Article

Understanding waivers and release agreements

If you own or operate a business or have attended a private or public event or activity, you may have encountered a liability waiver or release agreement. A common practice that many business owners and service providers often rely upon is the use of liability waivers.

Liability waivers and release agreements can be key risk management tools to help protect business owners and service providers from liability associated with risks inherent to their operations or services. They are communicated by various means ranging from a service receipt or invoice language, to warning signs such as “Swim at your own risk!”

With many applications and an increase in usage, you, as a business owner or service provider, may wonder if liability waivers are effective or even worth the paper they’re written on. Certain factors and local laws may determine if waivers and release agreements will be enforceable or not.

Below, we will discuss some types of waivers and release agreements used today, factors that may determine their enforceability, and things you may wish to consider when drafting or implementing these agreements. This document is not intended to, and does not, convey legal advice. It is always advisable for you to discuss matters surrounding waivers and releases with your attorney.

Exculpatory agreements

Liability waivers and release agreements are forms of exculpatory agreements. Generally speaking, an exculpatory clause or exculpatory agreement is a provision in a contract that attempts to relieve, for example, a service provider from liability due to a loss or damage sustained by a participant utilizing the services offered.[1] There are several types of exculpatory agreements used today for various service applications.

Types of exculpatory agreements

  • Liability waiver: In recognition of the inherent risks associated with a given activity (for example, water skiing), the business entity providing access, controlling, or otherwise making available the risky activity will seek to reduce and/or eliminate their liabilities relating to damages, injuries, claims, or losses stemming from the participation in the risky activity. This reduction/elimination of liabilities is attempted to be achieved by utilizing a liability waiver.
  • Assumption of risk agreement: A pre-participation document or clause whereby, for example, a customer agrees in advance that the business owner will not be liable for losses relating to the inherent risks associated with a specific activity or event. The agreement establishes that the customer is aware, acknowledges, and agrees to accept the risks presented by a given activity or event.
  • Disclaimers/sign posting: A statement posted that attempts to deny or limit responsibility. Sign postings are an example of a disclaimer. The sign is used to attempt to limit the scope of obligations and rights associated with access or use of a facility, device, or area. An example of a sign disclaimer is “Vehicles Are Parked at Owner’s Risk.”
  • Tickets/receipts: Very often tickets to events and/or receipts include fine print on the reverse side. This text can be used to include exculpatory statements and advisements. A common example can be found on the back of a Major League Baseball ticket with the foundation of the text being, “Ticket holder accepts all risks of illness/injury.”
  • Click-wrap/shrink-wrap (e-contracts)
    • Click-wrap ― Accepting the terms of a user agreement via clicking “yes” to utilize an app or access a website. The agreement most often will include an exculpatory clause, whereby the user accepts the liabilities relating to their activities.
    • Shrink-wrap ― The name was drawn from the shrink wrap packaging on CD-ROMs that were, at one time, the primary means of procuring new software. The software comes with licensing agreements which can also be expected to include exculpatory clauses.

Enforcement of liability waivers

Enforcement of liability waivers is state specific, and some states may conclude that they are typically unenforceable because they are generally poorly written or violative of public policy. In addition, another common reason they are not enforceable is in the determination of whether gross negligence was exercised by the party seeking a waiver of liability. In general, gross negligence is an extreme form of ordinary negligence and can be characterized as deliberate and reckless disregard for the treatment of others. [2]

Liability waivers, if well written, may protect against ordinary negligence (with exception of gross negligence) in some states. For example, some states have moderate or strict criteria that if adhered to may lead to effective enforcement. In contrast, even the most effective and well-written waiver may not be enforceable in some states. For example, some states may prohibit liability waivers for personal injury, but may allow releases related to property damage.

Trampoline jumping accident_1271736386_Gty (2).jpg

Liability waivers and children

For many years waivers signed by parents on behalf of their minor children were not enforceable based upon a matter of public policy. However, in recent years, courts in some states have enforced parental waivers. While waiver law is pretty straightforward when applied to adults, minors, however, are generally unable to legally sign a contract and are therefore not bound by the waiver. This may leave a facility liable for all negligent acts regarding minors and leaves them open to a lawsuit either by the parents of the child or from the child themselves.

Four important tips to consider regarding liability waivers and children

  1. A liability waiver signed only by a minor is not a valid contract.
  2. Most courts have ruled that a parent cannot sign away their child's right to sue for negligence.
  3. Only a minority of states have upheld a waiver signed by a minor and a parent.
  4. Agreement to participate forms and permission slips do not grant liability protection to a facility.

Overall, understanding your state’s position on parental waivers is important in the usage and successful enforcement of these waivers. Your counsel can help you understand the most recent court actions regarding the enforcement of these waivers.

Posting warning signs

Practically all businesses post warning signs to attempt to transfer liability of potentially dangerous conditions on their property or in their building. Warning signs may possibly provide some liability relief for you as a business owner; however, precautions still should be taken to reasonably control the exposure. No sign will erase the legal duty owed to protect the public. Discuss with counsel any warning signs on your property as well as how ―and whether ― they can help you transfer liability.

Things to consider when implementing effective agreements

A well-written liability waiver can be very beneficial in protecting your business. Below are a few things to consider when drafting or implementing a liability waiver.

  • Consult with a lawyer familiar with this area of law in your state.
  • Bring attention to the waiver. Do not hide the waiver inside a document or make it hard to find.
  • Customize your document to fit your operations. Do not utilize a generic “one size fits all” approach.
  • Make sure the inherent risk is clearly outlined in the waiver, and whose conduct is being waived.
  • Ensure each responsible participant signs a waiver, to avoid multiple signatures on one document.
  • Be willing to explain the risk. Have a representative with authority available.
  • Store and maintain all signed waivers.

Liability waivers are still one of the best risk management tools available to businesses and service providers to protect against damages, claims, and lawsuits associated with inherent risk. Four best practices that may aid in successful enforcement include:

  1. Understanding your state’s position on liability waivers.  Seek legal advice in this area.
  2. Address all safety issues immediately and take steps to maintain the property in a safe condition.
  3. Have your lawyer draft or implement waivers that are clear and customized to your operations and risk.
  4. Establish and maintain good documentation and recordkeeping practices.
Waiver of liability_473777626_Gty (6).jpg

Where to find assistance

For assistance in developing a solid liability waiver, we always suggest working with an attorney who is familiar with contract and tort. Lastly, your insurance agent is available to assist with insurance program needs.

 

References

  1. Matthiesen, Wickert & Lehrer, S.C. (2021). Exculpatory Agreements and Liability Waivers In All 50 States. Hartford, WI.
  2. Rothman, J. (2020, October 02). When Liability Waivers Are Unenforceable. Retrieved from The Rothman Law Firm LLC: https://www.rothmanlawyer.com/when-liability-waivers-are-unenforceable/

 

 

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.

LC 2021-588

 

Understanding waivers and release agreements

If you own or operate a business or have attended a private or public event or activity, you may have encountered a liability waiver or release agreement. A common practice that many business owners and service providers often rely upon is the use of liability waivers.

Liability waivers and release agreements can be key risk management tools to help protect business owners and service providers from liability associated with risks inherent to their operations or services. They are communicated by various means ranging from a service receipt or invoice language, to warning signs such as “Swim at your own risk!”

With many applications and an increase in usage, you, as a business owner or service provider, may wonder if liability waivers are effective or even worth the paper they’re written on. Certain factors and local laws may determine if waivers and release agreements will be enforceable or not.

Below, we will discuss some types of waivers and release agreements used today, factors that may determine their enforceability, and things you may wish to consider when drafting or implementing these agreements. This document is not intended to, and does not, convey legal advice. It is always advisable for you to discuss matters surrounding waivers and releases with your attorney.

Exculpatory agreements

Liability waivers and release agreements are forms of exculpatory agreements. Generally speaking, an exculpatory clause or exculpatory agreement is a provision in a contract that attempts to relieve, for example, a service provider from liability due to a loss or damage sustained by a participant utilizing the services offered.[1] There are several types of exculpatory agreements used today for various service applications.

Types of exculpatory agreements

  • Liability waiver: In recognition of the inherent risks associated with a given activity (for example, water skiing), the business entity providing access, controlling, or otherwise making available the risky activity will seek to reduce and/or eliminate their liabilities relating to damages, injuries, claims, or losses stemming from the participation in the risky activity. This reduction/elimination of liabilities is attempted to be achieved by utilizing a liability waiver.
  • Assumption of risk agreement: A pre-participation document or clause whereby, for example, a customer agrees in advance that the business owner will not be liable for losses relating to the inherent risks associated with a specific activity or event. The agreement establishes that the customer is aware, acknowledges, and agrees to accept the risks presented by a given activity or event.
  • Disclaimers/sign posting: A statement posted that attempts to deny or limit responsibility. Sign postings are an example of a disclaimer. The sign is used to attempt to limit the scope of obligations and rights associated with access or use of a facility, device, or area. An example of a sign disclaimer is “Vehicles Are Parked at Owner’s Risk.”
  • Tickets/receipts: Very often tickets to events and/or receipts include fine print on the reverse side. This text can be used to include exculpatory statements and advisements. A common example can be found on the back of a Major League Baseball ticket with the foundation of the text being, “Ticket holder accepts all risks of illness/injury.”
  • Click-wrap/shrink-wrap (e-contracts)
    • Click-wrap ― Accepting the terms of a user agreement via clicking “yes” to utilize an app or access a website. The agreement most often will include an exculpatory clause, whereby the user accepts the liabilities relating to their activities.
    • Shrink-wrap ― The name was drawn from the shrink wrap packaging on CD-ROMs that were, at one time, the primary means of procuring new software. The software comes with licensing agreements which can also be expected to include exculpatory clauses.

Enforcement of liability waivers

Enforcement of liability waivers is state specific, and some states may conclude that they are typically unenforceable because they are generally poorly written or violative of public policy. In addition, another common reason they are not enforceable is in the determination of whether gross negligence was exercised by the party seeking a waiver of liability. In general, gross negligence is an extreme form of ordinary negligence and can be characterized as deliberate and reckless disregard for the treatment of others. [2]

Liability waivers, if well written, may protect against ordinary negligence (with exception of gross negligence) in some states. For example, some states have moderate or strict criteria that if adhered to may lead to effective enforcement. In contrast, even the most effective and well-written waiver may not be enforceable in some states. For example, some states may prohibit liability waivers for personal injury, but may allow releases related to property damage.

Trampoline jumping accident_1271736386_Gty (2).jpg

Liability waivers and children

For many years waivers signed by parents on behalf of their minor children were not enforceable based upon a matter of public policy. However, in recent years, courts in some states have enforced parental waivers. While waiver law is pretty straightforward when applied to adults, minors, however, are generally unable to legally sign a contract and are therefore not bound by the waiver. This may leave a facility liable for all negligent acts regarding minors and leaves them open to a lawsuit either by the parents of the child or from the child themselves.

Four important tips to consider regarding liability waivers and children

  1. A liability waiver signed only by a minor is not a valid contract.
  2. Most courts have ruled that a parent cannot sign away their child's right to sue for negligence.
  3. Only a minority of states have upheld a waiver signed by a minor and a parent.
  4. Agreement to participate forms and permission slips do not grant liability protection to a facility.

Overall, understanding your state’s position on parental waivers is important in the usage and successful enforcement of these waivers. Your counsel can help you understand the most recent court actions regarding the enforcement of these waivers.

Posting warning signs

Practically all businesses post warning signs to attempt to transfer liability of potentially dangerous conditions on their property or in their building. Warning signs may possibly provide some liability relief for you as a business owner; however, precautions still should be taken to reasonably control the exposure. No sign will erase the legal duty owed to protect the public. Discuss with counsel any warning signs on your property as well as how ―and whether ― they can help you transfer liability.

Things to consider when implementing effective agreements

A well-written liability waiver can be very beneficial in protecting your business. Below are a few things to consider when drafting or implementing a liability waiver.

  • Consult with a lawyer familiar with this area of law in your state.
  • Bring attention to the waiver. Do not hide the waiver inside a document or make it hard to find.
  • Customize your document to fit your operations. Do not utilize a generic “one size fits all” approach.
  • Make sure the inherent risk is clearly outlined in the waiver, and whose conduct is being waived.
  • Ensure each responsible participant signs a waiver, to avoid multiple signatures on one document.
  • Be willing to explain the risk. Have a representative with authority available.
  • Store and maintain all signed waivers.

Liability waivers are still one of the best risk management tools available to businesses and service providers to protect against damages, claims, and lawsuits associated with inherent risk. Four best practices that may aid in successful enforcement include:

  1. Understanding your state’s position on liability waivers.  Seek legal advice in this area.
  2. Address all safety issues immediately and take steps to maintain the property in a safe condition.
  3. Have your lawyer draft or implement waivers that are clear and customized to your operations and risk.
  4. Establish and maintain good documentation and recordkeeping practices.
Waiver of liability_473777626_Gty (6).jpg

Where to find assistance

For assistance in developing a solid liability waiver, we always suggest working with an attorney who is familiar with contract and tort. Lastly, your insurance agent is available to assist with insurance program needs.

