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It is like being surprised by a lion in the wilderness:
Local legislatures have sure been keeping themselves busy lately. It seems like every day we hear about the passage of new state regulations designed to safeguard individuals from workplace harassment, wage & hour disputes, and other matters associated with the employer-employee relationship. Your clients are expected to stay on top of this ever-changing legal landscape. The financial cost of failing to remain in compliance could be devastating.
Get a quote today from Simons Agency and let us protect you!
Our clients often ask us to explain the difference between the replacement cost and the market value of a home.
The answer is often much different than people think.
Market value can be defined in part as the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale. Replacement cost, otherwise referred to as reconstruction cost, represents an estimate to rebuild your home today, from the ground up, using like kind and quality materials. This includes demolition, debris removal, foundations and a general contractor's profit and overhead commensurate for the project. The cost also includes architectural and engineering fees, plans, permits and building code updates.
Replacement cost changes over time and should be monitored regularly. As the home is improved or upgraded, replacement costs are impacted. It is important to keep your agent up to date when you make any modifications. Labor and material costs change at different rates depending on location and other factors. It is important to remain sensitive to these changes so that coverage can be adjusted accordingly.
Below are some factors influencing replacement costs.
Have you ever heard the saying that the three most important factors in real estate are location, location, location? This is because it is often the single biggest factor driving the market value of a home.
Location is similarly important when considering replacement cost of
your home. It is not uncommon for contractors to charge more when working in an affluent area. This might be due to extra time involved for plan approvals, environmental impact studies, such as in coastal areas, or even restrictions on which contractors are approved to work in a specific area. With less competition in a specific area, contractors can charge more. This often results in higher percentages for profit and overhead.
Like kind and quality
It is possible that a typical buyer in a real estate transaction would not pay more for a historically significant and costly carved marble fireplace surround imported from France. Nor would he or she pay more for a Ludowici clay tile roof versus a more common brand of similar style and function. However, in the above definition of replacement cost, like kind and quality are important factors. If these items were part of a covered loss, they would be replaced with a fireplace mantel of similar or equal historic significance, and the roof would be replaced with a new Ludowici clay tile roof.
Why should the foundation be included? Masonry products like brick and concrete do not burn like most materials found within a home. However, that does not mean it is fireproof. For example, concrete is made up of numerous components, such as water and aggregate, that can be damaged from rapidly changing, high temperatures, leaving the structural integrity of the concrete compromised.
Demolition and debris removal
Since our estimates are created based on a total loss scenario, demolition and debris removal costs are included.
These costs can vary significantly depending on the age of the home. A newer home constructed of conventional wood framing will often be less costly to remove when compared to an old home constructed of solid masonry. This is because most landfills charge by weight. Also, older homes often run the risk of contamination from things like asbestos and lead-based paint. Both can carry a hefty premium for disposal and may need to be removed individually.
There is also a growing trend of landfills not allowing the disposal of burned structures at all because after a fire, the aforementioned contaminates can not be separated. Debris removal can also be impacted by the quantity and type of personal property that was in the home, as electronics and other harmful content could be present.
Plans, permits, architectural and engineering fees
House plans and engineering studies typically cannot be resubmitted from an old project. Most municipalities will require a new copy with a recent date to help enssure that the documents meet current building codes. It is possible for building permits in affluent areas to cost tens of thousands of dollars or more, as they are typically based on the size and cost of the project.
Building code updates
When rebuilding older homes, costs can be incurred with common code updates. These may include things like earthquake-resistant design, energy conservation, property line setbacks and wildfire resistance. Another commonly encountered code update in certain municipalities is for fire sprinkler systems. It is possible that a new home or any home undergoing a significant remodel must have a residential fire sprinkler system installed.
In areas with high population density where lots are small, buildings are in close proximity to one another and streets are narrow. The ability to deliver, store and stage materials can be quite challenging. The same principals can be applied to mountain regions or hillside construction.
Unfortunately, we do not have the luxury of planning when a loss will occur. If we did, goods and services could be ordered well ahead of time so they are delivered as they are needed on the job site. Items like imported flooring, reclaimed beams or cabinetry that is truly custom designed and built specifically for your home can take extra time to plan, build and deliver. It is very common for higher fees to be charged during the reconstruction of a home in order to received goods and services on an expedited basis.
High-quality, mass-produced homes are a growing trend in the United States. Builders of these homes have the ability to buy goods and services in bulk, leveraging economies of scale, then pass some of the savings along to the consumer to gain a competitive edge in the marketplace. However, once a development is finished and the large-scale builder moves on to the next project, it won't return to rebuild one home in the event of a loss. This makes every home at the time of loss a custom home. The local home builder that does not have the buying power to leverage such economies of scale will have higher associated costs before ever driving the first nail.
