Newsletter

"Having had such a positive experience with our business insurance, I also entrust all of my personal insurance needs with EHL and continuously recommend that my peers do so as well."

Brian Edgren President EHL Insurance
Welcome to edition #10 of our client newsletter. We have received excellent feedback from the first nine issues. Some of you have asked for more specific risk management information. Given that we are now in the throws of winter, it makes sense to look at issues surrounding windstorms and falling trees. And, with the proliferation of home businesses, any season is a worthwhile time to review factors that people do not often consider when our personal and business lives intersect. Last, please check to see if your name was drawn for the grand prize in our referral reward program! Brian Edgren, President EHL Insurance
	By Jeff Ogard
What coverage do I have when a tree falls on my house or property? Who is liable when a tree on one location damages a structure on a neighboring lot? In advance of the tree actually coming down, what should I be concerned about if a tree is dead, diseased, or appears to otherwise be threatening a structure? What about trees on or near a bluff that are blocking my view? These are questions that many property owners ask. The circumstances with each claim are different, and certainly policy language differs between insurance companies. However, the following guidelines generally hold true. Most homeowners and dwelling fire policies provide coverage for damage caused by wind, and by falling objects. So, if a tree falls on your insured building, there generally is coverage for the damage to that building whether the wind knocked the tree over or not. The claim payment is subject to whatever deductible you have chosen (the higher the deductible, the lower the premium). The amount of damage a tree can do to a structure obviously varies with the size of the tree and where it hits. The range in damage is potentially huge. We have seen claims where enormous trees with huge branches come through the roof, and continue down through the upstairs floor causing damage on the first floor. Claims of this magnitude can exceed $100,000, depending on the home. When the tree does nothing more than knock a gutter off the roof, the total cost of repair may not even reach the deductible, and therefore there is no claim. If total damage is slightly over the deductible, it is a good idea to talk to us prior to turning in a claim.  Property policies are surcharged based on the number of claims in a five year period without regard to severity of damage. Therefore, it is generally a good idea to self insure potential claims that are barely over the deductible. (Most people are disappointed if the premium increases exceed claims payment.) [click on the picture for the REAL story behind this photo!] Policies vary, but most do not pay to remove the fallen tree from the premises, nor are they likely to pay for damage done to landscaping such as trees, shrubs and flowers. However, most people are able to have trees removed for no cost when they find a friend with a chain saw who is more than pleased to come pick up their “free firewood”. When the tree “belongs” to my neighbor, and “his” tree falls on my house, doing significant damage, why should I have to use my insurance? Why won’t his insurance pay for it? This actually is more of a legal question than it is an insurance question. If your neighbor can be proven to have been negligent in regard to “his” tree falling on your house, then the liability coverage on his insurance will pay for your damage, and then he is the one with the claim to be surcharged. These situations are very rare. Just because someone had a tree fall does not equate to negligence in most jurisdictions. The best way to deal with this question is before the tree falls. If your neighbor has a tree that is dead, diseased, leaning toward your home, or otherwise posing a threat, pay for a licensed arborist to come inspect it. If the arborist agrees the tree is unsafe, talk to your neighbor about having it removed. Sharing the cost between neighbors can create a “win-win” situation in that you have better peace of mind for having the danger removed, while helping him avoid a liability exposure. If your neighbor refuses to cooperate even if you are willing to pay the entire cost, then you may want to send your neighbor a certified letter, return receipt requested, along with a copy of the arborists report. Let him know that should his tree damage your home, you will bring an action against him for all damage you incur should the tree fall. Also, let him know that you are still willing to participate in the cost of removing the tree should he change his mind. Preventing the damage is always the best alternative, as there seems to be no fool proof way to guarantee a transfer of liability to the neighbor. Many people are privileged to live on medium to high bank waterfront, or to otherwise have view property because the lay of the land slopes away quickly from their home. As trees grow on or near the slope, views are compromised, and the initial inclination is to remove the tree completely. A major benefit of having a healthy tree on or near a bluff is the amount of ground water they “drink”. Removing trees removes a source of mitigating excess water. This can cause a bluff to give way causing a landslide that could compromise the integrity of the home’s yard or even foundation. It can also create an exposure to someone living below. In these cases, most arborists will recommend pruning the lower branches that block the view, but leaving the tree alive to continue its job of stabilizing your hillside as much as possible. Vegetation on a hillside is a sign of stability. Exposed sand and dirt suggests continual sloughing, suggesting a more severe exposure to landslide. The purpose of this article is not to provide legal or “botanical” advice. Rather, we hope to stimulate questions that will protect and benefit you as you address these questions with trusted advisors in their various areas of expertise. When it comes to advising on specific matters of risk, we hope we have earned, or are in the process of earning a role as one of your trusted advisors in the protection of your family and assets.
