Driving after dark is the single most-dangerous risk a teenage driver can take and is more likely to result in death than drinking, speeding or disregarding a seat belt, according to a national 10-year study of highway fatalities released Thursday.

“Everything points in the same direction for this age group, and that is to the use of cellphones behind the wheel,” said Bernie Fette, one of the study’s authors. “Whenever you combine the nighttime danger and the cellphone danger with inexperience, you have created a perfect storm.”

That “perfect storm” took the life of Cady Anne Reynolds, a high school sophomore whose summer vacation had just begun in Omaha three years ago. Reynolds, 16, was driving home from a movie when her car was hit broadside by a vehicle driven by another 16-year-old who sped through a red light at 11 p.m.

“She almost hit two other cars before she hit our daughter,” her mother, Shari Reynolds, said Wednesday. “She clearly was distracted by something, and she hit our daughter at 50 miles per hour without ever touching the brake.”

The report, conducted by the Texas Transportation Institute, used federal traffic fatality data from 1999 to 2008, a period in which the number of traffic deaths declined nationwide.

Safer cars, safer highways, seat-belt laws and drunken-driving enforcement have been linked to the drop in fatalities — all factors in darkness and daylight alike.

So why didn’t nighttime traffic deaths drop, too?

Among drivers 20 and older, alcohol was a clear culprit in the proportional increase in nighttime deaths. Not so with teenagers, among whom there was a greater increase but no corresponding jump in deaths that could be attributed to drunken driving.

“We have a test to see whether someone’s been drinking, but there is no test to see whether you’ve been on your cellphone,” Fette said. “Because teenagers have grown up with these devices in their hands, they feel a comfort level and a very false sense of security. They will tell you, ‘I can text with my phone still in my pocket, so I certainly can text while I’m driving.’ ”

The report adds to data amassed by U.S. Transportation Secretary Ray LaHood, who has crusaded for more than a year about the dangers of texting and cellphone use.

“A quarter of all teens admit to texting behind the wheel and, in 2008, the highest proportion of distracted drivers in fatal crashes were under the age of 20,” LaHood said. “Teen drivers are some of the most vulnerable drivers on the road due to inexperience, and adding cellphones to the mix only compounds the dangers. We’re doing everything possible to get the message out to teens that driving while talking or texting on a cellphone is not worth the risk.”

In addition to dismissing the dangers of cellphone use, Fette said, few teenagers are aware that nightfall magnifies the risk posed by their inexperience and fatigue.

“More than 80 percent of teens can name alcohol as a driving risk,” Fette said, “but only 3 percent are aware that driving at night is dangerous.”

The report cites research from the National Sleep Foundation that says the average teen needs nine hours of sleep but gets seven.

“The resulting fatigue, especially late at night, can contribute to impairment that is similar to being intoxicated,” the Texas Transportation Institute report says.

Data compiled by the National Highway Traffic Safety Administration show that the crash rate per mile driven for 16-year-olds is almost 10 times the rate for drivers 30 to 59. NHTSA research has also shown that teens killed at night are less likely to be wearing seat belts. About 6,000 teenagers die in car crashes each year.

The Texas research indicates that nighttime driving was the No. 1 risk for fatalities among teenage drivers, followed by speed, distractions, failure to wear a seat belt and alcohol use.

Maryland, Virginia and the District have graduated licensing laws that limit driving privileges until teenagers gain experience, as do most states. The laws restrict hours for nighttime driving and the number of passengers that a teen can have in the car.

“If you add one kid in a car [driven by a teenager], you double the risk of crash,” Fette said. “With two kids, you triple it, and with three kids, it goes up by a factor of six.”

All of those factors — darkness, speed, alcohol, inexperience, lack of seat belts and distractions — contributed a spate of fatal teen crashes in the Washington region to Fette’s database.

Seventeen teenagers died on area roads within a four-month period in 2004. Speeding was a factor in eight of the crashes, failure to wear a seat belt was a factor in seven, alcohol was involved in at least two, one vehicle carried six passengers and inexperience was cited in five cases. Thirteen of the accidents happened after dark.

