R&R Insurance Blog

Beginning January 1, 2011, a new insurance rating option from FEMA`s National Flood Insurance Program (NFIP) allows many property owners who previously didn't qualify, to take advantage of the low-cost insurance for two years before they are required to pay standard rates.

NAPS (North American Precis Syndicate) provides information about the options for low-cost insurance from FEMA's National Flood Insurance Program (NFIP) that went into effect 1/1/11. This new option represents an important way to save on flood insurance for those who are newly required to carry it. After two years at the reduced PRP rates, policies will increase to standard rates.

To learn more visit the FEMA website or call (800) 427-4661.

As teenagers get their driver’s licenses and hit the road, parents usually decide what their children drive, and most feel comfortable with a vehicle that’s as safe as can possibly be. A lot of times that choice is a pick-up truck because it's large, and seemingly indestructible. Parents and teen drivers, however, take note: a pick-up truck could be the most dangerous vehicle for a 16-17 year old to drive. According to a recent study conducted by the University of Texas and published in the traffic safety journal Accident Analysis and Prevention, teens driving pick-up trucks are two times as likely to be severely injured during a crash than a teen of the same age driving a car.

Teenagers driving a pickup are more likely to drive aggressively and sustain serious injuries in a crash, according to the study which also found that when it comes to aggressive driving behavior, a 16-17 year old is 368 percent more likely to drive aggressively than those 65 or older, while a teen just a couple of years older is only 195 percent more likely.

Full article: Teen Drivers and Pick-up Trucks, A Bad Mix? at ABC News.

R&R Insurance Services is committed to providing our customers with the highest level of service and support. We take the safeguarding of our customers' personal information very seriously. Your privacy will always be a priority at R&R Insurance Services. Because of this, R&R has a company-wide policy to use encryption software when sending any email that contains personal, identifiable information.

Encrypting an email message that contains personal or non-public, identifiable information about our customers, their family members or employees greatly diminishes the risk of that information being intercepted by third parties. We are confident that it is in the best interest of our customers to take appropriate measures to protect their information from potential identify thieves.

R&R Insurance uses RPost, an email encryption service to handle our encryption needs.

RPost's Secu(R)mail encrypted email services are effective for electronic delivery and execution of documents required or regulated under the Health Insurance Portability and Accountability Act of 1996 ("HIPAA"). RPost also preserves data integrity by legally verifying that precisely what was sent is what was received by the other side. To view an encrypted message, the recipient needs only to open the message, click on the attachment and enter a password.

Should you have any questions regarding our encryption policy or our corporate privacy policy, contact Julie Liebelt.

Property owners and residents should be aware of the weight loads heavy storms may create, especially on flat roofs.

How to Protect Your Roof From Collapse
Schools, churches, office buildings, restaurants, casinos, gas stations commercial buildings and residential buildings - both homes and apartment buildings, as well as carports and awnings can be affected. Owners and residents of flat roof buildings in particular are urged to be aware of the possible snow load danger. Be aware that the threat from heavy snow weight will remain for some time after the storm ends because cold temperatures won’t allow much melting to occur.

Take the following precautions to protect life and property:

• Don’t put untrained individuals on roofs to clear snow. Falls from roofs and possible exposure to electrical wires while on the roof are serious hazards.
• Inspect roofs for leaks or structural deficiencies that may develop during the storm.
• Make certain gutters, drains and downspouts are clear of ice and debris.
• Clear snow and ice away from exhaust vents that go through exterior walls.
• Clear decks of snow to reduce stress on them.
• Watch for falling snow and ice from roofs.

After the storm:

• Clear areas around downspouts so that water from melting snow has a path to flow away from the house or building.
• Remove snow from side walls to prevent high snow mounds from pushing them in.
• Temporarily shore up and brace dipping or sagging roofs or walls.
• Improper operation of doors or windows, deflection of ceiling finishes or exposed beams, roof leaks or sprinkler heads moved from their normal positions could be signs of roof failure.

