Congress Votes To Delay Flood Insurance Hikes

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

Homeowners worried about their premiums going up can now breathe a measured sigh of relief. Both the U.S. Senate and House have voted to delay steep hikes in flood insurance rates for millions of property owners in coastal and flood-prone areas. 

Read our update to this story here.

Washington, DC – In late January, the U.S. Senate voted to delay certain measures of the 2012 Flood Insurance Reform Act, delaying significant rate hikes in federal flood insurance rates. Last week, the U.S. House passed its own version of the bill. Assuming Senate agreement, hundreds of thousands of homeowners will see a welcome cap on their premiums.

The bill delays huge premium increases that are supposed to phase in next year and beyond under new and updated government flood maps, by retaining most existing flood insurance subsidies. The delays are in order to give the Federal Emergency Management Agency (FEMA) time to complete an affordability study and develop recommendations for a policy to assist working class homeowners who cannot afford their revised premiums, and to guarantee that its updated flood maps are accurate.

These changes follow an overhaul to the National Flood Insurance Program (NFIP) that Congress passed in 2012 (the Biggert-Waters Flood Insurance Reform Act (BW-12), which you can read in full at this link), to stabilize the bankrupt program. The premium increases that were set to occur resulted from changes to how the government analyzes flood risk, using modern weather patterns and environmental changes to create a more accurate reflection of “true flood risk.”

Under the 2012 changes, owners of second homes, frequently flooded properties and businesses in flood areas would gradually lose existing subsidies and pay 25 percent more yearly until they reach an actuarially sound rate.

Sensing negative immediate impacts of BW-12, the House and Senate recently passed separate reform bills to reverse some of the changes. January 30^th saw the Senate’s initial version of the bill, which ultimately was a broader attempt, and ultimately set out to delay many of the intended premium increases.

The House version of the bill is slightly more conservative. Approved on March 4^th, it seeks to provide retroactive funds for people who have seen large flood insurance premium increases due to the sale or purchase of a home, and limit increases to 15 to 18 percent, depending on specific flood map data.

Although it’s yet to be seen if the House version passes through the Senate and becomes federal law, recent rumblings from Washington have provided little negative feedback. Several key Senators have been on record stating that approval is likely. Although it’s not a full-on delay, relieving affected homeowners from any worry, it’s a positive for those who would be financially affected.

Many Coloradans lost homes, cars, and businesses in the
path of the floods that swept the state in September 2013.
(Photo By Helen H. Richardson/The Denver Post)

The overall message to homeowners is that if you currently own a flood insurance policy or are concerned with it as a potential risk, enjoy the additional funds in your bank account for the time being. However, continue to be informed of your home’s risk and changes to premiums following the final government policy.

We can help you assess what this all means for your home (and your bank account), to make sure your home is well protected. Call us or visit us online for an easy quote, or more information.

John Jacquat: (303) 834-1001

‘Small’ equipment loss can be a big thing

Posted on March 11, 2014

A small business may depend on equipment such as a cooler for flowers.

When you hear machinery and equipment discussed as an available insurance coverage, you may envision huge mechanical or electrical apparatus associated with large-scale operations or massive production floors.

You may conclude that your family-run flower shop or small- to medium-sized business doesn’t need this type of coverage.

Remember that insurance is about protecting your business from loss, and loss must be considered in the context of your individual situation.

• An unexpected mechanical failure of a small refrigeration system component at an inconvenient time – for example, the day before Mother’s Day if you run a flower shop – may result in several thousand dollars of lost stock. Repair bills could be catastrophic for your business. In financially tough times, the expense may even threaten your ability to stay in business.
• A power surge could destroy or damage the new – but just out of warranty – phone system or computer servers upon which your accounting business depends.

By comparison, a large business may be able to absorb an equipment-related loss of several hundred thousand dollars with nothing more than a few budget adjustments.

So, who has the greatest machinery and equipment loss exposure?

When you consider that mechanical breakdown is much more likely than a major fire loss, doesn’t it make sense to consider purchasing mechanical breakdown coverage for your business – no matter the size?

The good news: it’s easy and convenient. Coverage can be added through endorsement to your existing commercial policy or, if you prefer, through purchase of a separate policy.

Call us and we can help you to determine the type and amount of coverage that’s right for your situation.