Since their daughter died, Shari and Rob Reynolds have campaigned for laws to counteract distracted driving. Rob Reynolds is a founding member of FocusDriven, a group patterned after Mothers Against Drunk Driving that wants to ban cellphone use behind the wheel. 

“We’re fully aware of the problem of nighttime driving,” Shari Reynolds said. “When teens are in a group, they exhibit more risky behavior. Being with their friends, feeling the freedom, maybe being out a little late, and the adrenaline starts pumping.”

© 2010 The Washington Post Company

In the months ahead, many of us will be renting vehicles for vacation travel.  Here are a few things to consider when renting:

1. 1. What is the right size vehicle? Do you have a preference on the kind of vehicle (i.e.: SUV, Van, Compact, Luxury)? Be sure to choose the right car.  You will need to take into account how many people you will be in the vehicle, amount of luggage you will be taking (and what additional items you may be bringing back).  Choosing the right vehicle with the necessary amount of space will make your trip much more enjoyable.
2. Plan to book your rental early. This will ensure the type of vehicle you desire is available.
3. Your existing auto insurance policy will cover your rental vehicle for liability in the amount you are currently carrying on your policy.  You will also be covered for comprehensive and collision insurance if you currently carry that insurance on your owned vehicle. 
4. Important that you beware of hidden costs.  The advertised rental fee will not usually be the only fee to be concerned with. You will need to inquire on the cost of gas, how much the rental agency will charge for any damages, the cost of insurance, taxes and so on. One additional fee you should consider is to purchase the GAP insurance from the rental agency. This insurance will cover the difference in what the rental agency states their vehicle is worth and what your insurance company will pay for the vehicle. There could be $$$ (in the thousands) where the companies do not agree. Without this valuable coverage, you will be stuck to pay the difference out of your pocket.
5. Be sure to check the vehicle for damages before leaving the rental agency.  Make sure all damages are noted and initialed by attendant on the rental form so you are not billed for any repairs. Hold on to your initialed copy of the vehicle’s damages as proof that you pointed them out to the agency.
6. When returning the vehicle, you can avoid additional fees by: returning your rental to the agent on time, making sure vehicle’s interior is clean and by making sure the vehicle is fully gassed up.
7. It is very important that you keep a copy of your rental agreement.  Take time to read over your rental agreement to make sure you aware of all charges or credits that may be involved. After returning the rented vehicle, monitor your bank account/credit card statement to make sure you were correctly charged for the rental, and that any credits or adjustments due are credited.

Running errands, making deliveries, visiting customers. Even for those whose employment is not based on driving, it’s fair to say that your vehicle is an essential part of your employment. This presents an important question: If you are involved in an accident in the course of employment, are you covered by your personal auto insurance policy (PAP)?

Like most insurance questions, the answer depends on circumstance. For example, what kind of car are you driving? Does the car belong to you or someone else? What type of business are you in?

Consider the language found in the typical PAP. At a glance, many policyholders are shocked to see that the PAP appears to exclude coverage for the use of any vehicle in the course of business other than farming or ranching. However, a very broad exception to this exclusion allows coverage for the business use of a vehicle provided it is one of three types: 1) a private passenger auto, 2) a pickup or van, or 3) trailer while used with the aforementioned. This exception suggests that as long as the vehicle is one of these three types, coverage remains intact after the accident.

But policyholders should proceed with caution, since some PAPs are not as generous. For example, some versions may be more restrictive towards pickups or vans, possibly including a gross vehicle weight (GVW) limitation or a clause that restricts coverage to owned pickups or vans only. Be sure to consult your policy before driving any pickup or van for work.

Further, policyholders should understand that any coverage permitted for business use of personal vehicles by the PAP is not intended for these three vehicle categories:

Commercial-type vehicles. The PAP restricts business use to private passenger autos, pickups and vans. While they can be purchased personally, box trucks, tractor trailers, shuttle busses and other commercial-type vehicles do not fit this description; such vehicles require a commercial auto policy.

