Below are articles that Chip and Northern Chesapeake Insurance Services has written for you (published on www.belairnewsandviews.com) . These articles will cover timely issues, so check back often.
 

Tips on how to protect yourself from identity theft during the busy holiday shopping season.

November 16, 2011

Tips for Safe Holiday Shopping

The holiday season is a special time of giving and sharing with others. However, for identity thieves it’s a perfect time to steal your personal information. Thieves only need one single piece of personal information to take your identity and turn your financial life upside down. According to the Federal Trade Commission, there are nearly 10 million people, or five percent of the adult population, who become victims of identity theft each year. Identity theft costs victims an estimated $5 billion in out-of-pocket expenses from trying to reclaim their good credit. With technology advancing every day, it is important to know what you can do to protect yourself before it is too late.



Below are some special holiday identity theft prevention tips:

1 - Safeguard your personal belongings. There are many thieves out there that still resort to the traditional criminal methods of purse snatching and pick-pocketing. So ladies, keep your purses close and never leave them unattended. Men should not carry their wallets in their back pants pocket. A “professional” pickpocket can easily remove your wallet without notice. Try not to carry your Social Security card, passport, or extra credit cards in your wallet or purse unless absolutely necessary.
2 - Take precautions at the ATM. Be aware of your surroundings. When entering PINs use your body to shield the transaction from others. Thieves can easily look over your shoulder, or even spy from far away to steal your information. Take a good look at the machine itself. If you see a strange gadget attached to your ATM machine, it could be a “skimming device” which is designed to read your secure ATM card information. Finally, always use ATM machines in areas that are brightly lit and in secure locations.
3 - Be careful with your credit card. Just as with using an ATM card, thieves can steal your credit card information by simply looking over your shoulder when you are making a purchase. Some thieves are using smart phone cameras to take pictures of shopper’s cards while the shopper is making a purchase. Another precaution to consider is to write “check photo ID” in the signature area on the back of your card. Pulling out your driver’s license every time you use your credit card may be a minor inconvenience but if your card is lost or stolen while shopping, a thief will have a hard time using the card. When you use your credit card, watch the clerk as they process the transaction. If you notice the clerk holding on to your card longer than normal or writing things down while your card is in their hand, ask questions and request that your card be returned. There have been instances of store clerks stealing card information right in front of shoppers. The same precaution applies when using your card at restaurants.
4 - Use care when shopping online. Never shop online from a public computer (at the library, hotel, etc…). Websites often leave personal information behind on the hard drive after a transaction. If the computer that was used has any spyware installed on it by thieves, they might be able to steal your account numbers and passwords. If you are shopping from your home computer, make sure that you have an up to date and reliable anti-virus and anti-spyware software installed. You should also use an anti-malware program regularly. Create website user ID’s, passwords and PINs that are difficult for others to guess but easy for you to remember. Memorize these to avoid having to write them down. Be cautious about sharing your personal information online. Know where it is going and to whom if you choose to enter it online. Read each website’s privacy policy and check for the padlock icon on the bottom of the screen to help ensure your privacy.
5 - Review your credit card and bank (ATM) card transactions regularly. Don’t wait for your statements to be mailed or emailed to you. Shortly after every shopping trip, check your current credit card balance either online or over the phone with your credit card company/bank. Since your purchases will be fresh in your mind, it will be easier to recognize a fraudulent transaction.
6 - Confirm the legitimacy of a charity before donating. In the spirit of the holiday season, I would encourage everyone to donate to a charitable organization. Just be aware that there are criminals out there that will pose as a charitable organization in order to steal your money and/or your personal information. - Never give out any personal information like your birth date or social security number over the phone or online. If you do give credit card information or bank account information to a charitable organization for donation purposes, always contact the charity directly first and verify the legitimacy of the organization (you can do this online too at www.charitynavigator.org as well).


Here are some basic identity theft prevention tips that are good any time of year:

- Check your credit report, which is available free once every 12 months at www.annualcreditreport.com from each of the three nationwide consumer credit reporting companies. If you suspect that there are any inaccuracies, call the bureau immediately. (Call Equifax at 800-685-1111; Experian at 888-EXPERIAN; or TransUnion at 800-888-4213.)
- Protect your Social Security number. Do not use your SSN as an identifier anywhere.
Buy a shredder to destroy any financial and personal documents before throwing them away. This includes bills, statements and pre-approved credit card offers. This is simple and effective.
- Never put outgoing documents that contain personal information in your mailbox to be picked up; drop them directly at the post office or a postal service mailbox.
- Use caution when responding to, or clicking on, an unfamiliar or unsolicited email. It is very easy for someone to scam you by using a seemingly authentic Web address. Avoid emailing personal or financial information to anyone. It is much safer to furnish this information over the phone, provided you are the one who initiated the call.
- Report any suspicious activity to the Federal Trade Commission (FTC) immediately. For more important prevention tips visit the FTC Web site at www.consumer.gov/idtheft.


