Image via Wikipedia

Even though it’s only July and we still have 2-3 months before the flu season gets cracking, drug companies and government agencies have been hard at work preparing the vaccines. Some manufacturers are even distributing the vaccines early in an attempt to avoid crippling shortages later in the season.

2011’s flu shots will provide the standard cocktail of protection spreading across a wide range of influenza A and B, which includes the infamous H1N1 strain, known to the pandemic-frightened 2009 world as “Swine Flu.”

(People I know actually made t-shirts that proudly stated ‘I survived the Swine ‘09’).

A quick medical lesson: the premise behind vaccination is that by exposing yourself to a small, innocuous sample of a virus, your body builds antibodies that quickly tackle the small infection. These antibodies are then already in the bloodstream when the bigger, badder version of the flu hits, and your immune system can fight it off without you getting sick.

While vaccination is commonly regarded as the most significant advance in medical history, the immunity for flu shots only lasts long enough to get you through flu season.

That means that if you were vaccinated last year, you should make an effort to be vaccinated again. The CDC recommends the vaccine for anyone six months or older. Different versions of the vaccine have been developed for different age groups.

Here are some things you can do to stay healthy for the 2011 flu season:

• Avoid close contact with people who are sick.
• Wash your hands often, especially before each meal. If you don’t have access to soap and water, use alcohol based hand sanitizer.
• Avoid touching your mucous membranes (eyes, nose, mouth) while out in public areas.
• Get a yearly flu vaccine – this is especially important or the very young and the elderly, who are at risk for more severe flu complications.

Related articles

• FDA approves flu vaccine for coming season. (ascleses.wordpress.com)
• GPs Urged to be Cautious with Child Flu Vaccines (prweb.com)
• More Than 690,000 Americans Have Already Been Vaccinated Against The Flu This Season, SDI Reports – Cdc Supports Expanded Access To Flu Vaccination (prweb.com)

Image via Wikipedia

Now that it’s summer, many are taking vacations and renting a car, which prompts questions about rental car coverage.

If you rent a true replacement vehicle (private passenger auto similar to what is insured on the policy) and your own vehicle is not being used, then the coverages on your auto policy will extend to the replacement vehicle if it is being used within the U.S., its territories or provinces, and Canada.  There is no coverage provided for vehicles rented out of the country.

There is also no coverage if the vehicle rented is a motor home, or commercial U-Haul type of vehicle and we recommend purchasing the coverage from the rental company.

All operators that may drive the rental vehicle should be listed.

The coverages provided by your auto policy to the rental vehicle are the same as provided for your own vehicle.  The deductibles apply to at fault accidents and comprehensive losses.  Coverages that do not apply and for which you may be billed by the rental company are loss of use (when vehicle is being repaired following a loss and unable to be rented) and depreciated value (due to damage incurred).

We recommend checking with your credit card companies to see if they may provide this coverage when utilizing the card as payment for the rental. Otherwise, if you would prefer to walk away at the end of the rental period regardless of any incidents, you may just wish to purchase the coverage through the rental company.

Have a safe journey and look to Gordon Insurance for your insurance information needs. Our job is to make insurance make sense.

Image via Wikipedia

On July 12, 2011 the House of Representatives passed a bill (HR 1309) that will fundamentally change the National Flood Insurance Program, the public’s main outlet for flood insurance.  The bill passed by an overwhelmingly bipartisan vote of 402 to 22.  An amendment to close the whole program was roundly defeated.  Senate passage is expected, though when is uncertain.

The existing program was in trouble.  Congress missed four reauthorization deadlines last year, meaning the program lapsed four times for several days at a time, creating havoc in the real estate and insurance markets.  In addition, a lingering debt of $18 billion remains on the books from 2005 (mostly Hurricane Katrina); a hurricane in any metropolitan area in Florida or the Gulf could double that loss in a weekend.  The 112th Congress is less inclined to accept these kinds of unpredictable expenses, and the bill seems to reflect this change in attitude.

The National Flood insurance program has been around for decades and today is the primary vehicle for providing insurance for about 5.5 million property owners around the country.  Locally, many homes from Quincy to Plymouth and hundreds more on the Cape have been rebuilt with NFIP insurance.

