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Steve Brooks Insurance Services eNewsletter
Phone: 800-915-3090 |
"Safeguarding the interests of you and your family"
October 2009 |
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Dear Friends,
We trust this eNewsletter finds you and your family well and in good health.
As the weather throws us some curveballs, now is a great time to make sure your home and vehicles are all in good shape, and properly insured. Many of our clients have taken us up on our no-obligation insurance review. If you haven't yet, we invite you to call us or come by the office so we can help you determine what's best for your specific situation.
Halloween is just around the corner and we want everyone to enjoy the holiday safely. When driving, please watch out for children trick-or-treating in the neighborhood. We've included some great Halloween safety tips in this month's eNewsletter.
We also bring you articles on the dangers of Driver Distraction, the Teen Car Crash study, Understanding Residential Reconstruction Costs, and more!
Thank you for your valued business.
With kind regards and thoughts of safety,
Steve M. Brooks, CIC, CPIA
Founder/President
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| Driver Distraction Costs 6,000 Lives a Year |
Opening a government meeting on auto safety, the Obama administration reported Wednesday that nearly 6,000 people were killed and a half-million injured last year in vehicle
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crashes connected to driver distraction, a striking indication of the dangers of using mobile devices behind the wheel.
The Transportation Department was bringing together experts over two days for what it's calling a "distracted driving summit'' to take a hard look at the highway hazards caused by drivers talking on cell phones or texting from behind the wheel.
"You see people texting and driving and using cell phones and driving everywhere you go, even in places where it's outlawed, like Washington, D.C. We feel a very strong obligation to point to incidents where people have been killed or where serious injury has occurred,'' LaHood said.
Hours before the start of the meeting, Transportation officials said in a research report that 5,870 people were killed and 515,000 were injured last year in crashes where at least one form of driver distraction was reported. Driver distraction was involved in 16 percent of all fatal crashes in 2008.
The panel of government officials, safety advocates, researchers and lawmakers hoped to develop a consensus on the roadway hazards and hear warnings from young adults who caused car accidents because they were texting while driving.
The new data underscored the major problem of distractions involving young drivers. The greatest proportion of distracted drivers were those age 20 and under. Sixteen percent of all under-20 drivers involved in fatal crashes were reported to have been distracted while driving, the government said.
Eighteen states and the District of Columbia have passed laws making texting while driving illegal and seven states and the district have banned driving while talking on a handheld cell phone, according to the Insurance Institute for Highway Safety. Many safety groups have urged a nationwide ban on texting and on using handheld mobile devices while behind the wheel.
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| Study: Dog Bite Claims Up 8.7% |
Man's best friend is sinking its teeth into homeowners insurance costs.
Dog bites account for one-third of all homeowners insurance liability claims,
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costing $387.20 million in 2008, up 8.70 percent from 2007, according to the Insurance Information Institute (I.I.I.).
An analysis of homeowners insurance data by the I.I.I. found that the average cost of dog bite claims was $24,461 in 2008 (the most recent figures available) down slightly from $24,511 in 2007. Since 2003, however, the cost of these claims has risen nearly 28 percent. Additionally, the number of claims has increased 8.89 percent to 15,823 in 2008 from 14,531 in 2007.
"The rise in dog bite claims over the course of the past five years can be attributable to the increased medical costs as well as the size of settlements, judgments and jury awards which have risen well above inflation in recent years," said Loretta Worters, vice president of the I.I.I.
More than 4.5 million people in the U.S. are bitten by dogs annually, and nearly 900,000 of those - half of them children - require medical care, according to the Centers for Disease Control and Prevention (CDC). More than 31,000 Americans needed reconstructive surgery after dogs attacked them in 2006, center figures show. With more than 50 percent of bites occurring on the dog owner's property, the issue is a major source of concern for insurers.
There are three kinds of law that impose liability on owners:
Dog-bite statute:The dog owner is automatically liable for any injury or property damage the dog causes, even without provocation.
