Personal, Commercial and Group Life Insurance Services Massachusetts, MA

Claims

Q A water pipe in my basement burst and the water damaged my personal property. Will my homeowner's insurance provide coverage for this claim?

A Yes, but only as relates the property damaged as a result of water being released from the burst pipe. The policy will not pay for the repair of the pipe itself, only the damage that ensued.

Q I was forced off the road by another vehicle and struck a tree. Will my deductible be applied to the loss?

A In most cases, single car accidents always have the deductible applied to the loss. Unless you can specifically identify the other vehicle, have a police report to support your case, and the other vehicle is indeed found at fault, your deductible will apply.

Q If my car is totaled as the result of an accident, how will the insurance company arrive at a settlement amount?

A In most cases, comprehensive and collision coverages are written on an actual cash value basis. The adjuster will determine the actual cash value of your vehicle at the time of the loss and adjust for the vehicle's pre-loss condition, and any applicable deductible. You have the right to negotiate with the adjuster once they make a settlement offer.

Q My car was rear-ended by another car, but I don't carry collision coverage. How can I pursue a claim against the other party's insurance for the damage to my car?

A You should report any and all claims to our office for your protection. In this case, any injuries you incurred as a result of this accident would be filed with your insurance company. First American will assist you in pursuing a claim with the other driver's insurance company for the damages to your car.

Q My windshield is broken and I carry comprehensive insurance coverage on the vehicle. Do I have to pick a glass repair shop from a list provided by my insurer?

A No. You can go to any glass repair shop you choose to have the repairs done, without any penalty.

Q My car was broken into and my cell phone, portable CD player and a number of CDs were stolen. Am I covered?

A
The Mass. Personal Automobile Insurance policy specifically excludes coverage for tapes, discs or records. Cell phones and CD players (and other sound producing equipment) are only covered if they are permanently installed in a vehicle. Portable devices that may be used in your vehicle may be covered under your homeowers insurance policy.

Commercial Insurance

Q I am thinking about starting a new business. What type of insurance do I need?

A The only easy answer is for you to call First American. One of our insurance professionals will discuss your business plans with you and then we will customize an insurance program based upon your unique situation.

Q I own a pickup truck that my son uses on weekends during the summer for his lawn service business. He drives the truck from house to house with his equipment in the bed of the truck. Do I need commercial auto insurance?

A Yes. Not only should you have commercial auto insurance, but you should also have commercial plates on the pickup.

Q I work full-time for a plumbing contractor. At night and on weekends I do plumbing jobs on the side for extra money. Does my employer's insurance or my homeowner's insurance cover me for these side jobs?

A No. Your employer's insurance will only respond to claims arising out of and during the course of your employment. Your homeowner's insurance specifically excludes coverage for such business pursuits. Contact First American to get insurance in your own name.

Q Who is required to carry Mass. workers' compensation insurance?

A Mass. law requires that any person or entity that employs 1 or more employees must carry workers' compensation insurance. Failure to comply with the law may result in work stoppage, fines and imprisonment.

Homeowner's Insurance

Q Can an insurance company refuse to insure my house because I own a particular breed of dog?

A
Yes. Most homeowner's insurance companies have adopted lists of undesirable dog breeds that have demonstrated a propensity to bite. If you own such a breed and did not disclose it to the company at the time of the application, the company can deny coverage for any claims related to the dog, cancel your policy or non-renew coverage.
Even if you are a responsible dog-owner and your dog has never bitten anyone, insurers can refuse to offer you insurance. You can most likely obtain insurance through the Mass. FAIR Plan as 'the market of last resort' for such situations, although the premium is generally higher than that offered by standard insurers.

Q Does my homeowner's insurance policy cover damage caused by a flood?

A No. Homeowner's insurance excludes coverage caused by water damage – including the following: flood; surface water; waves; overflow of a body of water; sewer, drain and sump backup; and water below the surface of the ground. However, you can purchase a separate Flood Insurance policy to protect you against such loss. Contact First American for more information.

Q Does the replacement cost of my house have anything to do with its market value?

