Gary's Blog

Pool and Trampoline Insurance Problems

Gary Hanson (Professional Insurance Strategies) — Thu, 10 Jul 2008 16:59:04 -0500

Did you know that many home insurers won't cover customers with trampolines and have restrictions for those with a pool. Check with your insurance agent before buying a trampoline or pool -- and let your agent know if you've already purchased one. If you file an insurance claim involving a trampoline or pool (especially one your insurance company didn't know about), you not only risk higher insurance bills in the future; you could have trouble finding an insurance company willing to underwrite your future coverage.

Here are some tips on how to protect yourself and your loved ones from these common warm-weather hazards.

Trampolines = Trouble
A recent study found 531,378 kids got hurt on trampolines from 2000 to 2005. The American Academy of Pediatrics Web site states, "Adult supervision will not adequately prevent injuries on home trampolines. Trampolines should be used only in supervised training programs for gymnastics, diving or other competitive sports."

Homeowners should also consider the liability of a backyard trampoline, in addition to the potential for injury. Trampolines aren't just dangerous, they're also virtually impossible to secure and adequately supervise.

Protect Your Pool and Yourself
Another backyard hazard is swimming pools. According to the Insurance Information Institute (III), about 43,000 people are injured annually in and around swimming pools each year and half of pool fatalities occur in yards of single-family homes.

Many insurers require the following before they will cover a pool:

•· An in-ground pool must have a fence with a locking gate that meets state height requirements.

•· An above-ground pool requires a self-latching and locking gate (if there's a deck) or removable ladder (if no deck).

•· Pool entrances must be locked when the pool is not in use.

•· Pools must be well supervised when in use.

•· Pools with diving boards and slides generally need to be eight feet or deeper.

In addition, the III suggests pool owners check often for hazards like glass bottles and toys, and use caution with electrical devices. Don't let anyone swim alone, especially during bad weather or if they've been drinking alcohol. And keep children away from pool filters.

Have a great and safe Summer!!!

Gary Hanson

Professional Insurance Strategies, LLC

602-481-0161

ghanson@proinsgroup.com

Course of Construction Insurance or Builder's Risk Insurance

Gary Hanson (Professional Insurance Strategies) — Thu, 13 Mar 2008 15:46:12 -0500

Getting Ready to build a spec home/commerical building or working with someone who is?

The financial institution you are working with will more than likely require this important coverage.

Builder's Risk or Course of Construction:

This is a property type of policy that indemnifies for loss of or damage to a building under construction. Insurance is normally written for a specified amount on the building and applies only in the course of construction. Coverage customarily includes fire and extended coverage and vandalism and malicious mischief. Builders risk coverage can be extended to a "special" form as well. The builders risk policy also may include coverage for items in transit to the construction site (up to a certain percentage of value) and items stored at the site

Generally, this is secured by the builder with the owner and lender named as additional insured interests on the policy. The policy is rated based on the completed value of the project and can be issued on a reporting form type of policy for builders that are building several projects at once or on a one shot basis for the occasional builder.

Gary Hanson

Professional Insurance Strategies, LLC

7575 E. Redfield Rd. Suite 235

Scottsdale, AZ 85260

602-481-0161 Phone

623-551-6716 Fax

ghanson@proinsgroup.com

www.proinsgroup.com

Arizona Home Construction-Half Day Seminars for Builders

Gary Hanson (Professional Insurance Strategies) — Wed, 27 Feb 2008 08:35:44 -0600

In an effort to bring more value to our real estate community we are going to begin offering half day seminars to our general contractors. We would like to get the Phoenix Metro real estate community involved.

Our goal is to have several of these seminars per year aimed at General Contractors building 5-10 homes per year in Arizona. The theme for the first seminar will be geared toward a build from beginning to end. The topics for our first seminar will include:

Not necessarily in this order

Project Planning

Lending

Insurance

Legal

Architectural/design

Lot Selection

Sub Contractor Selection

Marketing your build

Speakers:

Real Estate Agent

Mortgage Specialist

Attorney

Architect

Land Developer

Design Studio

There could be many more topics but, our goal is to help our builder's complete successful projects. If you have any ideas for topics or want to get involved please let me know.

Regards,

Gary Hanson

Professional Insurance Strategies, LLC

7575 E. Redfield Rd. #235

Scottsdale, AZ 85260

http://www.proinsgroup.com/

ghanson@proinsgroup.com

Homeowner's Liability Insurance

Gary Hanson (Professional Insurance Strategies) — Fri, 25 Jan 2008 19:36:01 -0600

Everyone has parties- Holiday parties, Birthday parties, Superbowl parties, etc but do you realize the risk you are at when you throw a party?