If you have suffered storm damage to your property, make sure that there is no danger to anyone nearby, and then contact your insurance agent immediately. Wisconsin residents and businesses can contact a knowledge broker at 800-566-7007 for details on how to protect and insure your property and avoid roof collapse during snow storms.

If you have questions about your building’s condition, contact a structural engineer or your local building official for an assessment of the conditions.

This material does not purport to address every possible legal obligation, hazard, code violation, loss potential or exception to good practice. It should not be construed as indicating the existence or availability of any insurance coverage. Portions of this information provided by Hanover Insurance.

We saw a great article written by Russ Banhan of Independent Agent magazine, about personal and business exposures from the use of social media. Here's eight ways to reduce your exposure:

1. On Facebook and other social media sites, take advantage of the highest security settings and only allow "friends" - not "friends of friends" - to see your profile.

2. When creating a profile, choose a different year of birth than your actual one.

3. Be parsimonious with your "friendships": if you don't know the person in the real world, do not friend them in the cyber world.

4. Make sure that your friend really is who he/she says he/she is. Follow up your friend requests with an e-mail, text or phone call.

5. Make your children friend you. This enables you to watch them, and them to know that you're watching.

6. Don't post or tweet your location or when you're going to be any place specific, to reduce the chance of being burglarized.

7. Search for yourself using search engines like Google and people search sites like Pipl to find out what is being said about you, and then contact websites that have posted inaccurate or personal information to have it removed.

8. Consider investing in online repuatation management services that will monitor the Internet for information about you.

Information taken in part from an article by Russ Banham.

See also: Cyberbullying and Age-Based Guidelines For Children's Internet Use

Chances are, if you’ve had a total loss on your home due to a fire or storm, you're going to need to replace it. Hopefully you had Replacement Cost coverage on your homeowners policy.

If you are going through the rebuilding process and wonder why the rebuilding costs are 30-40% higher than new construction, here are 9 reasons that explain why it could be higher.

1. Extensive planning and matching of labor and materials required to build around an existing structure with partial losses.
2. Contractors specializing in reconstruction and restoration charge more for their expertise.
3. The use of hand tools, such as wheelbarrows and dollies rather than heavy equipment due to limited access created by surrounding buildings and landscaping.
4. The increased cost of dwelling reconstruction is comparable to rebuilding an automobile part by part. The labor and materials are more expensive when building a single home versus a tract home. The labor and materials for rebuilding an automobile part by part are more expensive than a mass produced car.
5. Labor and material shortagesdue to supply and demand, especially in the aftermath of a catastrophe. Good examples are the fires in northern California some years back, and some of the recent tornadoes in Wisconsin.
6. Older home construction such as plaster walls and custom woodwork. It’s often difficult to even find craftsmen that still do this type of work.
7. Rebuilding to code. The requirements and expenses associated with updating the structure to meet current building ordinances. For example, new electrical codes often are stricter and will require heavier wiring and additional electrical services. All municipalities will do inspections.
8. Demolition and debris removal. While new home construction normally begins on open site with perhaps some brush removal and grading, rebuilding begins with a partially or totally destroyed structure occupying a building site with trees, plantings, driveways, sidewalks and other structures that have to worked around. Imagine the cost and extent of debris removal after a major fire or a tornado.
9. Economy of scale. When contractors have many homes under construction at once, materials can be purchased in large quantities and work can be scheduled for the most efficient use of carpenters, plumbers, electricians, and other tradesmen.

If you are a homeowner and don’t have Replacement Cost coverage on your homeowners policy, here’s why you should have it.

Wisconsin residents: Contact a knowledge broker at R&R Insurance today about insuring your home for it's true replacement cost.

According to a survey by Zogy International for MetLife Auto and Home, 31% of homeowners don’t know how much their home is insured for. Not only do we not know how much it’s insured for, most don’t understand that there are two very different coverage scenarios: Market Value and Replacement Value. In recent years with the home market decline and plummeting home market values, Market Value policies have become more common. As well, deeply discounted homeowners’ policies leave a lot of coverage on the table, coverage that could mean the difference of tens to hundreds of thousands of dollars.

