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Get covered with umbrella insurance

Even careful people can find themselves liable for the injury of others. Catastrophic events don’t happen often, but they can happen to anyone at any time. For example:

In the event that the costs associated with an accident or injury exceed your auto or home policy’s standard liability coverage, an umbrella (additional liability) policy can help cover the additional funds you may owe—and that amount can be significant.

What do you have to lose?

Umbrella insurance is considered essential to building financial security for you and your family. It helps protect your assets from the unexpected. You’ve worked hard for your home, car, and other assets; however, a large lawsuit can wipe out your current savings as well as what you stand to earn in the future. Imagine the impact on your family. Think about it—how much can you afford to lose?

Most people are surprised at how much exposure to risk they have as they lead their everyday lives. Examples include:

What does umbrella insurance cover?

Umbrella insurance provides extra coverage for medical bills or lawsuits that exceed the limits of your home insurance, as well as the damage you do to the personal property of others.

Besides the extra liability protection, a personal umbrella policy will pay your legal expenses if a liability claim is brought against you, whether the claim is legitimate or not. These costs are paid in addition to your policy limit.

A personal umbrella liability policy will also provide you with protection if you face liability for certain acts not usually covered by your home policy, including:

What doesn’t umbrella insurance cover?

Umbrella insurance will not cover you for:

Protect your financial security

If you have auto and home/renters insurance with WEA Member Benefits, you may be eligible to participate in our umbrella insurance program. The great news is that you can buy $1 million of additional liability protection very economically—or choose from $500,000, $2 million, or $3 million coverage options.

Premiums are determined by circumstances. Provided you qualify, it is one of the most economical ways to protect your assets and future earnings.
As an additional option, we offer up to $1 million of uninsured and underinsured coverage. Some companies are no longer offering this coverage, but we feel it’s important as it helps protect our members, their family, and their passengers.

>Learn more: weabenefits.com/umbrella
>Request a quote: weabenefits.com/quickquote or 1-800-279-4030

Is it time to evaluate your auto insurance?

Too little insurance can leave you financially exposed, but too much may mean you’re paying more than you need to. Ensuring you have the most appropriate coverage to fit your needs is to your benefit—and your family’s.

If you haven’t checked your auto insurance policy coverage lately, we can help.

Get an insurance review

If you have an auto policy with us and haven’t reviewed it for a while, call us—what may have made sense a year ago may not make sense now. For example, if you drive an older vehicle, maybe it makes sense to drop collision coverage. Or it may be time to choose a higher deductible. We can take a look at your needs and your existing coverage and give you recommendations.

Contact us to get an insurance quote

If you have a policy with another company and have never contacted us for a quote (or it’s been a while), it’s worth checking with us again. But keep this in mind: Deciding on insurance coverage is about much more than price. When you simplify the purchasing process for insurance by basing it mainly on price, it diminishes your investment and could put you at financial risk. Cheaper doesn’t always mean better, just like expensive doesn’t mean more value.

Price means very little without considering the value of proper coverage, great service, and knowing that you and your family are protected. Our Personal Insurance Consultants can help you gain a better understanding of your insurance needs and give you confidence to make the right decision for you and your family. Talk with us and you’ll become a better insurance consumer, whether you choose us or not.

Here are a few questions to ask yourself when comparing insurers:

We’re here to help you make the best insurance decisions for your personal needs. Give us a call at 1-800-279-4030.

Protect yourself from identity theft

Identity theft happens when someone steals your personal information to commit fraud. Most people who experience it have to take several steps to recover their identity and clean up the mess that was made—by no fault of their own.

Criminals have many ways to obtain your personally identifiable information (PII). They may send e-mails or make calls posing as trusted associates or officials (known as “phishing”), utilize hardware/software or service systems, create fake social media accounts to impersonate you, or even steal your mail or garbage to get important account numbers—just to name a few.

Once they have your PII, they can use your name and address, credit card or bank account numbers, Social Security number, or medical insurance account numbers to commit fraud. This may include buying things with your credit card or opening new ones, opening utility accounts, stealing your tax refund, getting medical care, or pretending to be you if they’re arrested.

