What you can do to safeguard your home and family
Published: August 2013

There’s no telling whether the rest of this hurricane season will bring anything like Superstorm Sandy, which flooded more than 150,000 homes, killed more than 140 people, and left about 8.5 million homes in 20 states without power. A relatively minor storm can also cause major damage if it includes high winds, heavy rain, or tree-snapping ice or snow.

Even a simple blackout can happen at any time and last for days. More than a half-million New Jersey residents were still without power two weeks after Sandy. And if you think most home-insurance policies cover disasters, think again: Flood insurance is just one of the “extras,” assuming it’s available in your area.

This report lays out the essentials you’ll need to help protect your home and the people in it before disaster strikes. (Read “Lessons Learned From Superstorm Sandy” for more information on disaster preparedness.) Here’s where to start:

Protect people and property
Damage from a neighbor’s tree is usually covered by your insurer, not your neighbor’s.

Cover windows properly. Experts used to recommend taping windows to limit breakage to a few large pieces, rather than many smaller ones. But small and large pieces can be equally deadly. A safer bet: Keep windows shut and close blinds, shades, and drapes. Longer-term, consider impact-resistant windows or hurricane shutters (about $40 per square foot), which might also net you an insurance discount.

Secure outdoor items. High winds can turn lawn chairs, potted plants, trash cans, and other outdoor items into deadly projectiles. Move whatever you can into a garage, a shed, or a basement.

Park cars on high ground. Two feet of floodwater can carry a car away. What’s more, driving in water just 8 inches deep can ruin the engine if the water seeps in through the air intake. Park at a high elevation or on a hill—but not beneath trees.

Protect your valuables. Move what you can to higher floors if you expect flooding. Also think ahead by documenting and photographing items you’d include in an insurance claim if lost or ruined.
Stock up on essentials

Build an emergency kit. It should have a whistle to attract help, dust masks, duct tape, a wrench or pliers to turn off water if needed, flashlights and batteries, and local maps. Plan on 1 gallon of water per person per day for at least three days. Include moist towelettes, garbage bags, and plastic ties for personal sanitation. Also consider changes of clothing and sleeping bags or blankets.

Be prepared for injuries. A first-aid kit should be stocked with bandages in various sizes, sterile dressings and gloves, hand sanitizer and antibiotic towelettes, a thermometer, pain medicines, tweezers, and scissors.

Fuel up. Fill all of your vehicles’ tanks, because gas stations could lose power. ­Remember that most gas generators ­require roughly 12 to 20 gallons of gas per day. Also figure on at least a gallon of gas for extensive chainsawing. Store all fuel away from the house.

Have the right phones. Keep at least one corded phone because cordless phones require AC power. Our post-Sandy survey also found that cell phones were more reliable than landline phones, though we lack data on differences for fiber and cable vs.older copper-wire systems. Be sure cell phones are charged. And have an out-of-town contact you can call, because long-distance phone service can be more reliable than local service during and after a storm.

Get the right foods. Frozen food may last two days without power, but refrigerated items can spoil after 4 hours. Keep at least a three-day supply of nonperishable foods such as crackers, whole-grain cereals, and canned foods. And don’t forget the manual can opener.

Check your fire extinguishers. You should have one with a minimum classification of “2-A:10-B:C” on each floor. Check the dial or pop-up pin for adequate pressure each month. Professionally repressurize extinguishers older than six years, and replace any older than 12 years.

Prepare for special needs. Tell your utility and local fire department before a storm if someone in your home uses an oxygen concentrator, ventilator, or medical bed; your power could be restored sooner. And keep a one-month supply of medication during hurricane season.

Tune in. A battery-powered or hand-cranked radio will keep you connected if your computer or the Internet is down. NOAA (National Oceanic and Atmospheric Administration) weather radios are also handy for emergency information.

Have some ready cash. Banks and ATMs could be out of service, assuming you can get to them.
Stay safe during the storm

Find the safest place. Stay in a central room without windows. Have kids? Ease the fear factor with books, a toy or two, and if you have power or a generator, some movies and video games.

Avoid electrocution risks. Don’t use any plug-in device if flooding or wetness is nearby. Landline phones can also be a shock hazard in an electrical storm. If you must make a call during a storm, use a cell or cordless phone if possible—or use a land­line phone’s speaker mode to reduce contact with the handset. Avoid baths and showers until the storm passes. And watch out for downed power lines and live wires.