The following definitions of Market Value and Replacement Cost will help to ensure that you can have a knowledgeable conversation with your insurance agent about the coverage for your home and obtain the proper coverage you deserve.

Market Value Policies
Some insurance companies will offer what is called a Market Value type of policy. It is also known as a “Functional Replacement Cost” or “Modified Loss Settlement”. Market Value is the amount a buyer would pay for a home, including the land regardless of how much it would cost to rebuild it. Many factors enter into the Market Value of a home; a desirable neighborhood, the condition of the home, scenic views, quality of the school district, weather pattern, size of the lot, etc. Market Value policies were generally only used for older, very well maintained homes where the cost to rebuild them was far, far greater than the market value.

Market Value policies affect the loss settlement on a homeowners policy. Every company has a different definition of what a Market Value policy will cover; but in general the coverage will provide the homeowner who has a partial loss with repairs that will be done on a basis of “like kind and quality”, which simply means repair or replacement will be done with commonly available materials and methods (so drywall in place of plaster walls for example). The company will pay only up to the amount of coverage stated on the policy.

Be careful when considering such coverage and be sure to discuss the coverage in detail with your insurance agent. Make sure that you understand the loss settlement thoroughly to make sure that this is the right type of policy for you.

Replacement Cost Policies
Replacement cost is the cost to actually rebuild your home. It is not the home’s purchase price less the value of the land, the outstanding amount owed on the mortgage loan, or the assessment for taxing purposes. Replacement costs will include the material (lumber, roofing shingles, siding material, carpet, drywall, etc), the labor costs, site supervision, architect’s services, the contractor’s profit and overhead, and the foundation. Keep in mind that changes in building codes may prohibit rebuilding on the current foundation.

There are several ways to obtain a replacement cost estimate on your home. Building contractors or professional replacement cost appraisers are a good source for obtaining the estimated replacement cost of your home. Estimates from these sources should reflect your home’s features, like upgraded bathrooms and kitchens (granite, custom cabinets, built in appliances), finished basements, specialty rooms, custom molding, built-in bookshelves, arched and specialty windows, and many other unique features. If you are unable to obtain a detailed estimate from these sources, your independent insurance agent can discuss other options for estimating the replacement of your home.

If and when you do renovations or additions to your home, be sure to let your agent know, as this may change the replacement cost of your home. It’s the homeowner’s responsibility to make sure the home is insured for full replacement cost.

At R&R Insurance, we recommend to all of our personal lines customers that they insure their home for at least 100% of it’s replacement cost. Get an estimate for the cost to rebuild the home and then insure your home for that amount! For most homeowners, insuring at the correct coverage amount will have a minimal affect on the homeowners insurance premium. Wisconsin residents: Contact us for a quote today! We have dozens of markets eager to write your homeowners insurance.

All adolescents are at risk of cyberbullying, according to mental health professionals. But there are characteristics that make individuals more vulnerable to such harassment - and more likely to be a victim of cyberbullying.

Most susceptible to cyberbullying:

• Individuals with a developmental disability
• Individuals with mental health issues
• Adolescents who are gay or lesbian, or those who are struggling with their sexuality or gender identity
• Youths who recently moved to a new school
• Children who are perceived as outsiders by their peers
• Adolescents who spend a lot of time online, or texting

For parents and teachers, it is essential to check and recheck the habits and attitudes of adolescents under their charge. Listen to their conversations. Parents - it's OK to have a cell phone parental agreement with your children and educate them about the consequences of cyberbullying.

With suggestions from several employees, we've compiled a Cell Phone Agreement that you too can use. It sets expectations and encourages responsibility. Here's the sample cell phone parental agreement, customize it for your own needs. P.S....it's working for parents at R&R..... Good Luck!

