The top 5 reasons to promptly report a claim

Report a claim promptly to your insurer 
to make sure your coverage isn't affected.

Your insurance policy is merely a promise until you have a claim, but many people hesitate to report a claim to their insurer. Here are five reasons why you should promptly report a claim if you have an incident. Read more of this post

When in doubt? Ask us for advice on whether to submit a claim, and let us help you through the process.

Prepare your building to weather the cold

Temperature extremes from summer to winter place a heavy burden on the buildings we live in and the places we work. With little warning, gusting winds, heavy snow and bitter temperatures can create a weather event that could collapse your roof, freeze and rupture your piping and cause havoc in your life.

But prudent loss control strategies you implement before winter can protect your home or business and minimize the impact of weather-related property damage, business interruption and other losses.

Cold weather states are not the only places vulnerable to extreme winter weather losses. In reality, property owners in moderate climate states not normally associated with harsh winter weather tend to suffer the most costly losses because they are typically unprepared for extreme conditions. The winter of 2014 was one of the costliest since 1980, with $1.5 billion in insured losses filed between January 1 and February 21, 2014, alone, according to the Insurance Information Institute.

PREPARING BUILDINGS

Be prepared by keeping on top of routine building maintenance. Look for any evidence of previous damage to your building’s structure, paying special attention to damaged roof material or equipment that may need repair or replacement. Also take note of any areas that could be unstable during severe winter weather.

• Maintain roofs in good condition. Repair leaks, secure flashing and clear debris from the roof, roof drains, downspouts and overflow outlets.
• Check that gutters and downspouts are secured to buildings and clear of leaves and debris. Were they iced over during the previous winter? Consider installing heat trace (electric cable or tape) to prevent major icicles and ice dams.
• Assure that all building openings are weather-tight to prevent cold air that could cause water pipes or fire protection systems to freeze. If you recently built an addition or renovated, how were existing utilities – especially water and sprinkler piping – protected from frigid temperatures?
• Test any low-building-temperature alarms.

PREVENTING BUILDING COLLAPSE

Heavy snow, freezing rain or a series of constant rain showers and wind can cause precipitation to accumulate, leading to roof failure. Blocked roof drains and overflows can cause precipitation to accumulate and overload the roof. Many older buildings that were not required to provide secondary overflow drainage, such as scuppers, do not provide adequate drainage when primary drains are blocked.

Collapses can damage the building and its contents, destroy fire protection systems and unleash dangerous live utilities, including electricity and flammable gases. These losses can be made worse by water damage from rain intrusion or broken water piping.

Consult with a qualified contractor to assess your roof condition before you experience a problem.

By Troy Dohmeyer for The Cincinnati Insurance Companies

Additional coverages keep you afloat after a flood

My Insurance Doesn’t Cover What?! Understand common misconceptions that can leave you paying for a policy that may not cover you in case of water damage, and additions you can make to your policy to ensure you're covered.

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Ongoing patterns of severe weather mean homeowners and business owners have experienced everything from record snowfalls and tornadoes to recurring storms with wind, hail and record amounts of rainfall – all leading to a record number of flooded homes and businesses.

Water claims under personal or business insurance contracts can be confusing and easily misunderstood, and standard insurance does not cover everything.

Read more of this post

by Michael Sullivan

Lightning – or power surge? I’m not worried; I’m covered

Lightning and power surge can 

cause damage

In the old days – I am 54 and have been in the insurance business since 1987 – a lightning claim investigation was a pretty simple process. I would simply review whatever resources were available and determine if a thunderstorm had passed through the area on the day the loss occurred. If a storm could be verified, the loss claim was validated.

Lacking other facts to go on, it’s possible that some validated lightning loss claims could have come from other causes. Today, thanks to weather satellites and the World Wide Web, lightning strikes can be verified with pinpoint accuracy.

Why should this matter to you?

Lightning can strike at a considerable distance from your premises and – through the electrical distribution lines that serve your building – result in a power surge that damages your equipment just as a direct lightning strike would.

Because damage was not caused by a direct lightning strike to your premises, it may not be covered by your property policy. But when you purchase equipment breakdown coverage, you don’t need to worry; the damage caused by lightning, or lightning-related surge, is covered.

More information is available about the science of lightning and ways to protect your property:

• The National Weather Service dispels common myths about lightning.
• Eastern Kentucky University’s Smart Computing site offers tips for preventing power surge damage to computers.
• The Illinois Emergency Management Agency has a Lightning Safety Awareness Guidebook.

