Do You Need an Umbrella Insurance Policy? The Answer is Probably Yes

If you’re hit with a lawsuit, your auto or homeowner’s insurance may not fully cover you. Why?

Do you have a dog? How about a swimming pool or a trampoline? Do you have a lengthy commute?

If you responded yes to any of those prompts, you have an above-average risk of being sued. You are also more vulnerable if you have teen drivers at home, own numerous residences, hire domestic employees, are active on social media, coach a youth sports team or assist on a nonprofit council.

If you’re sued and deemed at fault for personal injury to others, your homeowners and auto insurance may not completely cover your liability. In these instances, the question, “Do I need an umbrella insurance policy,” becomes an easy one to answer.

If you get hit with a judgment, your home or auto policy will pay up to the limits of your liability coverage. If your insurance can’t cover the bill, your future profits, home, and other assets could be on the line for the difference. You can protect yourself with an umbrella policy, which attaches another layer of liability protection.

What is umbrella insurance?

An umbrella insurance policy normally covers similar items as home and auto policies, plus a few extras, including lawsuits that result from driving abroad, working rented watercraft, or from alleged libel, slander, or defamation of character.

Before a majority of insurers will sell you an umbrella policy, you need to buy your homeowners or auto policy from them and carry a minimum amount of liability coverage—typically $300,000 on your homeowner’s policy and, on your auto insurance, $250,000 for physical injury to one person and $500,000 per accident.

When you bundle your insurance with a single carrier, your coverage is less inclined to fall through the cracks if the specifications of the umbrella policy change. And if you get sued, you will have one set of defense lawyers for the whole case. Contrarily, agents recommend you to buy the umbrella policy from your auto insurer because most extensive lawsuits involve auto accidents.

If your current home or auto, the insurer refuses to sell you their umbrella policy—because your dog’s breed is reputed to have a bad claims history, for instance, or your family has had several fender benders—ask a Daigle & Travers Insurance agent to shop around for you with one of our stand-alone umbrella insurance carriers.

As a trusted advisor, Daigle & Travers Insurance understands the importance to create awareness about the impact of liability protection.  Reach out to a member of the D&T team to start a conversation, this could mean the difference between experiencing a major financial loss or the peace of mind knowing that they are protected should an event occur.

Please give us a at 203-655-6974 or at info@dt-ins.com.

 

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Cyber Risk Questions Every Business Owner Should Think About and Why Cyber Liability Insurance is so Important

Cyber Risk Questions Every Business Owner Should Think About and Why Cyber Liability Insurance is so Important

When a data breach occurs, the damages can be significant, often resulting in lawsuits, fines, and serious financial losses. Cyber exposures impact businesses of all kinds, regardless of their size, area of focus, industry, or status as a private or public entity.

In 2019, Yahoo reported that 205,280 organizations submitted reports of ransomware attacks. This is a 41% over 2018, with the average claim ranging between $84,000-$190,000 per attack.

https://www.yahoo.com/news/ransomware-attacks-grow-crippling-cities-130120380.html

Based on the above statistics, below are some questions company management teams should consider.

1. Does your company use technology to prevent data breach attacks?

Every company needs to have robust cybersecurity tools and anti-virus systems in place. These systems act as the first line of defense for detecting and preventing potentially debilitating breaches. These preventive measures must be reviewed regularly, as cyber threats can evolve quickly.

2. Does your company have a comprehensive cybersecurity program?

Companies need to create comprehensive data privacy and cybersecurity programs for Cyber Risk Questions. These programs help organizations build a framework for detecting threats, remain informed on emerging risks, and establish a cyber response plan.

3. Has your company’s management team identified a member to be responsible for organizational cybersecurity preparedness?

Organizations that fail to create cyber-specific leadership roles could end up paying more for a data breach than organizations that do. In the event of a cyber incident, fast response and clear guidance are needed to contain the breach and limit damages.

4. Does the organization have a breach response plan in place?

Even the most secure organizations can be impacted by a data breach. Additionally, it can often take days or even months for a company to notice its data has been compromised. Having a breach response plan allows organizations to notify impacted customers and partners quickly and efficiently, limiting financial and reputational damage.