Furnished or available for regular use. Often called the “company car” exclusion, this provision is dangerous and must be remedied if the exposure exists. The reason is that a typical PAP will exclude coverage for a vehicle that is regularly available to the policyholder but is not specifically insured under the PAP. For example, if you are furnished a company car as a benefit to your employment, make certain that you are covered by your employer’s auto insurance policy. If not, specific action is required to extend coverage under your PAP; it will not do so automatically. The good news is that this coverage change is usually inexpensive and can be done easily; just be sure to request the change now, before the accident happens. While the definition of furnished or available for regular use varies by case, err on the side of caution. Don’t assume that because you don’t take it home with you each night or that you only drive it occasionally you’re in the clear. Regardless, a vehicle owned by your employer could be considered available for your regular use. This exclusion presents a potential gap that is too risky to ignore; your Trusted Choice^® agent can help you take the appropriate steps to close it.

Vehicles that are the business. A PAP will not cover your vehicle if you use it to carry people for a fee, such as a taxi, limo or shuttle. The only exception is a share-the-expense car pool. And if you’re planning to make a few extra bucks delivering pizzas, auto parts, newspapers or other goods, proceed with caution. Many PAPs also remove coverage for vehicles that are used to deliver food or other types of property for a fee.

While in most cases the PAP will cover you for business use of a personal vehicle, there are situations where it will not. Such situations are not uncommon and, if not remedied, could result in significant financial detriment for you and your family. Consult your Trusted Choice^® agent (Brownell Insurance Center 603-437-1992) for advice on how to close potentially devastating gaps in your PAP today.  

This article is located at http://www.trustedchoice.com/business-use-of-personal-vehicle.aspx

Who needs flood insurance? Everyone!

And almost everyone in a participating community of the National Flood Insurance Program (NFIP) can buy flood insurance. Nationwide, more than 20,000 communities have joined the Program. In some instances, people have been told that they cannot buy flood insurance because of where they live. To clear up this and other misconceptions about National Flood Insurance, the NFIP has compiled a list of common myths about the Program, and the real facts behind them, to give you the full story about this valuable protection. 

MYTH: The NFIP encourages coastal development. 

FACT: One of the NFIP’s primary objectives is to guide development away from high-flood risk areas. NFIP regulations minimize the impact of structures that are built in SFHAs by requiring them not to cause obstructions to the natural flow of floodwaters. Also, as a condition of community participation in the NFIP, those structures built within SFHAs must adhere to strict floodplain management regulations enforced by the community.In addition, the Coastal Barrier Resources Act (CBRA) of 1982 relies on the NFIP to discourage building in fragile coastal areas by prohibiting the sale of flood insurance in designated CBRA areas. While the NFIP does not prohibit property owners from building in these areas, any Federal financial assistance, including federally backed flood insurance, is prohibited. However, the CBRA does not prohibit privately financed development or insurance.

MYTH: Federal disaster assistance will pay for flood damage. 

FACT: Before a community is eligible for disaster assistance, it must be declared a federal disaster area. Federal disaster assistance declarations are issued in less than 50 percent of flooding events. The premium for an NFIP policy, averaging a little over $500 a year, can beless expensive than the monthly payments on a federal disaster loan. Furthermore, if you are uninsured and receive federal disaster assistance after a flood, you must purchase flood insurance to remain eligible for future disaster relief.

MYTH: The NFIP does not cover flooding resulting from hurricanes or the overflow of rivers or tidal waters. 

FACT: The NFIP defines covered flooding as a general and temporary condition during which
the surface of normally dry land is partially or completely inundated. Two properties in the area
or two or more acres must be affected.

Flooding can be caused by:  

• Overflow of inland or tidal waters, or
• Unusual and rapid accumulation or runoff of
surface waters from any source, such as heavy rainfall, or
• Mudflow, i.e., a river of liquid and flowing
mud on the surfaces of normally dry land areas, or
• Collapse or subsidence of land along the shore
of a lake or other body of water, resulting from
erosion or the effect of waves, or water currents
exceeding normal, cyclical levels. 

