Can you depend on crowdfunding for funeral costs?

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It’s an all-too-common occurrence: A family loses a loved one unexpectedly and is forced to appeal for help to cover expenses. Many of us have seen the memorials on social media, the crowdfunding websites or the donation bins at a local store for a family dealing with an unexpected loss. In many cases, the family must reveal personal details – forfeiting privacy – just to get the help they need.

No one wants to picture their loved ones in such a situation, so many donate money out of sympathy.

A better option is life insurance protection to help survivors avoid the financial struggle that comes with an unexpected death. And the cost may be less than you think.

When LIMRA, leading insurance, and financial services trade organization, asked survey respondents to estimate the cost of a $250,000 term policy for a healthy 30-year-old, more than half guessed $500 per year or more. The average cost of a policy is closer to $160 per year.

A 2015 study by the Funeral and Memorial Information Council found that 17% of adults ages 20-39 used internet solicitations to fund funeral expenses, and these numbers are growing. In fact, one of the largest crowdfunding websites said that as of 2017, 13% of their campaigns were memorial funds. And on average, those funds raised $3,000 per campaign. Other crowdfunding websites reported lower averages.

So why do so many people turn to crowdfunding?

The main reason is insufficient planning. Most young people don’t even consider the likelihood that death can occur or are “too busy” to plan for the unforeseen. It also could have been lack of information or incorrect information. The LIMRA survey also found that 61% of millennials don’t purchase life insurance because they have other financial priorities. They neglect to consider the possibility they may leave loved ones with the financial burden of a funeral and the need to turn to crowdfunding.

Life insurance can eliminate the need to rely on the generosity of others.

There is no “one size fits all” solution for life insurance. Reach out to your local, independent insurance agent to discuss your specific needs and situation.

For a private life insurance consultation or to receive a free quote visit theayres-group.com.

Alcohol-selling insureds face a number of liabilities under dram shop laws

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As the brewery and winery space continues to innovate, new risks and exposures will enter the market.

The microbrewery market is built on innovation — innovation in flavors, business models and even beer names. Yet this modern, clever and adaptable industry is beholden to some comparatively old rules, regulations and laws. So-called dram shop laws determine to what degree a bar or other seller of alcohol is liable for injury caused to or by their intoxicated patrons. These laws vary state-by-state, which means businesses in different states assume different levels of liability when they serve wine, beer, and liquor. No matter the state, there are a few things insurance professionals should know about these laws and regulations to help limit insureds’ liability.

According to FindLaw, 43 states in the U.S. allow businesses to be held liable in cases in which they serve alcohol to individuals that end up causing injuries or death from intoxication. The most common of these laws prohibit establishments from serving minors or intoxicated customers. They also tend to prohibit serving outside of legal hours and outside the bounds set by their liquor licenses. There are other notable differences among dram shop laws. For example, Illinois and Minnesota have caps on settlements.

Where’s the exposure?

It is important to know the different exposures that can lead to lawsuits under dram shop laws. Consider the growing popularity of “wine trails.” Groups of people hop from winery to winery in one area — following a local “wine trail.” These become all-day drinking events, which carry all the usual risks associated with large groups of intoxicated people: slips and falls, DUIs, etc. Plus, participants have started adding more and more distilleries and wineries to their itineraries — adding higher quantities of and higher–octane beverages to the mix.

It’s key for these business owners to know that if someone was injured at the hands of a drunk wine trail trekker; each winery that person visited could get named in a suit brought against him or her by a third party. Additionally, while tasting rooms tend to sell at higher margins because of direct to consumer sale; owners need to be aware that this increased consumption on premises often leads to more intoxicated consumers. Owners and employees need to take measures to manage risk in advance.

This is just one example of how a winery, brewery or another establishment can be implicated in a lawsuit. However, it demonstrates some risk factors: large parties; drinking in multiple places; drinking too much; drinking without much food.

Prior and current cases impact future cases, particularly in a local area. In other words, finding one bar liable means others in the area may soon be implicated. If another local bar has been found liable in this type of case, local scrutiny is bound to increase, meaning that increased attention to risk management is crucial.

