Flood Risks Nationwide

Flood Risks Nationwide
Many people think that if they do not live near a river or the coast, they are not in danger of flooding, giving them a false sense of security. Floods are the number one natural disaster in the United States and high-risk flood areas are not the only ones that can flood: more than 20 percent of flood insurance claims come from areas mapped outside high-risk areas.

Flash floods, inland flooding, and seasonal storms affect every region of the country, wiping out homes and businesses. People need to know that they can take steps to protect their financial security before disaster strikes. However, many residents and businesses are unaware that they qualify for flood insurance or that policies are more affordable than they may think.

What is a Flood?
Flood insurance covers direct physical loss caused by "flood." In simple terms, a flood is an excess of water on land that is normally dry. The National Flood Insurance Program's definition of a flood is "a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from:

* Overflow of inland or tidal waters;
* Unusual and rapid accumulation or runoff of surface waters from any source;
* Mudflow (a river of liquid and flowing mud on the surfaces of normally dry land areas); or
* Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above." 


Flood Risks
Floods can happen anywhere and at anytime. While some causes are obvious, such as hurricanes and snow melt, many are not. 

Heavy Rains: Cresting rivers, backed-up storm drains, or saturated ground can cause significant floods. Heavy rains can contribute to flash floods, which are the number one weather-related killer in the United States. A flash flood is a rapid flooding of low-lying areas in less than six hours. Heavy rains also increase the chance of mudflows, rivers of liquid, and flowing mud.

To learn more about your risk for flooding and how to prepare for floods, visit FloodSmart.gov/floodrisks or www.lehninsurance.com

Realtor's and Flood Insurance

Help Protect Your Customer’s New Home
What to Know and Say About Flood Risk and Flood Insurance
Buying a new home can be confusing, which is why potential buyers rely on you, their Realtor,
to help them protect their financial investment. Flood risk and flood insurance are important
topics that homebuyers should consider early in the home buying process.
Understanding Flood Risks
What you should know.
• Floods can happen anywhere, at any time.
• A floodplain, or Special Flood Hazard Area, is land at a high risk of a major flood.
• This area is also called a 100-year flood zone. The term can be misleading. It
does not mean that a flood will occur only once every 100 years. Rather the area
has a 1 percent or greater chance of a major flood occurring in any given year.
• On average, properties in a Special Flood Hazard Area have a 1 in 4 chance
of experiencing a flood during the lifetime of a 30–year mortgage.
• You can access flood maps in a number of ways:
 – Contact a community official
 – Visit msc.fema.gov
 – Call 1-800-358-9616
Flood Insurance Basics
What you should know.
• FEMA’s National Flood Insurance Program enables homeowners, business
owners and renters in participating communities to purchase federally
backed flood insurance.
• Federally backed flood insurance is available to communities that adopt
and enforce floodplain management standards to reduce flood damage.
• Flood insurance is sold and serviced by approximately 90 private insurance
companies in more than 21,800 communities nationwide. No matter which
company is used, the price for a given level of coverage remains the same.
• Your customer can purchase flood insurance for both the building and its
contents. Flood insurance covers residential buildings up to $250,000 and
non-residential up to $500,000. Contents coverage can be purchased up
to $100,000 for residential buildings and $500,000 for non-residential.
• The typical 30-day waiting period for flood insurance coverage to become
effective is waived at the closing of a loan or if there has been a change
to the Flood Insurance Rate Map (FIRM).
• Flood insurance in excess of the $250,000 federal limit may be available
through other insurance companies.
• Residents in non-participating communities can purchase flood insurance
from private insurers.
What you should say.
> Anywhere it can rain, it can flood.
It is important to know your
property’s flood risk and your
insurance options.
> Most homeowners insurance
doesn’t cover floods.
> Damage from flooding affects
thousands of homes every year —
and it can be costly.
> Even if you aren’t required to
purchase flood insurance, it
could be a good option because
your home could still be at risk
for flooding.
What you should say.
> T alk to your insurance agent about
your flood insurance options and
how your flood insurance premium
might be different from the seller’s.
> Flood insurance usually is available
from the agent who sells your
homeowners policy.
> Visit FloodSmart.gov or call
1-800-427-2419 to find
an agent and learn how to
prepare for floods

Garage Sales Dos and Dont's

Garage Sales Dos & Don’ts…

December 19, 2014

inShare

If one of your New Year’s resolutions is to clean out what you no longer use and have a garage sale, be sure to take these helpful Dos and Don’ts into consideration.

