Trees are beautiful. For homeowners, they can also be dangerous.

But they don't have to be. According to the American Society of Consulting Arborists, regular inspection and maintenance of trees can reduce the risk of tree-related property damage by up to 90%.

That's why there's a lot of value in regularly inspecting trees on your property. Here are signs to look for that indicate a tree may pose a danger to a home, and next steps if you spot potential problems.
 

How do I know if I have a hazardous tree?

• Dead or dying branches - Look for branches lacking foliage, displaying brittle and dry wood, or showing signs of decay. Ones that hang or lean towards your home are a major red flag, as they can break off during storms or high winds and cause significant damage. 
• Hollow logs and trunks - This is a sign that a tree is structurally compromised and more susceptible to falling or collapsing. Hollow trees may appear solid from the outside but are weakened on the inside. If you notice cavities or hollow logs, consult a tree care vendor. 
• Flaking or peeling bark - Bark serves as a protective layer for trees. So when it starts to flake, peel, or fall off, it could indicate an underlying issue, such as disease or insect infestation. Damaged bark weakens a tree's ability to withstand severe weather, making it more prone to breakage or falling.
• Exposed roots - These could indicate a tree that's unstable and may topple over during extreme weather conditions. Look for signs of soil movement or exposed roots around the base of the tree.

Trees and roof health

Taller trees near your home can create shade and moisture, fostering moss and mold growth on rooftops. To avoid this:

• Trim taller trees to reduce excessive shade on your roof
• Maintain proper roof ventilation to minimize moisture buildup
• Keep gutters clean to prevent water accumulation

What do I do if I have a hazardous tree?

In the case of dead branches, you may be able to trim these yourself. Make sure to take appropriate safety measures (including a helmet, safety goggles and gloves).

However, for more complex tasks, it is best to consult a tree care vendor. These professionals have the expertise to assess tree health, diagnose problems, and recommend appropriate actions. They can also provide guidance on tree removal or other necessary measures to ensure safety. We can help you find an arborist in your area if you don't already work with one.

Either way, any potential issues regarding trees on your property should be addressed immediately.

Sources:

International Society of Arboriculture
Tree Care Industry Association
Roofpedia

Those little metal flexible hoses that connect to your laundry machine or your toilet? Those are plumbing supply lines, and they often go unnoticed until a leak occurs and disaster strikes. Regularly inspecting and replacing these lines is crucial to prevent potential flooding and water damage. It's a habit you should get in to right now.
 

Why is it so important to check plumbing supply lines?

Leaking or burst plumbing supply lines are a leading cause of water damage. In fact, according to the National Association of Home Builders (NAHB), failed lines are the root cause for over 50% of all residential insurance claims. That's because a burst line can cause severe flooding within minutes. 

To help avoid a major water damage incident, plumbing supply lines should be visually inspected at least twice a year, or more frequently in high-use areas.
 

How to tell if you need to replace a plumbing supply line 

• Wear and tear, including cracks, bulges, or brittleness caused by exposure to hot water and constant pressure. These signs indicate the hose is deteriorating and more prone to leaks.
• Corrosion, which weakens the hose's integrity. Look for signs of rust, discoloration, or flaking on the surface of the hose and connectors.
• Loose or damaged connectors, which can lead to leaks, even if the hose itself is in good condition.
• Fraying or splitting, especially near the connections. These signs indicate the hose is nearing the end of its lifespan and should be replaced immediately.

Example of a worn-out plumbing supply line

What do I do next?

• Promptly replace damaged hoses. They are inexpensive and can be bought at most hardware stores.
• Replace hoses proactively, even if they appear to be in good condition. The average lifespan of a water supply line hose is 3-5 years.
• Avoid kinks or twists to prevent unnecessary strain and reduce the risk of leaks or bursts.
• Call a plumbing professional if a hose is difficult to access, or if you're unsure of your ability to make the replacement yourself. 

