The record-breaking floods that swept across the Midwest only two years ago serve as a compelling reminder of the damage spring flooding can cause. In 2008, significant rainfall caused devastating damage to homes and businesses. Federal disasters were declared in nine Midwest states as some river crests exceeded 500-year levels, and dams and levees were breached across the region. Unfortunately, extensive flooding is nothing new to home and business owners in the Midwest. Fifteen years earlier, the Great Midwest Floods of 1993 still represents one of the largest floods in U.S. history. From April through October, nine Midwest states suffered widespread flood devastation. The result was nearly $273 million in insured flood damage and an estimated $15 billion in total damages.  However, even with these costly reminders, today less than 5 percent of homeowners are protected by flood insurance.

Every year, the Midwest is at a heightened flood risk during the spring and summer months as warm days, heavy rains and severe storms sweep across the region. It is critical that you reach out to your customers now to communicate their increased flood risk and encourage them to protect themselves with flood insurance – only a flood insurance policy will provide financial protection against flood damage. Most homeowners insurance policies do not cover flood damage. And remember, those outside of a high-risk area should still consider flood insurance because approximately 25 percent of all flood damage occurs in moderate-to-low risk areas. Remind these customers that they may be eligible for a special low-cost Preferred Risk Policy, starting at as little as $119 a year.

Customers can now learn more about their individualized flood risks by visiting an interactive flood map at www.floodsmart.gov/noaafloodweek. Developed by FloodSmart, in partnership with NOAA, this map depicts historical information about these disastrous Midwest floods, among many others, and the Web page provides visitors with more information about the financial costs of flooding, how to get a policy, and in the unfortunate situation where a flood event occurs, how to recover.

Below are talking points that will help you initiate the conversation with your customers about their heightened risk during spring flood season and the importance of flood insurance.

Flooding is the most common natural disaster.

• Rapid melting of the heavy snowpack from the past winter can overwhelm local rivers and streams, stress levees and increase the flood threat throughout the spring.
  
  
• Flash floods, inland flooding and seasonal storms are always possible and can bring floods to every part of the region.
  
  
• Just a couple of inches of water can cause tens of thousands of dollars in damage.

Most homeowners insurance does not cover floods.

• Only flood insurance financially protects your home and your personal property from floods.
  
  
• Flood insurance compensates policyholders for all covered losses, and as opposed to a disaster loan, there is no payback requirement.
  
  
• Once purchased, there is typically a 30-day waiting period for the policy to become effective, so don’t wait for the rains and warm temperatures…it may be too late.

You can purchase flood insurance no matter what your flood risk is.

• Whether you live in a high-risk or moderate-to- low risk area, you can purchase flood insurance as long as your community participates in the NFIP.
  
  
• About 25 percent of all flood insurance claims come from moderate-to- low risk areas.
  
  
• You are eligible for flood insurance if your house has been flooded before, and you can purchase it even if your mortgage doesn't require it

You may be eligible for a lower cost Preferred Risk Policy if you live in a moderate- to-low risk area.

• For just $119 a year, you can purchase a minimum of $20,000 building and $8,000 contents coverage.
  
  
• Business owners can purchase $50,000 building coverage and $50,000 contents coverage (per building) for just $550 per year.

Should a flood event occur in your community, it is important that you know what to do in response to a flood watch or warning, as well as the important steps to take as you return home.

• In advance of a possible flood event, remember to:
  
  
  • Make a flood plan.
    
    
  • Keep important papers in a safe, waterproof place.
    
    
  • Plan evacuation routes.
    
    
  • Itemize and take pictures of possessions.
    
    
• Check for damage, including structural damage, before re-entering your home. Contact the appropriate professionals immediately if you suspect damage to water, gas, electric and/or sewer lines.
  
  
• Call your agent who handles your flood insurance to file a claim. Have the necessary information with you when you contact them.
  
  
• Work with the adjuster to calculate the damage in order to prepare an accurate estimate. To make filing your claim easier, take photographs of any water in the house and damaged personal property.
  
  
• Make a list of damaged or lost items and include their age and value where possible. If possible, have receipts for those lost items available for the adjuster. To prevent mold, remove wet contents immediately.
  
  
• Gather any documents, such as photographs, receipts and itemized lists you made prior to the flood.
  
  
• Access the American Red Cross free Repairing Your Flooded Home guide on their Web site. This guide will help you as you first re-enter your damaged home.
  
  
• For FEMA Disaster Assistance, call 1-800-621-3362. For general flood insurance questions call 1-800-427-4661.
  
