Home insurance policies do not cover damage from landslides and earth movement. Even though landslide insurance might be costly, having landslide insurance might be your only chance of recovery against the uncertainty of damage or destruction as a result of a landslide.

In February of 1996, a major storm caused hundreds of landslides in the West Hills and last year a landslide destroyed several homes in SW Portland. Many factors contribute to landslides, including slope steepness, soil strength, and moisture content of the soil. A landslide will occur when several of these factors converge.

Search the Oregon Landslide Information Database to map the landslide risk for your Oregon home. The database is a compilation of landslides in Oregon that have been identified on published maps.

To learn more about landslides visit these resources:

• Homeowners Guide to Landslides
• Landslides In Oregon Fact Sheet
• USGS Landslide Hazard Program for Portland Oregon
• Pudget Sound Landslide Information

If you would like an insurance review that includes an option that includes landslide insurance please give me a call.

One of my clients recently contacted me saying they were driving in a rental car and asked how their auto coverage protects them while the car is rented. Here is how your auto coverage will cover you with an auto rental:

Your policy will pay for damage to a rental car if you carry Collision on your vehicle. If you do carry collision and you are involved in an accident you would still have to pay the deductible then the insurance company would pick up the remainder of the repair costs. Your policy does not cover ‘Loss Damage'; this is when the rental car companies charge you for loss of rental income while the car is being repaired. Most rental car companies provide you an option to purchase this coverage. Again, your personal auto policy will not cover this. You might want to look at the wording of your credit card contract to find out if they provide some coverage as some credit card companies will cover this although it is very limited coverage for the downtime of the rental vehicle. The only way to protect your self from this is to purchase the "Loss Damage Waiver" or their "Collision" coverage.

When speaking with my clients I always advise that it is a smart idea for their college bound child have a renters insurance policy in place.  A renters insurance policy would provide them protection whether they are living in a dorm, apartment, or rental home. The reason I suggest to have renters insurance in place is that it is possible that your home insurance policy might have a coverage gap in regards to both property and liability protection.

The potential gap that exists in a standard home insurance policy would be how the school they are attending defines a full time student. A home insurance policy provides coverage both for property and liability for students but if your child is taking 11 credits and the school defines a full time student as taking 15 credits you have a gap in insurance coverage.

Most individuals need to set aside between $8 - $25 to cover the cost of renters insurance. The cost of renters insurance varies with each company and the cost of the coverage is usually based on the following factors:

• How much personal property you want to insure
• What limit of personal liability you select. Limits are usually $100,000, $300,000 & $500,000
• What limit of medical payments to others you select. Limits range between $1,000 - $5,000
• What deductible you choose: $250, $500, $1,000. The higher the deductible the less costly the coverage
• If you bundle your renters insurance & your auto insurance with the same company most companies provide an account discount that is usually between 5%-10% off of the cost of your auto coverage.
• Other contributing factors include what your insurance score is as well as if you have filed any claims on any previous renters insurance policy

Based on the above rating factors a typical renters insurance policy based on the following criteria: personal property limit of $20,000, personal liability at $300,000 and medical payments to others at $1,000 with a $500 deductible, this would cost anywhere between $8 - $25 per month depending on the company based on the above rating factors.

There are additional coverages that can be purchased such as:

• Identity Theft coverage. This usually adds an additional $20 per year
• Scheduling property such as camera equipment, jewelry, computer equipment such as laptops and IPhones, recreational equipment such as high end bikes, kayaks, etc
• When something gets scheduled: i. There are no limitations - the schedule will cover any type of loss other than wear and tear ii. No deductible is used if you file a claim iii. There are no exclusions on the policy other than wear and tear
• Coverage to protect property due to loss from earthquake
• Coverage to protect property due to loss from flood

As an independent isurance broker I work with mulitple insurance companies to help you navigate the broad array of renters insurance choices that are available.  Because I have no allegiance to any one insurance company, you can expect and unbiased perspective and competitive pricing. If you would like me to provide you with a renters insurance review please give me a call at 503-922-4847.

Back in September I posted about the importance of personal liability coverage on your home insurance policy. A client was sued by a contractor who injured himself on his property while doing work on a project.

When you hire general contractors and subcontractors to work on your home you need to be aware of the large exposures that could result in hiring an unlicensed or uninsured contractor. As my client found it when you hire an uninsured contractor working on your home they may sue you for damages if they are injured on the job. The following key rules should thus be followed when selecting a contractor to work on your Oregon home.