Regularly checking and replacing water supply line hoses is essential for preventing water damage, flooding, and the growth of mold and mildew. Stay vigilant in maintaining these hoses to protect your property, belongings and the well-being of your home.

Micro-mobility devices such as e-scooters, e-bikes, e-mopeds and hoverboards have become increasingly popular over the last several years. These devices are generally powered by lithium-ion batteries, and if not used and handled correctly can be a source of significant fire, explosion and personal injury. In 2023, there were 268 known micro-mobility device fires with 150 injuries and 18 deaths in New York City alone.¹ This statistic highlights the dangers of lithium-ion battery-powered devices and the importance of their proper care, maintenance and storage.

Lithium-ion battery fire hazards

Lithium-ion batteries store a large amount of energy in a small amount of space. The dangers of these batteries are that they can overheat, or go into what is known as thermal runaway—a condition where the batteries become hot and release toxic and flammable gases. These gases can be easily ignited which can result in fire and/or explosion. A battery that is in thermal runaway or a battery that is on fire is extremely difficult to extinguish and can take several hours to fully put out. Re-ignition is also possible in some cases. 

While there is no way to predict if or when thermal runaway will happen, the following factors can increase the likelihood of thermal runaway of a battery:

• Faulty charging equipment, improper charging practices and overloaded electrical circuits
• Use of unregulated knockoff parts, including batteries and chargers which are flooding the market
• Charging the batteries with adapters that did not come from the device manufacturer
• Overcharging batteries
• Exposing batteries to extreme temperatures (below 32°F or above 100°F)
• Storing batteries in direct sunlight or hot vehicles
• Continuing to use batteries that have been damaged in some way
   

Best practices for mitigating fire hazards in micro-mobility devices 

The unpredictability of a fire involving lithium-ion batteries highlights the vigilance needed to ensure safe-use practices. With that in mind, the following precautions should be taken to mitigate the fire risk:

• Only use the charging cord that came with the equipment.
• Never charge a device unattended and do not over-charge the device.
• Do not use damaged batteries.
• Keep batteries at room temperature and away from ignition sources.
• Use only UL-listed batteries and devices.
• Never use a refurbished or “homemade” battery.

Guidelines and best practices for business owners, landlords and school officials

If your professional responsibility includes the protection of property and mitigating risk to personal injury and fatalities, the following guidelines and best practices should be followed at your location:

• Educate staff, residents and students on the fire hazards and mitigation practices mentioned in this document.
• Regulate the use of micro-mobility devices on your property through signage, policies and routine inspections of the premises.
• Charging indoors should only be permitted in dedicated areas that have the following controls:
  • In a dedicated temperature-controlled room with sufficient mechanical or natural ventilation to prevent the accumulation of any flammable or toxic gases that may be discharged during normal operations.
  • The room has the proper number of receptacles and an adequate electrical supply. Power strips or extension cords should not be permitted.
  • The room is not used for storage of other combustible materials or waste.
  • The room is separated from other areas of the building by a 1-hour fire-resistance barrier including walls and ceiling assembly.
  • The room has a centrally monitored smoke detection system.
  • The room is sprinkler-protected.
  • The room is provided with an ABC fire extinguisher.
• If a dedicated outdoor charging area is provided, the following controls should be in place:
  • Do not allow charging near exits or other pedestrian paths.
  • Never allow use of power strips or extension cords for charging.
  • Allow for adequate natural ventilation to prevent the accumulation of any flammable or toxic gases that may be discharged during normal operations.
  • The area should be equipped with an ABC fire extinguisher.
• Never allow repair or modification of the devices and/or batteries on your property.
• Communicate your lithium-ion battery exposure to the fire department so they can formulate a plan of action in case of a fire at your facility.

