Hiring a Home Contractor Guide

When hiring a contractor, there are several important factors to consider and research prior to making a decision on who you’ll hire.

The State of Florida requires that certain trades require specialized training and licenses. The state also has limits on what functions contractors can do on-site. Contact your homeowner’s insurance company for recommendations of contractors in your area, and as you continue your research, please use these helpful tips.

Your Contractor Should be Licensed and Insured

Check that the contractor's license exists and is in good standing.

When you receive the state license number, verify that it is a real license number associated with the contractor’s name and is in good standing with the state of Florida. Visit the State for Florida Division of Professional Regulation website at http://www.myfloridalicense.com/dbpr and click on the “Verify a License” link in the top menu. Here you will see the current status of the license and when it expires. After you’ve checked the validity of the license, make sure there aren’t any complaints by clicking the “View License Complaint” link at the bottom of the screen of any selected license.

Verify that the contractor is insured.

During the interview process, ask the contractor to provide you with proof of workmans compensation and liability insurance.

 

Watch for Red Flags

Pay attention and look for signs if the contractor...

• Doesn’t make eye contact or take notes; is not friendly.
• Promises guarantees as a sales pitch. It’s only a reliable guarantee when it is supported by a warranty company.
• Wants to work “off book” to get paid cash and save you money.
• Offers you discounts for getting your friends, family or neighbors to hire their services.
• Offers you a discount for using material left over from another job. The material could be stolen or defective.
• Solicits door-to-door. This may not be a concern, but be wary if they are not local.
• Asks you to sign an “Assignment of Benefits” agreement.
• By signing this agreement, you could end up paying for more than what’s covered in your policy. If your repairs are claim related, check with your insurance company first.
• Pressures you for a quick hiring decision.

Entering into Contract

You and your contractor need to agree on the project plan, establish the cost of material, and create a scope of work. 

Leave nothing to chance: discuss with your contractor the repair or replacement of doors, windows, trim, wall coverings, flooring and other structures. 
Everything that goes into a project should be put in writing. Make sure your selections are documented and are included as part of the contract.
Doublecheck the plan. Check measurements and make sure all of the electrical and plumbing requirements are what you need. If you have any questions, ask your contractor early in the process.

You should have a clear understanding of what is involved to repair or replace the damage to your home. It is a good idea to consult with legal counsel to review the proposal the contractor provides you. An experienced attorney will be able to identify if any information is inaccurate or missing.

 