5. Has your management team provided adequate employee training to ensure sensitive data is handled correctly?

While employees can be a company’s greatest asset, they also present one of their biggest cyber liabilities. Hackers commonly exploit employees through spear-phishing and similar scams. When this happens, employees can unknowingly give criminals access to their employer’s entire system. To ensure data security, organizations must provide thorough employee training.

6. Has your management team taken the appropriate steps to reduce cyber risks when working with third parties?

Working alongside third-party vendors is common for many businesses. However, when an organization entrusts its data to an outside source, they risk compromisation.

7. Does your organization have a system in place for staying informed on cyber trends, federal, state, industry, and international data security regulations?

Cyber-related legislation can change with little warning, often having a sprawling impact on the way organizations handle business. If organizations do not stay educated on new security regulations, serious fines and other penalties may follow up.

Has your organization purchased or considered purchasing cyber liability insurance?

Cyber liability insurance is specifically designed to address the risks that come with using modern technology—risks that other types of business liability coverage simply won’t cover.

Cyber Risk Questions

The level of coverage a business needs is based on individual operations and can vary depending on the range of exposure. Company management teams need to conduct a cyber risk assessment and identify potential gaps. From there, Daigle & Travers Insurance will customize a policy that accommodates specific needs.

Managing personnel and technology can be a challenge, particularly for organizations that don’t know where to start. When it comes to cyber threats, organizations need to thoroughly review risk prevention tactics. Cyber exposure impacts organizations from top to bottom and all team members play a role in maintaining a secure environment.

Get the coverage you need.

Daigle and Travers Insurance is based in beautiful Darien, nestled between Stamford, Norwalk, and New Canaan. We also serve Fairfield County, Greenwich, Weston, Westport, Wilton, Ridgefield, Redding, Easton, Fairfield, Southport, Trumbull, and parts of Westchester County and Long Island.

Here at Daigle & Travers Insurance, we will provide you with the right coverage to make sure your investments are safe during a disaster. When partnering with us, we will give you all the necessary information and options you need to make the best choice of insurance company and policy. Give us a call today at (203)-655-6974.

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Jewelry Insurance

Jewelry Insurance

If you’re like many of us, you own jewelry pieces that have sentimental value – an engagement ring, pair of earrings, or a family heirloom watch – and often bring these items with you when you travel. If you’re planning to travel soon, there are ways you can ensure your jewelry collection is safe while you’re away from home. Here are a few recommendations from our Jewelry Specialists:

Before you travel

• Make sure you have quality coverage. Check with your insurance agent to guarantee your jewelry is protected no matter where you go – inside or outside the country. It’s also important to have a current appraisal on file, in case your jewelry is lost, stolen, or broken.
• Document which items you plan to bring on your travels. If you haven’t already, create a jewelry inventory that includes descriptions and photos of each piece of jewelry, copies of current appraisals, GIA certificates, and invoices. Recording which pieces, you bring will help you keep your collection in order and will provide proof of ownership in case of a loss.
• Check for wear and tear. Before you pack your jewelry, assess to make sure each piece fits correctly, and that there are no loose stones, broken clasps, or damaged prongs. If you find any disfigurements, take your jewelry to a professional for repairs.
• Find the right carrying case. Jewelers can often suggest the best type of carrying case for protecting your jewelry. You may want a personalized case with interior locks made for travel, and a nondescript box to help conceal the contents.
• Isolate jewelry pieces with a soft cloth. Use fabric pearl folders to protect necklaces, pearls, and other jewelry from scratches and abrasions.
• Bring only what you need. Only take the jewelry you will wear while traveling. If you’re not sure you will wear an item, don’t risk it getting stolen or broken on the trip.

While you’re traveling

• Keep items close. While traveling, keep jewelry nearby and well-protected at all times. Always pack your jewelry in a carry-on bag and never leave it unattended.
• Keep in mind that you may want to wear some jewelry while traveling. Note that you may have to remove large pieces at security checks, which makes it easier for them to get lost or become damaged.
• Consider hiring a shipper. If you’d prefer not to travel with your jewelry but want to wear it at your destination, you can hire a shipper that specializes in transporting jewelry and valuable items. Ensure that proper security

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How Does the NFIP Define A Flood?