Life safety and personal injury hazards and controls

Lithium-ion batteries that are in thermal runaway or on fire pose a significant risk to a person’s health. While in these conditions, toxic gases and intense flames are emitted from the battery pack. For this reason, the following guidelines should be followed to reduce the risk of significant injury:

• Never charge a device in an egress path or near an exit.
• If a battery is on fire, call 911 immediately.
• Do not try and move the battery.
• Immediately leave the area.

Safe disposal of lithium-ion batteries

Due to the increased likelihood of fire from damaged batteries, disposal becomes challenging. Fires from improperly disposed batteries can occur inside a building, during transport or at landfills. Fires that were thought to be put out can, and often do, re-ignite.  To properly dispose of batteries, the following precautions should be taken:

• Never dispose of a battery in regular garbage or recycling bins.
• Keep disposed and/or damaged batteries outside and away from any structures/vehicles.
• Take the batteries to a local recycler that accepts lithium-ion batteries for proper disposal.  

Source:

1. UL Standards & Engagement

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation. By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you. The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

Learn ways to help protect your employees before and during extreme heat.

Sources:

FEMA, Red Cross, National Weather Service, OSHA, OSHA 

These essential tips, developed by The Hanover, provide important guidelines to help you prevent the most common weather-related damage that may occur during a wildfire. Bookmark this page to refer to these tips regularly, to help avoid or reduce the effects of a wildfire on your business and vehicles.

Collector cars are more than just vehicles - they are cherished pieces of history, art and culture. From classic muscle cars to elegant vintage models, collector cars hold a special place in the hearts of passionate car enthusiasts and collectors alike. However, with special cars come unique considerations when buying one for the first time. Before you hit the road, consider these 10 collector car tips.

1. Rare isn't always best

The rarer the model, the more investment and upkeep the vehicle may require. As a first-time owner of a collector vehicle, a popular model may be a safer bet. The more popular the car, the easier it may be to find affordable, readily available parts. Some popular collector cars include Ford Mustangs, Chevy Corvettes, Chevy Bel-Airs and MGBs.

2. Reputable mechanics are essential

Identify a highly recommended mechanic who specializes in collector vehicles. Keep in mind that they may charge expensive maintenance fees. For this reason, it can be worth learning simple repairs and maintenance that can be done at home. Performing your own maintenance if you are able can save you money, but you may need to source replacement components from time to time. For any repairs or maintenance that are beyond your expertise, you should visit your local mechanic.

3. Avoid rust at all costs

Beware of any rusting on the vehicle. Restoring a car with rust can require extensive replacements and bodywork treatments, which can diminish the character of the car. Rust also may indicate that the car has had years of neglect and poor maintenance and will likely need work on various components. It's best to avoid buying collector vehicles with any rusting to steer clear of additional costs in the future.

4. Where you plan to go

Collector cars can be driven in a variety of settings. You can show it off on the road, at a classic car show or admire it from your garage. Where you take your vehicle and how often you drive it will greatly impact the type of collector car you buy. It's best to consider the durability of a collector vehicle before making a purchase.

5. Return on investment is not guaranteed 

Based on the model, ownership costs may outweigh a collector car’s selling price in the future. If the vehicle is a rare model, sourcing parts will be significantly more expensive, as well as restoration projects and specialized labor costs. If you decide to sell your vehicle in the future, some companies offer a valuation tool where you can find collector car values by the make, vehicle type, or vehicle identification number (VIN). These tools are typically based on historical sales data, market trends and unique attributes of your vehicle.

6. The ins and outs of your dream car

Research the make and model thoroughly. This includes the car’s history, maintenance costs, parts availability, common mechanical issues, online reviews and advice from your mechanic regarding upkeep and repairs. You can also research the value of similar vehicles to get an idea of the car’s value to avoid overpaying. Oftentimes, understanding the ongoing costs of your collector car is more important than the initial purchase price.

