I’ve written before about how to hire restoration contractors, and things to watch for. Now, here are a few tips on how to get the best prices for the restoration work you need to have completed.
• Make sure that the scope of damages is correct. You can usually get a copy of the scope of damages from your adjuster. The scope of damages lists the necessary work to be performed, not the prices.
• Make sure you get at least three estimates from three separate contractors. Inform the contractors that they are competing against other contractors.
• If any contractor finds needed repairs that are not listed on the scope of damage, insist that these repairs be listed on a supplemental estimate separate from the main estimate.
• Make sure that the general contractor bids include Overhead and Profit.
• Negotiate your claim with the insurance adjuster using the highest contractor bid. Many times, adjusters will use estimating software that has unit pricing far below market pricing. This is especially true after a major disaster such as a widespread hailstorm, tornado or hurricane.
• Once you have successfully negotiated the claim amount, go back to the three contractors and suggest that his contractors or suppliers offer better pricing. Economic times what they are today, some companies will drastically shave profits just to have the work.
• Ask your contractors to offer their professional input on ways to get the job done at reduced prices. He might recommend different floor covering, or different cabinets, or different countertops or light fixtures.
• Make a discounted offer to a contractor. Then shut your mouth. The first one who speaks loses.
• Tell the winning contractor that you prefer paying subcontractors and suppliers directly. This can be a win-win situation, since the contractor won’t have to front the money for materials. You can pay for materials out of the insurance proceeds. You can win because you won’t have to pay his overhead or profit for just paying bills.
• Don’t forget to have all vendors sign a Lien Waiver before receiving payment. No signature, no payment.
These strategies can save you thousands of dollars if you’re careful.
Saturday, May 30, 2009
Thursday, May 28, 2009
Seven Myths About Flood Insurance
Floods happen with great regularity in the United States. In recent years, we have witnessed entire cities underwater in the spring floods along the Mississippi River. However, floods can happen in unexpected areas and for unexpected reasons. Congress created the National Flood Insurance Program (NFIP) to provide insurance protection for the hazard of flood.
The standard homeowner policy (HO-3) defines flood as follows:
“...A general and temporary condition of partial or complete inundation of normally dry land areas due to:
1. The overflow of inland or tidal waters;
2. The unusual or rapid accumulation or runoff of surface waters from any source; or
3. Mudslides.
Remember Hurricane Katrina? The hurricane winds blew flood waters into areas that had never had floods before. The insurance industry denied thousands of claims, attributing the damages to flood. Thousands of property owners who were nowhere near a flood plain had their claims denied because they did not have flood insurance.
So, here are seven common myths about Flood Insurance.
Myth #1: Homeowners, renters, and business property insurance policies cover flood damage.
No, homeowners, renters, and business property insurance policies do not cover floods. The NFIP policy is a separate policy that does cover flood damage to a home or business. Contents coverage can also be added to the flood policy. Policies are available to property owners as well as property renters, whether home or business.
Myth #2: Only homeowners and business owners can buy flood insurance.
Fact is that most homeowners, renters, condo owners, and businesses in NFIP participating communities can buy flood insurance. Policy limits are:
• Home and Condo Owners - $250,000 in structural coverage, $100,000 in contents coverage
• Renters - $100,000 in contents coverage
• Business owners and renters - $500,000 in structural coverage, $500,000 in contents coverage
Myth #3: You can’t buy flood insurance if you are in a high-risk zone.
Fact is that you can buy NFIP coverage no matter where you live, as long as your community participates in the NFIP.
Myth #4: You can’t buy flood insurance if you’ve been flooded before.
Fact is that as long as your community participates in NFIP, you can buy flood insurance.
Myth #5: You can’t buy flood insurance immediately before or during a flood.
Fact is that you can buy NFIP flood insurance any time. There is usually a 30-day waiting period before the effective date of the policy. Also, the policy does not cover a loss in progress, which is defined in the policy as a loss occurring at midnight on the date your policy goes into effect. So, the new policy won’t cover past or current losses, only losses after the policy goes into effect.
Myth #6: If you live in an area that is not a flood zone, you don’t need flood insurance.
Fact is that floods occur regularly in places that are not mapped flood zones. 25% of NFIP’s claims come from low-to-medium risk zones. On the other hand, if you live in a flood zone, you likely cannot finance a home loan without buying flood insurance.
Myth #7: FEMA disaster assistance will pay for flood damage.