Insurance Solutions:

Many insurance companies offer identity theft/identity fraud expense coverage as an endorsement to homeowners, condo or renters insurance policies. For a minimal fee (approx. $25/year – varies per company), this insurance provides a specified amount of coverage, usually around $15,000 – $25,000, for expenses incurred due to identity theft including (check with your insurer for their specific coverage):

- Lost wages
- Reasonable attorney fees incurred, with prior approval
- Telephone, certified mailing and notary charges
- Loan re-application fees
- Daycare and eldercare expenses
- In addition, many companies will offer the services of a identity theft/fraud specialist (described below)


An identity theft/fraud specialist can provide you with the help you need in the event you become a victim of identity theft. A identity theft/fraud specialist will guide you through the steps of reclaiming your identity and repairing your damaged financial history, including ordering credit reports, alerting credit reporting agencies, enrolling you in six months of daily credit monitoring, and preparing dispute letters on your behalf. Recovering as a victim of identity theft can be a long, expensive and very complex process. Adding identity theft/fraud expense coverage to your property insurance policy, is a way that you can protect yourself from the out-of-pocket expenses associated with cleaning up your credit.


Northern Chesapeake Insurance is an independent insurance agency offering a full range of insurance products including auto, home, business, boat, motorcycle, life insurance and more. We are a member of Independent Agents & Brokers of Maryland (IA&B).




 

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*First an Earthquake, then a Hurricane… *

September 5, 2011

What does my insurance cover??!!

Two natural disasters in one week! It was one of the most unusual weeks that Marylanders have ever experienced. The aftermath of these uncommon events made for a very busy week for insurance agents. Many clients had questions regarding what would be covered from both the earthquake and hurricane. Clients also wanted to know if there were specific coverage options that they should consider moving forward from these occurrences. Coverage concerns regarding hurricanes will continue to be of particular interest because hurricane season doesn’t end until November 30th.

Compared to the massive amount of news coverage and public concern, damage from the earthquake on August 23rd was relatively minor. Most of the damages that were reported were small cracks in walls, chimneys, and sidewalks. Unfortunately, most people who experienced damage from the earthquake were surprised to learn that earthquake (“earth movement” in insurance language) damages are excluded from standard property insurance policies in Maryland. According to the Maryland Insurance Administration (MIA), the “earth movement” exclusion applies to any damage resulting from earthquake, landslide, mine subsidence, mudflow, and earth sinking/rising/shifting. As is often the case with many exclusions on insurance policies, consumers can opt to purchase an additional coverage rider for ”earth movement” or earthquake damage from most insurance carriers. Generally speaking, an optional endorsement or rider for earthquake coverage costs between $100-$200/year and is subject to a deductible that can range from 5%-15% of your policy’s dwelling coverage limit. While the coverage is not terribly expensive, the deductible is often the strongest deterrent to consumers adding the coverage. For example, if your home’s structural dwelling coverage is $250,000 and the earthquake deductible is 5%, coverage would not apply until your damage exceeds $12,500! Because of these high deductibles, even folks who purchased earthquake coverage prior to this most recent event might not have been covered. Their loss would have probably been below their deductible. Check with your particular insurer regarding this coverage. Not all insurance companies will offer an earthquake or earth movement coverage option. Please note that if your company does offer this option, most companies will impose a waiting period (30 days) before allowing coverage to go into effect.

Unlike earthquake damage, hurricane damage to your home or its contents from the combination of high winds and heavy rains is generally covered by most homeowners policies in Maryland. However, there are certain exclusions or deductibles that can apply during a hurricane. For example, some insurers can institute a higher deductible for a “Named Storm” than your normal policy deductible. These can range anywhere from 1%-5% of your policy coverage. Another area of possible coverage limitation during a hurricane is water damage. A homeowner is generally covered for water damage to a home when wind first damages the roof or siding which ultimately results in water damage being a secondary occurrence to the initial wind damage. However, most property insurance policies in Maryland exclude damage due to: flood; a backup of water through sewer or drain lines; water seepage or leakage through a crack in your home’s foundation.