The frequency of identity theft has increased dramatically in recent years. According to a revised 2017 “Victims of Identity Theft” report from the U.S. Department of Justice:

The three d’s

Unfortunately, if identity theft happens to you, you’re responsible for what the thief does with your PII. You may even have to pay for anything they buy. So it’s important to do what you can to minimize your risk of becoming an identity theft victim.

FINRA (Financial Industry Regulatory Authority, Inc.), an organization that plays a critical role in ensuring the integrity of America’s financial system, has outlined a simple practice that anyone can do: The Three D’s: Deter, Detect, Defend. Here are some tips you can follow using their easy-to-remember outline.

Deter

While most people understand the need to protect their Social Security number and PIN, other identifiers could help a thief access your PII. Many people actively publish data online about themselves through social media, organizational Web sites, and e-mail signature blocks, and don’t think much about it. But the more information a thief has (such as your name, address, e-mail, birthdate, maiden name, gender), the easier it can be to assume your identity. Be thoughtful about what you share and where.

Detect

Defend

As soon as you suspect a problem, it’s time to take action. Warning signs can include unfamiliar accounts on your credit report, strange withdrawals from your bank account, or bills or calls about debts that aren’t yours. If you’re a victim of identity theft:

Your insurance

Wondering if you’re covered with your WEA Member Benefits’ home insurance policy? The answer is yes. Your policy reimburses up to $10,000 for expenses that occur from identity theft. Benefits include:

Remember, even the most careful among us can fall victim to identity theft. So it’s more important than ever to protect all of your personal identifiable information, because this information is often a key ingredient in a scam.

When should I share my Social Security number?

While not every request for your Social Security number is an effort to steal your identity, not every request is mandatory either. In general, you may need to provide your Social Security number to:

Sources: FINRA, FTC, usa.gov, nsa.gov

Protecting your LARGEST investment

Home. The word conjures up safety, security, and family. It likely includes everyone and everything that mean the most to you.

And for many people, their home is their greatest financial asset. With so much time, attention, and money invested, it’s crucial to make sure your home is properly protected.

But many people are putting this important investment, and their family, at more risk than they realize because they don’t understand their home insurance coverage and the factors that need to be considered.

Whether you’re a new home buyer or you’ve lived in your home for many years, it’s important to understand that your home and the people in it need proper protection.

Coverage considerations

Home insurance includes three types of coverage: structure, belongings, and liability. Each category has its own considerations.

Structure: Your home

It costs more to rebuild than you may think. Many people underestimate the cost to rebuild their home in case of loss. According to Marshall & Swift/Boeckh, two out of every three homes nationwide are underinsured by as much as 27%. Would you be prepared to foot the additional 27% of the cost to rebuild your home?

When insuring your home, it should be insured for 100% of its replacement cost. This is different from both the assessed value (the dollar amount placed on your home by your local government for taxation purposes) and the market value (how much you could expect to get for your home in the current real estate market if you were to sell). Replacement cost reflects how much it would cost to rebuild your house in the same spot, with materials of like-kind and quality.

Replacement cost is different from both assessed value and market value. Make sure you know the difference when insuring your home.

“Rebuilding a home is almost always more expensive than building a comparable new one,” explains Steve Schofield, Personal Insurance Consultant at Member Benefits. “Demolition and removal of a destroyed home has to occur before rebuilding even begins. Local ordinances often place regulations on demolition, which can increase expenses. And when working on a single home, builders can’t buy materials at volume discounts. Plus, it generally takes longer due to the complexities of rebuilding.

“Think of it this way—housing prices rise and fall, but the cost of building materials and labor always continue to rise.”

For homes built during or after 1950, Member Benefits’ home policy pays the full cost to repair or replace your home with materials of like kind and quality without the limits imposed by most other insurers. For homes built prior to 1950, this coverage provides up to 125% of the dwelling limit on your policy.

Water damage isn’t automatically covered. While some types of water damage may be covered under your home policy, you need separate coverage for flooding. Flood coverage can only be purchased through the National Flood Insurance Program (NFIP). The NFIP offers flood insurance to homeowners, renters, and business owners if their community participates in the NFIP. Member Benefits sells and services these flood policies, which must be in place for 30 days before coverage begins.

