Landlords that are keen on avoiding have to claim on their landlords insurance policy because of leaks caused by a burst pipes should read the advice given by landlord insurance broker Hamilton Fraser.

Steve Barnes, Property and Claims Manager, said:

“Escaping water from burst pipes can cause considerable damage and inconvenience. By taking some simple precautions property owners can reduce the risk of a claim, and whilst much of it is common sense or indeed standard practice to the experienced landlord the following actions could make a difference!”

Hamilton Fraser has issued the following advice:

• Make sure you and your tenants know where your main stop tap is and check that it turns easily.
• Make sure pipes and tanks in your roof space are lagged. Where the loft has been insulated, less heat gets into the roof space and pipes can freeze more easily.
• In very cold weather, you could instruct your tenants to open the loft hatch to allow heat into the loft space. This will help prevent pipes from freezing.
• Advise tenants to keep doors between heated and unheated rooms open, and where possible, cupboard doors open below sinks to allow warm air to circulate.
• Seal any holes or gaps that may be letting cold air into your property.
• Check roofs, chimneys and gutters for unsafe tiles, cracks, leaks and blockages. Check that down pipes and supporting brackets are also secure. Clear drain gratings of leaves and debris to allow water to drain quickly as temperatures rise and the thaw begins.
• Make sure water supply to any external taps is turned off, drain down any water in the pipe and disconnect any hoses.
• If you or your tenant discovers a frozen pipe don’t wait for it to burst. Turn off the water supply and slowly thaw the affected pipe by introducing gentle heat to the area e.g. hair dryer, space heater, hot water bottle. DO NOT attempt to thaw the pipe with a blow torch or other open flame such as a cigarette lighter or matches.

If your property is unoccupied
• Keep the heating on a low constant heat or make sure the system and all of its components have been fully drained by a plumbing professional – or it will freeze.
• Check on your property as regularly as you possibly can. If you do have a burst pipe early identification of escaped water can help reduce the cost of the damage.
• Ensure you have complied with any un-occupancy conditions listed in your policy. Remember that, for example, regular inspections might be a condition of your insurance policy and failure to do so could affect settlement of your claim. If you have any questions regarding an un-occupied property call us on 0845 310 6300.
Emergency Action if disaster strikes
• Turn off the stop tap to prevent further flooding
• Block any escaping water with a towel
• Open all taps to reduce flooding and pressure on the system
• Turn off the source for hot water and central heating
• Can your tenant contact you in an emergency? If not you might consider providing your tenant with the number of a reputable contractor who could respond quickly and undertake emergency repairs to prevent further damage

Southern California residents were recently hit with new expectations to purchase flood insurance due to FEMA’s new floodplain map, and it appears that now some Michigan residents will be on the hook as well. While some of the resident in California were able to fight FEMA’s requirements and excuse themselves from this new expectation, it looks like residents in Michigan’s Fenton Township area are just beginning their fight.

Advice from Townships and City Halls

Many residents who have received notice of their requirement to purchase flood insurance have turned to their townships and city halls for advice on what to do. According to published reports, the townships and city halls are, in turn, providing copies of the new floodplain map from the Federal Emergency Management Agency (FEMA) and telling the homeowners to consult with a surveyor or floodplain expert.

If the surveyor or floodplain expert determines that the home surveyed is not a threat, it could be removed from the floodplain map. However, if the home isn’t surveyed, FEMA will expect the homeowners to purchase their flood insurance policy within 45 days of receiving the notice.

Some May Still Have to Pay

Unfortunately, reports show that despite the fact that some homeowners are able to produceproof that they are no longer in the floodplain and don’t require insurance, they may stillhave to pay. This is if the lender they work with determines that as a condition of their loan they are stillcovered by this type of policy.

However, some residents have already been lifted out of the floodplain zone, relieving themselves of nearly $4,000 a year in coverage.Residents andsurveyors strongly recommend that anyone affected by this new requirement get a surveyor to the home as soon as possible to avoid an unnecessary expense.

As we move into 2010 continuing to insure vacant apartments, vacant houses, and vacant townhouses as our specialty, we unfortunately can still say that 9 out of 10 customers had NO IDEA their existing homeowners insurance company does not provide vacant homeowners insurance. In other words they came to us out of last minute desperation. The fact that clients are continually blindsided and blown away proves the homeowners insurance companies are not doing enough to communicate to their clients that they do not insure vacant homes and vacant town houses.
We propose the industry inform clients of their exact policy regarding vacant home insurance at the time of the initial sale. In many instances, the policy document may not even address the terms and conditions regarding vacant home insurance but long term customers will be promptly cancelled if a house becomes empty or a town home becomes unoccupied for just 60 days.
Because of this “don’t ask don’t tell” policy as we see it in the industry, we estimate there may be over 10,000 homes across the United States that are either not covered at all, or not covered in full because of a vacancy situation and the customer does not know they are at risk.