Conceptually the National Flood Insurance Program makes sense: private insurers are reluctant to insure against losses that are geographically concentrated because of an insurance concept known as ‘spread of risk’.  A single company can’t accept such concentrated risk without putting its own balance sheet on the line.  The national government can spread risk better: they collect premiums for spring river overflows in the Midwest, winter nor’easters in New England, and fall hurricanes in the Gulf.  The problem is that the current rates are not developed with the same detail as private insurers need when trying to make a profit.  To wit, in 2006, the year after over $17 billion in losses, NFIP rates actually went down.  This pricing failure leads to a problem known as ‘adverse selection’: flood insurance is a great deal if you’re really near the water; it’s not a great deal if you’re only mildly exposed to flood waters.  Thus, the people at the greatest risk get the best (most subsidized) deal.  This is not a formula for long term survival, or even a break-even program.  Consider the findings of a 2006 Congressional Research Service study: the program operated at a loss for 19 of the previous 34 years.  This spring’s midwestern floods likely contributed to pressure for overhaul.  In its existing form, it is truly another disaster waiting to happen.

The program has also been criticized for promoting development in environmentally sensitive coastal areas.  While coastal development was seen as a positive thing 40-50 years ago, today many voters prefer to see remaining undeveloped coastal land and wetlands set aside for conservation.

In the bill passed by the House, rates will be transitioned gradually to risk based premiums.  Many properties with multiple claims will see lower subsidies, and in some cases, insurance may be refused altogether.  During the transition phase, annual premium increases, previously limited to 10% per year, will be capped at 20% per year.  Other features include minimum $2,000 deductibles on subsidized rate properties, and $1,000 deductibles on risk rated properties.  The bill also established a ‘Technical Mapping Advisory Council’ to develop new mapping standards.  In short, the NFIP is transitioning in a direction toward the way for-profit companies measure and charge for risk.

Because of the transition to risk based pricing, some new options will become available: annual increases indexed to inflation, and additional living expenses common with homeowners insurance.  Business income loss will be offered for business properties.  Importantly, the bill reauthorizes the program through 2016, which will provide a measure of certainty severely lacking in previous years.

The bill’s author, U.S. Representative Judy Biggert, R-Ill., said after the vote, this “eliminates barriers to the development of a private flood insurance market, and helps take taxpayers out of the risk business. The NFIP is too important to let lapse, and too in debt to continue without reform. I urge my colleagues in the Senate to speed this legislation to the President’s desk.”  Locally, Congressman Bill Keating of the 10^th Congressional district and Stephen Lynch of the 9^th, both voted for the bill.  More detailed summaries of the bill are available at thomas.gov site linked here.

For most homeowners along the coast, this will mean higher flood insurance costs beginning this fall.  There are still steps homeowners can take to reduce costs, and to control what kind of insurance you need to buy. Those steps include:

• Know what zone you are in; if you buy insurance before your local flood map changes, you should be grandfathered to the existing zone. View FEMA’s map pages here
• If you are in a n A, B, or X zone, getting an Elevation Certificate from a qualified engineer may help you especially if you are on or near the border of a lower rated zone (Your home might be in a better place than the map says).
• For more about coastal insurance for your home, visit www.agordon.com/home.
  Consider mitigation practices such as those recommended by FEMA and other construction experts.

The bill had broad support from insurance companies and agency groups for improving the predictability and sustainability of the program’s future.   For more about what you can do to contain the cost of insuring property along the coast, visit www.agordon.com/home for more.

Geoff Gordon

Related articles

• House acts to overhaul flood insurance program (seattletimes.nwsource.com)

Image via Wikipedia

A new year means many things for car buyers; new safety ratings, new models, and new costs. Another aspect of a car search to consider is the cost of Auto insurance; preferably before Royce rolls his brand new auto from the lot.

Fortunately, Insure.com has done the world a great service by ranking the most expensive and least expensive cars to insure. Most of the cars on these lists will come as no surprise to you, but nonetheless good information to have before you adventurously strike out to haggle with the peddlers of the automobile world.

