How To Protect Yourself

When Hiring a Contractor

By Jerry Nicklow, API, AIS

I know with all of the snow already this winter and with the impending snow in the forecast, that it is hard to think of spring being just around the corner.  And with the spring season often times comes home remodeling and landscaping projects.

            So, if you’ve got some remodeling, landscaping or other work to do, and plan on hiring a contractor to handle it for you, the beautiful job they do isn’t going to mean a thing if you’re tied up in a lawsuit.

            Injured parties – like workers, neighbors, etc. – will come after you if your contractor isn’t insured properly.  So, here’s how to make sure.

·   BEFORE you even sign a contract or agree to have a contractor do work for you, insist  on having a Certificate of Insurance.  (The contractor can get one in a flash from his/her agent.)  Not a policy, but a Certificate of Insurance showing current coverage in force.

·   Add wording to any signed contract that says should your contractor fail to keep insurance in force, he will lose the job and he will refund your deposit in full.  Then …

·    JUST BEFORE you allow the contractor to set foot on your property (which could be weeks after you sign an agreement), call the agent or company on the Certificate and verify the insurance is still in force.  It may have lapsed since the Certificate was issued.

·   Will your contractor employ labor on your job?  If yes, make sure he has Workers Compensation insurance.

·   Will your contractor employ sub-contractors?  If yes, get – and verify – Certificates of Insurance for them, too.  If they can’t produce them, then don’t let them work on your property.

·   Finally, don’t take insurance advice from a contractor!  We won’t tell you how to properly wire an addition to your home, and your contractor can’t tell you how insurance really works.  If you think anything seems fishy, call us and we’ll make sure your contractor isn’t putting you in jeopardy because of his poor insurance sense.

Does a Down Real Estate Market = Cheaper Insurance?
By Jerry Nicklow, API, AIS
Operations Manager

    Tumbling house prices may have you wondering whether homeowners' insurance premiums will fall too.

    Fair question. But the answer is not as straightforward as you might think. Although median house prices in the US are down around 7% year on year, don’t expect to be able to cut your premiums by the same amount.

    For a start, your homeowners' policy covers a lot more than your structure. It probably also covers contents – and the value of those is more likely to have gone up than down – and third party liability.

    But the most critical factor in evaluating your cover is that the buildings element of your policy should not be based purely on the market value of your home but more importantly on the cost of reconstructing it.

    Although these are hard times for builders, there's no real evidence that construction costs have fallen. In fact, industry experts reckon that as many as two thirds of American homes may be undervalued for rebuilding purposes.

   In the unfortunate event of a loss, it is vital that you have sufficient coverage to rebuild your home to pre-loss condition. Having the home properly valued on the policy also helps assist in a quicker, easier claim settlement. So how do we calculate this reconstruction cost? The calculation method that we use to determine replacement of a home is based on reconstruction costs, not market value, or even the cost of new construction.

    The reconstruction cost of a home is the cost to rebuild today with similar materials and craftsmanship, used during its original construction. Building experts say that reconstruction can cost up to 30% more to rebuild a house than to build it new.  Builders hired for reconstruction require a higher skill set since they are required to work around existing structures, landscaping, and power lines. They also need to be able to match up new materials to existing materials. We use reconstruction cost because it most closely approximates the cost to rebuild their home to pre-loss condition.

    That means, it makes sense, one way or the other, to regularly check that your homeowners' policy accurately reflects the cost of rebuilding it. There are several ways:

Don’t Get Burned On A Disaster Claim!

Nobody wants to think about their house burning down or burglars stealing some/most/all of their valuables. But that’s one of the reasons you have homeowners insurance – to give you peace of mind that if something horrible does happen, you will be compensated for your losses. Filing a claim, however, isn’t necessarily an easy process, particularly if you’re not prepared. Prepared? How do you “prepare” for a fire or a burglary? There are several ways:

Tip #1: Read Your Policy, Or At Least Make Sure You Understand What It Covers and What It Doesn’t.

When you buy coverage, you should know what you’re getting – and what you’re not getting. For example, the average homeowners policy doesn’t offer a lot of coverage for computer equipment. As such, if a burglar walks off with thousands of dollars worth of computer equipment from your home, you probably will be disappointed with the coverage. It’s nice to know in advance potential gaps in coverage, if only because you won’t have the double disappointment of losing some of your possessions and then having all or part of your claim for those possessions denied, much to your surprise.

Tip #2: Know the Procedure in Advance.

Your policy usually has information on how to file a claim. Specifically, who to call

and how soon after the loss. You should know the claim process before you ever have to file a claim. If you have any questions about what is required of you and how to handle a loss or accident right after it happens, talk to your insurance agent or someone at the insurance company.

Tip #3: Document Your Possessions.

