R&R Insurance Blog

Electrical fires are the #1 cause of property damage in commercial buildings. Regardless of the age of your building, keeping on top of regular maintenance checks for the electrical system, the heating and cooling system and the roof will ensure that you not only keep your property safe, but also keep your property insurance costs down.

Loss Control Specialist John Brengosz explains why underwriters need to see regular updating and maintenance of building systems.

Contact a knowledgebroker for any additional information on insuring your Wisconsin business with R&R Insurance.

You should think twice before switching homeowners insurance - it could end up costing you money!

Lately, there's no shortage of commercials on TV trying to get you to switch to a new insurance company for "savings". It may not, however, be as easy as they make it out to be. Here are some key points from a great article by by Hank Coleman.

You'll Lose Discounts By Jumping Around

Most insurance companies have a built-in automatic discount if you've been with them for several years. If you begin to chase better insurance rates around the internet and through other companies that have strong advertising campaigns, you run the risk of losing this discount that you used to enjoy from your previous insurance company. Also keep in mind that if you split up your home and auto policies with different carriers, you also lose the multiple policy discount.

Missing The Fine Print

If you change homeowners insurance, be sure to read the fine print of your new policy. Does it require you to get a home inspection and new improvements made before your policy takes effect?

• Lesson learned: One North Carolina woman recently switched her homeowners policy to a new insurance carrier only to find out that she needed to make over $4,000 worth of repairs to her aging home to begin her new coverage. It would not have been a major issue except for the fact that she had already canceled her original homeowners insurance before finding out about the expensive upgrades she had to make to her home. The upgrades now have all but negated the cost savings she would have enjoyed by switching insurance companies for years to come.

If you are considering switching, make sure that you're working with an agent that can give you multiple quotes and one that has the knowledge to discuss your options. Wisconsin residents should contact knowledgebroker, Dan Wolfgram, for more information.

Let's face it, we're all looking for ways to trim our expenses. Here are 12 ways to make sure that the value you are getting from your homeowners policy is real, and to ensure that you aren't paying more than you need to.

1. Raise your deductible
   Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. Most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25%.
2. Insure for replacement cost, not market value
   The housing market has dropped significantly, but that doesn't mean the cost to rebuild your home has dropped as well. Insurance companies insure homes based on the amount it would cost to rebuild, including debris removal, architect fees, etc., not the assessed value of the home. In today's economy, these two values can be drastically different. It is important to make sure your home is insured based on replacement cost, and that it does not include the cost of land.
3. Package your home & auto policies together
   Some companies that sell homeowners, auto and umbrella coverage will take 5 to 15 percent off your premium if you buy two or more policies from them. Luckily, R&R Insurance represents numerous companies that do just that!
4. Newer/updated homes may be eligible for discounts
   Find out from your insurance agent what steps you can take to make your home more resistant to windstorms and other natural disasters. You may be eligible for premium discounts if your home is constructed with fortified home materials, such as HardiePlank siding, or has an impact resistant roof.
5. Improve your home security
   Some companies offer to cut your premium if you have a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations. If you have a security system, be sure to mention it to your insurance agent as the discount for security systems average anywhere from 10-25% of the home premium.
6. Maintain a good credit record
   Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price insurance policies. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate. More about insurance scoring...
7. Stay with the same insurer
   If you've kept your coverage with a company for several years, you may receive a special discount for being a long-term policyholder. Some insurers will reduce their premiums by 5 percent if you stay with them for three to five years and by 10 percent if you remain a policyholder for six years or more.
8. Review the value of your scheduled items and rec vehicles at least once a year
   You want your policy to cover any major purchases or additions to your home. But you don't want to spend money for coverage you don't need. For example, if your five-year-old fur coat is no longer worth the $5,000 you paid for it, you'll want to reduce the amount on your insurance policy. Rec vehicles and watercraft also tend to depreciate with age; be sure to check with a reputable dealer or other on-line valuation service to ensure you are not over insured.
9. Buy a longer policy
   There may be a price penalty attached to 3- or 6-month policies, so the longer your policy term, the cheaper your rates will likely be. Regardless of the length of your policy, you may be able to avoid installment fees and save money by paying it in full instead of in monthly installments. If installments are the only affordable option, you may be able to avoid fees by having your premiums automatically deducted from your bank account each month.
10. When you're buying a home...Location Location Location
    You may pay less for insurance if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department.
11. You could be eligible for a discount between 5 -10% depending on the age and location of your electrical, heating & plumbing systems
    If your single family home or condo is less than 30 years old, or if your home mechanics have been upgraded during that time, you may qualify for an elite home program with some insurance companies. This could save you up to 10% on your yearly premium.
12. Reduce your auto coverage to comprehensive only during winter months
    If you have vehicles that you do not use during the winter months or for long periods of time during the year, you can save some money by removing the liability from them while they are idly stored. By carrying comprehensive only during these times, your vehicle is still covered for things like theft, fire, vandalism, etc. Your liability coverage can be added back on when you decide to use the vehicle again.

Wisconsin residents, be sure to contact knowledgebroker, Brandy Enger, for the best valued personal lines insurance in Wisconsin!

Contract Bond underwriters traditionally screen potential bond customers (contractors) on the basics of 3 C’s Capacity, Character and Credit. The 3 C's are usually defined as:

1. Capacity: to complete the work, the resources of manpower, equipment and track record of completing work in the category of the work contemplated.
2. Character: the background and history of the contractor are positive indicators leading the bonding company to believe the construction company will endeavor to complete the work contemplated.
3. Credit: A combination of financial statement and borrowing history which builds a case that the contractor has sufficient working capital, equity, profitability, and a bank relationship which all will assist the contractor in completing the work contemplated.