Loss control for “dram shops”

One line of thinking may ask, “Why would tasting rooms and microbreweries be interested in taking on this risk? There will always be a patron that inevitably drinks too much.” Though this may be true, leadership can take steps to ensure employees are properly trained and that the business has the right policies and procedures in place to limit liability.

  1. Identification checks: A fastidious and thorough ID check is standard practice for many taprooms, bars and wineries. This policy should be written and clear, as should the policies regarding false identification.
  2. Training: Training for servers should also be required for any establishment that serves alcohol. A respected alcohol service training program like TiPS can go a long way toward minimizing overserving and injury. 
  3. Incident log: Bar managers should maintain a log of alcohol-related incidents that occur at their bar. For example, if a customer is visibly intoxicated and a bartender refuses to serve them and helps them return home, this should be noted. A log can be used as proof that bars are employing best practices and have taken steps to care for the customer, whether it’s offering them food and water or calling for medical help.
  4. Employee records: Maintain detailed records of employees, their training and their shifts. This can help clarify who may have made questionable sales or prove that a server acted in good faith, within knowledge gained through training.
  5. Video surveillance: Video provides a way to observe patron and staff behavior and prove what occurred, when necessary. It can help demonstrate when a server “cut off” a customer, which led to a slip and fall and what time someone left the bar. However, businesses must have policies in place for storing footage; many systems default to constantly overwriting old footage, rendering the needed surveillance footage useless.

These elements are tied together with staff awareness and observation. This is particularly important in fraud cases. For example, at a brewery, a gentleman left the taproom and stumbled outside. He walked to the edge of a landscaped terrace, peeked over the edge and launched himself over. The fall was small but substantial enough to result in bodily harm. However, a taproom employee witnessed the episode. By serving as a witness, the employee could provide a stronger defense for the brewery when presented with a lawsuit by explaining that the gentleman did not accidentally fall over but rather launched himself off the terrace.

For agents and brokers new to the liquor liability space, it is important to understand the liability facing alcohol-selling insureds under dram shop laws. In addition, agents and brokers should:

  1. Know the individual business with which they are working. Agents and brokers should be able to present underwriters with a full breakdown of how alcohol is sold and consumed at a business seeking coverage. This is critical to understand, as this liability and exposure can differ based on the type of business. A brewpub has different risks than a taproom.
  2. Ask insureds about training and policies. Do they use a trusted training program? Do they have a protocol in place for dealing with overserved customers? These policyholders should have fully trained staff and policies that address overserving customers.
  3. Familiarize themselves with state laws. Dram shop laws vary from state to state and even the most subtle of differences can be incredibly important. Some states have different types of training specific to their regulations that need to be followed as well. With the proper knowledge, agents and brokers can point their clients toward the appropriate state resources, demonstrating their value to the insured.

As the brewery and winery space continues to innovate, new risks and exposures will enter the market. Variations in dram shop laws will prove tricky for existing business owners and newcomers. This presents a ripe opportunity for agents and brokers to demonstrate their value as a knowledgeable resource in this industry niche — a resource that understands the latest on their state’s dram shop laws and related loss control best practices.

For more information contact The Ayres Group at 1-800-343-2152

Courtesy: Property Casualty 360

Insurance helps hospice care providers focus on the patient

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Hospice organizations focus on the care – not a cure – for the patient, as well as support to the patient’s loved ones. If your organization operates a hospice, you are in a unique position to affect the quality of life in your communities.

By making sure your organization has appropriate insurance protection, you can keep your focus on the important services you provide to patients and their families. Take time to review the declarations page of your insurance policy. Many policies contain professional liability deductible. These deductibles can be sizeable, so it’s important to maintain a line item in your operating budget to account for this exposure.

Here are some insurance coverages to consider, but each organization is unique. Talk to your Ayres Group agent and your legal adviser for information specific to your situation.