It’s important to note that the car you drive is NOT the only factor that affects your auto insurance rates. Several other factors, including age, gender, area of residence, and annual mileage also play a part in determining the number at the bottom of your car insurance bill. We’ve also written about how each of these affects your insurance, if you’re interested.

As for the car itself, there are reasons that some cost more to insure than others. This is due to safety ratings, top speed, anti-theft devices, and cost. It makes sense that a fast, poorly protected car will be the apple of a thief’s eye and therefore cost more to insure.

Performance: what can this baby do on the highway?

If your car’s engine could power a third world village, your insurance is going to be higher. Insurance companies have to assume that high performance cars are bought for just that reason: to drive fast and practice risky driving behaviors. If you want to keep your insurance low, stay away from performance vehicles.

Foreign Cars:

If your dream car has parts from obscure companies and/or locations, beware. Should you get into an accident (even a minor fender bender), the replacement parts will be much more costly than high supply auto parts. That factors into your insurance cost; in fact, it may factor in even more in the future if gas (and thus shipping) prices continue to rise.

Bigger is not always better:

First and foremost: YOU ARE NOT NECESSARILY SAFER IN A BIGGER CAR. There are many large trucks and SUVs that have inherent safety flaws.  Consult crash test reviews and data before you commit to a larger car. However, even if safer, SUVs are not necessarily the best way to obtain low car insurance. Big cars tend to have a higher liability coverage rate because they do more damage to other cars in accidents.

Consider a ‘family car’:

Remember the ‘high performance, high insurance’ paragraph? Well the converse is also true. Cars associated with ‘routine, safe’ driving behavior are going to cost you less. These are the cars that many think of as ‘family vehicles’: minivans, station wagons, and family sedans. This is due to the fact that ‘family vehicles’ are statistically involved in fewer crashes than other types of cars; therefore, they will cost you less to insure.

 Remember:  insurance companies play a game of numbers; if your car is going to cost more to replace, then you’re going to pay more for it.  With that in mind, go forth and buy the right car for you and your insurer.

And, of course, if you find yourself in an auto insurance pinch, look to Gordon Insurance: we provide both a wealth of information on our website and would be happy to place you with the right insurance agency for you.

Image via Wikipedia

Remember when:

• It took 2 minutes for the TV to warm up
• Your dad made all the decisions
• Your windshield was cleaned, radiator & oil checked and gas served, without asking, all for free, each & every time
•  Car keys were always ‘stored’ in the ignition
• Hula hoops, Jacks & Pick up sticks
• Penny candy that cost a penny
• Home milk delivery in glass bottles
• 33’s & 45’s played on Hi Fi record players
• Adding machines, mimeograph machines &  typewriters
• Water balloon fights
• A neighbor’s new car was the talk of the neighborhood
• Chinese food was an occasional treat
• Suits, ties, hats, dresses & gloves were worn to church and on airplanes
• Bundle boys carried your groceries to your car
• Sen Sen
• Brill Cream-  “ A little dab will do ya”
• Scooter pies
• Kerosene smudge pots used as highway flares
• Car tires had inner tubes
• Wallpaper was hung with wheat paste and every room was wallpapered.
• All barbeque grills used briquettes
• Stores and malls were closed on Sundays
• You had to manually defrost your freezer
• Polaroid instant cameras
• The Ivory Soap twins
• “Winston tastes good, like a cigarette should”
• Pepsi Cola hits the spot, 10 full ounces, that’s a lot!Remember the slogan, “Your Independent Insurance Agent serves you first”? At A. Gordon Insurance, times haven’t changed. Our friendly staff at A. Gordon Insurance continues to put you first!

Risk in Perspective: Insight and Humor in the Age of Risk Management

Related articles

• Insurance 101 for Generation X (agordonins.wordpress.com)

How:

It works this way: the Massachusetts Auto Policy (MAP) says that it will extend coverage to a “replacement vehicle”, usually meaning a vehicle you’re renting while away from home…on business or on vacation.  Thus the coverages you buy extend from your policy at home.  If you don’t buy collision for your car at home, you won’t pick it up for a replacement vehicle; in this case buy the rental CDW coverage.

