The recent horrific events in Boston have brought about much talk of Terrorism Insurance, so we wanted to explain how it works:

The Terrorism Risk Insurance Act (TRIA) was signed into law in November 2002 to create a federal “backstop” for insurance claims related to acts of terrorism, providing a transparent system of shared public and private compensation for insured losses resulting from acts of terrorism. Prior to 9/11, terrorism was included in most commercial insurance policies in the United States. After 9/11, many insurers decided to exclude terrorism from their contracts.

Under TRIA, the attack must be certified as an “act of terrorism”. Part of the definition for a terrorist act in the federal law states that the attack must have been “committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion.” The definition requires that the attack be committed by foreign interests; an attack like the Oklahoma City bombing would not be covered by TRIA because it would be classified as “domestic terrorism”.

Basically, this act provides insurance coverage for terrorist acts; if terrorism insurance is not purchased and the act is deemed terrorism, the claim will be denied under the business’ policies. If officials don’t certify the bombings as a terrorist act, the business’ standard policy would apply.

Whether the Marathon bombings are deemed an “Act of Terrorism” will have significant financial implications for area businesses. Some businesses won’t have insurance coverage for building damage or lost income after their businesses were closed for over a week. For businesses that were affects by the Marathon Bombing, it is recommended that the owners gather documentation, contact their insurance carriers/brokers and retain professionals, such as accountants and attorneys.

If you have questions about TRIA, please call us today: 781-444-3050

Steven Aronson spoke to the ACT Committee of the IIABA at the annual ACORD LOMA Conference at The MGM Grand in Las Vegas. He addressed the crowd on the topic of Change for insurance agencies – how to plan for successful adoption and implementation of change for Independent Insurance Agencies. His successful transformation of Aronson Insurance in Newton and Needham was used as an example. We must try new things. Can’t be afraid to make mistakes. If it’s not broken … break it.

Motorcycle Safety Awareness Month is a national initiative aimed at getting motorists and motorcyclists to “share the road” with each other.” The initiative aims to encourage riders to always wear helmets and other protective gear, never drink alcohol and ride, be properly licensed, get training and purchase the right insurance coverage.

Motorcycles are by their nature far less crashworthy than closed vehicles. They are also less visible to other drivers and pedestrians and less stable than four-wheel vehicles. Operating a motorcycle requires a different combination of physical and mental skills than those used in driving four-wheel vehicles. Motorcyclists and their passengers are more vulnerable to the hazards of weather and road conditions than drivers in closed vehicles.

In 2011 motorcycle fatalities rose 2.1 percent to 4,612 from 4,518 in 2010.In 2010, 55 out of every 100,000 registered motorcycles was involved in a fatal crash, compared with only 9 out of every 100,000 passenger cars, according to the National Highway Traffic Safety Administration (NHTSA). Motorcyclists were about 30 times more likely than passenger car occupants to die in a crash per vehicle mile traveled in 2010 and five times more likely to be injured, according to NHTSA. (Note: statistics on fatal motorcycle crashes are also available from the Insurance Institute for Highway Safety).

If you are in the market for motorcycle insurance, you must carry a minimum amount of liability coverage; this covers bodily injury and property damage that you may cause to other people involved in an accident. It does not cover you or your motorcycle. An additional option within your liability insurance is first-party medical coverage, in the event you want to be reimbursed for bodily injury expenses you incurred while on your motorcycle. You may also be able to purchase coverage for medical bills received from an injured party, ranging from $2,000 to $25,000. Other coverages available to motorcycle owners are: collision (covering damage to your motorcycle); comprehensive (covering damage caused by events other than a collision, such as fire, theft or vandalism); and uninsured/underinsured motorist coverage (covering damages to you and your property caused by another driver who either does not have insurance or whose insurance is inadequate).

Many factors can affect how much you will pay in motorcycle insurance premiums, including:

Driver’s age and driving record
Where the driver lives
Model, style (sports bike vs. cruiser) and age of the motorcycle
Number of miles the motorcycle is driven each year
Where the motorcycle is stored

Call us today for any questions regarding Motorcycle Coverage and remember to drive responsively!

http://www.iii.org/facts_statistics/motorcycle-crashes.html

NO MORE SNOW! By now we’ve seen our fair share of snow, but something we may not be thinking about is what happens when all of the snow melts? Did you know that flooding is the most common natural disaster in the US, yet many homeowners remain unprotected. Melting snow here in New England creates a high flood risks. In fact, as little as two inches of water can cause devastating damage to your home, and most homeowners policies will not cover this.