A
Generally, no. The replacement cost of your house is an estimate of the cost to rebuild your house as it currently stands with 'same, like, kind and quality' materials. It includes adjustments for the current cost of labor and materials. It does not include the value of the land on which your house stands since land is not insurable. It does include the value of any improvements, upgrades or additions you have made to your house.
Market value is simply the price the market is willing to bear for your house and the land on which it sits. While your house may have a replacement cost of $100,000, its market value may be $200,000 given its location. In this case, your house can only be insured for $100,000, its replacement cost. Conversely, you may have bought your house for $100,000, but its replacement cost is $200,000. In this case, your house should be insured for $200,000.

Q Why would I, and do I need to, 'schedule' my jewelry on my homeowner's insurance policy?

A Most homeowner's insurance policies contain a limit on the amount payable to you should your jewelry be stolen. Typically, this total limit per theft is $1,500. By 'scheduling' each item of jewelry on your policy, based upon either a purchase receipt or recent appraisal, in the event of a theft you would be covered up to each individual per item limit as listed on the policy. Additionally, by 'scheduling' your jewelry, you also get coverage for mysterious disappearance.

Mass. Registry of Motor Vehicles

Q How will the RMV calculate the 5% sales tax for a vehicle I recently purchased and plan to register in Mass.?

A For any vehicle purchased through a licensed dealer, the 5% sales tax will be applied to the net purchase price of the vehicle, as listed on the purchase agreement or bill of sale. For any vehicle purchased through a private party (an unlicensed dealer), the 5% sales tax will be applied to either the purchase price or the NADA value, whichever is higher. The RMV calculates the NADA value at the time of registration using their software. First American can provide you with an estimate of your car's NADA value prior to registration.

Q I bought a car from a private party and it has a current and valid Mass. inspection sticker. Do I have to get a new sticker?

A Yes. The inspection sticker belongs to the owner of the car. It is not transferable to the new owner. You have 7 days from the date of registration to get a new sticker. Your failure to get a new sticker, and/or to continuously maintain a valid sticker on your car, will result in revocation of your registration by the RMV.

Q My registration renews at the end of the month, but I haven't received the registration renewal application from the RMV yet. Why?

A Typically, the RMV will not send out registration renewals to registrants who have any of the following outstanding items: parking tickets; moving violations; excise taxes; warrants and Fast Lane violations. Additionally, your failure to maintain a valid inspection sticker or to notify the RMV of a recent address change may prevent you from receiving your renewal application. First American can determine why you didn't receive your renewal and will assist you in completing an RMV-3 to renew your registration, once the outstanding items are cleared.

Q Under what circumstances does the RMV require commercial plates on a vehicle?

A
Any pickup truck or cargo van whose load capacity exceeds 1 ton (2,000 lbs.).

Any vehicle with more than 4 wheels on the ground.

Any pickup truck or cargo van owned by a partnership, trust or corporation.

Any vehicle used to transport tools, supplies, materials or equipment to and from job sites in the bed of the vehicle or on the top or side of the vehicle.

Any vehicle which has business advertisements or business markings.
Any vehicle used for hire to plow, used for hire to deliver goods for another, or used to deliver goods sold by oneself.

Personal Automobile Insurance

Q
I just bought a new car that has a passive alarm system that was installed by the manufacturer. Should I also get VIN etching on my windows?

A You can certainly have your windows etched to compliment the passive alarm system. However, the anti-theft discount for a passive alarm system, or 20%, will apply and can't be combined with the 15% discount afforded for window etching.

Q
My teenager just received their Mass. learner's permit. When do I have to notify you to add them to my policy?

A
New drivers should be added to your policy as soon as they begin to drive the auto. Your failure to list an operator could result in the denial of a claim that involves optional insurance coverages.

Q Can I appeal an accident surcharge?

A Yes. If you believe you were not more than 50% at-fault, and/or there were extenuating circumstances giving rise to the accident, you may appeal to the Board of Appeal at the Division of Insurance. The law requires you to file an appeal within 30 days from your receipt of the Surcharge Notice - otherwise you lose your right to appeal. The filing fee is $50, and First American will gladly help in filing your appeal. It typically takes anywhere from 6 months to a year for your appeal hearing to be scheduled, and you will continue to be surcharged until the time of your hearing.

