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Some Thoughts About SUVs

The great American poet Marianne Moore was once commissioned by the Ford Motor Co. to name its newest car. A few names she came up with: "The Utopian Turtletop," "The Resilient Bullet," and "The Intelligent Whale."

Ford didn't use any of these names, preferring to go with the family name of "Edsel." But "The Intelligent Whale" might be a good name for a sport utility vehicle (SUV). The American public seems addicted to these buildings-on-wheels. The phenomenal sales growth of this private passenger vehicle also pleases the auto manufacturers, since SUVs are their most profitable product. People seem to like SUVs despite their low gas mileage, parking space problems, high accident potential, and other disadvantages.

Every year, manufacturers try to outdo each other in size and sales volume. The expected introduction of a pickup bed in place of the rear seat in luxury SUVs promises to put even more SUVs on the road in the future.

The National highway Transportation Safety Administration (NHTSA) reported that in 1997 (the most recent date for which studies are complete), 9,400 people died when a car, van, or SUV rolled in an accident - 21% of total crash deaths. The rate for pickups was 42% and 62% for SUVs. The NHTSA is currently considering a rating system for SUVs that could end up as the basis of a warning label program.

Rating system or not, the make of a vehicle affects your insurance premium. If you're thinking about purchasing an SUV (or any other kind of car), check with us about insurance costs. Knowing the insurance premium for different makes in advance might save you from an unpleasant surprise after your purchase. Comparing sticker prices isn't enough; you need to consider the long-term impact of safety factors, gas consumption, maintenance costs, license, taxes, and insurance costs to get the whole picture.

Some people believe that motorcycles, jet skis, cars, and other vehicles stored in the garage are adequately covered under a Homeowners policy for fire and other perils. Not so. These vehicles should be insured under an Auto policy or a Recreational Vehicle policy.

In some cases - for instance, when vehicle's are laid up for the winter or the owner is out of the country for a number of months the policy's Liability portion can he suspended for the idle period. Just be sure to reactivate it when use resumes!

Another situation that causes problems is the storage of cars, boats, and recreational vehicles in someone else's warehouse or barn. What happens in the event of a loss - say, when the barn burns down? It can get complicated. Talk to us!

There's More Than One Way to Lose Your Property

Mention Homeowners insurance and most people think of protection against property lost to finish, burglary, and other perils. Few consider the importance of the policy's Liability insurance. This protection (with its accompanying Medical Payment coverage) guards the insured family from claims of negligence.

Let's say you're holding a yard sale. While rummaging through your goods, a visitor cuts his foot on a rock and sues you. Or a satellite-dish installer falls through the roof and sues you for failing to warn him that your roof was weak. Your Homeowners policy will handle the defense of these claims and make small settlements.

Families are constantly involved in liability-generating situations: backyard sports, at-home swimming pools, pets, barbecues, and so on all can cause injuries. Homeowners Liability protection even extends beyond the home premises to cover family members and certain other household residents from many activities.

However, the medical payments available through the Homeowners policy's Liability coverage do not apply to family members. This protection is best left to the family's Health insurance. Instead, it pays for first-aid coverage when someone outside the household is hurt on your property - for instance, when the cleaning lady trips on the stairs, your take-charge neighbor lights the barbecue and seriously burns himself, or your dog nips a guest.

When a non-family member is hurt, the family doesn't have to be proved negligent for the medical payments to kick in. This coverage helps to deter claims and lawsuits; an injured person who is given free medical help is less likely to make a claim later.

Policy limits for liability and medical payments are important considerations for the homeowner. The standard limit of $100,000 for Liability claims and $1,000 (possibly as high as $5,000) for medical payments is inadequate in many parts of the country. Fortunately, higher limits are available via an Umbrella Liability policy. Umbrellas raise your limits for Liability, Auto, Homeowners, and more by at least $1 million, fortifying you against serious damage claims. And besides extending coverage that already exists, Umbrella policies may also insure whole new areas.

Umbrella policies are quite affordable. Premiums are generally low because most claims are covered by the underlying policies. But be warned: One Umbrella does not fit all! You must choose the policy that best suits your needs from the wide variety available. Purchasing an Umbrella policy is a wise move for anyone - but it's imperative for those who could lose a good deal of assets because of a single negligence claim.

Last year, the holiday gifts were lavish. Among them were a couple of expensive watches. a Precious Moments figurine, and a Mark McGwire rookie baseball card.

If these things are stolen, lost, or damaged, your Homeowners policy might not pay for them.

Homeowners policies are designed to cover the average household - but plenty of options for extra coverage will fit the policy to your unique needs. A typical policy devotes 50% of its total toward Contents coverage; that is, $100,000 worth of coverage would pay out $50,000 toward personal property in the event of a loss. Some categories of personal property, such as jewelry, have internal policy limitations.

But you can still cover these items. To do so, make an inventory of all your personal property and its value. Send us the list so we can determine how much of the property is covered under your current policy. We'll call you if the policy needs adjusting.

At the very least, inform us of expensive or unusual items that need special insurance: fine arts, furs, antiques, rare items and memorabilia, souvenirs, and collector items. These can be insured through an endorsement to your Homeowners policy, a separate Personal Articles floater, or a Fine Arts floater.

The TV images are indelible: Destroyed homes. Distressed families picking through the rubble. It's hard not to wonder what you'd do if a tornado or other disaster hit your home. Certainly a Homeowners policy provides comfort and recovery but as with any policy, you must prove your loss.

In the event of a disaster, an insurance company will advance you money immediately and ask you to come up later with proof that the property existed at the time of loss.

Memories are unreliable, so it's crucial for insureds to keep a record of what they own in a safe place perhaps a safe deposit box or a relative's home in another location.

Swing the camera 360 degrees in each room, and film even the insides of closets and drawers. As you tape. narrate the serial numbers, dates of purchase, and other information. In lieu of a videotape, a simple paper inventory is far better than nothing after a destructive loss. Be sure to update any inventory every few years.

The Year 2000 (12K) frenzy has cooled down, at least in terms of media warnings, but some people are still worried that they won't be able to access their bank accounts immediately after Dec. 31, 1999. Having spent millions to prevent computer-generated problems, the banking industry assures us that the back-up records held by banks will enable any problems to be corrected promptly.

If you want to be prepared for any eventuality, should you stockpile cash? Extra currency will be printed this year, since the Federal Reserve is anticipating a major drain on the normal supply.

But beware: Large amounts of cash in private hands will encourage robberies and burglaries. Opportunistic criminals won't be going on holiday because of Y2K - in fact, they may even be hoping that Y2K-generated chaos will leave them a free field for their "work." If you plan to carry a lot of cash come New Year's, be sure not to spread the word!

Also, consider your insurance coverage. Homeowners policies have special limits for a number of valuable, easily portable items, including cash. A basic Homeowners policy may have a cash limit as low as $200. Fortunately, these limits can be raised in fact, you may have already done so for jewelry or other property.

Call us if you're not sure what your limits are - and definitely let us know if you plan to store a lot of cash.

High school graduation has come and gone. Your child may be entering college - or perhaps leaving on some other adventure. Now is the time to see what affect your child's absence will have on the family's Homeowners, Auto, and Health insurance policies. Changes in existing policies may need to be made - or perhaps a whole new policy is in order.
Call our agency for advice.

Precious, Yes

-- Priceless, Hardly!