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Category: Safety Tips

Auto Accidents with Uninsured Drivers

Posted on by Ownby-Client-Login

Data indicates that more than 23% of Tennessee drivers are uninsured. That means that if you have an auto accident in Tennessee, there is a decent chance the other driver won’t have insurance. Will your policy cover the damage to your vehicle? What about potential medical bills or time out of work? What if you need a rental car? Let’s look at some of the scenarios that may play out.

What is Your Coverage?
Obviously, you’d expect in an accident with an insured driver that if they’re at fault – their insurance will pay. But if they don’t have insurance, who pays? If you have comprehensive and collision coverage, your insurance company will likely pay for the damage to your vehicle under the uninsured motorist provisions of your policy. But how much can be covered will depend on the limits of your policy – and you’ll still have to pay a deductible. If you only have collision coverage, you may not be covered in the case of an accident with an uninsured motorist unless you’ve purchased Uninsured Motorist (UM) coverage. In this case, you will have a Collision Deductible Waiver (CDW) listed on your policy.

Uninsured and Underinsured Motorist Coverage
Tennessee does not require UM Coverage, but you can typically purchase it for your policy if it’s not already included. If you’d like additional coverage, a Personal Umbrella Policy will typically add more coverage for this “over” your auto policy. And while UM pays for property damage, Underinsured motorist coverage (UIM) pays medical bills for you and your passengers when a driver without enough liability coverage causes an accident. In the case of a driver with minimum insurance limits not being able to fully pay for injuries they cause to you, UIM coverage can provide additional reimbursement.

Impact of UM Claims on Your Insurance
Does having your insurance company pay a UM claim cause your rate to go up? It is possible, maybe even likely. A national study by the Consumer Federation of America found that insurers raise rates by an average of 9.32% after a no-fault accident resulting in an UM claim.

What to Do if You Have an Accident with an Uninsured Motorist
If you do find yourself in an accident with an uninsured motorist, make sure you take the following steps:

  • Call the Police
  • Exchange Contact Info
  • Don’t Accept or Agree to Any Payment
  • Take Photos
  • Gather Any Details You Can

Not sure about what your current policy would cover in this situation? Let us help you figure it out and determine what’s best for your coverage needs. Call 865.453.1414 and let’s discuss it.

Log Cabin Risks That Impact Rate

Posted on by Ownby-Client-Login

They’re beautiful to look at and often fit right in with the natural landscape that surrounds them. But did you know that log cabins have some very specific risks when it comes to insurance? You’ll still find many of the factors that impact a non-log home’s insurance pricing, but here are some other factors you may not have realized impact log cabin insurance:

Properties of Wood
The wood used in construction of your log home is a factor that insurance underwriters take into account. Using larger logs (thicker than 8 inches in diameter) actually reduces your risk, as they are more resistant to wind, fire, and other damage. However, their replacement cost is higher. The wood’s resistance to fire is actually measured by a “fire resistance rating”, which actually estimates, “the period of time a building element, component or assembly maintains the ability to confine a fire, continues to perform a given structural function, or both…”

Damage and Protection of Wood
Speaking of the wood, there are obviously some traits about the material that make it more susceptible to certain kinds of damage. One of the most obvious is damage from wood-destroying insects and birds, including termites, carpenter bees, woodpeckers, and more. Typically, homeowners insurance will not cover insect or pest damage. Many people don’t find this out until they have a claim – often an expensive one – that gets denied. In addition, caring for the wood on your log home is important, as rotting wood is often excluded and “lack of homeowner maintenance” can cause claims to be denied. Staining and sealing the wood on your log cabin on a regular basis is a key piece of that maintenance.

Foundation
Log cabins have various foundation types, from concrete slabs to strips to pads (or tiers). The reason this matters is because of the potential for subsidence (gradual caving in or sinking). The sturdier your foundation, the less risk will be factored into your cost for insurance.

Roofing Material
Although many log homes now use asphalt shingle or even metal roof materials, some people like the look of a more traditional wood shingle. Unfortunately, these materials may be more susceptible to risks like fire, wind, and water damage. This will result in higher insurance rates.

What other factors will your log home encounter in the insurance underwriting process? Contact us at 865.453.1414 and we’ll discuss your specific risks and how you can find the best policy for your property.

Vacant Versus Vacation Rental – Why it Matters

Posted on by Ownby-Client-Login

Having a Homeowners insurance policy is crucial when you own a home, but what if you don’t live in the home? Homes that are left vacant for 30-60 days or more may be considered as “vacant” by the standards of your policy and may leave you with coverage gaps. Here are a few situations to consider for your properties’ insurance coverages:

Unoccupied Homes
Having a property that is completely unoccupied or rarely occupied can increase risks. Small problems that would normally be noticed by those on the property (e.g. leaks, non-working devices, etc.) can go for days or weeks without attention. These can lead to big issues, and that is why a standard homeowners policy is unlikely to provide coverage. In addition, you may have liability for accidents that occur on the unmonitored property. Not to mention, standard perils like fire, wind, and hail may occur without immediate attention.