Your homeowners, renters and in-home business policies offer general coverage for

most of your possessions. (There are, of course, limitations on jewelry, art, computer

equipment and collections). When you lose some or all of these possessions, you have to list on the claim what you lost. Generally speaking, the insurance company will give you the benefit of the doubt. However, if you claim the loss of numerous expensive items – televisions, stereo equipment, furniture, appliances, etc. – you could have a problem if you don’t have any evidence of your ownership of these items.  Evidence? Receipts, for one. Also, you should have both a written and photographic (or videotaped) record of your possessions. Keep this record up-to-date, and keep copies (both written and photographic) of the records in another location, such as a safe deposit box.

Keep a file of receipts for any items that cost more than a few hundred dollars. And keep a copy of those receipts in the safe deposit box. This way, you minimize any potential hassles that could arise during the handling of the claim.

So, you might be asking, does my insurance company not trust me? The company will trust you unless you give it a reason not to. For example, claiming lots of big-ticket items with-out any written or photographic record is a red flag. Keep good records and you won’t have a problem.

Contact Huff Insurance if you have any questions or concerns!

MAKE CERTAIN YOUR JEWELRY IS PROPERLY INSURED

Many people overlook the need to properly insure their expensive jewelry, believing that it is automatically covered by their homeowners’ policy. While homeowner’s policies do cover jewelry, this insurance usually is subject to a much lower limit than the overall contents coverage. This reduced limit is called a "sublimit," and a typical sublimit is $1,500 for loss by theft of jewelry, watches, and precious and semiprecious stones.

If your jewelry is worth more than the sublimit in your homeowner’s policy, you should consider purchasing specific insurance to cover it. The following is a good process to follow.

* Arrange an appointment with us to review your jewelry coverage. Bring as much information about your jewelry portfolio as possible, including any appraisals.

* If your high-valued jewelry has not been appraised within the last 3 years, consider obtaining an appraisal from a reputable jeweler. Insurance companies often require an appraisal on more expensive jewelry from a graduate of the Gemological Institute of America (GIA). The Institute's G.G., G.J., or A.J.P. designations at the end of an individual's name indicate that the jeweler has achieved a high level of professionalism with an education backed by a respected nonprofit organization.

* Make sure the appraisal has a description of the diamond's four C's -- (a) carat, (b) cut, (c) clarity, and (d) color. The "carat" refers to the weight of the diamond. The quality of the "cut" of the diamond results from the way light enters the stone and is reflected back. "Cut" is also used to refer to the diamond's shape, such as round or pear-shaped. The "clarity" refers to the prevalence of minor spots, lines, bubbles, or other natural imperfections within the diamond. The "color" denotes the tint a diamond may possess. Remember that the better the appraisal, the fewer problems you will encounter with the insurer if you ever have to make a claim.

* Purchase inland marine coverage that can be added via an endorsement onto your homeowners policy. This endorsement (also available as a separate policy) provides much  broader coverage than the limited protection found on the unendorsed homeowners’ policy.

* Consider keeping any valuable jewelry you rarely wear in a safety deposit box at your bank.

* Review your jewelry protection with us at least every 2 years or whenever you sell or purchase high-value jewelry.

DON’T TAKE YOUR PASSWORDS TO THE GRAVE!  SHARE SAFELY
by Jerry Nicklow, API, AIS
Operations Manager
www.huffinsurance.com

Have you thought about what would happen if you were seriously injured and could not communicate or if you died.  Does anyone else have access to all your accounts?  Does anyone else know your ID or Passwords?  Do you have them written down somewhere?

A friend of mine had this happen recently.  It took his family a considerable amount of time to locate a list with this information (the deceased did have it written down and taped to the underside of a desk drawer!).  So many of us just carry this information around in our heads, or use the same User ID and Password for everything.  That’s fine but who else knows that?  Should your attorney have a list of these numbers?  Your insurance agent?  A trusted friend?  A relative?  A copy included with your will?

A spreadsheet would be very easy to set up with all of this information.  Include account names and numbers, phone contact, ID and password.  If the list includes bills that you pay each month, include the date you pay it or the date of the automatic withdrawal.  And have several copies in two or three locations.  As was discovered during Hurricane Katrina and other recent catastrophes, everything can be wiped out in a matter of minutes.  Suggested safekeeping locations could include a disaster proof area in your home, a safe deposit box, an out of state location with a trusted relative.   If you are married, don’t always think that your spouse would be there to take care of things.  The possibility does exist that in an accident situation, you could both be incapacitated or killed.

Now you are probably thinking that you don’t have that many IDs or Passwords to think about (let alone all those answers to secret questions!)  Start a list and I’m pretty sure you’ll be surprised.

Your computer and/or laptop
Bank accounts
Online bill-payment systems
Bank Cards – ATM/Debit
Credit cards
Brokerage accounts
Retail or seller accounts (Amazon, eBay, Etsy, etc.)
Voice mail accounts
Cell phone accounts and the unlock code
Email accounts
Home-security systems
Computer-security systems
Entry gate code at a gated community or storage facility
Keyless-entry locks
Safe combinations and/or the location of keys.
Insurance policies

As to the answers to those security questions, I recently discovered that if I just plugged in the same answer to ALL the questions, then I only had to remember one thing!  Does anyone other than you really have an interest in the name of your first pet?