7. Always inspect before you buy

Get the car professionally inspected for flaws and structural damage. Ordering a professional inspection helps ensure that the car is in stable condition and that the seller’s claims are truthful. Inspectors can also offer some insight into how much the car is worth. Pre-purchase inspections can reveal hidden problems such as worn-out brake systems, faulty electrical wiring and old trunk seals, which will prevent costly repairs down the road.

8. Who you're buying from 

There are multiple ways to purchase a collector car, whether it be through an auction, a dealership or a private seller. It's important to know the pros and cons of each method. Buying from an auction may result in a bargain, but there are limited options for a thorough inspection before you buy. Reputable dealerships will give you more security on what you’re buying, but it may come at a higher price. Private sellers can offer a lower price with no middlemen involved, but you must verify their claims before making any decisions. 

9. Where you'll store it

Protecting your classic car is key to preserving its value. Have a plan for where you’ll be storing your classic vehicle. Ideally, classic cars should be stored in your garage, sheltered from rain, snow and the sun. Another option is classic car storage facilities, which have regulated temperature and moisture controls that will prevent your car from deteriorating.

10. How to choose the right insurance

Choosing the right insurance package is imperative to protect your classic car against theft and damage. Before buying a classic vehicle, review the insurer’s policies to see if your vehicle qualifies. Common requirements for insuring a classic car include low usage or mileage, a proper place to store the car and no serious infractions on the driver’s record. When choosing insurance, it's important to find an insurer who is knowledgeable about classic cars, so they are familiar with the type of coverage needed to protect rare or antique vehicles.

Are you protected from out-of-pocket costs in the event of a loss or accident? Talk to your independent agent today.

Sources:

Ask Car Mechanic

Family Handyman

Hagerty

JBR Capital

MSN

The Car Investor

All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates (“The Hanover”). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. For more information about The Hanover visit our website at www.hanover.com.

LC 2024-084

 

For small business owners, preparing for the holiday season can be overwhelming. Many owners are finalizing business plans for next year, most are closing out financial reporting for the calendar year, and for those in retail, the hustle and bustle of the holidays presents a unique set of challenges and risks.

 

While dressing your windows and stocking up on inventory are important, it’s essential you optimize your insurance program, too. The most efficient way to do this is through an independent insurance agent, which also affords you the opportunity to support a fellow local businessperson.

Below are four holiday season risks you should discuss with your agent, with the goal of protecting the business you have worked so hard to build.

Holiday help

One of the most common adjustments small businesses make during the holidays is enlisting seasonal help. You may be tempted to forego your typical hiring practices, such as background checks or delivery driver training, in the interest of saving time or under the assumption that these team members won’t be with you long-term, but that would be a mistake. Many insurance programs offer discounts on background checks and driver safety training as services to their customers, so look into the options available to you.

Theft alert

With increased sales, unfortunately, comes a corresponding increase in the risk of theft. In fact, this risk was identified by small business owners as one of the top five in the 2019 Small Business Risk Report from The Hanover Insurance Group and Forbes Insights. Day-to-day inventory and customer activity monitoring may fall to the wayside due to heavier foot traffic, longer lines and busy employees. Your agent can outline the theft mitigation insights and tips offered by your insurance program to get ahead of issues and holiday headaches.

Unexpected accidents

Slip and fall accidents – and the litigation that accompanies them – are largely preventable. Weather conditions, drivers distracted by their shopping lists, and increased foot traffic can lead to more accidents during the holiday season. You can prepare your business with strategies like proper signage and maintenance adjustments, but also by taking preventative measures that are often recommended by your insurance agent or carrier. 

Cyber vulnerabilities

 

The 2019 Small Business Risk Report also showed that 67% of small business owners say they are more vulnerable to cyber security breaches as they transition their businesses to be more digital. On the positive side, experts are oftentimes available through your insurance provider to help with cyber risk management, focused on data breach preparation and remediation. If your small business offers customers an online experience, or if your customer and inventory management systems are cloud-based, take advantage of these expert insights.

