We hope you had a tremendous Holiday Season with your family.

Hard to believe but it is 2010! It seems like we just started the 21st century and we are already ten years in. Time certainly does fly.

There have been rumors that we have moved. This is not the case. Due to the 911 decision of addresses in our area, our new address is 5 Nashua Rd, Londonderry, NH 03038. We know that the zip code and town do not match but we have been assured by 911 and the US Postal Service that our mail will be delivered properly. Our letterhead, businesscards and contact addresses with our companies will slowly start to change to our new address over the next few months. Rest assured we have not moved only our mailbox did!

Thank you for your valued business throughout the years and the opportunity to be your trusted insurance agency.

Rick, Marie and the entire Brownell Insurance Staff

What if you were sued for a weather-related mishap on your property?
Or you were found at fault in a major traffic accident?
Would you be covered by your home or auto insurance?

Probably not for the full amount of what the court will award to the victim on a regular auto or homeowner's policy but... If you had an umbrella policy you most likely would be covered for the full amount including legal fees. By not being covered you could be risking everything... your car, your home, the lifestyle you and your family are accustomed to, and possibly even your future income.

Typically, your auto and home policies' liability limits are not high enough to cover large court judgments that are being awarded these days. Personal liability lawsuits can result in judgments amounting to high six and seven figures. There are also some forms of liability that are not covered by your regular insurances. These include libel, slander, defamation of character or invasion of privacy. An umbrella policy would cover you if you were sued for this kind of event.

Umbrella liability insurance is so named because it acts like an umbrella, sitting on top of your underlying auto and homeowners (renters) liability policies to provide extra protection. (Even if you don’t own a home, remember that you still have assets that can be attached such as you income). Some examples of where umbrella coverage often comes into play:

• An auto accident in which you are sued for being at fault under your auto insurance policy.
• Your neighbor slips and falls on your property, and you are sued under your homeowners insurance for negligence (Example: Not clearing the snow and ice from your steps).
• A natural disaster in which another person's property is damaged by a tree on your property crashing down on their vehicle or home injuring the occupants. Your homeowners will cover but will it be enough to cover the medical bills?

Your auto and homeowners policies will be able to pay at least some of the funds needed to settle the legal claims. But what if a settlement (or judgment, if it goes to court) is $800,000 and you only have $300,000 of liability insurance? The insurer would pay its $300,000, but where are you going to get the other $500,000? Virtually, everything you own would be fair game to pay off the debt. The only good news is that some states protect certain assets (like your home) from seizure.

An umbrella insurance policy is designed to give one added liability protection above and beyond the limits on homeowners, auto, and watercraft personal insurance policies. With an umbrella policy, depending on the insurance company, one can add an additional 1-5 million in liability protection. This protection is designed to "kick-in" when the liability on other current policies has been exhausted.

Umbrella liability insurance usually carries a high deductible of $300,000 or more. It's designed not to kick in until your other policies are tapped out. Typical umbrella policies require you to have homeowners and auto liability insurance equal to the amount of your deductible. It's a good idea to try and get your umbrella liability, homeowners, and automobile policies from the same company; there is usually a substantial premium discount. Additionally, you eliminate the potential nightmare of dealing with different insurance companies if something should happen, where each would likely try to shift payment responsibility to the others, leaving you caught in the middle.

So even with lawsuits that are virtually everywhere... There is good news. A personal liability umbrella insurance policy can give one added liability protection without a large added cost. Additional liability insurance is often inexpensive, especially compared to the added coverage one gains. Furthermore, liability insurance covers one's non-business activities anywhere in the world. Having the added protection of a liability umbrella policy is coverage no one should go without. Call us for a quote and we will gladly answer any further questions you may have.

When You Can't Return Home: What Does "Loss of Use" Coverage Actually Cover?

Your homeowner's insurance policy will pay to repair damage to your home caused by a fire, windstorm or other covered cause of loss. But when you and your family incur expenses for moving out of your home while repairs are made, who picks up the tab? An often-overlooked but essential function of your homeowner's policy is "additional living expenses" (also called "loss of use" or "Part D") coverage. Additional living expenses coverage will pay the necessary increase in living expenses required to maintain your family's current standard of living while the house is being repaired. Examples of expenses typically covered would include the cost of hotel, food bills in excess of normal grocery/restaurant bills, cooking supplies and the cost of moving property into storage.