Use cars safely. Obey emergency crews and follow designated routes. If your vehicle stalls in water, shut off the ignition and seek higher ground; the leading cause of Sandy-related deaths was drowning.

Do some damage control afterward

Do a mold check. Mold can start in as little as 24 hours after a flood and will keep growing as long as relative humidity stays above 55 to 60 percent. Put soaked items outdoors and save what’s ruined for the insurance adjuster. Run a dehumidifier, and clean affected areas with detergent and water or a bleach solution. You’ll need a mask and protective gloves if you do that yourself. For serious mold, hire a pro.

Inspect heating equipment. If any part of your furnace, boiler, or gas heater was submerged, have a pro check and recondition the equipment before you switch it back on. Internal damage could cause a fire, explosion, or shock hazard.

Check your vehicle. Suspect flood damage? Don’t try to start it until it has been professionally inspected. Salt water is especially corrosive, but even freshwater that’s high enough to reach carpeting can damage computers and other electronics.

Try to make only one claim. One larger claim is better than two small ones because multiple claims within the same year are likelier to get you dropped or reassigned as high-risk.
Home insurance: Are you really covered?

Based on the ad slogans, you’d think home insurers were everything from good neighbors to lifelong friends sworn to be “on your side” come hell or high water. But of the more than 8,000 Consumer Reports subscribers we surveyed who endured Superstorm Sandy, just 54 percent of those who filed claims were highly satisfied with how they were handled. That’s just a notch above the 51 percent who told us that after Hurricane Katrina.

Knowing what is—and isn’t—covered before the next big storm can help you make sure you aren’t stuck for the bulk of any repairs. Here are some of the most common home-insurance myths, and steps that can help put you in good hands:
Myth

Reality

What to do

A standard home-insurance policy includes disaster coverage.

Coverage for floods, hurricanes, and earthquakes usually costs extra, assuming you can get it. Flood damage was the most frequent problem cited by our Superstorm Sandy survey respondents, yet 30 percent lacked that coverage. And most who had it didn’t have enough.

Ask to see any policy exclusions or limits in writing now. Then consider adding separate coverage for some or all of the risks your policy excludes before the next major storm. Premiums average $600 per year for flood insurance alone. Expect a hefty deductible for, say, earthquakes in a high-risk area such as San Diego, where the amount for a $317,000 house can come to $31,700.

I’ll get my home’s current market value if it’s destroyed.
Most homeowners who suffer catastrophe are underinsured, according to United Policyholders, a San Francisco nonprofit that has surveyed and assisted disaster survivors nationwide since 1991. It’s up to you to boost coverage as needed to be sure you get what your home is really worth, especially when home prices are rising, because insurers compete on lower premium prices.

Ask your insurer for a customized estimate of your home’s replacement cost. You can also run your own check for $8 at accucoverage.com. Then consider checking other insurers to see which offers the most coverage for the lowest monthly premium. And consider buying an extended-coverage rider, which compensates for the surges in material and labor costs that often follow a serious storm.

I can expect a quick and friendly payout like the kind in the commercials.

Be prepared for a fight, especially with large claims. Fully 20 percent of home claims were still pending for homeowners we surveyed six months after Sandy—with almost 50 percent of them for $40,000 or more. You’ll also need plenty of documentation, including details such as cost, purchase dates, and serial numbers for appliances, furniture, and other items.
Get the Know Your Stuff home-inventory app or software for smart phones or computers from the Insurance Information Institute at iii.org/software. We also suggest getting your own contractor estimates for repairs. Another option is a public adjuster, who usually charges 10 percent of the payout but could get you far more. Find one at napia.com, the website of the National Association of Public Insurance Adjusters. Still having problems? Try griping to your state’s insurance commissioner—or threatening to. Half of complaints to insurance commissioners through June of this year have related to delayed, denied, or otherwise unsatisfactory settlements.

My neighbor’s insurer pays if his tree falls on my house or car.

Your neighbor’s policy pays for damage to your home only if the tree was obviously rotted or dead before it fell, making it a neglected hazard. Otherwise, your homeowners policy covers your home and your auto policy covers your car, whether the tree was yours or your neighbor’s. Expect to foot most or all of the bill to remove the tree if it’s yours and it simply blew over without hitting anything.

Keep a watchful eye on your neighbor’s trees. Send a friendly e-mail if any look sick or damaged so that you can document the problem for later if necessary. Also have trees on your property inspected at least yearly by an arborist.

My landlord’s policy covers me if I’m a renter.