Trick-or-Treaters:

• Never trick-or-treat alone. Have at least two friends go with you.
• Plan your entire route and make sure your family knows what it is.
• Carry a bright flashlight to illuminate sidewalks, steps and paths. Use new flashlight batteries and check it before you leave the house. Chemical glow light sticks can be used along with flashlights.
• Always WALK, do not run.
• Stay on sidewalks. If there is not a sidewalk, walk on the left side of the road facing traffic. Walk single file, facing the traffic.
• Obey traffic signals and only cross at corners.
• Don't assume you have the right of way.
• Because one car stops, it doesn't mean others will!
• Stay in familiar neighborhoods.
• Don't cut across yards or driveways.
• Wear a watch you can read in the dark. Set the watch alarm if you have time limit for trick-or-treating.
• Avoid wearing masks while walking from house to house.
• Carry only flexible knives, swords or other props. Avoid pointed props such as spears, or wands that endanger other children's eyes.
• Wear clothing with reflective markings or tape.
• Make sure your costume doesn't drag on the ground or you might trip on it.
• Wear comfortable walking shoes, and make sure they should fit properly.
• Visit houses that have lights on, especially houses with Halloween decorations.
• Stay away from animals you don't know.
• Do not enter homes or apartments without adult supervision.
• Accept treats only in the doorway. Never go inside a house.
• Always carry a spare Halloween bag just in case yours breaks.
• Take a cell phone with you if possible.
• Always be polite and don't forget to say "Trick-or-Treat" and "Thank You"!

Parents:
SAFETY

• A parent or responsible adult should always accompany young children on their neighborhood rounds.
• In order to discourage youngsters from filling up on Halloween treats, make sure they eat dinner before going out.
• Secure emergency identification (name, address, phone number) discreetly within Halloween attire or on a bracelet.
• Older children should carry a cell phone with home number ready.
• Be sure to watch young children carefully near the street.
• If your children go on their own, be sure they wear a watch and set their alarm to a time when they should return home.
• Older children should know where to reach you and when to be home.
• Older children should trick-or-treat in groups. You should know where they're going and with who they are going with.
• Although tampering is rare, tell children to bring ALL the candy home to be inspected before consuming anything.
• Review with your children the principle of "Stop-Drop-Roll", should their clothes catch on fire.
• Teach children how to call 9-1-1 (or their local emergency number) if they have an emergency or become lost.

TREATS

• Give children an early meal before going out.
• Insist that treats be brought home for inspection before anything is eaten.
• Report to the police anything that appears suspicious about treats.
• When in doubt, throw it out.
• Although sharing is encouraged, make sure items that can cause choking (such as hard candies), are given only to those of an appropriate age.
• If you child has an allergy, look at the ingredients of the treats they bring home.
• Limit the amount of treats they consume to avoid sickness.
• If your child is diabetic, read this article for helpful information Halloween and Diabetes.

COSTUMES

• Costumes should be loose enough so that warm clothes can be worn underneath.
• Plan costumes that are bright and reflective.
• Only purchase costumes, wigs and accessories if they clearly indicate they are flame resistant.
• Make sure that shoes fit well (even if they don't go with your costume).
• Make sure that costumes are short enough to prevent tripping, entanglement or contact with flame.
• Consider adding reflective tape (usually available in hardware, bicycle and sporting goods stores), striping or glow sticks to costumes and trick-or-treat bags for greater visibility.
• Secure emergency identification (name, address, phone number) discreetly within Halloween attire or on a bracelet in case the youngster gets separated from the group.
• Because masks can limit or block eyesight, consider non-toxic makeup and decorative hats as safer alternatives.
• When buying special Halloween makeup, check for packages containing ingredients that are labeled "Made with U.S. Approved Color Additives," "Laboratory Tested," "Meets Federal Standards for Cosmetics," or "Non-Toxic."
• Follow manufacturer's instruction for application.
• If masks are worn, they should have nose and mouth openings and large eye holes.