 

References

  1. Matthiesen, Wickert & Lehrer, S.C. (2021). Exculpatory Agreements and Liability Waivers In All 50 States. Hartford, WI.
  2. Rothman, J. (2020, October 02). When Liability Waivers Are Unenforceable. Retrieved from The Rothman Law Firm LLC: https://www.rothmanlawyer.com/when-liability-waivers-are-unenforceable/

 

 

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.

LC 2021-588

 

Understanding waivers and release agreements

If you own or operate a business or have attended a private or public event or activity, you may have encountered a liability waiver or release agreement. A common practice that many business owners and service providers often rely upon is the use of liability waivers.

Liability waivers and release agreements can be key risk management tools to help protect business owners and service providers from liability associated with risks inherent to their operations or services. They are communicated by various means ranging from a service receipt or invoice language, to warning signs such as “Swim at your own risk!”

With many applications and an increase in usage, you, as a business owner or service provider, may wonder if liability waivers are effective or even worth the paper they’re written on. Certain factors and local laws may determine if waivers and release agreements will be enforceable or not.

Below, we will discuss some types of waivers and release agreements used today, factors that may determine their enforceability, and things you may wish to consider when drafting or implementing these agreements. This document is not intended to, and does not, convey legal advice. It is always advisable for you to discuss matters surrounding waivers and releases with your attorney.

Exculpatory agreements

Liability waivers and release agreements are forms of exculpatory agreements. Generally speaking, an exculpatory clause or exculpatory agreement is a provision in a contract that attempts to relieve, for example, a service provider from liability due to a loss or damage sustained by a participant utilizing the services offered.[1] There are several types of exculpatory agreements used today for various service applications.

Types of exculpatory agreements

  • Liability waiver: In recognition of the inherent risks associated with a given activity (for example, water skiing), the business entity providing access, controlling, or otherwise making available the risky activity will seek to reduce and/or eliminate their liabilities relating to damages, injuries, claims, or losses stemming from the participation in the risky activity. This reduction/elimination of liabilities is attempted to be achieved by utilizing a liability waiver.
  • Assumption of risk agreement: A pre-participation document or clause whereby, for example, a customer agrees in advance that the business owner will not be liable for losses relating to the inherent risks associated with a specific activity or event. The agreement establishes that the customer is aware, acknowledges, and agrees to accept the risks presented by a given activity or event.
  • Disclaimers/sign posting: A statement posted that attempts to deny or limit responsibility. Sign postings are an example of a disclaimer. The sign is used to attempt to limit the scope of obligations and rights associated with access or use of a facility, device, or area. An example of a sign disclaimer is “Vehicles Are Parked at Owner’s Risk.”
  • Tickets/receipts: Very often tickets to events and/or receipts include fine print on the reverse side. This text can be used to include exculpatory statements and advisements. A common example can be found on the back of a Major League Baseball ticket with the foundation of the text being, “Ticket holder accepts all risks of illness/injury.”
  • Click-wrap/shrink-wrap (e-contracts)
    • Click-wrap ― Accepting the terms of a user agreement via clicking “yes” to utilize an app or access a website. The agreement most often will include an exculpatory clause, whereby the user accepts the liabilities relating to their activities.
    • Shrink-wrap ― The name was drawn from the shrink wrap packaging on CD-ROMs that were, at one time, the primary means of procuring new software. The software comes with licensing agreements which can also be expected to include exculpatory clauses.

Enforcement of liability waivers

Enforcement of liability waivers is state specific, and some states may conclude that they are typically unenforceable because they are generally poorly written or violative of public policy. In addition, another common reason they are not enforceable is in the determination of whether gross negligence was exercised by the party seeking a waiver of liability. In general, gross negligence is an extreme form of ordinary negligence and can be characterized as deliberate and reckless disregard for the treatment of others. [2]

Liability waivers, if well written, may protect against ordinary negligence (with exception of gross negligence) in some states. For example, some states have moderate or strict criteria that if adhered to may lead to effective enforcement. In contrast, even the most effective and well-written waiver may not be enforceable in some states. For example, some states may prohibit liability waivers for personal injury, but may allow releases related to property damage.

Trampoline jumping accident_1271736386_Gty (2).jpg

Liability waivers and children

For many years waivers signed by parents on behalf of their minor children were not enforceable based upon a matter of public policy. However, in recent years, courts in some states have enforced parental waivers. While waiver law is pretty straightforward when applied to adults, minors, however, are generally unable to legally sign a contract and are therefore not bound by the waiver. This may leave a facility liable for all negligent acts regarding minors and leaves them open to a lawsuit either by the parents of the child or from the child themselves.

Four important tips to consider regarding liability waivers and children

  1. A liability waiver signed only by a minor is not a valid contract.
  2. Most courts have ruled that a parent cannot sign away their child's right to sue for negligence.
  3. Only a minority of states have upheld a waiver signed by a minor and a parent.
  4. Agreement to participate forms and permission slips do not grant liability protection to a facility.

Overall, understanding your state’s position on parental waivers is important in the usage and successful enforcement of these waivers. Your counsel can help you understand the most recent court actions regarding the enforcement of these waivers.

Posting warning signs

Practically all businesses post warning signs to attempt to transfer liability of potentially dangerous conditions on their property or in their building. Warning signs may possibly provide some liability relief for you as a business owner; however, precautions still should be taken to reasonably control the exposure. No sign will erase the legal duty owed to protect the public. Discuss with counsel any warning signs on your property as well as how ―and whether ― they can help you transfer liability.

Things to consider when implementing effective agreements

A well-written liability waiver can be very beneficial in protecting your business. Below are a few things to consider when drafting or implementing a liability waiver.

  • Consult with a lawyer familiar with this area of law in your state.
  • Bring attention to the waiver. Do not hide the waiver inside a document or make it hard to find.
  • Customize your document to fit your operations. Do not utilize a generic “one size fits all” approach.
  • Make sure the inherent risk is clearly outlined in the waiver, and whose conduct is being waived.
  • Ensure each responsible participant signs a waiver, to avoid multiple signatures on one document.
  • Be willing to explain the risk. Have a representative with authority available.
  • Store and maintain all signed waivers.

Liability waivers are still one of the best risk management tools available to businesses and service providers to protect against damages, claims, and lawsuits associated with inherent risk. Four best practices that may aid in successful enforcement include:

  1. Understanding your state’s position on liability waivers.  Seek legal advice in this area.
  2. Address all safety issues immediately and take steps to maintain the property in a safe condition.
  3. Have your lawyer draft or implement waivers that are clear and customized to your operations and risk.
  4. Establish and maintain good documentation and recordkeeping practices.
Waiver of liability_473777626_Gty (6).jpg

Where to find assistance

For assistance in developing a solid liability waiver, we always suggest working with an attorney who is familiar with contract and tort. Lastly, your insurance agent is available to assist with insurance program needs.

 

References

  1. Matthiesen, Wickert & Lehrer, S.C. (2021). Exculpatory Agreements and Liability Waivers In All 50 States. Hartford, WI.
  2. Rothman, J. (2020, October 02). When Liability Waivers Are Unenforceable. Retrieved from The Rothman Law Firm LLC: https://www.rothmanlawyer.com/when-liability-waivers-are-unenforceable/

 

 

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.

LC 2021-588

 

Understanding waivers and release agreements

If you own or operate a business or have attended a private or public event or activity, you may have encountered a liability waiver or release agreement. A common practice that many business owners and service providers often rely upon is the use of liability waivers.

Liability waivers and release agreements can be key risk management tools to help protect business owners and service providers from liability associated with risks inherent to their operations or services. They are communicated by various means ranging from a service receipt or invoice language, to warning signs such as “Swim at your own risk!”

With many applications and an increase in usage, you, as a business owner or service provider, may wonder if liability waivers are effective or even worth the paper they’re written on. Certain factors and local laws may determine if waivers and release agreements will be enforceable or not.

Below, we will discuss some types of waivers and release agreements used today, factors that may determine their enforceability, and things you may wish to consider when drafting or implementing these agreements. This document is not intended to, and does not, convey legal advice. It is always advisable for you to discuss matters surrounding waivers and releases with your attorney.

Exculpatory agreements

Liability waivers and release agreements are forms of exculpatory agreements. Generally speaking, an exculpatory clause or exculpatory agreement is a provision in a contract that attempts to relieve, for example, a service provider from liability due to a loss or damage sustained by a participant utilizing the services offered.[1] There are several types of exculpatory agreements used today for various service applications.

Types of exculpatory agreements

  • Liability waiver: In recognition of the inherent risks associated with a given activity (for example, water skiing), the business entity providing access, controlling, or otherwise making available the risky activity will seek to reduce and/or eliminate their liabilities relating to damages, injuries, claims, or losses stemming from the participation in the risky activity. This reduction/elimination of liabilities is attempted to be achieved by utilizing a liability waiver.
  • Assumption of risk agreement: A pre-participation document or clause whereby, for example, a customer agrees in advance that the business owner will not be liable for losses relating to the inherent risks associated with a specific activity or event. The agreement establishes that the customer is aware, acknowledges, and agrees to accept the risks presented by a given activity or event.
  • Disclaimers/sign posting: A statement posted that attempts to deny or limit responsibility. Sign postings are an example of a disclaimer. The sign is used to attempt to limit the scope of obligations and rights associated with access or use of a facility, device, or area. An example of a sign disclaimer is “Vehicles Are Parked at Owner’s Risk.”
  • Tickets/receipts: Very often tickets to events and/or receipts include fine print on the reverse side. This text can be used to include exculpatory statements and advisements. A common example can be found on the back of a Major League Baseball ticket with the foundation of the text being, “Ticket holder accepts all risks of illness/injury.”
  • Click-wrap/shrink-wrap (e-contracts)
    • Click-wrap ― Accepting the terms of a user agreement via clicking “yes” to utilize an app or access a website. The agreement most often will include an exculpatory clause, whereby the user accepts the liabilities relating to their activities.
    • Shrink-wrap ― The name was drawn from the shrink wrap packaging on CD-ROMs that were, at one time, the primary means of procuring new software. The software comes with licensing agreements which can also be expected to include exculpatory clauses.

Enforcement of liability waivers

Enforcement of liability waivers is state specific, and some states may conclude that they are typically unenforceable because they are generally poorly written or violative of public policy. In addition, another common reason they are not enforceable is in the determination of whether gross negligence was exercised by the party seeking a waiver of liability. In general, gross negligence is an extreme form of ordinary negligence and can be characterized as deliberate and reckless disregard for the treatment of others. [2]

Liability waivers, if well written, may protect against ordinary negligence (with exception of gross negligence) in some states. For example, some states have moderate or strict criteria that if adhered to may lead to effective enforcement. In contrast, even the most effective and well-written waiver may not be enforceable in some states. For example, some states may prohibit liability waivers for personal injury, but may allow releases related to property damage.

Trampoline jumping accident_1271736386_Gty (2).jpg

Liability waivers and children

For many years waivers signed by parents on behalf of their minor children were not enforceable based upon a matter of public policy. However, in recent years, courts in some states have enforced parental waivers. While waiver law is pretty straightforward when applied to adults, minors, however, are generally unable to legally sign a contract and are therefore not bound by the waiver. This may leave a facility liable for all negligent acts regarding minors and leaves them open to a lawsuit either by the parents of the child or from the child themselves.

Four important tips to consider regarding liability waivers and children

  1. A liability waiver signed only by a minor is not a valid contract.
  2. Most courts have ruled that a parent cannot sign away their child's right to sue for negligence.
  3. Only a minority of states have upheld a waiver signed by a minor and a parent.
  4. Agreement to participate forms and permission slips do not grant liability protection to a facility.

Overall, understanding your state’s position on parental waivers is important in the usage and successful enforcement of these waivers. Your counsel can help you understand the most recent court actions regarding the enforcement of these waivers.

Posting warning signs

Practically all businesses post warning signs to attempt to transfer liability of potentially dangerous conditions on their property or in their building. Warning signs may possibly provide some liability relief for you as a business owner; however, precautions still should be taken to reasonably control the exposure. No sign will erase the legal duty owed to protect the public. Discuss with counsel any warning signs on your property as well as how ―and whether ― they can help you transfer liability.

Things to consider when implementing effective agreements

A well-written liability waiver can be very beneficial in protecting your business. Below are a few things to consider when drafting or implementing a liability waiver.

  • Consult with a lawyer familiar with this area of law in your state.
  • Bring attention to the waiver. Do not hide the waiver inside a document or make it hard to find.
  • Customize your document to fit your operations. Do not utilize a generic “one size fits all” approach.
  • Make sure the inherent risk is clearly outlined in the waiver, and whose conduct is being waived.
  • Ensure each responsible participant signs a waiver, to avoid multiple signatures on one document.
  • Be willing to explain the risk. Have a representative with authority available.
  • Store and maintain all signed waivers.

Liability waivers are still one of the best risk management tools available to businesses and service providers to protect against damages, claims, and lawsuits associated with inherent risk. Four best practices that may aid in successful enforcement include:

  1. Understanding your state’s position on liability waivers.  Seek legal advice in this area.
  2. Address all safety issues immediately and take steps to maintain the property in a safe condition.
  3. Have your lawyer draft or implement waivers that are clear and customized to your operations and risk.
  4. Establish and maintain good documentation and recordkeeping practices.
Waiver of liability_473777626_Gty (6).jpg

Where to find assistance

For assistance in developing a solid liability waiver, we always suggest working with an attorney who is familiar with contract and tort. Lastly, your insurance agent is available to assist with insurance program needs.

