Phyllis Van Wyhe
CPCU, CIC, CSP

The Van Wyhe Group

E-NewsLetter

Seminar CE:

OH . WI , and MI Agents

PO Box 4130
Waukesha, WI 53187
Phone (800)326-4741

Fax (800)476-2945

June 1, 2010

New Coverage to Watch
It is not uncommon for a property owner to be unhappy when the repaired portion of a roof or siding does not blend in with the rest of the building.  Replacement cost coverage, in both personal and commercial property policies, does not include a contractual obligation to match repairs to the existing structure.   A new Homeowner’s endorsement from a major direct writer appears to be a partial solution.  It applies when the home’s siding or roofing is damaged and a mismatch occurs between the new and undamaged materials.   The coverage is entitled “Matching Siding and/or Roofing Endorsement.”   For a cost of $25, the endorsement provides up to $20,000 to cover the cost to update undamaged areas of vinyl or metal siding and/or architectural asphalt shingle or 3-tab shingle roofing with new materials.  The coverage only applies when the mismatch is due to the original material being discontinued, obsolescent, or outdated.  It will not apply if a mismatch occurs because of weathering, fading, oxidation or wear and tear.  That can be problematic.  At the time of sale, you may tell the homeowner about the limitations on a coverage but that doesn’t mean he will remember the conversation two years later when he has a claim. 

Coverage Update
Last month I mentioned that the EPA has implemented a new regulation designed to protect children from breathing in the dust from lead paint.   Contractors, disturbing lead-based paint in homes, schools, and child-care facilities built before 1978, must follow specific work practices to prevent the spread of lead-paint dust.  As a result, the cost of repairing an older building after a loss can increase significantly.  We are beginning to learn how carriers will address the additional expense.  Two regional carriers have told me they will pay the additional expense on a Homeowners claim but are not yet certain about a commercial one.  One direct writer is not paying for the additional cost unless there are children currently living in the home.  A national carrier has denied coverage for the additional expense citing a pollution exclusion in all their property policies.  And for all you coverage experts who think the additional expense might be covered under Ordinance or Law, remember that O&L coverage usually includes an absolute pollution exclusion.  Let me know what you are finding.

New Target Market in Commercial
While I was out doing a seminar on innovative coverages, a Green Bay agent sent me the flyer from an E&S broker who is offering coverage for Medical Marijuana Dispensaries.  The carrier will write the property, but not stock.  They will offer liability, but no professional, products, or completed operations coverage.  And, they will only write the risk if there is no consumption on the premises.  The losses on the account should be pristine since all they seem to cover is damage to the cash register and a possible slip-and-fall claim.  Now all you have to do is get your state to authorize the sale of marijuana and you will have a new target market to pursue.

Quote of the Month:
“Try not to become a man of success but rather to become a man of value.”
Albert Einstein

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.  June's winners are:

Ginny Johnson @ Tofson Insurance in WI Dells, WI
Betty Adams @ Larkin Group in Traverse City, MI
Jennifer Runyon @ Katzbach Insurance in West Lake, 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.