Let me lay this example out for you. Last month one of my neighbors had a Christmas party. Everyone in the neighborhood was invited. There were three kegs that were provided by the hosts along with wine and mixed drinks. There was a live band and many guests brought some type of food to share.

The backyard was beautiful- It had a huge pool, waterfall, 4 fire pits, an outside bar, and a big deck with several levels.

Now think about this for a minute- Hundreds of people are at this party, drinking, dancing, and celebrating the holiday season. The pool was unfenced and directly next to the unleveled deck where everyone was drinking and dancing. The fire pits and heat lamps were also scattered around the yard.

This is a Insurance Company's worst nightmare!

Can you begin to the see the risk the host was at for a liability hazard? This isn't even talking about what type of damage could be done to the property (couches, floors, walls, etc).

The trouble is most hosts do not know what their liability is if someone gets hurt or even worse yet gets in an alcohol related accident. There are several states that have what are called social host legal statutes, which holds homeowners responsible for furnishing alcohol to someone who gets injured in an alcohol related accident

Now, I fully expect that people are going to continue hosting parties so here are some tips to help protect yourself:

Limit your guest list to your close family and friends.

Host your party at a restaurant or bar that has a liquor license, rather then in your home.
Provide filling foods (breads and starchy foods) for guests to help slow down the effects of alcohol
Arrange transportation or other sleeping arrangements for those who have drank.
Stop serving alcohol 2 hours before the party is scheduled to end and offer coffee to guests.
Consider collecting keys when guests arrive to better control them when leaving intoxicated.
Review your insurance policy with your insurance agent to ensure you have the proper liability coverage and to check your states social host legal statutes.
Purchase a personal umbrella policy to provide extra coverage.

Gary Hanson

Professional Insurance Strategies,

7575 E. Redfield Rd, Suite 235

Scottsdale, AZ 85260

602-481-0161

www.proinsgroup.com

General Liability Insurance-Contractors (Arizona & Nevada)

Gary Hanson (Professional Insurance Strategies) — Wed, 09 Jan 2008 15:27:06 -0600

In the last two weeks I have noticed at least 6 new insurance carriers coming into the Arizona and Nevada market.

These carriers have been very aggressive with their rates, coverage, and appetite for predominantly hard risks to place like:

Roofers

Paper General Contractors

Framers

Concrete contractors and many more!

Also, if you are a General Contractor in Arizona or Nevada and are doing multi-family residences the rates for Wrap-Up policies and the coverage is the best it's been in years.

Most agencies don't specialize in construction risks- Not only do we specialize in construction risks, we are one of the few agencies to have agents that hold the CRIS designation: We are certified as Construction Risk and Insurance Specialists (CRIS). This insurance designation recognizes specialized expertise in construction insurance, and establishes one's commitment to the construction industry through an on-going continuing education component focusing on construction risk and insurance.

Gary Hanson

Professional Insurance Strategies, LLC

7575 E. Redfield Rd. Suite 235

Scottsdale, AZ 85260

602-481-0161

623-551-6761

ghanson@proinsgroup.com

Workers Compensation Rates in Arizona

Gary Hanson (Professional Insurance Strategies) — Wed, 09 Jan 2008 14:53:13 -0600

WORKERS' COMPENSATION RATES INCREASE IN ARIZONA

For the first time in nearly 15 years, average Workers' Compensation rates for Arizona employers increased first in October 2006 and again in October 2007. Rates and are set to be adjusted again effective January 1, 2008 for all 120,000 Arizona employers.

Now more than ever it is critical that employers consider alternative insurance carriers.

Why is there a mandatory rate increase for all Arizona Workers Compensation policyholders effective January 1, 2008?

Arizona Workers' Compensation rates are determined by a number of factors, including (1) the cost of medical care; (2) the cost of time-lost / disability claims; (3) the frequency of accidents; and (4) the severity of accidents.

The Arizona Workers' Compensation rate increases effective January 1, 2008 directly relate to statutory changes in the amount of disability and benefits paid to injured employees.

