by Downey Insurance Group | Jul 23, 2013 | Blog
Many car sharing businesses have cropped up in Massachusetts, over the last few years as part of the collaborative consumption movement. The economic and environmental advantages of car sharing can be very appealing to MA Auto owners and it can offer many benefits to the sharer and the sharee.
But what happens if something goes wrong? Sharing your vehicle may have a larger inherent risk involved then say sharing your lawn mower.
Zip Car, Relay Rides and the Logan Airport based Flight Car all claim to carry their own Liability coverage that would cover a loss. But what about the vehicle owner’s policy, how would the Massachusetts Auto Policy respond to car sharing, and ultimately the claims that are going to arise out of this activity?
The Massachusetts Auto Insurance policy specifically states that the insured needs to discuss any and all changes of the exposure to their vehicle during the policy period that the change takes effect. Specifically a garaging change and any business use of the vehicle would be a reportable event. The contract also states that a vehicle rented to others is specifically not eligible for a MA Personal Auto Policy.
ISO (Insurance Services Office) that generates and pens the forms that Insurance Companies use to file exclusions and changes of coverage with the state they are doing business has written a form specifically excluding car sharing. This form will be available for MA Auto Insurers to file with the State the Massachusetts starting in October of 2013. This form, labeled the “Personal Vehicle Sharing Program Exclusion Endorsement” would allow the vehicle owner’s policy to quickly and explicitly deny ANY CLAIM that arises out of car sharing.
Right now this is a very grey area. In February 2012 there was a fatal crash involving a vehicle rented through Relay Rides that killed the driver of the rented vehicle and seriously injured 4 people in the other vehicle. The owner of the rented vehicle Liz Fong-Jones, a MIT Student at the time received a check for the replacement cost of her vehicle which was a total loss, and Relay Rides did provide $1,000,000 in Liability Coverage for her. Her MA Personal Auto Policy (Commerce Insurance) also chose to respond on her behalf with her $300,000 in Liability Coverage during the claims process. But what if the claim had EXCEEDED that amount? Would she be personally liable for the actions of the driver that is renting her vehicle?
These are all things that need to be considered when making the decision to share your vehicle. Overall the sharing economy is a movement that needs to be embraced to maintain sustainable living. The state laws that govern and the Massachusetts Insurance Company standard practices will eventually catch up and make this much less confusing, but in the mean time it might make sense to be wary of this practice.
by Downey Insurance Group | Jul 18, 2013 | Blog
When was the last time you reviewed your insurance policies? You may have renewed your personal auto or homeowner’s policies with just a glance at the information before sending the renewal paperwork back in. That’s fine if nothing has changed since last year, but is that really the case?
Even if you did nothing new to your home within the last year – no new swimming pools… no new additions or anything- your home’s value has changed. Renewing at the same amount of coverage as last year may not be enough to cover your entire home in the event of a claim situation.
Standard policies require that you have at least 80% of your home’s replacement value insured. It is important to realize that the replacement cost of your home is by no means the same as the real estate value. It is the amount it would cost to fix and repair your home if it were to get damaged. It is determined on the cost of lumber and other building materials and the amount you would need to fix your home back to its original value.
Therefore if it would cost more this year to replace your home than it did last year (which it probably will considering the decrease in natural material availability), you may need to increase the limits in the first section of your policy or risk not having the coverage you think you have.
If you are concerned that you may have renewed your policy without the amount of coverage you need, we can certainly help by determining your property’s replacement value and deciding what limit your policy should be set to. We can contact the carrier and have your policy endorsed accordingly. Just call us and connect with one of our knowledgeable insurance agent and we can discuss it.
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by Downey Insurance Group | Jul 8, 2013 | Blog
What is glamping? It is a camping experience that offers the rustic appeal of camping with the luxury amenities of a glamorous resort. The glamping trend is exploding all over the US and appeals to all kinds of travelers. Allowing you to get close to nature without getting too close.
Some people may just prefer a warm bed to a sleeping bag at the end of a long day of hiking or swimming, or a stove to cook dinner on instead of an open fire or grill. Some of these resorts offer yurts, cabins, tree houses, and “pre-setup” campsites for the convenience and comfort of their campers, and who wouldn’t want to spend the night in a tree house?
Some Massachusetts Campgrounds are picking up this trend and are offering a unique glamping experience. Here are a few that have received the highest rating for customer satisfaction from Trip Advisor, and our own personal favorites from the Downey Insurance team.
Pine Acres Family Camping Resort in Oakham, MA – They have RV rentals, Premium Cabins, a Luxury Pool, Campground, Splash pad, Boating, Dock rentals and more. August 10th this summer is Chocolate Madness Weekend with a Chocolate slip and slide, chocolate water balloon fun and of course Lots of Chocolate for the adults too!