The Maryland Insurance Administration, in a press release from May of 2011 for National Hurricane Preparedness Week, defines flood as “a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudlow”. The MIA continues, “Many conditions can result in a flood: hurricanes, broken levees, outdated or clogged drainage systems, water main breaks, and rapid accumulation of rainfall”. Unlike with earthquake coverage, you can’t just add an optional rider to a property insurance policy to cover flood. Flood insurance is a separate policy offered through the federal government’s National Flood Insurance Program (NFIP) and is available for purchase through most local insurance agencies. If you are in a high-hazard flood risk area, the average flood insurance premium is around $500/year. However, if you are in a low-risk area like a residential neighborhood away from rivers and tidal water, you can purchase a Preferred Risk Policy that starts at just $122 a year. Similar to earthquake coverage, the NFIP imposes a mandatory 30-day waiting period before a new flood policy can go into effect. A water and/or sewer backup loss is different than a flood. A water and/or sewer backup loss is generally defined as a backup of water through any sewer or drain lines in your home. The most common example of this type of loss is an overflow from the sump pump. If your sump pump is not working because the electricity is out or the pump has malfunctioned, the resulting water damage to your home and contents is not covered without having purchased a separate rider for this type of loss. Water and/or sewer backup coverage can be added with a simple rider to most homeowners insurance policies. The cost for this coverage is generally between $25-$100, depending on the amount of coverage selected. Unfortunately, there are no additional riders or coverage options available for water seepage or leaking through a crack in your home’s foundation. The Maryland Insurance Administration addresses this issue in their consumer pamphlet titled “Weather Related Damage”. The MIA states, “Problems from seepage are considered maintenance issues and are not covered by insurance”.

If you would like additional information about this or any other insurance related topic, please contact me at my office. My phone number is 410-420-3080 and my email is chip@ncins.net . Also, please visit the Maryland Insurance Administration website at www.mdinsurance.state.md.us . At the MIA website, you can find some of the information that I referenced here as well as their consumer reference materials such as their “Insurance Preparedness Guide for Natural Disasters” and “Weather Related Damage – Frequently Asked Questions About Insurance Coverage.” Or you can reach the MIA by phone at 800-492-6116.

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*Kids heading off to College? Know the insurance implications!*

August 11, 2011

It’s that time of year again! A new school year is right around the corner! Many parents are sending their kids off to college for the first time. For students that are moving to either on-campus or off-campus housing at their school, there are very important insurance implications that parents need to consider. The primary question on most parents’ minds is “Are my child’s possessions covered on my homeowners policy while they are away at college?”. That is a great question! One of the most important factors in determining how coverage applies is whether the student is living in on-campus or off-campus housing.

Many homeowners insurance policies will cover your child’s personal belongings (furniture, clothing, electronics etc…) while living at school provided on-campus housing, no differently than if the belongings were still located at your home. In a way, these policies look at the on-campus housing or “dorm room” as a bedroom away from home for your child. If this is the case with your insurance carrier, the entire Personal Property coverage limit on your homeowners policy would extend to your child’s things at college. There is no need to buy a separate insurance policy for the dorm room. However, some homeowners insurance policies limit the amount of coverage for a college student’s belongings to 10% of the parents’ personal property insurance protection limit listed on the homeowners policy. In this circumstance, if you have a Personal Property limit of $150,000 on your homeowners policy, $15,000 in coverage (10%) would extend to your child’s belongings in the on-campus housing. In either case, full extension of the Personal Property coverage or the 10% limitation, coverage would apply for the same disasters (referred to as “perils”) that are covered under the standard homeowners policy. Generally speaking, these would include – fire, theft, vandalism, storm damage etc… However, one very important thing to understand is that accidental damage, like dropping or spilling something on valuable electronics, is not a
covered peril. Since that can be a frequent occurrence at college, parents should look into stand-alone coverage options that are often available through either the manufacturer or the retailers where the items were purchased. One note regarding cell phones – I recommend that parents should contact their cellular service provider to inquire about insurance for their child’s cell phone. Cell phones are often excluded from coverage on homeowners insurance policies. Even if there is coverage, the cost to replace the phone is often under the policy deductible.

The conversation so far has centered around on-campus housing. But what if your child is going to be living off-campus in an apartment? Most likely, your current homeowners policy will not cover any of the student’s personal belongings if they live off-campus. Your child (and possibly any roommates) may be able to purchase renters insurance to cover their things. Renters insurance is inexpensive, generally costing less than $200 per year.

Regardless of whether your child is living on-campus or off-campus, contact your insurance agent to discuss the specific details of your insurance policy and how your insurance carrier handles these types of circumstances. Insurance is never a “one-size-fits-all” type of product. It’s important to have an agent who can discuss your particular situation and implement a solution that meets your needs. If you don’t have an insurance agent that you can rely on, please feel free to contact us at Northern Chesapeake Insurance Services here in Bel Air. Our phone number is 410-420-3080. If you prefer to email, my email address is chip@ncins.net.

 

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Is my home insured against tornado damage?