• Be wary of contractors who solicit business door-to-door or via cold calls. In addition, avoid contractors who quote you a price that will automatically go up the next day or week if you don't accept it immediately.
• Obtain recommendations from friends, family members, and neighbors about experienced and reputable contractors who have performed excellent work for them.
• Ask for a written estimate from the contractor that includes any oral agreements the contractor makes in this process. The estimate should contain a line-by-line breakdown of costs, including materials and labor.
• Verify that the contractor is licensed, bonded, and properly insured. Ask for certificates of insurance for workers compensation and general liability policies. You should also receive these certificates for any subcontractor the general contractor may hire to work on your home.
• Contact the Better Business Bureau to see if complaints have been filed against the contractor. This can be performed via the bureau's Web site at www.bbb.org.
• Get a copy of the proposed contract. Ideally, it should include a hold harmless clause in your favor, particularly for major work such as when heavy equipment will be used in constructing a swimming pool. A hold harmless clause specifies that the contractor will indemnify you with respect to your liability to members of the public who are injured or whose property is damaged during the course of the contractor's operations. The contract should also explicitly establish an independent contractor relationship.
• Ask a knowledgeable friend, relative, or attorney to review the home repair contract before you sign.

Contact me with your Oregon home insurance policy and insurance liability questions.

Today's auto insurance pricing model has been considered inefficient by many as the traditional factors that contribute to your Oregon auto insurance rate such as driver characteristics (age, gender, marital status, & address), your vehicle usage, your driving record, and your insurance bureau score do not correctly assess the true risk of a driver.

It's common sense that the more time a vehicle spends on the road the more it is prone to a loss rather than when it is sitting in the garage, right? Well the data collected by insurance companies suggests this and those individuals who are low mileage drivers often subsidize insurance costs for high mileage drivers.

The alternative to the traditional auto insurance pricing model is known as ‘pay as you drive auto insurance' or what is also called ‘usage based auto insurance'. With ‘pay as you drive' auto insurance the price of auto insurance is tied to the number of miles driven. Those individuals who drive more will be charged a higher premium. Other rating factors such as location, age, vehicle type, and driving record are still incorporated into this price, so higher-risk drivers would pay more per mile than lower-risk drivers. For many years there has been great interest and demand for ‘pay as you drive auto insurance' and until recently the technology behind the effort to get ‘pay as you drive' auto insurance into place was not reliable and was also too costly to manage.

In 2007 Progressive Insurance introduced Oregon drivers with the first pay as you drive auto insurance option with TripSense. Drives who signed up for TripSense receive a small data-logging device called a TripSensor that plugs into a port in the car and collects information about how much and when the vehicle is driven. The information from the TripSensor is used to calculate the renewal discount the customer can receive. A Progressive Insurance press release stated that participants in the program could receive up to a 25 percent discount when their auto policy renewed. I have not had an opportunity to meet anyone who currently has this plan in place.

Today, Travelers Insurance has launched their IntelliDrive auto insurance program offering Oregon drivers their spin on ‘pay as you drive' auto insurance. When you sign up for the Travelers Insurance IntelliDrive program you get an immediate discount on your auto insurance. After you sign up you schedule a time for an authorized technician to install a small data collection device in your vehicle (1996 or newer models), this device will record critical information about your car that might make you eligible for an additional discount of up to 20% when your auto insurance renews. Additional features of the Travelers program are:

1. You can track your vehicle's speed, fuel efficiency, carbon emissions, and other key performances through the secure IntelliDrive website.
2. If you've ever wondered 'where is my car is right now' you can ‘ping' your vehicle from the IntelliDrive Web site which will display the car's current location on a map.
3. If you have younger drivers in the house you can set up ‘geo fencing' which allows you to specify a driving radius for the vehicle, you are altered with real time messaging sent to your computer or cell phone if the vehicle has gone beyond the limits that have been set up.

If you are a low mileage driver you deserve to pay less for your auto insurance, contact me at 503-922-4847 for a pay as you drive auto insurance quote.

On many occasions I have had my clients ask about why is the replacement cost coverage of their Portland home more than it costs to build the same house when it was new.  The reason is not only will materials and labor fluctuate in cost due to availability but other factors would include the age of the home, the materials used to build the home, as well as any code changes that have been adopted by the municipality since the home was originally built.