"One-bite" rule: In some states, the owner is not held liable for the first bite the dog inflicts. Once an animal has demonstrated vicious behavior, such as biting or otherwise displaying a "vicious propensity", the owner can be held liable. Some states have moved away from the one-bite rule and hold owners responsible for any injury, regardless of whether the animal has previously bitten someone.
Negligence laws: The dog owner is liable if the injury occurred because the dog owner was unreasonably careless (negligent) in controlling the dog.
In most states, dog owners are not liable to trespassers who are injured by a dog. A dog owner who is legally responsible for an injury to a person or property may be responsible for reimbursing the injured person for medical bills, lost wages, pain and suffering and property damage.
"Although some people purchase dogs for the purpose of guarding their homes, deadbolt locks and home security systems are safe burglary deterrents and that will often earn you a discount on your insurance premium," said Worters.
A single lawsuit -- even if won -- can end up costing hundreds of thousands of dollars, Worters said.
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Halloween Safety Tips
Help Your Children Have a Safe and Fun Halloween
Most people think of Halloween as a time for fun and treats. |
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However, roughly four times as many children aged 5-14 are killed while walking on Halloween evening compared with other evenings of the year, and falls are a leading cause of injuries among children on Halloween.
Parents can help prevent children from getting injured at Halloween by following these safety tips from the American Academy of Pediatrics.
Children should:
- Go only to well-lit houses and remain on porches rather than entering houses.
- Travel in small groups and be accompanied by an adult.
- Have their names and addresses attached to their costumes.
- Bring treats home before eating them so parents can inspect them.
- Use costume knives and swords that are flexible, not rigid or sharp.
- When walking in neighborhoods, use flashlights, stay on sidewalks, and avoid crossing yards.
- Cross streets at the corner, use crosswalks, and do not cross between parked cars.
- Stop at all corners and stay together in a group before crossing.
- Wear clothing that is bright, reflective, and flame retardant.
- Consider using face paint instead of masks. (Masks can obstruct a child's vision.)
- Avoid wearing hats that will slide over their eyes.
- Avoid wearing long, baggy, or loose costumes or oversized shoes (to prevent tripping).
- Be reminded to look left, right, and left again before crossing the street.
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Understanding Residential Reconstruction Costs
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Although we are always mindful of housing values, construction activity and other related trends, Private Client Group adjusts its coverage limits based on the costs to rebuild after a loss. Our experience has shown that rebuilding figures often are significantly higher than the costs associated with building a new home.
The following points may be helpful in
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understanding this distinction:
Rebuilding versus new construction. Newly built homes usually do not include features added after occupancy, such as interior decorating, window treatments, expensive electronic systems and home theaters. Our promise is to rebuild a policyholder's home to the same specifications of the original at the time of the loss. Doing so can lead to higher costs due to high-end custom features and the use of materials that are difficult to replace.
Unreported renovations. Homeowners spent $276 billion on home renovations in 2008; 30% of that amount ($83 billion) is attributed to high-net-worth households.1 Two-thirds of these home improvements - from expensive electronic systems to ornate window treatments - are not reported to insurance companies but would be covered under a replacement cost contract. Therefore, our annual renewal factor contains a small adjustment for this occurrence.
Building in bulk. Developers buy a large parcel of land, subdivide it into building lots and turn a profit on both the land and the home. A contractor rebuilding a single home must make all his profits from a single source. Additionally, when building several homes, materials are bought in bulk at substantial savings.
Increases in labor and material costs. Labor rates in the construction industry increased by 4.5% in 2008, while materials used in residential construction increased by 4.9%.2 Costs increase even more when rush orders and additional labor are necessary to rebuild a home in a short time frame.
Resale value versus replacement cost. The average resale value for homes in the U.S. dropped about 11% in 2008.3 However, the cost to replace a damaged home went up. According to Xactware, a supplier of software used to process 80% of U.S. property claims (used by the six largest insurance carriers), the cost to repair a property after a loss increased 5.8% in 2008.4
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| Teens With Own Cars Have More Crashes, Study Finds
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Parents beware: Giving in to teens' demands for their own cars can have dangerous consequences.