For further questions on the matter, please contact our offices.
Flooding is a detrimental liability that will cause hundreds to thousands (to possibly tens of thousands!) of dollars in damage if you are not covered. It is important to ensure that you are not only covered, but that you have the proper amount of coverage as well. Since flood insurance policies often do not take effect for 30 days after the policy starts, you should make sure you purchase a policy as soon as you move into a new dwelling. Protect your home and belongings before it's too late!
Each year, thousands of US citizens are placed in a very distressing situation. That scenario arises once their home floods. Flooding will occur due to thunderstorms with excess rain, or the break of a levee. Regardless of the cause of flooding, there are several families who are left to purchase all of the repairs to their home on their own. This is often as a result of several Americans that ought to have flood insurance who don’t.
There are many reasons why a home-owner decides to not purchase flood amount of money. One amongst the foremost common reasons for doing this is due to the price. Several people erroneously believe that flood amount of money isn’t definitely worth the value. Sadly, there are several people who would like that they’d purchased the coverage once their home flooded. The price of flood insurance is nothing compared to the price of reconstruction a home.
Flooding, additionally called surface water, will come back from a storm or native body of water. Over one-quarter of all flood claims occur in low-risk areas. If your home is in a very high-risk zone the mortgage company will need you to hold flood insurance and it will be big-ticket. If your home is settled in a very low-risk zone the price is extremely cheap and well worthwhile. Flood insurance is provided by the Federal Emergency Management Agency and sold through native insurance agents.
If you’re considering casting off flood insurance, keep in mind that there’s a thirty-day waiting amount for brand new policies, that means that from the day you begin the policy there are thirty days before the coverage starts. This is often to keep folks from taking out a policy after they see a storm looming the weather channel. This is why it’s vital to begin your policy as soon as possible.
Typically, severe Artic weather attacks the Northeast and Midwest. This week, though, the first batch of Artic air has arrived and is gripping not only the Midwest but also most of the East Coast. According to forecasts, this will be followed by another reinforcing shot of excessively cold air towards the end of the week ahead. I thought it would be helpful to provide some important reminders.
Our research indicates frozen pipes cause some of the most common and costliest cold weather claims (>$18K, on average). However, we've learned that the risk of pipe bursts can increase around the holidays. Whether a school whose students leave for the break (and leave windows open) or a business that slows down for a couple days around the holidays, we've seen some very disruptive losses when pipes freeze and water flows – sometimes for days before being noticed.
As you might guess, ensuring adequate heat and monitoring facilities are important steps.
Slip and falls
Slip and fall accidents can be very costly for any business, whether they involve your employees or someone else legally on your premises. Each year these accidents result in thousands of workers' compensation or third party liability claims. In fact, in 2016, slip and falls accounted for 32% of our workers' compensation and 35% of our general liability claims.
This risk can increase substantially with winter weather. What can you do to prevent these expensive claims? We've got a checklis:
A FEW QUICK TIPS
This is a heavy topic of conversation, distracted driving… it impacts cognitive, manual & visual attention. Our goal is to offer a deeper understating of how these cell phones can cause these types of distractions, and how they can and will affect a person’s ability to safely operate a vehicle. We make it our goal to reach our customers eyes, so all of our customers understand the safety of staying off your cell phones while operating a vehicle.
Founded in 1984 by Jeff Quick, Quick Roofing, LLC has been serving builders and homeowners for 30 years. With a dedication to provide the highest quality workmanship and customer service, Quick Roofing has grown into one of the largest and most established roofing companies in areas in which we operate.
The diversified team of office personnel, project managers, roofing crews, repair technicians and sales representatives remain eager to serve clients with their combined expertise. While many companies start or ramp up because of storms, Quick Roofing is distinguished by its well established base in new construction, commercial and multi-family roofing. This allows Quick Roofing the privilege to provide professional installations by crews that have worked together for more than 25 years, and the confidence to offer one of the most esteemed warranties in the industry.
Assisted Living Centers • Multi-Family Complexes Hotels • Churches • Daycare & School Facilities Municipal Buildings • Warehouse Space Aviation Buildings • Hospitals and Medical Offices
Composition Shingles • Tile / Slate TPO / Firestone • Metal Roofing Duro-Last
If you see price gouging while all this craziness is going on, call or email:
Office of the Attorney General’s Consumer Protection Hotline
Toll-free at (800) 621-0508
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Flo is born to ramble with motor home coverage from Progressive insurance.