Here are some other subtle reasons why your home might have a higher insurance replacement cost:

• Temporary repairs: After a loss your Portland home may need to be boarded up. In the most severe of losses the home may need temporary electrical and heating. These costs are not normally included in the cost to build a new home.
• Demolition: In the event of a serious loss the home may require to be partially or completely demolished prior to starting the repairs. The debris from the demolition has to go somewhere and there is additional expense to haul the debris off to a landfill, these days landfills are not cheap. Also with older homes there is an increased possibility of some homes containing asbestos which must be removed and disposed of in a special way that often adds additional increases to the cost of demolition and debris removal.
• Engineering & Architectural Fees: In the event of a total loss the municipality will require a set of working drawings in order to secure a building permit to replace or even repair your home.
• Building Permits: A permit will be required to repair or replace the home after a loss.
• Code Compliance: Most insurance policies contain Ordinance and Law coverage up to a specified percentage, this allows for upgrades to the home after a loss to bring the home into compliance with today's building standards. Depending on the age of the structure and the amount of damage quite often these upgrades can cost much more than you think when you consider electrical, tempered glass, asbestos abatement, etc.
• Economies of Scale: When your home was built brand new your builder probably enjoyed discounts on materials, and possibly labor due to the fact that they were purchasing multiple quantities of materials at once. A repair contractor will have only to buy one or two and most likely does not keep an inventory of supplies.
• Foundations: If you suffer a large fire it is not unusual for the foundation of the home to be called out for replacement by the engineer inspecting the home. Even though it is rare for concrete used in basements, crawl spaces, or concrete slabs to catch on fire but what does happen is that heat due to a fire causes moisture inside the concrete and heats to a point where it turns to steam, expands in size, and will literally blow up the concrete from the inside out. This condition is referred to as 'sprawling' and will adversely affect the structural integrity and esthetics of the concrete.

Whether I am working with a personal or commercial client during the insurance interview process, sometimes the question is brought up of “Why would I want to work with a local independent insurance broker?” Today's media constantly reminds us to "Take 15 minutes to find how much you can save on car insurance!" or "This is the money you could be saving with company X". With so many opportunities to do it yourself you are reminded why would you want to use a broker, right? If you are like most consumers you have little interest in educating yourself about what to buy and who to buy it from and this is why you want to use an insurance broker.

As an independent insurance broker serving the needs of both individuals and commercial business in Portland my goal is to provide the very best combination of service, coverage and price. As a broker I have relationships with both local northwest and national insurance companies that allow me to shop around and you help navigate through the broad array of insurance choices that are available. I do not have an allegiance to any one company; when you work with me as your broker you can expect an unbiased perspective with the options that are presented to you.

When working with a broker there is no ‘fee’ as the commission is built directly into the premium that you pay, depending on the type of insurance the commission ranges from 10% - 15% of the annual premium. Another question that I usually get asked when someone has not worked with an insurance broker before is “can I contact the insurance company directly to pay a lower premium?” As an independent insurance broker working with independent insurance companies you can only access the insurance options that I present to you if you work with an insurance broker life me. If you were to contact the companies directly they would send you to a broker like me.

At the end of the day I want to recommend the right company and appropriate coverages for you and your business. If you would ever like an insurance review please contact me at 503-922-4847.

Today I read an interesting article in The Oregonian that speaks to the topic of personal liability. The article addresses that some homeowners in SW Portland have given permission to a neighborhood association to build a series of walking trails throughout their SW neighborhood. The catch is that these homeowners were not aware that they are responsible for any bodily injury that might occur on the portion of the trails that is located on their property. Yikes!

Whenever I speak with clients I provide the same risk management clarification about personal liability, which is the following:  As an Oregon homeowner you are responsible and liable for any accidents or injuries that might take place on your property which includes your front yard, your side yard, your backyard, as well as the sidewalks that border your property.

All home insurance policies provide you coverage for liability (each policy is worded differently so please read your policy carefully.) Below is sample language from a Safeco Insurance policy.

If a claim is made or a suit is brought against any insured for damages because of bodily injury or property damage caused by an occurrence to which this coverage applies, we will:

1. Pay up to our limit of liability for the damages for which the insured is legally liable; and
2. Provide a defense at our expense by counsel of our choice even if the allegations are groundless, false or fraudulent. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when the amount we pay for damages resulting from the occurrence equals our limit of liability.