MYTH: You can’t buy flood insurance if you are located in a high-flood risk area. 

FACT: You can buy National Flood Insurance no matter where you live if your community participates in the NFIP, except in Coastal Barrier Resources System (CBRS) or other protected areas. The Program was created in 1968 to make federally backed flood insurance available to property owners who live in eligible communities. Flood insurance was then virtually unavailable from the private insurance industry. The Flood Disaster Protection Act of 1973, as amended, requires federally regulated lending institutions to make sure that mortgage loans secured by buildings in high-flood risk areas are protected by flood insurance. Lenders should notify borrowers, prior to closing, that their property is located in a high-flood risk area and that National Flood Insurance is required.

MYTH: You can’t buy flood insurance immediately before or during a flood. 

FACT: You can purchase National Flood Insurance at any time. There is usually a 30-day waiting period after premium payment before the policy is effective, with the following exceptions:

1. If the initial purchase of flood insurance is in connection with the making, increasing,
extending, or renewing of a loan, there is no waiting period. Coverage becomes effective at
the time of the loan, provided application and payment of premium is made at or prior to loan closing. 

2. If the initial purchase of flood insurance is made during the 13-month period following the effective date of a revised flood map for a community, there is a 1-day waiting period. This applies only where the Flood Insurance Rate Map (FIRM) is revised to show the building to be in a Special Flood Hazard Area (SFHA) when it had not been in an SFHA. The policy does not over a “loss in progress,” defined by the NFIP as a loss occurring as of 12:01 a.m. on the first day of the policy term. In addition, you cannot increase the amount of insurance coverage you have during a loss in progress.

MYTH: Homeowners insurance policies cover flooding. 

FACT: Unfortunately, many home and business owners do not find out until it is too late that their homeowners and business multiperil policies do not cover flooding. The NFIP offers a separate policy that protects the single most important financial asset, which for most people is their home or business. Homeowners can include contents coverage in their NFIP policy. Residential and commercial renters can purchase contents coverage. Business owners can purchase flood insurance coverage for their buildings and contents/inventory and, by doing so, protect their livelihood.

MYTH: Flood insurance is only available for homeowners. 

FACT: Most people who live in NFIP participating communities, including renters and condo unit owners, are eligible to purchase federally backed flood insurance. A maximum of $250,000 of building coverage is available for single-family residential buildings; $250,000 per unit for residential condominiums. The limit for contents coverage on all residential buildings is $100,000, which is also available to renters. Commercial structures can be insured to a limit of $500,000 for the building and $500,000 for the contents. The maximum insurance limit may not exceed the insurable value of the property.

MYTH: You can’t buy flood insurance if your property has been flooded. 

FACT: You are still eligible to purchase flood insurance after your home, apartment, or business
has been flooded, provided that your community is participating in the NFIP.

MYTH: Only residents of high-flood risk areas need to insure their property. 

FACT: All areas are susceptible to flooding, although to varying degrees. If you live in a
low-to-moderate flood risk area, it is advisable to have flood insurance. Nearly 25 percent of the NFIP’s claims come from outside high-flood risk areas. Residential and commercial property owners located in low-to-moderate risk areas should ask their agents if they are eligible for the Preferred Risk Policy, which provides inexpensive flood insurance protection.

MYTH: National Flood Insurance can only be purchased through the NFIP directly. 

FACT: NFIP flood insurance is sold through private insurance companies and agents, and is
backed by the federal government.

MYTH: The NFIP does not offer any type of basement coverage. 

FACT: Yes it does. The NFIP defines a basement as any area of a building with a floor that is below ground level on all sides. While flood insurance does not cover basement improvements (such as finished walls, floors, or ceilings), or personal belongings kept in a basement (such as furniture and other contents), it does cover structural elements and essential equipment. 