 

References

  1. Matthiesen, Wickert & Lehrer, S.C. (2021). Exculpatory Agreements and Liability Waivers In All 50 States. Hartford, WI.
  2. Rothman, J. (2020, October 02). When Liability Waivers Are Unenforceable. Retrieved from The Rothman Law Firm LLC: https://www.rothmanlawyer.com/when-liability-waivers-are-unenforceable/

 

 

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.

LC 2021-588

 

Article

Preparing for a workers’ compensation premium audit

 

At The Hanover, we understand how your business can change and evolve over time.

To comply with state regulations and to help ensure your premium reflects your business operations appropriately, each year we perform a premium audit for workers’ compensation policies. During the audit, we compare the original payroll estimate with your actual payroll—and we need your participation to ensure the information is accurate.

To help you prepare for your audit, we've put together an overview of what to expect along with frequently asked questions (FAQs).

 

How should I prepare?

The best way to prepare for your audit is by keeping proper records and documentation throughout the policy period. An audit is conducted based on the review of accurate, organized records.

Your workers’ compensation policy is payroll based. To prepare for your audit, the following documents may be needed:

  • Quarterly 941 tax documents/payroll registers
  • Employee information, including:
    • Names
    • States
    • Description of duties
    • Gross wages
  • Furloughed wages
  • Contracted labor
    • Certificates of insurance for subcontractors, if applicable
    • Description, location and dates of work performed
    • Amount paid for contracted labor

What can I expect?

Your audit will be conducted in one of the four methods:

  1. On-site physical
  2. Electronic/virtual physical (constitutes as physical by all bureaus)
  3. Phone
  4. Mail

The method is determined based upon multiple factors, including premium, complexity and state regulations. An auditor will reach out to you following your policy expiration via phone, email or letter to provide you more information.

 

Frequently asked questions

What is a premium audit?

Your policy premium was developed based upon information provided by you or your agent prior to the start of your policy term. Because premiums are based on actual exposure (payroll, sales, etc.) for the term, we must verify that your premium accurately reflects your business activity. This premium audit process involves reviewing the original estimates against your actual exposure and business operations.

Why do I need to complete a premium audit?

Prior to the start of your policy, your agent and a Hanover underwriter estimated your premium based on your expected business operations. At the end of your policy period, an in-depth review of your operations is needed to determine if premiums were correctly estimated. Your premium will then be adjusted based on actual business outcomes, this is a requirement as outlined within your policy and is also a standard industry practice. Your participation in providing requested documentation is essential to ensure your premium is calculated correctly.

Is a premium audit optional?

No. The Hanover, as well as all other carriers providing business insurance coverage, is required by many state insurance filings to conduct an annual premium audit for certain policy types (workers' compensation, general liability, commercial auto, etc.). This is also outlined within the provisions of your policy declarations.

Please note that a non-compliant audit could result in an automatic increase of policy premium. This is known as an estimated audit.

How will a premium audit affect my policy premium?

Upon review of your business for the policy period compared to the policy estimates, your premium will be adjusted accordingly. By providing the necessary documents and information, this ensures that you are not paying more (or less) than necessary based upon your needed coverage. A thorough review of your business is completed by confirming your exposure (sales, payroll, et.), operations, employee classifications, use of subcontractors and inclusion or exclusion of officers.

Who will conduct my audit?

Your audit will be completed by a qualified auditor, either a Hanover employee or an auditor from one of our vendor partners. All auditors will specify that they are representing The Hanover and have been asked to conduct a premium audit. 

When will my audit take place and how will I be notified?

You should expect contact from an auditor no later than 15 days past policy expiration. This could be in the form of a letter, phone call or email. 

How do I know my data is secure?

All transmitted data is sent to a secure portal or via encrypted email.

I disagree with the results of my audit. What do I do next?

If you believe there is a discrepancy in the audit exposure or classification of your employees, please reach out to your agent, who will work with Hanover directly to initiate a formal dispute. A contact name and phone number of the auditor who completed your audit should also be visible on your audit statement and can also assist with this process.

I missed the deadline to submit my audit documents. What do I do next?

If you have received an estimated audit or believe that you have missed the deadline to submit your documents, please reach out to your agent, who will work with Hanover directly to have the audit reopened. A contact name and phone number of the auditor who completed your audit should also be visible on your audit statement and can also assist with this process.

Contact your local Hanover agent with any questions regarding the workers’ compensation audit process.

Preparing for a workers’ compensation premium audit

 

At The Hanover, we understand how your business can change and evolve over time.

To comply with state regulations and to help ensure your premium reflects your business operations appropriately, each year we perform a premium audit for workers’ compensation policies. During the audit, we compare the original payroll estimate with your actual payroll—and we need your participation to ensure the information is accurate.

To help you prepare for your audit, we've put together an overview of what to expect along with frequently asked questions (FAQs).

 

How should I prepare?

The best way to prepare for your audit is by keeping proper records and documentation throughout the policy period. An audit is conducted based on the review of accurate, organized records.

Your workers’ compensation policy is payroll based. To prepare for your audit, the following documents may be needed:

  • Quarterly 941 tax documents/payroll registers
  • Employee information, including:
    • Names
    • States
    • Description of duties
    • Gross wages
  • Furloughed wages
  • Contracted labor
    • Certificates of insurance for subcontractors, if applicable
    • Description, location and dates of work performed
    • Amount paid for contracted labor

What can I expect?

Your audit will be conducted in one of the four methods:

  1. On-site physical
  2. Electronic/virtual physical (constitutes as physical by all bureaus)
  3. Phone
  4. Mail

The method is determined based upon multiple factors, including premium, complexity and state regulations. An auditor will reach out to you following your policy expiration via phone, email or letter to provide you more information.

 

Frequently asked questions

What is a premium audit?

Your policy premium was developed based upon information provided by you or your agent prior to the start of your policy term. Because premiums are based on actual exposure (payroll, sales, etc.) for the term, we must verify that your premium accurately reflects your business activity. This premium audit process involves reviewing the original estimates against your actual exposure and business operations.

Why do I need to complete a premium audit?

Prior to the start of your policy, your agent and a Hanover underwriter estimated your premium based on your expected business operations. At the end of your policy period, an in-depth review of your operations is needed to determine if premiums were correctly estimated. Your premium will then be adjusted based on actual business outcomes, this is a requirement as outlined within your policy and is also a standard industry practice. Your participation in providing requested documentation is essential to ensure your premium is calculated correctly.

Is a premium audit optional?

No. The Hanover, as well as all other carriers providing business insurance coverage, is required by many state insurance filings to conduct an annual premium audit for certain policy types (workers' compensation, general liability, commercial auto, etc.). This is also outlined within the provisions of your policy declarations.

Please note that a non-compliant audit could result in an automatic increase of policy premium. This is known as an estimated audit.

How will a premium audit affect my policy premium?

Upon review of your business for the policy period compared to the policy estimates, your premium will be adjusted accordingly. By providing the necessary documents and information, this ensures that you are not paying more (or less) than necessary based upon your needed coverage. A thorough review of your business is completed by confirming your exposure (sales, payroll, et.), operations, employee classifications, use of subcontractors and inclusion or exclusion of officers.

Who will conduct my audit?

Your audit will be completed by a qualified auditor, either a Hanover employee or an auditor from one of our vendor partners. All auditors will specify that they are representing The Hanover and have been asked to conduct a premium audit. 

When will my audit take place and how will I be notified?

You should expect contact from an auditor no later than 15 days past policy expiration. This could be in the form of a letter, phone call or email. 

How do I know my data is secure?

All transmitted data is sent to a secure portal or via encrypted email.

I disagree with the results of my audit. What do I do next?

If you believe there is a discrepancy in the audit exposure or classification of your employees, please reach out to your agent, who will work with Hanover directly to initiate a formal dispute. A contact name and phone number of the auditor who completed your audit should also be visible on your audit statement and can also assist with this process.

I missed the deadline to submit my audit documents. What do I do next?

If you have received an estimated audit or believe that you have missed the deadline to submit your documents, please reach out to your agent, who will work with Hanover directly to have the audit reopened. A contact name and phone number of the auditor who completed your audit should also be visible on your audit statement and can also assist with this process.

Contact your local Hanover agent with any questions regarding the workers’ compensation audit process.

Preparing for a workers’ compensation premium audit

 

At The Hanover, we understand how your business can change and evolve over time.

To comply with state regulations and to help ensure your premium reflects your business operations appropriately, each year we perform a premium audit for workers’ compensation policies. During the audit, we compare the original payroll estimate with your actual payroll—and we need your participation to ensure the information is accurate.

To help you prepare for your audit, we've put together an overview of what to expect along with frequently asked questions (FAQs).

 

How should I prepare?

The best way to prepare for your audit is by keeping proper records and documentation throughout the policy period. An audit is conducted based on the review of accurate, organized records.

Your workers’ compensation policy is payroll based. To prepare for your audit, the following documents may be needed:

  • Quarterly 941 tax documents/payroll registers
  • Employee information, including:
    • Names
    • States
    • Description of duties
    • Gross wages
  • Furloughed wages
  • Contracted labor
    • Certificates of insurance for subcontractors, if applicable
    • Description, location and dates of work performed
    • Amount paid for contracted labor

What can I expect?

Your audit will be conducted in one of the four methods:

  1. On-site physical
  2. Electronic/virtual physical (constitutes as physical by all bureaus)
  3. Phone
  4. Mail

The method is determined based upon multiple factors, including premium, complexity and state regulations. An auditor will reach out to you following your policy expiration via phone, email or letter to provide you more information.

 

Frequently asked questions

What is a premium audit?

Your policy premium was developed based upon information provided by you or your agent prior to the start of your policy term. Because premiums are based on actual exposure (payroll, sales, etc.) for the term, we must verify that your premium accurately reflects your business activity. This premium audit process involves reviewing the original estimates against your actual exposure and business operations.

Why do I need to complete a premium audit?

Prior to the start of your policy, your agent and a Hanover underwriter estimated your premium based on your expected business operations. At the end of your policy period, an in-depth review of your operations is needed to determine if premiums were correctly estimated. Your premium will then be adjusted based on actual business outcomes, this is a requirement as outlined within your policy and is also a standard industry practice. Your participation in providing requested documentation is essential to ensure your premium is calculated correctly.

Is a premium audit optional?

No. The Hanover, as well as all other carriers providing business insurance coverage, is required by many state insurance filings to conduct an annual premium audit for certain policy types (workers' compensation, general liability, commercial auto, etc.). This is also outlined within the provisions of your policy declarations.

Please note that a non-compliant audit could result in an automatic increase of policy premium. This is known as an estimated audit.

How will a premium audit affect my policy premium?

Upon review of your business for the policy period compared to the policy estimates, your premium will be adjusted accordingly. By providing the necessary documents and information, this ensures that you are not paying more (or less) than necessary based upon your needed coverage. A thorough review of your business is completed by confirming your exposure (sales, payroll, et.), operations, employee classifications, use of subcontractors and inclusion or exclusion of officers.

Who will conduct my audit?

Your audit will be completed by a qualified auditor, either a Hanover employee or an auditor from one of our vendor partners. All auditors will specify that they are representing The Hanover and have been asked to conduct a premium audit. 

When will my audit take place and how will I be notified?

You should expect contact from an auditor no later than 15 days past policy expiration. This could be in the form of a letter, phone call or email. 

How do I know my data is secure?

All transmitted data is sent to a secure portal or via encrypted email.

I disagree with the results of my audit. What do I do next?

If you believe there is a discrepancy in the audit exposure or classification of your employees, please reach out to your agent, who will work with Hanover directly to initiate a formal dispute. A contact name and phone number of the auditor who completed your audit should also be visible on your audit statement and can also assist with this process.

I missed the deadline to submit my audit documents. What do I do next?

If you have received an estimated audit or believe that you have missed the deadline to submit your documents, please reach out to your agent, who will work with Hanover directly to have the audit reopened. A contact name and phone number of the auditor who completed your audit should also be visible on your audit statement and can also assist with this process.

Contact your local Hanover agent with any questions regarding the workers’ compensation audit process.

Preparing for a workers’ compensation premium audit

 

At The Hanover, we understand how your business can change and evolve over time.

To comply with state regulations and to help ensure your premium reflects your business operations appropriately, each year we perform a premium audit for workers’ compensation policies. During the audit, we compare the original payroll estimate with your actual payroll—and we need your participation to ensure the information is accurate.

To help you prepare for your audit, we've put together an overview of what to expect along with frequently asked questions (FAQs).

 

How should I prepare?

The best way to prepare for your audit is by keeping proper records and documentation throughout the policy period. An audit is conducted based on the review of accurate, organized records.

Your workers’ compensation policy is payroll based. To prepare for your audit, the following documents may be needed:

  • Quarterly 941 tax documents/payroll registers
  • Employee information, including:
    • Names
    • States
    • Description of duties
    • Gross wages
  • Furloughed wages
  • Contracted labor
    • Certificates of insurance for subcontractors, if applicable
    • Description, location and dates of work performed
    • Amount paid for contracted labor

What can I expect?

Your audit will be conducted in one of the four methods:

  1. On-site physical
  2. Electronic/virtual physical (constitutes as physical by all bureaus)
  3. Phone
  4. Mail

The method is determined based upon multiple factors, including premium, complexity and state regulations. An auditor will reach out to you following your policy expiration via phone, email or letter to provide you more information.