John Jacquat: (303) 843-1001

Submitted by Wayne Pinney

Remodeling? Keep rebuilding cost in mind

Posted on March 4, 2014

Make sure the insured value of your home keeps up with your home remodeling plans.

While stuck indoors this winter, did you look around and plan any home projects? Whether you do it yourself or hire a contractor, remember to update your homeowner insurance as you increase your home’s value.

The Coverage A limit on your homeowner policy is the amount of insurance you have to reconstruct your home in the event of a total loss. All costs associated with replacing or rebuilding your home are considered when developing this Coverage A limit. When you make changes that increase the value of your home, you may also need to increase the coverage limit.

Reconstruction cost is the cost to hire a contractor to replace the home as it is, in today’s marketplace, using materials and design of similar quality. Determining the reconstruction cost of your home can be a challenging and complex process. In most situations, reconstruction cost does not reflect the market value, tax assessor value or the initial construction cost of the home – even on a new home.

Construction industry statistics indicated that there was a downturn in home improvement expenditures after the recent economic recession. But now, things are starting to turn around.

Bill Shaw, GMR, GMB, CGP, a remodeler from Houston and chairman of the National Association of Home Builders Remodelers, recently commented that 2013 ended on a high note for remodelers. (See: “Remodeling Market Index Steady at Historical High.”) “We expect to keep this positive momentum going in 2014 as more homeowners will continue to take on remodels and repairs that had been postponed in the downturn.”

As you plan your next project, take an inventory of your home’s new features. Consider interior changes as well as exterior. Does the addition on your home have a different roof material than the rest of your home? Does the new deck you built include a kitchen, built-in grill or electric fireplace? Is your contractor making time this winter to install built-in bookshelves and TV cabinets? Are you finishing your attic area to create an extra bedroom? Did you upgrade your windows?

You may put lots of time into picking out countertops and appliances for your new basement kitchen, type of wood for cabinetry, color of brick to match the original portion of your home, quality of decking materials and other factors. Remember to share these important changes with your agent. Most insurance companies offer a replacement cost endorsement to ensure you will get the full reconstruction cost to rebuild your home in the event of a covered total loss, or a percentage more than the limit of insurance on your declarations page. You may also wish to explore this option with your agent.

While changes and updates you make to your home are important, consider other factors when estimating the cost to rebuild your home. Cincinnati Insurance (one of our carriers) discussed a number of them in their blog “7 factors to help nail down your home’s reconstruction cost”. Their blog “Don’t be surprised by the cost to rebuild your home” explores tools available to calculate replacement cost. And their blog“Insurance TLC for your historic home” describes building features to consider for older homes.

Discuss your homeowner coverage with us to be sure your home and the investment it represents are adequately insured in the event of a loss.

Reach out to Laura for a quick and easy policy review:                                                                   Office: (303) 834-1001 // Direct: (303) 532-4909
Email: laura@purerisksolutions.com 

Submitted by Julie Nolan

Is your business protected from hail?

Hail can cause significant damage, severely disrupting
your business and costing you time, money or even
customers, without adequate protection or insurance.

Most areas of the country experience hail storms that can cause significant damage to rooftop equipment, severely disrupting your business and costing you time, money or even customers.

A major hail storm can severely damage fins on your heating, ventilation and air conditioning equipment, rendering it inoperable. That may affect your operations or cause you to cancel functions.

You can take a few steps to help keep your business running smoothly and avoid down time by protecting the equipment that keeps your customers and employees comfortable.

Hail guards serve as a protective shield for your valuable heating, ventilation and air conditioning equipment, as well as roof vents and cooling equipment, which are highly susceptible to hail damage. Large hail can severely damage a unit, but small pellets can cause harm as well. Condenser coil damage, not noticed or addressed, affects the coil’s efficiency, increases your costs and shortens the useful life expectancy of your equipment.

Hail guards come in a variety of sizes and shapes, but most meet the needs for common equipment such as fans, air conditioners, condenser units, heaters and skylights. Many contractors offer customized options for hard-to-protect items. Look online for hail guards to find more information, resources and various types of guards.

When purchasing hail guards, consider ones that are:

• strong enough to resist hail
• porous enough to allow sufficient and unrestricted air flow
• close enough to the unit to obstruct hail that strikes the roof and bounces up to the unit
• equipped with taut mesh/fabric guards that have sufficient clearance from louvers or fins to prevent hail from deflecting into the fins

In most cases, hail guards warrant the investment when you consider the widespread frequency of hail storms and the relatively low cost of the guards compared to the down time, efficiency and shortened life or replacement of your valuable HVAC equipment. Contact your HVAC contractor or equipment manufacturer for more solutions to protect your valuable equipment and keep your business in business.