Fact is that unless your area is declared a disaster area, there is no FEMA assistance. Fewer than 50% of floods are declared a disaster area. And, if you don’t have flood insurance when the flood occurs, you will have to buy and keep flood coverage to be eligible for future benefits.
Don’t allow your property to be damaged by flood without having the proper insurance coverage. Get the coverage you need, and don’t wait any longer.
For all the details about Flood Insurance, go to: www.floodsmart.gov
The standard homeowner policy (HO-3) defines flood as follows:
“...A general and temporary condition of partial or complete inundation of normally dry land areas due to:
1. The overflow of inland or tidal waters;
2. The unusual or rapid accumulation or runoff of surface waters from any source; or
3. Mudslides.
Remember Hurricane Katrina? The hurricane winds blew flood waters into areas that had never had floods before. The insurance industry denied thousands of claims, attributing the damages to flood. Thousands of property owners who were nowhere near a flood plain had their claims denied because they did not have flood insurance.
So, here are seven common myths about Flood Insurance.
Myth #1: Homeowners, renters, and business property insurance policies cover flood damage.
No, homeowners, renters, and business property insurance policies do not cover floods. The NFIP policy is a separate policy that does cover flood damage to a home or business. Contents coverage can also be added to the flood policy. Policies are available to property owners as well as property renters, whether home or business.
Myth #2: Only homeowners and business owners can buy flood insurance.
Fact is that most homeowners, renters, condo owners, and businesses in NFIP participating communities can buy flood insurance. Policy limits are:
• Home and Condo Owners - $250,000 in structural coverage, $100,000 in contents coverage
• Renters - $100,000 in contents coverage
• Business owners and renters - $500,000 in structural coverage, $500,000 in contents coverage
Myth #3: You can’t buy flood insurance if you are in a high-risk zone.
Fact is that you can buy NFIP coverage no matter where you live, as long as your community participates in the NFIP.
Myth #4: You can’t buy flood insurance if you’ve been flooded before.
Fact is that as long as your community participates in NFIP, you can buy flood insurance.
Myth #5: You can’t buy flood insurance immediately before or during a flood.
Fact is that you can buy NFIP flood insurance any time. There is usually a 30-day waiting period before the effective date of the policy. Also, the policy does not cover a loss in progress, which is defined in the policy as a loss occurring at midnight on the date your policy goes into effect. So, the new policy won’t cover past or current losses, only losses after the policy goes into effect.
Myth #6: If you live in an area that is not a flood zone, you don’t need flood insurance.
Fact is that floods occur regularly in places that are not mapped flood zones. 25% of NFIP’s claims come from low-to-medium risk zones. On the other hand, if you live in a flood zone, you likely cannot finance a home loan without buying flood insurance.
Myth #7: FEMA disaster assistance will pay for flood damage.
Fact is that unless your area is declared a disaster area, there is no FEMA assistance. Fewer than 50% of floods are declared a disaster area. And, if you don’t have flood insurance when the flood occurs, you will have to buy and keep flood coverage to be eligible for future benefits.
Don’t allow your property to be damaged by flood without having the proper insurance coverage. Get the coverage you need, and don’t wait any longer.
For all the details about Flood Insurance, go to: www.floodsmart.gov
Tuesday, May 26, 2009
Home Security: Are Your Home’s Doors Break-in Proof?
Home security is fast becoming an important topic of concern here in America. As the economy worsens, the crime rate for burglaries and robberies is rising. The local news has stories almost daily of break-ins at homes and business in which the predominant method of entry is kicking in one of the exterior doors.
Over the years I have spent as an insurance adjuster, I’ve been to at least a hundred homes to investigate burglaries and help the homeowners prepare their insurance claim. Seldom have I found incidents where the burglar came in through a window. Burglars nearly always make their entry through a door.
Most people use deadbolt locks and their first line of defense. Nothing wrong with that. I’ve never seen a deadbolt lock fail. The deadbolt is not the weakest link in the chain when it comes to securing an exterior door.
The weak link is the door jamb.
For you that are unfamiliar with the term “jamb,” it is the frame to which the door is mounted by hinges. When you turn the key the deadbolt lock throws a steel bolt into a latch on the jamb.
For tens of millions of homes, apartments and businesses, the exterior door jamb is made of wood. In residential applications, the door jamb usually has a thickness of ¾”. Sometimes exterior door jambs can have a 1 ½” thickness.
The screws that mount the latchplate onto the jamb are usually ¾” wood screws, and are usually about 1” away from the edge of the jamb. So, when a bad guy kicks your door, there is only about 1” of wood in the jamb offering any resistance. One inch of pine wood, or even oak, does not give you much protection.
