Self-driving cars are definitely on the way.  In fact, one transport scholar at the University of Minnesota estimates that by 2030 every car on the road will be driverless.
From a safety standpoint, this could be great news as most accidents are caused by human error. If this factor can be minimized by taking control of the moving vehicle away from the driver, accident rates should tumble.

An accident’s risk is unlikely to be completely removed, though, since events are not totally predictable and automated systems can fail. Also, the transition from hands-off driving to hands-on promises to be tricky.

Additionally, driverless cars are still fraught with several safety questions:

  1. What kind of training will people need to handle these types of vehicles safely?
  2. How well prepared will drivers be to handle emergencies when the technology returns control to the driver?
  3. What are the insurance implications of autonomous vehicles?
  4. Who is ultimately liable in an accident – the manufacturer or the driver?

Many of the questions above will be appropriately answered when the first driverless cars actually hit the road.  But in the meantime, we have gathered some research data and insight on how insurance companies are starting to view this new risk.

Insurance Implications
Except that the number of crashes will be greatly reduced, the insurance aspects of this gradual transformation to driverless carts are still unclear. It will also be interesting to see if the accidents that occur lead to a higher percentage of product liability claims, as claimants blame the manufacturer or suppliers for what went wrong rather than their own behavior.

Liability laws will also have to evolve to ensure autonomous vehicle technology advances are not brought to a halt.

Auto Insurance: Some aspects of insurance will be impacted as autonomous cars become the norm. There will still be a need for liability coverage. Still, over time the coverage could change, as suggested by the 2014 RAND study on autonomous vehicles, as manufacturers and suppliers and possibly even municipalities are called upon to take responsibility for what went wrong.

Coverage for physical damage due to a crash and losses not caused by crashes but by wind, floods, fire, and theft (comprehensive coverage) is less likely to change. Still, it may become cheaper if the potentially higher costs to repair or replace damaged vehicles is more than offset by the lower accident frequency rate.

Underwriting: Initially, many of the traditional underwriting criteria, such as the number and kind of accidents an applicant has had, the miles he or she expects to drive, and where the car is garaged, will still apply, but the make, model, and style of car may assume greater importance. The implications of where a car is garaged and driven might be different if there are areas set aside, such as dedicated lanes, for automated driving.

During the transition to wholly autonomous driving, insurers may rely more on telematics devices, known as “black boxes,” that monitor driver activity.  According to the National Association of Insurance Commissioners, telematics’ use is forecast to grow to up to 20 percent within the next five years.

Liability: As cars become increasingly automated, the onus might be on the manufacturer to prove it was not responsible for what happened in the event of a crash. The liability issue may evolve so that lawsuit concerns do not drive manufacturers and their suppliers out of business.

Repair Costs: While the number of accidents is expected to drop significantly as more crash avoidance features are incorporated into vehicles, the cost of replacing damaged parts is likely to increase because of the complexity of the components. It is not yet clear whether the reduction in the frequency of crashes will reduce the cost of crashes overall.

What to do ahead of time:

  • Hire a licensed electrician to raise electric components (switches, sockets, circuit breakers, and wiring) at least 12 inches above the expected flood levels for your area.
  • Make sure your yard’s grading (slope) directs water away from the building.
  • Have the installation of your furnace, water heater, and other permanent equipment modified so that they are elevated above the expected flood levels for your area.
  • Anchor fuel tanks. An unanchored tank can be torn free by floodwaters, and the broken supply line can cause contamination or if outdoors, can be swept downstream and damage other property.
  • If you have a basement, hire a licensed plumber to install an interior or exterior backflow valve to prevent sewage from backing up into your basement from a flooded sewer system. Check with your building department for permit requirements. Note: this won’t help if floodwaters pour into your basement or house, but it could help in instances where flooding affects the sewage system, but not your house.

What to do when flooding is imminent:

  • Clear drains, gutters, and downspouts of debris.
  • Move furniture and electronics off the floor, particularly in basements and first floor levels.
  • Roll up area rugs, where possible, and store these on higher floors or elevations. This will reduce the chances of rugs getting wet and growing mold.
  • Prepare an evacuation kit with important papers, insurance documents, medications, and other things you may need if you are forced to be away from your home or business for several days.
  • Inspect sump pumps and drains to ensure proper operation. If a sump pump has a battery backup, make sure the batteries are fresh or replace them.
  • Shut off electrical service at the main breaker if the electrical system and outlets will be underwater.
  • Place all appliances, including stove, washer, and dryer, on masonry blocks or concrete at least 12 inches above the projected flood elevation.

