Month: June 2015

Why Contractors Need a Charlotte Builder’s Risk Insurance Policy

Written By Charlotte Insurance on June 30, 2015. It has 0 comments.

You spent countless hours preparing a bid, answering the client’s questions, and understanding their specifications. Beating out dozens of other major construction companies, you were awarded the job. It’s the biggest you’ve ever won. Now you’re hiring new people, finding new subcontractors, and looking forward to adding this project to your list of satisfied clients.

Then disaster strikes. A fire takes out most of the job site. The job is on hold indefinitely as the cause of the fire is investigated. Your clients have determined they don’t have the money to start over.

Very little can prevent fire and theft, but the job could have continued if you or your client had builder’s risk insurance.

In a perfect world, your clients would purchase the insurance themselves in order to make sure their own investment is well protected. When they won’t or can’t, you can purchase your own coverage. Consider it a value add for them, and extra peace of mind for everyone.

WHAT IS BUILDER’S RISK INSURANCE?

Your liability insurance will protect you from lawsuits when accidents happen or an employee screws up. A builder’s risk policy kicks in when an unfinished building project is damaged or destroyed for a variety of reasons: fire, theft, some natural disasters, lightning, explosions, and other causes. This kind of policy can cover the building materials and/or the structure.

Instead of a job being put on hold indefinitely, this kind of insurance will cover the cost of replacing what was lost, and get you back to work quicker. Consider a Charlotte builder’s risk insurance policy for added protection for you and your business, above and beyond your typical coverage.

WHAT KIND OF COVERAGE IS AVAILABLE?

The specifics of your coverage will depend on the policy you choose. Work with your insurance agent and share the details of specific jobs to give them an idea of the best coverage for you. Here are a few things to ask about:

  • Coverage for scaffolding, office trailers, fencing, signs, cribbing, and more.
  • Soft costs like legal fees, taxes, and architect fees that can and will continue to accrue after the job site goes down.
  • Equipment breakdown coverage – including testing and inspections that may be needed to get your equipment back to work.
  • Risk management practices to avoid disasters and problems.
  • Theft of building materials and equipment, whether it’s on site, in transit, or in storage.

If you’ve been in business for a while, you know that whatever can go wrong, will. It only makes sense to make sure you have the right insurance coverage to pick up the pieces and keep working.

Think about your worst nightmare during new construction. Now imagine that there’s no way to recover, no way to get help, and no way to keep working. A Charlotte builder’s risk policy can’t fix every problem, but it goes a long way to keeping your job running even when the worst happens. Contact us today so we can answer your questions and work up a free quote for your business.

A Multi-family Apartment Building can be a Great Investment. Make Sure you Protect It!

Written By Charlotte Insurance on June 23, 2015. It has 0 comments.

No one goes into business or makes a large financial investment in order to lose money. Whether it’s long-term financial security or simply an entrepreneurial spirit, you bought a multi-family apartment building for a reason. Make sure you protect your investment with the right insurance coverage.

SPEND A LITTLE MORE TO SAVE IN THE LONG-RUN

The urge to purchase the easiest, least expensive policy is very real for many rental property owners. It’s hard to believe that natural disasters may affect you or that a tenant might sue. With the wrong insurance coverage, you may find yourself facing insurmountable costs for repair, replacement, medical expenses, and more.

Look for all-risk insurance policies instead of the named-peril policies. Our agents will work with you to find as broad a policy as possible. The best policy is the one with the least exclusions, because anything that can happen, will happen. Look for a policy that covers damage from fires, explosions, earthquakes, tornados, and hurricanes, but understand that policies may exclude one or all.

To know what kind of coverage you’re likely to need, review the property’s history, especially if you’re a new owner. Determine what, if any, natural disasters have affected the property in the past. Look to see if there have been any previous liability issues and whether they’ve been corrected or not. Do your best to make sure that you purchase a policy that doesn’t exclude known issues or previous natural disasters. Understand that your coverage can and will be affected by your location. If you live in areas where hurricanes or earthquakes are a reality, your costs may be higher or your policy may include more exclusions.

WHAT SPECIFICS SHOULD YOU LOOK FOR IN YOUR POLICY?

In the long-run, replacement value coverage may cost more, but it will give a better return in the event damage or destruction occurs. Work with your agent to find a policy with full-replacement costs included. Some disasters may impose specific limits, especially if you live in an area prone to certain issues.

Business interruption insurance is typically included in your policy. Make sure you know the limits and restrictions. If something happens to limit the amount of income you can take in from tenants, you’ll want to know if you can recoup the lost income.

As a business owner, (and owning an apartment community is a business) you’ll want to make sure you that have a Charlotte liability insurance policy in place. This will cover any claims brought against you for damage or injury that occurs to a third party while on your property. If someone slips and falls at the pool or damage occurs to a unit during routine maintenance, you may be responsible for medical costs, replacement costs, or repairs. General liability coverage covers those costs and should be included as part of your insurance portfolio.

