Homeowners Insurance - Deductibles, Know Your Options

Homeowners Insurance Deductible – Know Your Options

A homeowners insurance deductible is the amount you are willing to pay in the event of a loss to your home. It is a means for a client to share in the initial cost of a claim and defines the line between what repairs are your responsibility versus those of the insurance company. A deductible also provides a monetary incentive to properly maintain and protect your property from damage. Thus, the higher the deductible, the lower your insurance premiums.

Standard Homeowners Insurance Deductible

Policies will list a standard homeowners insurance deductible, often termed the All Other Perils (AOP) deductible. The most common AOP deductibles are $1,000, $2,500, and $5,000, though significantly larger ones are available for high-value homes or high-risk environments.

Wind-Related Deductibles

Many policies stipulate a separate deductible for damage by wind. These deductibles are larger than the standard AOP deductible. Since wind is the most common homeowners insurance claim, it is no wonder insurance companies handle this exposure carefully. Understand the wind and any other special deductibles on your policy and when they apply. Common wind-related deductibles include:

Wind

If your home is located near the coast or in an area where damaging winds are a common threat, your policy will likely state a separate, higher deductible for this peril. Wind deductibles can be a specific amount, such as $10,000, or expressed as a percentage of the property coverage, such as 2%. To calculate the amount of a percentage deductible, take the insured amount of the home and multiply it by the deductible. For example, if you insure your home for $200,000 and your wind deductible is 2%, that equates to $4,000 ($200,000 x 2% = $4,000). Wind deductibles vary between 1% and 10%.

Wind/Hail

Instead of a simple wind deductible, certain policies stipulate a separate homeowners insurance deductible for damage due to wind or hail. Note that this kind of deductible is not as advantageous since it applies when damage is cause by wind or hail and not just wind alone.

Named Storm

If your policy specifies a named-storm deductible, this deductible applies if the storm that causes the damage is numbered/named by the U.S. National Weather Service, the U.S. National Hurricane Center, or the U.S. National Oceanic and Atmosphere Administration. For example, hurricane Irene or tropical storm David. Unlike wind/hail, a named storm deductible is better than a wind deductible because it only applies for larger, named-storm events.

Hurricane

A hurricane deductible is one of the best wind-related deductibles since it only applies when your home is damaged by a hurricane. Most policies require the storm be categorized as a hurricane by the National Weather Service or U.S. National Hurricane Center.

Choosing a Deductible

Policies exist to protect your home, but claims affect future premiums. When choosing a homeowners insurance deductible, ask yourself, “What amount am I willing to pay for repairs before I file a claim?” If your answer is $2,500, there is no reason to have a $1,000 deductible. In such a situation, increase your deductible and start saving money. However, it does no good to set a deductible so high you cannot pay it. Ask your insurance agent for homeowners insurance prices for different deductible options. The proper deductible is a balance that only the client can determine.

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

                                                                       Serving Florida since 1964

fRisky Friday - Risk Management for Garages - Managing Common Hazardous Substances Used By Auto Garages

Managing Common Hazardous Substances Used By Auto Garages

Chemicals in auto repair shops are tools of the trade, necessary as any other. In the course of a day, garages will utilize solvents such as brake cleaner, carburetor cleaner, gasket remover, and parts cleaner. Lubricants are essential and include motor oil, transmission fluid, gear oil, and grease. Many substances are flammable – gasoline, starting fluid, acetylene, and propane to name a few. Auto body shops in particular handle highly volatile paints, varnishes, lacquers, and thinners.

Even though these substances are daily hazards, safe operations are necessary and attainable.

Identify

The first step in any risk-management plan is identification. What are the risks? When considering this for auto repair garages, define risk in a broad sense. Consider potential to cause damage to:

• human health
• property (buildings, contents, vehicles in your care)
• the environment (pollution)

For example, a few rags just used to wipe up a small gasoline spill may not represent a high hazard to health, and it certainly does not represent a large pollution risk. However, it can quickly become a fire hazard if near a vehicle having a tailpipe welded.

Storage

Store hazardous materials properly. Read through and familiarize yourself with the safety data sheets (SDS) of each chemical. But don’t stop there. Plain, common sense is an excellent risk reducer.

• Store in a well-ventilated, well-lit area.
• Control who has access to the materials, and when their use is warranted.
• Utilize proper storage equipment, such as fire cabinets and metal drums.
• Maintain safeguards, including spill containment systems.
• Guard personal protective equipment by storing it separately from the materials for which they provide protection. For example, store respirators separately from solvents.
• Be familiar with which materials are incompatible. Maintain separate storage areas if necessary.
• The vapors of certain chemicals are harmful. Many solvents in particular produce harmful or corrosive vapors.
• Store chemicals only in their original, sealed containers and with their original labels intact. Do not switch containers unless necessary.
• Keep an emergency spill kit near the storage areas. For certain substances, spill kits can be as simple as water, sand, or absorbent pillows.

Transportation

When transporting hazardous materials, plan for an accident. Write down cleanup procedures. After an accident is no time to figure out the proper course of action. Ensure all materials are safely secured so that no spills occur on rough roads or even during a mild accident.