What to do after flooding:

  • As soon as it is safe to do so, disconnect all electronics/electrical equipment and move it to a dry location.
  • Remove as much standing water as possible from inside the building.
  • Remove water-damaged materials immediately.
  • Ventilate with fans or use dehumidifiers to dry out the house.
  • Acting quickly can increase the chance of salvaging usable materials, reduce the amount of rust and mold that might develop, and limit the likelihood of structural problems.

Home Insurance Exclusions: 10 Things Home Insurance Won’t Cover

Every homeowner needs to know the ins and outs of their home insurance policy, but sometimes knowing what isn’t covered can be just as important as knowing what is. Here are 10 home insurance exclusions that every homeowner should be aware of.

1. Mold Damage

Most home insurance companies exclude mold damage from their policies. Unlike a fire or tornado, insurers see mold damage as a problem that grows over time, and homeowners are expected to take preventive measures to prevent mold spores from spreading throughout the home. If left unchecked, mold can cause structural damage to the home and serious health issues for residents.

2. Floods, Earthquakes, Landslides

As many homeowners found out in Hurricane Katrina, flood insurance is not covered under a standard home insurance policy. For protection against flood damage, you’ll need to purchase a separate flood insurance policy.
Earthquake and landslide damage are also notable home insurance exclusions. You will need separate coverage for damage caused by these perils.

3. Aggressive Dog Breeds

If your pet is a poodle or a Chihuahua, your home insurance company probably won’t bat an eye. However, owning a pit bull, Rottweiler, or other dangerous breeds may make it difficult—in some cases, impossible—to find home insurance coverage. Depending on your location, insurer, and other factors, home insurance exclusions may apply to the following dog breeds:

  • Pit bulls
  • Staffordshire Terriers
  • Doberman Pinschers
  • Rottweilers
  • Chows
  • Akitas
  • Presa Canarios
  • Wolf-hybrids

If you own a “blacklisted” breed, you may be charged more for coverage or denied a policy altogether; you can ask your insurer to exclude your dog, in which case you’ll be financially responsible for any damage it causes.

4. Neglect

Insurers expect homeowners to care for their homes and repair minor problems. This includes sealing cracks, minimizing water damage, fixing damaged pipes, scheduling regular inspections, and more.
For example, if a storm causes your tree to fall onto your home, you’re probably covered. However, if your tree collapses onto your home because of a termite infection that went unchecked, you may be responsible for the resulting damage.

5. Sewage Backup

Infamous home insurance exclusions include sewer damage. For instance, if a toilet overflows and you have to hire a professional crew to mop up the mess, you’ll probably be left footing the bill. Sewage backup usually isn’t covered by home insurance unless you’ve purchased a separate rider.

6. Luxury Items

If you keep precious items in your home, you probably need to purchase additional theft liability coverage. According to the Insurance Information Institute, most standard home insurance policies only cover up to $1,500 for damage or theft. Items that may require additional coverage include:

  • Jewelry
  • Antiques
  • High-end electronics
  • Collectibles

Contact your home insurance agent if you have items that require additional coverage.

7. Power Outages

The most common and expensive damage occurs when power is restored, and a surge of electricity floods the home’s circuits. These electricity blasts can cause computers to lose information, electronic devices to overheat, and large appliances to malfunction. In addition to using surge protectors, home insurance companies expect homeowners to unplug all sensitive electronic appliances and leave them unplugged until power is restored.

8. Intentional Damage by a Resident

Intentional damage caused by a resident of the home is not covered by home insurance. For instance, if your teenage daughter purposely sets fire to your home after a heated argument, you’re on your own to cover the losses.

9. War, Terrorism, Nuclear Attacks

If your home is destroyed in a riot, you’re probably covered for the damages. But if a foreign army, terrorist attack, or nuclear meltdown damages or destroys your home, your home insurance policy won’t cover you.

10. Trampolines

Insurance companies consider trampolines to be an extreme risk to personal safety—and a lawsuit waiting to happen if a neighbor is injured while jumping on your trampoline. That’s why many home insurance companies refuse to extend coverage to trampolines, and your current insurer may threaten to cancel your policy if you purchase one.