 

As Small Business Saturday and the holidays approach, now is a great time to sit down with your local insurance agent to explore the options available. Consider it a gift that gives back…to your business and ultimately to your customers during the holidays and beyond.

1. Remember construction is driven by information and decisions:
   • Submittals
   • Requests for information
   • Change orders
   Responding to submittals, shop drawing and legitimate requests for information (RFIs) take time. Staffing for construction phase services needs to be realistic. If the client wants to limit your involvement during construction ask that your agreement includes language that clearly states the client assumes the risk that comes with design without or limited construction phase services.

1. Be proactive. It's not so much that there are errors and omissions in the drawings, it's how quickly you act to correct them that makes the difference.
2. The specifications should require the contractor to provide a current submittal schedule with each payment application starting with their initial request. Address this requirement during the pre-construction conference and stress that payment applications will not be processed without the accompanying submittal schedule.
3. Take steps to assure the contractor is fulfilling their responsibility for coordinating submittals and shop drawings before sending them on for your review. Require the contractor to provide their coordination protocol and audit the contractor to confirm that the procedure is being effectively implemented.
4. Don't let the contractor overload you with submittals and shop drawings. Meet with the owner and contractor to discuss the reasonableness of the contractor's submittal schedule. Don't wait for the contractor to complain. Take a leadership role starting with the contractor's initial submittal schedule.
5. Take commitments seriously. Don't over promise. Contractor meeting minutes and correspondence that chronicle your "to do" failures paint a less than flattering picture your commitment to the project.
6. Keep an RFI score board. Track redundant and erroneous information requests. Don't hesitate to schedule RFI meetings with the owner and contractor to prioritize outstanding RFI.s. If you don't take a leadership role the contractor will.
7. Specify pre-installation meetings for all critical construction activities. Make sure that everyone is on the same sheet of music including the construction trades, manufacturers' reps and suppliers. Preinstallation meetings can be your best risk management tool for reducing construction defects, catching design errors/omissions, eliminating construction delays and avoiding a messy professional liability claim.
8. Include a CPM schedule requirement in the contract documents. Monitoring construction progress is every bit as important as tracking the construction dollars. Monthly updates provide the information needed to make sound decisions and implement needed corrective action.
9. If at all possible, assure that the bidding documents have a passing grade from the codes department on bid day. Awarding the contract for construction without a building permit in hand can result in costly changes orders and delay claims. Address this issue in your contract and explain that the owner needs to assume these risks as a trade off for a project schedule that allows bidding and award before all the code-related changes have been incorporated into the design.

About the author
Gary Prather is founder and president of Architects and Engineers Dispute Resolution Group. He is a recognized authority on contractual risk transfer and professional liability issues confronting design professionals.

April 2018

For a design professional, a lawsuit or a grievance is a professional hazard. Yet a few simple precautions can minimize that hazard. Or, when the suit or grievance cannot be avoided, those same precautions can eliminate or minimize professional liability.

Maintain good communications

Let your clients know they are your top priority by keeping them informed of all significant developments on the project, and responding promptly—that is, within 24 hours—to clients' messages. Of equal importance, keep well organized records, whether copies of letters and emails, or dated notes of telephone calls, of all substantive communications with clients. A client who knows he or she can get in contact with you, and that you are committed to his or her project, is less likely to pursue a lawsuit or grievance even in the event a problem with the project arises. On the other hand, if a lawsuit or grievance does occur, complete and accurate records of your communications with the complaining client are crucial to any defense.

Avoid giving false expectations

Do not try to protect your clients from bad news. If obstacles, foreseen or unforeseen, arise at any time between a project's outset and completion, your client will rely on you to inform him or her promptly, to provide a complete explanation, and to give your honest assessment of the risks and benefits of different strategies for proceeding. The client may by unhappy to learn of the obstacle, but not so unhappy as the client who proceeds unaware, only to question, down the road, why you did not inform him or her more promptly.