Vacation Rentals
Properties being used as vacation rentals are likely monitored more frequently than unoccupied homes. However, they still likely have periods of being unoccupied, and they also have larger liability risks with various guests using the property. Regular homeowners policies generally exclude “business activities” like earning rental income. Have a homeowners policy with a “rental rider” or other similar endorsement? Make sure the policy covers you for the amount of times you’ll be renting. More frequent rentals are often excluded by the language in these policy additions.

Determine or Estimate Total Use
Try to determine or estimate the total use of your property for the year, whether it be unoccupied for a certain amount of time, rented for a certain amount of time, and/or owner-occupied for a certain amount of time. This will give you the information to discuss with an insurance agent so that they can help you determine the coverages you will need to adequately protect your property. Otherwise, a claim scenario may leave you with an exclusion you weren’t aware you had.

Don’t let the wrong insurance leave you with a vacancy on coverage. Contact us at 865.453.1414 to discuss the right coverages for your property.

A Holiday Disaster Strikes – Would You Be Covered?

Posted on by Ownby-Client-Login

The Holidays are a great time of year, and it’s always fun to spend time with friends and family. We’ve all been to a Holiday party, and maybe even hosted one before. But let’s say the party you host this year ends in disaster. Everyone is having a good time, but then one of guests has too much to drink. On their way driving home, they cause an accident and are also charged with a DUI. They then sue you, claiming they were “overserved” at your party. The victim of the accident also sues you, and things are not looking good. Would you have any coverage from your current insurance policies?

Your car wasn’t involved, but the event did take place at your home. Your homeowners insurance will generally include some liability coverage – but the limits are often $500,000 or less. They may even be as low as $100,000. With lawsuits that could include medical bills, disability, and more, even $500,000 may leave you well short. But there is a way to increase your liability coverage and protect your assets outside of your home and auto coverage – a personal umbrella policy.

Personal umbrella policies, also known as PUPs, can provide protection over your home and auto policies. And often, an additional $1 million in coverage may cost you just a few hundred dollars per year. While these policies are generally written by the same insurance company that covers your home and auto, there are “standalone” policies available that can be written over different companies.

If your total assets (home, vehicles, boat, checking, savings, investments, etc.) are over $1 million, you need a policy(ies) that cover those assets. Higher limit PUPs are available as well, and you should talk to your insurance agent and financial advisor and be sure that you have the coverage you need in place.

Need help with an insurance review? Give us a call at 865.453.1414 and we’ll help you start the process!

*Coverage and claims payments are always subject to the language in your insurance policy. Be sure you discuss it with your agent.

How to Inform Your Kids About Fire Safety

Posted on by Ownby Insurance Service

Letting your little ones know the importance of being safe when a fire breaks out is imperative but can also be daunting. Such a serious subject can either be too much for them to handle, or it might go right over their heads. So how do you discuss the subject with them the right way? While there is no one solution, here are some tips to make the situation a little easier.

When Is the Right Time?

The first question you are probably asking yourself is when exactly should you inform your kids about the dangers of fire. Our suggestion is to have this discussion when they are old enough to understand that there are right and wrong ways to react in certain situations. Typically, this is when they enter the curious phase where they begin to ask questions in order to understand the world around them. As they grow older and more mature, you can still teach them about the hazards, such as when they begin to cook their own food. At this point they will already have an understanding of what causes fires, but they will need to learn how to extinguish them. From there, they can pass along the information to younger ones themselves.

Identify the Hazards Together

Go through your home with your child to point out all the areas and items that are harmful enough to cause a fire. Even if they do not understand the function of the item, they at least need to know that in certain situations, it can cause a fire. While we don’t suggest going into enough detail to seriously scare the child, we do suggest letting them know there can be serious consequences when mishandling the product/item. The goal is to get them to avoid items like:

  • Aerosol cans
  • Candles
  • Electrical cords
  • Lamps
  • Irons
  • Christmas tree lights
  • And more

Teach Them How to React

Once you have successfully pointed out all or the majority of the hazardous objects, inform the child what they should do if for some reason there is a fire. When something like an item of their clothing is on fire, you should teach them the “stop, drop, and roll” method. Do this demonstration with them a couple of times until they get the hang of it and can perform the movements themselves. Remind them to cover their face and mouth when doing this action.

Get Creative

Since a child’s attention span is short, try to switch it up by turning the lesson into a fun game they will want to be a part of. You can do this by having a fire drill every month with different scenarios, even if they are outrageous scenarios, and have a designated area away from your house they can go to in order to remain safe. Get creative with every scenario so that it is not too serious or overwhelming for the child, but enough to where they are truly prepared for what might happen.

Help Them Understand the Importance of 911

With any emergency, you will have to call the authorities. Now is a good time to let your child know about this lifeline, and even show them how to call 911 themselves. Stress to them that this is only for emergencies and should not be dialed just for fun.

As stated earlier, once small children have learned proper fire safety procedures, they can pass it on to others when they get older. This will give you peace of mind when it comes time for you to leave your kids at home by themselves someday. If your home is not insured against fire, get in touch with one of our agents as soon as possible! We can find the right plan for you.