MANAGEMENT LIABILITY (D&O)

Healthcare Institutions Directors & Officers Liability (D&O) coverage protects the management of hospices and their subsidiaries – including past, present and future directors, officers, trustees, administrators, employees, volunteers and members of boards or committees – against alleged wrongdoings. In the hospice industry, managers must direct peer review committees and quality of care and staff privileges. Periodic training regarding the Health Insurance Portability and Accountability Act (HIPAA) and the Emergency Medical Treatment and Active Labor Act (EMTALA) is essential for healthcare-related organizations. These duties and others put hospices at risk for D&O claims, such as written demands for monetary damages, formal administrative actions, civil suits, and regulatory proceedings.

D&O claims cannot be taken lightly, as they can quickly become costly. Examples include: alleged improper billing and collection practices, former business partner separations and severance disputes, breach of duty and denial of clinical privileges.

EPLI

Employment Practices Liability Insurance is another crucial coverage for hospice organizations, along with third-party EPLI coverage. Claims can potentially include discrimination, harassment, retaliation and wrongful termination. Sex and race discrimination are the most common types of EPLI discrimination claims in the workplace. For example, in the hospice industry, a highly paid nurse replaced by a younger, lower paid nurse could sue for age discrimination.

CYBER LIABILITY

Don’t overlook the threat of cyber-related incidents, and look for insurance coverage to protect the hospice from data breaches, identity theft, computer attacks, network security liability and cyber extortion. Thousands of patient names and Social Security numbers have the potential to be exposed due to security breach of a hospice computer server or as the result of a computer virus.

SEXUAL ABUSE

Sexual abuse and molestation coverage is an important area to review. Many policies provide vicarious coverage only, meaning only the hospice organization itself is protected; no coverage is included for a specific employee or volunteer worker. This can create a conflict if a claim against a worker goes to trial. You can determine if an employee or volunteer worker is covered by looking at the coverage form under “Who is an Insured.” Look to see if the sexual abuse molestation coverage is included within the general liability coverage of the policy or as a separate item. If it’s included, then sexual abuse and molestation coverage must share the limits with other liability losses. Separate coverage usually means separate limits exist. Ask your agent if you are in doubt.

By taking care of key insurance coverage, you can protect your hospice organization and turn your efforts to serving your patients, their families and the community.

For more information contact your Ayres Group Agent

Life insurance protects, offers peace of mind

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Did you know most Americans (78 percent) agree that preparing financially for life’s unknowns is a way to show that you care? In fact, a little closer look at the data finds almost 2 in 3 (65 percent) think that having life insurance is key to taking care of their family financially.

These are just some of the findings from the “2019 Insure Your Love Consumer Survey” by Life Happens. The nonprofit association is dedicated to helping more Americans take personal financial responsibility through ownership of life insurance and related products. Its survey also examined the ways Americans address financial stress in their lives.

LOOKING FOR A NEW WAY TO SAY I LOVE YOU?

The survey found 75 percent of people with life insurance say they prioritize the happiness of their loved ones over their personal happiness compared to 66 percent of people without life insurance.

REDUCE STRESS AND GET MORE OUT OF LIFE!

Almost 8 in 10 people (78 percent) say that finding ways to reduce financial stress is a top priority. And the good news is many are taking steps to do so: 7 in 10 people with life insurance (69 percent) say they are less stressed knowing their family is financially protected. In addition, peace of mind comes with that reduced stress: 65 percent of those with life insurance say they’re able to enjoy life more knowing their loved ones are financially protected with life insurance.

WHAT ADDS MEANING TO YOUR LIFE?

People find joy and meaning in life in different ways. But some things bubble to the top as life-enhancing. Those surveyed say these things add a great deal of meaning to their lives:

  • feeling financially secure (62 percent)
  • being in love (60 percent)
  • finding a reason to laugh every day (59 percent)
  • owning a home (43 percent)

And despite what may seem like an all-pervasive obsession with technology, having the latest electronic gadget was life-affirming to just 10 percent.

IS THERE A DISCONNECT FOR SINGLE PARENTS?

Nearly 8 in 10 single parents (78 percent) agree that financially preparing for life’s unknowns is a way to show your loved ones you care. And most of them (85 percent) say feeling financially secure is

a top priority, as is reducing financial stress (79 percent). However, only slightly more than half of single parents have life insurance in place compared to parents who live with their spouse/partner (72 percent).