Homes in low risk areas account for 25% of all flood claims. Homes in a high risk area have a 1 in 4 chance.

Here are some interesting facts:

– Floods and flash floods happen in all 50 states.
– Everyone lives in a flood zone.
– Most homeowners insurance does not cover flood damage.
– Just an inch of water can cause costly damage to your property.
– A car can be carried away by just two feet of floodwater.
– Hurricanes, winter storms and snowmelt are often overlooked causes of flooding.
– Federal disaster assistance is usually a loan that must be paid back with interest. For a $50,000 loan at 4% interest, your monthly payment would be around $240 a month for 30 years. Compare that to $100,000 in flood insurance; which is about $33 a month in premium.
– If you live in a moderate-to-low risk area and are eligible for the Preferred Risk Policy, your flood insurance premium may be as low as $129 a year (around $11 a month).
– It takes 30 days after purchase for a policy to take effect, so it’s important to buy insurance before the floodwaters start to rise.
– In a high-risk area, your home is more than twice as likely to be damaged by flood than by fire.
– Anyone can be financially vulnerable to floods. People outside of high-risk areas file over 20% of NFIP claims and receive one-third of disaster assistance for flooding.
– The average annual U.S. flood losses in the past 10 years (2002-2011) were more than $2.9 billion.
– Since 1978, the National Flood Insurance Program has paid over $36.9 billion for flood insurance claims and related costs (as of 12/31/10).
– Over 5.5 million people currently hold flood insurance policies in more than 21,000 communities across the U.S.

Call us today to find out about flood insurance!

We wanted to share this awesome infographic from Arbella Insurance about Restaurant Pitfalls and where to spot them!  No matter how responsible a restaurant owner you are and how thoroughly trained the staff is, the restaurant biz is complex and accidents happen!  With a kitchen full of staff and a dining room full of guests, it is crucial to be prepared and insure your business in case any one of these unfortunate incidents occurs.

Check them out: http://www.arbella.com/insurance/business-insurance/restaurant-pitfalls-infographic

Here are facts about this weekend’s match-up:

• This is the Patriots 9^th AFC Championship game and second straight against the Baltimore Ravens.  (We beat them 23-20 in last year’s game)
• The Patriots are 5-1 all-time against the Ravens in Foxborough, including 4-1 @ Gillette Stadium.
• The first meeting between these two teams was on October 6, 1996, where the Pats won 46-38.  The 84 total points scored by both teams in that game rank as the second-highest total number of points in a game in Pats history.
• The Patriots have a 7-1 record in AFC Championship Games, including a 4-0 record at home overall and a 3-0 record at Gillette Stadium.
• Brady needs 4 more postseason touchdowns to move Past Joe Montana and Brett Favre for the all-time lead.
• With a win this weekend, the Patriots will advance to their 8^th Super Bowl, matching Dallas and Pittsburgh for the most Super Bowl appearances.
• And if the Pats win this weekend, they will be the 8^th Super Bowl team to return to the Super Bowl after suffering a loss at the Super Bowl the previous year.
• As it stands… the Patriots now have a 14-3 (.824)all time record in home playoff games.  Let’s hope it continues this weekend!

If not, it’s time you do!  CardMunch is a free iPhone app that captures business cards by transcribing the card image to a team of human transcribers at LinkedIn.  You also don’t need a LinkedIn account in order to use CardMunch. As soon as you install the app, just point your phone at a business card, line up and focus the image, and snap a photo…. it’s that easy!

http://www.cardmunch.com/#

What they are, how to avoid them and what to do if you have one

Ice dams in Massachusetts are an ongoing nuisance and cause extensive water damage to homes and structures. Recent record-breaking winters throughout the country have caused damage to tens of thousands of homes as a result of ice damning.

What is it and how does it work:

An ice dam occurs when snow accumulates on the slanted roof of a house with inadequate insulation. Heat conducted through the insufficient insulation and warm air from the attic bypasses warms the roof and melts the snow on those areas of the roof that are above living spaces, but does not melt the snow on roof overhangs.  Meltwater flows down the roof, under the blanket of snow, onto the eave and into the gutter, where colder conditions on the overhang cause it to freeze. Eventually, ice accumulates along the eave and in the gutter. Snow that melts later cannot drain properly through the ice on the eave and in the gutter, resulting in leaks to the roof space resulting in damaged ceilings, walls, roof structure and insulation.