Vacant Home Insurance now (.com) saw a massive influx of empty and unoccupied houses in 2009 due to the current economic conditions. The trend is not expected to decrease in 2010 as the amount of homes that sit on the market that cannot be sold is not decreasing in most real estate markets in the United States.

Vacant home insurance is needed when a seller of a home has moved out, and the home has been unoccupied for over 60 days in most instances. What’s more, most sellers do not think there is any problem with this situation and do not even inform their existing homeowners insurance company that the house in vacant! The big homeowners insurance companies don’t do a good job informing clients that they are not going to insure empty homes either. People are caught off guard.

What we see is homeowners finding out they need vacant home insurance by accident, contacting the existing insurance company due to a change in conditon or to respond to an inquiry at renewal time, and even to report an address change.

“When they make this call the last thing they expect is to be cancelled.”

It’s at that time they are given the word they are being cancelled and told the existing homeowners insurance company cannot provide vacant homeowners insurance coverage.

The severe earthquake that hit Haiti a little over a week ago reminded the Insurance Information Institute (I.I.I.) of the vulnerability of many drivers and homeowners who are more underinsured than they think.

According to the institute, having standard auto or homeowners insurance may not be enough if an earthquake hits, they may also need some form of earthquake coverage.

What is Earthquake Insurance?

We have some great articles that address the basics of earthquake insurance, what it covers, and whether you need it. However, to sum it up, earthquake insurance is a type of catastrophic policy that is usually added to a homeowners or auto insurance policy. Without these additions to your policies, you won’t be covered if damage is incurred after an earthquake. It’s for this reason that III is encouraging home and auto owners to pick up this additional coverage.

Get the Additional Coverage

According to III, the vast majority of homeowners who live in seismic zones do not purchase earthquake insurance. The same goes for those covered by auto insurance policies. Because the United States has several faults, the threat is always there for an earthquake, which is why III suggest getting as much financial protection for your personal property as possible.

To get your hands on an earthquake policy, it’s good to talk with your current homeowners or auto insurance company. If you don’t have one or either, now’s the time to shop for auto and homeowners coverage, don’t you think?

Your home warranty?s worth depends greatly on the statement in the insurance contract. There are two kinds of warranties. It is the new home warranty and the existing home warranty. In a new home, many builders will offer a homebuyer a warranty, which is usually good for ten years coverage on the home structure. Some have their own warranties while still others use a third party company. Whichever you choose, the home warranty defines items that are covered and outlines a method for repair requests should there be problems.

A buyer or seller of an existing home may buy a one-year warranty that is the same as an extended contract of service. The home warranty normally costs from $350 to $600 and generally covers only the electrical and mechanical components of your home such as the furnace, appliances and the air conditioning. If something is not working, the company will then dispatch a local contractor to fix it and the homeowner will be required to pay a minimal amount only for repairs done. If the repair falls under the warranty coverage, then it is the only expense to be incurred.

You might wonder if home warranties are worth the investment. A home warranty is not automatically a blanket protection and could sometimes be quite tricky. There may be a misunderstanding of what is actually covered and what the homeowner believes to be covered. For instance, a one-year warranty of an existing house may cover problems on the hot-water heater but do not cover anything that is caused by rust or poor maintenance. Hence, when the water heater gives in and the repair person finds rust, you may be charged to pay the bill yourself.

The key factor is to read and comprehend the contract to find out the extent of the coverage, its duration, claims and be aware if there are deadlines. As a homeowner, make sure that you know the entire coverage. Many warranty companies do not cover those that are outside the foundation of the home, which includes the septic tank. Despite additional septic tank coverage, most companies do not cover the cost of replacement of the septic system or the leach field. Septic coverage is only for a year and is non-renewable.

Furthermore, home warranties do not cover the vents, ducting and heating. It only covers the basics such as heaters, home appliances and plumbing that is within the house. Deciding what kind of policy to buy is a bit confusing and as a homeowner, you should consider carefully. The coverage differs from company to company. Make sure to inquire of a good one from satisfied customers and ask for a comprehensive list of coverage. Ensure that you are aware of your rights when making claims.

The importance and worth of a home warranty will depend on the choices and priorities of a homeowner. If you believe that the coverage meets your needs, then purchasing one is a good choice. Another thing to put into consideration is the renewal of the home warranty after it has expired. As a homeowner, be careful to weigh your options before you purchase.