 

Frequently asked questions

What is a premium audit?

Your policy premium was developed based upon information provided by you or your agent prior to the start of your policy term. Because premiums are based on actual exposure (payroll, sales, etc.) for the term, we must verify that your premium accurately reflects your business activity. This premium audit process involves reviewing the original estimates against your actual exposure and business operations.

Why do I need to complete a premium audit?

Prior to the start of your policy, your agent and a Hanover underwriter estimated your premium based on your expected business operations. At the end of your policy period, an in-depth review of your operations is needed to determine if premiums were correctly estimated. Your premium will then be adjusted based on actual business outcomes, this is a requirement as outlined within your policy and is also a standard industry practice. Your participation in providing requested documentation is essential to ensure your premium is calculated correctly.

Is a premium audit optional?

No. The Hanover, as well as all other carriers providing business insurance coverage, is required by many state insurance filings to conduct an annual premium audit for certain policy types (workers' compensation, general liability, commercial auto, etc.). This is also outlined within the provisions of your policy declarations.

Please note that a non-compliant audit could result in an automatic increase of policy premium. This is known as an estimated audit.

How will a premium audit affect my policy premium?

Upon review of your business for the policy period compared to the policy estimates, your premium will be adjusted accordingly. By providing the necessary documents and information, this ensures that you are not paying more (or less) than necessary based upon your needed coverage. A thorough review of your business is completed by confirming your exposure (sales, payroll, et.), operations, employee classifications, use of subcontractors and inclusion or exclusion of officers.

Who will conduct my audit?

Your audit will be completed by a qualified auditor, either a Hanover employee or an auditor from one of our vendor partners. All auditors will specify that they are representing The Hanover and have been asked to conduct a premium audit. 

When will my audit take place and how will I be notified?

You should expect contact from an auditor no later than 15 days past policy expiration. This could be in the form of a letter, phone call or email. 

How do I know my data is secure?

All transmitted data is sent to a secure portal or via encrypted email.

I disagree with the results of my audit. What do I do next?

If you believe there is a discrepancy in the audit exposure or classification of your employees, please reach out to your agent, who will work with Hanover directly to initiate a formal dispute. A contact name and phone number of the auditor who completed your audit should also be visible on your audit statement and can also assist with this process.

I missed the deadline to submit my audit documents. What do I do next?

If you have received an estimated audit or believe that you have missed the deadline to submit your documents, please reach out to your agent, who will work with Hanover directly to have the audit reopened. A contact name and phone number of the auditor who completed your audit should also be visible on your audit statement and can also assist with this process.

Contact your local Hanover agent with any questions regarding the workers’ compensation audit process.

Infographic

See what they're saying about us

Every day, The Hanover strives to maintain our reputation for fairness and integrity by providing an exception customer experience for our customers. Nothing speaks to that better than the many positive reviews, ratings and distinctions our company has received -- from industry experts, our agents and our policyholders whose homes, autos and businesses we are proud to protect.

Learn more

See what they're saying about us

Every day, The Hanover strives to maintain our reputation for fairness and integrity by providing an exception customer experience for our customers. Nothing speaks to that better than the many positive reviews, ratings and distinctions our company has received -- from industry experts, our agents and our policyholders whose homes, autos and businesses we are proud to protect.

Learn more

See what they're saying about us

Infographic of accolades received by The Hanover

Every day, The Hanover strives to maintain our reputation for fairness and integrity by providing an exception customer experience for our customers. Nothing speaks to that better than the many positive reviews, ratings and distinctions our company has received -- from industry experts, our agents and our policyholders whose homes, autos and businesses we are proud to protect.

Learn more

Infographic transcript

See what they're saying about us

  • Named one of America's best mid-size employers since 2015 by Forbes.
  • Recognized on Newsweek's list for best customer serbice.
  • Named an employer of choice by US News and World Report
  • Recognized by TIME as one of the World's Best Companies.
  • 4.5 stars (Nerdwallet)
  • 4.2 stars (Google)
  • 4.7 stars (Trustpilot)
  • Ranked among the top 200 "JUST" companies by JUST Capital.
  • A rating from AM Best and S&P
  • A+ rating from the Better Business Bureau
  • One of the largest employee giving campaigns for a company of our size, benefiting United Way.
  • 100 score on the Corporate Equality Index for six consecutive years.
  • 9/10 customers with a paid home, business or auto claim are likely to recommend The Hanover.

 

 

See what they're saying about us

Infographic of accolades received by The Hanover

Every day, The Hanover strives to maintain our reputation for fairness and integrity by providing an exception customer experience for our customers. Nothing speaks to that better than the many positive reviews, ratings and distinctions our company has received -- from industry experts, our agents and our policyholders whose homes, autos and businesses we are proud to protect.

Learn more

Article

4 smart ways to make your home safer

Smart home security camera

Americans reported about $3 billion worth of personal property crime in 2019 – averaging nearly $2,700 per burglary. Yet despite the annual losses, nearly 40 percent of U.S. residents don’t use any type of home security measure.

An investment in smart home safety devices can help you stay one step ahead of potential criminals. Want peace of mind for your home? Get smarter with these four tips.

1. Invest in smart home security.

Having a home security system professionally installed can give you peace of mind when you are not home. Systems with voice control allow you to control safety and other practical aspects of your home, including locking doors, changing your thermostat and open your garage doors. Many of these systems also include 24/7 monitoring for additional support.

2. Deter thieves with a video doorbell.

A simple security camera is limited when it comes to deterring would-be thieves. Invest in a video doorbell to give yourself a camera that sends a motion-sensored alert to your smart device and enables two-way communication to see if it is an intruder or harmless visitor. Opt for a model with 25-foot camera range and night vision to make sure you can see everything.

3. Add a smart lock to your door.

According to Safewise, forcible entry accounted for about 56 percent of entry methods for burglaries. Your home security and automation systems can deter some would-be criminals but pairing that technology with a smart lock – using fingerprint and/or smartphones to unlock – can help turn away even tech savvy thieves.

4. Apply low tech best practices.

Smart technology can enhance the security of your home, but don’t forget some basic tips to dissuade criminals, such as:

  • Changing your WiFi passwords often, as many of these smart devices are accessed via your home network
  • Stopping your mail when out of town
  • Maintaining clear lines of sight around your house so thieves have less places to hide
  • Keeping updated on neighborhood news via social media

Talk to your independent agent about how to protect your home – as well as many of the high-value items in it – in the event of a burglary. Many insurers such as The Hanover also offer discounts when it comes to helping make your home more secure.

 

Contact an agent

Sources

Safewise
Consumer Reports
PC Mag

4 smart ways to make your home safer

Americans reported about $3 billion worth of personal property crime in 2019 – averaging nearly $2,700 per burglary. Yet despite the annual losses, nearly 40 percent of U.S. residents don’t use any type of home security measure.

An investment in smart home safety devices can help you stay one step ahead of potential criminals. Want peace of mind for your home? Get smarter with these four tips.

1. Invest in smart home security.

Having a home security system professionally installed can give you peace of mind when you are not home. Systems with voice control allow you to control safety and other practical aspects of your home, including locking doors, changing your thermostat and open your garage doors. Many of these systems also include 24/7 monitoring for additional support.

2. Deter thieves with a video doorbell.

A simple security camera is limited when it comes to deterring would-be thieves. Invest in a video doorbell to give yourself a camera that sends a motion-sensored alert to your smart device and enables two-way communication to see if it is an intruder or harmless visitor. Opt for a model with 25-foot camera range and night vision to make sure you can see everything.

3. Add a smart lock to your door.

According to Safewise, forcible entry accounted for about 56 percent of entry methods for burglaries. Your home security and automation systems can deter some would-be criminals but pairing that technology with a smart lock – using fingerprint and/or smartphones to unlock – can help turn away even tech savvy thieves.

4. Apply low tech best practices.

Smart technology can enhance the security of your home, but don’t forget some basic tips to dissuade criminals, such as:

  • Changing your WiFi passwords often, as many of these smart devices are accessed via your home network
  • Stopping your mail when out of town
  • Maintaining clear lines of sight around your house so thieves have less places to hide
  • Keeping updated on neighborhood news via social media

Talk to your independent agent about how to protect your home – as well as many of the high-value items in it – in the event of a burglary. Many insurers such as The Hanover also offer discounts when it comes to helping make your home more secure.

 

Contact an agent

Sources

Safewise
Consumer Reports
PC Mag

4 smart ways to make your home safer

Americans reported about $3 billion worth of personal property crime in 2019 – averaging nearly $2,700 per burglary. Yet despite the annual losses, nearly 40 percent of U.S. residents don’t use any type of home security measure.

An investment in smart home safety devices can help you stay one step ahead of potential criminals. Want peace of mind for your home? Get smarter with these four tips.

1. Invest in smart home security.

Having a home security system professionally installed can give you peace of mind when you are not home. Systems with voice control allow you to control safety and other practical aspects of your home, including locking doors, changing your thermostat and open your garage doors. Many of these systems also include 24/7 monitoring for additional support.

2. Deter thieves with a video doorbell.

A simple security camera is limited when it comes to deterring would-be thieves. Invest in a video doorbell to give yourself a camera that sends a motion-sensored alert to your smart device and enables two-way communication to see if it is an intruder or harmless visitor. Opt for a model with 25-foot camera range and night vision to make sure you can see everything.

3. Add a smart lock to your door.

According to Safewise, forcible entry accounted for about 56 percent of entry methods for burglaries. Your home security and automation systems can deter some would-be criminals but pairing that technology with a smart lock – using fingerprint and/or smartphones to unlock – can help turn away even tech savvy thieves.

4. Apply low tech best practices.

Smart technology can enhance the security of your home, but don’t forget some basic tips to dissuade criminals, such as:

  • Changing your WiFi passwords often, as many of these smart devices are accessed via your home network
  • Stopping your mail when out of town
  • Maintaining clear lines of sight around your house so thieves have less places to hide
  • Keeping updated on neighborhood news via social media

Talk to your independent agent about how to protect your home – as well as many of the high-value items in it – in the event of a burglary. Many insurers such as The Hanover also offer discounts when it comes to helping make your home more secure.

 

Contact an agent

Sources

Safewise
Consumer Reports
PC Mag

4 smart ways to make your home safer

Americans reported about $3 billion worth of personal property crime in 2019 – averaging nearly $2,700 per burglary. Yet despite the annual losses, nearly 40 percent of U.S. residents don’t use any type of home security measure.

An investment in smart home safety devices can help you stay one step ahead of potential criminals. Want peace of mind for your home? Get smarter with these four tips.

1. Invest in smart home security.

Having a home security system professionally installed can give you peace of mind when you are not home. Systems with voice control allow you to control safety and other practical aspects of your home, including locking doors, changing your thermostat and open your garage doors. Many of these systems also include 24/7 monitoring for additional support.

2. Deter thieves with a video doorbell.

A simple security camera is limited when it comes to deterring would-be thieves. Invest in a video doorbell to give yourself a camera that sends a motion-sensored alert to your smart device and enables two-way communication to see if it is an intruder or harmless visitor. Opt for a model with 25-foot camera range and night vision to make sure you can see everything.

3. Add a smart lock to your door.

According to Safewise, forcible entry accounted for about 56 percent of entry methods for burglaries. Your home security and automation systems can deter some would-be criminals but pairing that technology with a smart lock – using fingerprint and/or smartphones to unlock – can help turn away even tech savvy thieves.

4. Apply low tech best practices.

Smart technology can enhance the security of your home, but don’t forget some basic tips to dissuade criminals, such as:

  • Changing your WiFi passwords often, as many of these smart devices are accessed via your home network
  • Stopping your mail when out of town
  • Maintaining clear lines of sight around your house so thieves have less places to hide
  • Keeping updated on neighborhood news via social media

Talk to your independent agent about how to protect your home – as well as many of the high-value items in it – in the event of a burglary. Many insurers such as The Hanover also offer discounts when it comes to helping make your home more secure.

 

Contact an agent

Sources

Safewise
Consumer Reports
PC Mag

Article

Impairment report

To report an impairment to your sprinkler system, fire pump, special fire protection or security burglar alarm system, please complete this form in its entirety.

When you have finished entering your data, please attach it to an email and send it to LCIMPAIR@HANOVER.COM.

Be sure to download an impairment checklist. This list will help ensure that all the proper precautions have been taken to protect your facilities while the protection is out of service.

Click here to download the Jewelers alarm system impairment checklist.

Impairment report

To report an impairment to your sprinkler system, fire pump, special fire protection or security burglar alarm system, please complete this form in its entirety.

When you have finished entering your data, please attach it to an email and send it to LCIMPAIR@HANOVER.COM.

Be sure to download an impairment checklist. This list will help ensure that all the proper precautions have been taken to protect your facilities while the protection is out of service.

Click here to download the Jewelers alarm system impairment checklist.

Impairment report

To report an impairment to your sprinkler system, fire pump, special fire protection or security burglar alarm system, please complete this form in its entirety.

When you have finished entering your data, please attach it to an email and send it to LCIMPAIR@HANOVER.COM.

Be sure to download an impairment checklist. This list will help ensure that all the proper precautions have been taken to protect your facilities while the protection is out of service.