May 28, 2011

With all of the incredible devastation that tornadoes have caused earlier this spring in Alabama and most recently in Joplin, Missouri, a question on many homeowner’s minds is “Am I covered if my house is damaged by a tornado?” The short answer is “yes.” Generally speaking, homeowners insurance policies in Maryland do provide coverage for your
home as a result of wind damage from tornadoes. Again, generally speaking, claims can be made against your policy for damage to your home, its contents/personal belongings, and for additional living
expenses (sometimes called Loss of Use) that result from not being able to live in your home because of the damage. For specific coverage and deductible information, contact your insurance agent for detailed policy
information. Below is a section of a recent online article from the Insurance Information Institute that outlines the standard coverage on a homeowners policy as it pertains to tornadoes, as well as some tips on actions that you can take to speed
the claims process in the event you impacted by a tornado. If you have any questions at all regarding this or any other insurance related matter, please feel free to give me a call or send me an email. My contact information is: Chip Schilling – Owner & Principal Agent, Northern Chesapeake Insurance Services 410-410-3080 or chip@ncins.net .


 

HAVING SUFFICIENT COVERAGE

Standard homeowners and business insurance policies cover wind damage, including that caused by tornadoes, to the structure of the building and its contents. However, you should make sure your coverage limits reflect the cost of rebuilding the structure, and of fully replacing your personal belongings.

Homeowners insurance policies also provide for additional living expenses (ALE). ALE coverage pays the costs of living away from home if you cannot inhabit your house due to damage from an insured disaster. The policy’s ALE provision covers hotel bills, restaurant meals and other living expenses incurred while your home is being repaired or rebuilt.

If you own a business that has been damaged, business income (also known as business interruption) insurance, covers the profits your business would have earned, based on your own financial records, had the disaster not occurred. This also covers additional operating expenses incurred as a result of the disaster, such as the extra expenses involved in operating out of a temporary location.

Damage to cars from a tornado is covered under the optional comprehensive portion of a standard auto insurance policy.
Seventy-seven percent of insured drivers choose to purchase comprehensive coverage in addition to liability insurance, according to the National Association of Insurance Commissioners’ latest data on the issue (2008). Comprehensive coverage reimburses auto insurance policyholders for loss due to theft or damage caused by something other than a collision.

The I.I.I. offers the following advice to speed the insurance claims settlement process following a tornado:

* Be prepared to give your agent or insurance company representative a detailed description of the damage to your
property. Your agent will report the loss to your insurance company or to a qualified adjuster who will contact you as soon
as possible in order to arrange an inspection of the site.
 

* If it is safe to access the area, take photographs of the damaged property. Visual documentation will help with the claims
process and can assist the adjuster in the investigation.

* Prepare a detailed inventory of all damaged or destroyed personal property. Make two copies—one for yourself and one for the adjuster. Your list should be as complete as possible, including a description of the items, dates of purchase or
approximate age, cost at time of purchase and estimated replacement cost.

* Collect canceled checks, invoices, receipts or other papers that will assist the adjuster in obtaining the value of the destroyed property.

* Make whatever temporary repairs you can. Cover broken windows and damaged roofs and walls to prevent further destruction. Save the receipts for any supplies and materials you purchase as your insurance company will reimburse you for reasonable expenses incurred by making temporary repairs.

* Secure a detailed estimate for permanent repairs to your home or business from a licensed contractor and give it to the adjuster. The estimate should contain the proposed repairs, repair costs and replacement prices.

* If your home is severely damaged and you need to find other accommodations while repairs are being made, keep a record of all expenses, such as hotel and restaurant receipts.

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Clear snow from outdoor drains to protect your home from water damage

January 27, 2011

You probably already shoveled out your driveways and walkways after yesterday's snow storm, but Bel Air News & Views sponsor Chip Schilling of of Northern Chesapeake Insurance suggests there are a few other areas around your house that need some attention.

Melting snow can overwhelm sump pumps and lead to basement water problems. To protect your home, Chip recommends clearing snow from around the foundation of your house. If you have one of those outdoor basement stairwells with a drain at the bottom, clear snow away from the drain so that melting snow won't overwhelm your sump pump. Clearing snow will take pressure off the sump pump and can prevent an overflow. Also clear snow from the area outside your house where the sump pump discharges. The will help discharging water to flow away from your house.

When you're done shoveling, check to make sure your homeowners' policy covers water and sewer back-up. Chip says this is an optional rider that is not included in the base homeowners' policy. He says water and sewer back-up coverage is the only way that your policy will pay for a sump pump overflow. He says the added cost to your policy is often as low as $25 per year.

Click here to request a quote:

For more information on this and auto, home, renters, boat, motorcycle, RV, business, and life insurance, contact Chip at:

Northern Chesapeake Insurance Services
134 Archer Street Bel Air, MD 21014
410-420-3080
Fax 410-420-3080
General email: info@ncins.net Chip’s email: chip@ncins.net


 

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