The following items are covered under building coverage, as long as they are connected to a power source, if required, and installed in their functioning location:  

• Sump pumps
• Well water tanks and pumps, cisterns,
and the water in them
• Oil tanks and the oil in them, natural gas
tanks and the gas in them
• Pumps and/or tanks used in conjunction
with solar energy
• Furnaces, water heaters, air conditioners, and heat pumps
• Electrical junction and circuit breaker boxes
and required utility connections
• Foundation elements
• Stairways, staircases, elevators, and dumbwaiters
• Unpainted drywall walls and ceilings, including
nonflammable insulation
• Cleanup

The following items are covered under contents coverage:  

• Clothes washers and dryers
• Food freezers and the food in them The NFIP recommends both building and
contents coverage for the broadest protection. 

For more information about the NFIP and flood insurance, call 1-800-427-4661
or contact your insurance company or agent.For an agent referral, call 1-888-435-6637
TDD 1-800-427-5593

http://www.fema.gov/business/nfip
http://www.floodsmart.gov
F-002 FEMA B-690 / Catalog No. 08094-3 (2/10)  

National Flood Insurance Program
Myths and Facts about
the National Flood Insurance Program

Safety is No Accident
Tuesday, February 23, 2010

Friends Don’t Let Friends Drive Drunk This St. Patrick’s Day

Don’t Depend on Dumb Luck—Designate a Sober Driver Before the Party Begins

March is the month to don some green, pull out the shamrocks, and look for the pot of gold. St. Patrick’s Day is approaching, spring is arriving and every one is ready to celebrate and enjoy good cheer. For many St. Patrick’s Day has become a popular night out to celebrate with friends and family. Unfortunately, due to the large number of drunk drivers, the night out has also become very dangerous.

On St. Patrick’s Day 2008, 37 percent of the drivers and motorcyclists involved in fatal crashes had a blood alcohol content (BAC) of .08 or above, according to statistics by the National Highway Traffic Safety Administration.

“Whether you are meeting a few friends at the local pub after work or attending parade, if you plan on using alcohol, never drive while impaired-and never let your friends drive if you think they are impaired”. 

Additional NHTSA statistics show that in 2008, there were 134 crash fatalities on St. Patrick’s Day. Out of that number, 50 people were killed in traffic crashes that involved at least one driver or motorcyclist with a blood alcohol concentration (BAC) of .08 or higher.

For a safe St. Patrick’s Day take the following steps:

• Plan a safe way home before the festivities begin;
• Before drinking, please designate a sober driver and leave your car keys at home;
• If you’re impaired, use a taxi, call a sober friend or family member, or use public transportation so you are sure to get home safely;
• Use your community’s Sober Rides program
• If you happen to see a drunk driver on the road, don’t hesitate to contact your local law enforcement;
• And remember, if you know someone who is about to drive or ride while impaired, take their keys and help them make other arrangements to get to where they are going safely.Driving impaired is simply not worth the risk, not only do you risk killing yourself or someone else, but the trauma and financial costs of a crash or an arrest for driving while impaired can be really significant. Don’t depend on dumb luck this St. Patrick’s Day. Designate your sober driver before the party begins.

  For more information, visit www.StopImpairedDriving.org.

  *- ST. PATRICK’S DAY IS DEFINED AS 6PM MARCH 16 TO 5:59AM MARCH 18
  Labels: blood alcohol level, buzzed driving, drunk driving, dui, underage alcohol use, underage drinking

Spring forward…Fall back….

It’s ingrained in our consciousness almost as much as the A-B-Cs or our spelling reminder of “i before e….” And it’s a regular event, though perhaps a bit less regular than the swallows coming back to Capistrano. (Though that may even change with the impacts of global climate change.)

Yet in those four words is a whole collection of trivia, facts and common sense about Daylight Saving Time.

Beginning in 2007, Daylight Saving Time is extended one month and begins for most of the United States at: 2 a.m. on the Second Sunday in March and lasts until 2 a.m. on the First Sunday of November.

The new start and stop dates were set in the Energy Policy Act of 2005.