Click here to download the Jewelers alarm system impairment checklist.

Impairment report

To report an impairment to your sprinkler system, fire pump, special fire protection or security burglar alarm system, please complete this form in its entirety.

When you have finished entering your data, please attach it to an email and send it to LCIMPAIR@HANOVER.COM.

Be sure to download an impairment checklist. This list will help ensure that all the proper precautions have been taken to protect your facilities while the protection is out of service.

Click here to download the Jewelers alarm system impairment checklist.

Article

Jeweler's alarm system impairment

Jewelry store

Your alarm system is a key protection system for your property. 

In the event that your alarm system fails or requires service that prevents normal operation, you should take additional precautions to safeguard your property.

 

 

 

Alarm system impairment process

  • Notify your agent of the alarm system impairment. The agent can contact your underwriter to advise them of the situation.
  • Notify the alarm company to immediately request repairs.
  • Notify the police department and advise them of the situation. Ask the police for additional patrols and surveillance during this period.
  • Engage a security guard to protect your premises when closed.
  • Leave additional interior and exterior lights on to improve the ability of police to observe the premises.
  • Call your agent when the alarm system is back in service.

Have a plan to implement these procedures in the event your alarm system fails. Having pre-arranged a point of contact with a security agency, knowing the local police contact person and having the contact information for the alarm repair service will make this process less stressful and easier to implement.

 

Jeweler's alarm system impairment

Your alarm system is a key protection system for your property. 

In the event that your alarm system fails or requires service that prevents normal operation, you should take additional precautions to safeguard your property.

 

 

 

Alarm system impairment process

  • Notify your agent of the alarm system impairment. The agent can contact your underwriter to advise them of the situation.
  • Notify the alarm company to immediately request repairs.
  • Notify the police department and advise them of the situation. Ask the police for additional patrols and surveillance during this period.
  • Engage a security guard to protect your premises when closed.
  • Leave additional interior and exterior lights on to improve the ability of police to observe the premises.
  • Call your agent when the alarm system is back in service.

Have a plan to implement these procedures in the event your alarm system fails. Having pre-arranged a point of contact with a security agency, knowing the local police contact person and having the contact information for the alarm repair service will make this process less stressful and easier to implement.

 

Jeweler's alarm system impairment

Your alarm system is a key protection system for your property. 

In the event that your alarm system fails or requires service that prevents normal operation, you should take additional precautions to safeguard your property.

 

 

 

Alarm system impairment process

  • Notify your agent of the alarm system impairment. The agent can contact your underwriter to advise them of the situation.
  • Notify the alarm company to immediately request repairs.
  • Notify the police department and advise them of the situation. Ask the police for additional patrols and surveillance during this period.
  • Engage a security guard to protect your premises when closed.
  • Leave additional interior and exterior lights on to improve the ability of police to observe the premises.
  • Call your agent when the alarm system is back in service.

Have a plan to implement these procedures in the event your alarm system fails. Having pre-arranged a point of contact with a security agency, knowing the local police contact person and having the contact information for the alarm repair service will make this process less stressful and easier to implement.

 

Jeweler's alarm system impairment

Your alarm system is a key protection system for your property. 

In the event that your alarm system fails or requires service that prevents normal operation, you should take additional precautions to safeguard your property.

 

 

 

Alarm system impairment process

  • Notify your agent of the alarm system impairment. The agent can contact your underwriter to advise them of the situation.
  • Notify the alarm company to immediately request repairs.
  • Notify the police department and advise them of the situation. Ask the police for additional patrols and surveillance during this period.
  • Engage a security guard to protect your premises when closed.
  • Leave additional interior and exterior lights on to improve the ability of police to observe the premises.
  • Call your agent when the alarm system is back in service.

Have a plan to implement these procedures in the event your alarm system fails. Having pre-arranged a point of contact with a security agency, knowing the local police contact person and having the contact information for the alarm repair service will make this process less stressful and easier to implement.

 

Article

Why are home insurance costs rising?

Illustrated image of a neighborhood. Rain, fire, tornado and wind are impacting each home.

You have probably noticed higher prices in many areas of your life – from what you pay at the gas pump to the grocery store, for shipping and more. Home insurance rates are not immune to this trend.

Across the industry in most markets and with most insurance companies, whether you’ve had a claim or not, home insurance premiums are rising due to a variety of factors. Many of these factors are out of your control, as well as your agent’s and insurance company’s.

 

What factors influence home insurance rates?

Rates are determined by the likelihood of a homeowner filing a claim and the potential risks involved. Home insurance rates are driven by numerous standard factors, including:

  • Amount of coverage needed
  • Age of the home
  • Location
  • Liability issues
  • Previous claims

There are other influencers caused by national trends which also contribute to rates. The biggest cause of rates going up is the rise in inflation. When prices rise, the cost of living and owning a home increases, which in turn influences home insurance rates. These rate increases are happening in insurance companies across the country.

To give you a glimpse into some of the factors causing rates to rise, we have compiled insights on nationwide trends.

Jump to: More severe weather |Higher material costs | Increased shipping costs and delays | Higher labor | Bigger, upscale homes | Increase in fire damage | Increase in water damage

 

More severe weather

From windstorms to hail events, extensive freezing spells and torrential rains, most of the country is experiencing more frequent and more extreme weather events that lead to more damage and higher overall insurance costs.

  • There were 18 weather/climate disaster events in the U.S. in 2021 with losses exceeding $1 billion in damage1.
  • With an annual average of seven events from 1980-2020, the increase in severe weather caused 39% of all U.S. home insurance claims2.
  • According to a nationwide survey of 2,500 homeowners conducted by the Center for Insurance Policy and Research (CIPR), more than two-thirds of respondents said they were aware of things they could do to protect their property from extreme weather events to reduce their risk, but this awareness does not necessarily translate into action. Only half had made changes.3
  • The CIPR study also found that two-thirds of respondents said their homeowners insurance costs have gone up over the past three years, with “increase in natural disasters such as hurricanes and wildfires” indicated as a key reason believed to be driving the increase. 4

Coverage to consider

Not all home insurance is created equally. Your independent agent can recommend added value coverage that enhances your protection and the restoration process should weather damage your home.

Higher material costs

From record high prices to shortages of materials, the home building industry has seen lengthy delays, increased prices and a large number of postponed projects. These higher prices for construction projects, renovations and repairs lead to higher costs for homeowners.

  • With the price of building materials, such as drywall, shingles, lumber and copper wiring, up an average of 26%, homes have become more expensive to fix and replace. According to a survey completed by the National Association of Home Builders5, this is the largest single year increase in the survey’s history.
  • Ninety three percent of contractors are impacted by the increased price of materials which leads to higher replacement cost when insurance claims are filed.6

How market value is different from replacement value

The market value of a home is different from the replacement cost of the home. Market value is the amount a buyer is willing to pay for a home. Replacement cost refers to the amount it would take to completely rebuild a home at the current price of labor and materials. With rising prices and more severe damage caused by weather and other factors, additional coverage may be needed.

Coverage to consider:

Increased shipping costs and delays

The pandemic has impacted almost every part of the global supply chain causing shipping delays and higher prices. When shipping ports get overwhelmed and backed up, it impacts the time it takes to get materials to homeowners and the cost of delivering the materials. From appliances to plumbing fixtures, it’s taken weeks and months longer to get building supplies, which previously had taken days to get.

  • 94% of Fortune 1000 companies have reported supply chain disruptions from COVID-19.7
  • Globally, RBC Capital Markets reported 77% of ports are experiencing abnormally long times to turnaround traffic.8   
  • In fact, Freightos.com marketplace data shows that in September 2021, China-US ocean shipments took an average of 73 days to arrive at their final destination, 83% longer than in September 20199

Do you have enough coverage?

Now is the time to talk to your independent agents about Additional living expense coverage. Additional living expenses coverage (ALE) is the money you’ll need to live elsewhere if forced from your home due to fire or any disaster covered by your homeowner’s insurance policy.

ALE coverage pays for expenses beyond your “normal” costs at home.

This coverage is available to reimburse you for the extra costs to maintain the lifestyle you had before. For example: hotel bills, restaurant meals, emergency clothing, laundry service, pet boarding, storage, furniture rental for items you’re accustomed to having, and much more.

With postponements and delays, be sure to review your ALE coverage and make sure you have enough so you are supported when you need it.

Higher labor costs

Builders often hire sub-contractors who handle electrical, drywall, plumbing and other areas of construction. With the current labor shortages, higher costs are needed to secure skilled laborers or obtain the needed materials. This in turn has forced home builders to factor in higher costs for construction and remodeling work.

  • Eighty-nine percent of contractors are having a hard time finding craft workers and 88% of firms are experiencing project delays.10
  • Additionally, the U.S. is seeing a drop in the number of Americans becoming tradespeople. The National Electrical Contractors Association reports that 7,000 electricians join the field annually, but 10,000 retire.11 This shortfall results in higher prices and longer wait times for home projects.

Bigger, upscale homes

Many homeowners continue to increase their budget and the size of their projects for a more upscale result with custom cabinetry, granite, hardwood floors, finished basements and more. Higher-end renovations lead to higher replacement costs when damages arise.

  • According to the National Kitchen and Bath Association, 62% of their design firm members reported an increase in the scope and size of their projects prior to 2020.12
  • The home improvement industry has seen a 30% growth in luxury home products, showing that homeowners are willing to spend more to renovate with high end products.13

Higher end renovations may mean higher replacement costs

There are many reasons why homeowners renovate their homes. Whether it’s to improve and increase their home’s value or to update its style and efficiency, home improvements take time, money and patience. While all homeowners need to protect their homes, these types of updates may increase the value of your home and require additional protection.

Coverage to consider:

Increase in fire damage

Fires cause devastation, destruction, casualties and more. Most home fires and fire casualties result from five causes: cooking, heating, electrical distribution and lighting equipment, intentional fire setting, and smoking materials.14 While there are fewer home fires than there were 40 years ago, more damage is caused by fires today.15

  • Newer homes burn nearly 6x faster than older ones due to the use of synthetic materials and open-floor plans, according to Underwriters Laboratories. This results in more total losses from fire and higher rebuild costs.16
  • The average fire loss in 2020 was 1.5 times higher at $24,700 per fire compared to $16,300 per fire in 1980 (adjusted for inflation), according to the National Fire Prevention Association.17

Increase in water damage

Whether it be leaking or burst pipes, plumbing issues, sewage backups, pump overflows, clogged gutters, ice dams or extreme weather conditions, water damage can not only lead to mold, wet carpets and a bad smell – but to health issues as well.

  • About one in 50 insured homes has a property damage claim caused by water damage or freezing each year with the average claim around $10,900.18
  • Water damage and freezing losses have increased by more than 10% from 2017 to 2019.19

Are water backup damage incidents covered by home insurance?

Not all home insurance policies provide coverage for water backup damage. Water backup and sump pump overflow coverage is often an additional option. This coverage provides extra protection against water damage caused by backed up drains or a sump pump failure.

Coverage to consider:

An overview of these trends can be viewed on our Why are insurance costs rising for homeowners infographic. 

Working with an independent agent will help ensure you have the right coverage with The Hanover’s suite of products.

Questions? Contact your independent agent to learn more.

Find an agent

 

Sources

[1] National Centers for Environmental Information [2] Insurance Business Magazine [3] CIPR Consumer Property Insurance Report  [4] CIPR Consumer Property Insurance Report  [5] National Association of Home Builders [6] Associated General Contractors of America [7]Accenture [8] Bloomberg [9]Freightos [10] Associated General Contractors of America [11] Forbes [12] Forbes [13] Forbes [14] National Fire Prevention Association [15] National Fire Prevention Association [16] Associated Press [17] National Fire Prevention Association [18] Insurance Information Institute [19] Insurance Information Institute

Why are home insurance costs rising?

You have probably noticed higher prices in many areas of your life – from what you pay at the gas pump to the grocery store, for shipping and more. Home insurance rates are not immune to this trend.

Across the industry in most markets and with most insurance companies, whether you’ve had a claim or not, home insurance premiums are rising due to a variety of factors. Many of these factors are out of your control, as well as your agent’s and insurance company’s.

 

What factors influence home insurance rates?

Rates are determined by the likelihood of a homeowner filing a claim and the potential risks involved. Home insurance rates are driven by numerous standard factors, including:

  • Amount of coverage needed
  • Age of the home
  • Location
  • Liability issues
  • Previous claims

There are other influencers caused by national trends which also contribute to rates. The biggest cause of rates going up is the rise in inflation. When prices rise, the cost of living and owning a home increases, which in turn influences home insurance rates. These rate increases are happening in insurance companies across the country.

To give you a glimpse into some of the factors causing rates to rise, we have compiled insights on nationwide trends.

Jump to: More severe weather |Higher material costs | Increased shipping costs and delays | Higher labor | Bigger, upscale homes | Increase in fire damage | Increase in water damage

 

More severe weather

From windstorms to hail events, extensive freezing spells and torrential rains, most of the country is experiencing more frequent and more extreme weather events that lead to more damage and higher overall insurance costs.

