Your Risk Radar- November Edition

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November, 2024

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What's New in Our World? ?

October proved to be a rough month for the industry with two major hurricanes making landfall within a week and a half of each other. According to most sources, losses between Helene and Milton will be at least $55 billion with some saying they could exceed $100 billion in damages.? The amount of rain that came from Helene?has created quite a bit of conversation on the topic?of flood insurance. Many areas that saw large amounts of rainfall weren't even in flood zones designated by FEMA.? Most homeowners don't carry flood insurance, but should be aware of the risks! Home insurance policies don't provide coverage for flood- coverage can only be purchased through the national flood program (NFIP) or a specialty?private flood insurance company.? Did you know that since 1996, 99% of counties in the U.S. have experienced a flood? However, only 4% of homeowners have flood insurance.? ?

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Claims Corner ?

Last week we received a call from someone who wanted other options on their home and auto insurance due to a bad experience with a claim. A fiber optic internet company contracted with a local excavator?to trench lines in a?neighborhood that was getting upgraded to fiber internet. Unbeknownst to the homeowner, that excavator trenched right through their sewer line. After a few months of dirt and sediment settled down into the line, it?eventually backed up and caused?quite amess in the bathroom before flowing?down through the basement. The first question we asked?was "Where would coverage be triggered in a home policy?" In talking with adjusters from our companies, water backup of sewer or drain is where coverage would fall under. If they had the underground service line endorsement (go back to last month's coverage of the month section), they company would have paid to repair the lines if the homeowner was responsible. Who should ultimately be on the hook after the homeowners insurance company pays out? The fiber company? The excavator? What would you say if the excavator called 811 (Call Before You Dig) and could provide proof that they dug where "Call Before You Dig" told them to? Between the emergency remediation job from a restoration company and repairing/replacing damaged items that couldn't be salvaged, the loss cost upwards of $40,000. As you can see, claims aren't always black and white when there are multiple parties involved! ?

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Carrier Spotlight ?

Cincinnati Insurance has been a longtime carrier partner of our agency. One of our local office's?agency code was 007, meaning we were the 7th agency appointed with Cincinnati back when it was established by a group of agents back in the 1950s. Cincinnati has always had a reputation?of having good claims service as well as great coverages- something the founding agents kept at the top of mind since the beginning. Why does any of this matter? We?always come back to this statement, "You do business with people you know and trust". Starting with our field reps, to our underwriters, and ultimately with our claims adjusters- they all have one goal and that is?to take care of our clients when they have a loss. ?

While Cincinnati may not always be the "cheapest" option out there, you can always rest assured knowing you'll be taken care of when you need them most. Price is important, but I believe?paying a?few hundred dollars more per year is worth it when you have a claim that could cost you thousands or even more out of pocket if you aren't insured correctly. Something unique with Cincinnati is that they still focus on the typical main street accounts (home, auto, umbrella) that the company started on. However, they've also grown into and do a great job in the private client space. This would be for accounts with homes over $1.5 million in replacement value. They've adapted over time because that's what agents needed and asked for- the true testament?of a valued partner.

Coverage of the Month ?

Water Backup- Part 1

Have you ever come home only to discover a few inches of water in your basement? I know we've had many calls like this and still continue to get them. Water backup is an endorsement that must be specifically added onto a standard home policy. Coverage typically starts at $5,000 and you can purchase limits up to $100,000. With some of our high net worth insurance companies (we'll dive into this next month), coverage is included up to the replacement value of the home. What exactly does this cover? It would first provide coverage for a restoration company to come out?and dry the basement as well as remove any damaged carpeting, drywall, etc. These bills generally average $10,000. After that, the coverage would pay to repair or replace any damaged contents, appliances, drywall, carpeting, etc. See how this can add up quickly? For someone with even a partially finished basement, we recommend limits of at least $25,000. This is one of the most common claims we see on a day to day basis and one of the most severe as well. We'll touch on some other parts of this coverage next month!

About Our Newsletter Ethan is a personal lines insurance agent with Risk Strategies specializing in middle market and private client insurance for families in the Midwest, he has over 10 years' experience in the industry. Along with other agents in the office, the team felt that a newsletter was something people needed to see. "There are quite a few misconceptions about the industry right now and our goal is to provide some clarity and education about why things are the way they are right now".

Have questions?

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C: 419-980-3494

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