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December 14, 2011
Winter brings the threat of freezing temperatures and harsh conditions to much of the U.S. Some places are well beyond the threat; it’s going to freeze—there’s no way around it. Such conditions pose unique hazards to commercial building owners. Following is some information on common winter threats and how they are addressed by commercial property insurance.
FREEZING/BURSTING PIPES
One of the most common causes of damage to commercial buildings during the colder months is freezing and bursting pipes. As a building owner, there are measures you can take to prevent pipes from freezing; however, sometimes the worst happens anyway. If it does, the result can be thousands of dollars of damage to your building, furniture, electronics, and other business property.
If this happens, will your commercial property insurance pay? The answer is “it depends.” The property policy is not a maintenance contract, and the insurance company expects you to take every precaution to ensure that pipes don’t freeze. If there is an insurance claim, the adjuster will determine if the measures taken were adequate. Specifically, the adjuster will look for evidence of two efforts: First, did you leave the heat to the building running; and, second, did you drain the lines? If you can prove at least one of these steps was taken, most policies will pay the resulting damage.
That’s certainly good news. But wouldn’t you rather avoid the claims process altogether and keep your deductible in your pocket? Following are a few tips on protecting the pipes in your building from winter’s worst.
-Locate the turnoff valve and drain the lines.
-Protect spigots with Styrofoam attachments. These can be purchased at most home improvements stores and offer much better insulation than wrapping the spigot with a towel.
-Search for pipes that are not insulated. These pipes may pass through unheated areas, such as crawlspaces, basements or garages. Pre-molded foam rubber sleeves can be fitted to the pipe and offer essential insulation to keep them from freezing. Fiberglass insulation is also an option. You may also consider wrapping the pipe with heating tape.
WINTER RUNOFF
As winter begins to recede, the risk of damage from freezing pipes fades with it. However, melting snow and ice bring a new concern for building owners—flood damage to property resulting from the runoff of the melt. In many areas of the country, snowmelt is a greater threat for flooding than any other source. The bad news is that flood resulting from melting snow and ice is still considered a flood and, therefore, is not covered by standard commercial property insurance.
Coverage for this type of loss can be found only through a flood insurance policy. Currently, the National Flood Insurance Program (NFIP) allows owners of commercial buildings to purchase up to $500,000 in flood coverage for damage to the building caused by flood and up to $500,000 in coverage for damage to the building contents. If these limits aren’t sufficient to cover the risk of damage to your building, consider purchasing an excess flood insurance policy. This policy allows for the purchase of limits to cover flood damage up to a dollar amount specified by the insurance company.
DAMAGE CAUSED BY ICE, SLEET OR SNOW
Ice, sleet and snow can be incredibly destructive to your property. They can be the source of damage or amplify existing damage—for example, ice getting into a crack in a wall. Unfortunately, damage caused by ice, snow and sleet are not covered by most standard commercial property insurance policies. While some policies will cover damage resulting from the abrupt collapse of a building’s roof under the weight of ice, snow or sleet, others will not.
Protecting your building from harsh winter conditions takes a great deal of care. So does making sure your insurance responds if it turns out Old Man Winter packed a little more punch than you bargained for. For help in determining if your policy covers the winter damage you might experience, give your Trusted Choice® independent insurance agent a call.
September 6, 2011
Every new “like” on the Trusted Choice® Facebook page during July sent $10 to children’s charity.
ALEXANDRIA, Va., Aug. 8, 2011 – Trusted Choice®, the consumer branding program for independent insurance agents and brokers recently wrapped up a special social media campaign to raise money for the Make-A-Wish Foundation®. For every new “like” on the Trusted Choice® Facebook page (www.facebook.com/TrustedChoice) during the month of July 2011, Trusted Choice® donated $10 to the Make-A-Wish Foundation, with a minimum donation of $100,000 and a maximum donation of $300,000.
“Through this promotion, Trusted Choice® will help change the lives of the children we serve,” says David Williams, president and chief executive officer of the Make-A-Wish Foundation of America. “A Make-A-Wish® experience is an incredible gift that can make seriously ill kids stronger and more optimistic – and we’re grateful to have supporters like Trusted Choice to help us make even more wishes come true.”
The Trusted Choice® Facebook page grew by 17,159 new “likes” during the month long campaign resulting in a $171,590 donation to the Make-A-Wish Foundation.