HOMEOWNERS

• Take extra effort to eliminate tripping hazards on your porch and walkway.
• Check around your property for low tree limbs, support wires or garden hoses that may prove hazardous to young children rushing from house to house.
• Pets get frightened on Halloween. Put them up to protect them from cars or inadvertently biting a trick-or-treater.
• Glow sticks, light sticks or battery powered jack-o-lantern lights and candles are preferable to real flame candles.
• If you do use candles, place the jack-o-lantern well away from where trick-or-treaters will be walking or standing.
• NEVER leave any flaming candle unattended.
• Be prepared. Have a fire extinguisher handy.
• Be sure the path and stairs to your front door are well illuminated and clear of obstacles.
• Make sure paper or cloth yard decorations won't be blown into a flaming candle.
• Consider purchasing individually packaged healthy food alternatives (or safe non-food treats) for those who visit your home.
• Include packages of low-fat crackers with cheese or peanut butter filling, single-serve boxes of cereal, packaged fruit rolls, mini boxes of raisins and single-serve packets of low-fat popcorn that can be microwaved later.
• Non-food treats (great for those with diabetes or food allergies): plastic rings, pencils, stickers, erasers, coins.

PET AND ANIMAL OWNERS

• Halloween can be a very traumatic and even dangerous time for your pet.
• Don't leave your pet out in the yard on Halloween.
• Strangers visiting in costumes can be scary for dogs.
• Put your pet in a cage or separate room to keep them from darting out the door.
• Trick-or-treat candies are not for pets.
• Chocolate is poisonous to a lot of animals.

DRIVERS

The National Safety Council urges motorists to be especially alert on Halloween and offers the following driving tips:

• Drive SLOW, SLOW, SLOW!
• Be aware that in Wisconsin, not all communities hold trick-or-treat on Halloween.
• Kids may be out trick-or-treating the weekend prior to Halloween up through Halloween night!
• Watch for children darting out from between parked cars and walking on roadways, medians and curbs.
• Enter and exit driveways and alleys carefully.
• If you are driving children, be sure they exit on the curb side, away from traffic.
• Do not wear your mask while driving.
• At twilight or later in the evening, watch for children in dark clothing.
• Adult Halloween parties should have a designated driver.
• Turn your lights on even in daylight - lights make you more visible.
• Drive cautiously to give yourself extra time to react to children crossing the street.

Have Fun! Happy Halloween!

Recent heavy rains have overburdened sewer systems, causing raw sewage to back up into drains in homes throughout the country. Backed up sewers can wreak havoc on a home, causing thousands of dollars in damage to floors, walls, furniture and electrical systems.

Sewer backups or the inability of sump pumps to handle runoff water from major downpours are not covered under a typical homeowners insurance policy, nor are they covered by flood insurance. A Sewage Backup endorsement must be in place in order for this type of claim to be covered. Sewer backup coverage is available from most insurers for a nominal cost—usually an additional annual premium of $40-$50.

For homes that have been severely damaged and are uninhabitable, homeowners policies may provide Loss of Use coverage, which provides reimbursement for lodging, food and other living expenses you may incur as a result of having to live outside of your home. Loss of Use coverage also reimburses you for the lost rental income if you rent out part of the house.

Causes of Sewer Backup

Aging Sewer Systems: The Civil Engineering Research Foundation reports that the number of backed up sewers is increasing at an alarming rate of about 3 percent annually. In addition, a recent report from the American Society of Civil Engineers indicates that the nation's 500,000-plus miles of sewer lines are on average over thirty years old. The increase in the number of homes connected to already aging sewage systems has also contributed to rapid increases in sanitary sewer backups, flooded basements and overflows.

Combined Pipelines: Problems also arise in systems that combine storm water and raw sewage into the same pipeline. During many rain storms, the systems are exposed to more volume than they can handle, and the result is a sewage backup situation that allows sewage to spew out into basements and other low lying drains.

Blockages Due to Tree Roots: Shrubs and trees seeking moisture will make their way into sewer line cracks. These roots can cause extensive damage. They may start out small, getting into a small crack in the pipe; but as the tree or shrub continues to grow, so does the root. Tree roots can enter the service pipe at joints and cause blockages. Tree roots can travel a long way, and roots from different types of trees act differently. If city trees are suspected, your plumber can contact the city, and samples of the roots will be used to help identify the trees and who is responsible for cleanup. Sometimes the blockage is a result of a combination of city and private trees. In this case costs are split between the city and the property owner.