Primary Prevention Measures:

• Insulation – Installing additional insulation on the attic floor will reduce the temperature in the attic. Keep in mind once you reach the area’s optimal R-Value (a measure of the insulating value of a material), a further increase in the amount of insulation will not show an appreciable decrease in heat loss.
• Weather stripping – And/or insulation can also be installed on attic stairways or hatchways and on attic floor-mounted louvers for whole house ventilation fans. Review manufacturer specifications on the fans or recessed lighting fixtures if the additional insulation will adversely affect their performance.
• Ventilation – Without an adequate amount of ventilation, heat will build up despite the amount of insulation.  Ventilation will also remove water vapor that can condense in the attic and result in dry rot and rust.  If the house roof has an overhang, or soffit, vents can be added to these soffit areas. A ridge vent can also be added. This vent is mounted along the length of the peak of the roof. The cold outside air that enters the soffit vents rises along the inside of the roof and exits through the ridge vent. This action cools the roof and removes moisture at the same time.

Frequently Asked Questions (Courtesy of Travelers Insurance: https://www.travelers.com/prepare-prevent/home-property/winter-weather/ice-dams.aspx)

Q. How do I know if there is too much snow and ice on my roof?

A. The answer depends on a number of factors, including the roof type, construction technique, and age and condition of the structure. As a rule of thumb, if there is more than a foot of heavy, wet snow and ice on your roof, you should try to have it removed.

Q. How should I remove the snow and ice that has accumulated from my roof?

A. If you have a flat roof that is easily reached from an interior stairway, you may want to shovel the roof. Remember to put safety first any time you are on a roof, especially one that is covered in snow and ice. If you have any doubt, leave it to the professionals.

If you have a sloped roof, it may be possible to remove the snow and ice using a roof rake, a long-handled tool designed specifically for this purpose. Stand on the ground and pull as much of the snow off the eaves as you can safely reach. It is not necessary to remove all the snow; removing the first three to four feet of snow closest to the gutters will help alleviate these issues.

Q. What if I can’t reach the roof at all?

A. Many homebuilders, landscaping and roofing contractors, and property maintenance companies will remove snow and ice from roofs. Before hiring a contractor, Travelers encourages you to check references. Always be sure your contractor is insured and bonded.

We do not recommend using a ladder in snowy and icy conditions. This can be extremely dangerous and is best left to professionals.

Q. Will my insurance company pay to have snow and ice removed from my roof?

A. Each claim is unique, and coverage and claim decisions always require an expert analysis by a licensed Claim professional. However, property owners are generally responsible for preventive maintenance. Keep in mind that the cost of snow removal is likely to be considerably smaller than the cost of roof damage or interior property damage caused by water leaks.

Q. I already have an ice dam on my roof. What should I do about it?

A. If you can reach the roof safely, try to knock the ice dam off with a roof rake, or cut a channel through the ice to allow standing water to drain. If you cannot reach the roof safely, consider hiring a contractor to remove it.

Another method is to fill a nylon stocking with calcium chloride ice melt and place it vertically across the ice dam so that it melts a channel through the dam. If you try this method, make sure you can safely position the ice melt on your roof, and make sure to use calcium chloride, not rock salt. Rock salt will damage your roof. Also be aware that shrubbery and plantings near the gutter or downspout may be damaged.

Q. I have an ice dam. How can I tell if it has caused damage inside my home?

A. Look for water stains or moisture in the attic or around the tops of exterior walls on the top floor. Just because an ice dam is present does not necessarily mean water has penetrated the roof membrane. However, it is always best to remove ice dams before they have the opportunity to cause damage.

Q. I have giant icicles hanging off my gutters. What should I do?

A. Look carefully at where the ice is. If the icicles are confined to the gutters and there is no water trapped behind them, this does not indicate the presence of an ice dam. However, large icicles can pose a danger to people when they fall off. Try to safely knock the icicles off from the ground, making sure not to stand directly beneath them. If you cannot reach them safely from the ground, consider hiring a contractor to help.

Q. What else can I do to protect my home?

A. An easy way to help snow and ice drain off your roof is to make sure the area around your downspouts is clear. This will make it possible for your gutters to drain when snow does melt. It will also help prevent flooding when the snow and ice melts.

Q. How do I keep this from happening again next year?

A. Using a roof rake to clear the first three to four feet of snow from your roof immediately after each winter storm is an effective approach to preventing ice dams from forming.

Ultimately, the best prevention for ice dams is to eliminate the conditions that make it possible for them to form in the first place. Making sure your attic is well insulated will help prevent the melting-and-freezing cycle that causes ice dams to form.

Also, when replacing a roof, make sure to install a water membrane underneath the shingles. This acts as an extra barrier that helps prevent water from seeping inside the building.

Q. What should I do if there is damage to my home?

A. Call Aronson Insurance: 781.444.3050