Events You Should Notify Your Insurer About

Insurance covers every aspect of life, from homeowner’s insurance to life, car, property, health, business and everything else. When events occur in life that can affect insurance premiums, it can be tempting to avoid communicating these to the insurance company because of the additional financial burden that the higher premiums cause. But all insurance policies contain the requirement of informing the insurer of any events or occurrences that could affect the cost and terms of the coverage. Not to do so may render the policy void.

Here are some of the common events that are either concealed from insurance companies or which are overlooked as not being relevant to the coverage:

In many cases, an insurance claim may be filed and the company will know about the event. But in some instances no claim may be raised and then it is incumbent upon you to inform the insurer.

In the case of homeowners insurance, events such as remodeling or major renovation or room additions change the value of your home. The insurance company should be informed about this and the policy modified to reflect the increased value so that if a claim should be raised, the policy provides adequate coverage.

In the case of business insurance, things like a need to increase stock or inventory levels or an increase in turnover must be reported to the insurance company so that your coverage can be modified to reflect the possibility of higher loss due to accident, theft or disruption of commercial activities.

Similarly, events like hiring new people should be conveyed to the insurer so that the health insurance and workmen’s compensation policies can be revised as needed.

Car insurance is an area where many events that can affect insurance occur. An accident that causes damage or injury may be covered by the other party’s insurance but you should inform you insurance company also, as the value of the car may be changed and the injuries could have long term health consequences.

Not all events result in increased insurance premiums. Many, such as installing a security system at the home or place of work, increased fire protection, putting anti-theft devices in your car or stopping smoking or excessive alcohol consumption can reduce what the insurer sees as risk factors and result in lower insurance costs.

The basic principle to follow is inform the insurance company about any events that could affect the policy either in terms of leaving you without inadequate coverage or affecting the coverage that exists. And if you are not sure about whether the insurer should be informed about a particular event, the policy should be “when in doubt – inform.”

An insurance company that sees that you are diligent about informing them about events that could affect your insurance coverage, even if they do not, will go out of its way to work with you when you do make a claim.

Weird, Gross and Ridiculous Claims

Abby Normal’s brain melts down in lab mishap

In May this year a freezer malfunctioned at a Harvard-affiliated hospital that oversees the world’s largest collection of autistic brain samples, damaging a third of the scientifically precious specimens. The Harvard Brain Tissue Resource Center is the largest and oldest federally funded “brain bank’’ in the United States. It provides thousands of postmortem brain tissue samples annually to researchers across the nation.

Covered or not covered? The exact cause of the meltdown is still under investigation. If it turns out that there was a “malfunction” of the refrigeration unit, this type of loss could be covered under an Equipment Breakdown Policy. The big question, of course, is the damage to the contents in the refrigerator. The EB policy does pay for resultant damage to the property but the problem is placing monetary value on the “spoiled” brains AND the business income resulting from the loss of the brains in the research process. This claim will probably fall through the cracks but maybe it will inspire Mel Brooks to produce another Young Frankenstein movie.

Hall of Shame award goes to NJ woman who sues 11 year old Little League player

A New Jersey woman who was struck in the face with a baseball at a Little League game is suing the young catcher who threw it. Elizabeth Lloyd is seeking more than $150,000 in damages to cover medical costs stemming from the incident at a Manchester Little League game two years ago. She’s also seeking an undefined amount for pain and suffering.

Lloyd was sitting at a picnic table near a fenced-in bullpen when she was hit with the ball. Catcher Matthew Migliaccio was 11 years old at the time and was warming up a pitcher. The lawsuit alleges Migliaccio’s errant throw was intentional and reckless, “assaulted and battered” Lloyd and caused “severe, painful and permanent” injuries.

An attorney representing the boy's family says the count alleging negligence and carelessness is covered by homeowner's insurance, but other counts are not.

A second count alleges Migliaccio’s actions were negligent and careless through “engaging in inappropriate physical and/or sporting activity” near Lloyd. She continues to suffer pain and anguish, incur medical expenses and has been unable to carry out her usual duties and activities, the lawsuit says. And Lloyd’s husband, in a third count, is suing for the loss of “services, society and consortium” of his wife.

Covered or not covered? The count alleging negligence and carelessness is covered by homeowner’s insurance but the other counts are not. Little League has denied any coverage. A spokesman for Little League said each local league is required to have accident insurance, but that only covers coaches, players, and concession stand workers but not cover spectators.

Matthew’s parents said they would love to beat the charges in court, but it could cost tens of thousands of dollars and they also don’t want to put their son and other kids on the team through all the questions and depositions a trial would bring.

The real Hall of Shame winner is the Lloyd’s ambulance- chasing lawyer.