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Archive for the ‘Property Risks and Solutions’ Category

Earthquakes, Tsunamis, and Nuclear Accidents — Oh My!

Posted in Property Risks and Solutions, tagged , , , , , , , , , on April 23, 2011| 4 Comments »

I am happy to report I do not have any clients with homes in Japan. Meanwhile, several clients who I’ve spoken with the past few weeks were surprised to learn that all unendorsed homeowners insurance policies issued in the U.S. specifically exclude damage caused by, that’s right, earthquake, tsunami (flood) and damage from a nuclear facility. 

If the threat of any of any of these risks concerns you, there is good news: insurance protection from damages caused by earthquake and flood is readily available, and generally not very expensive (costs are much higher for those with homes located near a seismic fault or prone to flood waters). Please let me know if you’d like to understand the coverage options available to protect your property from earthquake or flood damage.

While I am unaware of any insurance carrier offering to sell coverage to protect against nuclear damage, the Price-Anderson Act, passed in 1957, is in place to compensate the public for property damage and injury caused by a commercial nuclear accident in the United States.  The program, renewed by Congress most recently in 2005, ensures that adequate funds are available to satisfy liability claims for property damage and personal injury sustained by the public. The program limits the liability of companies involved in certain nuclear activities, such as power plant operators, in order to encourage the development of private nuclear power. Currently, there is nearly $13 billion in liability insurance protection available to be used in the event of a commercial nuclear accident.  This program paid about $71 million to local residents and businesses impacted by the Three Mile Island accident in 1979.

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From a client: “It’s like there’s a SALE on insurance”

Posted in Insurance Carrier related, Property Risks and Solutions, tagged , , , , , , , , , , , , on December 13, 2010| Leave a Comment »

A client who had been insured by a well known carrier recently asked if there wasn’t “any other carrier out there” that could also offer broad coverage for his large home “that didn’t charge an arm and a leg”. I explained that his carrier’s rates reflected their overall loss experience, and reminded him of a claim that he had many years ago and how happy he was with the outcome. Pressing his point, he asked if there were any carriers that had “better loss experience” so that they were able to price their coverage at a lower cost.  Enter a new carrier I’ve written about frequently here – Pure High Net Worth.

This excerpt is form a recent professional journal assessing the marketplace for high valued home insurance summarizes the opportunity: “However, there is some competition out there for these big players. For instance, a relatively new company from Florida called Privilege Underwriters Reciprocal Exchange (PURE) is making a big splash on the East Coast right now.  PURE offers similar features to Chartis and Chubb, and is very open to coastal properties where others are more restrictive in coastal areas.”

When my client reviewed the terms of Pure’s offer, he asked how the costs could be appreciably lower given the very similar coverage. I explained that because Pure was just beginning to add new risks, they had not yet experienced many losses, adding that Pure’s risk selection process relies heavily on credit scoring, which they believe will help attract policyholders who better manage their finances and their homes. The client shared that he regards this as a de-facto “sale” on home insurance, and told me I should explain it in such terms to others.

Well —– although insurance carriers do not have “sales”, it is fair to observe that new carriers entering the marketplace without the burden of prior losses and who also carefully select the risks they insure are able to price their policies at rates that can give the impression they are on “sale”.  For those who find the idea of a “sale on insurance” appealing, please contact me to examine an offer from Pure.  Meanwhile, as an independent risk advisor, my advice on “who the best carrier is” remains unchanged:  it is whichever carrier best meets that particular client’s specific protection needs.

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Protecting Passionate Investments

Posted in Insurance Carrier related, Property Risks and Solutions, tagged , , , , , , , , , on November 22, 2010| Leave a Comment »

A recently released white paper from Ace Private Risk Services reminds financial advisors that many investors are increasingly turning to their passion for fine art, wine and other collectibles in an effort to rebalance their investment portfolios. Sound risky? Well, it is not uncommon that well managed collections outperform more conventional investments.

This strategy is not without risks, as many collectors and their financial advisors often do not take the extra steps to intelligently manage the hidden risks that can threaten the value of their collections. To learn more about the “Eleven Steps for Protecting Passionate Investments”,  click here to access the white paper on Ace’s website.

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Replace Policy Clutter with a Blanket

Posted in Insurance Carrier related, Property Risks and Solutions, Protecting Valuable Articles, tagged , , , , , , , , , , , , , on July 28, 2009| Leave a Comment »

No More Clutter !

No More Clutter !

 I am fortunate to have been asked to contribute an article by Private Asset Management, a publication of Institutional Investor that is focused exclusively on investment management, financial and advisory services to the high-net-worth arena, and especially on delivering breaking news before it appears anywhere else.   

While property and casualty related topics are not often covered by this fine publication, the editors have found that subscribers do have an interest in P&C topics that are both newsworthy and relevant to protecting the assets of high-net-worth clients. This brief article that I have authored explains how a simplified, effective and cost efficient coverage solution has been developed to replace the clutter, confusion and expense associated with the multiple insurance policies purchased by families who own valuable residences and personal possessions often located in several states.  Please contact me for more information about this innovative solution.

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When LESS is So Much More

Posted in Property Risks and Solutions, tagged , , , , , , , , on May 6, 2009| Leave a Comment »

simplify4For families (especially multi-generational families) who own many residences in different states, it can be overwhelming trying to keep track of all the insurance coverage protecting each home, every outbuilding, and the personal contents and valuables located in each residence.