Parents worry endlessly about how to protect their children, but many overlook one of the biggest threats to their children’s safety and well-being — their own home. Experts say that children between the ages of 1 and 4 are more likely to be killed by fire, burns, drowning, choking, poisoning, or falls within the home than anything else.

In fact, according to the U.S. Centers for Disease Control, about 2.3 million children are accidentally injured every year, and more than 2,500 are killed. That’s why it’s so important to childproof your home carefully.

We know that home safety measures can seem overwhelming, so below, we have provided some tips to protect your children from potential accidents properly.

Scope out the territory
The most effective way to ensure your baby’s safety is to take a baby’s-eye view of your home. Get down on your hands and knees and see how things look from down there.

What’s within reach? What looks tempting? Where would you go if you could crawl, toddle, or walk?

This will help you figure out which cupboards, drawers, and other spaces your child might get into. As he starts walking and climbing, you’ll have to reevaluate again, looking higher each time.

Carefully lock up or stow away every potential poison or other hazards, including cleaning products, medicines, vitamins, and knives. Use gates to limit your child’s access to areas of your home that might contain dangerous items.

Protect outlets
It’s a good idea to protect electrical outlets with outlet covers. Unfortunately, the removable little plug-in caps can easily end up in your baby’s mouth. Instead, replace the outlet covers themselves – at least those accessible – with ones that include a sliding safety latch.

If you’re using extension cords in your home, cover any exposed outlets with electrical tape.

Use caution with furniture and fixtures.
According to the U.S. Consumer Product Safety Commission (CPSC), more than 16,000 children under the age of 5 went to the emergency room in 2006 with injuries caused when television sets, bookcases, and other furniture and appliances tipped over on them.

Large or heavy bookcases, dressers, and appliances are real hazards: Bolt whatever you can to the wall. Push items like televisions back from the edge of the furniture they’re on or move them out of reach, and then secure them, too. Always put heavier items on bottom shelves and in bottom drawers to make furniture less top-heavy.

Install gates
Most parents consider safety gates as essential as childproofing tools. They allow you to open outside doors for air while keeping your child indoors, they contain him within a designated room, and they block his access to dangerous stairways and forbidden rooms (such as the bathroom or kitchen).

Unfortunately, if out-of-date or misused, safety gates can themselves pose a hazard to children. In general, look for gates that your child can’t dislodge but that you can easily open and close. (Otherwise, you’ll be too tempted to leave them open when you’re in a hurry.)

Never use pressure gates at the top of the stairs. Instead, install a gate that screws to the wall – it’s much more secure.

Check ties on blinds and curtains.
According to the CPSC, the cords on window coverings are a frequent cause of children’s strangulation, killing a child between the ages of 7 months and 10 years every month in the United States.

Window blinds pose a particular hazard because a baby’s neck could become trapped in the cords that raise the blinds or run through the slats. A child can become entangled in a looped window cord and strangle in a matter of minutes. Use cordless window coverings wherever possible, and avoid placing your baby’s crib near a window.

Secure your windows and doors
According to the CPSC, every year, about eight children under the age of 5 die from falling out of windows in the United States, and more than 3,000 are injured.

Always open double-hung windows from the top or fit them with locks to prevent small children from opening them.

Low windows shouldn’t open more than 4 inches. Window stops are available that can prevent windows from opening more than this. Some newer windows come with window stops already installed.

Window screens are not strong enough to prevent falls. To make windows safe, install window stops or window guards, which screw into the side of a window frame, have bars no more than 4 inches apart, and can be adjusted to fit windows of many different sizes.

Prevent drowning
According to the CPSC, more than 430 children under age 5 drowned between 2005 and 2009 – not in a pool, but their own home. Accidental drowning is the leading cause of death for children ages 1 to 4.

Most in-home drowning deaths involve babies in bathtubs. Never leave your baby unattended in the tub – even if he’s in a ring or bath seat. Supervise your child whenever he’s in the bathroom, and install a safety latch on your toilet lid to prevent him from accidentally falling in.

Litigation frequency and severity are increasing at dramatic rates.   Thankfully, homeowners insurance can help protect you from many of these claims, but it is still shocking to see how expensive they can be.

For example, did you know that the average dog bite insurance claims now costs about $30,000 to settle?  Or that half of all accidental deaths in the home are caused by slips and falls?
With these items in mind, we have compiled an infographic of the most common personal liability insurance claims with tips on how to avoid them.