Q How do I cancel my Mass. automobile insurance policy, or delete an auto from my policy?

A The only way to cancel Mass. auto insurance is to surrender your license plates to the Registry of Motor Vehicles - the RMV will issue you a Plate Return Receipt. Even if you have sold your vehicle (signed the title over and physically given it to the buyer), as long as your plates are active, your insurance will remain active. First American can process these transactions for our clients at no cost, in our office while you wait.

Q I had a DVD entertainment system installed in my SUV. Is it covered under my personal automobile insurance policy?

A Electronic equipment that has been permanently installed in an auto in locations used by the auto manufacturer for the installation of such equipment is covered. However, if the equipment has been permanently installed in locations not used by the auto manufacturer, coverage is limited to $1,000. Excess Electronic Equipment Coverage can be purchased to increase this $1,000 limit, provided detailed receipts are submitted and an additional premium is paid.

Q What is the difference between 'Part 1 - Bodily Injury to Others' and 'Part 5 - Optional Bodily Injury to Others'?

A
'Part 1 - Bodily Injury to Others' covers bodily injury to anyone injured by your auto, but only for accidents that occur in Mass. Injuries to either the driver of your auto or passengers in your auto are not covered under this Part.

'Part 5 - Optional Bodily Injury to Others' extends your coverage under 'Part 1 - Bodily Injury to Others' and includes coverage for accidents occurring outside of Mass., including the entire U.S. and its territories, and Canada. Injuries suffered by guests in your auto are covered under this Part.

Q Why do I have to list the members of my household on my policy?

A Your failure to list a household member or any individual who customarily operates your auto may have serious consequences – if the event of an accident, your policy may not pay benefits under the Optional Insurance coverage Parts and your policy may be cancelled for misrepresentation. If a household member does not have their own auto policy and/or their SDIP and rating class is not charged on another policy, and their SDIP and rating class would have increased your premium had they been properly listed as an operator, Mass. allows for claim payments to be withheld. Don't take that chance…call First American to review your own unique situation.

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Insurance Tips

On the Air

Q	A water pipe in my basement burst and the water damaged my personal property. Will my homeowner's insurance provide coverage for this claim?
A	Yes, but only as relates the property damaged as a result of water being released from the burst pipe. The policy will not pay for the repair of the pipe itself, only the damage that ensued.

Q	I was forced off the road by another vehicle and struck a tree. Will my deductible be applied to the loss?
A	In most cases, single car accidents always have the deductible applied to the loss. Unless you can specifically identify the other vehicle, have a police report to support your case, and the other vehicle is indeed found at fault, your deductible will apply.

Q	If my car is totaled as the result of an accident, how will the insurance company arrive at a settlement amount?
A	In most cases, comprehensive and collision coverages are written on an actual cash value basis. The adjuster will determine the actual cash value of your vehicle at the time of the loss and adjust for the vehicle's pre-loss condition, and any applicable deductible. You have the right to negotiate with the adjuster once they make a settlement offer.

Q	My car was rear-ended by another car, but I don't carry collision coverage. How can I pursue a claim against the other party's insurance for the damage to my car?
A	You should report any and all claims to our office for your protection. In this case, any injuries you incurred as a result of this accident would be filed with your insurance company. First American will assist you in pursuing a claim with the other driver's insurance company for the damages to your car.

Q	My windshield is broken and I carry comprehensive insurance coverage on the vehicle. Do I have to pick a glass repair shop from a list provided by my insurer?
A	No. You can go to any glass repair shop you choose to have the repairs done, without any penalty.

Q	My car was broken into and my cell phone, portable CD player and a number of CDs were stolen. Am I covered?
A	The Mass. Personal Automobile Insurance policy specifically excludes coverage for tapes, discs or records. Cell phones and CD players (and other sound producing equipment) are only covered if they are permanently installed in a vehicle. Portable devices that may be used in your vehicle may be covered under your homeowers insurance policy.

Q	I am thinking about starting a new business. What type of insurance do I need?
A	The only easy answer is for you to call First American. One of our insurance professionals will discuss your business plans with you and then we will customize an insurance program based upon your unique situation.

