The Insurance Guy: Who Doesn't Love Homeowners Insurance?

By David BissailloniBerkshires Columnist
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In recent columns, we touched upon the importance of insuring buildings at proper limits, why it makes sense to spend a bit of time reviewing your auto and homeowners insurance, and what discounts and benefits are now available in a very competitive Massachusetts auto insurance marketplace. 

This month, I want to talk a bit about one of the products in the insurance world that I had always thought was actually a pretty good deal. Welcome to the HO-3 policy.

More than just because the bank tells you that you must have a homeowners policy when you carry a mortgage, the homeowners plan is a smart way to manage risk by paying pennies on the dollar to protect your assets. First and foremost, the policy steps in if there is damage to your home that occurs from a few of the obvious causes of loss.

Most people would agree that damage from a fire would be the first job that a homeowners policy would perform. And that is true. If your home suffers partial or total damage from a fire, there is no better way to make you whole again than by having a properly written homeowners policy in place. And whether that premium is $500 or $1,200, if it affords you a couple of hundred thousand dollars in protection, it is a very good return on your premium. Not that I would wish a fire on anyone.

Wind damage is also typically covered by a homeowners policy and we know some of the damage that wind has done lately. Typically, water damage is not covered unless you have a separate flood policy, which can be a confusing topic for consumers. (We will cover water and flood in a separate column soon). However, you can have limited coverage added to your policy that may reimburse you for backup of water in a basement. Again, you really should consult your local agent.

The homeowners policy will also provide coverage to other structures such as detached garages, sheds, and other buildings that you may have on your property. It may also provide you, at the time of a loss, with compensation to provide temporary food and shelter that your family may need if you cannot remain in the home. These are benefits that become very important if you are ever involved in a serious loss at your home.


The homeowners policy also provides the insured with liability protection in case there is bodily injury or property damage done to a third party. This is where legal bills and damages may be paid from in the case of someone getting injured on your property, or being bit by your dog, or accidentally hit with a stray golf ball from your hooked drive at the golf course. There is also a medical payment portion of the policy where small medical bills can be paid to injured parties. The homeowners policy can be a very powerful tool when things hit the fan.

You may notice that there is an increase in the pricing on many homeowners policies, but it still remains a very good value for the consumer. There are a few reasons for the increase in pricing, primarily the fact that 2011 was a record year for catastrophes throughout the world. According to the Insurance Information Institute, worldwide events caused $350 billion in economic losses, shattering the 2005 record of $230 billion. The other primary reason is that the cost of rebuilding homes has gone up. According to Travelers Insurance, in the last year paint has gone up 4.5 percent, copper pipe up 19 percent, wire and cabling up 19.4 percent, insulation up 12.3 percent, and asphalt shingles up 8.3 percent.

But, there remain great deals out there if you are willing to spend some time and work with a local independent insurance agent. Happy home owning.

Dave Bissaillon dabbles in real life while working daily as an account executive at Smith Bros.-McAndrews Insurance Agency in Adams. His occasional column will touch on insurance and other fun stuff.

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Lanesborough Board Looks to Pontoosuc Island Safety and Cleanup

By Breanna Steele

LANESBOROUGH, Mass. — The Friends of Pontoosuc cleaned up the two islands on the lake and shared concerns of what they saw.

Kevin McGinnis, Friends board member, spoke to the Select Board last week about how the cleanup went and erosion the group discovered.

"We particularly wanted to go out and take a peek at the islands and it was seven bags of garbage and a lot of refuse from geese that we actually removed from both islands," he said. "The Keeler Island, particularly in Lanesborough, that had a Sheetrock bucket full of nails that we actually removed from there, too, and that was from probably multiple years of pallet burning out there."

McGinnis added that there is significant erosion on the east side of the islands, facing the deepest part of the channel.

He said Lee Popovich, who knows horticulture, suggested plantings along the edges to hold the soil and filter runoff that may help with the E. coli outbreaks on the lake.

"These are things that we can discuss on trying to keep those islands in enjoyable shape, and for people to be able to enjoy," McGinnis said, by reducing risks such as geese deposits, and plantings that can help filter some of the debris.

"We can't control how hard our rain comes, but we can mitigate some of that filtering processes to keep bacteria count lower. Because if you notice, pretty much the E. coli breakouts that we do have are right after heavy rain."

He wants to help keep the islands safe and healthy. He introduced the cleanup group, saying the cleanup was enjoyable and those who volunteered help make a difference.

"Look forward to in the future bringing more information back, and with a lot of moving parts to talk about mitigating erosion and certain things," McGinnis said. "But it's something that we all need to be kind of aware of, and this body of water is so enjoyable, and we definitely want to try to keep it as healthy as possible, and keep control or keep an eye on certain things."

Select Board member Jason Breault asked about what the insurance is for the islands to which Town Administrator Gina Dario responded that the island is a public park, so it's covered the same way as other town land, like Glaston Park. There's no added liability.

Breault then asked from a patrol aspect what that means.

"Obviously, if we have an underage drinking party, we have no mechanism to address it, or if there's a medical emergency on that area, we would have to get a boat from Pittsfield, so obviously we have some sort of a delay there," Police Chief Rob Derksen said. "That's the only concern, I guess, is it's a park that we can't patrol and we can't regulate on a regular basis," 

Breault wondered if they could get funding for a boat down the line but Derksen said it would be difficult with his small force.

"That's pulling the thread on a sweater because then I have to have certified boat officers and, I mean, so that's training that's time away and then I would have to be able to actually put them on the boat, which again as you've heard me say a million times, most of the time I have one officer on duty so I can't split them in half and put half on a boat, half in a car, so it would be a challenge."

He added that the lake is patrolled by the state Environmental Police but with recent funding challenges, it's not that much.

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