Daylight Saving Time – for the U.S. and its territories – is NOT observed in Hawaii, American Samoa, Guam, Puerto Rico, the Virgin Islands, and by most of Arizona (with the exception of the Navajo Indian Reservation in Arizona).

Indiana, which used to be split with a portion of the state observing DST and the other half not, is now whole. In the past, counties in the Eastern Time Zone portion of the state did not observe DST. They were on standard time year round. A state law was passed in 2005 that has the entire state of Indiana observing DST beginning in April 2006. Indiana isn’t the only state that wanted to change daylight saving time. California asked for federal “approval” to move to a “year-round” Daylight Saving Time in 2001-2002 because of its energy crisis. (See below.)

According to Mining Co. Guide to Geography, DST is also observed in about 70 countries:

“Other parts of the world observe Daylight Saving Time as well. While European nations have been taking advantage of the time change for decades, in 1996 the European Union (EU) standardized an EU-wide “summertime period.” The EU version of Daylight Saving Time runs from the last Sunday in March through the last Sunday in October. During the summer, Russia’s clocks are two hours ahead of standard time. During the winter, all 11 of the Russian time zones are an hour ahead of standard time. During the summer months, Russian clocks are advanced another hour ahead. With their high latitude, the two hours of Daylight Saving Time really helps to save daylight. In the southern hemisphere where summer comes in December, Daylight Saving Time is observed from October to March. Equatorial and tropical countries (lower latitudes) don’t observe Daylight Saving Time since the daylight hours are similar during every season, so there’s no advantage to moving clocks forward during the summer.”

For the whole article with history and reasons go to http://www.energy.ca.gov/daylightsaving.html

After each natural disaster, too many people discover an awful truth: They don’t have enough insurance to rebuild their homes.Nationwide, 68% of homeowners are underinsured, according to a survey by insurance-services firm MSB, by an average of 18%. That means someone whose house cost $200,000 to replace would find herself short by $36,000.

Where homes and rebuilding costs are higher, the problem can be even more acute. A survey by United Policyholders, a consumer advocacy group, said 75% of California homeowners affected by the 2007 wildfires in San Bernardino and Riverside counties were underinsured by an average of $240,000.

Trying to figure out the right amounts of insurance coverage, however, is a tricky, frustrating process. Your insurance company or agent may be surprisingly little help and may even steer you wrong:

• Many victims of Hurricane Katrina said their agents had told them they didn’t need flood insurance when, clearly, they did. Courts ruled that insurers didn’t have to pay for damage caused by flooding.

• Likewise, many homeowners who lost property in the 2003 San Diego County wildfires complained that their agents had used a computer survey that vastly underestimated the cost of rebuilding their homes. The survey, called Quick Quote, was part of a larger software package sold to insurers to estimate replacement costs and was later removed.

Homeowners often compound the problem by failing to report renovations to their insurers or by simply assuming their coverage is keeping up with inflation and replacement costs, which probably isn’t true.

You might think insurers would err the other way, pushing folks to over-insure their homes. But that’s generally not the case. 

Lulled into complacency

Insurance analyst Brian Sullivan says the annual premiums paid on most policies are too small for insurers to spend much time doing a detailed assessment of customers’ needs.

“If you ask most insurance companies what they’re insuring — how many hardwood floors, how many fireplaces — they have no idea,” said Sullivan, the editor of Risk Information, an industry newsletter. “It’s only companies like Chubb that have (policies with) premiums in the thousands of dollars that will come out and appraise your home and everything in it.”

Homeowners are often lulled into complacency because they have “guaranteed-replacement” or “extended-replacement” policies, which sound like they’ll cover the rebuilding of a home regardless of the cost, said attorney Amy Bach of United Policyholders, the consumer advocacy group.

But true guaranteed-replacement policies are almost extinct, and virtually all insurers cap their payouts at 100% to 150% of the amount for which the home is insured. 