Make the client make the hard decisions

Again, clients rely on design professionals to provide a complete and accurate assessment of a project's risks and benefits, but the client must decide how to proceed in light of your assessment. Do not allow a client to say, simply, "it's up to you," because if your decision does not yield the result your client wants or expects, the client may hold you responsible. A client who is empowered to direct the project (with your advice) is less likely to cast blame if things do not go as planned.

Document your advice and the client's decisions

Whatever decision a client makes, be certain there is a written record of the advice you provided the client to inform his or her decision. Should a client take a course you advise against, follow his or her instructions (when possible), but say in writing that you would recommend against that approach. If you simply cannot follow the course of action requested (for example, because it would be illegal, unethical or dishonest), advise the client immediately and explain why. If the client insists in that instance, you may need to withdraw. In the event you are sued or grieved, your insistence that the client make the hard decisions—with documentation that you communicated with the client (see no. 10) about all the information informing his or her decision (see no. 9)—is a powerful defense.

Don't initiate hostilities against the client

Countless lawsuits and grievances are filed in retaliation to proceedings professionals initiate against current or former clients, for example, collections actions on unpaid bills. Even if your client has wronged you, and even if you are, indisputably, entitled to relief, take a moment to evaluate whether that relief, once obtained, would outweigh the cost of defending against the lawsuit or grievance that is likely to ensue. Do not consider only the financial cost, e.g., your deductible and insurance premium, but the time you would have to invest in your defense and the risk to your reputation, whatever the result. In all but the most egregious circumstances, writing off an invoice or walking away from a dispute is often the more cost-effective path.

Avoid, or handle with care, the borderline personality client

You probably have encountered that prospective, or actual, client with an ego and demands to match his or her bank account. Consider carefully whether to sign on, or stay on, with clients who make unreasonable demands; who constantly question your analysis or advice; who refuse to communicate effectively; or who have fired or speak badly of your peers. Remember, a client prone to angry or irrational behavior may, eventually, direct his or her ire at you, regardless how careful you have been to provide the utmost service. If you do stay on with such a client, it is more important than ever to adhere to items six through 10 on this list. Communicating effectively, documenting your advice, and leaving the hard decisions to the client can go a long way toward diffusing client complaints, whether or not those complaints are warranted.

Run, don't walk, away from unsavory clients

Even worse than the angry or irrational client is the client who asks, or who you fear will ask, that you engage in conduct beneath your professional standards. Design professionals must adhere to certain standards regardless of a client's instructions. Further, unsavory clients could expose you to more than a professional negligence action or grievance proceedings; any fraudulent or criminal activity the client performs with your knowledge could be held against you. It is tempting to turn down the "alarm bells" in your head when the potential financial rewards are great. When this happens, remind yourself that, whatever the potential rewards, the risks are probably even greater, and can include defense of a grievance, a lengthy and expensive malpractice case, or even possible loss of your license. If a client insists you take some unethical, dishonest or inappropriate course of action, even after you counsel against it, terminate that relationship immediately.

Do not favor your interests over your clients, or one client's interests over another's

Always be mindful of, and avoid at all costs, actual or potential conflicts of interest. There is no quicker way to embroil yourself in a lawsuit or grievance than acting in your own best interest to the detriment of your client or in one client's best interest to the detriment of another's). Sometimes, even the appearance of a conflict is enough to instigate an adverse action. So be vigilant about any potential conflicts which may arise, inform your client immediately in the event one does, and withdraw promptly from the project in the manner least detrimental to your client.

Be proactive in addressing client complaints

Even the best of relationships can quickly turn sour if the client perceives that you are not responsive to concerns he or she voices to you. It isn't enough to promptly acknowledge any complaint; you should respond with information pertaining to the client's concerns; and with a plan to address them. Whether or not you believe you are at fault, take responsibility for remedying the situation, including presenting the client with options and your recommendations for how to proceed, and proposals for how to avoid the issue going forward.