If you want to make sure your homeowners insurance policy provides the necessary liability coverage and proper limits for these types of scenarios, please feel free to contact our office.

Did you know that falls are the number cause of personal liability claims on homeowners insurance policies?
Slips, Trips and Fall Prevention
Falls are the second leading type of unintentional home-related injury deaths. Falls occur most commonly in:

  • Doorways
  • Ramps
  • Ladders
  • Stairs
  • Crowded areas
  • Areas with uneven surfaces
  • ​Among older adults, falls can result in serious injury and an increased risk of fatality.

Fall Proofing Your Home
You can prevent falls by “fall-proofing your home.” Take simple steps such as storing objects within easy reach and keeping electrical cords out of the way. If possible, add handrails to stairs to keep your family safe and use non-skid bath mats to prevent falls in the bathroom. Teach children to pick up their toys when done playing and keep your own home clean by wiping up spills immediately. These are just a few of the ways you can keep the ones you love from slipping and tripping.

Older Adult Falls
Adults 55 and older are more prone to becoming victims of falls. You can prevent older adult falls by improving balance through exercise and visiting the doctor annually. Other precautions include wearing fitted shoes, knowing the side effects of medications, and storing those meds in a well-lit area.

Auto insurance claims can be some of the most expensive claims you can face as an individual.  Therefore, implementing some safety tactics while on the road can go a long way in preventing potential claims and disaster.  The following six tips will hopefully keep you safe:

1. Stay focused on defensive driving

  • Keep 100% of your attention on driving at all times.
  • Use defensive driving techniques and be aware of what others around you are doing and expect the unexpected.
  • Don’t use a cell phone or any other electronic device while driving.

2. Practice safe driving tips

  • Build time into your trip schedule to stop for food, rest breaks, phone calls, or other business.
  • Adjust your seat, mirrors, and climate controls before putting the car in gear.

3. Prioritize car safety

  • Secure cargo that may move around while the vehicle is in motion. Don’t attempt to retrieve items that fall to the floor.
  • Have items needed within easy reach, such as toll fees, toll cards, and garage passes.

4. Make the time for driving safety

  • Pullover to eat or drink. It takes only a few minutes.
  • Practice defensive driving and give yourself time to react. Keep a 2-second cushion between you and the car in front of you − 4 seconds if the weather is bad.

5. Slow down

  • Don’t speed − it gives you less time to react and increases the severity of an accident.

6. Think safety

  • Always wear your seat belt and drive sober and drug-free.

Content insurance protects your personal property when you rent an apartment, a condominium, or a home. The owner of the property is responsible for insuring the building itself and any appliances or fixtures provided to you as a renter. But, unless you buy contents or renter’s insurance, you will not have protection for damages or loss of your personal possessions.

What will Content Insurance cover?

As a renter, you need coverage for your personal property and liability protection if you’re responsible for injury to someone else. Content insurance pays for damage to, or the loss of, your personal possessions that are located within your residence. Some policies will also cover your personal possessions, such as laptops or golf clubs that you might have in your car. A renter’s policy will also include liability coverage for injuries. For example, if your dog bites your neighbor, you might need liability coverage.

Saving Money on Content Insurance

  • Buy only as much coverage as you really need. Content coverage is for the actual replacement cost or your property’s actual cash value, not what you think it is worth. For example, a “priceless” family heirloom may have deep sentimental value, but your insurance will only pay for the cost to repair or replace it. Unfortunately, not all items can be replaced.
  • Consider higher deductibles. If you are willing to accept responsibility for a larger part of each loss, your insurance premium will be lower.
  • Reduce your risk. A sprinkler system or alarm system will reduce rates for most policies. And, if you have a dog that’s considered a “dangerous breed,” be aware that you may pay more.
  • Ask for a discount on your auto insurance.  Many auto insurers will give you a 5 or 10% discount on your car insurance when you insure your home or apartment with them. It’s worth it to check!

Complete a Home Inventory today

You’ll be surprised at what you have. A home inventory is the best way to document your personal property. Digital pictures or a quick video of each room and closet will help you get the most from your insurance policy if you ever have a loss.
If you would like to find out more about home contents insurance, please feel free to contact our office.