“Trusted Choice® is proud to have used social media in such a positive way to raise money and awareness for the Make-A-Wish Foundation,” says Dave Evans, Trusted Choice® executive director. “Independent insurance agents and brokers have a strong track record with countless charity efforts in their communities and this successful campaign was an amazing way for us to join forces for a very worthy, national campaign.”
About the Make-A-Wish Foundation: The Make-A-Wish Foundation grants the wishes of children with life-threatening medical conditions to enrich the human experience with hope, strength and joy. Founded in 1980 when a group of caring volunteers helped a young boy fulfill his dream of becoming a police officer, the Foundation is one of the world’s leading children’s charities, with 64 chapters in the United States and its territories. With the help of generous donors and nearly 25,000 volunteers, the Make-A-Wish Foundation grants a wish every 40 minutes and has granted more than 200,000 wishes in the United States. For more information about the Make-A-Wish Foundation, visit wish.org and discover how you can share the power of a wish® with the Make-A-Wish Foundation.
Trusted Choice® was launched by the Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) and several independent agency companies to highlight the benefits independent agencies and brokerage firms offer consumers—choice of companies, customization of policies and advocacy support. It is the premier consumer brand for independent insurance agents and provides national advertising and other strategic tools to reach consumers.
Trusted Choice® educates consumers about the benefits of using independent agents and brokers for their insurance needs: choice of companies, customized policies and advocacy support. Trusted Choice® is the consumer marketing identity for more than 13,000 independent insurance agencies and brokerage firms and 61 leading insurance companies. For more information, go to www.TrustedChoice.com.
May 27, 2011
Trusted Choice® independent insurance agents provide disaster preparedness and safety tips as hurricane season begins.
ALEXANDRIA, Va., May 25, 2011 – As the United States experiences and recovers from tumultuous weather, with parts of the South and Midwest reeling from the destruction of fierce recent tornados and flooding, forecasters predict shifting weather patterns and many named storms as hurricane season officially begins next week on June 1.
Yet, according to a 2010 survey by Trusted Choice® and the Independent Insurance Agents & Brokers (the Big “I” or IIABA), many Americans are unprepared for a disaster. More than half of respondents (51%) admitted they are only somewhat prepared, and more than a fifth of households (22.7%) reported that they were not prepared at all. Almost 36% said they don’t have or don’t know if they even have adequate insurance coverage to help them through a disaster.
Trusted Choice® independent insurance agents can address these issues and more as extreme weather bears down on much of the country and can also offer disaster-specific readiness and recovery tips for consumers. Trusted Choice® experts can help:
- Sort through coverage confusion when severe weather damages or destroys residential or business property
- Advise how business interruption coverage is impacted by hurricanes and other disasters
- Explain hurricane safety and flood readiness tips, including home and business inventory prep and utilities check-listing
- Supply information on the National Flood Insurance Program (NFIP)
- Detail safe evacuation procedures
- Discuss how to recover from storm and flood losses, whether or not the property is insured
- Provide suggestions on emergency repairs and rebuilding
- Offer tips for “drying out” safely and replacing belongings
For more specific disaster readiness and recovery tips, click on the corresponding headline.
May 19, 2011
Insurance comes in a wide array of choices for a variety of consumer and business needs. Even the best-educated consumer who spends time researching insurance issues will come across a topic he or she doesn’t understand.
Let’s take a look at what consumers say when asked: “What’s one thing you don’t understand about insurance?” Here are three common questions that Trusted Choice® insurance professionals hear:
Q: Why do I need insurance?
Insurance is for the uncertainties of life. Accidents and catastrophes happen. What can’t be predicted is when they will occur, and whom they will affect. Most people understand they’ll get sick at some point in their lives, but they can’t predict the severity and extent of the illness nor the cost of the treatment.
Catastrophes strike: In 2005, there were 24 weather-related or other disasters causing a total of $61 billion of insured losses. Hurricane Katrina alone caused $41 billion in damage from 1.75 million insurance claims.
Even the safest drivers face the risk of an accident, and even the safest homes can catch fire. In 2006, about 5 percent of insured homes had a claim, according to the Insurance Services Office. About 94 percent of these homeowners insurance claims were for property damage, including theft.