  • There were 18 weather/climate disaster events in the U.S. in 2021 with losses exceeding $1 billion in damage1.
  • With an annual average of seven events from 1980-2020, the increase in severe weather caused 39% of all U.S. home insurance claims2.
  • According to a nationwide survey of 2,500 homeowners conducted by the Center for Insurance Policy and Research (CIPR), more than two-thirds of respondents said they were aware of things they could do to protect their property from extreme weather events to reduce their risk, but this awareness does not necessarily translate into action. Only half had made changes.3
  • The CIPR study also found that two-thirds of respondents said their homeowners insurance costs have gone up over the past three years, with “increase in natural disasters such as hurricanes and wildfires” indicated as a key reason believed to be driving the increase. 4

Coverage to consider

Not all home insurance is created equally. Your independent agent can recommend added value coverage that enhances your protection and the restoration process should weather damage your home.

Higher material costs

From record high prices to shortages of materials, the home building industry has seen lengthy delays, increased prices and a large number of postponed projects. These higher prices for construction projects, renovations and repairs lead to higher costs for homeowners.

  • With the price of building materials, such as drywall, shingles, lumber and copper wiring, up an average of 26%, homes have become more expensive to fix and replace. According to a survey completed by the National Association of Home Builders5, this is the largest single year increase in the survey’s history.
  • Ninety three percent of contractors are impacted by the increased price of materials which leads to higher replacement cost when insurance claims are filed.6

How market value is different from replacement value

The market value of a home is different from the replacement cost of the home. Market value is the amount a buyer is willing to pay for a home. Replacement cost refers to the amount it would take to completely rebuild a home at the current price of labor and materials. With rising prices and more severe damage caused by weather and other factors, additional coverage may be needed.

Coverage to consider:

Increased shipping costs and delays

The pandemic has impacted almost every part of the global supply chain causing shipping delays and higher prices. When shipping ports get overwhelmed and backed up, it impacts the time it takes to get materials to homeowners and the cost of delivering the materials. From appliances to plumbing fixtures, it’s taken weeks and months longer to get building supplies, which previously had taken days to get.

  • 94% of Fortune 1000 companies have reported supply chain disruptions from COVID-19.7
  • Globally, RBC Capital Markets reported 77% of ports are experiencing abnormally long times to turnaround traffic.8   
  • In fact, Freightos.com marketplace data shows that in September 2021, China-US ocean shipments took an average of 73 days to arrive at their final destination, 83% longer than in September 20199

Do you have enough coverage?

Now is the time to talk to your independent agents about Additional living expense coverage. Additional living expenses coverage (ALE) is the money you’ll need to live elsewhere if forced from your home due to fire or any disaster covered by your homeowner’s insurance policy.

ALE coverage pays for expenses beyond your “normal” costs at home.

This coverage is available to reimburse you for the extra costs to maintain the lifestyle you had before. For example: hotel bills, restaurant meals, emergency clothing, laundry service, pet boarding, storage, furniture rental for items you’re accustomed to having, and much more.

With postponements and delays, be sure to review your ALE coverage and make sure you have enough so you are supported when you need it.

Higher labor costs

Builders often hire sub-contractors who handle electrical, drywall, plumbing and other areas of construction. With the current labor shortages, higher costs are needed to secure skilled laborers or obtain the needed materials. This in turn has forced home builders to factor in higher costs for construction and remodeling work.

  • Eighty-nine percent of contractors are having a hard time finding craft workers and 88% of firms are experiencing project delays.10
  • Additionally, the U.S. is seeing a drop in the number of Americans becoming tradespeople. The National Electrical Contractors Association reports that 7,000 electricians join the field annually, but 10,000 retire.11 This shortfall results in higher prices and longer wait times for home projects.

Bigger, upscale homes

Many homeowners continue to increase their budget and the size of their projects for a more upscale result with custom cabinetry, granite, hardwood floors, finished basements and more. Higher-end renovations lead to higher replacement costs when damages arise.

  • According to the National Kitchen and Bath Association, 62% of their design firm members reported an increase in the scope and size of their projects prior to 2020.12
  • The home improvement industry has seen a 30% growth in luxury home products, showing that homeowners are willing to spend more to renovate with high end products.13

Higher end renovations may mean higher replacement costs

There are many reasons why homeowners renovate their homes. Whether it’s to improve and increase their home’s value or to update its style and efficiency, home improvements take time, money and patience. While all homeowners need to protect their homes, these types of updates may increase the value of your home and require additional protection.

Coverage to consider:

Increase in fire damage

Fires cause devastation, destruction, casualties and more. Most home fires and fire casualties result from five causes: cooking, heating, electrical distribution and lighting equipment, intentional fire setting, and smoking materials.14 While there are fewer home fires than there were 40 years ago, more damage is caused by fires today.15

  • Newer homes burn nearly 6x faster than older ones due to the use of synthetic materials and open-floor plans, according to Underwriters Laboratories. This results in more total losses from fire and higher rebuild costs.16
  • The average fire loss in 2020 was 1.5 times higher at $24,700 per fire compared to $16,300 per fire in 1980 (adjusted for inflation), according to the National Fire Prevention Association.17

Increase in water damage

Whether it be leaking or burst pipes, plumbing issues, sewage backups, pump overflows, clogged gutters, ice dams or extreme weather conditions, water damage can not only lead to mold, wet carpets and a bad smell – but to health issues as well.

  • About one in 50 insured homes has a property damage claim caused by water damage or freezing each year with the average claim around $10,900.18
  • Water damage and freezing losses have increased by more than 10% from 2017 to 2019.19

Are water backup damage incidents covered by home insurance?

Not all home insurance policies provide coverage for water backup damage. Water backup and sump pump overflow coverage is often an additional option. This coverage provides extra protection against water damage caused by backed up drains or a sump pump failure.

Coverage to consider:

An overview of these trends can be viewed on our Why are insurance costs rising for homeowners infographic. 

Working with an independent agent will help ensure you have the right coverage with The Hanover’s suite of products.

Questions? Contact your independent agent to learn more.

Find an agent

 

Sources

[1] National Centers for Environmental Information [2] Insurance Business Magazine [3] CIPR Consumer Property Insurance Report  [4] CIPR Consumer Property Insurance Report  [5] National Association of Home Builders [6] Associated General Contractors of America [7]Accenture [8] Bloomberg [9]Freightos [10] Associated General Contractors of America [11] Forbes [12] Forbes [13] Forbes [14] National Fire Prevention Association [15] National Fire Prevention Association [16] Associated Press [17] National Fire Prevention Association [18] Insurance Information Institute [19] Insurance Information Institute

Why are home insurance costs rising?

You have probably noticed higher prices in many areas of your life – from what you pay at the gas pump to the grocery store, for shipping and more. Home insurance rates are not immune to this trend.

Across the industry in most markets and with most insurance companies, whether you’ve had a claim or not, home insurance premiums are rising due to a variety of factors. Many of these factors are out of your control, as well as your agent’s and insurance company’s.

 

What factors influence home insurance rates?

Rates are determined by the likelihood of a homeowner filing a claim and the potential risks involved. Home insurance rates are driven by numerous standard factors, including:

  • Amount of coverage needed
  • Age of the home
  • Location
  • Liability issues
  • Previous claims

There are other influencers caused by national trends which also contribute to rates. The biggest cause of rates going up is the rise in inflation. When prices rise, the cost of living and owning a home increases, which in turn influences home insurance rates. These rate increases are happening in insurance companies across the country.

To give you a glimpse into some of the factors causing rates to rise, we have compiled insights on nationwide trends.

Jump to: More severe weather |Higher material costs | Increased shipping costs and delays | Higher labor | Bigger, upscale homes | Increase in fire damage | Increase in water damage

 

More severe weather

From windstorms to hail events, extensive freezing spells and torrential rains, most of the country is experiencing more frequent and more extreme weather events that lead to more damage and higher overall insurance costs.

  • There were 18 weather/climate disaster events in the U.S. in 2021 with losses exceeding $1 billion in damage1.
  • With an annual average of seven events from 1980-2020, the increase in severe weather caused 39% of all U.S. home insurance claims2.
  • According to a nationwide survey of 2,500 homeowners conducted by the Center for Insurance Policy and Research (CIPR), more than two-thirds of respondents said they were aware of things they could do to protect their property from extreme weather events to reduce their risk, but this awareness does not necessarily translate into action. Only half had made changes.3
  • The CIPR study also found that two-thirds of respondents said their homeowners insurance costs have gone up over the past three years, with “increase in natural disasters such as hurricanes and wildfires” indicated as a key reason believed to be driving the increase. 4

Coverage to consider

Not all home insurance is created equally. Your independent agent can recommend added value coverage that enhances your protection and the restoration process should weather damage your home.

Higher material costs

From record high prices to shortages of materials, the home building industry has seen lengthy delays, increased prices and a large number of postponed projects. These higher prices for construction projects, renovations and repairs lead to higher costs for homeowners.

  • With the price of building materials, such as drywall, shingles, lumber and copper wiring, up an average of 26%, homes have become more expensive to fix and replace. According to a survey completed by the National Association of Home Builders5, this is the largest single year increase in the survey’s history.
  • Ninety three percent of contractors are impacted by the increased price of materials which leads to higher replacement cost when insurance claims are filed.6

How market value is different from replacement value

The market value of a home is different from the replacement cost of the home. Market value is the amount a buyer is willing to pay for a home. Replacement cost refers to the amount it would take to completely rebuild a home at the current price of labor and materials. With rising prices and more severe damage caused by weather and other factors, additional coverage may be needed.

Coverage to consider:

Increased shipping costs and delays

The pandemic has impacted almost every part of the global supply chain causing shipping delays and higher prices. When shipping ports get overwhelmed and backed up, it impacts the time it takes to get materials to homeowners and the cost of delivering the materials. From appliances to plumbing fixtures, it’s taken weeks and months longer to get building supplies, which previously had taken days to get.

  • 94% of Fortune 1000 companies have reported supply chain disruptions from COVID-19.7
  • Globally, RBC Capital Markets reported 77% of ports are experiencing abnormally long times to turnaround traffic.8   
  • In fact, Freightos.com marketplace data shows that in September 2021, China-US ocean shipments took an average of 73 days to arrive at their final destination, 83% longer than in September 20199

Do you have enough coverage?

Now is the time to talk to your independent agents about Additional living expense coverage. Additional living expenses coverage (ALE) is the money you’ll need to live elsewhere if forced from your home due to fire or any disaster covered by your homeowner’s insurance policy.

ALE coverage pays for expenses beyond your “normal” costs at home.

This coverage is available to reimburse you for the extra costs to maintain the lifestyle you had before. For example: hotel bills, restaurant meals, emergency clothing, laundry service, pet boarding, storage, furniture rental for items you’re accustomed to having, and much more.

With postponements and delays, be sure to review your ALE coverage and make sure you have enough so you are supported when you need it.

Higher labor costs

Builders often hire sub-contractors who handle electrical, drywall, plumbing and other areas of construction. With the current labor shortages, higher costs are needed to secure skilled laborers or obtain the needed materials. This in turn has forced home builders to factor in higher costs for construction and remodeling work.

  • Eighty-nine percent of contractors are having a hard time finding craft workers and 88% of firms are experiencing project delays.10
  • Additionally, the U.S. is seeing a drop in the number of Americans becoming tradespeople. The National Electrical Contractors Association reports that 7,000 electricians join the field annually, but 10,000 retire.11 This shortfall results in higher prices and longer wait times for home projects.

Bigger, upscale homes

Many homeowners continue to increase their budget and the size of their projects for a more upscale result with custom cabinetry, granite, hardwood floors, finished basements and more. Higher-end renovations lead to higher replacement costs when damages arise.

  • According to the National Kitchen and Bath Association, 62% of their design firm members reported an increase in the scope and size of their projects prior to 2020.12
  • The home improvement industry has seen a 30% growth in luxury home products, showing that homeowners are willing to spend more to renovate with high end products.13

Higher end renovations may mean higher replacement costs

There are many reasons why homeowners renovate their homes. Whether it’s to improve and increase their home’s value or to update its style and efficiency, home improvements take time, money and patience. While all homeowners need to protect their homes, these types of updates may increase the value of your home and require additional protection.

Coverage to consider:

Increase in fire damage

Fires cause devastation, destruction, casualties and more. Most home fires and fire casualties result from five causes: cooking, heating, electrical distribution and lighting equipment, intentional fire setting, and smoking materials.14 While there are fewer home fires than there were 40 years ago, more damage is caused by fires today.15

  • Newer homes burn nearly 6x faster than older ones due to the use of synthetic materials and open-floor plans, according to Underwriters Laboratories. This results in more total losses from fire and higher rebuild costs.16
  • The average fire loss in 2020 was 1.5 times higher at $24,700 per fire compared to $16,300 per fire in 1980 (adjusted for inflation), according to the National Fire Prevention Association.17

Increase in water damage

Whether it be leaking or burst pipes, plumbing issues, sewage backups, pump overflows, clogged gutters, ice dams or extreme weather conditions, water damage can not only lead to mold, wet carpets and a bad smell – but to health issues as well.

  • About one in 50 insured homes has a property damage claim caused by water damage or freezing each year with the average claim around $10,900.18
  • Water damage and freezing losses have increased by more than 10% from 2017 to 2019.19

Are water backup damage incidents covered by home insurance?

Not all home insurance policies provide coverage for water backup damage. Water backup and sump pump overflow coverage is often an additional option. This coverage provides extra protection against water damage caused by backed up drains or a sump pump failure.