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

Bob Lancaster Insurance

Serving Florida since 1964

Florida Legislative Update for Florida Businesses

Here is a summary of new laws of interest to small businesses that take effect July 1, 2014: Unemployment Compensation: Employers are now able to pay their unemployment tax in installments for a $5 fee. This option has been available temporarily; now it is a permanent option. Telephone Solicitations: Telemarketers are now prevented from sending text messages to phone numbers that are registered on the state’s Do Not Call List. (Phone calls are already prohibited.) Florida’s Do Not Call list is maintained by the state Department of Agriculture and Consumer Services. To block unwanted sales calls and text messages to your residence or mobile phone, go to the state’s website at https://www.fldnc.com/. It is free to sign up, and registration lasts 5 years. Taxes: Starting August 1st and running through August 3rd, certain back-to-school items will be exempt from the Florida sales tax. Tax-free items include: Clothes and shoes that are $100 or less. Wallets, purses, backpacks and diaper bags that are $100 or less. School supplies like pens, pencils, paper, lunch boxes, scissors, etc., that are $15 or less. The first $750 of personal computers and related accessories that will be used personally (i.e., not for business purposes). Construction: The Florida Concrete Masonry Education Council has been established to educate and train skilled masons, laborers and apprentices. The new law allows the concrete industry to create a voluntary self-assessment on each concrete block to boost masonry training. Workers’ Compensation: Businesses that receive a stop work order for not having workers’ compensation insurance will be able to resume operations quicker. These businesses will now be able to pay a $1,000 down payment on their fine and enter a payment plan to receive a release from a stop work order from the Department of Financial Services (DFS). Businesses will also have 10 days, not five, to respond to DFS requests for records before being subject to a stop work order. LICENSE FEE REDUCTION FOR CONTRACTORS LICENSED BY THE STATE CONSTRUCTION INDUSTRY LICENSING BOARD The Construction Industry Licensing Board and the Florida Department of Business and Professional Regulation have approved a $100 “fee holiday” for the 2014 and 2015 renewal cycles for certified and registered contractors who are renewing their licenses. During the fee holiday, certified and registered contractors renewing an active license will have their fees reduced by $100. Certified and registered contractors renewing their inactive licenses will have their $50 inactive renewal fee waived in its entirety. All contractors (active or inactive) will still be required to pay the $5 unlicensed activity fee and the $4 Florida Building Commission fee in order to renew their license. All fees must be paid by the renewal deadline (August 31, 2014 for certified contractors and August 31, 2015 for registered contractors) to avoid additional fees. Please see article below for more information on the difference between certified and registered contractors. Also, please note that the tax holiday for license renewal discussed below only applies to those contractors licensed by the Construction Industry Licensing Board and does not apply to electrical contractors. CONTRACTORS: STATE LICENSES HAVE TO BE RENEWED BY AUGUST 31ST If you hold one of the following state contracting licenses, your license expires on August 31st of every even-numbered year: State-Certified building contractor State-Certified electrical or alarm contractor State-Registered electrical or alarm contractor You have until August 31,, 2014, to complete your required continuing education and pay the fee to keep your license active. More information for each type of license is below. Building Contractors: A building contractor performing the following types of construction work must hold a state contractor’s license from the Florida Department of Business & Professional Regulation’s Construction Industry Licensing Board: general contracting; building; residential contracting; sheet metal; roofing; air-conditioning; mechanical; swimming pool/spa; plumbing; underground utility and excavation; solar; pollutant storage. Every state-licensed building contractor performing any of the above type of work falls into 1 of 2 categories: certified contractors (who can work anywhere in the state of Florida) or registered contractors (who can only work in those local cities or counties where they hold a license). Certified building contractors have taken and passed a state licensing exam. Because these contractors have proven their expertise through an exam, they are allowed to perform work under their license anywhere in the state of Florida. Certified building contractors must renew their license prior to August 31st of each even year. Prior to renewing the license, you are required by law to take 14 hours of Board-approved continuing education. The fee to renew a Certified building contractor’s license is $209. Registered building contractors are those contractors who have a local contractor’s license issued by their city or county and who must “register” their local license with the state before they are cleared to perform work. They may only perform work under their license in the cities or counties where they hold a local license; they may not work statewide. Registered building contractors’ licenses expire August 31st of odd-numbered years, so you have until August of next year to renew your license. If you are a Registered building contractor, this article does not apply to you. Some construction work does not require a state license, such as cabinets, countertops, flooring, paint, wallpaper and window treatments. If you perform this kind of work, you may need a local contracting license from your city or county, but a state license is not required. If you do not hold a state contractor’s license, you are not subject to state licensure and this article does not apply to you. Electrical and Alarm Contractors: An electrical contractor is someone who installs, repairs, alters, adds to or designs electrical wiring, fixtures of appliances which generate, transmit or use energy. An alarm contractor lays out, fabricates, installs, maintains, repairs, monitors, inspects, replaces or services any electrical device or signaling device used to detect a burglary, fire, robbery or medical emergency. Every licensed electrical or alarm contractor falls into 1 of these 2 categories: certified contractors (who can work anywhere in the state of Florida) or registered contractors (who can only work in those local cities or counties where they hold a license). Certified electrical or alarm contractors have taken and passed a state licensing exam and hold a state license issued by the Florida Department of Business & Professional Regulation. Because these contractors have proven their expertise through an exam, they are allowed to perform work under their license anywhere in the state of Florida. Registered electrical or alarm contractors hold a local electrical or alarm contractor’s license that has been issued by a city of county (not the state of Florida). Registered electrical or alarm contractors (also called “locally-licensed”) may only perform work under their license in the cities or counties where they hold a local license; they may not work statewide. These locally-licensed contractors are required to register their local license with the state Department of Business & Professional Regulation before they are cleared to perform work. Both Certified and Registered electrical and alarm contractors must renew their license prior to August 31st of each even year. You cannot renew your license until you have completed 14 hours of Board-approved continuing education requirements. The fee to renew a Certified electrical or alarm contractor’s license is $300. The fee to renew a Registered electrical or alarm contractor’s license is $125. To renew any of the state-issued licenses discussed above, visit DBPR’s website at myfloridalicense.com and click on “Renew Your License.” If you have any questions about renewing your license, please contact the Florida Department of Business and Professional Regulation at 850-487-1395. Contact us for all your Insurance needs! (321)725-1620 Bob Lancaster Insurance Serving Florida since 1964

Hurricane Season - Are you prepared?