Carry good liability insurance

Although having a good insurance policy will not keep you out of a lawsuit, it can certainly give you comfort and protection from personal liability. All liability policies are not alike. Some key considerations are:

Whether the dollars the insurance carrier spends in defense of the lawsuit reduce the amount of your liability coverage in the event of a judgment. Insurance companies often offer policies in which the defense dollars either erode or do not erode the amount of coverage. Keep in mind that lawsuits can be expensive, sometimes costing well in excess of $100,000 to defend. There is nothing worse than having all of your coverage eroded by your defense costs.

To what extent your insurance policy pays for a defense in a grievance action. Defense of a grievance action can be expensive too. You do not want to be in a position where you have to agree to a proposed stipulation of discipline from the licensing agency simply because you cannot afford to defend yourself in the action.

Although many of these precautions are simply good business sense, circumstances can, and do, arise which tempt design professionals to cast caution aside in pursuit of an interesting or lucrative project; or simply as a matter of personal pride. Remember to let cooler heads prevail, and look at the big picture—including your other projects and your professional reputation—when approaching any one client or matter. Adhering to these guidelines by communicating effectively; documenting your actions; and protecting yourself and your reputation can pay off hugely either by preventing a lawsuit or grievance, or dramatically strengthening your defense.

The Hanover offers tailored professional liability insurance designed to protect architects and engineers from the unique risks they face.

Daniel McCune and Kimberly Perdue have, collectively, more than forty years' litigation experience, focused on defending licensed professionals against negligence claims and board actions. They practice in Denver, Colorado at Childs McCune LLC.

All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates ("The Hanover"). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage.

April 2018

Inheriting a classic car is an exciting and unique experience, one that comes with a unique set of responsibilities.

This guide aims to provide you with valuable insights on how to maintain and insure your newly inherited car so it remains valuable - and a source of joy.

Storing your classic car: tips for preservation

• Control its climate - Classic cars are susceptible to extreme temperatures and humidity. Store your car in a climate-controlled garage or warehouse with a controlled climate, if possible.
• Cover and protect - Use a car cover to shield your classic car from dust, sunlight, and other potential sources of damage.
• Elevate or rotate tires - To prevent flat spots on the tires, periodically elevate or rotate them.
• Keep it charged - If the car is not driven frequently, consider using a battery maintainer to prevent battery drain.

Maintaining your classic car: essential steps

• Find a qualified mechanic -  Look for a mechanic who specializes in classic cars. They will have the expertise to handle unique maintenance needs.
• Inspect regularly - Schedule routine inspections, including fluid checks, to identify potential issues and address them promptly.
• Drive it occasionally - Classic cars are meant to be driven. Regularly taking your car for a short drive helps keep the engine and other components properly lubricated.

Valuating a classic car: research and expertise

• Research and document - Gather information about the make, model, year, condition, and any significant historical or ownership details of the car. This information will help you determine its value accurately.
• Consult appraisers - Contact professional appraisers who specialize in classic cars to help get an accurate valuation. They consider various factors, including market demand, rarity, condition, and historical significance.
• Learn the market - Explore online platforms, classic car auctions, and classifieds to see how similar cars are priced, to get a better understanding of the current market value.

Insuring a classic car: what you'll need

• Agreed value coverage - Classic car insurance policies often offer "agreed value" coverage, which ensures that you receive a predetermined amount in the event of a total loss. This value is mutually agreed upon by you and the insurance company.
• Mileage restrictions - Some insurance policies may impose mileage restrictions on classic cars. Understand these limitations and ensure you comply with them.
• Documentation - Provide your insurance company with appraisal reports, photographs, maintenance records, and any other relevant information that proves the value and condition of your classic car.

Talk to your independent insurance agent to get started. If you don't have an agent, we can help you find one.

