Does Your Insurance Policy Have You Covered?

Chicago – If you’re hosting friends and family this season, it might pay to check your insurance first. Knowing what’s covered before the road trip or Christmas party will provide peace of mind, allow for advanced planning and, if necessary for additional coverage to protect against unexpected claims. If you still have problems, the Illinois Department of Financial and Professional Regulation (IDFPR) has on-line and toll-free access to trained insurance staff, and can investigate shortcomings and consumer concerns about the insurance companies and agents it licenses.

“None of us like to think about what might go wrong, but making sure you have the right insurance for your family, home and cars is an easy way to protect yourself during the holiday season and all year long,” said Dean Martinez, Secretary, IDFPR. “With so much going on this month, taking a minute to review insurance coverage can provide peace of mind.”

Illinoisans face unexpected events at holiday gatherings, and also when traveling to visit family and friends. The number of insurance claims rise during the winter months – auto accidents, home damage caused by bad weather, faulty wiring, increased crime – including identity theft, and accidents resulting from overindulgence.
 
“Filing a complaint, after learning that the mishap isn’t covered, is one of the most frustrating and least effective ways to learn what’s in your policy,” said Michael T. McRaith, Director, Division of Insurance, Department of Financial and Professional Regulation. “If you need to file an insurance related complaint please click here: Division of Insurance Online Complaint Submission

IDFPR offers these tips to make sure Illinoisans are protected against unexpected costs this season.

Homeowners Insurance

Homeowners insurance policies include coverage for your dwelling and personal property contents against perils such as fire, as well as liability insurance to protect you if you become legally liable for someone’s bodily injury or death, or damage to their property. Some homeowners’ policies also provide coverage for other expenses, such as identity theft.

Liability insurance – There are several holiday and winter situations that could result in a liability claim against you or your family.

Social host legal liability – A social host who provides alcohol to guests and then does nothing to prevent an impaired person from driving or causing injuries to themselves or others, or damage to property might be liable for damages. Before hosting a party where you will serve alcohol, ask your insurance agent or company if your Homeowners insurance policy covers you for social host legal liability. Most Homeowners policies currently provide coverage for social host liability claims. If not, it may be possible to purchase insurance coverage for special events such as a large holiday party, wedding reception, etc.

Winter weather – Besides protecting guests and family members from accidents, by taking care to keep your sidewalk and driveway free of ice/snow and making sure your home is in good repair; you can prevent claims against you and your insurance company.

Dwelling and contents coverage – Check to make sure you have adequate limits of insurance for your home and your contents, especially unusual collections, jewelry, antiques, etc.

Fire - Take care with Christmas decorations. Fresh trees, garlands and wreaths, fireplaces, and holiday candles pose added risks for fire. Keep greenery well watered, don’t leave burning candles in empty rooms and make sure that the fireplace is well maintained and clean. Check smoke detectors and be careful with space heaters.

People are especially vulnerable to burglary, theft and other crime during the hectic holiday season. When traveling, make your home appear as if you are merely out for the evening.

Identity theft – Consumers are especially vulnerable to credit card fraud and identity theft during the holidays when stores are more crowded and people are rushed and distracted. Many Homeowners insurance policies are starting to cover some expenses incurred as a result of identity theft. Contact your insurer to see if you have the coverage or if it is available for an additional cost.

Travel insurance

If you plan to travel this holiday season, think about travel insurance and make sure you understand what is and is not covered. Read the contract carefully before deciding whether to buy.

Trip cancellation insurance – protects against cancellations due to unforeseen circumstances.

Emergency Medical Assistance – provides for medical treatment if you become ill or injured while traveling. Check to see if it provides coverage for pre-existing illnesses if needed.

Baggage insurance – pays if your luggage is lost, stolen, or damaged during a trip.

Auto/Vehicle Insurance

Check your auto policy to make sure as many situations as possible are covered:

Towing insurance and/or roadside assistance

Driving a car other than your own – either a rental car or your host’s car (if you are traveling)

Coverage for family members and out of town guests driving your car (if you’re the host)