Your home’s appliances and equipment make living that much easier. In some cases, they’re “smart” or touchscreen – and sometimes use top-of-the-line technology.

Sometimes, though, things break unexpectedly. When this happens, you may need to pay a lot out-of-pocket to sustain your lifestyle – especially if they are smart or technically complicated.

The cost of convenience

Appliances break down - even newer, state-of-the-art equipment. According to a Consumer Reports survey of thousands of appliances, they found the following appliances had problem rates within the first five years:

• Refrigerators: 40%
• Dishwashers: 30%
• Ranges: 25%
• Washers: 30%
• OTR microwaves: 25%
• Dryers: 20%

Repairing some of the more common household appliances can cost hundreds of dollars – and that’s only if they can be salvaged.

When a piece of home equipment needs to be replaced, it can be an inconvenience and a burden on a home budget to both replace the equipment, not to mention additional costs for things like the loss of perishable goods to spoilage if your refrigerator stops working. Your replacement costs may include:

Equipment breakdown coverage

Talk to your independent insurance agent about how equipment breakdown coverage can help you from paying plenty of money out-of-pocket in the event your appliance of piece of equipment needs to be fixed or replaced.

A product's warranty may help in certain situations, especially with a newer piece of home equipment when it comes to normal wear and tear. Many warranties, however, only apply based on how they break down. Equipment breakdown coverage can add extra peace of mind for appliances and other home equipment when there is mechanical or electrical failures that could happen with a power surge when your home loses power or if your home is struck by lightning.

As part of a customizable home policy, The Hanover has an equipment breakdown endorsement that can cover you up to $50,000 with a deductible of only $500. For Hanover Prestige customers, that coverage extends up to $100,000 in protection.

An agent can help you understand your options, including any expediting expenses you’d be entitled to as a policyholder.

Contact an agent

Sources

Home Advisor

Bobvila.com

Fixr.com

Kitchens.com

Moving.com

LC 2021-485

Having a nanny at home can be an incredible asset to help care for your kids when you are away.

Making sure you have the nanny or au pair that is right for your family is essential for peace of mind for everyone’s safety.

Here are some tips to help you sift through the nanny candidates:

Write up the job

When you first realize your family will need childcare support, you may be tempted to sound the alarm to anyone and everyone right away. Before you start asking for help, write up a job description for the type of help you are looking for in a nanny or au pair.

Make sure to include all of your expectations in the details. Ask yourself…

• Are you looking for someone to also clean/tidy up the house?
• What is your pay rate?
• Do the hours fluctuate from day to day or steady, Monday through Friday?

Putting ink to paper can help you better understand what – and who – you want from this venture.

Talk to your agent

Your job description will be unique for your personal lifestyle. As you consider exactly what your nanny or au pair will do, talk to your independent agent to see whether or not adding or increasing certain coverage options is right for you. Consider asking your agent:

• Is umbrella coverage against potential legal issues practical for me?
• If the person I hire uses the family car, do I need to add him/her to my existing auto coverage?  
• If I have valuables in the house not currently on valuable item coverage schedule, is bringing a new person into my house the time to do so?

Conduct a professional interview

Nannying is not babysitting for the night – it’s a profession, so treat it like one.

Make sure to conduct the interview face-to-face. Lay out your expectations to all candidates. If this is your first time hiring a nanny, review an interviewer checklist such as this to ensure you cover various topics. Get references and ask questions that span many different topics, such as previous experience, their caregiving style and if there are any special considerations (religious holidays, allergies, etc.) you or the nanny want to talk about ahead of time.

Also, check their references to help ensure you have done a thorough background check.

Seal the hiring in ink

If you have found the ideal nanny for you, and vetted their references, don’t settle for a handshake agreement.

Help your family – and the nanny – by spelling out all aspects of the job in a formal work agreement that both parties sign. Make sure to include important elements, such as:

• Pay amount and schedule
• Hours
• Days off
• Benefits (if applicable)
• If the hired party is ever allowed to have guests over
• Effective start and end date

See this list of things to consider in a contract.