 

Life Happens conducted the “2019 Insure Your Love Consumer Survey,” an online survey, via Survey Monkey among US consumers ages 18 and older who play a role in financial decision-making for their household. A group of 1,748 respondents qualified for the survey; base size varies by question as respondents could skip questions or drop out before completing the survey. The survey was fielded from October 31 to November 2, 2018.

Neither The Ayres Group Insurance Company nor its affiliates or representatives offer tax or legal advice. Consult with your tax adviser or attorney about your specific situation. For policy service and additional information, speak to an independent agent representing The Ayres Group Insurance Company. For a complete statement of the coverages and exclusions, please see the policy contract. All applicants are subject to underwriting approval. 

Knowledge is power in protecting yourself from fraud

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While you work hard to earn money, criminal enterprises are working hard to steal it. So let’s take a minute to brush up on the latest tricks, scams, and methods criminals are using to steal data and money from you and your customers.

Internet fraud is the use of internet services – or software with internet access – to defraud victims or to otherwise take advantage of them. Internet crime schemes steal millions of dollars each year from victims and continue to plague the internet through various methods. Several high-profile methods include:

  • Business Email Compromise (BEC): This sophisticated scam targets businesses working with foreign suppliers and companies that regularly perform wire transfer payments. Criminals compromise legitimate business email accounts through social engineering or computer intrusion techniques to conduct unauthorized transfers of funds. Social engineering is a method of first gaining trust to manipulate a victim into divulging personal or confidential information.
  • Data Breach: A leak or spill of data is released from a secure location to an untrusted environment. Data breaches can occur at the personal and corporate levels and involve sensitive, protected or confidential information that unauthorized individuals copy, transmit, view, steal or use.
  • Denial of Service: An authorized user’s access to any system or network is interrupted, typically with malicious intent.
  • Email Account Compromise (EAC): Similar to BEC, this scam targets the general public and professionals associated with — but not limited to — financial and lending institutions, real estate companies and law firms. Perpetrators of EAC use compromised emails to request payments to fraudulent locations.
  • Malware/Scareware: Malicious software is introduced with the intention to damage or disable computers and computer systems. Sometimes perpetrators use scare tactics to solicit funds from victims.
  • Phishing/Spoofing: Both terms deal with forged or faked electronic documents. Spoofing generally refers to the dissemination of email that is forged to appear as though it was sent by someone other than the actual source. Phishing – often used in conjunction with a spoofed email – sends an email falsely claiming to be an established legitimate business with the intent to deceive the unsuspecting recipient into divulging personal, sensitive information such as passwords, credit card numbers and bank account information. The email directs the user to visit a fake website set up only as an attempt to steal the user’s information. Vishing is a variation of the scam using voice messaging; smishing uses SMS text messaging; and pharming uses fraudulent websites. Spear phishing attacks target specific individuals and use emails that appear to come from a trusted sender.
  • Ransomware: This form of malware targets both human and technical weaknesses in organizations and individual networks to deny the availability of critical data or systems. Ransomware is frequently delivered through spear phishing emails to recipients, resulting in the rapid encryption of sensitive files on a corporate network. When the victim organization determines they are no longer able to access their data, the cyber perpetrator demands the payment of a ransom, typically in virtual currency such as Bitcoin, at which time the actor purportedly will provide an avenue to the victim to regain access to their data.

Frequent instances of internet fraud include business fraud, credit card fraud, internet auction fraud, investment schemes, Nigerian letter fraud and non-delivery of merchandise. For information on the most common complaints and scams, see the annual reports of the Internet Crime Complaint Center (IC3), a partnership of the FBI and the National White Collar Crime Center. Also see its information on Internet Crime Schemes and its Internet Crime Prevention Tips

Don’t put it off: Assess your life insurance

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Would you believe that 1 in 5 families with children under age 18 does not have life insurance? As shocking as that may be to many of us, a 2018 study by LIMRA, a leading insurance, and financial services trade organization, also found that 3 in 10 families would be in immediate financial trouble if a primary wage earner died. And, nearly half of respondents would experience financial adversity in just six months.