How to ensure adequate coverage

Bach recommends consumers buy the highest cap they can afford and take the following steps:

Use Web tools to estimate replacement costs. Bach recommends AccuCoverage, an MSB site that charges $7.95 and walks you through a questionnaire that usually takes 20 to 30 minutes to complete. Another site, HomeSmart Reports, charges $6.95 and takes less time but offers less detail, Bach said. HomeSmart Reports gives a low and high estimate of what it would cost to replace your home, plus a standard cost of construction in your area, but it doesn’t account for custom features.

Compare the estimate with your policy limits. You’ll find them on the declarations page of your policy. If your insurer can’t explain discrepancies to your satisfaction, start shopping for another insurer.

Don’t be cheap. Make it clear to your insurer or agent that you want the best coverage for your money, not the lowest possible premiums.

Decide on disaster coverage. Floods and earthquakes aren’t covered by your homeowners insurance. If you’re in an area considered at high risk for hurricanes, you may have to buy insurance from a special windstorm-coverage pool. Unless you’re prepared to walk away from your home after a disaster, you need to consider such coverage.

Check your “loss of use.” Homeowner policies typically provide money to pay your rent and related living expenses while your home is being rebuilt. Again, you should find this coverage on the declarations page. If the amount offered wouldn’t cover you for two full years, Bach recommends asking for a higher limit or finding another insurer.

Get “replacement cost,” not “actual cash value.” It’s not just rebuilding coverage that falls short. Many policies severely restrict how much money you’d get to replace your stuff and limit or even exclude some common household items from your policy. If you have a policy that pays out actual cash value on your home’s contents, for example, you’d get a check for what your possessions were worth when they were destroyed, not what they would cost to replace.

It’s much better to spring for replacement cost on your contents. You’d typically still get an initial check for the depreciated value of your items, but after you replaced them (and provided receipts to your insurer), you’d get another check to make you whole. The cost of this coverage is typically about 10% to 20% more than actual-cash-value coverage.

However, you still could be vulnerable. Some policies provide replacement-cost coverage for most items but make exceptions for others. Your policy might give you a check to buy a new couch, for example, but decide to depreciate your carpet and give you only a fraction of the replacement cost.

The only way to know how you’re protected is to read your policy, front to back.

Many policies peg your contents coverage to a percentage of your overall policy limit. If your home is insured for $200,000, for example, your contents coverage might be $80,000 or $100,000 or $150,000, depending on the insurer’s policies. Obviously, there’s a lot of variation, and these limits don’t reflect whether your furniture consists of Chippendale or chipped-and-dented. The only way to be sure you’re adequately covered is to do a detailed household inventory, writing down all of your possessions and what they would cost to replace. A drag? Of course. But it’s time you’ll be glad you invested if you’re ever faced with making a claim. 

Make sure the good stuff has its own insurance. If you own something truly valuable, chances are good that your policy restricts how big a check you’d get. Most policies put payout limits of $1,000 to $2,500 on such items as jewelry, firearms, artwork and antiques. If you want full coverage, you need to purchase a “floater,” or “rider,” on the items at added cost. Consider your individual needs. Your policy likely has some other gaping holes.

Homeowners insurance typically won’t replace equipment you use for a home-based business. Property belonging to a tenant is usually excluded. Damage from certain causes, such as a flood or sewer backup, won’t be covered either. In these cases, you can get supplemental coverage — and you probably should. (See “10 things your insurance may not cover.”)

Protect yourself from lawsuits.

That’s the role of liability coverage. Chances are pretty good that you don’t have enough protection, which means you could be in danger of losing everything you own to someone who decided to sue you. Again, choosing how much liability to buy is tough. You can’t predict who is going to sue you or for how much. Although most insurance experts advise buying liability coverage equal to one or two times your net worth, a jury could come back with a whopping award that bears no relationship to what you own or could earn in a lifetime. Good records, detailed claims and persistence help you get your money faster and avoid problems. Still, trial attorneys tend to go for the easy money and often settle for the amount of your policy — unless you’re vastly underinsured. Then they’re likely to go to the time and trouble of identifying, and going after, all of your available assets. That’s why Steve Vidmar, an insurance defense attorney in New Mexico, recommends that most homeowners have at least $1 million in coverage. That means buying the maximum coverage your policy allows — typically $250,000 to $500,000 — plus an “umbrella” or personal-liability policy that provides coverage up to $1 million. “I’d recommend even higher limits,” Vidmar said, “for those with teenage drivers.” Fortunately, boosting your liability coverage is still relatively cheap. A $1 million umbrella policy usually costs $200 to $300 a year.