It takes a combination of these 3 basic measurement elements to potentially qualify for a bond. Recently with shrinking profit margins, and available work, we are encountering contractors who are strong in relation to capacity and character, but whose credit has eroded over the last few years.

In cases where credit has eroded, surety professionals at R&R Insurance will suggest the use of funds control to secure bonds for contractors seeking bonds in Wisconsin.

Funds control simply stated is a system of parking a job’s revenues in an escrow account allowing the bonding company to be sure that the stream of revenues are going to satisfy job costs associated with the project at hand. Once costs are validated, project revenues are then disbursed by the escrow agent who uses those funds to pay the suppliers, subcontractors, and contractor at regular intervals throughout the duration of a project. This ensures that at the end there is a reasonable expectation that job costs are satisfied and profits can be realized.

Wisconsin contractors interested in improving any of their 3 C's or Wisconsin contractors interested in fund control options should contact Jay Zahn, Surety Specialist at R&R insurance Services.

According to the Home Safety Council, fires and burns are the leading causes of unintentional home injury death among children younger than 15 in the United States. Fire prevention is key, here are some tips to make your home safer:

Fire Prevention Tips

• Store matches and lighters out of sight and reach of children in a locked cabinet.
• Stay in the kitchen at all times when food is cooking on the stove.
• Only adults should light candles and stay in the room when they are lit.
• Make a fire escape plan. Find two exits out of every room and an outside meeting place away from the home. Practice a fire drill twice each year with all members of your family.

Burn Prevention Tips

• Turn pot handles away from stove’s edge and use back burners whenever possible to keep
  small hands from getting burned.
• Enforce a “kid-free zone” of three feet around the stove area.
• Test the temperature of your water. If it is hotter than 120 degrees F, turn down the
  water heater dial.
• If you or someone gets burned, immediately use cool water to stop the damage from getting worse. Keep the burn in cool water for 3-5 minutes. Even after the heat source is removed, the burning in the skin can continue for several minutes. Do not use ice, ice water or butter on the burn.

Wisconsin residents, make sure you have the proper coverage for any type of catastrophic loss and contact knowledgebroker, Dan Wolfgram today!

Patient referral relationships and financial incentive arrangements between hospitals and other healthcare services could be found in violation of the current STARK regulations (Non-Compliant Referral Agreements). Hospital contracts, leases and other side agreements are now under intense scrutiny and could prove costly to hospital practices for unintentional violations. Understanding the laws governing referral relationships is essential as well as having the proper coverage in case of an investigation and possible allegations.

More Stark Violations and Civil Monetary Penalty Claims

For more information about Regulatory Compliance Insurance, contact a knowledgebroker.

In an article by Eleanor Duse, she mentioned dogs usually like water. Som­e breeds, like Labrador retrievers, are traditional boat dogs. But that doesn't mean you can take them on boats without considering their safety and well-being.

Many dog owners assume their pets can swim, but a short doggy paddle in the pond is a far cry from swimming through strong currents in open waters. Your dog may not be strong enough or fast enough to swim alongside your boat. Leaner dogs may struggle more, since fat is more buoyant than muscle. Short-legged breeds can also have problems swimming.

Make sure your dog is securely leashed when you first get on board. The other end of the leash should be in your hand, not tied to the boat. The dog should know you're in control and that you're close by. Once you've made all the necessary preparations for departure from the dock, you can reward your dog with a swim.

What else do you need?

• Food and water. Bring more water than you think you'll need, just in case. Chances are that you and your dog will be out in the sun more than either one of you is used to.
• Newspapers or a doggie toilet. This clearly represents hours of training, frustration and mess. Your dog probably won't get it right every time. You already know your dog's warning signs, so accompany it as you would on a walk and clean up any messes.
• Doggie snacks. You should always have treats handy to reward your dog's good behavior.
• A carrier, harness or leash. Even at a dock, you have to comply with local leash laws.
• Transportation. You'll need an easy way to help your dog get out of the water and on board -- either a dog ladder or a dog ramp.
• Proper paperwork. You'll need up-to-date papers and vaccination records, especially if you plan to cross state or national borders.

One very obvious result of the economic downturn is how many times we notice once-thriving businesses we drive past every day are now sitting empty. This is troubling from an insurance perspective as well.

Vacant buildings are prone to certain types of perils. It's important to know that the majority of property insurance policies contain a vacancy condition that eliminates coverage entirely for vandalism, sprinkler leakage, building glass breakage, water damage, theft or attempted theft. This condition applies if the building that you own (or in which you are a tenant) has been vacant for more than 60 consecutive days. If another peril caused the loss, such as fire, the loss payment would be reduced by 15 percent.

Most policies apply the vacancy condition if less than 31 percent of the building's square footage is rented or used to conduct customary operations (note that buildings under construction are not considered vacant).

Wisconsin businesses, if you have a concern with vacancy, please contact a knowledgebroker so we can address the situation with your carrier. There are options - and we can help.

This group paid $611,250 to resolve their liability under the Civil Monetary Penalties (CMP) applicable to kickbacks and physicians self-referrals. They did not have regulatory insurance and were responsible for the entire fine.

More Civil Monetary Penalty Claims

For more information about Regulatory Compliance Insurance, contact a knowledgebroker.

A Fairfield, New Jersey physician (now retired) paid $40,000 to resolve his liability under the Civil Monetary penalties provisions applicable to false claims and kickbacks. He did not have regulatory insurance and had to absorb the full cost.

More Civil Monetary Penalty Claims

For more information about Civil Monetary penalties or Regulatory Compliance Insurance, contact a knowledgebroker.