That’s it — the last holiday gift is unwrapped and there is no place to store it! If one of your New Year’s resolutions is to clean out what you no longer use and have a garage sale, be sure to take these helpful Dos and Don’ts into consideration.

DO

• Some shoppers show up very early, so be sure to lock garage and exterior doors before the sale starts.
• Price items individually or group them together by price. Write “FIRM” on the price sticker if it is not negotiable.
• Keep valuable or fragile items close to your home or the space you have designated as the “check out” area, to keep an eye on them.
• Shoppers will want to test out electric items, so have an extension cord handy. (But keep it taped down for safety, to help avoid trips and falls.)
• After you’ve completed the setup, step back and look the area over to be sure pathways are clear and trip hazards eliminated.

DON’T

• Do not use a cash box if you do not have one person designated as a cashier. Use an apron with pockets or a tool belt to keep change and bills separate.
• For safety, pets and young children should not be in the yard during your sale.
• Unless you already know the shopper, it is not wise to allow them in your home to use the bathroom, get a drink of water or test out an electronic item.

If you have some items that did not sell, be sure to donate them to a non-profit and ask for a receipt. Most donations qualify for a tax deduction in the calendar year that you file your taxes.  However, if you are holding onto items because you have frequent yard sales be aware that your homeowners policy excludes liability claims that arise out of, or in connection with, a business.

Do you have so many sales that it is a profit-making venture?  Check with your agent to see if purchasing a separate business liability policy would be a good way to put this concern to rest. The Insurance Information Institute provides guidelines for determining the coverage you need.

Reprinted from Tower Hill Insurance

For more info contact www.lehninsurance.com

Vacant Home Insurance

Sellers of vacant homes face escalating insurance costs

Tom Kelly

November 2, 2014

The challenge of finding homeowners insurance for properties once viewed “insurance easy” continues to plague homebuyers who are finding tougher guidelines and higher premiums from insurance carriers.
Insurance protection has not been easy on sellers, either.
Howard Miller, 51, decided to sell his three-bedroom, three-bath primary residence and move into a rental that he and his wife had owned for a few years. The residence, on a gorgeous acre with wonderful landscaping and a couple of ponds, demanded more time and maintenance than he and his wife now had time to give.
“We put it on the market last summer and the place still hasn’t sold,’’ said Miller, who admits not all families are devoted gardeners with the time and interest to maintain such a place. “We were just going to continue to leave it vacant and try to sell it, until we found out how much it would cost to insure the place.’’
The Millers had an excellent relationship with their insurance carrier and had a flawless history with the two homes, two cars and a boat. However, because the primary residence was now unoccupied, vacant and for sale, the insurance premium had jumped to nearly eight times the normal rate.
“The premium for the previous year was $528 and the least expensive insurance we could find now that it’s vacant was $4,000 a year,’’ Miller said. “I couldn’t believe it, but a friend told me he had the same experience with a home in his family.’’
Insurance companies simply do not want to deal with unoccupied, vacant and for-sale homes. Their history charts show that these places stand a much greater risk of vandalism and problems created by neglect than an occupied home. A slow leak in a cold, unoccupied home has a greater chance of resulting in burst pipes and subsequent dry rot than a home that’s lived in every day.
So, what’s the insurance grace period when selling a home? If an employee is forced to relocate with little notice, put his wife, family and belongings in a moving van and go, how long will the vacant home be covered? Many insurance companies will give 60 days for a transitional “vacant” period as long as the premiums are paid. (Some states require that insurance carriers give 45 days notice when coverage is canceled midterm. A 30-day advance is generally given for renewal notices but companies often allow 60 days to make up for mail time and weekends.)
Some traditional, major carriers have even adopted a moratorium on “substandard” or higher risk insurance. Unoccupied, vacant and for-sale homes have slid into this category. Special niche companies that continue to write substandard policies often impose a monthly quota on the number of cases they will consider.
Why are insurance premiums so high? Insurance agents and carriers also point to the numbers – claims filed involving mold, lead-based paint, asbestos, radon and urea formaldehyde are up significantly. While all of these environmental hazards have caused terrible losses, other industry costs – all passed on to the consumer – involve cases compounded by expensive legal proceedings where neither side receives any real benefit.
For example, a recent case involved a renter who died in a house fire. The fire marshal determined the cause of the fire was due to the renter smoking in bed. The renter’s family filed suit against the seller’s $500,000 liability policy, claiming the smoke alarms were not working properly.
Howard Miller had heard all the reasons but he still couldn’t believe the cost to insure the home he still wanted to sell.
“I even thought of moving some furniture back in and bringing in my sleeping bag,’’ Miller said. “But we decided to get a renter and give him a greatly reduced price. He’ll have his stuff in there and make sure the real estate agents have access to show it.
“He won’t have to pay market rent and we’ll save a ton on the insurance premiums because it’s occupied.’’