Stress safety

Once you have hired your nanny, set them up for success with an initial run through of important aspects of the job.

Give the nanny a tour of your home making sure to point out how to use safety devices in your house (i.e. smoke detectors, locks, alarms). Show the nanny where certain devices are in the event of an emergency, such as flashlights, first aid kits and fire extinguishers – and write out an emergency action plan so both of you understand what steps should be taken. Review any fire escape plans together.

If your home has valuables or other items you wish to remain out of your nanny or au pair's hands, be sure to lock them up safely every day. Consider a home safe for an extra layer of protection.

If your child takes medication, write out a clear action plan and review it regularly with your nanny to ensure correct times, doses, etc. If your child has allergies, explain what foods are acceptable to make for them – and if any foods should not be brought into the house.

Sources

Care.com

Parenting.com

Care.com

LC 2021-488

Cyberbullying is a growing problem. As an insurance agent, you are uniquely positioned to introduce parents to valuable protection they may not even realize is available. In fact, almost half (49%) don’t.

And remember: The Hanover’s cyber coverage for homeowners – which includes cyberbullying coverage – is an important part of our suite of products designed to help you write the total account.

Finding that perfect diamond necklace, rare coin to complete your collection or decadent piece of art is possible from the comforts of your slippers. There are plenty of reputable online avenues to shop for that valuable item that helps reflect your tastes and lifestyle.

With the online shopping experience, however, also comes additional issues to consider when you cannot be in-person to vouch for the item yourself.

When making important purchasing decisions online about your next valuable item, consider these five tips.

Do your research… and then a little more

If you plan to spend premium dollars on your desired item of great value, make sure you put that much extra research into understanding its value.

Some valuables like coins have acclaimed publications that can help give you advice on how much a particular coin is currently worth. Read online reviews about the seller.

For the piece you are interested in, be sure to read up on every detail of its condition. Consider having the seller send you any notations about its condition in writing.

Look for appraisals/certificates

For many types of valuables, an official appraisal can help you narrow your focus on the current value of that item(s).

This is especially important when it comes to jewelry. Make sure the appraisal specifically lists the item’s details such as cut, clarity, color and carat weight for gems.

An appraisal or certificate can also help determine previous owners to document the item’s history for more accurate record-keeping.

Understand the fine print

Before adding any valuables to your online cart, make sure to read the fine print on the transaction. Find out how the valuable is being shipped and if you need to take extra cost into consideration to ensure its safe travels to your doorstep.

Read to see the seller’s refund and exchange policies.

Is there a warranty being offered? If so, what does it cover and for how long? Is the method of payment being done securely?

Ask all your questions

Just because you are not face-to-face with the seller does not mean you can’t ask all of those questions on your mind.

If you are buying directly from an artist, make contact to have all your questions answered. Don’t be shy about asking until you are satisfied with all of the feedback. These questions can help you determine if doing business with this seller makes the most sense.

Get experienced insurance know-how

Having your valuables – purchased online or in-person – covered with high-value insurance can help provide you peace of mind in the event they are lost or stolen.

Talk to your independent insurance agent to see how The Hanover’s Prestige coverage can help protect your valuables up to $50,000 with the valuable items plus endorsement.

Sources

American Numismatic Association

MoneyTalksNews

House Beautiful

OMI Jewelry

LC 2021-462

By Daniel Halsey, President, Hanover Personal Lines
This article was originally published on Rough Notes.

There is an emerging demographic of high-net-worth individuals – young adults. Millennials, ages 25 to 40 years old, are the most educated generation in history, have higher earnings than other generations, and are set to inherit more than any prior generation, according to a May 2020 report by the Brookings Institute.

With built-up savings and a post-pandemic zest for making the most out of life, younger Americans are aggressively pursuing $1M+ homes, looking for more land, a place to call home, and even vacation homes closer to their primary residences.