We are often asked about the available home insurance discounts for Arvada residents.  With that in mind, we thought we would share a list of the common discounts associated with homeowners insurance:

Policy Discounts

  • Multi-Policy Discount: If you have more than one policy with the same insurance company, you may qualify for a multi-policy discount that gets you comprehensive protection and additional savings.
  • Exclusive Group Savings: Insurance companies will often offer exclusive group savings on home insurance to employees and members of more than 14,000 employers, groups, credit unions, or alumni associations.
  • Claims Free Discount: You’ll save on a new home policy if you have not filed a claim with your previous insurance carrier for five years or more.
  • Safe Homeowner Program: You don’t need to be a new customer to be rewarded for being a responsible homeowner. If your policy remains claims-free for three years, you could save on your premium.
  • Early Shopper Discount: Save on your home insurance when you request a quote before your policy with another carrier expires.

Home Discounts

  • Protective Devices Discount: Save on your home insurance by outfitting your home with protective devices such as smoke alarms, deadbolts, fire extinguishers, fire alarms, burglar alarms, or sprinklers.
  • Insured to Value Discount: When you insure up to 100% of the cost to replace your home (usually different from the market value or selling price), you may receive a discount.
  • Newly Purchased Home Discount: Receive special savings if you’ve recently purchased your home.
  • New/Renovated Home Discount: You may qualify for special savings if your home was built or substantially renovated recently.
If you would like to find out more about other discounts available to your home, please give our office a call.

If you rent a house or apartment, your landlord’s insurance will only cover the costs of repairing the building if there is a fire or other disaster.  There is no coverage provided to protect your personal property or negligence.  You need your own coverage, known as renters or tenants insurance in order to financially protect yourself and your belongings.

Renters insurance includes three important types of financial protection:
  • Coverage for Personal Possessions
  • Liability Protection
  • Additional Living Expenses

The following is a brief overview of what renter’s insurance is and how it can protect you.

A. Coverage for Personal Possessions
  1. Determining a limit.  The first step to insuring your personal possessions is to determine an appropriate limit to replace everything in the even of a total loss due a fire or other covered calamity.  The quickest way to do this is by preforming a home inventory.  A home inventory will provide a detailed list of all your belongings and associated value.
  2. Type of coverage. There are two types of coverages available on a standard policy: replacement cost and actual cash value.  Replacement cost pays for the cost to replace your property with like kind and quantity.  Actual cash value pays to replace your possessions minus a deduction for depreciation.
  3. What disasters are covered?  A standard renters insurance covers you against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and certain types of water damage (such as when the tenant upstairs leaves the water running in the bathtub and floods out your apartment or a burst pipe).  Every policy will have a variety of exclusions with the two most prevalent being flood and earthquake.
  4. What is a “floater” and do I need one? If you have expensive jewelry, furs, sports or musical equipment, or expensive electronics like a laptop, consider adding a floater to your policy. Most standard renters policies offer only a limited dollar amount for such items; a floater is a separate policy that provides additional insurance for your valuables and covers them if they are accidentally lost. .
B. Liability Protection
  1. Determining a limit. Liability coverage protects you against bodily injury or property damage caused to others due to your negligence. It pays for both the cost of defending you in court and court awards—up to the limit of your policy. Most standard renters insurance policies will generally provide at least $100,000 of liability coverage, but additional amounts are available.
  2. What about an umbrella?  If you need a higher liability limit, you can purchase a personal umbrella liability policy. An umbrella policy kicks in when you reach the limit on the underlying liability coverage provided by your renters or auto policy.  To purchase an umbrella policy, most insurance companies will require higher limits of liability on both your home and auto insurance.
C. Additional Living Expenses
  1. What happens if I can’t live in my home due to a disaster?   If your home is destroyed by a covered claim and you need to live elsewhere, renters insurance provides additional living expenses (ALE).   ALE pays for hotel bills, temporary rentals, restaurant meals and other expenses you incur while your home is being repaired or rebuilt.
D. Discounts
Insurance companies often offer discounts on renters insurance if you have another policy with them for your car or business. You can also get discounts if you:
  • Have a security system
  • Use smoke detectors
  • Use deadbolt locks
  • Have good credit
  • Have multiple policies
  • Stay with the same insurer
  • Are over 55 years old
If you would like to find out more about a renters insurance policy and how it can protect you and your family, please feel free to give our office a call.