• Store chemicals in their original containers and secure them so they cannot slide, tip, or fall.
• Maintain a record of the chemicals you are transporting. If a leak occurs in an accident, being able to identify the escaped chemical can greatly reduce cleanup costs.
• Bring the appropriate personal protective equipment for handling purposes.
• Keep an emergency spill kit in the vehicle.

“After an accident is no time to figure out the proper course of action.”

Disposal

Disposing of hazardous substances properly is the garage’s responsibility and should be performed with understanding and caution. While some empty containers can simply be rinsed and thrown away, others must be handled in a specific manner. In addition, disposal of unused product must be considered. Collection points maintained by many local municipalities for hazardous substances are usually only open for households, not businesses. Read through the SDS and the manufacturer’s label, as disposal procedures are often explained there. Many waste management companies maintain separate services for the disposal of hazardous wastes. Contact local disposal authorities with questions.

The following resources on this topic are particularly helpful:

• Best Management Practices For Automotive Repair Shops (EPA)
• Managing Your Hazardous Waste (EPA)
• Hazardous Waste Reduction checklist
• Managing Automotive Repair and Body Shop Wastes A fantastic document containing many common Do’s and Don’ts of storage and disposal.

Bob Lancaster Insurance specializes in insuring auto repair garages and can provide safety manuals and materials to bolster your safety program. Let us help your garage create an accident-prevention mindset. Call us today!

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

                                                                        Serving Florida since 1964

Work Comp Wednesday - Florida Workers' Compensation Rates Will Decrease June 1, 2018

The Florida Office of Insurance Regulation (OIR) has approved a decrease of 1.8% for Florida workers’ compensation rates effective June 1, 2018.  The rate decrease applies to new business written on or after June 1st and to existing policies renewing on or after June 1st.  The National Council on Compensation Insurance (NCCI) filed a rate decrease with OIR as a result of the federal Tax Cuts and Jobs Act, which became law in December 2017 and which NCCI says will increase profits to insurance companies.  The rate decrease is intended to offset this increase.

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

                                                   Serving Florida since 1964

LOSS PREVENTION - How to Burglar-Proof a Business

How to Burglar-Proof a Business

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Burglars and business don’t mix well. Business owners and managers have enough to worry about. Burglar-proofing their business shouldn’t be a priority, but it is. And once robbed doesn’t preclude a second or even third break-in by the same bad guy(s). Once familiar with your business layout and contents, thieves figure out how to beat whatever you’ve done (usually little) to deter them and they know you’ve replaced the items they stole and likely fenced, so why not conduct their repeat, profitable performance.  Only one in six burglaries results in an arrest, so statistics prove many thieves are roaming the streets looking for their next victim. Facing the facts, especially for small businesses, is ‘street-wise.’ Check your business premises and see if you’re already following these anti-theft procedures.

Lock Down Securely

Using pin-cylinder locks gives great protection since these are difficult to pick. The deadbolt-type lock is your best lock defense, either with a key or a knob to set it. Thieves are frustrated with double-cylinder deadlocks that must be opened by a key from either side, since getting out of the building is just as difficult as getting in.

Good Key Sense

Some or maybe all of your employees need keys. But have a list, plus code the keys so only employees know which locks they open. Having different keys for exterior entrances and interior rooms so one key doesn’t fit all locks is a deterrent, as well.

Alarms, Noisy or Silent

Silent alarms to notify a central station are recognized as the best protection and the best way to catch thieves. Silent sensing devices also offer good protection. But even cheaper building-siren alarms do reduce the time to steal since most burglars will quickly grab and run, cutting down on losses.

Light Up the Night

Bright lighting inside and outside is usually inexpensive and often effective. Flood doors and windows with light, either motion-sensitive or constantly on. Have every entrance point, including small windows and large vents, flooded with light to discourage even highly motivated burglars. Mercury and metallic vapor lamps serve well since they are almost unbreakable.

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

                                                   Serving Florida since 1964

Protect yourself from carbon monoxide—at home and work

Every year, according to the Centers for Disease Control and Prevention, hundreds of people in the U.S. die from carbon-monoxide (CO) poisoning—and the invisible, odorless gas sickens thousands more. 

The numbers seem even more tragic when you consider that most of these deaths and illnesses are preventable. Here are tips from the Consumer Product Safety Commission and the Occupational Safety and Health Administration to help protect yourself and your loved ones at home and work. 

At home 

1. Make sure you have CO alarms—and that they work. You should have a CO alarm on every level of your home and outside sleeping areas. Test them and replace batteries regularly, too. The alarms themselves should be replaced every five years or as recommended by the manufacturer.
2. Get your chimney and furnace checked. A chimney or furnace that isn't functioning properly can lead to CO buildup inside your home. Have a professional examination and/or service before you begin using them.
3. Be careful with generators and grills. Neither should ever be used inside your home or in an enclosed space, such as a garage—even semi-enclosed spaces like porches can be risky, too. Keep generators at least 20 feet away from the house when in operation.