Reprinted from Spokesman-Review

How to Prevent Water Damage

Over the last few years, carriers have reported water damage as the leading cause of claims in the insurance industry. The Institute for Business and Home Safety recently reported homes over the age of 30 are more likely to experience plumbing or drainage problems. Adopting  a routine inspection/maintenance plan can prevent disasters from occurring.
By becoming familiar with the all the sources of water which enter or can enter your home, plans can be implemented to prevent most water damage events. As such, below are a few preventative measures your customers can take to avoid a water loss.
1. Routinely inspect pipes, sinks, showers and toilets throughout your home for leaks, cracked tiles and corrosion.
Tip: Turn off your main water supply line while on vacation.
2. Inspect the water supply line hoses on your washing machine every few months to ensure the connection is secure and not showing any signs of corrosion or kinking, and replace every 5-6 years.
Tip: Only run your washing machine when someone is home.
3. Schedule an annual plumbing inspection of your water heater’s anode rod to avoid damage to the tank.
Tip: The chances of a water heater leaking or bursting increase dramatically after 5 years.
4. As the most frequent source of water damage, roofs should be inspected annually by a professional roofer. Repairs should be made to loose and/or missing tiles and shingles and deteriorated flashing should be replaced.
5. Make certain your icemaker supply line hose is properly installed and not leaking or crimping.

September is Life Insurance Awareness Month

FOR IMMEDIATE RELEASE                      CONTACT:     Lehn & Vogt Insurance

941-698-8877

SEPTEMBER IS LIFE INSURANCE AWARENESS MONTH – THE PERFECT TIME TO ENSURE YOUR INSURANCE PLANS ARE UP TO DATE

Local Insurance Expert Recommends Putting a Financial Safety Net in Place

Englewood, Florida – Sometimes life just happens. One day things can be going smoothly, when the next, you’re thrown a curve ball. Since no one knows what the future holds, taking steps to put a financial safety net in place will provide you with peace of mind knowing you are prepared for when the unexpected happens.

“Most of us are feeling some sort of financial strain today, so it makes sense to examine our budgets and look for ways to increase our savings whenever possible,” says Jeff Vogt, Partner with Lehn & Vogt Insurance in Englewood, FL. “However, life insurance is one of the few guarantees that can ensure your family’s financial plans remain on track. It is often overlooked, but should be the foundation on which any financial plan is built.”

A recent study by the nonprofit LIFE Foundation found that a majority of Americans (85%) agree that most people need life insurance, yet 95 million adults today do not have coverage or the financial safety net it provides. In fact, one third of all Americans (33%) believe they do not have enough life insurance, including one quarter of those who already own a policy.

“The simple rule of thumb is, if someone depends on you financially you need life insurance,” says Vogt “Even if you have coverage now, it’s important to review your policy at least once a year to ensure it still meets your needs and is enough to protect your loved ones.”

September is Life Insurance Awareness Month, making it the perfect time to take stock of your life insurance needs and meet with a qualified financial or insurance advisor who can walk you through your options.

To help you get started, Vogt offers three tips for evaluating your life insurance needs:

• Step 1: Get a sense of how much is right for you – Determine how much money your family will need to cover immediate expenses and how much they will need over the long-term to maintain their standard of living or fund future plans, like college. To figure out the right amount of coverage to fit your needs, begin by thinking about everyone who depends on you financially, including your spouse, children, parents or other loved ones. For help getting started, visit the insurance needs calculator on the LIFE Foundation’s website at www.lifehappens.org/howmuch.       

