McKinsey & Co., the giant consulting firm, has helped several major insurance carriers to increase their profits by devising alarming claims strategies that all consumers should be aware of. Check this link to access video of a CNN investigative report that is essential viewing for all insurance consumers.
Posts Tagged ‘personal risk management’
Delay Deny Defend
Posted in Caveat Emptor, tagged ac360 mckinsey insurance report, claims strategies, delay deny and defend, delay deny defend mckinsey, large insurance carriers, mckinsey, McKinsey & Co., personal risk management on May 19, 2008| Leave a Comment »
When Transferring Real Property to a Trust or LLC
Posted in Caveat Emptor, Liability Risks and Solutions, Property Risks and Solutions, tagged llc owner is a trust, llc real property, personal risk management, placing llc in a trust, private risk advisor, real property risks, risk, risks in real property?, transferring llc to a trust, transferring property from living trust to llc, transferring real property, transferring real property to an llc, trust llc insurance property, trust vs llc+real property, uncovered loss 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.
Examining the Causes of Residential Loss
Posted in Caveat Emptor, Property Risks and Solutions, tagged fire, home insurance, partial insurance, personal risk management, Personal Risk Management and Insurance, private risk advisor, the wall street journal on May 8, 2008| 1 Comment »
To Hedge, or not to Hedge….
An interesting question was recently presented on Terri Cullen’s great WSJ blog for her Fiscally Fit column by someone who labeled themselves a “contrarian”. In essence, the post asked: “since the likelihood of losing a home to fire is remote, why bother insuring the home for the full cost to rebuild?”
I don’t think this question is contrarian at all, I think it is fair and logical. Savvy consumers know to beware of insurance “scare mongers”, who would have us believe that the sky is about to fall on all of our homes. Meanwhile, statistics reveal that the risk of a fire totally destroying any single home is remote. Click here for some good insights, or check this site: https://www.usfa.dhs.gov/statistics/national/residential.shtm
For those who wish to hedge the unlikely risk of a fire consuming their home by partially insuring the cost to rebuild, the insurance industry has erected significant pitfalls. While these can be navigated, doing so requires careful guidance.
As both a risk advisor and an insurance consumer, I would also describe myself as a “contrarian”. Meanwhile, knowing a.) fire is but one of the losses that can wreak significant damage to my home ( Click this link for a chart showing the leading losses by cause to homes), and b.) the insurance carriers who “allow” consumers to hedge against total losses do so by inserting numerous contract provisions that greatly reduce the amount they will pay after a loss, I would never elect to hedge the slight risk of a total loss by selecting a policy that offers “partial coverage”. Others I know consider this a risk worth accepting. Neither approach can be judged “right” or “wrong” until after a lifetime of home ownership.
It is always wise to examine risks from different perspectives. In this instance, there is real risk in placing coverage with insurance carriers who so graciously permit you to partially insure your home.
Not Your Father’s Home Security System
Posted in Property Risks and Solutions, tagged connected hearth, family life, fire, home, home insurance, home security, loss, loss prevention, personal risk management, smart home technology on April 23, 2008| Leave a Comment »
While having a fire and burglar alarm system can offer some peace of mind, most property owners are curious to know how technology can help them better protect their home — and their families while at home. While I am not an expert on home security, I am a good resource in directing homeowners to the select group of specialists focused on advanced home security and “smart home” technology.
One organization I’ve worked with locally has merged advances in home security with smart home technology in an easy to use way that offers great home security and utility. Connected Hearth is an exciting service provider, with a website that lets you monitor and control your home from anywhere in the world. Through ConnectedHearth.com, you can control your security system, your heat and A/C, your indoor and outdoor lighting. You can pan a camera throughout your house. You can even have a hot cup of espresso waiting for you when you arrive. All this, from a computer. Wherever you happen to be. Click on this link to be re-directed to their web site.
Or, feel welcome to contact me for information on other new advances in home security, and to learn which carriers are providing real incentives to improve the loss prevention features in the homes they insure.