Lawsuits are another uncertainty that businesses and homeowners face. They’re costly: In the 56-year period from 1950-2006, the costs of the tort lawsuit system in the U.S. increased an average of 9.2% each year, reported Tillinghast-Towers Perrin. While most lawsuits are settled before they reach the courtroom, Jury Verdict Research data show that the median plaintiff award in personal injury cases was $45,000 in 2005, compared with $32,000 in 2002. Insurance provides two benefits to those who are sued: It pays for the cost of defending the lawsuit and pays for any liability payments for which the insured is found responsible.
Q: How do you define what insurance is … or does?
Insurance is simply a vehicle for transferring risk from one party to another. You need insurance if you have financial risk (and everyone does) and you want to reduce that risk. To do so, you pay someone else (e.g., the insurance company) to assume much of the risk for you, in return for a payment known as a “premium.”
Because American consumers hold a tremendous amount of wealth in property—ranging from homes and cars to collections of baseball cards and Christmas ornaments—they have a basic need to protect themselves from losing that value.
Insurance is designed to “make people whole” after their property or assets are damaged or stolen, or if they are responsible for harm caused to another party. An insurance policy is a contract under which an insurance company agrees to pay a certain amount of money to the policyholder if certain events happen (and their property is damaged or they cause harm to someone else or someone else’s property).
Q: Is life insurance an investment or purely insurance?
A: Life insurance for centuries has been first and foremost insurance: it provides a death benefit to the family or business partners of an insured person.
Beginning about 30 years ago, the attractive returns in stock investments led insurance companies to bring investment elements into life insurance policies. For example, agents and companies offered consumers the choice of placing life insurance premiums into mutual funds, stocks, and bonds within the life insurance contract—known as “variable” life insurance. The term “variable” implies that the investment returns on these premiums vary with market performance.
With these types of life insurance policies, the insurance carrier takes the policyholder’s premium dollars and places them in the investment account(s) chosen by the policyholder. These types of life insurance policies are subject to state insurance regulation and federal and state securities regulations.
While investment-oriented life insurance has grown popular over the past generation, traditional life insurance (both permanent and term) continues to be purchased in large amounts. Americans purchased $3 trillion of new life insurance coverage in 2006, according to the American Council of Life Insurers.
If you’re not sure whether a life insurance policy includes investment elements, you can check the disclosure information on a life insurance application or policy, which must discuss whether securities are part of the life insurance contract.
http://www.trustedchoice.com/Content/Articles/3-Insurance-Questions.aspx
April 25, 2011
Two Types of “Water Damage”
A standard home insurance policy will cover losses caused by water that accumulates in the home resulting from the accidental discharge of a system of appliance, such as a broken hose or valve. That same policy will not cover losses caused by water that accumulates as a result of the overflow of a body of water or runoff of surface water.
Common Causes of Flood
Floods often result from torrential rainstorms and hurricanes. Floods also commonly result from snow melt. Floods also result as a side effect of development- such as road construction or a new housing community- that alter storm water drainage patterns.
Who is at Risk?
Flood insurance is not just for people living or working on the coast. According to the National Flood Insurance Program (NFIP), 31 percent of the properties damaged by floods are located outside of a special flood hazard area as designated by FEMA. The NFIP reports that floods happen in all 50 states and that floods are the second most common cause of property damage behind fire.
Property owners are often mislead into believing that flood insurance is only available for properties that are located in a special flood hazard area or “flood zone.” Unfortunately, this myth has caused many property owners to suffer from uninsured flood losses that could have been easily covered. The only requirement is that the property is located in a “participating community.” This could be a township, municipality, city or county that has agreed to participate in the NFIP.
Preferred Risk Policy (PRP)
The NFIP offers the PRP for homes and businesses that are not located in a special flood hazard area and do not have a history of flood claims. The PRP allows eligible buyers the opportunity to purchase flood insurance at a pre-determined rate. PRP rates are intended to remind property owners that regardless of where the property is located the aforementioned data is proof that it’s still a good idea to purchase flood insurance.
A Few Unique Features of Flood Insurance
It is important to remember that a flood insurance policy is a separate policy from your home, condo, or business insurance. This means that flood insurance is subject to its own terms and conditions. Following are a few of the unique features:
Waiting Period
There is a 30-day waiting period from the date you first purchase flood insurance to the date that policy takes effect. This is designed to prevent the purchase of coverage for losses in progress. The 30-day waiting period also applies to changes made to an in-force flood policy. For example, if you currently carry $200,000 in coverage for your home and decide to raise that amount to $250,000, you must wait 30 days before the change will take effect.
