Inherent Vice

Inherent vice is an object's tendency to deteriorate.Ray Burnham, in his most excellent, Burnham's Insurance Dictionary, uses examples of meat putrefying, iron rusting, and people aging.Property insurance almost always excludes inherent vice, though most policy forms do not use the term.The ISO property form excludes inherent vice with the … [Read more...]

Earthquake Insurance

1) Earthquake is not covered by standard property insurance policies.2) Earthquake insurance is available in every county in the US (its just more expensive in some places).3) Earthquake is the single most uninsured catastrophic exposure for most businesses.4) I don't understand why all businesses do not buy earthquake insurance. … [Read more...]

Lightning Damage and Your Insurance

Data accumulated by the Insurance Information Institute reveals that there were 185,789 home insurance lightning claims in 2009. These claims include damage to homes, contents, and electronics. The total cost of the claims was $798 million.  In 2008 lighting damage topped $1 billion. Surge protectors (at individual outlets or on your power … [Read more...]

A Year Is Not Enough – Maybe

Most property insurance programs limit coverage for loss of business income to 12 months. Is that long enough for you? In many areas the time it takes to get permits and meet regulations can eat away 3 months or more. You need a contractor who can move quickly, and you may deal with labor and material shortages if your building is destroyed in a … [Read more...]

Earthquake is Not Covered!

The horrible events in Haiti means that many of my conversations with clients include questions about earthquake.Here is the short answer... Standard property insurance policies exclude earthquake. Home insurance excludes it and business property insurance excludes it.The following exclusion is from a commonly used business property insurance … [Read more...]

Coinsurance Video

My latest insurance information video...  How  coinsurance works on your business property insurance policy. … [Read more...]

Water Detection Devises

Water damage from plumbing systems is a major cause of property losses. Pipes break, toilets overflow and keep going. Cold weather causes freeze-ups and spurting water when it thaws.Several companies manufacture water detection devices that monitor water flow and shut the water off at the source when a leak is detected.For home and commercial … [Read more...]

Insurance Success Tip #5 – Remove Coinsurance Penalties

Coinsurance in property insurance is a penalty clause - a penalty assessed at the time of a loss. Coinsurance never helps the insurance buyer - it only hurts you. Get your agent to remove all coinsurance penalties from your property insurance. … [Read more...]

Insurance Success Tip #2 – Use High Deductibles

Let the insurance company take the big risks. You pay for small losses.$5,000 is the minimum deductible most businesses should have on property insurance. Same for crime insurance, machinery coverage, and the physical damage portion of your automobile insurance.Most liability insurance policies do not have a deductible. When someone is hurt or … [Read more...]

Increased Cost of Construction

"are the costs of betterments required by current building codes, as when glazed safety class must be used to replace standard sheet glass."From "Burnham's Insurance Dictionary" ( Used with permission.After the fire many business owners are surprised to learn that their insurance will only pay to replace the building that was … [Read more...]