We are now 6 days into the Atlantic hurricane season. As we are seeing violent storms extending to areas of the country that aren’t necessarily used to tropical storms, I thought it might be a good idea to provide some tips to prepare for hurricane season. Ready.gov has some pretty good tips on their website.

I would advise everyone look over the entire list of suggestions, but here are some highlights:

Before the Storm:

• To begin preparing, you should build an emergency kit and make a family communications plan.
• Know your surroundings.
• Learn the elevation level of your property and whether the land is flood-prone. This will help you know how your property will be affected when storm surge or tidal flooding are forecast.
• Cover all of your home’s windows. Permanent storm shutters offer the best protection for windows. A second option is to board up windows with 5/8” exterior grade or marine plywood, cut to fit and ready to install. Another year-round option would be installation of laminated glass with impact-resistant glazing. Tape does not prevent windows from breaking.

After the Storm:

• Continue listening to a NOAA Weather Radio or the local news for the latest updates.
• Stay alert for extended rainfall and subsequent flooding even after the hurricane or tropical storm has ended.
• If you evacuated, return home only when officials say it is safe.
• If you cannot return home and have immediate housing needs. Text SHELTER + your ZIP code to 43362 (4FEMA) to find the nearest shelter in your area (example: shelter 12345).

The bottom line: Hurricanes are serious business and you need to take them seriously. Being prepared can make the experience a lot less painful.

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

Bob Lancaster Insurance

Serving Florida since 1964

Torrential Tuesday - Why do I need flood insurance?

Flooding is the #1 ranked natural disaster in the country and yet there are 3 common misconceptions about flood insurance that permeate in the United States.


#1 My Homeowners Policy Covers Flooding

Your homeowners policy more than likely does not cover flooding. You may have optional coverage for back-up of sewers and drains, but flooding caused by natural disasters, or similar events are provided by different agencies such as The National Flood Insurance Program to allow policy holders the maximum flexibility in coverage and save them money with lower premiums.

#2 I Don’t Live in a Flood Zone, So I Don’t Need Flood Insurance

Believe it or not, we all live in a flood zone which has the potential to fill with water any time. The difference is the severity or risk of flooding in your particular zone. However, industry-wide, over 20% of all flood claims come from people who are NOT in high risk areas, and 1/3 of all disaster assistance goes to flooding victims according to FEMA. So we’re all at risk. Per the National Flood Insurance Program, flooding is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow caused by various conditions such as severe storms and sources of rapid water accumulation.

#3 Flood Insurance is Too Expensive

Depending on the level of your risk zone (determined by FEMA), flood insurance is available for as little as $57/year and averages as little as $129/year for those in “Preferred Risk Zones.” Even in higher risk areas, flood insurance is typically less than $400/year which is much less than the costs associated with recovering after a flood. Cost estimates by Floodsmart.gov estimate that just 1” of water in a 2,000 sq. ft. home can cause over $20,000 in damage.

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

Serving Florida since 1964

Tuesday's Tips - Why You Need an Insurance Checkup

It's all in the numbers -  tens of millions of US households have insurance policies that are seriously out-of-date. As a result, the following questions should be asked. If the answer to one or more of these questions is yes, you should contact us as soon as possible so that your insurance policies can be updated.

• Have you recently started a home-based business? If so, this loss exposure may not be adequately protected.
  
• Has your house undergone major renovations or improvements? If so, your home may be underinsured.
  
• Has your marital status changed? If you have recently gotten married, for example, you may now qualify for a multi-car discount on your car insurance.
  
• Have you recently purchased new valuables or collectibles? If so, you may be seriously underinsured for these items. Specialty policies or endorsements can properly cover them.
  
• Are you now participating in a carpool? If so, your exposure to injuring passengers has grown and your liability limits may need to be increased.
  
• Are you now retired? If so, your car insurance premium will likely drop since your annual mileage should decrease.
  
• Have you added a burglar alarm with central station reporting for your home? If so, you could qualify for a homeowners premium discount.
  
• Have you replaced your roof?  Have you updated major heating, ventilating, and air-conditioning systems? If so, you may qualify for additional discounts under your homeowners policy.
  
                         Contact us for all your Insurance needs! (321)725-1620  
                                                               Bob Lancaster Insurance
  
  
  Serving Florida since 1964
  
  

Eight Surprising Comprehensive Auto Insurance Perils

Even the most careful drivers occasionally get into accidents -- that's why auto insurance was created. But your car can be damaged even if you're not in a crash -- which is why there's comprehensive auto insurance. Comprehensive is an optional coverage, and without it, you might just be left holding the bag financially, according to the Insurance Information Institute.