The waiting period does not apply to a renewal policy. There are two exceptions to the 30-day waiting period: the first is if the policy is required in conjunction with the closing of a loan. The second is for property owners that previously were not required to purchase flood insurance but are now being told they must as a result of a new map from FEMA indicating that property is now located in a special flood hazard area.
Two Deductibles?
Let’s say a flood causes $50,000 in damage to your home and $10,000 to contents. Your policy includes a $1,000 deductible. That deductible will apply once towards the recovery of your home and once towards the recovery of your contents. This means it’s possible you will pay the deductible twice for the same loss: once for the dwelling and once again for contents.
Note that lenders who require owners to purchase flood insurance typically only require insurance on the dwelling or building and do not require flood insurance on contents. Owners should carefully consider the cost to repair or replace contents before choosing to forgo insuring them.
Other Structures
An important feature of your home insurance is the inclusion of coverage for certain types of other structures such as a detached garage or pool house. The only other structure that the flood insurance policy will extend coverage to is a detached garage. Other structures may be eligible for coverage under a separate flood policy.
No Additional Living Expenses
An important feature of your home insurance is the ability to collect money from the insurance company to pay living expenses while your home undergoes repair. These expenses may include hotel, food and other expenses. Unfortunately, the flood insurance policy offers no coverage for additional living expenses- such costs must be paid out-of-pocket.
http://www.trustedchoice.com/Content/Articles/flood-coverage.aspx
November 15, 2010
Baltimore, MD (September 30, 2010) — As Maryland faces potential losses from recent storms, Acting Maryland Insurance Commissioner Beth Sammis has the following tips for residents and commercial businesses that incur damage from the storm.
“Following the tips below will make it easier for you to receive the full benefits of your insurance policy,” says Sammis. “If you encounter a problem with your insurer, we will help you.”
Here are some tips for the most complete and efficient insurance recovery . . .
- Contact your insurance company or agent immediately to report your damage.
- As soon as you can, prepare a detailed inventory of all damaged or destroyed property for the insurance adjuster and for you. Include a description of the item and quantity, if more than one, date of purchase or approximate age, cost at the time of purchase, and estimated replacement cost today to the extent possible.
- Take photographs or video of the damaged areas to help document your claim and assist in the insurance company’s investigation.
- Keep all receipts for emergency repairs and for temporary living expenses if needed.
- Before removing any damaged property from the premises, be sure an insurance adjuster or your agent has evaluated the damage for their assessment. This is especially important if state or local officials begin debris removal operations on your property.
Some other important reminders when recovering from storm damage include:
- Read your policy carefully so you understand what is covered and what is not.
- If you have to relocate temporarily, make sure the insurance company or agent knows your temporary address and telephone number.
- Make only those repairs necessary to prevent any further damage to your home or business. This includes covering roofs, walls or windows with plywood, canvas or other waterproof material. Do not have permanent repairs made without consulting your agent or company as unauthorized repairs may not be reimbursed.
- If your insurance company denies any part of your claim, keep all the paperwork they end you. If your area is declared a disaster by the federal government, you may be eligible to file for federal relief by providing that proof.
- If you hire a public adjuster, understand that your insurance company is not obligated to follow what a public adjuster determines to be your loss.
Any questions or concerns about insurance claims can be directed to the Insurance Administration at 1-800-492-6116 or online at www.mdinsurance.state.md.us.
The Maryland Insurance Administration (MIA), founded as the Maryland Insurance Division in 1872, is an independent State agency located in downtown Baltimore. This agency regulates Maryland’s $26 billion insurance industry and makes certain that insurance companies, health plans and producers (agents and brokers) comply with Maryland insurance law. The MIA also licenses over 110,000 producers and approximately 1,500 insurance companies, regulates insurance rates, monitors insurer solvency, investigates consumer complaints and travels across the State providing consumers with educational materials on insurance. These materials may also be found at www.mdinsurance.state.md.us.
200 St. Paul Place, Suite 2700 Baltimore, Maryland 21202-2272
September 2, 2010
Please call one of the following numbers:
800-841-5241 AIC
800-367-3743 Erie Insurance
800-788-9488 Fidelity National
877-445-5826 Harford Mutual
800-922-4050 Hagerty
800-274-4499 Progressive
800-332-3226 Safeco Insurance
800-327-3636 The Hartford
800-252-4633 Travelers Insurance
800-356-6663 Travelers Flood
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