Water damage due to drain and sewer backup or sump pump overflow may be covered if you’ve added an endorsement to your policy.

Don’t set it and forget it. Many homeowners eventually find themselves without enough coverage because they buy their policy and never look at it again. “We recommend you review your insurance coverages at least every other year, but it’s especially important to adjust your policy when you make improvements like upgrading a kitchen with custom cabinets or adding sqaure footage to your home,” explains Steve. Some companies offer inflation guard protection that automatically adjusts your coverage limits by a certain percentage each year to help keep up with increases in material and personal property costs. “However, members shouldn’t rely solely on this to keep their coverage current. Periodic insurance reviews will help ensure your coverage is still appropriate, which can mean eliminating coverages you no longer need and adding new ones you do. We can help you with that.”

Belongings: Your stuff

Personal property coverage. Home insurance also covers your personal assets up to policy limits. At Member Benefits, if your personal property is destroyed or damaged, our policy provides coverage equal to 75% of your residence coverage limit.

If personal property is stolen or damaged by a covered peril while away from home, our policy pays up to 100% of your personal property limit. We pay up to 10% of your personal property limit for property that is with your student while away at college.

Schedule high value items. Items that are “lost” are not covered unless they are scheduled. Scheduled personal property coverage is an optional add-on to your home insurance policy that provides coverage for a greater number of risks and may increase the coverage limits on specific, high-value items. This gives you additional coverage as well as protection from certain types of accidental loss such as droppage or mysterious disappearance. When you schedule property such as jewelry or musical instruments, you receive coverage up to the amount you specify. “Protection for your boat, snowmobile, or recreational vehicle can also be obtained by scheduling them on your policy,” adds Steve. A deductible may apply to some items.

Liability: Your responsibility

Accidents happen. A visitor slips on the ice on your front walk. Your runaway grocery cart causes someone to fall and break a hip. Accidents yes, but the reality is that you could be held financially responsible in any one of these situations, and each could easily exceed $100,000.

Liability claims against homeowners are common. Having more liability coverage is a relatively inexpensive way to protect your assets.

Liability claims against homeowners are quite common. Most experts recommend at least $300,000 worth of home liability coverage. Others, like Member Benefits, recommend even more. “Our home policy includes $500,000 of liability coverage. We don’t even offer anything lower,” says Steve. “The additional coverage is a relatively inexpensive way for members to protect their assets.” Liability coverage offers protection for you and all family members who live with you, and it typically covers incidents on or away from your property.

Avoid attractive nuisances. Outdoor additions such as trampolines and pools increase your liability. You may not know it, but from an insurance perspective, they’re considered an attractive nuisance—something that is likely to entice children and could pose a risk of injury. Other examples include artificial ponds, discarded appliances, and abandoned cars.

You have the burden of taking adequate measures to protect children. Even if someone comes over and uses the trampoline or pool without your knowledge, you may be liable for any potential injury they may suffer from it.

Insurers may handle attractive nuisances in several ways, from no exclusions or coverage with precautions, to specific exclusions or refusal to insure the home. Be sure to talk to your insurance company so that you clearly understand your specific options, obligations, and coverages in your plan.

Pooch particulars. Dog ownership is also more popular than ever. In fact, almost 90 million dogs are owned by 60.2 million households in the United States (Insurance Information Institute). They also report that dog bites and other dog-related injuries accounted for nearly one-third of all homeowners liability claim dollars paid out in 2018, costing $675 million.

Generally, home insurance policies do not exclude “canine exposure” from coverage. However, each insurer may handle the risk differently, from charging a higher premium, denying coverage for breeds construed as dangerous, or requiring the owners to sign a liability waiver for dog bites. Be aware that you run the risk of nonrenewal following a dog bite incident.

Consider additional protection. You may want to take liability protection a step further. Additional liability insurance (umbrella insurance) protects you when the unexpected happens by providing protection above and beyond your existing home insurance policy. And the good news is you can buy $1 million of additional liability protection very economically.

If you have a trampoline, pool, or dog, you may want to seriously consider umbrella insurance. However, don’t assume that because you have this policy that you are covered. Under some circumstances, you may not be. Contact your insurer so you understand your policy guidelines.