The good news is that payment for these expenses usually does not stop if the policy expires. Rather, they will continue to pay until the limit is used up, the home is repaired to a habitable state, or you permanently relocate. The bad news is that many homeowners erroneously believe that the policy covers 100 percent of additional living expenses until the home is habitable. Realistically, very few policies do this. In most cases, home insurance companies place a limit or cap on loss-of-use payments. For example, many homeowner policies will only offer loss-of-use coverage as a percentage of the limit of insurance carried on the dwelling; 20 percent is common. Others may specify a flat dollar amount.

Usually, a covered loss must occur for any insurance dollars to be paid for additional living expenses. The one exception is if your home is not accessible due to civil authority or government mandate triggered by nearby damage. For example, in 2009, wildfires in California triggered mandatory evacuations that prevented tens of thousands of homeowners from going home. If homes in close proximity to yours are burning, there’s a chance the government will close roads and/or prevent you from entering your property even though your home has not yet suffered a direct loss. In this situation, additional living expense payments are often limited to two weeks.

Homeowners who receive additional income by renting a portion of their home should also pay close attention to the Part D limit. This limit also applies to replacing lost rental income while the damaged house is being repaired. Here’s the important question: How do you know if your policy’s Part D limit is sufficient? The trouble is that important factors are variable. For example, how do you know how long you will be out of your house? Building codes and permits cause rebuilding efforts to proceed slowly in many parts of the country. Calling a local building contractor to gain some idea is a good start but there is no exact prediction.

Further, how do you know what expenses you will incur? According to Hotels.com’s 2009 hotel price index, the average hotel room in the U.S. costs $115 per night! Add this and other expenses to a lengthy, unpredictable repair schedule and the possibility of exhausting your Part D policy limit before your home is habitable could become a serious financial problem.

The last thing you want to hear is that your loss-of-use coverage has run out before you can go home. Fortunately, Brownell Insurance Center understands this exposure and can help you weigh your options, including those that may increase your loss-of-use coverage limit. For a thorough review of your homeowner’s policy, call us and we would gladly review your coverages to be sure you are adequately covered in the event of a loss.

Information provided by: TrustedChoice.com, November 2009

Top 10 Driving Safety Tips to Avoid an Accident

On average, there are more than six million auto accidents on U.S. roads every year. Sadly, 34,017 of these crashes proved to be fatal in 2008, according to the National Highway Traffic Safety Administration (NHTSA). Due to increased travel and new devices that can easy distract us, chances are good either you or someone you love will be in an auto accident. However, there are numerous precautions you can take while you are driving to reduce your risk of having an accident. Most of us are taught to wear our seatbelts, drive defensively, closely follow driving laws and be considerate to other drivers, but many times we become lax to these commonsense driving policies.

Follow these top 10 driving safety tips to reduce your risk of having an auto accident:

1. Never drink and drive, even if you’ve just had one or two drinks … Get a ride from a friend or take a taxi. Coffee will not help!
2. Don’t give in to distractions, such as playing with your iPod, eating, reading a text message, or picking up an item from the car’s floor.
3. Dodge road rage. If you come across an aggressive driver avoid them. Don’t antagonize, return barbs or encourage them. Keep your cool and call the police if the driver is putting you and other motorists at risk.
4. Keep a safe distance between your car and the vehicle in front of you. For every 10 miles per hour of your driving speed, leave at least one car length between your car and the car in front of you.
5. Try to maintain a consistent speed. Use cruise control if you are on a highway. Don’t continually slow down and speed up unless the posted speed limit changes.
6. Keep your car in tip-top shape. Get regular car maintenance, oil changes and tune ups. Extremely important to check the condition of your tires at least once a month.
7. Stay alert when you drive through intersections. Most accidents occur in intersections, so be sure to look left, then right, then left again to make sure it is safe to pass through. Don’t run yellow traffic lights.
8. Keep your side mirrors and rear-view mirrors adjusted properly. As you drive, check your side and rear-view mirrors every 30 seconds to make sure you’re in the clear.
9. Be aware of road conditions and react appropriately. For example, turn on your lights if you’re driving at dusk or dawn or in the rain. If the roads are wet, snowy or icy and you feel your car starting to hydroplane, don’t brake suddenly or turn the steering wheel. This could send you into a skid. Instead, ease off the gas pedal slowly and steer straight until you feel your tires regain traction.
10. Sign up for a defensive driving class. With the proper training, you’ll be able to react more quickly to potential accidents on the road. Many auto insurance companies will give you discounts for taking these courses.