No dice. A landlord’s insurance policy covers only the landlord’s building and personal liability, not yours.

Buy renters insurance to protect your possessions and cover the extra expense of temporary housing if your home is uninhabitable, along with potential injury and other personal-liability costs.

Important emergency sites

Here’s how to stay connected to late-breaking news and other essential data. All apps listed are compatible with at least the iPhone, iPod Touch, and iPad.

Federal Emergency Management Agency (ready.gov). The site has storm-related tips. You can download a free app with tips and a map of FEMA Disaster Recovery Center locations and shelters.

American Red Cross (redcross.org). It assists families after storms and, at safeandwell.communityos.org/cms, helps family members reconnect after a storm. Hurricane by American Red Cross is one of several of its free apps with tips specific to storm type.

National Oceanic and Atmospheric Administration (noaa.gov). Its weather.gov website hosts weather alerts searchable by ZIP code. The $3 NOAA Weather Radar app can send weather alerts via push notifications directly to your device.

Federal Alliance for Safe Homes (flash.org). Its $8 FlashWx Alerts app has GPS-guided weather warnings with notifications in English and Spanish.

Gas Buddy (gasbuddy.com). The site helped users find working stations after Superstorm Sandy. Its free Gas Buddy app lists stations by proximity and price.

Protect your papers

You’ll want important documents handy, especially if your home is uninhabitable after a storm. Store the documents here in a waterproof bag in a locked file or a fireproof box (and have extra copies and backup disks in a safe-deposit box or with your lawyer):

adoption papers;
auto-insurance cards;
birth certificate(s);
health-insurance cards;
Homeowners or renters insurance;
life-insurance documents;
marriage certificate;
mortgage or real-estate deeds;
passports or green cards;
power(s) of attorney;
Social Security card(s);
vehicle registrations and titles; and
will and living will.

Editor’s Note: This article appeared in the October 2013 issue of Consumer Reports magazine.

April 24, 2013

LAURAN NEERGAARD and JENNIFER AGIESTA, Associated Press

WASHINGTON — We’re in denial: Americans underestimate their chances of needing long-term care as they get older—and are taking few steps to get ready. A new poll examined how people 40 and over are preparing for this difficult and often pricey reality of aging, and found two-thirds say they’ve done little to no planning.

In fact, 3 in 10 would rather not think about getting older at all. Only a quarter predict it’s very likely that they’ll need help getting around or caring for themselves during their senior years, according to the poll by the AP-NORC Center for Public Affairs Research.

That’s a surprise considering the poll found more than half of the 40-plus crowd already have been caregivers for an impaired relative or friend—seeing from the other side the kind of assistance they, too, may need later on.

“I didn’t think I was old. I still don’t think I’m old,” explained retired schoolteacher Malinda Bowman, 60, of Laura, Ohio. Bowman has been a caregiver twice, first for her grandmother. Then after her father died in 2006, Bowman moved in with her mother, caring for her until her death in January. Yet Bowman has made few plans for herself. “I guess I was focused on caring for my grandmother and mom and dad, so I didn’t really think about myself,” she said. “Everything we had was devoted to taking care of them.”

The poll found most people expect family to step up if they need long-term care—even though 6 in 10 haven’t talked with loved ones about the possibility and how they’d like it to work. Bowman said she’s healthy now but expects to need help someday from her two grown sons. Last month, prompted by a brother’s fall and blood clot, she began the conversation by telling her youngest son about her living will and life insurance policy. “I need to plan eventually,” she acknowledged.

Those family conversations are crucial: Even if they want to help, do your relatives have the time, money and know-how? What starts as driving Dad to the doctor or picking up his groceries gradually can turn into feeding and bathing him, maybe even doing tasks once left to nurses such as giving injections or cleaning open wounds. If loved ones can’t do all that, can they afford to hire help? What if you no longer can live alone?

“The expectation that your family is going to be there when you need them often doesn’t mean they understand the full extent of what the job of caregiving will be,” Susan Reinhard, a nurse who directs AARP’s Public Policy Institute, said. “Your survey is pointing out a problem for not just people approaching the need for long-term care, but for family members who will be expected to take on the huge responsibility of providing care.”

Those who have been through the experience of receiving care are less apt to say they can rely on their families in times of need, the poll found. With a rapidly aging population, more families will be facing those responsibilities. Government figures show nearly 7 in 10 Americans will need long-term care at some point after they reach age 65, whether it’s from a relative, a home health aide, assisted living or a nursing home. On average, they’ll need that care for three years.