Additional considerations

• Legal requirements - Make sure you understand the legal requirements for owning and operating a classic car where you live, including registration, emissions testing, and any specific regulations for classic vehicles.
• Restoration and customization - If the car you inherited requires restoration or if you want to customize it, research reputable restoration shops or specialists who can help you achieve your vision while preserving the car's authenticity and value.
• Car clubs and communities - Engaging with enthusiasts in car clubs or online communities can provide valuable support and advice. These groups often organize events, rallies, and gatherings where you can showcase and share your newly inherited classic car.
• Heritage and documentation - If your car has sentimental value or a rich history within your family, consider documenting its story. Gather any historical photographs, ownership records, or anecdotes that can be preserved and passed down to future generations. 
• Enjoying your new acquisition - While it's important to preserve the condition and value of a classic car, don't forget to actually drive it! Take the time to go for leisurely drive, participate in classic car events, and consider entering it in vintage car shows to showcase its beauty and craftsmanship.

Owning a classic car comes with responsibilities to keep it looking good and running well. But it's also about appreciating the legacy, craftsmanship, and joy that comes with being a keeper of automotive history.

Following the guidelines outlined in this article can help ensure that your newly inherited classic car is well-preserved, maintained, and protected, allowing you to enjoy its timeless beauty for years to come.

All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates (“The Hanover”). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage. For more information about The Hanover visit our website at www.hanover.com. 

Are you a proud owner of a classic beauty or a modern marvel?

Whether your car is old or new, understanding coverage for collector cars is a critical component to keeping them turning heads. Here we discuss coverage options to help demystify the process and find a great plan for your collector car.

Can I add a collector car to my existing auto policy?

A separate policy is recommended for collector cars. Here's why:

• Higher value - Collector cars often have a higher value than regular auto insurance covers. Plus, unlike everyday cars, collector cars tend to appreciate in value over time. A separate policy can help ensure your car is properly protected.
• Specialized coverage - Collector cars require unique coverage due to their age, rarity, and characteristics. Policies can include specific coverage for spare parts, restoration, and use at events or exhibitions.
• Usage restrictions - Because collector cars aren't used like normal cars, coverage may include mileage limits and usage restrictions, some of which are outlined in this article.

How is the insured value of a collector car determined?

This process can vary, depending on the insurer. However, it typically involves an appraisal, where an expert assesses factors like condition, authenticity, rarity, and market demand to determine the car's value.

Then the insurer conducts research on similar vintage cars, considering recent sales prices, auction results, and industry guides. This establishes what is called the "agreed value" of the car, which may differ from its resale value.

Note that the car's value may need periodic re-evaluation, especially with market or condition changes. An annual review is recommended to assure coverage and agreed value are up to date.
 

Are there any insurance restrictions on the use of my collector car?

Typically, yes. Common usage restrictions for insured collector cars include:

• Limited mileage to reflect the limited use of collector cars
• Storage requirements, such as a secure, climate-controlled storage facility when the car is not in use 
• Show and exhibition use, where specific conditions and restrictions may apply, such as prior notification or limitations on competitive events or racing
• Non-commercial use, which typically prohibits commercial activities like ridesharing or delivery services
• Typically, collector car policies require drivers to have a separately insured vehicle for regular daily use.

Can I get coverage for my collector car during transport to a car show?

Yes. Most insurance companies offer specialized coverage designed to protect your vintage car from any damage or loss that may occur during transport. 

Will my insurance premium be higher for a collector car?

It varies. Collector cars are usually valued higher and may require specialized parts or work. Factors like age, condition, and rarity can also make collector cars more costly to repair, which would impact rates. However, their infrequent use on roads may mean lower liability coverage costs, which could help offset a higher premium.

What is the first step I should take in insuring a collector car?

Talk to your independent insurance agent about insuring your collector car as part of your overall personal insurance account. If you don't have an independent agent, we can help you find one. 

All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates (“The Hanover”). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage. For more information about The Hanover visit our website at www.hanover.com.