  
• For additional information about flood risk and flood insurance visit FloodSmart.gov.   

Below, please find additional documents to assist you as you recover from flood damage.

• After the Flood fact sheet: Helpful information for residents as they return home

• Filing Your Flood Insurance Claim: A checklist for policyholders as they navigate the claims process

• NFIP Summary of Coverage: An explanation to help policyholders understand their flood insurance policy

• NFIP Flood Insurance Claims Handbook: A step-by-step guide to filing a claim

     
Please email us at info@femafloodsmart.gov with any questions about NFIP, FloodSmart and our agent programs.

• Be present during appraisals and ask questions.
• Politely inquire about an appraiser's familiarity with the neighborhood and recent local sales to make sure the house gets an apples-to-apples comparison.
• Come to an agreement with the appraiser on what, exactly, constitutes "the neighborhood."
• Have your real estate agent present.
• Provide a recent tax bill and a plat of survey.
• Draw up a list of improvements you've made to the home.
• Lenders now want to know about nearby houses that are currently for sale.  So offer your opinion to the appraiser whether those houses, like the ones recently sold, are truly comparable.

Insurance coverage is an important, yet overlooked issue facing college students. How do you know if your college student is appropriately covered?  Ask yourself the following:

Are my student's personal possessions covered under my homeowner's insurance? 

It depends.  Not all homeowners policies are the same.  Most will provide some coverage.  Most policies have limitations on certain property.  The limit for property away from the principle residence is usually 10% of the personal property limit on the parent’s policy.  Most accidental damage is not covered.  In most cases, the student’s personal property is not covered if the student is renting an off-campus apartment or house.  You need to contact your insurance agent to see what coverage is available for your student.

If my student is driving a friend’s car and gets into an accident, is he covered? 

If your student lives away from home and away from the family cars, you may save on your auto insurance.  However, you should not drop your son or daughter from your auto insurance all together - if your student gets into an accident with a friend's car, he or she will not be covered.  Conversely, if your student takes his or her car to school, your rates could go up or down, depending on where the school is located.  You need to contact your insurance agent to see what coverage is available for your student and what kind of premium adjustments to expect.

Does my student have health insurance coverage? 

Check with your own medical policy to see what coverage will be provided for your child.  Most plans will cover dependent full-time students up to a certain age, i.e. (24, 25, or even 26).  You must check with your health insurer.  If your student is out of state and you have a HMO or PPO, be sure that you review your plan's approved list of physicians and hospitals in the area where your child's college is located.  Using an out-of-network physician or hospital may mean that the costs will not be covered.  Also check with your student’s college or university to see if coverage is available.  It is generally offered at a nominal rate.

DeCarl, Levine & Friedman LLC, 2093 Rand Rd., Des Plaines, IL  847-824-3020

www.DLFinsurance.com

  We answer our phones, too!

A growing number of couples are choosing wedding insurance to guard against issues such as lost deposits, host liability coverage, gift breakage, lost or damaged photographs and unavoidable cancellation or postponement.  The average wedding is topping more than $20,000.  Wedding insurance makes good financial sense to protect the investment by providing the following coverages:

No Dress:  You can get repair or replacement cost if the bride's wedding gown or groom's tuxedo is lost or damaged.

Lost Deposits:  The insurer can reimburse your deposit if a vendor goes out of business, declares bankruptcy before your wedding, or simply fails to show up.

Lost Rings:  You can receive repair or replacement cost if the bride's or groom's wedding band is lost or damaged.

Severe Weather:  If severe weather forces you to postpone your wedding, the insurer can provide reimbursement for non-recoverable expenses.

Transportation Shutdown:  If you have to postpone your wedding because a commercial transportation shutdown prevents the bride or groom or their parents from getting there, you can receive reimbursement for non-recoverable expenses.

Ruined Photos:  If your photographer's film is defective, lost or damaged, the insurer can help reconvene your wedding party to take new photos or video.

Call to Duty:  If the bride or groom is unexpectedly called up to duty or military or service leave is revoked, forcing you to postpone the event, the insurer can provide reimbursement for non-recoverable expenses.

Damaged Gifts:  You can get repair or replacement cost if your wedding gifts are damaged.

Sudden Illness:  If the wedding needs to be postponed because sudden illness prevents the bride, groom or their parents from attending, you can receive reimbursement for non-recoverable expenses.

Venue Requires Insurance:  You can add liability coverage and liquor liability coverage to protect yourself in case a guest is injured or causes damage to property.