Don’t let poor insurance coverage be the reason you don’t see a return on your multi-family apartment building investment. Contact us for a quote or to review your current policy. We want to make sure you and your property are protected.

Image courtesy of Flickr user NNECAPA Photo Library.

Building your Dream Home, Business, or Commercial Building? Make Sure you have a Builder’s Risk Policy in Place

Written By Charlotte Insurance on June 16, 2015. It has 0 comments.

You’ve made the decision to go for it. You’re finally going to build your North Carolina home, new business, or commercial building!  You know exactly what type of wood floors you want, the color of the marble for your bathroom, the exact brick you’ll use on the outside. The plans are finished, and you’re ready to go.

You’ve read through the contract between you and the builder multiple times. Your contractor has all of the necessary insurance policies in place, but do you have the insurance that you need? If you don’t have a Builder’s Risk insurance policy, the answer is “no.”

WHAT IS A BUILDER’S RISK POLICY?

Sometimes called a “course of construction policy,” a Builder’s Risk policy protects your home or business while it’s being built. Yes, your contractor has liability insurance to cover you in case of neglect on their part, but any other damage that occurs will be your responsibility. This policy pays for damages up to your coverage limit.

You can purchase coverage both the structure and the materials. You can choose a 3, 6, or 12 month policy. There are also options for time extensions though, in some cases, only one extension of the coverage may be allowed.

Your coverage limit is determined by the total completed value of your home, including materials and labor costs, and does not include the value of the land.

WHAT’S COVERED IN THE POLICY AND WHAT ISN’T?

When considering a Builder’s Risk policy, it’s important to understand what is covered, and what is not.

THINGS THAT ARE COVERED:

  • Fire
  • Wind (this may be limited in hurricane-prone areas)
  • Theft
  • Lightning
  • Hail
  • Explosion
  • Vandalism
  • Vehicles

THINGS THAT ARE NOT COVERED:

  • Earthquakes
  • Employee theft
  • Water damage
  • Weather damage to property left out in the open
  • Acts of War
  • Government action
  • Contract penalty
  • Damage from faulty design, faulty planning, faulty workmanship, or faulty materials.

Some of what isn’t covered by the Builder’s Risk policy may be covered by your builder’s insurance or other insurance policies that you currently have in place. We’ll work closely with you to determine exactly what risks you have and to make sure that you have all of the necessary insurance policies in place.

You’ve waited a lifetime to see your dream home come to life. Don’t lose everything simply because you didn’t purchase a Builder’s Risk policy. And don’t depend on your contractor’s insurance policy to cover everything that could go wrong on the job site. This is more than a house, this will be your home for many years to come. Make sure that it’s protected from the start.

If you’re thinking of starting construction or if you’ve already got blueprints in hand, give our team a call and let’s get started on a free quote. We’re happy to answer any questions that you may have.

Why an Annual Insurance Review is so Important!

Written By Charlotte Insurance on June 11, 2015. It has 0 comments.

When one first moves in to their new home, the one thing in common is they must purchase a homeowners insurance policy. Most people do not understand the importance of periodically reviewing their policy and evaluating their needs. Often, the cost to rebuild increases, but some policies may not allow for an increase. What if there’s been a renovation or upgrade? How would one know whether this is covered without a review? Having a major loss is not the time to find out.

One way to assess your needs is to do a home inventory which is a detailed report of all your belongings. Many tools to assist homeowners with this can be found online.

Speak with an Agent at Charlotte Insurance!

A Charlotte Insurance professional can answer many of your questions such as:

  • “If I rebuild today, do I have enough coverage?” You purchased your home 10 years ago…do you have enough coverage to rebuild at today’s costs? Have you added any new appliances? Remodeled a bathroom or bonus room? Finished a basement? Charlotte Insurance can do a newly valued “Cost Estimator”.
  • “My neighbor had a sewage pipe become backed up. Is this covered?” Unless you have optional water backup coverage then no, it’s not standard. If a sump pump breaks and your sewage is backed up, your credit cards may become backed up too from paying for this cost out of pocket! Charlotte Insurance offers coverage for this.
  • “What about outdoor appliances or landscaping?” Have you added a new shed? Swimming pool? What about a sprinkler system? These items, plus that new riding lawn mower you just purchased may not be covered. Ask us.
  • “I bought an expensive piece of jewelry. What if it’s lost or stolen?” Depending on your policy, if it’s over $1,000 it may not be covered. Whether it’s your new diamond ring or expensive watch, you will not be too happy if this item becomes missing and you’re not covered. Allow us to schedule your valuables on your policy.
  • “I have teens. Teens can sometimes be irresponsible. Do I have enough liability insurance?” In reality, all of us can be irresponsible at times. Charlotte Insurance offers Umbrella Protection. Add $1,000,000 or higher coverage on top of your Home & Auto Policy. We don’t want to think of it, but what if you’re driving someone else’s children and have an accident? Better be covered properly.
  • “Do I qualify for discounts if I bundle my insurance or for any other reason? The answer is YES, in most cases. Have a security alarm? Smoke alarms? Do you have a higher degree of education or perhaps are a school teacher, police or fireman, Doctor? Sometimes these can be offsetting factors that allow for more discounts. Combine your Home & Auto Insurance together and in most cases save even more.

