R&R Insurance Blog

When shopping for health insurance, businesses receive more advantages. Companies typically purchase insurance for an entire group thus giving more room for negotiating to keep costs down. This is a direct correlation as to why 63% of Americans were satisfied with coverage provided by their employer - it is affordable.

Today, the money an employer spends on health insurance is untaxed. So every dollar an employer spends, the employee receives a dollar's worth of benefits. However, individuals buying their own health insurance do not receive such tax breaks. They are paying for their own insurance AFTER taxes and NOT receiving a dollar's worth of benefits.

The Patient Protection and Affordable Care Act (PPACA) is starting to change the employer-paid coverage landscape. Providing a perspective from health insurance underwriters, Janet Trautwein, CEO of the National Association of Health Underwriters, has outlined the affects of health care reform: Preserving What Works: The Perks of Employer-Provided Coverage.

For questions on how PPACA affects the State of Wisconsin, please contact knowledgebroker & WAHU President Pete Frittitta.

Individual market claims costs, and in turn insurance costs, will soar as a result of Health Care Reform! Research sponsored by the Society of Actuaries predicts health care reform-driven changes in individual market composition could drive up underlying claims costs by an average of 32 percent nationally by 2017. The research also predicts high variability among states, with as many as 43 states experiencing a double-digit claims cost increase.

Check out what’s predicted for the Wisconsin individual market and in other states.

We welcome you to join in the conversation with our LinkedIN group dedicated to discussions for business owners on Obamacare: Strategies for Business To Survive. Read articles, download documents, join the conversation, and add your expertise!

The snow which blanketed communities throughout Wisconsin this winter is melting on top of frozen earth. When combined with the inevitable springtime rains, excessive run off could produce record flooding.

Many people are unaware that their homeowner's policy does not cover their property and possessions in the event of a flood. Flood insurance covers the direct physical losses caused by floods, flood-related erosion, severe rainstorms, flash floods and mudslides.

According to the Federal Emergency Management Agency (FEMA), almost all Wisconsin homeowners (99%) lack proper flood insurance. Can you imagine what it would cost to recover from a flood? And are you prepared to foot that bill if it ends up happening? In most cases, the answers to these questions are no and no.

Top Ten Reasons to Have Flood Insurance:

1. Be Flood Smart! Spring flooding is almost here and there is a 30-day waiting period before coverage begins. You can’t simply wait for it to start raining before you call to obtain coverage.
2. Coverage is relatively inexpensive with an annual average premium between $300 and $400 for approximately $100,000 of coverage.
3. You can depend on being reimbursed for flood damages because NFIP flood insurance is backed by the federal government, even if the President does not declare a federal disaster.
4. You do not have to repay flood insurance benefits, and your premium will not go up because you make a claim.
5. You become eligible for additional benefits to elevate, strengthen or move your building.
6. Renters can purchase flood insurance contents coverage for their personal belongings or business inventory.
7. Basement coverage includes cleanup expense and items such as furnaces, water heaters, washers, dryers, air conditioners, freezers, utility connections, and pumps.
8. You can request a partial payment immediately after the flood, which can help you recover even faster.
9. Buying flood insurance is the best thing you can do to protect your home and business, and your family's financial security from a flood.
10. Your standard home policy does not cover damages caused by flood.

Wisconsin residents, for more information about your homeowner's policy or flood coverage, or to find out if your home is in a flood zone, contact a knowledgebroker today.

A reminder from our friends at Kelman Restoration - certain things should never be put in the dishwasher. As the photo shows us, never put a wooden spoon in your dishwasher. In the case of this insured, the spoon fell between the cracks and landed on top of the heat coil, resulting in a fire.

Other items to avoid putting in your dishwasher:

• Acrylic
• Adhesive-joined pieces all aluminum
• Antiques
• Blown glass
• Bronze
• Cast iron
• China with metallic decoration
• Crystal
• Disposable plastics NOT labeled "dishwasher-safe"
• Flatware with bone, plastic, or wood inlays or handles
• Gold-plated flatware
• Iron
• Knives
• Many nonstick pots and pans
• Milk glass
• Pewter
• Rubber tools
• Tin

Remember, dishwashers can catch on fire. Wisconsin residents, contact a R&R knowledgebroker to ensure all aspects of your home are properly covered.

Within a month of your policy renewing, you'll receive a declaration page along with policy information. We've come up with 5 "P's" to remember what to do when you receive this - It makes it easy!

• Preview your policy - Look for changes you've made, i.e.:
  • Did you pay off your car or your home?
  • Did you switch jobs/change your commute?
  • Does your new teen driver qualify for the “good student discount”?
• Packaged? You can save money if you have your items packaged together...home, autos, recreational vehicles, life insurance)
• Proof – Put your new proof of insurance or auto identification cards in the glove box of your vehicle. You are required to have auto insurance in the state of Wisconsin and this way you'll have it if you need it!
• Payment – making your payment lets the insurance company know that you'll be continuing coverage. The grace periods for late payments are different with each insurance company and some do not allow for a grace periods so it’s important make the payment on time. This is a good time to look at the billing options: monthly, quarterly, or annually by automatic withdrawls or invoices.
• Phone – if you have any question at all, please call us.

Wisconsin residents, if you'd like us to evaluate your policy, please contact us. We appreciate the trust you place in R&R Insurance and our staff!

ERISA is one of those areas of HR administration that is probably not high on the list of most HR practitioners' favorite things to do. And, honestly, many simply don't have enough people to spend sufficient time on plan issues. The Department of Labor has recently hired more than 1,000 new employees to - you guessed it - make sure you are in compliance!