As they buy their first homes, these individuals acknowledge they could use help when it comes to purchasing homeowners insurance protection. The Hanover recently conducted a survey with OnePoll that found 61% of millennials agree it would be helpful to have an experienced agent review their personal insurance to make sure they have the right coverages in place. Unfortunately, the survey also found that they are less likely to have established, trusting relationships with an independent agent. This is a large demographic that has been underserved and under-protected. With high asset levels, this group needs consultation with agents the most. These findings point to a growing opportunity for agents to connect with this demographic and help these new homeowners protect their investments, while growing their own businesses.  

With the increasing need for personalized insurance offerings, particularly for higher-end homes, here are some ways independent agents can protect higher-value homes and autos for younger generations by attracting and retaining this demographic as customers.

For agents looking to win the next generation of financially sound customers, it’s more important than ever to align with carriers who understand this market. The Hanover’s recent OnePoll survey found that millennials have an array of protection needs including:

Look for carriers that rise to the higher level of service expectations and will partner with independent agents to solve for the more complex insurance needs of high-net-worth individuals. As these younger generations enter one of the more expensive times of their lives with new higher-value homes, expanding families, and even paying off student loans, agents should offer a full risk assessment.

With the trend of younger Americans purchasing expensive homes set to continue, there is an untapped opportunity for independent agents to capture this demographic and offer coverage for their home, auto, and valuables. Now is the time to target younger customers as they are making big purchases and create valuable long-term customers.

 

About the author

Daniel Halsey is president of personal lines at The Hanover Insurance Group Inc.

By Daniel Halsey, President, Hanover Personal Lines, August 25, 2021
This article was originally published on propertycasualty360.com.

As a consumer’s life changes, there are many obvious triggers for insurance evaluations – like buying a home or new vehicle. It’s the more unknown risks that arise as new technologies emerge, or as children grow up, that create opportunities for independent agents to have regular conversations with customers on evolving insurance needs. Consumers face many changing risks that make it critical for them to have a trusted adviser who examines these new vulnerabilities and offers protection solutions. Similarly, growth-orientated independent agents need carrier partners who monitor the changing risk landscape and introduce protection options in response.  

Cyberbullying is one of those lesser-known emerging risks that account-focused agents can tap into to open the door to a full risk assessment and identify coverage gaps. The Hanover Insurance Group commissioned The Harris Poll to conduct an online survey, which found that 43% of parents with children under age 18 say their children have experienced cyberbullying in the past year. 

With school starting up again, student bullies are back in class and more connected than ever. Last year, schools were forced to combine virtual and in-person learning. Cyberbullying has increased at a troubling rate over the past 18 months and continues to be a significant risk. According to a report from L1ght, hate speech among children and adolescents has increased by 70% since March 2020. Some insurance carriers have recognized this growing trend and created protection for families facing the risks of cyberbullying, making this back-to-school season a good opportunity for agents to talk to their customers about the unique insurance offerings available today.

With the guidance of an independent insurance agent, consumers can add a home cyber endorsement to their existing homeowner’s insurance policies to provide added protection. This endorsement provides coverage for a variety of cyber-related risks, including costs directly resulting from a cyberbullying incident.

However, not all endorsements are created equally. A home cyber endorsement includes a variety of valuable coverages, such as:

• Private tutoring expenses – Students may need to stay home from school for mental health reasons, therapy appointments, or for longer periods of time in more severe cases. To keep children from falling behind, families often hire in-home tutors. This is a costly expense that could be covered by a home cyber endorsement.
• Alternative schooling – While the bullying might occur virtually, a student may seek alternate schooling. Enrolling in a new school can be expensive, especially if the student attends a private institution or requires extra transportation costs. For example, a covered incident could include a situation in which a child traumatized by cyberbullying is advised by a mental health provider that changing schools is recommended for optimal recovery.  A cyber policy could cover some unreimbursed enrollment expenses for relocation costs to switch to the alternate school.
• Counseling services – Bullied youth (and families) often benefit from ongoing counseling. GoodRx reports that an average hour-long therapy appointment can cost up to $250, and some comprehensive endorsements may cover these costs as a result of the bullying incident.
• Related legal expenses – Cyberbullying can result in families retaining legal services to remove online content or simply to seek legal advice. Innovative insurance carriers provide policyholders with coverage for some legal expenses, if needed.
• Social monitoring software or apps – Look for a carrier that covers the purchase of mobile applications, social monitoring software, and web-based products to prevent further bullying. For example, if parents believe their child was the target of consistent online bullying, they could purchase social monitoring software to prevent further cyberbullying of their child. These expenses could be covered by a cyber policy.