See our recent post on predicted cost and claim increases in 2014, due to extreme weather patterns like lightning and hail, and how to protect your business, home, and wallet. 

Submitted by Wayne Pinney

President Obama Will Sign Flood Insurance Relief Bill

Read our original post about the bill here: 
Congress Votes To Delay Flood Insurance Hikes

Last week, we wrote a post focused on the decision by both the U.S. Senate and House of Representatives to pass versions of a bill that would reverse certain measures of the 2012 Flood Insurance Reform Act, delaying significant rate hikes in federal flood insurance rates. These delays would mean continuation of a welcome cap on premiums for hundreds of thousands of homeowners.

Since clearing Congress, the bi-partisan bill has now been sent to President Obama, who White House officials say will sign it.

Critics say Washington is caving to pressure to undo some of the overhauls made to correct the budget crisis, for a program that is not fiscally sound or viable in the near term, which may be a detriment to taxpayers in the future. But for homeowners in flood zones, this comes as welcome news and a relief to their wallets.

Read more about the recent update here: http://www.insurancejournal.com/news/national/2014/03/16/323451.htm

2014 Insurance Claims Predicted To Increase

More than 5.6 million people hold flood 
insurance policies in over 21,800 communities 
across the country

Floods. Tornadoes. Hurricanes. Fire. Hail. Damages and spending on weather disasters and a changing climate have been on the rise since 1980 and are projected to increase, in part due to climate change. We Coloradans experienced the catastrophic effects that severe weather can have on our homes, business, and communities last September when we received an average year’s worth of rain in seven short days. The cleanup effort in the aftermath of the flood described as “biblical” by the National Weather Service is just the beginning of costs associated with such severe weather. 

Are you fully covered? Review your policy and make sure it protects you in case Mother Nature decides to impress us again in 2014.

Statistics show the reality that we’re seeing a change in weather patterns. Experts predict more severe weather this year than last, indicating the possibility of higher costs to individuals and communities nationwide, as weather-related claims have risen steadily over the last several years.

Global reinsurance firm, Munich Re, released a report focusing on what it says is a decades-long, increasingly severe series of such events and the costlier insured losses that have accompanied them. They found that the number of weather-related loss events in North America over the last three decades has "nearly quintupled," experiencing the largest increases in weather-related losses of any country. From tornadoes to hurricanes to wildfires, the continent is vulnerable to “every type of hazardous weather peril,” especially because there are no long mountain chains crossing its middle that might break up hot and cold air.

“When global warming combines with natural weather cycles,” the report states, “the risk of severe weather is intensified, and these factors will result in even larger loss costs from natural peril events than what we have seen so far.”

Experts predict extreme weather patterns to
increase in 2014 

The severe flooding and fires that affected many of our communities, families, and friends in Colorado in 2013 serve as a reminder as to why it’s important to make sure our homes, businesses, cars, and medical care are properly covered in case of catastrophe. We can look at what's happened and use that as a bit of a guide going forward. We should prepare for the weather risk changes that lie ahead.

Colorado was also struck by hailstorms last summer. Almost 70,000 total claims were filed due to the disaster, and nearly half of those claims were for vehicles. The Rocky Mountain Insurance Information Association (RMIIA) estimated that more than $85 million of the damages from those storms were vehicle-related.

Hail claims are an example of optional coverage that compensates policyholders for weather-related damage. Statistics show that about 75 percent of all U.S. drivers add comprehensive coverage to a policy. A policyholder may consider skipping a comprehensive policy in order to get a cheaper quote, but in light of recent reports on increasingly severe weather across the U.S., choosing comprehensive coverage is likely a smart move.

In terms of optional coverage, comprehensive is one of the last you should give up.  It only amounts to a small portion of your auto insurance bill, but covers a lot of events, especially weather that can be unpredictable.

It’s smart to be proactive with your agent to make sure you are prepared for weather-related problems that may arise. Review catastrophes from the past year, and consider how preparedness would have helped give you peace of mind. To us at Pure Risk Solutions, that means preparing for the coming year, protecting our families, making sure the things we love most – our families, our businesses, our homes, our dreams – are well cared for and protected from weather and other things that are out of our control.

Are your home and car fully covered in case of more extreme weather this summer? For a review of your policy, call or visit us online.

John Jacquat: (303) 834-1001