                                    For a quote on wedding insurance, please contact

DeCarl, Levine & Friedman LLC, 2093 Rand Rd., Des Plaines, IL  847-824-3020

www.DLFinsurance.com

  We answer our phones, too!

PROTECT YOURSELF FROM IDENTITY THEFT!

Identity Theft occurs when someone wrongfully uses your personal identification to obtain credit, loans, services, even rentals and mortgages in your name. They may even commit crimes while impersonating you!

Identity Theft is a frightening and overwhelming experience if it does happen to you. You may not know it is happening for months or years! It is my desire to help other people prevent the nightmare I have had to go through myself.

Enclosed you will find the sample letter to send to the three credit reporting agencies. You may copy it for all three, fill in the blanks, and keep a copy for yourself. Make sure that you send it Return Receipt Requested and keep the postal receipt with your copy.

I cannot guarantee that the three credit reporting agencies will honor these requests. I can tell you that I am actively working to help consumers by promoting protective legislation on the Federal and State levels.

Please also know that these protective measures will not guarantee that a criminal will not get access to your credit from a "less than cautious" credit grantor. As you know, there are many ways to steal private information about you (i.e., anyone who has access to your social security number and other identifying information.) All of these offices have your information: Your doctor, accountant, lawyer, loan officer, health insurance, schools, courts, etc. A shady employee of these people could steal your identity! Remember, you don't have to lose your wallet or have it stolen to become a victim of identity theft.

In addition, here are some other things that you should do to protect your privacy, which will help to reduce the risk of Identity Theft.

PREVENTION:

1. Buy a cross-cut type shredder (you can purchase cross-cut type shredder very cost effectively for approximately $60 - $70.) Shred all your important papers and especially pre-approved credit applications received in your name and other financial information that provides access to your private information. Don't forget to shred your credit card receipts.

2. Be careful of "Dumpster Diving." Make sure that you do not throw anything away that someone could use to become you. Anything with your identifiers must be shredded (cross-cut) before throwing away.

3. Be careful at ATM's and using Phone Cards. "Shoulder Surfers" can get your "Pin Number" and get access to your accounts.

4. Get all of your checks delivered to your bank - not to your home address.

5. Do not put checks in the mail from your home mailbox. Drop them off at a U.S. Mailbox or the U.S. Post Office. Mail theft is common. It's easy to change the name of the recipient on the check with an acid wash.

6. When you order new credit cards in the mail, or your previous ones have expired, watch the calendar to make sure that you get the card within the appropriate time. If it is not received by a certain date, call the credit card grantor immediately and find out if the card was sent. Find out if a change of address was filed if you don't receive the card or a billing statement.

7. Cancel all credit cards that you do not use or have not used in 6 months. Thieves use these very easily - open credit is a prime target.

8. Put passwords on all your accounts and do not use your mother's maiden name. Make up a fictitious word.

9. Get a post office box or a locked mailbox, if you possibly can.

10. Ask all financial institutions, doctors' offices, etc., what they do with your private information and make sure that they shred it and protect your information. Tell them why.

11. Empty your wallet of all extra credit cards and social security numbers, etc. Do not carry any identifiers you do not need. Don't carry your birth certificate, social security card, or passport, unless necessary.

12. Memorize social security numbers and passwords.

13. When a person calls you at home or at work, and you do not know this person, never give out any of your personal information. If they tell you they are a credit grantor of yours call them back at the number that you know is the true number, and ask for that party to discuss personal information. Provide only information that you believe is absolutely necessary.

14. Do not put your social security number on your checks or your credit receipts. If a business requests your social security number, give them an alternate number and tell them why. They do not need that to identify you. If a government agency requests your social security number, there must be a privacy notice accompanying the request.

15. Do not put your telephone number on your checks.

16. Get credit cards and business cards with your picture on them.

17. Do not put your credit card account number on the Internet (unless it is encrypted on a secured site.) Don't put account numbers on the outside of envelopes, or on your checks.

18. When you are asked to identify yourself at schools, employers, or any other kind of institutional identification, ask to have an alternative to your social security number. Unfortunately, your health insurance carrier often uses your social security number as your identification number. Try to change that if you can.

19. In conjunction with a credit card sale do not put your address, telephone number, or driver's license number on the statement.

20. Monitor all your bank statements from every credit card every month. Check to see if there is anything that you do not recognize and call the credit grantor to verify that it is truly yours.

21. Order your credit report at least twice a year (I have enclosed the addresses for you on the sample letter.) Review it carefully. If you see anything that appears fraudulent, immediately put a fraud alert on your reports by calling the numbers below.