At work 
In general, the same precautions for homes apply here, but there are a few additional considerations for the workplace, particularly one where gas-powered machinery is used:

1. Be mindful of ventilation. Every year, workers are poisoned by CO while using fuel-burning equipment in areas that don't have adequate ventilation.
2. Try using different tools indoors. Consider electric tools or ones powered by compressed air, and if possible, avoid using forklifts, pressure washers and other gas-powered equipment. Ensure machinery and tools are maintained properly, too.
3. Report unsafe conditions or issues. If you see something that might cause CO buildup, or you suspect CO poisoning in you or a co-worker, get people out of the area and report the problem to your employer immediately.

Whether you're at home or work, always be on the lookout for symptoms of CO exposure: They include dizziness, drowsiness, headaches, and nausea. If you suspect an issue, leave the area as soon as possible and call 911—because when it comes to CO, it's better to be safe than sorry.

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

                                                   Serving Florida since 1964

Avoid These 6 Responses To Crisis

Crises are inevitable for any small business. There’s going to come a time where something will go wrong – whether because of you, an employee , or something completely out of your control. How you deal with that crisis can have a negative impact on your company. We want to make sure that doesn’t happen, so we've collected a few key pointers on how not to manage a crisis and how to help you get through one successfully.

1. Don’t Make Excuses

Some crises that hit your business will require you to explain yourself to your customers. In those times, you might be tempted to justify or excuse what went wrong. “This is the worst possible way to handle a problem,” says Griffith. “It can make you look like a rookie in the eyes of your customers and peers.” Instead, take ownership of the mistake that caused the problem. You will be respected for it. “Respect and perception,” explains Griffith, “are huge tools when it comes to growing your business.”

2. Don’t Overreact If Your Employee Created the Crisis

When an employee makes a serious mistake that creates a crisis, some managers will unleash their inner Gordon Ramsay and let them have it. That’s a terrible idea. Employees are human and they make mistakes. “Losing your cool on them does nothing to advance the business,” says Griffith. “A calm discussion about the problem is more effective 100% of the time.” If you’re not calm, you can cause long-term damage over an often short-term problem. “I like for my employees to feel like a part of the team. Overreacting can cause resentment that makes for a very tense work environment.”

3. Don’t Ignore Processes

“Call me a pessimist, but I always expect the worst, and try to have a plan in place to combat it,” says Alpha Art’s owner. If you aren’t on some level prepared for any kind of crisis, you will be ill-equipped to minimize any damage to your business it can cause. Don’t pretend nothing bad will happen. It eventually will. Anticipate what could go wrong and prepare for it. “There aren’t many things in business that can’t be taken care of with a well-thought-out system. If you create a proven way to handle all aspects of your business (and stick to it), the amount of headaches that arise will decrease significantly,” says Griffith.

4. Don’t Hide

Some crises will be customer-facing, and in those moments you might be scared to tell them or maybe just hope they don’t notice. That’s a bad way to handle a situation, says Griffith. “Be 99.9% honest with your customers. If you can tell that your issue is going to have a negative effect on them, and there is no way to avoid it, let them know. Nobody likes being blind-sided.” But Griffith does add a condition to that: inform, but don’t over explain. “Thoroughly explaining the problem can sometimes come across as making excuses. They don’t always need to know every detail of the problem.”

5. Don’t Settle For Offering an Apology, Fix the Problem

When things go wrong in a way that can affect your customers, it can be tempting to take the easy route of just preparing to offer an apology instead of looking for a way to fix the problem. Easier isn’t better. “Many times an apology after the fact is not enough,” Griffith says. “Not doing everything in your power to solve the problem before it reaches your customer,” he says, “is one of the worst ways to deal with a crisis.”

6. Don’t Focus on the Mistake, Focus on the Solution

When a mistake that leads to a crisis happens, you may want to immediately find out how and why things went wrong. Resist that temptation. “It is important to find out where and how the mistake occurred, but it does not take priority over solving it,” says Griffith, especially when the mistake can impact your customers. “Number 1 priority of anyone in business should be to take care of their customers.” That doesn’t mean you have to ignore how the error came about. Just tackle it later. “Once you have completed the task at hand, then go to work diagnosing the who’s and how’s and fix it in a professional manner.”

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

                                                   Serving Florida since 1964

ARE YOU COVERED?

An Open Gate Leads to Heartbreak

 

The Mariani family was in their front yard when their 81-year-old neighbor, Stewart, came across the street for a quick chat. The family didn't realize that their gate was unlatched and out came their gregarious golden retriever, Gus to greet him.

As Stewart bent down to say hello to Gus, the dog jumped up and knocked him over. Stewart twisted and fell backward, breaking his arm and hip and hitting his head on the sidewalk. 

Stewart was rushed to the hospital, where he ultimately succumbed to his injuries. 

The family's standalone personal umbrella covered Stewart's medical expenses and ongoing litigation once their underlying homeowners insurance was exhausted.

Claim: $1 MM

                    Contact us for all your Insurance needs! (321)725-1620 
                                              Bob Lancaster Insurance

Serving Florida since 1964