Cape Cod Camp Resort and Cabins in East Falmouth, MA – Some of the perks of this campground other than being close to the Ocean they offers 3 Pools, Jacuzzi, Playgrounds, beautiful activities room, Cabin and Cottage Rental with Cable available, Wi-Fi, and lake swimming on site. This resort is offering for a limited time, a 20%Late Prime Season Booking Discount!
Normandy Farms Family Camping Resort in Foxboro, MA – Conveniently located near Foxboro Stadium for a dual purpose trip offers a Fitness Center, Dog park, Disk Golf, Playgrounds, Creative Arts Center, with Yurt and Cabin Rentals that have a long list of amenities included in your stay.
Camp Kiwanee in Hanson, MA – Is best for “Event Gamping” they can host anything from Weddings, Corporate Events to Bluegrass Festivals! With a beautiful lodge and cabins available for weekly rentals or special events camp Kiwanee offers a breathtaking backdrop for any event.
by Downey Insurance Group | Jun 28, 2013 | Blog
June 28, 2013 is National Insurance Awareness Day. There is no better time to look over your current insurance portfolio, from personal insurance to commercial insurance. People often purchase insurance policies and never look at them again, to see if coverage’s potentially need to be updated. Here are a few tips for updating your insurance policies:
Homeowner’s Insurance
Have you purchased or acquired jewelry, furs, fine art, or oriental rugs? If so, are they listed on your insurance policy? These items may have a specific limit, they may not be covered on your Homeowners Policy without being scheduled, or they may need their own Inland Marine Policy. Update your current coverage to ensure that all of these pieces are adequately covered.
Massachusetts Personal Auto Insurance
When was the last time you thought about your Massachusetts Auto Insurance Coverage? Your limits may have been adequate at the policy inception, but today it may not provide enough coverage. You may need to increase the limits to make sure you’re assets are adequately protected. How about Rental Reimbursement… do you have it and do you know your coverage limit? These are the types of coverages you need to review and update.
Personal Umbrella Insurance
This policy provides another layer of coverage over and above your auto liability, personal liability (home or renters policy), auto liability, and boater’s liability. A personal umbrella liability policy will protect you from out-of-pocket expenses when a covered liability claim exceeds the limits of your other liability coverages. You may not have needed this coverage 10 years ago, but in today’s litigious society we can use all the protection we can get.
Commercial Insurance Policies
These policies require continuous monitoring. The exposures for businesses continue to evolve as they grow and change. Contact your agent and discuss all business exposures to make sure that you have the coverage you need. For example, cyber liability is a risk that a lot of businesses have, but it is commonly excluded under a general liability policy. How about media liability, are you running a social media marketing campaign? If so, this is another coverage that may be excluded under general liability policy. Discuss all of your business risks with your insurance agent to make sure that your business is adequatley protected.
Life Insurance Policies
Have you gone through any major life changes since the inception of your Life Insurance Policy? Do you need to update your beneficiaries? Often people will go through a divorce and forget to update the beneficiary. If you’re on a term policy, be aware of when the term ends. Make sure you give yourself enough time to let us shop for another policy for you. We have access to all the major Life Insurance carriers from an independent perspective.
Financial Planning
We have a full service Financial Planning division. People may not think of Financial Planning in the same category as Insurance, but they really go hand in hand. Financial planning is Insuring your financial future. With an independent advisor you can have a partner to discuss financial concerns, and future expenses that you may want to consider. Such as Long term care insurance, Mutual Funds and 401K roll overs.
by Downey Insurance Group | Jun 26, 2013 | Blog
After being stuck inside their forced air, dreary classrooms all year, your kids may be ecstatic about playing all day outside in the summer sun. However, that excitement may be short lived once the heat really sets in and the kids get bored out there. You may need to step in and get some motivators out there so they can still enjoy the outdoors without wanting to come inside every five minutes.
The outdoor sun is very good for us in small doses. If your kids are planning to be in the sun for more than 15 minutes, be sure to lather them with sunscreen at least every two hours or after they get wet/sweaty. Make sure you have a shady area they can retreat to whenever they need it. Give them some fun things to do like board games, crafts, and books to read in the shade while they relax for a bit.
Once they are ready to play again, let them cool off with some water fun like water balloons or water soaked sponges. You can even throw some clothes in a bucket of water and see who can put them on the fastest. It will be a blast for everyone!
Being outside is a great benefit to everyone’s health. The sun helps us produce much needed vitamin D in our bodies. The fresh air helps us get more oxygen to our lungs. And being away from the kitchen helps us maintain healthy eating habits. The closer we are to food, the more tempted we are to eat it. With childhood obesity rates constantly on the rise, it is important to teach kids about their health and how important it is to stay in shape.
For more ways to get your kids outside this summer, contact your health insurance carrier. They will have great tips on healthy habits and how to beat the heat this summer!
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