22. Immediately correct all mistakes on your credit reports in writing. Send those letters Return Receipt Requested, and identify the problems item by item with a copy of the credit report back to the credit reporting agency. You should hear from them within 30 days.

23. Take your name off all promotional lists. Call the three credit reporting agency numbers to opt out of pre-approved offers.

   Experian:    	(888) 567-8688
   Equifax:     		(888) 567-8688
   TransUnion:  	(888) 567-8688

Write to the following to get off promotional lists:

24. Write to your State and Federal Legislators to demand stronger privacy protection. Also, ask that identity theft be considered a crime in your State. Demand that the State Finance and Banking Committees pass legislation to protect consumers from negligent bank and credit reporting practices.

25. Consider making your phone an unlisted number or just use an initial.

26. Make a list of all your credit card account numbers and bank account numbers (or photocopy) with customer service phone numbers, and keep it in a safe place. (Do not keep it on the hard drive of your computer if you are connected to the Internet.)

Please click here to access Identity Theft : RESOURCES

For free information and ordering www.identitytheft.org

Click here for the Sample Letter to credit reporting agencies.

Do your summer vacation plans include renting a car?  Do you accept or decline the car rental agency's coverages and waivers?  Properly insuring a rental car can be confusing.  Before renting a car, here are some tips to consider.

Step 1. Determine whether your own auto policy will cover the rental car.
Call your insurance agent and find out what kind of coverages you have.  In most cases, whatever coverage and deductibles you have on your own car would apply when you rent a car, providing you are using the car for recreation and not for business.  If you have dropped either comprehensive or collision on your own car as a way to reduce costs, you will not be covered if your rental car is stolen or damaged in an accident. 

Step 2. Check with your credit card company.

Insurance benefits offered by credit card companies differ by both the company and/or the bank that issues the card, as well as by the level of credit card used.  Call the toll-free number on the back of the credit card you will be using to rent the car and ask the credit card company to send you their coverage information in writing.  In most cases, credit card benefits are secondary to either your personal insurance protection or the insurance offered by the rental car company.

Step 3.  Be cautious if you're leaving the state—or the country.
In the United States, insurance laws are different in every state.  But, in most states, you're covered as long as you drive in the US.  However, many policies may limit coverage if you travel to Canada and very few will cover travel to Mexico. If you're traveling outside the country, buy the coverage with the rental car agency. 

Step 4. Don't let a stranger drive your rental car.
Or your best friend, partner, or your teenager.  States have minimum age requirements for renting a car and most rental car companies refuse to rent a car to someone who is under 21 and in some cases under 25. Rental car companies are picky about who drives their car and any coverage you have on your own policy (or the rental car policy) may not cover another driver—unless they are listed on the rental contract.

We are pleased to report that Congress has passed a bill that has reauthorized the National Flood Insurance Program (NFIP) prior to the program’s expiration. The bill contains a short-term reauthorization that extends the statutory authority to issue flood insurance policies pursuant to the NFIP until September 30, 2009.

This short-term statutory authorization will allow us to continue issuing flood insurance policies with no impact to you or your customers. Travelers will continue to work with industry trades, legislators and FEMA to help support a longer term reauthorization of the NFIP prior to the expiration on September 30, 2009.

Who Pays When You Hit A Pothole?

Most counties and the Illinois Department of Transportation and Illinois State Toll Highway Authority have reimbursement policies if pothole damage claims to your vehicle are reasonable and backed up with documentation.  The claims are dealt with on a case-by-case basis.  Here is a sampling of state and county agencies to contact:

♦         IDOT:  Incidents and claims for Cook, DuPage, Kane, Lake, McHenry and Will counties are handled by the District 1 office at (847) 705-4401.  For more information, visit dot.state.il.us/claims/claimsinformation.asp.

♦         Illinois Tollway:  To file a claim, first make a report with the state police at (630) 241-6800, extension 5042.  Claim forms are available on line at illinoistollway.com.  Click on the Traffic and Construction tab, then on the insurance claims link.

♦         City of Chicago:  Call (312) 744-6861 or visit chicityclerk.com.

♦         Cook County:  Call Joe LaFata at the Safety and Training Division at (847) 827-1164.

♦         DuPage County:  Call the Department of Transportation at (630) 407-6900.

♦         Lake County:  Report incidents to lakecountyil.gov/servicerequest.htm or call (847) 377-2241.

♦         Kane County:  Call the Department of Transportation at (630) 584-1170.

♦         McHenry County:  Call the main switchboard at (815) 334-4000, dial 0 and ask for the risk management department.