Where:

Coverage from the Massachusetts Auto policy (MAP) follows you when you rent a car in “covered territory” which is the entire USA, its possessions and territories, and Canada.  No coverage extends in any other country, such as in Europe or Mexico.  When traveling outside of the covered territories, consider the rental insurance coverage, gold cards, and the like, but read the offers carefully.

 Who:

The MAP will apply for You and for anyone that qualifies as a “household member” by definition (related to You and living in your household).  In Massachusetts, the insurance carrier can deny all optional coverages if an operator is NOT listed, so be careful who’s listed, and only the listed drivers should drive.  

What about liability:

The policy extends to a “private passenger auto” type vehicle.  A rented car is fine; trucks and vans generally won’t qualify under the ‘replacement vehicle’ definition, so with these it’s prudent to buy the coverage.

What about physical damage (collision & comprehensive -> damage to the rental)?

Collision and comprehensive says coverage applies and extends to “other private passenger autos“.  Some carriers interpret this as only allowing the rental of a private passenger car; some include pickups and vans less than 10,000lbs, and still others say anything that can be insured under a Massachusetts Personal Auto Policy… which could even include motorcycles and motorhomes, as long as they’re less than 10,000 lbs. 

Which carrier uses which collision and comprehensive interpretation?    We suggest you have us ASK your carrier specifically how THEY interpret the policy language.    When there is interpretation, it’s good to know how they will approach a potential claim beforehand!  If you’re a customer of Gordon insurance, call us to get confirmation on how your carrier treats these issues.

What will get paid?  What won’t?

When it does pay a physical damage (collision or comprehensive) claim, it will only pay actual cash value (meaning they deduct depreciation).   Some rental contracts require REPLACEMENT COST.  The MAP will NOT pay a physical damage claim on a replacement cost basis.

 What about loss-of-use, or continued rental charges?

If you damage a rental car, you will probably be responsible for loss of use charges, or continued rental, as well as other “administrative” charges.  Your insurance will not cover these.  Also, Substitute Transportation coverage does NOT apply to rental cars.  This could be an expensive issue if a vehicle takes weeks getting replaced, so understand that you’re on your own for this part.

 Collision Damage Waivers (CDW) through the rental agency and Gold Cards.

The rental companies “sell” collision or loss damage waivers that remove the responsibility for physical damage claims and resulting loss of use.  You really should read the fine print as it is easy to VOID this agreement without even trying (valet parking can be a problem as it would be for any unlisted driver). 

Gold cards and platinum cards ALSO have requirements as to claim reporting periods, rental length periods and type of vehicles that can be rented.  If you rely on the coverage from your credit card, we strongly advise you to read the agreement carefully first.

In short, while the Massachusetts auto policy provides a lot of coverage to your vacation rental vehicle, you still must pay attention to who’s driving, and understand that if you are in an accident, you’ll continue to rent that car while it’s being fixed.  It’s good, but not perfect.

For all your perosnal insurance needs, visit www.agordon.com, or call us at 800-649-3252.

Have you recently seen a letter in the mail from your insurance company notifying you that your current home & auto policies are up for renewal? If you have, there are a couple easy steps you can take to make sure your insurance still fits: covers you where you need it, and be sure you’re not overpaying for something you don’t need.

Year after year, too many people renew their home & auto insurance policies automatically, never pausing to check if it all still makes sense. Our lives our constantly changing, and so are our insurance needs. The good news? You don’t have to become an insurance expert to do that check. Because we already are. And we’ll give you a fresh perspective, and we’ll never waste your time.

We at Gordon Insurance make this step easy for you. Send us a copy of your expiring or renewing policies; we will review through a proprietary checklist, often exposing areas where your existing insurance may not protect you as well as you should expect. Our checklists also make sure you’re getting all of the discounts you should- – that can save you money!

Insurance really does need to match your life. Are you renting out a vacation home this summer? Are you adding someone to your auto policy? Have you started your own business from home? To protect yourself properly requires an insurance professional, who really cares, and to ask the right questions.