An increased chance of an audit means that HR departments need to confirm these things:

• The people running the plan know the plan document inside and out
• Plan operations must be in compliance with the plan document
• The plan document must be in compliance with laws and regulations -- all required amendments must be made.

Ask yourself these questions:

1. Do you know if you offer ERISA health and welfare benefits to your employees?
2. Do you have an ERISA plan document?
3. Do you know what needs to be included in your ERISA plan document (known also as an ERISA wrap-document)?

Here's a link to the full article found in HREOnline.com. Should you have any questions regarding your ERISA compliance or anything regarding your health insurance or benefits packages, please contact knowledgebroker Jane Shevey.

Assume for a minute a disaster strikes your community – a tornado – maybe a major ice storm – an industrial explosion – or a fire in a water/sewer facility.

What is your next step to keep your municipal operations functional?

Take a look at this heart wrenching video of Kentucky Mayors reliving the January 2009 Ice Storm – the largest to ever hit the state.

What do your residents want?

1. Toilets that flush.
2. Water pressure in faucets.
3. Communication and information on what’s happening.
4. Police and fire services.

The League of Wisconsin Municipalities Insurance Trust (Trust) has purchased a service (no cost to your community) that will do the following:

• Arrange for priority delivery of emergency generators, communication equipment and temporary office space
• Assistance in orchestrating logistics and connecting the equipment
• All within 24 – 48 hours of the event

Yes – You may already have a contingency or disaster plan – but, does it include information on generator hook ups and vendors that guarantee equipment, fuel and service for you?

Yes – You have access to the County Emergency Disaster Coordinator – so do all the other county municipalities, schools and private businesses.

The Trust has teamed with a nationally recognized Disaster Recovery Service: AGILITY RECOVERY, which provides the assets and resources to service Wisconsin LWMMI Insureds, including generators, satellite voice and data connectivity, computers and portable office units. Maybe even more important, Agility will help your staff create or enhance your existing Disaster Plan, thereby ensuring the right pieces of the puzzle are in place during the chaos of a disaster.

What do you need to do? Direct your staff to contact Sandy Hagen or Dennis Tweedale at 608-833-9595 or sandra@lwmmi.org for more information. If you are not part of the LWMMI Trust program, contact knowledgebroker Rick Kalscheuer for more information.

The Trustees thank you for participating in the LWMMI Insurance Program. Our mission is to work together, ensuring Wisconsin Municipalities provide the quality services our residents expect.

More images from the 2009 Kentucky Ice Storms

You have a drawer full of paperwork and you keep adding to it - why? Because you aren't quite sure what you need to keep and what you can shred.

Here are some general rules for record retention:

Keep for 7 Years:

• Home deed and closing statement
• Home improvement records
• Property taxes
• Federal, state and local income tax returns, gift tax and/or estate tax returns with supporting documents
• Checks and checkbook records - 7 years if tax deductible, 2 years if not tax deductible; and the same is true for credit card statements, receipts, and paid bills

Keep 1-3 Years:

• Bank statements - 1 year
• Rent receipts - 2 years
• Home mortgage, title insurance, property appraisals - 3 years after paid off
• Loan payment records (non-mortgage)

Keep While You Own or In Force:

• Vehicle paperwork - sales contracts, maintenance records, ownership papers, lease agreements, license information
• Receipts and appraisal for personal property, artwork, and valuables
• Home/Apartment Lease Agreements
• Owners Manuals
• Receipts for Warranties and Warranties and Extended Service Agreements
• Insurance papers - life insurance, health insurance, long term care insurance, homeowners, auto insurance

Wisconsin residents, we'd love the opportunity to be your one stop insurance agency, please contact us.

All of the printed information and major news telecasts have addressed the "what" as it relates to the American Taxpayer Relief Act of 2012. Of greater importance to people, specifically higher net worth business owners, is the "now what do I do?"

There are many moving parts with this new law. An article by NFP explains possible income and estate tax strategies to consider under the new law. Major tax changes:

Health Care / Payroll Taxes

• 3.8% Medicare tax on net investment income
• 0.9% increase in Hospital Insurance (HI) tax on wages
• 2% increase in Payroll taxes

Income Taxes

• 39.6% top income tax rate
• 20% top rate on long-term capital gain and qualified dividends
• Expanded retirement planning
• Personal exemption phase-out and limits on itemized deductions

Transfer Taxes

• Higher rates
• Same exemption, inflation-adjusted
• Reunification and portability made permanent
• State estate tax deductions

Further explanation and example strategies.

I have spoken with many business owners and we work together to create the best strategy for their organization and their personal finances. Please contact me to discuss the best strategy for yourself.

The "fiscal cliff" of 2012 relates only to tax aspects meaning many additional topics are still up for debate. Below is a brief explanation of what the American Taxpayer Relief Act does and does not do:

What the Act does:

• Increases tax rates for high-income taxpayers
• Increases top estate, gift, and GST tax rates
• Makes other estate, gift, and GST tax provisions permanent
• Extends / implements certain retirement planning options
• Addresses other expiring tax and health care provisions

What the Act does not do:

• Many tax issues were not discussed and remain of concern to the taxpayer: expiration of the payroll tax cut, health care taxes having significant impact, and transfer tax issues may remain.

Summary of Income Tax Provisions

Where do we go from here? Tax preparation and analysis will be more crucial than ever. For questions and help with tax planning strategy, please contact me.