Will They Cover It?
Are you ready to explain the increase? It’s likely to cost more to repair an older home after a property loss following the implementation of a new EPA regulation dealing with lead paint. After April 22, 2010, contractors that disturb lead-based paint must be certified and must follow specific work practices to prevent lead contamination. This new requirement is designed to protect children from breathing in the dust from lead paint and applies to homes, schools, and child-care facilities built before 1978. Additional information can be found at http://www.epa.gov/lead/pubs/renovation.htm . After reviewing the EPA manual and speaking with restoration contractors, I’m convinced restoring many older buildings after a property loss will cost more. Expect the additional cost to be paid as part of a claim under our standard property policies, but perhaps not for long. One major direct writer is rumored to be adding an absolute exclusion to their policies. Please keep me advised on how your companies respond to this new exposure.
Society is the Tipping Point
If you have not yet analyzed the new “Wanna-be Green” property endorsements, time is running out. The coverage allows me to repair or rebuild my traditional building with green methods and materials instead of like kind and quality. The benefits of doing so include reduced operating expenses, enhanced resale value, and significant bragging rights. Major national carriers - Firemens Fund, Travelers, Chubb – have offered this option for some time. Last week I learned that Society Insurance, a privately-held, niche company headquartered in Sheboygan, Wisconsin has joined their ranks. The issue has reached the tipping point and now is the time to learn the issues and analyze the various endorsements. The challenge is to find a way to use the new coverage to open doors and create for yourself an “unfair advantage.” NEED CE? I am in the process of revamping the upcoming course, “Innovative Coverages” to include a section on how I might approach this opportunity. Wisconsin and Michigan agents will be able to attend the course within the next six weeks.
Pleaserobme.com
The website pleaserobme.com appears to be shut down before you even knew it existed. I ran across it when I was checking out a rumor that insurance companies were considering increasing Homeowner rates for users of Facebook and Twitter because burglars are “shopping” for victims on social media sites. Pleaserobme.com was abuzz for a while because it would aggregate and stream location check-ins into a list of “all those empty homes out there.” It then described the recently-shared locations as “new opportunities.” The site would even allow you to filter the listed tweets by location or by Twitter user. The espoused goal of the site was to warn online tell-alls of the potential downside to public location-sharing. You can still visit the site but there is little left of it. As far as the rumors about increasing HO rates, I found a number of news articles and blog postings mentioning such a potential increase. They all refer back to a website that sells insurance in the United Kingdom and can be found at Confused.com. Darren Black, head of home insurance at Confused.com, states, “I wouldn’t be surprised … if insurance providers consider it in their pricing of an individual risk.” Mr. Black may prove to be correct, but I have my doubts. Over-sharing of information on social network sites can be dangerous, but just think of all the potential obstacles to surcharging for it.
Quote of the Month
"One of the symptoms of an approaching nervous breakdown is the belief that one's work is terribly important." --Bertrand Russell
Newsletter CE Winners
Winners will be announced each month in this newsletter and should contact Angela at angela@insurancece.com to redeem their winnings. To win, you must be signed up for this newsletter. Spread the word. This month’s winners are: Nancy Shell @ Tricor Insurance in Beloit, WI
Joe Fischer @ Fischer Agency in Bellaire, MI
Charlee Braun @ Braun-Vrabel Insurance in Mecedonia, OH
Who We Are:
InsuranceCe is brought to you by The Van Wyhe Group, an education firm coaching agents in ways to add value to the insurance transaction. Agents who master adding value attract business rather than chase it. | May's 50% CourseThe Water Damage Claim
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