Depending on the type of boat you own, routine maintenance chores may include taking the boat out of dry dock, applying bottom paint, waxing, tuning the motor, and scouring all surfaces. Any seasoned captain knows the ocean can be unpredictable, so in the midst of these labor-intensive tasks remember to take some time to review your insurance policy.

Although most people realize the importance of adequate boating coverage, some mistakenly assume that it is provided by their homeowners insurance.

While a homeowners policy does offer some protection, there are many limitations and restrictions of which boat owners need to be aware. A homeowners policy may provide coverage on a boat, varying according to craft size and restrictive usage, but generally speaking, is as follows:

• Seagoing dangers are usually not covered on a homeowners policy. This may include collision, sinking, capsizing, etc.
  
  
• Property insurance sets watercraft sublimits in the vicinity of $1,000-$1,500.
  
  
• If a boat is damaged by weather elements, such as wind or hail, it must have been in a completely enclosed building to be protected under property insurance.
  
  
• Theft will not be covered if it occurred somewhere other than on the insured's property.
  

The restrictions and limitations on material damage to the boat, as provided by homeowners insurance, are many. And what about personal injury or property damage liability? If the injuries or damage resulted from the following, they will not be covered:

• The insured's inboard motorboat.
  
  
• The insured's rental of an inboard motorboat whose horsepower exceeds 50.
  
  
• Use of an outboard motor that has horsepower greater than 25.
  
  
• Sailboats 26 feet or longer the insured either owns or rents.
  

With such restrictions, many boaters have sought an insurance solution. One such solution could be a boat owners policy, which can offer more extensive coverage on property and liability damages, as compared to the average homeowners policy. When shopping for a boat owners policy, be prepared to answer such questions as the operator's age, experience level, and driving record. The age, condition, and boat size may also be questioned. Taking a moment to provide this information is one task that can save you a lot of sweat and hassle down the road, and is well worth your time and effort. Give us a call. One of our qualified insurance professionals will be happy to discuss your boat owners insurance options.

Although the word "accident," by definition, means "unintentional," many accidents are the result of negligence by at least one driver. Consequently, higher insurance costs exist for everyone. These higher premiums particularly affect individuals who may be considered at a greater risk of having an accident. Here's a quick look at some of the things that may affect your automobile insurance costs:

Age Matters. In order to arrive at equitable pricing, automobile insurers spread the cost of accidents over the insured population. Since younger drivers account for a greater proportion of accidents than older drivers (Insurance Institute for Highway Safety (IIHS) 2004), premium rates are generally higher for drivers under age 25. However, elderly drivers have the second highest rate of fatal crashes (IIHS, 2004), which also often contributes to higher insurance premiums.

Points for Safe Driving. Most automobile insurers use a safe driver rating plan, or some variation of it, to reward drivers who have clean driving records, and penalize those who have a history of accidents and/or violations. Thus, the driving records of operators listed on your policy directly affect your automobile insurance premiums.

Where You Live. Population density and the number of vehicles on the road are two other important factors that help determine your insurance costs. As people and cars vie for limited space on the road, accidents are more likely to happen. Territories (a town, a large city, a county, or some defined geographical subdivision) are rated based on the losses, or "risk" profiles, for such areas. Premiums are weighted by the record of insurance losses, such as accidents, theft, and vandalism, as well as the history of police enforcement of traffic laws in each given territory.

Your Vehicle. Certain cars may cost more than others to insure, depending on a variety of factors. Vehicles will generally be more costly to insure if they: are more expensive; are of a make or model that carry a high theft risk; carry lower safety ratings; or cost more to repair. A common question for many policyholders is, "Why isn't my policy premium going down as my car gets older?" Premiums tend not to decrease because liability concerns remain the same regardless of the age of your car; furthermore, the costs to fix an older car can be comparable to the expense of repairing a newer vehicle.

In summary, it is the driver's record, his or her vehicle, and its use that set the basis for calculating auto insurance premiums. Some of these factors may or may not be in your control. To understand what is in your control—and how to use it to your advantage—feel free to give us a call. One of our qualified representatives will be happy to address any of your auto insurance concerns.

The job of homemaker can be very rewarding, and the care a stay-at- home parent provides is invaluable to his or her family. But when it comes to calculating life insurance needs, many families believe that obtaining coverage for the main breadwinner is sufficient. They often fail to realize that the premature death of a stay-at-home spouse would not just be a devastating emotional blow to the family; it could also cause significant financial hardship for the children and spouse left behind.

Because homemakers do not earn a paycheck, estimating the economic benefit of their contributions to the family can be tricky. What is clear is that the cost of replacing the services a stay-at-home parent provides without any direct compensation can be substantial. Exactly what those costs would be depends on the family's circumstances: if the children are younger, child care costs must be budgeted; if the other spouse works long hours and is unable to take over many of the responsibilities at home, the family may need to factor in the cost of hiring house-cleaners and gardeners.

The first step in calculating how much life insurance coverage a family should purchase for a stay-at-home spouse is to consider how much it would cost to pay others to perform tasks the homemaker currently handles.

Here are some examples of jobs a stay-at-home spouse typically does on a regular basis, and estimated market wages for these jobs.¹

In addition to having to pay for help in these areas, a family that has lost a parent may find that other expenses go up because of the time pressures on the surviving spouse. The family may dine out or buy expensive convenience foods more frequently than when there was a parent at home to cook, and a working spouse generally has less time than a homemaker to devote to shopping for bargains on groceries, clothing and other items.

Clearly, replacing the contributions of a homemaker and caregiver would be very expensive indeed, especially considering the number of years it takes to raise a family. All told, the economic benefit provided by a stay-at-home parent is estimated to be worth $70,000 a year—or $1.4 million over 20 years.

It therefore makes sense to take out a life insurance policy not just for the family's main earner, but also for the spouse who works at home. If something were to happen to a stay-at-home parent, life insurance could help the family through the difficult period of adjustment.

Proceeds from a life insurance policy could be used to cover final expenses, and allow the surviving spouse to take a leave of absence from work to spend time with the children. A lump sum could also be helpful in clearing debt. In some cases, the policy money will be needed to pay for child care or housekeeping services after the surviving parent returns to work. In other cases, it may be possible to save at least a portion of the life insurance proceeds to pay for college.

Losing a parent to death is a devastating blow to a family. But financial hardship as a result of that loss is not inevitable. Life insurance coverage can help ensure that the surviving parent would not be forced to work long hours or take a second job in order to pay the bills, but could, instead, focus on caring for the children.

If you are uncertain about what the specific life insurance coverage needs of your family might be, it may help to make a list of the services your family would need as a one-parent household, and the cost of those services. The fact finder to the right will help you calculate your potential expenses.

It is important to assess your family's specific requirements, and prepare accordingly. With proper life insurance coverage, you can rest easy knowing your family's financial needs will be met well into the future.

¹ National Compensation Survey, U.S. Department of Labor, Bureau of Labor Statistics, July 2002.

Create a fire escape plan for your home

Unfortunately, not all fires can be prevented. However, you can prepare for an emergency by developing and practicing an escape plan. Be sure to include at least two escape routes, if possible, and designate a spot outside where everyone can gather for a headcount. You may want to assign someone to assist children and elderly family members. They may be at the greatest risk, since they may have the most difficulty escaping on their own, and their lungs may be the most susceptible to damage from smoke and fumes.

If a fire occurs, you may have only seconds to react. Preventing potential fire hazards and preparing an escape plan are keys for survival.