Teenagers with their own cars or free use of one are much more likely to get in crashes than those who share a car. And crashes are much less common among teens whose parents set clear driving safety rules.
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The findings are in two studies by researchers at Children's Hospital of Philadelphia and funded by State Farm Insurance Co. They are in the October issue of Pediatrics.
The researchers say the findings can help parents keep their kids from becoming a grim statistic: Traffic crashes are the leading cause of death for U.S. teens, killing more than 5,000 each year.
Getting a driver's license and car are often viewed as rite of passage for U.S. teens, and many parents underestimate the risks.
More than 7,000 people nationwide were killed in crashes involving teen drivers in 2007, government data show. More than 3,000 of these deaths were teen drivers, and more than 250,000 teen drivers were injured.
"Families need to know that driving is different'' from other steps toward independence,said Dr. Flaura Koplin Winston, the study's lead author. "Just at the time their teen is pulling away, they need to get back involved to spare them heartache.''
The research is based on a nationally representative survey of more than 5,500 teens in grades nine through 11. Students at 68 high schools answered questionnaires in 2006.
More than 2,000 students who reported driving on their own were the focus of one study; 70 percent said they had their own cars or were the main drivers of cars they used.
Winston said it's alarming that so many kids have their own cars or feel that they have free use of one. She said that freedom can lead to "a sense of entitlement about driving'' that may make them less cautious.
Among these "main'' drivers, 25 percent had been involved in crashes, versus just 10 percent of teens who shared driving access. Winston said the lower crash rate doesn't reflect less driving time, but is likely due to having to ask for the car keys, which helps parents monitor their kids' driving.
Compared with teens whose parents were uninvolved, kids who said their parents set clear rules and monitored their whereabouts without being overly controlling had half as many crashes and much better driving habits.
These teens were 71 percent less likely to drive while drunk and 30 percent less likely to use a cell phone while driving than kids with uninvolved parents.
Debby Hendricks of Hatfield, Pa. made her daughters wait until age 17 to get their licenses, and gave them lots of driving practice beforehand.
The girls, aged 17 and 19, also share a family car, and can't "just grab the keys and leave'' without saying where they're going and with whom, Hendricks said.
So far so good -- neither girl has been in an accident, although the younger one, Leslie, has only had her license for a few months.
Leslie considers herself a safe driver, but adds, "I probably do underestimate the risks.''
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Kourtney Kardashian's home broken into, $80,000 worth of jewelry stolen
Thieves broke into reality star Kourtney Kardashian's southern California home this past weekend and stole tens of thousands of dollars worth of jewelry, according to reports. |
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Kardashian, a socialite best known for the reality shows "Keeping Up with the Kardashians" and "Kourtney and Khloe Take Miami," went to dinner with boyfriend Scott Disick about 7 p.m. Saturday.
She returned about 8:30 p.m. to find her Calabasas townhouse ransacked, according to TMZ.
Among the items the pregnant starlet reported missing were her $30,000 Cartier watch, Disick's Rolex and various pricey diamond pieces.
Thieves also took off with Kardashian's vintage jewelry left to her by her late dad, Robert Kardashian, a prominent lawyer who helped defend O.J. Simpson in his murder trial, TMZ reported.
The L.A. County Sheriff's Dept. is investigating and so far puts the loss at $80,000, according to People.com.
Kardashian, whose family owns several high-end boutiques, is the latest young starlet to be victimized by burglars.
In the last 10 months, thieves have broken into the homes of Paris Hilton, Lindsay Lohan, Audrina Patridge, Hayden Panettiere and Rachel Bilson, People.com reported.
Kourtney's sister Khloe Kardashian married Los Angeles Laker Lamar Odom in a high-profile wedding in Beverly Hills last month.
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| STEVE BROOKS INSURANCE SERVICES |
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Steve Brooks Insurance Services, Inc. is a full service, Independent Insurance Agency, offering California Automotive Insurance, California Homeowners Insurance, as well as Renter, Condo and Earthquake coverage.
We have access to the products and services of over 20 A+ Rated Insurance Companies.
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