Insuring a rental home

The current housing downturn has created a new generation of reluctant landlords who are choosing to rent their homes instead of selling them at a loss.  Until home prices improve, homeowners have turned to tenants to subsidize their wait.  These new landlords should know that rental income is taxable, but the costs can be offset by deducting mortgage interest, real estate taxes, depreciation, repair costs and insurance.  In fact, a landlord policy will actually cost about 25 percent more than a standard homeowners policy, but it will cover structural damage, as well as any resulting lost rental income.   At Scott Insurance, we can find the best policy for your property as an independent insurance company.

Who Are Better Drivers, Men or Women

The unending battle of “who is better” moves onto to the driving battleground:  Who are better drivers, men or women?   The most recent study on the matter looked at a  gender-specific comparison of  traffic violations, accidents, and insurance costs.     Contrary to what men might believe, the comparison shows that women are better drivers in nearly every category, including reckless driving, failure to yield, seat belt violations, and speeding.  The study’s findings reveal that men are responsible for nearly 80% of all fatal and serious automobile crashes, and women are 27% less likely than men to cause auto accidents.  Male DUI drivers outnumber females by 3-1.  This study is by the Insurance Institite for Highway Safety’s Highway Loss Data Institute.  It also reports more men than women die each year in car crashes.  In crashes of equal severity, however, females are more likely than males to be killed or injured, perhaps because they are in the passanger seat?

Manufacturing Equipment Insurance

The quaint term “Boiler and Machinery” insurance was first created to offer protection to early manufacturers against a breakdown of mechanical equipment that would cause damage and bring the business to a halt.  Today, with the more complex equipment used in business, this old “B&M” coverage is often referred to as “equipment breakdown” or “machinery and equipment insurance”.  We are not talking about digital machines though, but equipment that operates under pressure or controls, transmits, transforms or uses mechanical or electrical power:(pumps, compressors, turbines, engines and air-conditioning and refrigeration systems).   Most of these policies cover the cost to repair or replace this equipment that breaks down suddently and accidentally.  The policy may also cover loss of income from these breakdowns.  We invite all production/manufacturing  facilities to call Scott Insurance and review your coverage.  We are expert on auto, home or health policies too.

In short, the benefits of a life insurance policy may do little good if no one knows about the policy.  It is also possible that  surviving members may unknowingly close a bank account that had previously been making automatic premium payments on a policy.  In this case, the life insurance policy may be cancelled because of unpaid premium before a payout can be made.  These problems can be prevented by a “letter of instruction” that should be kept with other important documents in a safe place.  This “safe place” should be accessible and know to family and estate executives.    If you are uncertain that your insurance policies include this important “letter of instruction” feel free to call the office of Scott Insurance in Stratford CT  to review your situation.

Rear Facing Car Seats Recommended for children until 2 years of age.

A new finding about rear facing car seats will help anyone who is in charge of transporting young infants and toddlers in their automobiles.  This updated recommendation is offered by the National Highway Traffic Safety Administration and the American Academy of Pediatrics:  Keep children in rear facing car seats until they are TWO years old, instead of the one year.  This is based on evidence taken from 5 years of U.S. crash data showing that one year olds are 5 times less likely to suffer injury if they are in rear facing seat than a forward facing seat.  This is because toddelers have relatively large heads and small necks.  This makes them more susceptible to the spinal cord injuries that result from the force of a car crash that jerks their heads violently.  So best to keep them looking backwards for the first two years of their lives.

East Coast Earthquake damages National monument

If you thought that earthquakes were just an isolated phenomenon, last year’s east coast shaker  that trembled even Connecticut may be an eye opener.  h fact is that about 5000 earthquakes occur yearly in the US, according to the Insurance Information Institute, with quakes of various magnitudes occurring in 39 states since 1900.  When it comes to insuring against quake-related damage, you should know that earthquake damage is not covered under the standard homeowners or business insurance policy.  While it is common for property insurance to cover fire resulting from an  earthquake, these policies typically exclude damage from earth movement.  For that, it is necessary to purchase a rider to existing property insurance.  Otherwise, a supplemental policy might be necessary.

 NOTE: According to the Substance Abuse and Mental Health Services Administration, 11.4 percent of drivers aged 16 to 25 said they drove on illicit drugs during the previous 12 months.