Is One of your Buildings Vacant?

Your insurance limits coverage on buildings and locations that are vacant. For example, under most property insurance policies, a vacant building is valued at actual cash value rather than replacement cost - meaning your loss payment is reduced by depreciation. First, what does "vacant" mean? If you are a tenant vacant means a location that … [Read more...]

Flood Insurance Changes With New FEMA/NFIP Rating Plan

In my agency days, we had file drawers filled with flood insurance maps.  We had to find the property location and try to decide what flood zone a building was in. Then came maps on the internet and now FEMA is reworking the approach to rating policies. Risk Rating 2.0 is supposed to increase the accuracy of rates - and improve … [Read more...]

Can You Save Us Money?

Prospective clients often ask if I can really save them money. This week I got a workers' compensation renewal from an agent. I sent an email back with three ideas. The result was a $22,000 savings to my client.Another client came to me with a quote from their agent for a new building. (A BIG building.) I spent ten minutes on the phone with the … [Read more...]

Open Perils, All Risk, Special Perils, Named Perils

Question from a client: Scott, I hate to bother you with this.   I know this isn’t part of our current engagement for the insurance renewal, but do you have any opinion on this?  A prior agent had recommended that for commercial loan insurance requirements – we should require our borrowers to have either “Special Form Coverage” or an “Open … [Read more...]

Builders’ Risk Insurance

The builders’ risk insurance policy covers buildings during construction, renovation, or repair. Insurance is provided on the structure and materials used in construction. In most cases, materials are covered while in transit, at temporary storage locations, and while stored at the job site. The following are some of the issues to consider. Who … [Read more...]

Debris Removal

After a fire or other insured damage to your building, there will likely be debris that needs to be removed. Coverage is usually limited to 25 percent of the loss. The amounts paid for debris removal do not increase the total limit of coverage for the whole claim. It is, therefore, possible that you can run out of coverage. To help, insurers … [Read more...]

Bank Insurance Mistake – Inadequate Extra Expense Coverage

Undoubtedly your property insurance covers the repair of a bank building damaged by fire or windstorm. How about the increased cost of operations for the six to eight months it takes to get you back into the building? How will you pay for the rental of a temporary banking location or the cost of bringing in a mobile banking center? How about the … [Read more...]

Bank Insurance Mistake – Coinsurance Penalties in Your Property Insurance Policies

Work with your insurance agent to eliminate any coinsurance clauses from your property insurance. Coinsurance is a penalty inside many policies that can hurt you at the time of a loss. It’s a penalty assessed when your insurance company thinks you are underinsured. Ask your agent if you have coinsurance in any of your property insurance … [Read more...]

How Much Extra Expense Coverage Does A Bank Need?

Extra expense coverage pays the increased cost of getting your bank back to serving customers after a fire, windstorm, or other insured calamity that damages your building. It will pay to relocate employees, rent temporary quarters, and rent temporary bank modules. The challenge in extra expense coverage is setting the amount of … [Read more...]

Earthquake Damage Usually Not Covered

Most property insurance policies exclude damage to buildings and personal property by the peril of earthquake or volcanic eruption. Some policies add limited coverage back.  Even then coverage probably is restricted. For example, most contain the following exclusion, "We will not pay for loss of or damage to exterior masonry veneer (except … [Read more...]