How Does the NFIP Define A Flood?

Do you live in a coastal community?

Many people move to the Tri-State area because they want to live by the water, when moving to the coast, it creates sometime unexpected new insurance concerns.  Not only to many residents have to purchase homeowner’s insurance, but they need to purchase flood insurance.  A homeowner’s insurance policy will exclude any flood related claims.

At Daigle & Travers Insurance, we pride ourselves in educating our clients on their insurance needs.  Below is information from the National Flood Insurance Program, this data will you as a consumer understand what is and isn’t covered on a standard NFIP Flood Insurance policy.  Luckily in Connecticut and New York there are now Private Flood Insurance options that may better suit your needs.  Daigle and Travers represent 5 private flood insurance carriers.

How Does the NFIP Define a Flood?

Your NFIP food insurance policy covers direct physical losses caused by a food. In simple terms, a food is an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties. For example, damage caused by a sewer backup is covered if the backup is a direct result of flooding. If the sewer backup is not caused directly by flooding, the damage is not covered.

Examples of Flooding

1. Overflow: For example, during a tropical storm or hurricane, storm surge can cause an overflow of inland or tidal waters.
2. Runoff: When an area without sufficient drainage receives heavy rainfall in a short period of time.
3. Mudflow: For example, following a wildfire, heavy or sustained rainfall accumulates on the ground and forms a river of mud down a hillside.
4. Erosion: Along lakes, severe storms can produce waves and cause shoreline erosion.

What Does My Flood Insurance Cover?

Building Coverage

• The insured building and its foundation •The electrical and plumbing systems •Central air-conditioning equipment, furnaces, and water heaters •Refrigerators, cooking stoves, and built-in appliances such as dishwashers •Permanently installed carpeting over an unfinished floor •Permanently installed paneling, wallboard, bookcases, and cabinets •Window blinds •Debris removal

Areas Below Lowest Elevated Floor

• Foundation walls, anchorage systems, and staircases attached to the building •Central air conditioner •Cisterns and the water in them •Electrical outlets, switches, and circuit-breaker boxes •Fuel tanks and the fuel in them, solar energy equipment, and well water tanks and pumps •Furnaces, water heaters, heat pumps, and sump pumps

The following items are covered in basements only:

• Dry wall for walls and ceilings •Non-flammable insulation

What is covered for contents on a flood insurance policy? Contents Coverage (must be purchased separately)

 

• Personal belongings such as clothing, furniture, and electronic equipment •Curtains •Portable and window air conditioners •Portable microwave ovens and portable dishwashers •Car pets not included in building coverage •Clothes washers and dryers •Food freezers and the food in them •Certain valuable items such as original artwork and furs (up to $2,500)

What is covered for contents if the contents in located below a positively elevated floor?

Washers and dryers •Food freezers and the food in them (but not refrigerators) •Portable and window air conditioners

What is the area below lowest elevated floor?

These areas include basements, crawlspaces under an elevated building, enclosed areas beneath buildings elevated on full-story foundation walls (sometimes referred to as “walkout basements”), and enclosed areas under other types of elevated buildings.

Coverage tip: If you keep a couch, computer, and television in your basement and the basement foods, your food policy does not provide any coverage for those items. Those same items would be covered if above the lowest elevated floor.

 

What Is Not Covered by My Flood Insurance?

 

Examples of uncovered or excluded property

• Damage caused by moisture, mildew, or mold that could have been avoided by the property owner. • Living expenses such as temporary housing. • Most self-propelled vehicles such as cars, including their parts. • Currency, precious metals, and valuable papers such as stock certificates. • Property and belongings outside of a building such as trees, plants, shrubs, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs, and swimming pools. • Financial losses caused by business interruption or loss of use of insured property. • Any damage caused by seepage, or any sub-surface water flow, a condition of flow of water beneath the earth’s surface.