An Old (and dangerous) Marketing Pitch
Posted in Caveat Emptor, tagged cost efficiency, cost efficient high quality insurance coverage, insurance carriers, marketing, personal risk management, valuable protection on April 6, 2008| Leave a Comment »
“Save Money Now” (and the many variations) has to be the first ever marketing pitch. Most consumers know to ask themselves “how is it that the savings are being achieved?” Ask yourself: do you think an insurance carrier offering to lower your insurance costs has not first determined how they can reduce the protection provided by their low cost coverage? If it looks to good to be true……
There are smart ways to reduce the long term cost of insurance coverage without also sacrificing valuable protection. Remarkably, these strategies are often under-utilized, as many consumers are instead lured by the never ending “bargain” advertsing hype. Check this one page primer for an overview on how to make quality insurance more cost efficient.
Home Renovation & Construction Projects
Posted in Caveat Emptor, Property Risks and Solutions, tagged insurance carriers, loss, personal risk management, property loss, renovation, residential construction projects, risk on April 6, 2008| Leave a Comment »
Recent news reports tell a story that insurance carriers know all too well: residential construction projects involve a number of risks that can create significant damage to your home. Determining who can be responsible after a loss can be very challenging. While it is important to have the right insurance coverage, it is just as critical to know the steps that can be taken to avoid or reduce the chances of the most common causes of loss.
This insightful report explains the risks, as well as the precautions that can be taken to reduce the risk of loss during home renovation and construction projects.
Personal Lawsuits: how much?
Posted in Liability Risks and Solutions, tagged lawsuit, liability coverage, liability insurance, personal risk management, risk, risk management on March 14, 2008| Leave a Comment »
When asked this common question: “how much liability insurance do I really need?” I respond with another question: “how much might you be sued for?” Everyone knows that protecting the asset base from the threat of lawsuits, however unlikely, is simply prudent risk management. Deciding how much protection is needed is a little trickier. I have yet to meet someone who was named in a lawsuit who was not immediately concerned with whether they had “enough” coverage.
Deciding “how much do I really need?” requires a close examination of a number of issues, which we can help you address. Among those issues: what is happening in the real world? This link offers a quick reminder that when it comes to what and how much you can be sued for, you never know….
No Good Deed….
Posted in Liability Risks and Solutions, tagged Institutional Investor, non-profit organization, personal risk management, private asset manager, risks of voluntarism on March 7, 2008| Leave a Comment »
I was recently asked by Private Asset Manager, published by Institutional Investor, to review the risks that can threaten the personal assets of those who volunteer their time serving non-profit organizations in a directorship capacity. Taking the time to understand the risks of voluntarism is important and often overlooked. Developing strategies to manage and transfer those risks is essential. Click here for a brief review of this topic, or contact me for more information.
Toasting Marshmallows
Posted in Property Risks and Solutions, tagged chubb, fire, home insurance, homeowners, loss, March 2008 Vacation Homes edition of The Robb Report, melissa apostle, personal risk management, vacation homeowners on March 6, 2008| Leave a Comment »
It is alarming, but true: depending upon where your home is located, your local fire department may not have much of a chance of extinguishing a fire in your home.
Having worked for many years as a residential appraiser with Chubb, my colleague, Melissa Apostle, provided The Robb Report with several great suggestions on how vacation homeowners can work to improve the response time they can hope to receive from their local fire departments. The article – “A little preplanning can save your home if a fire strikes” – appears in the March 2008 Vacation Homes edition of The Robb Report.
“After wine, out comes the truth”
Posted in Protecting Valuable Articles, tagged after wine out comes the truth, collectibles, fine wine, liquid assets, personal risk management, protect wine collections, risk, vulnerability assessment, wine cellar on March 6, 2008| Leave a Comment »
Or so it was written in a fortune cookie.
For those with significant liquid assets stored in a wine cellar, careful consideration should be given to the risks that can threaten a valued collection.
In addition to arranging insurance solutions to protect against such risks, we can also assist those with significant wine collections by providing a vulnerability assessment to identify and address the risks that can threaten even well cared for cellars. Click here for a link to review a series of thoughtful solutions and services designed to help protect wine collections.
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