Simply put, comprehensive is coverage for events "other than collisions." And here are eight things that you might not realize are covered by your comprehensive auto insurance policy.

1. Earthquakes and Floods

Homeowners insurance policies may exclude earthquakes and flood, but your comprehensive auto insurance is truly comprehensive when it comes to disasters. Hurricanes, tornadoes, volcano eruptions, earthquakes, and floods -- they're all covered.

2. Fire, Even When Caused by a Car Defect

Vehicle fires occur every 96 seconds in the United States, according to the National Fire Protection Association, and although non-crash fires are rare, some are caused by electrical problems or a defective fuel system. Indeed, nearly every major car company has recalled one of its vehicles due to a fire-related defect. A new study from the Highway Loss Data Institute shows that the claim frequency for vehicles with fire-related defects -- prior to a recall -- is 23 percent higher than for other vehicles.

3. Rodent Damage

A squirrel snuck into your garage and gnawed through your car's wiring system? Unlike homeowners insurance, which excludes damage caused by pests, your comprehensive auto policy may provide coverage; check your policy carefully to be sure.

4. Meteorites and Asteroids

Okay, there's a pretty slim chance your car will get hit by an asteroid, but it's not out of the realm of possibility, and if it happens, you would be covered by your comprehensive policy. More importantly, the coverage extends to almost any type of falling object, including hail, trees, and the neighbor's kid's baseball.

5. Riots

Unfortunately, every now and then, a victory celebration or peaceful protest can get out of hand and morph into a full-blown riot. If your car were to get caught in the middle, any damage resulting from the incident -- from being flipped or from such things as explosions, fire, and smoke -- would be covered. The same goes for acts of vandalism.

6. Deer, Birds, or Other Animal "Contact"

Watch out for that deer! An estimated 1.22 million deer-vehicle accidents occurred in the United States between July 1, 2012, and June 30, 2013. But deer aren't the only animals that can damage your car. Bears have a habit of breaking into cars around national parks, looking for food that visitors leave behind. Your trail-mix supply might be a goner, but with comprehensive auto insurance, you won't have to "bear" the damage alone.

7. Theft

According to the Federal Bureau of Investigation, more than $4.3 billion were lost to motor vehicle theft in 2012, and the average dollar loss per theft was $6,019. Nobody wants his or her car to be a crime statistic, but at least you would be covered if your car disappears in the night.

8. Broken Windshield 

A cracked or shattered windshield is a fairly common occurrence. If a piece of gravel or other road debris suddenly puts a ding in your vehicle's windshield while you're driving, it can quickly spread and become a large and dangerous crack. In fact, in many states, it is illegal to drive with a cracked or broken windshield. Not only is such damage covered by your comprehensive policy, but also many companies offer the option of no-deductible coverage for glass damage specifically.

Check with your insurance professional to find the best auto coverage for your situation; in many cases, a policy that combines liability with comprehensive and collision coverage provides the full breadth of insurance coverage you need, especially on a newer car.

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

Serving Florida since 1964

Work Comp Wednesday - Lessons from Losses

While cutting down a tree, a worker dropped a chainsaw on his forearm causing a severe laceration. He had to be transported by helicopter and underwent surgery for tendon damage. He also had to endure a second surgery for a skin graft due to the extent of his wound. He missed several weeks of work with complete restriction to his arm. He also received occupational therapy over an extended period of time. The injury caused extreme pain and suffering and cost over $120,000.

Some jobs are inherently dangerous as well as the tools required to complete these tasks. Combined with human error this can lead to catastrophic outcomes. There are several things that can be done to minimize the potential for injury when using chain saws and other hazardous equipment:

 Clear away dirt, debris, small tree limbs and rocks from the saw's chain path. Look for nails, spikes or other metal in the tree before cutting.

 Shut off the saw or engage its chain brake when carrying the saw on rough or uneven terrain.

 Keep your hands on the saw's handles, and maintain secure footing while operating the saw.

 Proper personal protective equipment must be worn when operating the saw, which includes hand, foot, leg, eye, face, hearing and head protection.

 Do not wear loose-fitting clothing.

 Be careful that the trunk or tree limbs will not bind against the saw.

 Watch for branches under tension, they may spring out when cut.

 Gasoline-powered chain saws must be equipped with a protective device that minimizes chain saw kick-back.

 Be cautious of saw kick-back. To avoid kick-back, do not saw with the tip. If equipped, keep tip guard in place.

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

Serving Florida since 1964