·       Step 2: Educate yourself about the different kinds available – Life insurance policies exist for virtually every need and budget. Determining the type that suits you best depends on a number of factors, such as how long you need coverage, how much you can afford, how much risk you can tolerate and how much flexibility you need. Explore the different types of life insurance available, including term and permanent policies, by using the interactive product selector tool at www.lifehappens.org/whatkind.   

·       Step 3: Don’t go it alone – Life insurance is one product where an expert’s opinion can make all the difference. Once you’ve established some of the basics, work with an insurance agent or other financial advisor you trust who can conduct a thorough needs analysis to ensure that all of your needs will be met. One way to find a good insurance agent is through recommendations from friends and family or other professional advisors, such as attorneys. 

“Life Insurance Awareness Month is the ideal time for a life insurance review,” says Jeff Vogt. “I urge everyone to take a few minutes out of their busy schedules this month to make sure they have adequate life insurance protection.”

About Life Insurance Awareness Month

Held each September, Life Insurance Awareness Month is an industry-wide effort that is coordinated by the nonprofit LIFE Foundation. The campaign was created in response to growing concern about the large number of Americans who lack adequate life insurance protection. Roughly 95 million adult Americans have no life insurance, and most of those who do have far less coverage than most financial experts recommend. For more information on life insurance, visit LIFE’s website at www.lifehappens.org.

About Jeffrey Vogt, Lehn & Vogt Insurance

 www.lehnandvogt.com  941-698-8877

When do you need Insurance Inspections??

When do you need INSURANCE INSPECTIONS?

When buying a home, do I need a 4 Point Inspection?  Do I need a Wind Mitigation Inspection? Do I need an Elevation Certificate? My house is new (or recently built) why do I need an inspection?

These are questions we hear every day in our office.   

The truth is homeowners insurance underwriting differs from company to company.   In order to find you the best rate, we need certain information:   age of roof, age of HVAC, water heater, prior claims, will the home be primary, secondary, or rental, etc.   While most questions can be answered by information from the buyer or homeowner and others can be researched on property appraiser websites, some require a qualified inspection.   Although one insurance company may not require an inspection, often we are able to place coverage, at a much lower rate, with a company that does.  This is why in addition to the pre-purchase inspection we also recommend a 4-point inspection for any home over 20 years old and a wind mitigation inspection for all homes, even new construction.  We do see clients with brand new construction, where a wind mitigation inspection saved them on insurance premiums, even though the home was built to the latest codes.

What are these inspections?

·       The 4-point inspection

A 4-point is typically required on homes older than 20 years. The insurance company specifically wants information on 4 areas: including the HVAC (Heating, Ventilation and Air Conditioning), electrical panel and wiring, water heaters including plumbing connections , and the roof.

·       A Uniform Wind Mitigation Verification Inspection (commonly referred to as a WIND MIT)

This inspection provides significant discounts to a homeowner if the home qualifies. Discounts are given for new roofs, secondary water barriers and hurricane panels/impact glass.  The inspection also pays close attention to the roof/deck attachment, bracing, doors and windows, and other structural features. A home with superior construction will also receive discounts.

The state has recently changed the reporting rules making it harder to qualify for such discounts.  A more detailed report is now required as proof, including photos, to qualify for discounts. 

Any inspection prior to 2012 generally no longer qualifies.

·       Flood Zone determinations and elevation certificates.  

High risk flood zones can be easily determined in our office with the property address. Once we determine the home is in a high risk flood zone we then utilize a FEMA elevation certificate to rate the home for a flood insurance premium.  FEMA has recently changed the rules on primary and secondary homes for rating purposes.  As a result, secondary homes may have a higher flood premium.

I hope that this explanation has been useful in understanding many of the reasons behind why a certain inspection may be requested or required, even though it may appear to be an obvious answer.  As always, please feel free to contact us with any questions.  Our agents are always happy to discuss any particular circumstances with you.

Lehn & Vogt 

www.lehnandvogt.com

941-698-8877