Create a record of your stuff

If you experience a fire or other disaster at home, would you be able to remember EVERYTHING you possess? Having an up-to-date home inventory can help you get your claim settled faster, verify losses on your income tax return, and help you purchase the correct amount of insurance.

A home inventory can make the claims process go much easier if you ever need it.

You can get a free home inventory eBook by visiting weabenefits.com/homeinventory. Not only does it offer you a checklist to follow, but we also share some tips for how to get started, make the process easier, and keep it safely stored. Remember, we’re here as a resource if you need help or have questions.

Home sweet home

Protecting your home is also protecting everything that’s important to you—including your family. Knowing that you have reviewed your coverages, understand your liability, and made a record of your possessions will only make living in your largest investment that much sweeter because you’re properly protected.

RESOURCES

Personal Property Home Inventory eBook
Download our free home inventory eBook at weabenefits.com/homeinventory and pick up tips on how to get started, how to make the process a little less daunting, and when to consider insurance scheduling.

Buying a Home eBook
In the process of buying your first home, or thinking about purchasing one down the road? Our interactive Financial Guide: Buying a Home eBook is full of information on purchasing, evaluating, and protecting your new home, and includes tips on becoming a better insurance consumer. Find it, along with other helpful eBooks, at weabenefits.com/ebooks.

Free insurance review
Our personal insurance consultants can review your current insurance policy and help you understand the different types of home policy coverages and appropriate limits for the physical structure of your home, your personal belongings, and liability to others. Call 1-800-279-4030 or set up a personal phone consultation time at weabenefits.com/consults.

The surprising co$t of car safety

If you’re thinking that it’s more expensive today than in the past to own a car, you’re right. In fact, the cost of an average auto insurance claim in just the past few years is trending upward and far exceeding inflation. And it doesn’t look like this trend is going away anytime soon.

As safety features become more common, more vehicles will come with higher costs. For example, by 2022, nearly every vehicle sold in the U.S. will come standard with automatic emergency braking. But the price for this improvement also means even a small accident could require thousands of dollars to repair.

So it’s more important than ever to understand the new costs that come with your car and do what you can to keep your costs down.

Minor car damage can be a major expense

As auto manufacturers move toward increased safety and autonomous driving capabilities, more safety and navigation sensors have been added to our cars. Most of the sensors are located near the outer surface of cars in order to work. Unfortunately, this is also the most vulnerable spot in an accident—even in a seemingly minor fender bender. And sometimes, even if the sensors are not damaged, the presence of sensors elsewhere in the car can be costly.

For example, front collision sensors may be mounted on the car’s rearview mirror stand just inside the windshield. These sensors look through the windshield and for them to work properly, the windshield glass has to meet very specific requirements for clarity and lack of distortion. Because of this, even if your windshield has minor damage, it often means you’ll need to replace it with an original equipment manufacturer windshield, not the less expensive aftermarket glass. This can more than double the average cost of windshield replacement. Adding to the cost is the technician who must recalibrate the front collision sensors for the new glass, potentially adding hundreds to the repair bill.

Backup cameras, touch screen controls, and blind-spot monitoring are other examples that may make us feel safer but come at a price. Sensors on bumpers and side mirrors in particular are easily hit—and with the added technology, are more expensive to repair and replace.

It’s estimated that the complexity of new vehicle electronics is ten times what it was just seven years ago, making it more akin to computer repair. Further, each car manufacturer has its own proprietary system of software, hardware, and processes to determine potential problems with the sensors, which can take more time and involve more steps than ever before. Computerized scans need to continue until everything is working per the manufacturer’s specifications. In addition, car dealers or third-party consultants often have to be involved to interpret the codes the scanners produce. And it’s extremely important to get it right—the system is very exact and if not calibrated correctly, it could literally mean a matter of life or death for the occupants of the vehicle.

Rising claims costs

These safety features that were once uncommon are quickly becoming standard on many vehicles. The increased costs for repair, manufacturer-approved parts, and labor costs also mean more expensive insurance claims.

Other factors contributing to higher insurance claims include:

Practice prevention

The importance of defensive driving can’t be stressed enough. While you can’t avoid every mishap, you can lower your chances of one—which may help keep your costs down.

