Date: December 16, 2005
For more information contact: Eileen Mallow, Assistant Deputy Commissioner, (608) 266-7843 or eileen.mallow@wisconsin.gov

Santa Claus' Holiday Hazards Insurance Guide

Madison, WI—This year Santa had a change of plans. Wisconsin's low unemployment rate caused Santa to call on new help for his Christmas preparations. After evaluating his options, he called Snow White, Inc., to contract with the Seven Dwarves. He now regrets that decision.

The dwarves did not consult the state's Office of the Commissioner of Insurance before the holidays. Now, each one of them has had a holiday-related insurance problem that could have been avoided by carefully reading their insurance policy, talking to an agent or planning ahead.

For example, Sleepy drifted off and left the holiday candles burning on his mantle. His cottage was damaged by the ensuing fire, and he discovered he was covered for only the actual cash value of his possessions. Actual cash value is the cost to replace something minus the amount of depreciation resulting from age or wear. Sleepy's king-size bed will be replaced by a single.

His cottage-mate Happy has changed his name. The fire loss included irreplaceable items such as Happy's family photos and antique furniture, which are difficult and more expensive to insure. Santa showed them a National Fire Prevention Association study saying residential fires started by candles are twice as common in December as in other months. Un-Happy will have smoke detectors in his new cottage.

Grumpy had enough of toy-making and bought a nonrefundable ticket to the tropics on impulse, along with trip cancellation insurance. When Santa gave him a raise, he wanted to put his trip cancellation insurance to good use and cancel his trip. Unfortunately, he found he had not read the policy terms thoroughly and could not collect on his insurance. He lost his money and is now even grumpier.

Although Dopey had good intentions, he left some presents out in the sleigh, and they were stolen. The presents would have been covered by his homeowner's insurance policy, but because the same thing happened last year and the year before, his policy was not renewed due to his poor claims history.

Sneezy was carrying his bag of toys to Doc's workshop, when he slipped and fell on the sidewalk. Doc found out he was liable for shoveling the walk, and his liability coverage--part of his homeowner's insurance--was too low. Sneezy has filed suit.

Bashful wanted to buy an expensive gift for Snow White but couldn't decide whether or not to buy a warranty, too. Paralyzed by indecision, he quit working. Santa put the list of OCI publications under his door, which includes a brochure on the benefits and drawbacks of warranties.

"Loss avoidance to all, and to all a good night!" cried Santa as he and his nine well-insured reindeer made a practice run off the roof.

OCI publications such as "Consumer's Guide to Auto Insurance," "Consumer's Guide to Homeowner's Insurance," "Consumer's Guide to Worker's Compensation Insurance for Employers," and "Settling Property Insurance Claims," can be ordered free from the agency by writing to OCI Publications, P.O. Box 7873, Madison, WI 53707-7873, calling 800-236-8517, or visiting the OCI Web site at oci.wi.gov.

Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.