Consumer education is critical and allows agents to be a “total risk” resource for their customers. The same Hanover/Harris Poll survey revealed nearly half of parents with kids under 18 (49%) have never heard of, or are not familiar with, cyberbullying insurance, yet two-thirds of those parents (66%) would be likely to purchase cyberbullying insurance to cover all children in their household for a price of $50 per year.

Independent agents who understand the severity of cyberbullying and work with carriers that provide unique protection for these types of risks, as well as other emerging trends, can build even stronger client relationships. Whether pointing to the growing need for water backup protection, how keeping inventory for a home-based business may require special coverage, or bringing home a new dog may impact insurance needs, discussions about lesser-known risks and evolving needs enable account-focused agents to provide end to end protection for customers. These regular conversations on new risks individuals face as their lives change lead to total account opportunities for independent agents.

 

About the author

Daniel Halsey is president of personal lines at The Hanover Insurance Group Inc.

How do you insure something that's irreplaceable? There's an art to it, and your local independent insurance agent can help frame a coverage plan that's right for you. But before you have that conversation, here are some steps you can take now to help get your art – whether it's one piece or a gallery – prepared for protection.

 

1. Establish proof of ownership 

Questions as to who owns a work of fine art can be incredibly messy, as have questions regarding its authenticity, and these disputes often result in protracted legal battles. So establishing rightful ownership of a piece – sometimes referred to as "provenance" – is critical to not just keeping it protected, but keeping it yours.  

The best place to start is the artist, if they are still alive, to document ownership and obtain a statement of authenticity for the work(s) you own. If this is not an option, an expert on the artist may be the place to turn. And if you made your purchase from a gallery, make sure you've saved all documentation from the transaction.

2. Maintain a digital archive

Depending on the size of your collection, this can seem daunting. Fortunately, there is plenty in the way of software and services to help you create and maintain an archive, and access it as well. When you do, make sure to take high quality photos of the pieces, and scan or photo receipts and proof of ownership as well. 

3. Talk to your independent insurance agent

The steps you've taken to document your collection will prove valuable as your agent works to determine which coverage option works best for your art. Make sure to ask about The Hanover's "scheduled item" coverage, which allows you to cover pieces individually, up to $25K in value, or valuable items coverage, which can provide blanket protection for a collection up to $100K.

4. Appraise your collection regularly

To get full value in the event a covered work is stolen or destroyed, it is critical to get it appraised regularly. Experts recommend every 3-5 years, but note that artwork often increases (sometimes sharply) in value upon the death of the artist. So, that should be considered a trigger to a reappraisal as well. And if your work has been found to have increased in value, make sure your insurance is updated accordingly. 

Finally, make sure you inform your insurance agent each time you loan or relocate your art. It could help speed the claims process in the event any work is stolen or destroyed.

Find an agent near you

Theft. Misplaced. Lost while swimming.

There are plenty of reasons that piece of jewelry could go missing. Given the potential price tag, that should give you extra incentive to take necessary steps to insure your valuables.

And knowing the current value of your jewelry is as an important part of this process.

When to have an appraisal

Appraising your jewelry is recommended every few years for pieces you own, as the value of gems and precious metals is always changing.

You should also consider having any valuable gems you purchase or inherit appraised as soon as you can to make sure you have an accurate replacement value in the event it is lost or stolen.

Finding the right appraiser

A jewelry appraisal can be conducted by a professional who carries a number of different titles. Jewelry appraisers do not have set laws and regulations to become an appraiser.

Make sure you screen candidates to see if they are certified or titled with a national appraisal organization. Talk to an independent insurance agent for a recommendation. In addition, seek those who are graduate gemologists of the Gemological Institute of America (GIA).