LIMRA estimates that 48 percent of U.S. households are underinsured by an average of $200,000.

Sadly, the LIMRA’s 2018 survey found that the most common reason respondents gave for not buying insurance was they incorrectly believed it was too expensive. Indeed, most estimated the cost of a $250,000 policy for a healthy 30-year-old at three times its actual cost of an average of $160 a year – the monthly cost for many common expenses. Life insurance prices, especially term life, have remained at affordable levels while other daily expenses have increased.

Now is an ideal time to re-examine the amount of life insurance you and your family have in force.

Most people put off this task for one of two reasons:

  1. The thought of losing a loved one is difficult to handle. It makes people uncomfortable to consider a world without that person in it.
  2. They find the task too complicated and burdensome.

Let’s address the second part first by admitting that for many people, deciding what type and how much life insurance to buy is complicated. That’s why consulting with your Ayres Group insurance agent is so crucial to the process.

Our agents can help you consider the right questions. For example:

  • What are your average monthly expenditures and how long will they continue? Basic utilities (electricity, water, trash) and common comforts (cable/satellite/streaming services, internet, wireless plans) will always be needed. Mortgage payments, car payments, and child expenses, on the other hand, likely will diminish. Knowing how much of each wage earner’s take-home pay is used to cover these expenses helps to determine how much life insurance is needed.
  • What is your timeline? Identify your “peak need” years by examining the ages of any children and their educational or medical needs as well as the number of years left on any loans. Finally, understand that there will likely always be a need for life insurance for income replacement, survivor benefits or final expenses. An agent can help build the perfect coverage plan for your family’s specific needs.

As for the uncomfortable thought of losing a loved one, turn the idea around. Ask yourself “will my family be able to survive financially after I am gone?” If you view life insurance as taking care of your family, you gain a better perspective on the need for life insurance.

Remember, life insurance is not for the person who dies; it protects the people who live.

Have questions about what you just read? Get in touch. Call 1-800-343-2152

What Those Big Words Mean: Tips for Buying Your First Home

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Buying your first home can be a great experience, but mine has been…complicated, to say the least. The market in West Michigan is bursting at the seams with young dreamers hoping to make their first home purchase, but West Michigan is not alone! Renters all over the country are looking to buy, but are instead experiencing the stony truth of the housing shortage across the nation.

According to the Wall Street Journal, 22 of the 50 states in the continental U.S. have built too few houses to keep up with economic growth since 2000. Home construction per household remains near the lowest level within the last 60 years! This creates an unavoidable problem for a new generation that just wants a place to call their own.

If you’re looking to purchase your first home, it’s important to know the lingo! No matter what stage you’re at in the home-buying process, the terms I’ve defined below will help as you learn how to make an offer you’re comfortable with and that the sellers will love. A real estate agent will reference these definitions, but for newbies like myself, it’s nice to understand the ‘simple’ answer.

THE MONEY

Mortgage

A mortgage is a loan agreement between you, the home buyer, and a bank or other creditor. They lend you the money and you get a home. To repay the bank or creditor for providing this money, the home buyer agrees to pay back the amount they borrow to purchase the home (the principal) plus an additional amount of money as interest

A helpful Loan Calculator is located at http://www.calculator.net/loan-calculator.html

You can change the repayment terms on a loan by choosing a 15-year fixed rate mortgage instead of a 30-year fixed rate mortgage, which means you’ll pay off the loan principal and accrued interest in 15 years instead of 30. This will increase your monthly payment, but will decrease the total amount of interest you pay over the life of the loan. Note: there are many different types of mortgages! While I only mentioned a 15-Year and 30-Year Fixed Rate Mortgage, there are also variable rate and alternative loan programs like FHA (Federal Housing Administration) and VA (Veteran Affairs).