We make insurance make sense.

Val Feeney

Image via Wikipedia

One of the more ridiculous and dangerous things drivers tend to forget about is the possibility of hitting a deer.  If you live and drive in a city one hundred percent of the time, stop reading this post or come back to it in 20 years when deer are forced into cities too. If not, read on.

Perhaps you still think that a collision with a deer is unlikely; according to the National Safety Council, there are roughly 530,000 animal-related accidents per year. Also, depending on what type of car you drive, you could be looking at some serious damage or bodily injury from a collision with a deer sans accident.  Our drivers’ ed instructor, a former state trooper, warns fledgling drivers about how he and his partner hit a large male deer and totaled their police car.

The I.I.I. lists several steps you can take to avoid unnecessary collisions with deer.

1. Have you ever heard the expression ‘lone wolf’? Yeah, that doesn’t apply to deer. It is very rare for deer to travel alone; if you see one by the side of the road, slow down and keep your eyes peeled. Others are most likely nearby.
2. Pay attention to deer crossing zones; as obvious as this may sound, drivers typically notice road signs like speed limits and tend to ignore deer crossing signs. If a municipality is willing to fork over the money to erect a sign for deer, there must be a significant deer presence. Proceed with caution.
3. Drive carefully at dawn and dusk. These are actives times for deer, and statistically the most likely time for you to hit one.
4. When driving at night, use high-beams. Deer on the side of the road will be much easier to see, and their eyes will reflect the light brightly, even at a distance.
5. If you encounter a deer, blow your horn with one sustained blast to scare them away. Be aware that they might run into the street though, so slow down when you do so.
6. If there is a deer in your path, brake firmly but DO NOT SWERVE. Minor crashes become serious crashes when drivers swerve into oncoming traffic or off the road to avoid animals.
7. Do not rely on ‘deer whistles’ or ‘deer reflectors’. There is no evidence to suggest that these devices are even marginally effective.

And of course, always wear a seatbelt.

If you do strike a deer, DO NOT TOUCH the animal; it will hurt you or itself. Give the injured deer some distance, get your car off the road, and call the local police.

Call your insurance agent if you do hit a deer and report any damage to your car. Animal collisions are included under comprehensive coverage with your auto policy.

Related articles

• Drivers warned over deer collisions (confused.com)
• How To Avoid Deer Collisions (autoinsurance.org)
• Drivers urged to slow down for deer (confused.com)

Popular culture has largely portrayed a lightning strike as an event akin to winning the lottery or another extremely improbable occurrence. However, better data collection efforts over the last decade have shown lightning’s danger to be underrated at best.

To put the statistics in perspective:  according to the Lightning Protection Institute (LPI), lightning strikes thousands of people each year, injuring a few more than 1,000. Have you ever been afraid to go swimming after watching ‘Jaws’? Well the probability of being struck by lightning is approximately 30 times more likely than being attacked by a shark. You should be watching the sky, not the water around you!

I personally know two people who have been struck by lightning; one lived, one did not. While this is entirely anecdotal evidence, it does beg a question as to why lightning is generally not taken seriously as a threat. My personal theory is that it’s a combination of the misconception that lightning strikes are extremely rare and the commonness with which we encounter lightning.

Lightning can also be very damaging to property; according to the Insurance Information Institute (I.I.I.), there were 213,000 lightning related claims last year. These losses include damage to expensive electronics and structural fires. The I.I.I. further estimates that the average lightning claim to be $4,846… around the price of a cup of coffee at Starbucks (haha).

But in all seriousness, lightning is not a phenomenon to be taken lightly –no pun intended- and a good way to practice good lightning safety is to understand the myths surrounding lightning as well as related safety procedures.