The possible saving grace for the homeowners in SW Portland who have part of the SW walking trails going through their yard is that they may be designated as walking trails by the city. If this occurs they will be treated similarly to recreational trails in city parks where the liability is held by the trail user.

If you ever have questions about your home insurance and liability claims that might be brought against you give me a call.

The wet weather forecasted for this week brings more bad news about the potential of more floods & landslides for local homeowners. I thought I would spend a few posts talking about the different types of insurance options that are available to protect your home against both a loss due to flood and landslide.

I will start out discussing landslide insurance options since I have been talking to clients today about an option that are available for them. The type of policy that provides insurance protection against a loss due to landslide is sometimes called a 'Difference in Conditions' policy or a 'Natural Catastrophe' insurance policy.

This type of insurance policy provides protection against a loss due to earthquake, flood, & of course landslide. The Natural Catastrophe policy defines each as:

1. Earthquake Shock means earth movement due to natural, seismic disturbance, caused by a sudden movement of the earth's crust, and including as a direct and immediate result of Earthquake Shock, landslide, mudflow, earth sinking, earth rising, or earth shifting.
2. Flood means a general and temporary condition of partial or complete inundation of normally dry land areas above the surface of the ground, caused by the overflow of a body of water including rivers, streams or lakes, waves, tidal water, surface water or spray from any of these, whether or not driven by wind.
3. Landslide means the natural and sudden fall, slipping or displacement of earth or rock, including mudflow and land collapse other than that arising out of Earthquake shock.

The deductible for this type of insurance policy works as percentage rather than a dollar amount. For example, rebuilding your home after a landslide, earthquake, or flood you would be responsible for 5% of the insurance replacement cost of your home. If the insurance replacement cost of your home was $355,000 this would equate to $17,750.

Like all insurance policies this type of insurance has exclusions and you always need to read the exclusions. My next post on landslide insurance will speak to some of the exclusions that can be found in this type of insurance policy.

An Oregonian article reported that city officials said that new sprinkler equipment and high water use at the  house in Portland's  Southwest hills probably contributed to a landslide that sent it crashing into homes below it.

I am not a claims adjuster but the loss brings questions to light in regards to how the home insurance policy will respond to damages that are caused to property of others.

The part of a home insurance contract that provides coverage for bodily injury and property damage is personal liability. Personal liability is going to provide protection against a suit brought against any insured because of bodily injury or property damage caused by an occurence. The Oregonian article stated that Farmers Insurance, the insurer for both the home owners house that slid and one of the houses that was knocked off the foundation had denied the initial claim that was filed for repair of both houses.

For the homeowner whose house that slid off of the foundation there is not going to be any insurance coverage. As I stated in my October 9th blog post  the home insurance policy is going to exclude a loss to property due to 'Earth Movement'.  One of the companies I work with provides this as the definition of 'Earth Movement':

"the sinking, rising, shifting, expanding, or contracting of earth, all whether combined with water or not. Earth movement includes but is not limited to earthquake, landslide, mudflow, mudslide, sinkhole, subsidence, erosion, or movement resulting from improper compaction, site selection or any other external forces. Earth movement also includes volcanic explosion or lava flow."

Based on the policy language we have determined that there is no coverage to rebuild the home that was in the landslide. Why isn't that home insurance policy of the home that slid going to pay for the property damage that was caused to the other homes damaged due to the landslide?

The question that needs to be asked is "Who is liable for the damage?" Hopefully we are not going to see insurance companies dragging their feet in determining if the homeowner is liable or maybe the contractor who did the irrigation and excavation work on the property is liable for this event. We will find out over time.

In conclusion the unfortunate situation of this event is that even if Farmers Insurance decides to provide a liability payout on this claim there might be $500,000 worth of coverage to cover all the homes that were damaged. If the contractor's insurance policy provides a payout maybe there might be another $1,000,000. I am still uncertain if the possible amounts available would cover not just the rebuilding of the homes but also cover the cost for stabilizing the land around the homes.

Please contact me to have me provide you with a comprehensive review of your insurance program to make certain you have adequate insurance coverage in place. I will also provide you with recommendations to limit your liability.