Down Payment

A down payment is a percentage of your home’s purchase price that you pay up front when you close your home loan in addition to the money you borrow. Lenders often look at the down payment amount as your investment in the home. Not only will it affect how much you’ll need to borrow, it can also influence:

  • Whether your lender will require you to pay for private mortgage insurance (PMI). Typically, you’ll need PMI if you put down less than 20% of the home’s purchase price.
  • What type of loan is best suited to you, such as a fixed-rate or adjustable-rate mortgage.
  • Your interest rate. Because your down payment represents your investment in the home, your lender will often offer you a lower rate if you can make a higher down payment.

Private Mortgage Insurance (PMI)

If you are unable to pay 20% down on your home purchase, private mortgage insurance may be required by your lender. PMI is a special type of insurance to protect a lender (the bank or creditor) against loss if a borrower (you) defaults on your obligation to repay the loan. This type of insurance is costly and is not required if you can afford a 20% down payment.

Even if your lender requires you to obtain PMI, you may not need to carry the PMI over the life of the loan. Check w/ your lender about your options to terminate the PMI once you have achieved a specified level of equity in your home.

Appraised Value

Many lenders require a formal appraisal by a licensed appraiser to ensure the value of your home is at least as great as the purchase price. This appraisal occurs between when your offer is accepted and when you close on the house. While you may have offered $180,000 on a house if the appraiser returns and says the house is worth $170,000, you either have to pay that $10,000 difference in cash or ask the seller to reduce the purchase price to $170,000.

Learn more about what to do if your home appraised lower than the purchase price here.

Earnest Money

Earnest money is submitted with your offer to demonstrate your intent to follow through with the sale if your offer is accepted. The appropriate amount of earnest money varies from market to market; your realtor can advise on what is customary for your situation. Earnest money can be handled in many ways; the following are common scenarios:

  1. Allocated to Down Payment or Closing Costs: If all contingencies on your offer are met and you proceed with the purchase of the home, you can allocate this earnest money to your down payment or closing costs.
  2. Reclaimed: If one or more contingencies on your offer are not met, for instance, the home appraises under offer price, or it fails inspection, you typically allowed to reclaim your earnest money.
  3. Say ‘Goodbye’ (Surrendered): If all contingencies are met but you back out of the contract, you may not be entitled to get your earnest money back.

Closing Costs

These are the costs incurred for the various expenses involved in the home buying transaction like title insurance, loan origination fees, and appraisal fees. These costs vary widely from transaction to transaction. Your realtor and lender can assist you with learning more about the closing costs for which you will be responsible, but you can safely assume an average between 2%-5% of the purchase price.

Remember, you as a buyer are responsible for paying your closing costs in addition to your down payment. So while you might have $30,000 saved up for a 20% down payment, you will also need additional funds to afford closing costs.

THE TACTICS

Closing Date

The closing date is the date sign all the documents necessary to officially purchase a house. This is typically about a month after your offer is accepted. However, do not confuse this date with possession date, which is defined below.

Possession Date

At closing, you officially own the property. However, you may have agreed in your purchase agreement to allow the former owners to keep possession of the property until a later date. This means that although you have paid the down payment, paid closing costs, and are now responsible for the mortgage, you still do not have the right to move into your new home.

Possession dates that don’t line up with the closing date generally occur because the sellers need time to find a new place to live. However, the buyer must agree to a later possession date as part of the purchase agreement in order for the seller to retain possession of the property after the closing.

Inspection

Man and red hard hat looking at the gutters of a homeA home inspection is a non-invasive, examination of the condition of the house that is designed to identify any problem areas with the property. The home inspector typically looks for evidence of insect, water or fire damage that may affect the value of the property. They will likely check heating, cooling, electrical and plumbing systems. They also may check structural items like the floors, walls, and ceiling as well as the roof and attic. If your house has a basement, it should be examined for leaks and to make sure it has the proper supports in place. Remember, a home inspection is an examination of the property’s condition, and is not the same thing as a home appraisal (see definition above).

If your inspector finds damage in the home, you may be able to negotiate that the seller fixes the issues or agree to a lower purchase price.

Buying a house is complicated! But once you find the one that makes you feel at home, the headaches seem to be worth it.