Lightning Myths:

• Lightning never strikes the same place twice. Wrong. Lightning often strikes the same place twice, especially if that place is tall, metallic, and isolated.  While we’ll forgive you for using the expression in casual conversation, don’t believe it to be true.
• You are safe from lightning if you can see the sky. Wrong again. Lightning often strikes outside the area of a thunderstorm or rainstorm, sometimes several miles away. Just because the storm is not overhead does not mean you are safe.
• Lightning rods attract lightning. Wrong. Lightning rods provide a safe place to ground the electricity should lightning

Lightning Warning Signs:

If you are caught in a storm, pay attention to how you feel. If your skin beings to tingle, you hair stands on end, you smell an acrid odor in the air, or you get a metallic taste in your mouth, you might be about to experience a lightning strike. Get low to the ground and follow the steps below.

What to do and not to do (Compiled from the I.I.I, LPI, & Essortment):

• Stay away from bodies of water, such as lakes and swimming pools – even indoor swimming pools.
• Stay clear of isolated trees, flagpoles, telephone poles, hills, and rooftops. Get out into an open field or road.
• Of course NEVER touch metal objects such as wire fences, golf clubs, aluminum baseball bats, bicycles, during a lightning storm.
• If you are caught out doors during a thunderstorm, crouch down and keep your head as low as possible and only let your feet touch the ground – rock forward on your toes if possible to get as much of your feet off the ground. Do not touch the ground with your hands to balance yourself.
• NEVER lie down on the ground – you want as much of you off the ground as possible. The electrical current from a nearby lightning strike can travel toward you along wet ground.
• Even indoors you must use common sense. Always stay away from electrical appliances, metal pipes, get off the phone, stay out of the shower and bathtub and do not use any wired appliance.
• If you are caught outside with a small child, hold the child on your lap up off the ground as you crouch around them.
• Realize that lightning is a powerful force of nature and it demands that you develop a healthy respect and fear of it. Stay indoors during lightning storms!
• If someone has been struck by lightning, provide first-aid immediately. It is perfectly safe to touch someone who has been struck by lightning—you will not get an electrical shock. Call 911 immediately and begin CPR or use a defibrillator if available.
• Invest in a lightning protection system for your home and or business. A building with a properly installed lightning protection system is a smart investment as it provides proven protection for your family, home and values. It is an important safety investment in areas prone to lightning.

Look to Gordon Insurance for more risk management resources!

Related articles

• Six lightning safety tips that could save your life (scoutingmagazine.org)
• LPI and NFPA Partner to Reduce Risks from Lightning (prnewswire.com)
• Calculating the Distance to Lightning Strikes (brokensecrets.com)

Image Courtesy of Stock.xchng

Although motorcycles are insured on a Personal Auto policy, there are key differences between insuring a car and a motorcycle.  Costs are usually lower on motorcycles; one reason is that these are not normally vehicles driven year-round. Another difference from a car is that you may drive a motorcycle on a permit without another licensed operator.  The main factors involved in getting to motorcycle premiums are: years licensed/permitted; participation in a motorcycle driver training course; the value of the motorcycle; engine size (cc’s); driver experience (step); the town it’s garaged in; and the coverage you choose.

A key issue with motorcycle coverage is the exclusion of Personal Injury Protection (PIP) benefits for operators and passengers.  This coverage will not pay for injuries incurred while riding a motorcycle but it will pay for anyone struck by the motorcycle; PIP also pays for injuries incurred by the motorcycle owner if struck as a pedestrian by a vehicle that does not have MA compulsory insurance.  To buy back coverage for you (the operator) and your guests, medical payments (Part 6) is the way.  The minimum amount that can be purchased is $500 and the maximum allowed is $50,000; the $50,000 amount limit may not be available from all carriers. For the official document, visit www.agordon.com/motorcycles

Under normal circumstances, most health carriers exclude coverage for the first $2,000 for injuries incurred as the result of an auto or motorcycle accident.  The Medical Payments  above can pay the first $2000, then the medical provider pays according to the individual health plan.  Any balance can be paid with this Medical Payments coverage up to the amount chosen on the policy (if $5000 in coverage purchased, you would have a balance of $3000 that could be paid for things like deductibles, co-payments and those kinds of gaps.

As you can see, the difference between coverage for injuries when riding an auto as compared to a motorcycle can be significant; not something to discover this after the fact.   Please consult the experts at Gordon Insurance at www.agordon.com, as injuries resulting from a motorcycle accident can be costly.