Make the most of your insurance

According to the Bureau of Labor Statistics, the cost of living rose 2.4 percent in 2018, but the cost of motor vehicle insurance and hospital services rose faster (7.4 percent and 4.4 percent, respectively). So it’s more important than ever to go with the right insurance coverage for your needs so you don’t risk leaving yourself (and your family) exposed to financial loss or purchasing coverages you don’t need.

People tend to think about risks they have experience with or can conceive of—like the fender bender. The risk of catastrophic events is often dismissed because they happen less frequently, yet they can be far more financially devastating. Member Benefits recommends a minimum of $250,000/$500,000 (per person limit/per accident limit) for bodily injury and $100,000 for property damage.

Unfortunately, the costs you may owe in an at-fault accident can far exceed these limits. Because typical auto and home policies can still leave you financially vulnerable, we recommend you also have personal liability insurance (umbrella insurance) for additional protection. Umbrella insurance provides you with significant additional coverage at a very low cost.

Some ways you may be able to lower your insurance costs include:

Get the right protection for your circumstances. Contact us to review your current insurance policy and answer your questions about auto insurance by calling 1-800-279-4030.

Sources: Property & Liability Resource Bureau, MARKETPLACE®, Insurance Information Institute, Edmunds.

Have you planned for this financial risk?

The duration of paid care varies widely. However, according to LongTermCare.gov, about 69% of those who turned 65 in 2017 will need an average of three years of some kind of LTC during their lifetime. And that can be costly. For example, in Wisconsin, the median cost for a semiprivate room in a nursing home for just one month is $8,334 (Genworth Cost of Care Survey 2018).

Unfortunately, most people haven’t planned for this financial risk—only about 7.2 million Americans have LTC insurance (AARP). For many, this means losing their wealth in a short period of time, even for a relatively brief nursing home stay.

Because neither health insurance nor Medicare was designed to pay for LTC services, individuals who require these services as a result of an accident or illness may need to dip into their personal savings or use other assets to cover the costs…unless they have LTC insurance.

LTC insurance can be more affordable than you think. If you meet requirements, plans may include rate caps, limited-time pay options, or the ability to insure two people for a discounted premium.

Contact us at 1-800-279-4030 for more information on our long-term care insurance program.

Protect yourself from uninsured drivers

Despite a mandatory minimum car insurance requirement that includes uninsured motorist (UM) and underinsured motorist (UIM) coverage, over 14% of drivers in Wisconsin do not have auto insurance (Uninsured Motorists, 2017 Edition, Insurance Research Council). Nationally, one out of every eight drivers does not carry auto insurance coverage.

Injuries to you or your family from an auto accident can create considerable financial hardship if the at-fault driver has insufficient insurance and/or has no other financial means to compensate you for your losses. However, if you find yourself in this situation, you may be able to receive compensation for your injuries and other costs from your own UM/UIM coverage.

It’s not only important that you have UM/UIM coverage, but that you have the appropriate amount of coverage to avoid a potential financial catastrophe.

What is UM/UIM coverage?

UM coverage protects you and your family if you are injured by another driver in a hit-and-run accident or if the other driver has no auto insurance.

UIM coverage is triggered when you’re in an accident with an at-fault driver who has insufficient limits of liability insurance to cover your damages.

What does it cover?

UM/UIM coverage covers situations including:

UM/UIM coverage also covers:

How much coverage should I have?

While all Wisconsin drivers are required by law to have UM and UIM coverage on their auto policies, the amount of coverage you choose is an important consideration.

Having an adequate amount of UM/UIM coverage can help protect your finances. The Wisconsin state minimum for UM coverage is $25,000 per person and $50,000 per accident. UIM coverage can be rejected, but if taken the minimum is $50,000/$100,000. However, Member Benefits typically recommends much higher minimum coverages.

When considering how much coverage you need, think about the real costs associated with injury, lost wages, and more if you’re in an accident with a UM or UIM motorist. However, every situation is different. Let one of our personal insurance consultants help determine the right amount of coverage for you.

The bottom line

Don’t risk your financial security if you’re in a situation where someone else is not covered. Make sure you’re properly insured—we can help you get the coverage that is best for you.