Helpful Tips for New Drivers

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I remember the first day I passed my driver’s test. I felt like I was on cloud nine…invincible. I instantly thought about all of the places I was going to go by myself. No more asking my parents or friends for a ride – my ticket to being independent had finally come, and I was ready to take on the road like a pro! Handing the paperwork to the clerk at the Secretary of State was empowering. “This is it,” I thought to myself. “You are about to get your official driver’s license!” I made sure I looked my best for my photo (I even made them take the picture twice) and they said I would receive a hard copy of my license in the mail in 2 to 3 weeks.

Walking out that door with the authorization to drive on my own, I couldn’t stop smiling, I felt like a true adult. However, I was far from it. The truth is, I was only 16-years-old and had no idea the weight of responsibility that was on my shoulders now. I’ll admit for the first few months I was driving alone, I was a little scared. I would have to constantly keep rubbing my palms on my clothes because they would get sweaty and slippery on the wheel. If I got beeped at, I took it very personally and thought about what I could have done better. I made sure to make as little mistakes as possible – I didn’t want any of the other experienced drivers thinking I was a beginner at this! Eventually, it got better with practice and I became more comfortable with going on highway ramps, switching lanes and driving in urban areas.

If you have a teen that just passed their driver’s test or are currently in driver’s education, remember that this moment is an important, life-changing accomplishment for them. Even though you won’t be physically by their side when they’re behind the wheel, you can still offer them your support and driving wisdom beforehand. I know, it’s easier said than done. Looking back, I didn’t exactly listen to everything my parents told me when I was 16, but I must have retained something since I’m a pretty safe driver now!

Sadly, according to the CDC, vehicle crashes are the leading cause of death for teens in the U.S. It’s scary and the last thing you want to imagine, so it’s important to make sure they’re truly prepared for driving.

Thankfully, you can guide your teen to ensure their driving experience is as safe as possible with these helpful tips:

    • Follow the speed limit. I know, it’s an obvious one. But when you go too fast, you have less time to stop or react. Speeding is one of the leading causes of teenage accidents. Another obvious and important reminder – always wear your seatbelt! According to the CDC, wearing a seat belt can lower the risk of death in car accidents by nearly 50%.
    • Make sure your seat is adjusted properly to your height. This is very important because if you can’t see through your rear view mirror, it can affect your driving. A good way to tell if the mirror is in the right spot is if you can see the headlights of the car behind you. Also, make sure to adjust your door mirrors on the drivers and passenger side.
    • Keep that windshield clean. Keeping your car clean isn’t just about style. In the morning and evening, light reflecting off a dirty windshield can temporarily blind you while you’re driving.
    • Always check your blind spot. This is something I can’t stress enough! Thoughtlessly changing lanes can lead to a dangerous situation, especially with smaller vehicles like motorcycles.
  • Use your turn signals. Whether you’re turning or changing lanes, you need to give the car behind you enough time to react.
  • Be cautious for aggressive drivers. If you do encounter an angry driver, back off and give them space on the road. The best thing is to stay calm to avoid getting into an accident with this person, or another driver on the road.
  • Don’t use cruise control in the rain or snow. Using this feature during heavy rain, snow or ice can cause you to lose control of your vehicle.
  • Keep your hands on the wheel, and off your cell phone! Texting and driving has become the number one distraction for teens and adults. A text isn’t worth anyone’s life, and each time you take your eyes off the road, you put yourself and others at risk. Another reason to keep your eyes on your phone – you will get a ticket! According to the Governors Highway Safety Association, 47 states have banned text messaging for drivers. If you get caught, you may get slapped with a big fine, and get points on your driving record. A good way to avoid this is to keep your phone in a place that you can’t reach while you’re driving.

For the first few weeks, it might be a good idea to have your teen start off with small trips that are less than five miles away. It will help build confidence and allow them to get more comfortable with driving alone. If you’re still nervous, there are other options you can look into, such as a GPS tracking device or smart phone apps that will monitor the location and driving speeds. Plus, larger automakers have actually installed systems in their new models that allow parents to set limits on speed and drive time, so keep an eye out for those.