NOW: imagine replacing those many policies with a single “Family Blanket Policy” that aggregates the various forms of coverage provided by each of the policies currently covering all of an extended family’s residences, outbuildings, and personal possessions.  Of course, to be viable this innovative solution would need to provide world class coverage and claims service, and be backed by a carrier with superior financial stability.  Insurance, simplified: this innovative new solution exemplifies the benefits of “less is more”.

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Home Destroyed? Want to Rebuild Green?!

Posted in Insurance Carrier related, Property Risks and Solutions, tagged , , , , , , , , , , , , , , , on March 31, 2009| Leave a Comment »

leed1Insurance carriers that compete for personal insurance business in the affluent market niche are always looking for new ways to differentiate their coverage. 

Influenced by environmentally conscious homeowners in CA, San Francisco Bay Area Fireman’s Fund Insurance Company has introduced the first ever homeowners insurance policy offering “Green” coverage.  

This innovative policy is ideal for homeowners who currently own green homes, or who want to upgrade their residences with green features after a loss using environmental safety and efficiency standards.

For more details:

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PURE: “Now There’s a Bright Idea”

Posted in Property Risks and Solutions, tagged , , , , , , , , , on February 2, 2009| Leave a Comment »

bright-ideaThis Wall Street Journal article from Jan 29, 2009 actually offers good news: a newly formed insurance carrier is interested in providing coverage for owners of well built homes near the coast has been approved to issue policies in NY and NJ.   

PURE High Net Worth has a business model that is well worth reviewing.  From their website, the recap below highlights why they are deserving of the above slogan. Cook, Hall & Hyde is among a select group of Partner Agencies representing PURE in NY. Contact me to learn more about the solutions PURE has to offer

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We’re highly selective.  We know a great deal about insuring successful families and we use that insight to carefully select a distinguished membership. By doing so, we reduce the cost for all members. (Click to learn about our home construction eligibility requirements.)

We’re new AND we’re secure.  PURE is led by a team of professionalswidely recognized as the most experienced and accomplished in this niche.  For all of the advantages of our experience, we benefit from our fresh start. A.M. Best has recognized our strengths with a financial strength rating of A- (Excellent).

Our coverage is designed with your input to fit your needs.  Many people don’t buy enough insurance to rebuild their home or replace their contents. Others (particularly vacation homeowners) buy far more than is needed. We empower our members to buy the right amount – not more, not less.

Our policyholders are members. And the members own PURE. Stock insurance companies exist to maximize the wealth of their shareholders. Our mission is simple: Through innovative products and expert advice & service, we are committed to helping our membership lower the price of their insurance today and reduce their overall cost of risk for the long term.

We’re creating a new standard of service.  We believe that the opportunity exists to exceed all expectations of our membership.

 

 

 

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Why the rising costs??

Posted in Caveat Emptor, Property Risks and Solutions, tagged , , , , , , , , on July 1, 2008| Leave a Comment »

I am often pressed to explain the rising cost of insurance — not an easy task. As with the rising cost of anything, a complete explanation involves revieiwng many factors (boring). There is one leading factor driving the rising cost of insuring homes that the WSJ recently decided to cover.

 

I am surprised that many I speak with do not realize insurance carriers also buy insurance on the risks they insure. The process of buying “reinsurance” allows insurance companies to spread their exposure to large, catastrophic losses that can strain their ability to pay many claims and remain in business.  

 

I share this because the factor with the greatest influence on the rising cost of home insurance (especially those in coastal areas) is the rising cost of the reinsurance that insurers are paying. Of course, those rising costs are passed along to all of us in the form of rising premiums. This page one Wall Street Journal article offers a thorough and interesting explanation behind the factors driving of the rising cost we are all required to pay to insure our homes.

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An Ounce of Prevention…..

Posted in Property Risks and Solutions, tagged , , , , , , , , , , , on May 23, 2008| Leave a Comment »

This year marks the 70th anniversary of the unnamed hurricane that devastated Eastern Long Island and much of New England. While the NY Metropolitan area has been impacted by hurricanes since, it has also been awhile. Given this reprieve, there is a real complacency among homeowners to become better prepared. Ask yourself: if a hurricane was a day away, would you make any changes to prepare for it? A suggestion: if you answered yes, take the time and do so now.  This video from the Insurance Information Institute offers some basic but overlooked tips to prepare homes to better sustain the winds and rain that will arrive — one day.

 

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When Transferring Real Property to a Trust or LLC

Posted in Caveat Emptor, Liability Risks and Solutions, Property Risks and Solutions, tagged , , , , , , , , , , , , , , on May 13, 2008| Leave a Comment »

As high net worth individuals embrace the tax and asset protection benefits of placing private property ownership in the name of a trust or LLC, critical insurance coverage issues arise. Few trusted advisors or property owners are aware that the “named insured” insurance contract provisions prohibit the extension of coverage to protect the interests of the real property owner – the trust or LLC – in the event of a covered loss.

The resulting coverage void can remain undetected for years, only becoming apparent after a loss for which the application of coverage has been invalidated. Depending upon their role in the creation and administration of the trust or LLC, some advisors may even discover they have a professional liability exposure in the event of an uncovered loss. 
                                                                                                                                                           Click here to access an article from The CPA Journal that explains this problem and the solutions that can be made available.  

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