Questions about UM/UIM insurance coverage? We’ll help you become a more knowledgeable insurance consumer. Call 1-800-279-4030 or sign up for a phone consultation.

At risk: Are you taking a financial gamble with your current insurance coverage?

Risk and responsibility are part of our daily lives. We take a chance every time we get behind the wheel. Accidents happen in our homes. Sometimes people are sued for what they say or write.

And sometimes you are the one responsible. Are you confident your finances will be secure if the worst happens? You may be surprised at what your insurance actually covers—and doesn’t cover.

In the car

Auto liability insurance is required by law in most states. The two parts that are required are bodily injury and property damage liability coverage.

If you cause an accident that injures someone else, bodily injury liability protects you against claims up to the stated amounts for medical expenses, lost wages, pain and suffering, and other losses.

If you are at fault for damage to another person’s property, such as a car, its contents, or other property you damage in an accident, property damage liability coverage helps pay for their repairs.

According to the Insurance Information Institute, both the severity and the frequency of bodily injury as well as property damage claims have grown significantly in recent years. The increasing costs involved are affecting the price of auto insurance across the industry. In the two years ending in March 2016, for example, insurance claim costs rose 13%—more than 10 times the inflation rate.

Why so expensive? Several factors are at play. The cost of auto body work has risen nearly 40% more than prices overall since 2005. Repairs on newer cars are more complex and costly. People are driving more miles as unemployment rates are down. Medical costs continue to rise. While weather is variable, data shows there are rising claims in regions with more severe weather conditions. And finally—and what many consider to be a top danger on the road—the rise in distracted driving accidents, especially with cell phones, adds to the number of accidents and their seriousness.

Member Benefits recommends a minimum of $250,000/$500,000 (per person limit/per accident limit) for bodily injury and $100,000 for property damage. However, the costs you may owe in an at-fault accident can far exceed these limits.

At home

If someone falls down the stairs in your home and is injured, you could be sued for damages. Personal liability coverage is part of your home or renters insurance policy. It can include coverage for medical bills, pain and suffering, lost wages, legal fees, and even death benefits if a guest has a fatal accident on your property. It also provides coverage for accidental damage you may cause on someone else’s property.

If you have a pool or backyard trampoline, you could be at risk. Even if someone comes over and uses them without your knowledge, you may be liable for any potential injury they may suffer—and your home insurance may not cover it.

Keep in mind that your home or renters policy will only pay up to the policy limit, so if you are found responsible for paying any negotiated or court determined damages, that amount could easily exceed your policy limits—putting your future earnings at risk. In recent court cases, certain plaintiffs have been awarded damages of several million dollars.

Get proper protection

Because typical auto and home policies can still leave you financially vulnerable, we recommend you also have personal liability insurance (umbrella insurance) for additional protection.

Umbrella insurance provides you with significant additional coverage at a very low cost. It can also provide protection for certain acts not covered by your home policy, such as false arrest or imprisonment, libel or slander, defamation of character, invasion of privacy, or wrongful eviction.

No one expects to be responsible for catastrophic loss, but it does happen. And the risks are very real, even if you carry the highest liability limits on your auto and home insurance.

Protect yourself. Contact us to review your current insurance and answer your questions about umbrella insurance by calling 1-800-279-4030. Or sign up for a personal consultation at weabenefits.com/consults.

Clearing up claims confusion

We offer some clarity on the most common questions we receive—and where our coverage differs from other companies. Some of the answers may surprise you!

Auto Insurance

My car is a total loss. But I’ll get a brand new car, right?

The amount of coverage for your automobile is based on depreciation of the vehicle. So for example, if your 2005 Ford Escape is involved in a total loss accident, you will receive a settlement based on the value of a 2005 Ford Escape, not a brand new Ford Escape.

However, if you’re with Member Benefits and have a total loss of a new vehicle that is less than 180 days (6 months) old, are the original owner, and carry both collision and comprehensive coverages, we will pay the original purchase price of the vehicle.

Secondly, unless related to safety, auto parts are depreciable items. So, if your 2010 Honda Accord (or any car older than three model years) needs a bumper replaced due to an accident, insurance companies will typically pay for an aftermarket or reconditioned bumper, not a brand new one.