Brian Edgren	By Jeff Ogard
Brian Edgren, of our Poulsbo office, is the President of EHL Insurance and has been with our company since 1984. Brian is a graduate of North Kitsap High School and has a BA in business from Western Washington University. He currently is licensed in Property, Casualty, Life and Disability in the states of Washington, Alaska, Idaho,  Montana, Oregon, California and Nevada. A respected risk advisor and insurance professional, Brian holds the CIC (Certified Insurance Counselors) designation. An active member of our community, Brian is a former president of the Greater Poulsbo Chamber of Commerce, he is a member of Poulsbo North Kitsap Rotary Club and has served on the board of the Poulsbo Historical Society.  Brian lives in Poulsbo with his wife Cathy. Their two children, Kelsey and Eric, have settled in Montana having completed their education there. In his free time Brian enjoys water and snow skiing, fishing, golfing, surfing, biking and hiking.
Katie's Comforters Guild	By Jeff Ogard
The story of Katie Gerstenberger’s life and legacy continues to grow. She was treated at Seattle Children’s Hospital where she bravely battled cancer during 2006 and 2007. During her time in the hospital Katie received literal comfort from having a comforter with her that her mother, Karen, had made. The death of a child is one of the most agonizing experiences a family can face. EHL is extremely proud of the Gerstenberger family for the incredibly creative, helpful and positive way they have responded to the loss of their beloved daughter. The formation of “Katie’s Comforters Guild” is one such example. The guild is a group of people who bring comfort to sick children by making handmade blankets for them. The group welcomes donations of quilts, as well as knit, crocheted and fleece blankets, provided they are brand new. Click here for more information on Katie’s Comforters Guild In addition to making comforters, gifts can be made to help with the purchase of materials for making comforters. Gifts can also be made to the Katie Gerstenberger Endowment for Cancer Research at Seattle Children’s Hospital. For more information, please see www.katiegerstenbergerendowment.blogspot.com.
Are there any activities taking place at your residence that could be construed as a business? A business is typically defined as an activity that generates a profit or that has the potential to generate a profit. It can also include any activity where money changes hands, or where services are bartered. If you answered this question affirmatively, does said “business” operate from your house, or from another building on your property? Most homeowners policies restrict coverage for business operations. Should someone coming to your house for the purpose of taking a music lesson or to board their horse injure themselves on your property, it is likely that you will have no coverage for this claim. If any part of your residential premises is rented to another party, we need to talk. The same concern holds true if you decide to use an automobile or boat for a business or for-profit reason. We are aware of a situation (not an EHL client) where a detached building burned to the ground due to a non-business cause of loss; yet coverage was denied because the building was used in part for business purposes. The key is maintaining effective communication with your professional risk advisors. Please let us know of your plans before they commence, and allow us the privilege of designing a risk management plan, including insurance, that will eliminate unfortunate, unintended consequences.
Thank you for recommending EHL to your friends and family! For each person or family you refer to us, we will send you $10 in gasoline gift cards, and enter you in our drawing for more substantial rewards. Being that we are now into the “new year”, we have the results of two drawings to announce. For those making a referral to EHL in the last 60 days, our $100 Visa gift card winner is Charles Peach. For calendar year 2010, our grand prize winner of a $500 Visa gift card is Lawrence Johnson. And, Katie’s Comforters Guild is also receiving a $50 contribution from EHL on behalf of our clients for the great work they are doing.