Sanitary Main: A blockage can occur in a city sanitary main. If the blockage is not detected in time, sewage from the main can back up into homes and businesses through floor drains. Usually this happens slowly, giving the owner time to call a licensed plumber to assess the damage. If water is entering into your basement at a rapid rate, call the city public works office and report the problem immediately.

Water in Basement: Most basement flooding is not related to the sanitary sewer system. In many cases, soil settles adjacent to the building and, if not corrected, leads to rainwater flowing towards the building and down the outside of the foundation wall. This is particularly true in older buildings, where cracks may have developed in the foundation or floor slab that allow water to enter the basement. The cement floor and basement walls of these structures may have deteriorated to the point that they are no longer waterproof. In these cases, water can show up in a basement that has never had a water problem. This will usually happen after a number of rain storms, when the ground is saturated. Drainage can be improved by making sure that water drains away from the building. Owners may also be able to prevent flooding by water sealing the basement.

Most homeowners may not realize that they are responsible for the maintenance and repair of their house or sewer lateral—the pipeline between the city sanitary sewer main, usually located in the street—and the building. The sewer lateral is owned and maintained by the property owner including any part that extends into the street or public right of way. A cracked or deteriorated lateral or one filled with tree roots can allow groundwater to seep into the system, contributing to the problem.

How to Prevent Backups In Your Lateral and in the City Main

Dispose of Grease Properly: Cooking oil should be poured into a heat-resistant container and disposed of properly, after it cools off, not in the drain. Washing grease down the drain with hot water is unsatisfactory. As the grease cools off, it will solidify either in the drain, the property owner's line, or in the main sewer causing the line to constrict and eventually clog.

Dispose of Paper Products Properly: Paper towels, disposable (and cloth) diapers and feminine products can cause a great deal of trouble in the property owner's lateral as well as in the city main. These products do not deteriorate quickly, as bathroom tissue does, so do not put them down the drain or toilet.

Replace Your Line with New Plastic Pipe: One way to prevent tree roots from entering your line is to replace your line and tap with new plastic pipe. If you have continuing problems with tree roots in your lateral, you may have to have the roots cut periodically.

Correct Illegal Plumbing Connections: Do not connect French drains, sump pumps and other flood control systems to your sanitary sewer. It is illegal, and debris and silt will clog your line. Consult a plumber to correct any pre-existing illegal connections. French drains are common drainage systems, primarily used to prevent ground and surface water from penetrating or damaging building foundations.

Install a Backwater Prevention Valve: A backwater valve is a fixture installed into a sewer line, and sometimes into a drain line, in the basement of your home or business to prevent sewer backflows. A properly installed and maintained backwater valve allows sewage to go out, but not to come back in. Property owners are responsible for the installation and maintenance of backwater valves. The cost to install one depends on the type of plumbing in the building and the difficulty of installation. Check with a qualified plumber.

What to Do If You Experience a Sewer Backup

A sewer backup can lead to disease, destruction of your valuables, damage to your house or business, and can even result in electrical malfunctions. Prompt cleanup of affected property can help minimize the inconvenience and prevent mold or further damage. If you experience a sewer backup situation, immediately arrange for the cleanup of your property. This should include:

• Wet-vacuuming or removal of spillage
• Mopping floors and wiping walls with soap and disinfectant
• Flushing out and disinfecting plumbing fixtures
• Steam cleaning or removing wet carpets or drapes
• Repairing or removing damaged wallboard or wall covering
• Cleanup of ductwork

Don’t let a sewer backup be a drain on your home or finances; make sure to have the proper coverage.

How to File a Claim

For insurance purposes, take before and after photos of the affected areas and itemize any property losses. Save all receipts related to repair, cleaning or damages and contact your insurance agent or company representative as soon as possible.

Information obtained from Insurance Information Institute