Before and After a Flood

Anywhere it can rain, it can food. That’s why it’s important to take steps before, during, and after a food to mitigate losses.

Take Steps to Reduce Your Losses

Your food insurance policy will pay up to $1,000 for loss avoidance measures, like sandbags, supplies, and labor to assist in protecting your property from the threat of food. Visit FloodSmart.gov to learn more about protecting your home and belongings before a food event.

Preparing to Start a Claim

To start a claim, report your loss immediately to your insurance agent or insurance company and ask them about advance payments. Then prepare for your food adjuster by doing the following:

1. Keep receipts in a safe, dry location to verify losses.
2. Separate damaged and undamaged property.
3. Take pictures of damaged property before disposing.

Let Daigle & Travers Insurance review your coverage. We have three convenient locations in Connecticut: Wilton, Darien, and Westport. One of our many experienced insurance professionals will be able to review your policies. We can be reached at 203-655-6974 or at info@dt-ins.com.

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Case Study: Family with Direct Insurance Carrier

Case Study: Successful family with a direct insurance carrier.

CLIENT “A”

Client “A” is a highly successful, professional, two-income family of four who initially had a direct insurance carrier. Both between 45-50 years old. He a surgeon and she an attorney. Their approximate net worth was in excess of $10M and a remaining lifetime earning capability in excess of another $10M.  They owned multiple homes and some vacant land. They owned a modest amount of fine art, jewelry, watches and a collection of antique scales.

“CLIENT A” INSURABLES:

• A multi-property client with a primary co-op in New York City, a seasonal home in upstate New York, and a summer home in the Hamptons. The client also owns several tracts of vacant land.
• Two primary use vehicles, three collector cars & two drivers.
• Insurable Collections: $100,000 of fine art, $50,000 collection of vintage scales and $150,000 in jewelry & watches.
• A 65’ yacht

 

THE DIRECT WRITER VS. INDEPENDENT AGENT:

“Client A” felt strongly that they both understood insurance and were thus adequately covered for the daily risks they face. They did their internet research and they were confident that they had the best possible price.

The issue we commonly encounter when dealing with such families is the misconception that insurance is a commodity. To them, price is the predominant difference in carriers. The fear of “paying too much” dominates their thoughts when discussing insurance with friends and on social media. Captive insurance agents (who sell a single product line) feed into the misconception because their products tend to be of lesser quality. Untrained independent agents often fall into the same trap.

In reality, a good Independent Agent is a tremendous asset and trusted advisor for a client. The Independent agent provides valuable services such as risk identification & analysis, carrier guidance, claims assistance, insurability monitoring, and other services.  Agents for direct writers are trained to work in volume and process through their calls quickly with little room for any guidance.  Direct writers often leave their customers with a false sense of security.

In this case, the client’s CPA referred them to Daigle & Travers to have a proper coverage review completed to ensure there were no gaps in their property and liability insurance coverage.

 

FACT-FINDING PROCESS:

Our process began with an initial client fact-finding phone call. The purpose of this call is to established a baseline of concerns, needs, and risks common to the individual or family. We need to identify all of the individuals, entities, risks and assets involved with the account.

After the initial fact-finding meeting we also performed our own internet due diligence of the client to get an understanding of how you may be perceived online. This assists our ability to identify additional risks, determine lifestyle and have an understanding of what the general public can easily find online pertaining to the client’s occupation, assets and general wealth.

We also require copies of the current insurance portfolio so we can assess the current program relative to our fact-finding, review of plan cost-effectiveness, and for comparison purposes. If a plan meets our standards, we leave it “as is” and provide applicable recommendations as necessary. In this case, there were a number of issues requiring attention. When working with a direct writer there is almost always coverage issues to be addressed.

 

THE RESULTS

We determined the clients New York City co-op policy offered a dangerously low structure coverage (Additions & Alterations) and even less personal property coverage. After the initial review, it was discovered that they were underinsured in excess of one million dollars in total property coverage. In the same conversation, we determined that clients lacked adequate coverage for their musical instruments, prized artwork, and jewelry. All of which were easily correctable

As we went deeper in the client’s background it was discovered that they owned multiple homes and vacant land as well. Their primary co-op policy would not extend liability to all of the vacant property and their current umbrella policy was legally incapable of extending liability to all of the required locations which created uncovered risk gaps.

