BEST DOGS FOR HOME INSURANCE

Image via Wikipedia

I received information from Travelers Insurance today about dogs.  They say that the top five dogs to own (for insurance purposes) are:

• Shih Tzu
• Poodle
• Dachshund
• Bulldog
• Boxer

Here are some additional dog facts:

An American has a one in fifty change of being bitten by a dog each year.
Approx. 800,000 dog bite victims (1 in every 6) require medical attention annually in the US.
Industry-wide, over 1/3 of homeowners's liability claims come from dog bites
The average cost of a dog bite claim was $24,461 in 2008

Your insurance agent should remember to ask about dogs or pets in the household and review your insurance company's list of ineligible breeds in their eligibility guidelines.

You can read more about risk management with dogs in a previous posting, TAKE STEPS TO PREVENT DOG BITES.

BUILDING, RENOVATING, REMODELING AND RESTORING: NAVIGATING BUILDERS RISK INSURANCE

Home construction was delayed by tornado damage  (Image via Wikipedia)

As a risk manager for numerous property owners, I am frequently encountering situations where Builders Risk insurance would benefit my customers.  Having recently left the world of normal people to enter the realm of insurance and risk management, I can still remember how confusing insurance can be.  Hopefully this will help someone to navigate the waters of Builder's Risk insurance.

For anyone who has ever decided to build, renovate, remodel, or restore a building, Builder's Risk insurance is generally a requirement of the loan.  However, even those who are working with their own funds can benefit from purchasing a Builder's Risk policy.

Here are some things that you can put together to help your agent provide you with the best Builders Risk coverage.

1. Projected Costs:  Maintaining a list of cost estimates and keeping your insurance agent updated as these costs change can help you ensure adequate coverage.
2. Project Details:  In providing detailed information, you can provide will help you agent "sell" the project to an underwriter.  Not only will it help you communicate better with your agent, it may help the underwriter conceptualize the project.  Underwriters are more likely to discount premiums when they understand what they are insuring.
3. Contracts:  Contracts frequently require certain limits of insurance.  In giving your agent complete copies of all contracts involved with a project, they will be able to provide you with appropriate insurance solutions.
4. Projected Dates:  It is paramount that your insurance agent is kept informed of projected start and end dates.  Shopping your insurance can take time and good agents will utilize that time to provide you with a combination of the best coverage and pricing.  Keeping them informed of your projected starting and completion dates will help them stay on track.
5. General Contractor:  Who is your general contractor?  Why did you select them?  A brief description of your general contractor and their track record can help "sell" an underwriter on your insurance and save you money.
6. Other Structures at the Site:  What other buildings or structures are at the site?  Will any of them be at risk of becoming damaged due to this project?  What is being done to protect the other structures?
7. Safety:  Provide your agent with a list of any safety precautions that have been or will be made.  Some items to consider are: lighting, fencing, and security.  Although, these features may reduce your premium, more importantly, they should reduce your stress level when the project is underway.
8. Storage of Building Materials:  Where will materials be stored before they are installed?  The basic ISO coverage for these materials only covers them if they are within 100 ft. of the scheduled location.  Additional distance from the site and additional storage locations may be added by endorsement.  What measures will be taken to prevent theft of these items?
9. Soft Costs:  When unforeseen events happen that delay the completion date of your project, additional expenses are usually incurred. These may be: additional interest charges on loans, advertising expenses, additional contractors costs, real estate taxes, consulting fees, equipment rental, premiums for extended insurance terms, refinance charges, and architectural and engineering fees.  Essentially, soft costs are all costs associated with a project except for labor and materials.

When should you shop for Builder's Risk insurance?  If possible, you should begin shopping three to four months before the projected start date.  This will allow your agent time to understand the project and to approach multiple insurance carriers, allowing them to compete for your business.  Be sure to keep your agent informed of any changes to your start date so that they can time the inception of the policy accordingly.The policy should begin when construction or demolition begins.  Once work is being performed, Builder's Risk insurance is the appropriate form of insurance.  Here's a handy flow chart to illustrate this.

When the project nears completion, make sure that your agent is ready to provide you with Property and General Liability insurance to take the place of the Builder's Risk insurance.

WHEN YOU CAN'T COME HOME: WHAT DOES "LOSS OF USE" COVERAGE ACTUALLY COVER?

Your homeowner’s insurance policy will pay to repair damage to your home caused by a fire, windstorm or other covered cause of loss. But when you and your family incur expenses for moving out while repairs are made, who picks up the tab?

An often-overlooked but essential function of your homeowner’s policy is “additional living expenses” (also called “loss of use” or “Part D”) coverage. Additional living expenses coverage will pay the necessary increase in living expenses required to maintain your family’s current standard of living while the house is being repaired. Examples of expenses typically covered include the cost of hotel, food bills in excess of normal grocery/restaurant bills, cooking supplies and the cost of moving property into storage.

The good news is that payment for these expenses usually does not stop if the policy expires. Rather, they will continue to pay until the limit is used up, the home is repaired to a habitable state, or you permanently relocate.

The bad news is that many homeowners erroneously believe that the policy covers 100 percent of additional living expenses until the home is habitable. Realistically, very few policies do this. In most cases, home insurance companies place a limit or cap on loss-of use payments. For example, many homeowner policies will only offer loss-of-use coverage as a percentage of the limit of insurance carried on the dwelling; 20 percent is common. Others may specify a flat dollar amount.

Usually, a covered loss must occur for any insurance dollars to be paid for additional living expenses. The one exception is if your home is not accessible due to civil authority or government mandate triggered by nearby damage. For example, in 2009, wildfires in California triggered mandatory evacuations that prevented tens of thousands of homeowners from going home. If homes in close proximity to yours are burning, there’s a chance the government will close roads and/or prevent you from entering your property even though it has not yet suffered a direct loss. In this situation, additional living expense payments are often limited to two weeks.

Homeowners who receive additional income by renting a portion of their home should also pay close attention to the Part D limit. This limit also applies to replacing lost rental income while the damaged house is being repaired.

Here’s the important question: How do you know if your policy’s Part D limit is sufficient? The trouble is that important factors are variable. For example, how do you know how long you will be out of your house? Building codes and permits cause rebuilding efforts to proceed slowly in many parts of the country. Calling a local building contractor to gain some idea is a good start but there is no exact prediction.

Further, how do you know what expenses you will incur? According to Hotels.com’s 2009 hotel price index, the average hotel room in the U.S. costs $115 per night! Add this and other expenses to a lengthy, unpredictable repair schedule and the possibility of eclipsing your Part D policy limit before your home is habitable could become a serious problem.

The last thing you want to hear is that your loss-of-use coverage has run out before you can go home. Fortunately, your Trusted Choice® insurance agent understands this exposure and can help you weigh your options, including those that may increase your loss-of-use coverage limit. For a thorough review of your homeowner’s policy, call your Trusted Choice® agent today.

source: TrustedChoice.com, November 2009