Despite the “it won’t happen to me” reaction, the AP-NORC Center poll found half of those surveyed think just about everyone will need some assistance at some point. There are widespread misperceptions about how much care costs and who will pay for it. Nearly 60 percent of those surveyed underestimated the cost of a nursing home, which averages more than $6,700 a month.

Medicare doesn’t pay for the most common types of long-term care. Yet 37 percent of those surveyed mistakenly think it will pay for a nursing home and even more expect it to cover a home health aide when that’s only approved under certain conditions. The harsh reality: Medicaid, the federal-state program for the poor, is the main payer of long-term care in the U.S., and to qualify seniors must have spent most of their savings and assets. But fewer than half of those polled think they’ll ever need Medicaid _ even though only a third are setting aside money for later care, and just 27 percent are confident they’ll have the financial resources they’ll need.

In Cottage Grove, Ore., Police Chief Mike Grover, 64, says his retirement plan means he could afford a nursing home. And like 47 percent of those polled, he’s created an advance directive, a legal document outlining what medical care he’d want if he couldn’t communicate. Otherwise, Grover said he hasn’t thought much about his future care needs. He knows caregiving is difficult, as he and his brother are caring for their 85-year-old mother. Still, “Until I cross that bridge, I don’t know what I would do. I hope that my kids and wife will pick the right thing,” he said. “It depends on my physical condition, because I do not want to be a burden to my children.”

The AP-NORC Center poll found widespread support for tax breaks to encourage saving for long-term care, and about half favor the government establishing a voluntary long-term care insurance program. An Obama administration attempt to create such a program ended in 2011 because it was too costly. The older they get, the more preparations people take. Just 8 percent of 40- to 54-year-olds have done much planning for long-term care, compared with 30 percent of those 65 or older, the poll found.

Mary Pastrano, 74, of Port Orchard, Wash., has planned extensively for her future health care. She has lupus, heart problems and other conditions, and now uses a wheelchair. She also remembers her family’s financial struggles after her own father died when she was a child. “I don’t want people to stand around and wring their hands and wonder, `What would Mom think was the best?'” said Pastrano, who has discussed her insurance policies, living will and care preferences with her husband and children. Still, Pastrano wishes she and her husband had started saving earlier, during their working years. “You never know how soon you’re going to be down,” she said. “That’s what older people have a problem understanding: You can be in your 60s and then next flat on your back. You think you’re invincible, until you can’t walk.”

The AP-NORC Center for Public Affairs Research survey was conducted Feb. 21 through March 27, with funding from the SCAN Foundation. The SCAN Foundation is an independent, nonprofit organization that supports research and other initiatives on aging and health care. The nationally representative poll involved landline and cellphone interviews with 1,019 Americans age 40 or older. It has a margin of sampling error of plus or minus 4.1 percentage points.
___
Associated Press writer Stacy A. Anderson and News Survey Specialist Dennis Junius contributed to this report.
___
Online:
Government long-term care primer: http://longtermcare.gov
AP-NORC Center for Public Affairs Research: http://www.apnorc.org
Copyright: (c) 2013 The Associated Press. All rights reserved.
Source: Associated Press

Wall Street Journal USA Edition

Corporate Intelligence: What matters right now in business. From WSJ reporters around the world.
March 22, 2013, 11:54 AM

Q&A: How Will the New Health Law Affect Your Premiums?

By Anna Wilde Mathews

Today’s WSJ report shows health insurers warning some premiums could double following the healthcare overhaul. But there has been plenty of debate over exactly what effect the law will have on costs once its major provisions kick in next year. Here are some questions and answers for consumers.

1) Why is there so much debate about what the law will do to premiums?

The law is complex and its effects will vary, and the issue is highly charged. Insurers have said that premiums could go up significantly for many people.

Jonathan Gruber, an MIT professor who supports the health law, said that in work for state regulators looking at the law’s impact, he has projected a range of average premium increases for small business from 0 to 4%. In the individual market, which is consumers buying their own plans, he said the average boosts ranged from 20% to 40%. But once subsidies were factored in, consumers’ payments actually went down between 5% and 40%. He also said the health plans got richer — meaning they likely covered more benefits and had smaller out-of-pocket charges, but also became pricier.

2) I buy my own insurance — what’s going to happen to my premiums?