From everyone here at The Ayres Group, good luck, and safe driving!

Outdoor gatherings: Making memories, not regrets

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Block parties, wedding receptions, graduation celebrations, family reunions: These are just some of the events that are fun to take outdoors. But when you’re the host, your concerns need to extend beyond hoping for cooperative weather and stocking snacks.

In general, any time you serve alcohol, host a pool party or provide equipment for entertainment, there is an element of potential liability on your part for any injury, and your insurance may not provide coverage.

POOLS

If you own a backyard pool, you may be liable if someone is injured. Consider who uses your pool. Are children supervised? Do you limit the number of swimmers in the pool at one time? Are there slides or diving boards that could increase the risk of injury? Many insurance companies do not issue policies on properties with these types of pool equipment.

PLAY EQUIPMENT

Other child-oriented activities pose hazards as well. There have been reports of injuries to children after bounce houses went airborne. While that is not likely to happen, other bounce house injuries are common. Whether you purchase or rent inflatables, follow the manufacturer’s instructions for setup and storage, and take common-sense precautions to prevent injury.

Trampolines pose an even bigger risk, and some carriers exclude trampolines from coverage or charge an extra premium. The American Academy of Pediatrics warns that thousands of people are injured each year while using trampolines, especially when more than one child is jumping at one time.

As part of its underwriting process, your insurance company may request documentation that safety measures are in place for bounce houses and trampolines. The CPSC offers tips for periodic trampoline maintenance and inspection.

ALCOHOL

When you serve alcohol, be especially careful. Slower response times and reduced clarity in judgment make routine games such as lawn darts, horseshoes or football more dangerous. Make sure adults who supervise children are competent and not impaired. Also, be aware that you may be held liable if a guest drives home from a party intoxicated and injures or kills someone, or damages someone’s property, on the way. Ask your Ayres Group insurance agent whether your potential liability would be covered by your homeowner policy. Coverage for liability arising out of serving alcohol to guests is referred to as host liquor liability and is not covered by all insurance companies.

RENTED VENUES

Location is another concern. If you rent a shelter, be sure to ask your agent if your homeowner’s liability insurance extends property damage coverage to the rented location.

Most picnics and parties go off without a hitch. However, before you plan a big event, it is a good idea to review your homeowner’s liability coverage with your agent to make sure you are covered should an accident occur.

Remodeling, renovation can affect home’s value

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Remodeling and renovation projects can add significantly to the value of your home. Whether you do it yourself or hire a contractor, remember to update your homeowner insurance as you increase your home’s value.

The Coverage A limit on your homeowner policy is the amount of insurance you have to reconstruct your home in the event of a total loss. All costs associated with replacing or rebuilding your home are considered when developing this Coverage A limit. When you make changes that increase the value of your home, you may also need to increase the coverage limit.

Reconstruction cost is the cost to hire a contractor to replace the home as it is, in today’s marketplace, using materials and design of similar quality. Determining the reconstruction cost of your home can be a challenging and complex process. In most situations, reconstruction cost does not reflect the market value, tax assessor value or the initial construction cost of the home – even on a new home.

As you plan your next project, take an inventory of your home’s new features. Consider interior changes as well as exterior.

  • Does the addition on your home have a different roof material than the rest of your home?
  • Does the new deck you built include a kitchen, built-in grill or electric fireplace?
  • Is your contractor installing built-in bookshelves and TV cabinets?
  • Are you finishing your attic area to create an extra bedroom?
  • Did you upgrade your windows?

You may put lots of time into picking out countertops and appliances for your new basement kitchen, type of wood for cabinetry, the color of brick to match the original portion of your home, quality of decking materials and other factors. Remember to share these important changes with AYres Group agent.

Most insurance companies offer a replacement cost endorsement to ensure you will get the full reconstruction cost to rebuild your home in the event of a covered total loss, or a percentage more than the limit of insurance on your declarations page. You may also wish to explore this option with your agent.

Discuss your homeowner coverage with your Ayres Group agent to be sure your home and the investment it represents are adequately insured in the event of a loss.