This client did understand the need for liability protection and had purchased an (overpriced) umbrella policy through this same direct writer for $10M in coverage. Unfortunately, because of the issues on their underlying primary coverage it unknowingly left a sizable gap in coverage between the underlying liability coverage the umbrella the current agent failed to identify. Additionally, we determined that this client required a larger umbrella limit as well.

After a thorough review of all of the existing coverage and our own additional due diligence, we were able to go to the market to multiple appropriate insurance carriers and craft an insurance package with one insurance carrier that would eliminate all of the discovered gaps in coverage, correct the property limits and offer high limits on the umbrella over the 10M.

The client was very concerned about coverage and was very appreciative of the hard work we put into correcting the numerous errors that existed. They were thankful for the helpful advice we were able to provide and said, “We had no idea we didn’t have the proper coverage.” In this particular case, even with all of the corrections in coverage, we successfully provided a cost-effective program that netted an overall savings.

 

Let Daigle & Travers Insurance review your coverage. We have three convenient locations in Connecticut: Wilton, Darien, and Westport. One of our many experienced insurance professionals will be able to review your policies. We can be reached at 203-655-6974 or at info@dt-ins.com.

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Designated Flood Zones and Homes For Sale

My client is ready to make an offer on a new home, but do I know the home’s designated flood zone?

Great question! Homebuyers need to take into consideration the accurate flood zone

of a home when making their offer. Because it is so important, real estate professionals should confirm which designated flood zone the house truly is in before listing the property.

In 2012 Super Storm Sandy hit the East Coast. It wreaked havoc along the coastline and quickly deluged FEMA. Subsequently, in 2013 many of the coastal flood insurance rate maps were modified based on Sandy’s impact. Properties that once sat in low impact, “X” flood zones suddenly became higher risk “AE” flood zones. Even worse, existing “AE” flood zones became “V” flood zones. The “V” zone is similar to the “A” Flood zone in terms of risk, however “V” zones account for the high likelihood of tidal surge impact on a home as well.

 

Designated Flood Zones Change. Why is this important?

Recently we were referred to a family who had made an offer on a waterfront home in Fairfield County. They made the offer on the property with the assumption that it sat in an “AE” flood zone. The documentation that they received from the seller, which included a flood elevation certificate, the seller’s current flood insurance declaration page, and GIS map provided by the town, all of which showed the home in an “AE” flood zone. Neither the realtor nor the seller intentionally misled their potential home buyers. It was their assumption, based on the information in hand, that the flood zone was accurate.

 

In the course of our standard due diligence processes working with this home buyer, we used the information provided so we could offer rate comparisons. As a part of this, we ran a flood zone determination and discovered that in 2013 after Super Storm Sandy, the flood zone had changed from an “AE” flood zone to a “V” flood zone.

 

The cost of not doing due diligence.

As a home buyer, the information provided supports the offer. The buyer based their offer on the home being negatively-elevated in an “AE” flood zone. The cost of the policy is roughly $3,000 with FEMA/NFIP. In the “V” flood zone, the same flood insurance quote would now jump to $8,000 annually.

 

The seller could transfer the current flood policy to the buyer via FEMA’s assignment process, but the buyer concerns remain: What happens if the flood policy cancels? What if there is a claim on the home? Can FEMA adjust the rates to the “V” zone? Will the mortgage company even accept a flood policy in an incorrect flood zone? How does a change in flood zone impact the value of my house? How hard will it be to sell my home if it is classified in a “V” zone?

 

What happens if there is a flood claim on a home with a misclassified flood zone?

It is important to note that FEMA (NFIP) re-underwrites flood policies at the time of loss. They have the right to review the particulars of the property and then adjust the property coverage based on the premium paid for those particulars.