Q	I own a pickup truck that my son uses on weekends during the summer for his lawn service business. He drives the truck from house to house with his equipment in the bed of the truck. Do I need commercial auto insurance?
A	Yes. Not only should you have commercial auto insurance, but you should also have commercial plates on the pickup.

Q	I work full-time for a plumbing contractor. At night and on weekends I do plumbing jobs on the side for extra money. Does my employer's insurance or my homeowner's insurance cover me for these side jobs?
A	No. Your employer's insurance will only respond to claims arising out of and during the course of your employment. Your homeowner's insurance specifically excludes coverage for such business pursuits. Contact First American to get insurance in your own name.

Q	Who is required to carry Mass. workers' compensation insurance?
A	Mass. law requires that any person or entity that employs 1 or more employees must carry workers' compensation insurance. Failure to comply with the law may result in work stoppage, fines and imprisonment.

Q	Can an insurance company refuse to insure my house because I own a particular breed of dog?
A	Yes. Most homeowner's insurance companies have adopted lists of undesirable dog breeds that have demonstrated a propensity to bite. If you own such a breed and did not disclose it to the company at the time of the application, the company can deny coverage for any claims related to the dog, cancel your policy or non-renew coverage. Even if you are a responsible dog-owner and your dog has never bitten anyone, insurers can refuse to offer you insurance. You can most likely obtain insurance through the Mass. FAIR Plan as 'the market of last resort' for such situations, although the premium is generally higher than that offered by standard insurers.

Q	Does my homeowner's insurance policy cover damage caused by a flood?
A	No. Homeowner's insurance excludes coverage caused by water damage – including the following: flood; surface water; waves; overflow of a body of water; sewer, drain and sump backup; and water below the surface of the ground. However, you can purchase a separate Flood Insurance policy to protect you against such loss. Contact First American for more information.

Q	Does the replacement cost of my house have anything to do with its market value?
A	Generally, no. The replacement cost of your house is an estimate of the cost to rebuild your house as it currently stands with 'same, like, kind and quality' materials. It includes adjustments for the current cost of labor and materials. It does not include the value of the land on which your house stands since land is not insurable. It does include the value of any improvements, upgrades or additions you have made to your house. Market value is simply the price the market is willing to bear for your house and the land on which it sits. While your house may have a replacement cost of $100,000, its market value may be $200,000 given its location. In this case, your house can only be insured for $100,000, its replacement cost. Conversely, you may have bought your house for $100,000, but its replacement cost is $200,000. In this case, your house should be insured for $200,000.

Q	Why would I, and do I need to, 'schedule' my jewelry on my homeowner's insurance policy?
A	Most homeowner's insurance policies contain a limit on the amount payable to you should your jewelry be stolen. Typically, this total limit per theft is $1,500. By 'scheduling' each item of jewelry on your policy, based upon either a purchase receipt or recent appraisal, in the event of a theft you would be covered up to each individual per item limit as listed on the policy. Additionally, by 'scheduling' your jewelry, you also get coverage for mysterious disappearance.

Q	How will the RMV calculate the 5% sales tax for a vehicle I recently purchased and plan to register in Mass.?
A	For any vehicle purchased through a licensed dealer, the 5% sales tax will be applied to the net purchase price of the vehicle, as listed on the purchase agreement or bill of sale. For any vehicle purchased through a private party (an unlicensed dealer), the 5% sales tax will be applied to either the purchase price or the NADA value, whichever is higher. The RMV calculates the NADA value at the time of registration using their software. First American can provide you with an estimate of your car's NADA value prior to registration.

Q	I bought a car from a private party and it has a current and valid Mass. inspection sticker. Do I have to get a new sticker?
A	Yes. The inspection sticker belongs to the owner of the car. It is not transferable to the new owner. You have 7 days from the date of registration to get a new sticker. Your failure to get a new sticker, and/or to continuously maintain a valid sticker on your car, will result in revocation of your registration by the RMV.

