Basement flooding is one of the most devastating things that can happen to someone’s home. It can cost thousands of dollars to remediate your property and creates an increased risk of “health related issues” due to the spread of bacteria or the growth of mold (mold is a separate claim which requires an endorsement to your policy). Sump pumps should be checked every year to ensure they are working properly and should have battery backup when a severe storm causes a power outage. A sump pump can prevent or reduce the damage to your property, but will eventually fail if it is not maintained properly. It is also important to make sure that the discharge line from the sump pump is not frozen during the winter, as well.
“According to the Insurance Information Institute (III), damage from a sewer backup can cost a homeowner anywhere from $10,000 to $20,000.”1 Unfortunately, many people, in an effort to reduce cost, choose not to include an endorsement for “water backup, sump pump discharge and overflow”, nor do they include an endorsement for “mold, fungi and bacteria, dry rot”. After Hurricanes Katrina and Rita many homeowners on the Gulf Coast learned that their long time home Insurance policies neither covered flood damage, nor damage from sewer backup.
Here are some things to help you avoid or minimize damage from backed-up sewer systems:
- Do not put grease, paper towels, diapers, or other refuse down toilets or sinks. This will help prevent clogs in the pipes that connect the home to the sewer.1
- If the sump pump, French drain, or other flood control system is connected to the sewer main, that connection should be removed by a plumber. Typically, such an arrangement is illegal.1
- A backflow-prevention device should be installed. The investment of between $500 and $5,000 will go a long way toward protecting a home.1
- If your client does have a sewer or drain backup into the home, the affected area should be thoroughly cleaned with disinfectant, making sure the area is completely dried, as well, in order to prevent disease and further damage from mold and mildew.1
Being proactive and conducting regular maintenance checks on critical systems work great to help prevent unnecessary damage to your hard earned property and belongings. The best way to be prepared for one of life’s unexpected moments is to connect with a competent insurance advisor that will properly structure your insurance portfolio by:
analyzing your unique circumstances to identify and reduce your vulnerability
preparing options that make sense and reduces your risk exposure profile
explaining the “pros and cons” of each course of action; helping you make a qualified decision
Your advisor will, after you make a decision and select one of the coverage profiles, acquire the coverage and establish your portfolio. If your insurance agent or advisor isn’t looking at your total risk exposure, I guarantee that you have gaps in your coverage that could cost you a hundreds of thousands of dollars in the event of a tragic or catastrophic loss. Call me at 848-303-5973 or email me at firstname.lastname@example.org. If you are willing to send me a copy of your policy and spend approximately 30-45 minutes of you time, discussing your needs, I will personally review your policy, make preliminary recommendations based on your needs, and have my staff of dedicated service professionals find you the best coverage for the best price. We work for our valued clients, not our insurance carriers.
It is going to get worse! Many #homepolices have #IdentityTheft protections. Call before you have a claim, 848-303-5973. Most homeowner’s policies give the option of having Identity Theft Coverage up to $15,000 or more.
IDENTITY THEFT RESOLUTION SERVICE
If a member is a victim of identity theft, a fraud specialist, partnering with your Insurance Carrier, will assess the situation in detail and work closely with the member to resolve the identity theft crisis by:
There is no way to prevent the threat of Identity Theft, but you can be prepared if it ever happens to you! Call 848-303-5973 (if viewing on mobile device) or email me at email@example.com, even to just verify you coverage.
Conover Beyer Associates has partnered with USLI to sponsor Veterans looking for a rewarding career in the Insurance Industry! Click on the Veterans PDF attached to this post and get started now!
Insurance is an important aid to commerce, industry, and private citizens, alike. Every small business, large enterprise, or individual can develop a substantial number of risks and uncertainties throughout their life and growth cycles.
It may involve the risk to:
Property, goods and personal possessions may be damaged or destroyed due to:
Many of these risks can be avoided by using industry proven techniques known as Risk Management. The process of risk management includes the practice of identifying and analyzing your exposure to loss and taking steps to minimize these exposures to levels acceptable to your company or you personally. This often involves methods or procedures that require direct insurance.
There are five basic types of risk management techniques that can be used to handle your exposures to loss. These include:
For example, developing a strict safety policy and enforcing a strict safety program that requires preventive maintenance and safety checks on machinery and vehicles helps reduce losses caused by defective and poorly maintained equipment. Most companies have a safety policy, but results come from the enforcement of the safety program that supports that policy.
For example, fire sprinkler and suppression systems reduce the size and severity of damage to your building and its contents if a fire loss were to occur. There is always tremendous liability associated with property fires.
Deductibles are the simplest example of retaining risk. If you consistently have large cash reserves from income, it may be in your best interest to have a larger deductible, which reduces your annual insurance premium. This means you may be responsible for the first $1000, $1500 or $2500 of damage to your insured property. Your qualified insurance adviser helps analyze the cost savings, in premium, determining if there is a reasonable benefit to taking a larger deductible versus establishing a smaller deductible and retaining less risk.
The most common instances of hold harmless agreements are those used by General Contractors with their many subcontractors. Subcontractors are subject to the General Contractors dictated limits of insurance that cover the potential losses due to accidents, shoddy workmanship, or unforeseen delays in completing their portion of a project.
These five principles of risk management are designed to employ the best methods possible to eliminate, prevent, reduce or transfer your risk exposure and avoid losses. Many risks can be avoided by implementing timely precautions, but some are just unavoidable, and beyond the control of a business or property owner. These unavoidable risks should be protected by insurance.
If your Risk Manager or Insurance agent isn’t talking to you about these principles of risk management, I am available to have that conversation with you to verify there aren’t gaps in your insurance portfolio. Get a “second look” for free. I live insurance and believe in the work I do for my clients. I’ll earn your trust, every step of the way!
Next: Specialty coverages that can maintain your company’s solvency!