In almost every burglary claim I’ve handled where the burglar came in through a door, it was the wood door jamb that failed...usually on about the second kick. And the cost of replacing a damaged door and jamb can easily run $750 - $1,000.
The best solution to securing your exterior doors against break-in would be to install steel jambs and steel doors. However, that can be very expensive.
Sliding glass doors are also an easy entry point for thieves. Placing a dowel, bar or stick in the track does not prevent your door from being lifted out of the track.
There is another solution that is cost effective and works great!
Armor Concepts is a company based in Saddle Brook, NJ that has created three products that solve this security problem. They are:
• Door Jamb Armor - A patented door security and repair solution that will help stop home invasions before they begin. Door Jamb Armor can also be used to repair a previously damaged jamb and can be installed in under an hour by the average do-it-yourselfer. All pieces are made of galvanized steel and are powder coated so they will stand up to harsh weather and can be painted to match your door. You will barely notice the steel door armor once it's installed. Door Jamb Armor will allow you to turn any door into a security door that's attractive and economical.
• FIX-A-JAMB - A cheap, quick and attractive door frame repair solution
• Armor Latch - An effective and economical sliding glass door security solution. Prevents sliding glass doors from being lifted out the track.
You can see some dramatic product testing video at the company’s website at: http://www.djarmor.com One video shows use of a police battering ram. The jamb holds rock solid.
These products can be found at big box home improvement retailers like Lowe’s.
If you do not protect your doors and jambs, it will be cheaper for you if you’ll just go ahead and leave the doors unlocked. At least the thieves will only steal your belongings, not destroy your door and then steal your stuff.
Over the years I have spent as an insurance adjuster, I’ve been to at least a hundred homes to investigate burglaries and help the homeowners prepare their insurance claim. Seldom have I found incidents where the burglar came in through a window. Burglars nearly always make their entry through a door.
Most people use deadbolt locks and their first line of defense. Nothing wrong with that. I’ve never seen a deadbolt lock fail. The deadbolt is not the weakest link in the chain when it comes to securing an exterior door.
The weak link is the door jamb.
For you that are unfamiliar with the term “jamb,” it is the frame to which the door is mounted by hinges. When you turn the key the deadbolt lock throws a steel bolt into a latch on the jamb.
For tens of millions of homes, apartments and businesses, the exterior door jamb is made of wood. In residential applications, the door jamb usually has a thickness of ¾”. Sometimes exterior door jambs can have a 1 ½” thickness.
The screws that mount the latchplate onto the jamb are usually ¾” wood screws, and are usually about 1” away from the edge of the jamb. So, when a bad guy kicks your door, there is only about 1” of wood in the jamb offering any resistance. One inch of pine wood, or even oak, does not give you much protection.
In almost every burglary claim I’ve handled where the burglar came in through a door, it was the wood door jamb that failed...usually on about the second kick. And the cost of replacing a damaged door and jamb can easily run $750 - $1,000.
The best solution to securing your exterior doors against break-in would be to install steel jambs and steel doors. However, that can be very expensive.
Sliding glass doors are also an easy entry point for thieves. Placing a dowel, bar or stick in the track does not prevent your door from being lifted out of the track.
There is another solution that is cost effective and works great!
Armor Concepts is a company based in Saddle Brook, NJ that has created three products that solve this security problem. They are:
• Door Jamb Armor - A patented door security and repair solution that will help stop home invasions before they begin. Door Jamb Armor can also be used to repair a previously damaged jamb and can be installed in under an hour by the average do-it-yourselfer. All pieces are made of galvanized steel and are powder coated so they will stand up to harsh weather and can be painted to match your door. You will barely notice the steel door armor once it's installed. Door Jamb Armor will allow you to turn any door into a security door that's attractive and economical.
• FIX-A-JAMB - A cheap, quick and attractive door frame repair solution
• Armor Latch - An effective and economical sliding glass door security solution. Prevents sliding glass doors from being lifted out the track.
You can see some dramatic product testing video at the company’s website at: http://www.djarmor.com One video shows use of a police battering ram. The jamb holds rock solid.
These products can be found at big box home improvement retailers like Lowe’s.
If you do not protect your doors and jambs, it will be cheaper for you if you’ll just go ahead and leave the doors unlocked. At least the thieves will only steal your belongings, not destroy your door and then steal your stuff.
Subscribe to:
Posts (Atom)