Coverage to consider:

An overview of these trends can be viewed on our Why are insurance costs rising for homeowners infographic. 

Working with an independent agent will help ensure you have the right coverage with The Hanover’s suite of products.

Questions? Contact your independent agent to learn more.

Find an agent

 

Sources

[1] National Centers for Environmental Information [2] Insurance Business Magazine [3] CIPR Consumer Property Insurance Report  [4] CIPR Consumer Property Insurance Report  [5] National Association of Home Builders [6] Associated General Contractors of America [7]Accenture [8] Bloomberg [9]Freightos [10] Associated General Contractors of America [11] Forbes [12] Forbes [13] Forbes [14] National Fire Prevention Association [15] National Fire Prevention Association [16] Associated Press [17] National Fire Prevention Association [18] Insurance Information Institute [19] Insurance Information Institute

Why are home insurance costs rising?

You have probably noticed higher prices in many areas of your life – from what you pay at the gas pump to the grocery store, for shipping and more. Home insurance rates are not immune to this trend.

Across the industry in most markets and with most insurance companies, whether you’ve had a claim or not, home insurance premiums are rising due to a variety of factors. Many of these factors are out of your control, as well as your agent’s and insurance company’s.

 

What factors influence home insurance rates?

Rates are determined by the likelihood of a homeowner filing a claim and the potential risks involved. Home insurance rates are driven by numerous standard factors, including:

  • Amount of coverage needed
  • Age of the home
  • Location
  • Liability issues
  • Previous claims

There are other influencers caused by national trends which also contribute to rates. The biggest cause of rates going up is the rise in inflation. When prices rise, the cost of living and owning a home increases, which in turn influences home insurance rates. These rate increases are happening in insurance companies across the country.

To give you a glimpse into some of the factors causing rates to rise, we have compiled insights on nationwide trends.

Jump to: More severe weather |Higher material costs | Increased shipping costs and delays | Higher labor | Bigger, upscale homes | Increase in fire damage | Increase in water damage

 

More severe weather

From windstorms to hail events, extensive freezing spells and torrential rains, most of the country is experiencing more frequent and more extreme weather events that lead to more damage and higher overall insurance costs.

  • There were 18 weather/climate disaster events in the U.S. in 2021 with losses exceeding $1 billion in damage1.
  • With an annual average of seven events from 1980-2020, the increase in severe weather caused 39% of all U.S. home insurance claims2.
  • According to a nationwide survey of 2,500 homeowners conducted by the Center for Insurance Policy and Research (CIPR), more than two-thirds of respondents said they were aware of things they could do to protect their property from extreme weather events to reduce their risk, but this awareness does not necessarily translate into action. Only half had made changes.3
  • The CIPR study also found that two-thirds of respondents said their homeowners insurance costs have gone up over the past three years, with “increase in natural disasters such as hurricanes and wildfires” indicated as a key reason believed to be driving the increase. 4

Coverage to consider

Not all home insurance is created equally. Your independent agent can recommend added value coverage that enhances your protection and the restoration process should weather damage your home.

Higher material costs

From record high prices to shortages of materials, the home building industry has seen lengthy delays, increased prices and a large number of postponed projects. These higher prices for construction projects, renovations and repairs lead to higher costs for homeowners.

  • With the price of building materials, such as drywall, shingles, lumber and copper wiring, up an average of 26%, homes have become more expensive to fix and replace. According to a survey completed by the National Association of Home Builders5, this is the largest single year increase in the survey’s history.
  • Ninety three percent of contractors are impacted by the increased price of materials which leads to higher replacement cost when insurance claims are filed.6

How market value is different from replacement value

The market value of a home is different from the replacement cost of the home. Market value is the amount a buyer is willing to pay for a home. Replacement cost refers to the amount it would take to completely rebuild a home at the current price of labor and materials. With rising prices and more severe damage caused by weather and other factors, additional coverage may be needed.

Coverage to consider:

Increased shipping costs and delays

The pandemic has impacted almost every part of the global supply chain causing shipping delays and higher prices. When shipping ports get overwhelmed and backed up, it impacts the time it takes to get materials to homeowners and the cost of delivering the materials. From appliances to plumbing fixtures, it’s taken weeks and months longer to get building supplies, which previously had taken days to get.

  • 94% of Fortune 1000 companies have reported supply chain disruptions from COVID-19.7
  • Globally, RBC Capital Markets reported 77% of ports are experiencing abnormally long times to turnaround traffic.8   
  • In fact, Freightos.com marketplace data shows that in September 2021, China-US ocean shipments took an average of 73 days to arrive at their final destination, 83% longer than in September 20199

Do you have enough coverage?

Now is the time to talk to your independent agents about Additional living expense coverage. Additional living expenses coverage (ALE) is the money you’ll need to live elsewhere if forced from your home due to fire or any disaster covered by your homeowner’s insurance policy.

ALE coverage pays for expenses beyond your “normal” costs at home.

This coverage is available to reimburse you for the extra costs to maintain the lifestyle you had before. For example: hotel bills, restaurant meals, emergency clothing, laundry service, pet boarding, storage, furniture rental for items you’re accustomed to having, and much more.

With postponements and delays, be sure to review your ALE coverage and make sure you have enough so you are supported when you need it.

Higher labor costs

Builders often hire sub-contractors who handle electrical, drywall, plumbing and other areas of construction. With the current labor shortages, higher costs are needed to secure skilled laborers or obtain the needed materials. This in turn has forced home builders to factor in higher costs for construction and remodeling work.

  • Eighty-nine percent of contractors are having a hard time finding craft workers and 88% of firms are experiencing project delays.10
  • Additionally, the U.S. is seeing a drop in the number of Americans becoming tradespeople. The National Electrical Contractors Association reports that 7,000 electricians join the field annually, but 10,000 retire.11 This shortfall results in higher prices and longer wait times for home projects.

Bigger, upscale homes

Many homeowners continue to increase their budget and the size of their projects for a more upscale result with custom cabinetry, granite, hardwood floors, finished basements and more. Higher-end renovations lead to higher replacement costs when damages arise.

  • According to the National Kitchen and Bath Association, 62% of their design firm members reported an increase in the scope and size of their projects prior to 2020.12
  • The home improvement industry has seen a 30% growth in luxury home products, showing that homeowners are willing to spend more to renovate with high end products.13

Higher end renovations may mean higher replacement costs

There are many reasons why homeowners renovate their homes. Whether it’s to improve and increase their home’s value or to update its style and efficiency, home improvements take time, money and patience. While all homeowners need to protect their homes, these types of updates may increase the value of your home and require additional protection.

Coverage to consider:

Increase in fire damage

Fires cause devastation, destruction, casualties and more. Most home fires and fire casualties result from five causes: cooking, heating, electrical distribution and lighting equipment, intentional fire setting, and smoking materials.14 While there are fewer home fires than there were 40 years ago, more damage is caused by fires today.15

  • Newer homes burn nearly 6x faster than older ones due to the use of synthetic materials and open-floor plans, according to Underwriters Laboratories. This results in more total losses from fire and higher rebuild costs.16
  • The average fire loss in 2020 was 1.5 times higher at $24,700 per fire compared to $16,300 per fire in 1980 (adjusted for inflation), according to the National Fire Prevention Association.17

Increase in water damage

Whether it be leaking or burst pipes, plumbing issues, sewage backups, pump overflows, clogged gutters, ice dams or extreme weather conditions, water damage can not only lead to mold, wet carpets and a bad smell – but to health issues as well.

  • About one in 50 insured homes has a property damage claim caused by water damage or freezing each year with the average claim around $10,900.18
  • Water damage and freezing losses have increased by more than 10% from 2017 to 2019.19

Are water backup damage incidents covered by home insurance?

Not all home insurance policies provide coverage for water backup damage. Water backup and sump pump overflow coverage is often an additional option. This coverage provides extra protection against water damage caused by backed up drains or a sump pump failure.

Coverage to consider:

An overview of these trends can be viewed on our Why are insurance costs rising for homeowners infographic. 

Working with an independent agent will help ensure you have the right coverage with The Hanover’s suite of products.

Questions? Contact your independent agent to learn more.

Find an agent

 

Sources

[1] National Centers for Environmental Information [2] Insurance Business Magazine [3] CIPR Consumer Property Insurance Report  [4] CIPR Consumer Property Insurance Report  [5] National Association of Home Builders [6] Associated General Contractors of America [7]Accenture [8] Bloomberg [9]Freightos [10] Associated General Contractors of America [11] Forbes [12] Forbes [13] Forbes [14] National Fire Prevention Association [15] National Fire Prevention Association [16] Associated Press [17] National Fire Prevention Association [18] Insurance Information Institute [19] Insurance Information Institute

Article

Mark your calendar for an annual insurance review

An older couple sits across a desk from a bearded man who is showing them something on a tablet.

Many consumers renew their policy each year without even cracking it open to see if anything has changed. Life throws curveballs and insurance policies need to be in tune with how we live and the everyday changes that happen.

You may not know that renovating your home or adding a new driver may impact your coverage.

Here are some questions you should consider and discuss with your independent agent to make sure you have the right coverage.

 

Home and condo

  • Have you made or are you planning to make any home renovations?
  • Did you add a pool?
  • Have you installed a security system?
  • Have you put in additional smoke/gas alarms?
  • Did you add a water detection device?
  • Have you replaced or upgraded your roof to be impact-resistant or energy-efficient?
  • Have you acquired a trampoline?
  • Do you spend a lot of time on the computer?
  • Are you renting out your condo or home for short- or long-term stays?
  • Have you changed the number of people in your household?

 

 

If you answered “Yes” to any of these questions, we recommend you connect with your independent insurance agent to discuss whether you need adjust your protection options and/or coverage limits: 

Life changes

  • Are you adding any new drivers to your policy?
  • Has your marital status changed?
  • Did you get a new pet?
  • Have you retired?
  • Are you moving or considering a move?
  • Did you purchase a vacation home?

 

 

Any “Yes” and you may need to change or adjust your coverage limits on or learn about:

 

Auto

  • Have you purchased or inherited any vehicles?
  • Has your driving record remained violation free?
  • Have you been in an accident?
  • Are driving more or fewer miles?
  • Are you living in a new neighborhood?

 

Any “Yes” and you may need to change or adjust your coverage limits on or learn about:

 

New purchases

  • Have you bought or sold a motorcycle?
  • Has a new household member obtained their motorcycle license?
  • Have you purchased or sold a recreational vehicle?
  • Have you made any improvements to a recreational vehicle?
  • Have you bought or sold a boat?
  • Have you changed where you store your boat?
  • Did you make any upgrades to your boat?

 

Any “Yes” and you may need to change or adjust your coverage limits on: 

 

Umbrella

  • Do you have people visiting your home frequently?
  • Have you been in a lawsuit?
  • Do you participate on any non-profit boards?
  • Does a house cleaner come to your home on a regular basis?
  • Have you hired someone to plow your driveway or mow your lawn?
  • Do you walk your dog in your neighborhood or local park?
  • Are you carpooling with other families?

 

Any “Yes” and you may need to change or adjust your coverage limits on: 

 

Valuable items 

  • Have you purchased any expensive artwork?
  • Did you start a wine collection?
  • Have you gotten engaged?
  • Have you added any new jewelry to your collection?
  • Did you invest in high end audio or video equipment?
  • Have you inherited any costly items?

 

Any “Yes” and you may need to change or adjust your coverage limits on:

 

Home business

  • Did you open a home business?
  • Have you added any office equipment to your home?
  • Did you hire any employees?
  • Have the days or times clients can visit your home changed?

 

Any “Yes” and you may need to change or adjust your coverage limits on:

 

The Hanover has a suite of protection options to fit your needs as your life changes. Schedule an insurance review with your independent agent today and feel confident that you are covered in all the right places.

Don’t have an independent agent? Find an agent in your area.

Find an agent

Mark your calendar for an annual insurance review

Many consumers renew their policy each year without even cracking it open to see if anything has changed. Life throws curveballs and insurance policies need to be in tune with how we live and the everyday changes that happen.

You may not know that renovating your home or adding a new driver may impact your coverage.

Here are some questions you should consider and discuss with your independent agent to make sure you have the right coverage.

 

Home and condo

  • Have you made or are you planning to make any home renovations?
  • Did you add a pool?
  • Have you installed a security system?
  • Have you put in additional smoke/gas alarms?
  • Did you add a water detection device?
  • Have you replaced or upgraded your roof to be impact-resistant or energy-efficient?
  • Have you acquired a trampoline?
  • Do you spend a lot of time on the computer?
  • Are you renting out your condo or home for short- or long-term stays?
  • Have you changed the number of people in your household?

 

 

If you answered “Yes” to any of these questions, we recommend you connect with your independent insurance agent to discuss whether you need adjust your protection options and/or coverage limits: 

Life changes

  • Are you adding any new drivers to your policy?
  • Has your marital status changed?
  • Did you get a new pet?
  • Have you retired?
  • Are you moving or considering a move?
  • Did you purchase a vacation home?

 

 

Any “Yes” and you may need to change or adjust your coverage limits on or learn about:

 

Auto

  • Have you purchased or inherited any vehicles?
  • Has your driving record remained violation free?
  • Have you been in an accident?
  • Are driving more or fewer miles?
  • Are you living in a new neighborhood?