Like any other periodic maintenance, an annual review with Charlotte Insurance is the best way to cover, what is for most people, their biggest investment.  This is something that you should not put off.  Unlike physical exercise, Charlotte Insurance will do all the heavy lifting. No worries.  You won’t even break a sweat.   To get started, call us at (704) 552-5888 or email us at quote@charlotteinsurance.com, today.

Charlotte Insurance Named #1 in North Carolina with Auto Owners

Written By Charlotte Insurance on June 3, 2015. It has 0 comments.

**NEWS**NEWS**NEWS**

FOR IMMEDIATE RELEASE

Auto-Owners Insurance is pleased to announce that Charlotte Insurance, of Charlotte, North Carolina, has been named the #1 agency of the Top 10 growth agencies for the Company in the state of North Carolina for 2014. The agency was recognized at a luncheon meeting in Charlotte and at a reception with all regional associates, where they and other recipients were presented with a plaque commemorating their accomplishment. Charlotte Insurance has represented Auto-Owners since 2014.

Dan Thelen, Executive Vice President of Auto-Owners, thanked the agency for its support and its business, stating, “Their growth and support only help to make the entire community stronger and more secure. We are grateful they choose to do business with us.”

Auto-Owners Insurance was founded in 1916 and has served North Carolina since 1958. Auto-Owners Insurance is a Fortune 500 company and is the 15th largest property/casualty insurance company in the nation, based on written premium. Auto-Owners Insurance Group is one of only 12 groups of insurance companies in the United States to receive the highest rating possible, A++ Superior, by A.M. Best, which is a nationally recognized rating agency for insurance companies. Auto-Owners is headquartered in Lansing, Michigan, and serves policyholders in 26 states.

Charlotte’s Hurricane Season is Upon Us. Are you Prepared?

Written By Charlotte Insurance on June 2, 2015. It has 0 comments.

June 1 was the start of hurricane season. You’ve probably purchased your batteries and flashlights. You may even have a hurricane kit already set up and waiting. The moment a storm is named and headed your way, you know to fill up on gas, stock up on shelf stable foods, and hunker down to wait it out. You’re as prepared as you can be.

Or are you?

As a responsible homeowner, you already have homeowners insurance, so you should be fine. Right? Hurricanes bring a lot of wind and rain, which your home insurance will cover. They also bring flooding and water damage; which is not covered through your regular insurance policy.

YOU’RE GOING TO NEED FLOOD INSURANCE TO TRULY BE PREPARED FOR HURRICANE SEASON.

Your homeowners insurance policy should cover any damage caused by hurricane winds. If you look at your policy documents, you’ll even see a separate deductible for hurricane claims. But if you think that’s enough, think again.

For those in North Carolina’s high-risk areas, you can purchase a standard North Carolina flood insurance policy that is backed by the National Flood Insurance Program (NFIP). Your rates will vary based on where exactly you live, as well as how your home is constructed and its elevation. Your agent can show you current flood zone maps to give you an idea of your risk of flooding.

The standard flood insurance policy has two parts. You’ll need a policy for your home, which offers maximum coverage of $250,000, and a policy for the contents of your home, which offers a maximum coverage of $100,000.

Don’t wait for a storm warning to purchase your policy. Flood insurance policies take 30 days to go into effect.

For homes in low risk areas, you can choose a low-cost preferred risk policy. It will protect your home and the contents in the event that a small flood affects you, or if a larger flood manages to make it’s way to your area. Because there’s no way to know if a storm will break levees, burst dams, or cause flooding in other ways, a preferred risk policy is a good idea even if you don’t think you have anything to worry about.

FLOOD INSURANCE DOESN’T COVER EVERYTHING.

For those with standard flood insurance policies, there are specific circumstances when you will be covered. For other instances, your homeowners policy will be used. Flood insurance doesn’t cover everything.

  • Water must enter your home from outside.
  • Pools aren’t covered.
  • Floods that affect only you, unless the affected area is two or more acres, will not be covered.
  • Living and business expenses, cash, and important documents aren’t covered. Your flood insurance will not cover the cost to replace these items.

Talk with your agent when you purchase your policy so that you know exactly what’s covered and what isn’t.

A few quiet hurricane seasons make it easy to believe that every season will be storm-free. Every hurricane season is unique and even the smallest storms can have a devastating impact.

Make sure that you’re truly ready for the summer storm season ahead of time. Contact us today for more information, or for a free quote.