 

For example, if the homeowner is paying flood insurance rates on being in an “AE” zone of $3,000 ($250,000 of building coverage and $100,000 of contents coverage), but the home is later determined to be in a “V” flood zone at the time of loss, the NFIP will adjust the property coverage of the policy to reflect the premium paid. In other words, they will give you coverage based on the $3,000 spent on a policy that should have been $8,000 premium. Coverage effectively is reduced by more than 50%. Additionally, this causes another problem in a loss scenario worth considering. Underinsuring your dwelling coverage on a flood policy below 100% of the home’s replacement cost (or the $250,000 maximum flood dwelling limit) will result in the coverage changing from “Replacement Cost” to “Actual Cash Value” which is replacement cost minus depreciation.

 

What is the point, and why do real estate professionals need to think about this?

If you are a listing agent, a simple phone call to Daigle & Travers Insurance can help keep your closing alive. Before you list a client’s home, we can confirm the current flood zone and even provide rates. Additionally, we can give you an indication of past insurance claims that could impact the desire to purchase or the ability to obtain insurance.

You don’t want to get to an accepted offer and find out that the buyer is going to renegotiate the home’s purchase price based on some newly uncovered information or worse, they make a fear-driven decision and walk away altogether.

 

Lastly, purchasing homeowner’s insurance for a “FEMA noncompliant” home in a flood zone can be difficult. The buyer’s options for homeowner’s insurance are limited. However, we have carefully curated our carrier offerings to ensure we can provide multiple great options for these buyers. We represent over 30 property insurance markets, several NFIP/FEMA flood carriers, and numerous private flood markets as well.

 

Partnering with Daigle & Travers Insurance

Our goal is to be a trusted advisor to our clients and partner within the real estate community. We can help you help your client get to the closing without avoidable hiccups.

Let us help you. You close the deal, we write the insurance.

For more information reach out to Daigle & Travers Insurance. We have three convenient locations in Connecticut: Wilton, Darien, and Westport. One of our many experienced insurance professionals will be able to guide you through the insurance process.

 

You can contact us at 203-655-6974 or inbox@dt-ins.com.

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Under Insured Motorist and Cyclists

Are you a cyclist?

Have you thought about the repercussions of being hit by an under insured driver?

Do you understand uninsured/under insured motorist insurance coverage?

No one wants to discuss death or serious injury. Unfortunately, if you ride a bike, you need to plan for a potential disaster.

Distracted Drivers

The reality is that as cautious as we think we are as cyclists; cyclists are always at risk due to someone else’s negligence. Even the most defensive-minded cyclist can still fall victim. Drivers are more distracted than ever due to cell phone usage, texting and even speaking on the phone via Bluetooth.

Tweaking your uninsured motorist insurance coverage may be the most important thing cyclists can do to protect themselves. The driver that hits you may be carrying only the minimum amount of liability insurance. Depending on which state you are biking in, state minimums for liability can range from $10K to $25K per accident. This limit will barely cover the ambulance ride and emergency room visit.

Hit-and-Runs

Most auto insurance carriers protect against uninsured and underinsured motorists, even if you’re on a bicycle or walking. Under insured motorist insurance also covers hit-and-run crashes, which are unfortunately all too common.

Who will cover the damages if you are hit by a driver that leaves the scene? If you have medical insurance, that will help to cover some of the expenses associated with your accident though it can be more complicated, as most policies don’t allow for upgrades. Emergency medical transportation is often subject to an out of network deductible which the cyclist may not be financially prepared for.

Working With a Local Agent

When purchasing auto insurance, yes you can go to a direct insurance carrier such as Geico, but do they understand your personal circumstances and hobbies? When working with a local insurance broker, such as Daigle & Travers Insurance, we can help customize an auto insurance plan to protect you.  Uninsured motorist coverage is the one coverage you can purchase on your auto policy to protect you as an individual. With most insurance carriers you can purchase $500,000 to a million in uninsured driver coverage. In some cases, your insurance carrier can add excess coverage to your personal umbrella policy.

 

For more information, reach out to Daigle & Travers Insurance. We have three convenient locations in Connecticut: Wilton, Darien, and Westport. One of our many experienced insurance professionals will be able to guide you through the insurance process. Reach out to us at 203-655-6974 or at info@dt-ins.com.

 

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