Graduates of GIA will be able to identify and grade gem materials professionally. Ask if potential appraisers have any continuing education certificates or credentials as well to see if they are well up to speed on the latest industry knowledge.

Additional knowledge about the manufacturing techniques and their impact on jewelry is a plus.

Understand what appraisal to ask for

There are different types of appraisals. Before you agree to an appraisal, make sure you talk to an independent insurance agent and your appraiser about the type you are looking for:

• Fair market value: the jewelry’s current value based on its current condition reflected as a selling price
• Replacement value: reflects the realistic dollar amount replacing your lost or stolen jewelry
• Liquidation value: typically a lower value estimate based on conditions that are forcing the selling of a piece of jewelry (i.e. divorce settlement, estate liquidations)

Hanover Prestige

Once you have your jewelry appraised, you’ll better understand the coverage you need. It will also make the claims process quicker and easier. Make sure to send the appraisal to your agent as a record of the most up-to-date information.

With Hanover Prestige coverage, you can expect white-glove-level service and special pricing to help cover your valuable jewelry. Valuable Items Plus coverage through Prestige includes up to $250,000 in coverage options (varies by state).

Talk to an independent insurance agent to help you understand how Hanover Prestige Home and Hanover Prestige Auto could be right for you.

Sources

Jewelers of America

Jewelers of America

Investopedia

LC 2021-432

How pipes freeze and burst, and what to do to prevent damage

When water freezes, it expands. That’s why a can of soda explodes if it’s put into a freezer to chill quickly and forgotten. When water freezes in a pipe, it expands the same way. If it expands enough, the pipe bursts, water escapes, and serious damage results.
 

Why pipes burst

Surprisingly, ice forming in a pipe does not typically cause a break where the ice blockage occurs. It’s not the radial expansion of ice against the wall of the pipe that causes the break. Rather, following a complete ice blockage in a pipe, continued freezing and expansion inside the pipe causes

water pressure to increase downstream between the ice blockage and a closed valve or closed faucet at the end. It’s this increase in water pressure that leads to pipe failure. Usually, the pipe bursts where little or no ice has formed. Upstream from the ice blockage, the water can always retreat back towards its source, so there is no pressure buildup to cause a break.

Note: Water must freeze for ice blockages to occur, so pipes that are adequately protected along their entire length—by placement within the building’s insulation, by insulation on the pipe itself, or by heating— are safe.
 

Tips to prepare your business

MITIGATING YOUR PROPERTY

1. Seal exterior: Seal all cracks, holes, windows, doors, and other openings on exterior walls with caulk or insulation to prevent cold air from penetrating wall cavity.
    
2. Seal interior: Insulate and seal attic penetrations such as partition walls, vents, plumbing stacks, and electric and mechanical chases.
    
3. Relieve pipe pressure: For small commercial properties, let all faucets drip during extreme cold weather to prevent freezing of the water inside the pipe, and if freezing does occur, to relieve pressure buildup in the pipes between the ice blockage and the faucet.
    
4. Keep the building warm: Install a monitoring system that provides notifications if the building’s temperature dips below a pre-determined number.
    
5. Insulate vulnerable pipes: Pipes in attics and crawl spaces should be protected with insulation or heat. Pipe insulation is available in fiberglass or foam sleeves. Home centers and hardware stores have sleeves providing ⅛ to ⅝ inches of insulation; specialty dealers have products that provide up to 2 inches of insulation.
    
6. Heating cables and tapes are effective in freeze protection. Select a heating cable with the UL label and a built-in thermostat that turns the heat on when needed (without a thermostat, the cable must be plugged in each time and might be forgotten). Follow the manufacturer’s instructions closely.
    
7. Exterior pipes should be drained or enclosed in 2-inch fiberglass insulation sleeves.
    
8. Pipes leading to the exterior should be shut off and drained at the start of the winter. If these exterior faucets do not have a shut-off valve inside the building, have one installed by a plumber.
    
9. Install early detection system: Install an automatic excess flow valve on the main incoming domestic water line to monitor and provide early detection of a broken pipe or valve. Excessive flow valves automatically shut and stop the flow of water when preset normal flow settings are exceeded.
    