Submitted by Scott Robinson and Stephen Dale

Safeguard valuable business records and papers

Take steps to protect paper documents and records

Even in our electronic, computer-driven world, few businesses can operate without acquiring a number of valuable papers and physical records. Losing them to a fire or natural disaster could seriously affect business operations. Before you have a loss, take steps to protect valuable papers, or consider ways to store copies.

You know your specific business needs, but valuable papers and records may include:

• property deeds or construction plans
• patient, customer or employee records (remember that some may contain information protected by state and federal privacy laws, requiring additional protection measures)
• financial documents
• original copyrights or patents to key products
• product specifications
• manuscripts or blueprints
• customer lists
• licenses, permits, contracts

Any business could experience a loss of valuable papers and records, most commonly from an accidental cause such as a fire. Earthquake or weather events such as tornado, hurricane or flood also account for a significant number of losses. Water damage can also occur from a plumbing failure, accidental discharge from a fire suppression system or backup of sewer and drains. And documents sometimes are the target of criminals seeking proprietary data or information for identity theft.

Replacing your valuable papers and records can be expensive and time consuming. Take precautions to protect your business by storing copies of documents and records at an off-site location.

Most commercial insurance policies include limited coverage to replace valuable papers and records. Additional coverage can be added to your policy by endorsement to cover certain situations at your business or when working off-site. Your insurance agent can help you determine how much coverage you need to protect your business.

When a loss occurs, your insurance claims representative can assist you with locating vendors that specialize in remediation and restoration of valuable papers and records.  USA.gov provides assistance with replacing vehicle registrations, tax returns, county and federal documents.

Submitted by Karen Roop

Insuring Your Peace of Mind: Why we do what we do (Part II)

Greetings fellow Erie-area residents!

Like you, this week in itself could not go by quickly enough. Stress? Nah. My life’s work is in insurance. My job is to give you peace of mind, to alleviate your potential stresses. Naturally, I feel the need to set a worthy example.

But in the event that it wasn't obvious – although I’m not originally from Colorado and therefore cannot claim to be a natural Broncos fan, I’m looking forward to the big game this Sunday. I have one word for the many of you who are… Omaha!  

Hi, I’m John. I’m the President and founder of Pure Risk Solutions. If you live in Erie, you may know me. If not, there’s a chance you've seen me around. Why? Well, this community is extremely important to me. I’m the guy who lives up the street; who you may have sat next to at the last Chamber of Commerce meeting; who you perhaps saw at our tent at one of the many Town Of Erie events. I earned my degree from the University of Colorado at the Leeds School of Business (go Buffs!), and ever since, my family and I have been fortunate enough to call this area home. There’s a sense of pride that comes with that and a certain peace of mind it instills. I couldn't possibly be more appreciative for both.

I also consider myself to be an avid and loyal supporter of local business. Along with Pure Risk, I recently partnered in opening a new cidery and brewpub (The Old Mine) in Erie just below the insurance office. To me, it’s incredibly rewarding to be able to engage with the community. When I see friends, neighbors, and fellow residents come through the door of either establishment, I know I’m accomplishing my goal.

Speaking of small businesses, at Pure Risk, a large number of our clients include those who own them. If you are a small business owner and don’t feel like you’re adequately covered, or if you simply want to see what you may be missing – please call us. We have the expertise in this area to help you get the most out of your money.

Last week, my colleague, Dave Godel, kicked off our two part blog post series on why we’re passionate about what we do at Pure Risk and what drives us as insurance agents. I’d like to continue that discussion.

Simply put – I got into the insurance industry because I like helping people. And insurance is about people. If you were to break it down, that’s really what it was created for: to prepare folks for the future and to protect them from the curveballs that life can sometimes throw.

And what’s worth protecting? As a husband and father of two young children, to me, it’s family. There is nothing more reassuring than to know that I’m doing everything I can for them. Of course, insurance is also about ensuring peace of mind (a common theme at PRS!) in protecting anything that you consider to be important – be that family, your home, car, or business.