Scheduled Changes in Compensation Levels for Injured Arizona Employees
Date of Injury	Maximum Monthly Compensation
Prior to January 1, 2008	$2,400 per month
January 1, 2008-December 31, 2008	$3,000 per month
January 1, 2009 - December 31, 2009	$3,600 per month
January 1, 2010 - Forward	Future Legislation
What can you do to mitigate the increase? The good news is more carriers than ever are here to write your workers' compensation policy. We have at least 10 carriers that have been consistently competitive with the State Compensation Fund in Arizona. Gary Hanson Professional Insurance Strategies, LLC 7575 E. Redfield Rd. Suite 235 Scottsdale, AZ 85260 602-481-0161 623-551-6716 Fax ghanson@proinsgroup.com

I couldn't Sell My House. Now it's Vacant! Is it Insured?

Gary Hanson (Professional Insurance Strategies) — Tue, 09 Oct 2007 22:36:47 -0500

Your current insurance company probably will cancel your existing policy if your property becomes vacant. You will need to review your insurance policy to see if occupancy is a condition for coverage. Then call your trusted insurance advisor and decide what to do.

The big question is? What are you planning to do with the vacated property? Are you going to rent it? You'll need to acquire an insurance policy designed for rental units. Are you going to try to keep selling it? In most cases, you may need to find a new insurance company. Most "standard" insurance companies won't insure a vacant dwelling.

For a vacant property policy the main coverage you want is:

•· Liability-Covers the owner in the case of bodily injury

•· Building-Covers the structure

Some additional coverage that may have additional benefits to you is:

•· Vandalism-Covers the property in case of vandalism

•· Theft-Covers certain contents from theft

Coverage varies by carrier and by state so; don't assume that you are getting the top tier coverage. Typically, these policies can be written on a short term 3-6 month policy or normal 12 month policy period.

Gary Hanson

http://www.proinsgroup.com/

602-481-0161

Protecting your assets correctly as a Landlord

Gary Hanson (Professional Insurance Strategies) — Tue, 09 Oct 2007 12:35:02 -0500

You have decided to be a landlord. Congratulations! Here are some tips and recommendations on properly covering your investment.

Liability to Protect the Landlord

The landlord is responsible for the safety of the property the tenants are living in. If a tenant should harm themselves due to something dangerous in the property they can make a claim against you for damages. For example, a tenant could electrocute themselves on a faulty light switch. As a result, the tenant may be hurt badly. The Landlord Liability coverage will pay for any damages to the tenant as well as legal costs.

Protecting you Building

The building itself should be insured against most risks such as fire or wind damage for the cost or repair or rebuilding. You should insure the property for the replacement cost of the building less any land costs.

Contents

If your property is rented either furnished or unfurnished it is important to determine how much it would cost you to replace your belongings including fixed furnishings, such as curtains and carpets.

Rental Income

Landlords Insurance should provide optional coverage for the loss of rent following accidental damage or accidental loss to your buildings.

Protection from Damages caused by Tenants

In the event your tenant defaults on rent or leaves the building before the end of the rental period, or is legally evicted, a policy should provide for lost rent until the property re-rented. In addition, coverage should be available for theft by tenants and legal costs you incur in taking action against the tenants.

Gary Hanson

Professional Insurance Strategies, LLC

www.proinsgroup.com

Double Whammy: Builder has huge insurance audit, Sales have plummeted

Gary Hanson (Professional Insurance Strategies) — Fri, 31 Aug 2007 16:53:10 -0500

Over the past seven months I have noticed some potential danger on the horizon.

Small builders, like large builders have seen the amount of homes they sell drop off from previous years.

Again and again, I read and hear about companies that hadn't planned for the additonal premiums that are earned on their general liability policies for having a great year.

Here is an example of the problem:

XYZ Home Builder renews their insurance policy on 1/1/2006 based on sales of $2,000,000 and sub costs of $1,500,000. After they get the policy it gets throws it in the drawer until 1/1/2007. They never hear from the agent until then anyhow. Right? Well in 2006 (toward the end of the incredible real estate market) they sell 3 more homes than they thought they would because 1). extra sub contractors were available 2). people were still buying houses. Your sales end up being $4,000,000 with sub costs of $3,000,000.

Now, they renew their policy 1/1/2007 based on sales of $3,000,000 and sub costs of $2,250,000. They had such a great year they want to move it up a bit. Shortly after they renew, the insurance company sends out the audit for the policy year 2006-2007. They write down the total sales of $4,000,000 for 2006, sub costs of $2,000,000 and mail it back to the inusurance carrier.

March rolls around. Some of their spec inventory is starting to accumulate and they have an increasingly tougher time meeting monthly projections. In the mail they receive their audit bill for 2006. They can't believe that it is for double the premium they paid that year (because sales and sub costs also doubled). The notice says they have 30 days to pay or else face collections. There is no way they can afford to pay the audit because they don't have the same income stream they had a year ago.