10. Use wireless sensors to monitor leaks near water sources such as water tanks, commercial appliances, and the like.
     
11. Install UL-approved gas or electric unit heaters in unheated sprinkler control valve/fire pump rooms.

When temporarily closing your business during the winter, be careful how much you lower the heat. A lower temperature may save on the heating bill, but there could be a disaster if a cold spell strikes and pipes that normally would be safe, freeze and burst.
 

MITIGATING VACANT PROPERTIES

1. Adjust the temperature to a minimum of 55°F and monitor to ensure the internal temperature does not go below 40°F. Insulate pipes that enter through exterior walls to help prevent pipes from freezing and possibly rupturing.
    
2. Shut off the domestic water and drain the water lines. The domestic water lines are separate from the fire protection lines. This will prevent the potential for water leaks that could result in extensive interior water damage. In cold climates, this will prevent the pipes from freezing and possibly rupturing if building heat is lost.
    
3. If the domestic water lines are not shut off, inspect for leaks, and turn off the water supply line to individual fixtures such as sinks and toilets. Consider installing a monitored electronic leak detection system for the main domestic water line.
    
4. Monitor fire protection sprinkler systems. Monitor sprinkler systems using a central station to provide early detection of a pipe failure and heat unheated sprinkler control rooms.

Material from the Insurance Institute for Business and Home Safety, 2021.

The recommendation(s), advice and contents of this material are provided for informational purposes only and do not purport to address every possible legal obligation, hazard, code violation, loss potential or exception to good practice. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations or advice contained herein will make any premises, property or operation safe or in compliance with any law or regulation. Under no circumstances should this material or your acceptance of any recommendations or advice contained herein be construed as establishing the existence or availability of any insurance coverage with The Hanover. 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 2021-359

In the wrong place at the wrong time, wildfires can wreak havoc, threatening lives, businesses, homes, communities, and natural and cultural resources. To compound the problem, the wildland fire environment has profoundly changed over the last few decades. Longer fire seasons, bigger fires, and more extreme fires have resulted in more acres ―and more property ― being burned on average each year. Now more than ever, it is important to think about ways to protect your business and property.

There are several ways to reduce the potential for damage to your business and property from wildfire, such as:

• Creating a defensible space zone
• Properly protecting building openings
• Having a business continuity and emergency preparedness plan in place

These preventive actions and controls should be taken well ahead of the fire season, and will provide the best opportunity to prepare and reduce wildfire impact to your business and property.

If at some point your business is potentially threatened by an active wildfire, we also have a checklist to help prepare prior to evacuation.

The most important item to remember is to stay safe. Buildings and property are replaceable; you and your employees are not. Always evacuate if you feel it’s unsafe to stay. Listen to local officials and evacuation orders, but DO NOT wait to receive an emergency notification if you feel threatened from a fire.

To help you prepare for, withstand and recover from a wildfire event, Hanover has assembled information from FEMA and the Insurance Institute for Business and Home Safety on all aspects of wildfire preparation.

Steps to protect your business from wildfire

Last minute business wildfire preparation

Fire retardant gel―can it really help?

FEMA’s Prepare your organization for a wildfire playbook

FEMA’s How to prepare for a wildfire

Fire-resistant landscaping for your business from IBHS

Visit our Hanover Risk Solutions Property page to learn more about protecting your business and our Business continuity page to help prepare if the worst happens.

For more information on preventive actions to take, visit the organizations below:

Institute for Business and Home Safety (IBHS) ― Wildfire Ready (https://disastersafety.org/wildfire/)

IBHS Open for Business ― Business Continuity Planning Toolkit (https://disastersafety.org/business-protection/ofb-ez/)

IBHS EZ-Prep ― Severe Weather Emergency Response and Planning Guide (https://disastersafety.org/business-protection/ez-prep/)

Ready.gov Wildfire Resources (https://www.ready.gov/wildfires)

Material in this advisory derived from the USDA and the Insurance Institute for Business and Home Safety (IBHS).

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 2021-362