My friend borrowed my car and got in an at-fault accident. Why did my rates go up?

When you loan your car, you loan your insurance—so your rates could go up if someone has an accident with your car.

However, if you have been insured with Member Benefits five or more years with no accidents or tickets in the household, we will waive the accident surcharge even if someone borrowed your car with your permission.

I have Emergency Road Service, why can’t you help me?

Member Benefits’ Emergency Road Service is a reimbursement program, not an on-call program. While our program costs less, members are required to make their own towing arrangements.

If you become stranded on the road and have Emergency Road Service (towing and labor reimbursement coverage) on your Member Benefits auto policy, contact any local towing company and we will reimburse you for the cost up to the limit of your policy. The costs of parts or materials such as gas or tires are not included in the coverage.

I slid during a storm and hit a tree. Why is that my fault?

The difference between an at-fault and not-at-fault accident isn’t always clear cut. Sometimes even when a certain type of accident is considered not-at-fault, a surcharge may still apply. Contact us when you have questions about these situations. We’re happy to talk with you and give you answers.

Here are some examples of situations considered at-fault and not-at-fault.

At-fault

Not-at-fault

Home Insurance

I have water in the basement. Is it covered by my home policy?

A sewer or drain backup is considered flooding. Flood insurance is a separate policy issued from the government. It is not part of your home insurance policy.

However, water damage due to drain and sewer backup or sump pump overflow may be covered if you’ve added a Water Damage (Sewers and Drains) endorsement to your Member Benefits’ policy.

In addition, water coming in through the foundation is considered flooding. Many people think of flooding as “surface” flooding, such as what occurs near rivers and lakes. But ground water coming in is flooding. This is the case with ALL home policies in the United States.

Member Benefits consultants can help you evaluate your need for flood coverage and explain how an endorsement works.

The sewer line between my house and the street broke. Now what?

Sewer/water lines that break outside of the home are not covered by home insurance, and municipalities consider this the responsibility of the homeowner. However, you may be able to purchase “service line” coverage through your municipality. Check to see if it’s available in your area.

I have bats in my house and it’s not even Halloween! Am I covered?

If you have bats in your attic or some other type of animal, we know it’s upsetting. But home policies exclude “infestations” like squirrels, bats, or even termites.

However, if the infestation causes a sudden and accidental event—for example, squirrels or mice chew on wires causing a fire, or termites cause a wall to collapse—those types of situations are covered.

My couch is ruined. Why won’t you pay for it?

Covered events that happen to your house are different than covered events that happen to your personal property. Coverage on your house is not restricted to specific events (although it is subject to possible exclusions). Coverage on your personal property is restricted to 18 specific “named perils.” If you have our home policy, please see pages 8 and 9, “Risks Insured Against.” For example:

There goes our old tree. Will you help pay to remove it?

Tree removal coverage is for the removal of trees following a windstorm event. If a tree just falls down with no accompanying storm, there is no coverage.

Generally speaking, if a tree in your yard is downed by a windstorm and causes damage to your home or other insured outbuildings, your home insurance will pay for damages up to your policy limit, as long as it fell because of a covered loss. (If it falls on your car, it’s typically covered by your auto insurance policy’s comprehensive coverage.)

If a tree is downed in your yard but doesn’t damage your home, car, or other building, Member Benefits will cover the cost of removing the tree—up to $1,500—subject to your deductible. Most insurers provide only $250 to $500 in coverage in this situation.

Deciphering deductibles

Some people think that once they pay their deductible, they don’t have to pay it again if they have another accident in the same policy period. However, an auto or home insurance deductible is not like a health insurance deductible—it is charged per occurrence, not annually.

Our auto insurance benefits

If you are found at-fault for an auto accident, most companies remove your accident-free discount and add an accident surcharge for three years. With Member Benefits, the accident surcharge lasts for only two years.

We also appreciate your loyalty. If you are in an at-fault accident and you have been insured with us for five or more years with no accidents or tickets in the household, we will waive the accident surcharge.

Member Benefits does not surcharge for not-at-fault accidents or for a comprehensive claim such as hitting a moving animal.