Q	My registration renews at the end of the month, but I haven't received the registration renewal application from the RMV yet. Why?
A	Typically, the RMV will not send out registration renewals to registrants who have any of the following outstanding items: parking tickets; moving violations; excise taxes; warrants and Fast Lane violations. Additionally, your failure to maintain a valid inspection sticker or to notify the RMV of a recent address change may prevent you from receiving your renewal application. First American can determine why you didn't receive your renewal and will assist you in completing an RMV-3 to renew your registration, once the outstanding items are cleared.

Q	Under what circumstances does the RMV require commercial plates on a vehicle?
A	Any pickup truck or cargo van whose load capacity exceeds 1 ton (2,000 lbs.). Any vehicle with more than 4 wheels on the ground. Any pickup truck or cargo van owned by a partnership, trust or corporation. Any vehicle used to transport tools, supplies, materials or equipment to and from job sites in the bed of the vehicle or on the top or side of the vehicle. Any vehicle which has business advertisements or business markings. Any vehicle used for hire to plow, used for hire to deliver goods for another, or used to deliver goods sold by oneself.

Q	I just bought a new car that has a passive alarm system that was installed by the manufacturer. Should I also get VIN etching on my windows?
A	You can certainly have your windows etched to compliment the passive alarm system. However, the anti-theft discount for a passive alarm system, or 20%, will apply and can't be combined with the 15% discount afforded for window etching.

Q	My teenager just received their Mass. learner's permit. When do I have to notify you to add them to my policy?
A	New drivers should be added to your policy as soon as they begin to drive the auto. Your failure to list an operator could result in the denial of a claim that involves optional insurance coverages.

Q	Can I appeal an accident surcharge?
A	Yes. If you believe you were not more than 50% at-fault, and/or there were extenuating circumstances giving rise to the accident, you may appeal to the Board of Appeal at the Division of Insurance. The law requires you to file an appeal within 30 days from your receipt of the Surcharge Notice - otherwise you lose your right to appeal. The filing fee is $50, and First American will gladly help in filing your appeal. It typically takes anywhere from 6 months to a year for your appeal hearing to be scheduled, and you will continue to be surcharged until the time of your hearing.

Q	How do I cancel my Mass. automobile insurance policy, or delete an auto from my policy?
A	The only way to cancel Mass. auto insurance is to surrender your license plates to the Registry of Motor Vehicles - the RMV will issue you a Plate Return Receipt. Even if you have sold your vehicle (signed the title over and physically given it to the buyer), as long as your plates are active, your insurance will remain active. First American can process these transactions for our clients at no cost, in our office while you wait.

Q	I had a DVD entertainment system installed in my SUV. Is it covered under my personal automobile insurance policy?
A	Electronic equipment that has been permanently installed in an auto in locations used by the auto manufacturer for the installation of such equipment is covered. However, if the equipment has been permanently installed in locations not used by the auto manufacturer, coverage is limited to $1,000. Excess Electronic Equipment Coverage can be purchased to increase this $1,000 limit, provided detailed receipts are submitted and an additional premium is paid.

Q	What is the difference between 'Part 1 - Bodily Injury to Others' and 'Part 5 - Optional Bodily Injury to Others'?
A	'Part 1 - Bodily Injury to Others' covers bodily injury to anyone injured by your auto, *but* *only for accidents that occur in Mass.* Injuries to either the driver of your auto or passengers in your auto are not covered under this Part. 'Part 5 - Optional Bodily Injury to Others' extends your coverage under 'Part 1 - Bodily Injury to Others' and includes coverage for accidents occurring outside of Mass., including the entire U.S. and its territories, and Canada. Injuries suffered by guests in your auto are covered under this Part.

Q	Why do I have to list the members of my household on my policy?
A	Your failure to list a household member or any individual who customarily operates your auto may have serious consequences – if the event of an accident, your policy may not pay benefits under the Optional Insurance coverage Parts and your policy may be cancelled for misrepresentation. If a household member does not have their own auto policy and/or their SDIP and rating class is not charged on another policy, and their SDIP and rating class would have increased your premium had they been properly listed as an operator, Mass. allows for claim payments to be withheld. Don't take that chance…call First American to review your own unique situation.