FAQs

Business Taxes will be due on September 15th

Personal Taxes will be due on October 15th

If you lend your car to a friend and your friend has an accident, it might be your insurance that’s on the hook. It all depends on the insurance company that issued your policy. One company’s policy may state: “the insurance follows the car”; while another company’s policy says the driver’s insurance is the primary coverage even though you own the vehicle involved.

Let’s take a look at the two different scenarios:

• If the insurance follows the car and you lend your car to a friend, your coverage is considered the primary coverage. If your friend has an accident, it’s your insurance that will pay the claim. If the accident is serious enough to use up all of your policy’s coverage, then your friend’s coverage, which is considered secondary, might also be used.
• If the insurance follows the driver, coverage is provided the other way around. If you lend your car to a friend and they have an accident, it’s their policy that is considered primary coverage, meaning their insurance company will pay the claim. In this case, your policy would be secondary and wouldn’t pay for anything unless your friend’s policy limits were used up.

All these rules go out the window in many cases if the person borrowing the car happens to be a relative who resides in the same household as the owner. You should read your policy carefully to see what type of coverage applies to you.

Remember these two things: First, always exercise caution when it comes to lending your car. Second, if you’re ever in doubt about whether you or another driver is covered in any given situation, please call us.

You’ve been in an accident.  Here are some general guidelines about what to do next:

• Stop at once. Never leave the scene of even a MINOR accident.
• Seek medical assistance and summon police.
• Do not admit fault. Do not comment about the accident to anyone but your insurance representative and the police.  Never accept or make an offer of cash, check or “private” settlement.
• Gather accident information. Note the date and time of accident.
• Obtain information on the other driver including: name, address, phone number, make of car, vehicle license number, insurance company and agent’s name and telephone number.
• Record a description of what occurred.
• Draw a diagram of the accident showing the direction of both cars and the point of the accident.  Include street names and location of traffic signs/signals.
• Report the accident promptly to your insurance agent.

Does windstorm include tornado?
Since the policy specifically refers to windstorm as a covered cause of loss, some residents have wondered what exactly windstorm includes.  Tornadoes, hurricanes, high winds, thunderstorms and blizzards are all included in the definition of windstorm.  Your homeowners policy also provides ‘loss of use’ benefits to cover additional living expenses while repairs are being made to your home.

Please call us with any specific questions regarding your property coverage.  We are always happy to review your current coverage needs.

You are a volunteer soccer coach, a 4-H advisor, a chamber of commerce committee member, on the church board, or you helped raise contributions for the last United Way campaign. Perhaps you have volunteered hundreds of hours this year without a thought of insurance coverage. If someone is injured, who pays for any legal action brought against you in these volunteer activities? If you serve as a board member and are sued for breach of duty, imprudent investments, discrimination in hiring or wrongful termination, are you covered? To answer these questions, there are two places to check: your home insurance and the organization’s insurance. Let’s look at them:

Your homeowners insurance policy gives you liability protection for bodily injury and property damage to others in non-business activities, like a child who is injured when you are the volunteer soccer coach or 4-H advisor. On the other hand, no protection is provided if your volunteer activity is related to a business (chamber volunteer, union, trade or professional association representative, etc.) or if you receive any compensation. Any legal action other than bodily injury and property damage is not covered (an exception: some homeowners policies cover personal injury — libel, slander, false arrest, false imprisonment, etc.).

Also check for coverage under the organization’s policy. Ask the organization leadership for proof of insurance for general liability, directors and officers liability, and employment practices liability. Also check to see if volunteers are covered (named as additional insureds) under those policies. Some other potential loss situations could include:

• Failure to examine documents signed
• Silence with respect to improper conduct of fellow officials
• Improper rejection of bids
• Failure to exercise diligence in management
• Incurring unnecessary expenses

Communities are fortunate to have so many volunteers donating their time in a host of different areas. This discussion is not meant to discourage any present or prospective volunteers. Rather, our intent is to help individuals be well-informed, comfortable and adequately protected when it comes to volunteering.

Just how broad is your insurance coverage? Will it cover sunken tractors? This true story has occurred several times: our client parks his riding mower on a hill, dismounts, and the tractor slips out of gear and rolls into the pond. Covered? Only if you have an HO15 endorsement on your policy.

You don’t have a riding mower or a pond you say? The HO15 endorsement broadens a homeowners policy so that it also covers other personal property lost due to extraordinary situations. Consider these other covered losses:

• Lost jewelry or gemstones falling out of jewelry not specifically insured (subject to a policy dollar limit).
• Loss in value when a gemstone is scratched or cracked (subject to a policy dollar limit).
• Cameras or other personal items falling overboard from a boat or a capsized canoe.
• A hot iron falling on and scorching an area rug.
• A deer crashing through a sliding glass door causing extensive damage to household contents as it struggles to deal with the unfamiliar surroundings of a family room.
• Raccoon damage (rodents and vermin are not covered).
• Lost hearing aids, eyeglasses, telescopes, cameras, etc.
• Spillage of paint, India ink, nail polish, acid, bleach, and other chemicals that damage household contents.

Most home insurance policies list 17 or 18 different perils of coverage for household contents that do not include the above or numerous other bizarre possibilities. The H015 will cover most of these — subject to your policy deductible.