate that the roof be settled on an actual cash value basis until the roof is either repaired or replaced.  Many insured’s choose this coverage because it may lower their premiums, but it is imperative that they understand how it affects them at the time of loss.  If you have a total loss on your roof and have the actual cash value endorsement on your policy, the insurance company will not replace your entire roof with a new one.  They will pay you the actual cash value instead, which is determined by:  taking the cost to replace your roof and deducting depreciation from that cost.  Depreciation is most commonly calculated by establishing a useful life of the roof and determining what percentage of that life remains.   Subsequently, the coverage may be cheaper but coverage is also less!

It is important to understand the difference between replacement cost and actual cash value loss settlements and how they affect the settlement at the time of loss.  Feel free to contact us for further explanation or for other measures you can take to either have a lower wind/hail deductible or get replacement cost loss settlement on your roof!  As always, read your policy forms for exact coverage.

 

Water and Sewer Back up Coverage 101

Chris

As fall approaches northeast Wisconsin, everyone needs to be aware of the risks and dangers that present themselves during our most colorful season.  Since September is a notoriously wet month, one of the most frequent insurance claims that we experience are the back of up sewer or drains.  These events may not happen often; however, almost every homeowner has experienced this mini disaster during their ownership experience.

Frequently, heavy rains may cause either drains to back up or cause a power outage – which may cause the sump pump to stop working.  That’s right – they stop working right when we rely on them the most!

Do you want to have coverage for this situation?! Be sure to check your homeowners insurance polciy for water and sewer back up coverage!

Did you know a standard homeowner’s policy specifically excludes coverage for this event?!  That leaves you responsible for any cleanup costs in addition to any damage caused by the water.  Damage is usually quite costly and many times, water or sewage usually destroys most things it comes in contact with. If you use your basement for storage or have a partially finished basement, it is imperative that you have this coverage.

Coverage limits can be purchased incrementally and usually starts at $2500 – which may not even be enough to cover the cost of removing the water or sewage from your home (but is better than not having any coverage!).  A separate deductible generally applies as well.  The additional cost varies depending on your risk factors; however, it is generally quite reasonable and is well worth the peace of mind!

As always, talk to your agent about your risk factors to determine the amount of coverage that is appropriate for you.  Also, feel free to contact us with any questions you may have.  Always read policy forms for exact coverage.

Personal Umbrella Policies – what you need to know!

Chris

At some point or another, almost everyone who has shopped their insurance has been asked if they would like an umbrella policy.  The large majority of customers or prospects that we talk to over the course of a day have no idea what a personal umbrella policy does or the coverage it provides.  However, as is the case with many of the prospects and clients we speak with, many insured’s are not taking proper measures to protect themselves and their assets.

First things first – what is a personal umbrella policy?  A personal umbrella policy provides an additional amount of liability – usually starting at $1 million – over and above what your current policies provide.  That’s right; these umbrella policies usually extend over the underlying liability limits of your other personal insurance policies – some which may include:  homeowners, autos, motorcycles, boats, rental dwellings, recreational vehicles, etc.

The first rejection that is common among our customer base is:  “Why would I need $1 million of liability coverage!?”  Many of us have much more liability exposure than we realize.  For a quick 15 question quiz to determine your liability exposure, visit www.whatsmyliability.com .  In addition to paying any damages that you may be liable for (injury, damage to property, pain and suffering, lost wages, etc.), an insurance company will also pay for to defend you in a court of law!

Secondly, a true umbrella policy will also provide coverage that may not be available in the underlying coverage.  Normally, the insured must pay a type of deductible called a self-insured retention before this coverage will apply.

Personal umbrella policies can insure your assets and your dreams!

Umbrella policies are usually very affordable, especially when packaged with existing policies.  You may be eligible to apply discounts to your existing policies when an umbrella policy is written as well!  Most importantly, umbrella policies protect you, your family, assets, and future income!

As always, contact your local agent if you have any questions and read the policy form for exact coverage.  Usually, the underlying coverage must be maintained during the policy period in order for coverage under an umbrella policy will apply