 

Any “Yes” and you may need to change or adjust your coverage limits on or learn about:

 

New purchases

  • Have you bought or sold a motorcycle?
  • Has a new household member obtained their motorcycle license?
  • Have you purchased or sold a recreational vehicle?
  • Have you made any improvements to a recreational vehicle?
  • Have you bought or sold a boat?
  • Have you changed where you store your boat?
  • Did you make any upgrades to your boat?

 

Any “Yes” and you may need to change or adjust your coverage limits on: 

 

Umbrella

  • Do you have people visiting your home frequently?
  • Have you been in a lawsuit?
  • Do you participate on any non-profit boards?
  • Does a house cleaner come to your home on a regular basis?
  • Have you hired someone to plow your driveway or mow your lawn?
  • Do you walk your dog in your neighborhood or local park?
  • Are you carpooling with other families?

 

Any “Yes” and you may need to change or adjust your coverage limits on: 

 

Valuable items 

  • Have you purchased any expensive artwork?
  • Did you start a wine collection?
  • Have you gotten engaged?
  • Have you added any new jewelry to your collection?
  • Did you invest in high end audio or video equipment?
  • Have you inherited any costly items?

 

Any “Yes” and you may need to change or adjust your coverage limits on:

 

Home business

  • Did you open a home business?
  • Have you added any office equipment to your home?
  • Did you hire any employees?
  • Have the days or times clients can visit your home changed?

 

Any “Yes” and you may need to change or adjust your coverage limits on:

 

The Hanover has a suite of protection options to fit your needs as your life changes. Schedule an insurance review with your independent agent today and feel confident that you are covered in all the right places.

Don’t have an independent agent? Find an agent in your area.

Find an agent

Mark your calendar for an annual insurance review

Many consumers renew their policy each year without even cracking it open to see if anything has changed. Life throws curveballs and insurance policies need to be in tune with how we live and the everyday changes that happen.

You may not know that renovating your home or adding a new driver may impact your coverage.

Here are some questions you should consider and discuss with your independent agent to make sure you have the right coverage.

 

Home and condo

  • Have you made or are you planning to make any home renovations?
  • Did you add a pool?
  • Have you installed a security system?
  • Have you put in additional smoke/gas alarms?
  • Did you add a water detection device?
  • Have you replaced or upgraded your roof to be impact-resistant or energy-efficient?
  • Have you acquired a trampoline?
  • Do you spend a lot of time on the computer?
  • Are you renting out your condo or home for short- or long-term stays?
  • Have you changed the number of people in your household?

 

 

If you answered “Yes” to any of these questions, we recommend you connect with your independent insurance agent to discuss whether you need adjust your protection options and/or coverage limits: 

Life changes

  • Are you adding any new drivers to your policy?
  • Has your marital status changed?
  • Did you get a new pet?
  • Have you retired?
  • Are you moving or considering a move?
  • Did you purchase a vacation home?

 

 

Any “Yes” and you may need to change or adjust your coverage limits on or learn about:

 

Auto

  • Have you purchased or inherited any vehicles?
  • Has your driving record remained violation free?
  • Have you been in an accident?
  • Are driving more or fewer miles?
  • Are you living in a new neighborhood?

 

Any “Yes” and you may need to change or adjust your coverage limits on or learn about:

 

New purchases

  • Have you bought or sold a motorcycle?
  • Has a new household member obtained their motorcycle license?
  • Have you purchased or sold a recreational vehicle?
  • Have you made any improvements to a recreational vehicle?
  • Have you bought or sold a boat?
  • Have you changed where you store your boat?
  • Did you make any upgrades to your boat?

 

Any “Yes” and you may need to change or adjust your coverage limits on: 

 

Umbrella

  • Do you have people visiting your home frequently?
  • Have you been in a lawsuit?
  • Do you participate on any non-profit boards?
  • Does a house cleaner come to your home on a regular basis?
  • Have you hired someone to plow your driveway or mow your lawn?
  • Do you walk your dog in your neighborhood or local park?
  • Are you carpooling with other families?

 

Any “Yes” and you may need to change or adjust your coverage limits on: 

 

Valuable items 

  • Have you purchased any expensive artwork?
  • Did you start a wine collection?
  • Have you gotten engaged?
  • Have you added any new jewelry to your collection?
  • Did you invest in high end audio or video equipment?
  • Have you inherited any costly items?

 

Any “Yes” and you may need to change or adjust your coverage limits on:

 

Home business

  • Did you open a home business?
  • Have you added any office equipment to your home?
  • Did you hire any employees?
  • Have the days or times clients can visit your home changed?

 

Any “Yes” and you may need to change or adjust your coverage limits on:

 

The Hanover has a suite of protection options to fit your needs as your life changes. Schedule an insurance review with your independent agent today and feel confident that you are covered in all the right places.

Don’t have an independent agent? Find an agent in your area.

Find an agent

Mark your calendar for an annual insurance review

Many consumers renew their policy each year without even cracking it open to see if anything has changed. Life throws curveballs and insurance policies need to be in tune with how we live and the everyday changes that happen.

You may not know that renovating your home or adding a new driver may impact your coverage.

Here are some questions you should consider and discuss with your independent agent to make sure you have the right coverage.

 

Home and condo

  • Have you made or are you planning to make any home renovations?
  • Did you add a pool?
  • Have you installed a security system?
  • Have you put in additional smoke/gas alarms?
  • Did you add a water detection device?
  • Have you replaced or upgraded your roof to be impact-resistant or energy-efficient?
  • Have you acquired a trampoline?
  • Do you spend a lot of time on the computer?
  • Are you renting out your condo or home for short- or long-term stays?
  • Have you changed the number of people in your household?

 

 

If you answered “Yes” to any of these questions, we recommend you connect with your independent insurance agent to discuss whether you need adjust your protection options and/or coverage limits: 

Life changes

  • Are you adding any new drivers to your policy?
  • Has your marital status changed?
  • Did you get a new pet?
  • Have you retired?
  • Are you moving or considering a move?
  • Did you purchase a vacation home?

 

 

Any “Yes” and you may need to change or adjust your coverage limits on or learn about:

 

Auto

  • Have you purchased or inherited any vehicles?
  • Has your driving record remained violation free?
  • Have you been in an accident?
  • Are driving more or fewer miles?
  • Are you living in a new neighborhood?

 

Any “Yes” and you may need to change or adjust your coverage limits on or learn about:

 

New purchases

  • Have you bought or sold a motorcycle?
  • Has a new household member obtained their motorcycle license?
  • Have you purchased or sold a recreational vehicle?
  • Have you made any improvements to a recreational vehicle?
  • Have you bought or sold a boat?
  • Have you changed where you store your boat?
  • Did you make any upgrades to your boat?

 

Any “Yes” and you may need to change or adjust your coverage limits on: 

 

Umbrella

  • Do you have people visiting your home frequently?
  • Have you been in a lawsuit?
  • Do you participate on any non-profit boards?
  • Does a house cleaner come to your home on a regular basis?
  • Have you hired someone to plow your driveway or mow your lawn?
  • Do you walk your dog in your neighborhood or local park?
  • Are you carpooling with other families?

 

Any “Yes” and you may need to change or adjust your coverage limits on: 

 

Valuable items 

  • Have you purchased any expensive artwork?
  • Did you start a wine collection?
  • Have you gotten engaged?
  • Have you added any new jewelry to your collection?
  • Did you invest in high end audio or video equipment?
  • Have you inherited any costly items?

 

Any “Yes” and you may need to change or adjust your coverage limits on:

 

Home business

  • Did you open a home business?
  • Have you added any office equipment to your home?
  • Did you hire any employees?
  • Have the days or times clients can visit your home changed?

 

Any “Yes” and you may need to change or adjust your coverage limits on:

 

The Hanover has a suite of protection options to fit your needs as your life changes. Schedule an insurance review with your independent agent today and feel confident that you are covered in all the right places.

Don’t have an independent agent? Find an agent in your area.

Find an agent

Infographic

Why are insurance costs rising for homeowners?

Various factors are impacting the cost to rebuild homes, leading to higher prices and the need for higher coverage across the industry. Talk to your independent agent to make sure you have the right amount of coverage and enough of it.

Sources:

NOAA

Insurance Business America

Insurance Information Institute

NAHB

AGC

New York Times

Accenture

Underwriters Laboratory

Why are insurance costs rising for homeowners?

Various factors are impacting the cost to rebuild homes, leading to higher prices and the need for higher coverage across the industry. Talk to your independent agent to make sure you have the right amount of coverage and enough of it.

Sources:

NOAA

Insurance Business America

Insurance Information Institute

NAHB

AGC

New York Times

Accenture

Underwriters Laboratory

Why are insurance costs rising for homeowners?

Overview of seven national trends that are impacting insurance costs and causing them to rise.

Various factors are impacting the cost to rebuild homes, leading to higher prices and the need for higher coverage across the industry. Talk to your independent agent to make sure you have the right amount of coverage and enough of it.

Sources:

NOAA

Insurance Business America

Insurance Information Institute

NAHB

AGC

New York Times

Accenture

Underwriters Laboratory

Infographic transcript

Why are insurance costs rising for homeowners?

Recent trends are impacting how much protection you’ll need and the price you’ll pay for it.

Bigger, upscale homes: Home interiors have become more upscale with custom cabinetry, hardwood floors, finished basements and more, leading to higher replacement costs when damages arise.

More severe weather: There have been 18 weather/climate disaster events in the U.S. in 2021 with losses exceeding $1 billion in damage. The increase in severe weather caused 39% of all U.S. home insurance claims.

Higher material costs: With the cost of building materials up an average of 26%, homes have become more expensive to fix and replace.

Increase in water damage: Water damage and freezing losses have increased by more than 10% from 2017 to 2019.

More fire damage: Newer homes burn more nearly 6x faster than older ones due to the use of synthetic materials and open-floor plans, resulting in more total losses from fire and higher rebuild costs.

Increased shipping costs and delays: The pandemic has impacted almost every part of the global supply chain causing shipping delays and higher prices. 95% of Fortune 1000 companies have reported supply chain disruptions from COVID-19.

Higher labor costs: Nearly 90% of contractors are having a hard time finding craft workers and 88% of firms are experiencing project delays. Higher labor costs drive up the price of materials leading to a rise in home insurance

We can help you avoid your home being underinsured.

Contact your agent today to make sure you have the right coverage… and enough of it.

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. ©2021 The Hanover Insurance Group. All Rights Reserved. Sources: NOAA, Insurance Business America, Insurance Information Institute, NAHB, AGC, New York Times, Accenture, Underwriters Laboratory

 

Why are insurance costs rising for homeowners?

Overview of seven national trends that are impacting insurance costs and causing them to rise.

Various factors are impacting the cost to rebuild homes, leading to higher prices and the need for higher coverage across the industry. Talk to your independent agent to make sure you have the right amount of coverage and enough of it.

Sources:

NOAA

Insurance Business America

Insurance Information Institute

NAHB

AGC

New York Times

Accenture

Underwriters Laboratory

Infographic

Why have all of your insurance with one company?

 

Whether it’s having one number to call in the event of a claim, just one bill to pay on one day of the month, or just one app to manage it all, you can experience savings, convenience and true peace-of-mind by having all of your personal insurance coverage with one company—The Hanover.

Ask your independent insurance agent today about The Hanover, or let us help you find a local agent.

 

  Find an independent insurance agent near you

Why have all of your insurance with one company?

 

Whether it’s having one number to call in the event of a claim, just one bill to pay on one day of the month, or just one app to manage it all, you can experience savings, convenience and true peace-of-mind by having all of your personal insurance coverage with one company—The Hanover.

Ask your independent insurance agent today about The Hanover, or let us help you find a local agent.

 

  Find an independent insurance agent near you

Why have all of your insurance with one company?

Insurance works better when it's together - customer infographic

 

Whether it’s having one number to call in the event of a claim, just one bill to pay on one day of the month, or just one app to manage it all, you can experience savings, convenience and true peace-of-mind by having all of your personal insurance coverage with one company—The Hanover.

Ask your independent insurance agent today about The Hanover, or let us help you find a local agent.

 

  Find an independent insurance agent near you

 

Infographic transcript

Insurance works better when it’s together – with The Hanover 

Watercraft – a boatload of coverage

  • Towing and haul out
  • Fishing equipment 
  • Pet injury protection

Home – inside and out

  • Service and utility lines
  • Water backup
  • Equipment breakdown 
  • Rental properties, condos and more

Motorcycle – ready to ride

  • Protective gear
  • Custom chrome 
  • Passenger liability

Collectibles, wine, jewelry and art

Home-based businesses

Umbrella – cover more

  • Worldwide protection 
  • Un/underinsured motorist protection
  • Limits from $1M - $10M
  • Includes legal costs

Personal cyber protection

Auto coverage – loaded with options

  • New/newer car replacement 
  • Second chance accident forgiveness 
  • Safety and savings for families with teen drivers
  • Agreed value, and more

Recreational vehicles

Why have all of your insurance with one company?

Insurance works better when it's together - customer infographic

 

Whether it’s having one number to call in the event of a claim, just one bill to pay on one day of the month, or just one app to manage it all, you can experience savings, convenience and true peace-of-mind by having all of your personal insurance coverage with one company—The Hanover.

Ask your independent insurance agent today about The Hanover, or let us help you find a local agent.

 

  Find an independent insurance agent near you

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