 Get the latest from Liz Pulliam Weston. Sign up to receive her free weekly newsletter.

The time to make these adjustments is now. It’s too easy in the chaos of living to put off investing in your coverage, but it’s too late once a disaster strikes.

Liz Pulliam Weston is the Web’s most-read personal-finance writer. She is the author of several books, most recently “Your Credit Score: Your Money & What’s at Stake.” Weston’s award-winning columns appear every Monday and Thursday, exclusively on MSN Money. She also answers reader questions on theYour Money message board.

Updated July 14, 2009

By Joseph K. Vetter with Fran Lostys
From Reader’s Digest

• Kylie Grayden, 17, of Shorewood, Minnesota, glanced at her iPod while driving with her cousin and a friend, both 17. When she veered off the road and flipped her car into a ditch, she and her friend were killed.

• Heading home from practice, Jonathan Chapman, a 16-year-old high school basketball player from La Plata, Maryland, was reportedly speeding when his car rammed an SUV. He and three friends, ages 14 to 16, were killed.

• Five days after graduating from high school, Bailey Goodman, 17, of Fairport, New York, and four classmates were on their way to her family’s cottage. Moments after text messages were exchanged on Bailey’s cell phone, she slammed into an oncoming truck. All five teens were killed.

You have just applied for a credit card and was shocked when you were turned down due to a low credit score. This is impossible because you’ve always paid your bills on time. Recently, a debt collector called to demand payment on a medical bill that you never saw a doctor for. In the mail you find a credit card that you’ve never applied for.

What’s happening? You could be the victim of identity theft. Someone is using your personal information to obtain credit. But then the bills go unpaid, the company itself or a debt collection company contacts you to demand payment. As a result, your credit report is likely to be impacted and contain negative information about your bill-payment history. Your credit score has probably been lowered considerably, making it difficult or impossible to obtain new credit yourself. Let us help you before this unfortunate event happens.

You need to be well aware of the identity theft epidemic that is happening all around us. Thieves only need one single piece of personal information to steal your identity and turn your financial life upside down. According to the Federal Trade Commission there are nearly 10 million people, or five percent of the adult population, who become victims of identity theft each year. Identity theft costs victims an estimated $5 billion in out-of-pocket expenses from trying to reclaim their good credit.

For identity theft prevention tips and the rest of the article visit our webpage and check out our February 2010 newsletter, or simply click on this link http://brownellinsurance.com/2010newsletters/feb10/feb10.html

2. Raise Your Deductible – The higher your deductible, the more money you can save on your premiums. We recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25%.

3. Don’t Confuse What You Paid For Your House With Rebuilding Costs – The land under your house isn’t at risk from theft, windstorm, fire and the other perils covered in your homeowner’s policy, so we don’t include its value in deciding how much homeowner’s insurance to buy. Notify us if you make upgrades or increase the size of your home so that we can increase your coverage for the improvements.

4. Buy Your Home and Automobile Policies From The Same Insurer – Many of our companies that sell homeowners, auto and liability coverage will take 5% to 15% off your premium if you buy two or more policies from them.

5. Updates On Your Home Can Save You $$$ On Insurance – If you own an older home, consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage. The age of your roof can also affect your premium.

6. Improve Your Home Security – You can usually get discounts of at least 5% for a smoke detector, burglar alarm or dead bolt locks. Most of our companies offer to cut your premium by as much as 15% or 20% if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations. Please notify us if you add one of these systems to get your discount.