What can they do:

Call your agent immediately. See if you can make payments. Maybe you can roll the premium into this year's finance agreement. Your willingness to work with the carrier will make them more willing to work with you.

This is just a basic example. This is affecting general contractors, sub contractors, and suppliers. Here are thoughts on preventing th situation from happening again.

Work with an insurance agent that is knowledgeable in the construction industry and plans your insurance needs accordingly.

Set up a reminder at 6 months (if your agent doesn't already) to look at what you thought you would be at and where you are now. Adjust the figures if possible.

Remember most insurance companies will not give back money at the end of the policy period if you end up below your initial sales and sub costs figures but, they will charge you more for going over. If you are in a very cyclical area or need that cushion, have your agent shop for a company that will do an 80% earned premium. That way if you miss your targets there is a potential to get some money back from the carrier.

Gary Hanson

Professional Insurance Strategies

www.proinsgroup.com

Looking to Save Money on Insurance? Here are a couple of hints

Gary Hanson (Professional Insurance Strategies) — Fri, 10 Aug 2007 13:18:00 -0500

Believe or not insurance rates for personal and business insurance are at some of the lowest rates in years.

The reasons for this include:

Insurance companies continue to see record returns in the stock and bond markets.

In simple terms they are making hefty returns by taking your insurance premiums and investing them in the financial markets. The more premium dollars they bring in the more the can invest equals more profit.

Insurance companies haven't faced major catastrophes in the recent years on a country wide basis. Insurers might have faced some local or even regional catastrophic losses but, widespread losses haven't happened in consecutive years.

Here is how you can take advantage of the situation if you are with a direct writing insurer (State Farm, Liberty Mutual, Allstate, or Farmers). Ask your current agent what they recommend to get their company's best rate. There might be new discounts that you can take advantage of that weren't available the last time you renewed your policy. You also should call some of the other direct writers to get competitive quotes.

If you are with an independent insurance agent that represents many companies ask which companies they are obtaining quotes from and call other independents to see what companies they have available.

For business owners it is even more important in dealing with independents to give each agent a choice of a couple insurance companies to quote from. This will give each agent the opportunity to get the best possible pricing from each of their selected companies. For instance if your current agent has selected companies a, b, and c to get quotes from but doesn't go to company d for timing or other reasons, you might be missing out on the most competitive quote. On the other hand, if your current agent has only companies a, b, and c to quote from and a competing agent has companies d, e, and f to go to the chances of getting the most competitive quote are that much greater.

It may take a little bit of effort on your part (not much) but, for your home, auto, or business it could save you thousands of dollars.

Gary Hanson

Professional Insurance Strategies

www.proinsgroup.com

Building a Spec Home? Make Sure You're Covered!

Gary Hanson (Professional Insurance Strategies) — Sat, 04 Aug 2007 19:40:53 -0500

More and more, we field calls from our customers on this important subject. Our customer, who might be the builder or the owner, spends a lot of time finding the perfect location, the perfect lot, and drawing the perfect plans. They go to their mortgage professional and apply for the perfect loan. That lender may or may not have requirements on insurance for the project.

Here are some basics to make sure you are covering an investment that could bring you huge rewards or be your biggest financial mistake.

Builder's Risk or Course of Construction:

Indemnifies for loss of or damage to a building under construction. Insurance is normally written for a specified amount on the building and applies only in the course of construction. Coverage customarily includes fire and extended coverage and vandalism and malicious mischief. Builders risk coverage can be extended to a "special" form as well. The builders risk policy also may include coverage for items in transit to the construction site (up to a certain percentage of value) and items stored at the site

Generally, this is secured by the builder with the owner and lender named as additional insured interests on the policy.

General Liability:

Under a general liability insurance policy, the insurer is obligated to pay the legal costs of a business in a covered liability claim or lawsuit. Covered liability claims include bodily injury, property damage, personal injury, and advertising injury (damage from slander or false advertising). The insurance company also covers compensatory and general damages. Punitive damages aren't covered under general liability insurance policies because they're considered to be punishment for intentional acts.

Again, this should already be in place by the General Contractor. This protects the owner and lender from potential claims arising out of liability claims from property damage and bodily injury. The General Contractor should either cover or make sure all sub contractors have their own general liability policies in place.

It is critical for a project to be covered from the beginning to the end with the right coverage. Working with a team of professionals that can lead you in the right direction will take certain risks out of the picture. This will enable you to focus on building that great home!

Gary Hanson

Professional Insurance Strategies