Overall, to me, insurance is only successful when it adequately protects the people it covers. You see, after graduation, I worked for one of the big conglomerate agencies. As Dave mentioned in his post – the general focus of those places tend to be “the next sale.” and not providing proper client service.

When I created Pure Risk Solutions, I was inspired to start an agency to take insurance back to the basics. The goal was and is still today, to cultivate a culture founded on integrity, hard work, responsiveness, and an ever-growing knowledge for our clients, our industry, and the ways they can most positively connect. This is what I stand for, and the foundation upon which Pure Risk is built.

So as we get further into the new year, I encourage you to think about the people and things around you that you consider to be most important. I understand the peace of mind that comes from protecting the things I love most, and I want to help those around me to do the same. Please feel free to call me, or stop by the office or brewpub. We are right around the corner.

As a conclusion, I’m going to say it now – Broncos 24, Seahawks 20. Celebrate safely, Colorado!

Warmest regards,

John

303-834-1001

Insuring Your Peace of Mind: Why we do what we do (Part I)

Dear Neighbor,

A belated Happy New Year 2014!

It’s January in Colorado. It’s cold. Your neighbor didn't shovel their share of the sidewalk. Starbucks just discontinued making the banana-ginger-rosemary latte, you so dearly love. You’re kicking yourself for not spending the extra $500 to have seat warmers installed in your new car (#firstworldproblems)… ugh, winter in suburbia.

Obviously we all know that we’re fortunate in some way. But those items – and due respect for lack of political-correctness here – still suck. Funny enough, over my time working at Pure Risk Solutions, I've encountered numerous people who have said the same about insurance.

Why? Well, I get it. I dearly love the industry, and its innovation and ability to help people. But some have had bad experiences - perhaps a claim which was never paid, or three hours spent filling out a mind numbing application. Let me try and counteract the stereotype a bit - or at least show you how you can be proactive in mitigating these common frustrations, by pointing some of them out.

       Confusing Policies

“You need to obtain this policy because of x/y/z, and although this other policy is perfect for you in 99 ways, the 100^th will disqualify you.” It can be smoke and mirrors, and also frustrating, indeed. In an ideal world, there would be one policy perfect for everyone. But it’s important to realize that there’s no one-size-fits-all explanation or policy. Which can become even more apparent if you have...

Bad Agents

Seriously. Not to throw any of our competitors under the bus or write a Jerry Maguire-esque manifesto, but a good agent (such as those you’ll find at PRS), should be someone you can trust and relate to. A good agent will take the time to learn about the needs of you and your family, and through knowledge and experience within the industry, provide policies, understanding (explain the technical jargon!), and results which are best for you. Goals should not be driven primarily by sales, or boxed into quotas, but should focus on the satisfaction of clients.

Insurance is Intangible with no Return on Investment

Hey, we’re 21^st century Americans here. There’s no shame in saying that we enjoy material items. But you can’t hold an insurance policy in your hand or display it on your mantle (and by this I mean the benefits, not the actual paper contract), and unless you need it, it may feel like you’re getting absolutely no return on your investment! The thing is – you don’t want to have to collect that return. Think of it as if you’re paying for peace of mind. It’s not 'glamorous', but it’s necessary, even if…

Some Insurance is Mandatory

Do you drive? Do you like to do it legally? Boom – you need car insurance. Live in the United States? Bam – you need health insurance. It’s a fact we all need to live with. But in an imperfect world, accidents happen. The peace of mind mentioned above is worth the part of your paycheck that is extracted to provide it.  

Please just know that like my colleagues at PRS – I, Dave Godel, am in the insurance business because I’m in the business of helping people. My goal is to get to know my clients and earn their trust, so as to take the guesswork out of choosing a policy by providing them with options. Attention to detail is a big thing to me, and one I pride myself in having. It’s also the reason why I work at a small agency - to avoid the corporate bureaucracy, to be able to do just that.

Further, the insurance industry is important to me now more than ever because I’m a father. If I were to tell you honestly, my main goal in life is to provide guidance for my children so that they can become caring, productive adults, who are hardworking and honest. Their protection and the steps I can take to ensure their future peace of mind and successes are of the utmost importance to me. In this, like with insurance, I’m looking at the long term rather than just the present.

Overall, insurance can be confusing, but it doesn't have to suck. Please feel free to call me, and allow me to take care of the legwork for you. Oh, and of course - all the best to you and yours as we embark on 2014.

Cheers,

Dave

(866) 738-2180