Information Source: AAA Website

Ask Marie!

This month's ???
When should I consider removing collision insurance from my automobile? I have a 2005 Toyota Corolla with 125,000 miles on it and I just paid off my auto loan.

Answer: There are many factors to consider when making this decision. Some of the basic considerations are the mileage on the car, the condition of the vehicle overall, and if you could afford to pay for a new car out of pocket. The question really needs to be addressed on a case by case basis.

If the mileage is low and the car is in good condition, the book value on the vehicle should be fairly high. You can check out the value of your vehicle at:

Kelly Blue Book

NADA Guides

At this point you need to decide if you are willing to pay the collision premium knowing that the most you will receive is a value close to the book value minus your deductible. Say the value of your vehicle is about $3000 and the cost of the collision coverage for a year is about $300 with a $500 deductible, you will receive about $2200 if your car is totaled. This still might be worth it but as the car ages this pay out will greatly decrease making the cost of the insurance too high to be worth while.

If you don't have the cash available to replace the car I'd suggest you keep the collision, particularly if you need the car for work. In my opinion it's even a good idea to have collision or comprehensive even if you can afford to replace the car but raise your deductibles to lower the premium. It is up to you to decide what value of the vehicle is worth insuring to you.

Some points to ponder if you don’t carry collision coverage on your vehicle:

1. If you are involved in an accident with another car your insurance company immediately pays to repair or replace your car (less deductible). In New Hampshire, it does matter who was at fault. Your insurance company is more likely to defend you against claims that you were at fault and pursues the other driver for payment. Without collision even if the other driver is at fault you might have to wait months to get a settlement check from the other company and you might have to pursue settlement on your own. If the other driver is found at fault you get a refund of your deductible when the other driver or his insurance company settles.
2. There are too many people illegally driving without insurance, usually the worst drivers who can't afford insurance because of numerous accidents. If you get hit by one you probably are out the money even if the accident isn't your fault. You would need to take them to court and even when you get a judgment good luck in collecting your money. If you have collision you turn it over to your insurance company, get a check, and let the insurance company handle everything.
3. Sometimes one car accidents happen, even to the best of drivers. The best rule is, take the risks you can bear, and insure the ones you can't. Look up the book value of your car: that, minus the deductible. If you had to come up that much money, would it break your finances? If not, then drop collision altogether. Otherwise, you need at least some collision coverage so raise your deductibles. (Of course, if your car isn't paid off, the bank will insist that you insure it). If you continue to question your decision, don’t hesitate to give us a call. We are glad to discuss this issue with you.

Come See Our New Website!

Thanks to the wonderful services of Fox Run Designs, we have a new website! We will continue to add information to our website frequently so that we may help keep you well informed regarding your insurances.

It would be most appreciated if you would send an email to Marie@Brownellinsurance.com to let us know what you think of our new website and if there is anything else you would like to see us include. We will gladly send you a small token of our appreciation for your comments...(Free Appetizer at T-Bones Restaurant).

There are many other agencies that can provide insurance coverages to protect your family and business, but none of them offer the SERVICE you can expect from Brownell Insurance Center, Inc (BIC) and Brownell Financial Services Group, LLC (BFSG). Our mission is to help you identify your business and personal insurance needs accurately and professionally. We will then diligently find the most cost effective solutions available to accomplish your insurance needs and goals. BIC/BFSG is committed to providing its clients with superior service for all of their insurance needs and treating all people with respect and understanding.

We thank you for your continued patronage and for telling others of our 'friendly' service.

Your referrals are the deepest form of flattery.

Sincerely, Rick & Marie Brownell Brownell Insurance Center

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