The bottom line is that it depends on who you are and where you live. The biggest effects will be felt by people who buy their own plans, but they will vary a lot. In general, people who are older and in worse health may see their rates potentially go down, insurance experts say, at least in states where insurers can currently charge them more based on their age and pre-existing conditions. But some younger, healthy folks could see increases, according to the insurance industry and other analysts. Some people may also pay more because their current plans have bigger out-of-pocket charges or more limited benefits than the law allows, so they may have to move to richer, but more expensive, coverage. A lot of lower-income people will qualify for federal subsidies that defray a lot of the cost.

Here is a tool from the Kaiser Family Foundation that may give a very rough sense of what you might expect to pay, including possible subsidies.

3) Can I get a subsidy to help pay for my plan? How much will it be?

Subsidies will be available on a sliding scale for people with incomes of up to four times the federal poverty level—currently $45,960 for a single person and $94,200 a year for a family of four. More than half of the 35 million people expected to be in the individual market by 2016 are likely to qualify for credits, according to the Congressional Budget Office. People whose incomes are around the poverty level could see almost all of the cost of their insurance subsidized.

4) Will my company have to pay more for coverage?

As with individual insurance, the answer will vary. Big companies won’t be affected as much – though some may have to cover more employees or pay penalties under the law. Insurers say some smaller firms could see rates go up, particularly those that may have gotten lower premiums in the past because they had healthier and younger workforces. Those with older, sicker employees might potentially see rates curbed by the law. The Congressional Budget Office, in 2009, projected that on average, premiums for small businesses would be little affected by the law. Here is the CBO analysis.

5) Will the law force me to change health plans?

The law allows people to keep so-called “grandfathered” plans that they haven’t changed substantially since it passed in 2010. Starting in 2014, other health coverage will need to meet requirements of the law that include covering a list of “essential” health benefits, limiting out-of-pocket charges, and not capping benefit payouts. Many plans already meet these requirements, but some with features such as very high deductibles, lack of certain benefits such as maternity, or annual dollar limits on coverage will likely have to change – which would also affect premiums.

See the entire article on the Wall Street Journal:
http://blogs.wsj.com/corporate-intelligence/2013/03/22/qa-how-will-the-health-law-affect-your-premiums/#?mod=wsj_valettop_email

December 25, 2012

The Associated Press
Starting in 2014, President Barack Obama’s health care law will expand coverage to some 30 million uninsured people. At the same time, insurers no longer will be allowed to turn away those in poor health, and virtually every American will be required to have health insurance _ through an employer or a government program or by buying it on their own.

For the vast majority of people, the health care law won’t mean sending more money to the Internal Revenue Service. But the wealthiest 2 percent of Americans will take the biggest hit, starting next year.

And roughly 20 million people eventually will benefit from tax credits that start in 2014 to help them pay insurance premiums.

A look at some of the major taxes and fees, estimated to total nearly $700 billion over 10 years.

Upper-income households. Starting Jan. 1, individuals making more than $200,000 per year, and couples making more than $250,000 will face a 0.9 percent Medicare tax increase on wages above those threshold amounts. They’ll also face an additional 3.8 percent tax on investment income. Together these are the biggest tax increase in the health care law.
Employer penalties. Starting in 2014, companies with 50 or more employees that do not offer coverage will face penalties if at least one of their employees receives government-subsidized coverage. The penalty is $2,000 per employee, but a company’s first 30 workers don’t count toward the total.
Health care industries. Insurers, drug companies and medical device manufacturers face new fees and taxes. Companies that make medical equipment sold chiefly through doctors and hospitals, such as pacemakers, artificial hips and coronary stents, will pay a 2.3 percent excise tax on their sales, expected to total $1.7 billion in its first year, 2013. They’re trying to get it repealed.

The insurance industry faces an annual fee that starts at $8 billion in its first year, 2014.
Pharmaceutical companies that make or import brand-name drugs are already paying fees; they totaled $2.5 billion in 2011, their first year.

People who don’t get health insurance. Nearly 6 million people who don’t get health insurance will face tax penalties starting in 2014. The fines are estimated to raise $6.9 billion in 2016. Average penalty in that year: about $1,200.
Indoor tanning devotees. The 10 percent sales tax on indoor tanning sessions took effect in 2010. It’s expected to raise $1.5 billion over 10 years.

The 28 million people who visit tanning booths and beds each year _ most of them are women under 30, according to the Journal of the American Academy of Dermatology _ are already paying.
Tanning salons were singled out because of strong medical evidence that exposure to ultraviolet lights increases the risk of skin cancer.

Copyright: (c) 2012 The Associated Press. All rights reserved.
Source: Associated Press