Advocate Claim Service, Inc

Advocate Claim Service Newsletter January 2008

It is with great satisfaction that we bring this newsletter to you. In this issue and in coming months, we will discuss pertinent insurance topics which may affect you. We sincerely hope that you will find this newsletter informative and please do not hesitate to contact us should you have any questions or needs.

This months topics:

• How Well Do You Understand Your Fire Insurance Coverage?
• The American Society of Safety Engineers Offers Disaster Recovery Tips for Businesses
• Thorough After-Flood Cleanup Minimizes Mold Growth
• Take Steps to Protect Your Valuables

How Well Do You Understand Your Fire Insurance Coverage?

The extent of the damage caused by California wildfires over the last few years has made it clear how important it is to understand your fire insurance coverage before a disaster happens. It’s also important to understand how to proceed if you find yourself a victim of a large-scale fire.

In the immediate aftermath of a fire, you will need to take stock of the situation and of its ramifications. If the disaster is wide-scale, its sheer size creates two situations that will impact your ability to rebuild:

• The price of building materials will increase as the available supply is depleted and the demand for that supply continues to grow.
• The available number of contractors will be limited, resulting in their services commanding premium prices.

Under these circumstances, you must insist that your contractor and insurance adjuster work together to reach an agreed-upon price for reconstruction. Ask the contractor and adjustor to meet with you at your home to write the construction cost estimate.

How much will your insurance cover? Your policy should pay the cost to rebuild up to the insured amount if you insured your home for 100% of its estimated replacement cost at the time you purchased the policy. If you have an “Extended Replacement Cost” endorsement, it will pay an additional 25% or more of the insured amount. In addition, if you have a “Supplemental Building Ordinance” endorsement, your policy will cover anywhere from 10% to 100% of additional costs to bring the house up to date with any new construction codes implemented since your house was originally built.

To receive compensation for the contents of your home that were destroyed in the fire, you will have to produce an inventory of the items. For each item provide its description, age, life expectancy and replacement cost, including sales tax. To verify the replacement cost include the name of the store and salesperson, and the store telephone number. If you obtained the price on the Internet, list the web site address. Divide the age of the item by its average life expectancy to calculate an average percentage of depreciation to be deducted from each item. This will expedite the settlement process.

If your policy only covers replacement value, the adjuster will pay you the withheld depreciation difference when you replace the item with something comparable.

Your policy may also pay your additional living expenses, including your rent and related expenses for a comparable furnished living space, minus the expenses that are not a direct result of your home being destroyed, such as utility bills and mortgage payments. This coverage usually lasts up to 12 months, and the maximum amount is generally 20% of the insurance limit on your home.

You also are entitled to living expenses coverage even if your home isn’t damaged, but is uninhabitable because of a government order. However, in this instance, the coverage ends when the government permits you to return to your home.

Having the right insurance coverage in place can alleviate some of the trauma of living through a fire disaster.

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The American Society of Safety Engineers Offers Disaster Recovery Tips for Businesses

After a disaster occurs, preventing injuries to employees and minimizing property damage should be the top priorities for any business owner. The premises must be checked for safe occupancy, cleanup undertaken, systems safely restored, and countless other tasks performed before a company can get back to business as usual.

The following tips, adapted from those offered by the American Society of Safety Engineers (ASSE), can help expedite recovery and lessen the risk of injury.

Structural issues

• Before anyone enters the premises, hire qualified professionals to validate the structural integrity of the building.
• Check interior walls and ceilings for risk of collapse. Check for cracked windows and damaged exterior building materials, as these could fall onto pedestrians.
• Contact the proper government agencies to get approval to resume occupancy. Do not enter a building unless the proper clearances have been attained.

Cleanup

• Implement your cleanup in a safe manner. Provide training in proper selection and use of the personal protective equipment (PPE) that will be worn during the cleanup, such as eyewear, gloves and dust masks/ respirators.
• Dispose of broken glass, debris or other materials with sharp edges immediately. Evaluate waste disposal issues prior to beginning cleanup operations to ensure proper disposal. (ASSE offers a free “Hazardous Materials Safety Information Guide,” which is available by contacting customerservice@asse.org.)

Environmental issues

• Test the air quality in the workplace for asbestos and other chemicals and toxic agents.
• Check that water heater and gas furnace vents are clear and operable, as dust and debris can impede, or even stop, airflow. Inspect heating, ventilation and air conditioning (HVAC) systems before energizing and pressurizing them. Check lines and cabling on chiller systems for chemical leakage.
• Inspect and test sanitation systems to guard against potential exposure to toxic agents. Discard any unused foodstuffs. If the workspace has a kitchen, inspect oven hoods and other ventilation devices for clear and efficient operation.
• Check for gas and sewer leaks.

Systems assurances

• Clean and test fire and smoke alarms. If these systems are wired into other systems, make sure they are still compatible and work in an efficient and effective manner. Inspect sprinkler and chemical equipment functions. Determine if fire extinguishers still work. If damage is found, replace them immediately.
• Check electrical systems, computer cables and telecommunications’ equipment for any danger from exposure to electricity. Conduct these inspections from the outside to ensure that wiring and connections are not in danger of shorting out due to water damage from rain or fire-fighting efforts. If there is no access to electricity onsite, do not use fueled generators or heaters indoors.
• Inspect the condition of drain, fill, plumbing and hydraulic lines on processes and machines. Have plumbing lines evaluated and tested to detect any hazardous gases.

Working conditions

• Examine office furniture to see whether it can still withstand expected loads and uses. Make sure that shelving and other storage devices that are screwed or bolted to railing systems on walls and panels have not become unstable from water damage or explosions. Inspect office equipment to ensure it is level and stable.
• Check that lighting is still adequate, and that emergency lighting operates in the correct manner.
• Make sure flooring surfaces are safe and free from hazards that could contribute to slips, trips and falls.

The Federal Emergency Management Agency (www.fema.gov) and the National Institute for Occupational Safety and Health (www.cdc.gov/niosh) offer various materials to guide businesses through disaster preparation and recovery. Consult these before a disaster strikes, and when you think you are ready to resume operations.

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Thorough After-Flood Cleanup Minimizes Mold Growth

If you and your home are the victims of a flood, your cleanup must be thorough to ensure that mold growth is eliminated to the greatest extent possible. You should completely dry wet structures as soon as possible after the event. However, while you want to act quickly, approach the cleanup process carefully, to avoid the mishaps and accidents that can occur in the less-than-safe environment that a flooded home can be.

The following tips, courtesy of the Kansas Department of Health and Environment, can help you to thoroughly clean up while protecting your own health and safety:

• Keep children and pets out of the area until you have completely cleaned it.
• Wear rubber boots, rubber gloves and goggles during cleanup.
• Discard items that cannot be washed and disinfected, including mattresses, carpeting, carpet padding, rugs, upholstered furniture, cosmetics, stuffed animals, baby toys, pillows, foam rubber items, books, wall coverings and paper products.
• Discard drywall and insulation that has been contaminated with sewage or flood water.
• Clean all hard surfaces such as flooring, concrete, molding, wood and metal furniture, countertops, appliances, sinks, and other plumbing fixtures with hot water and laundry or dish detergent.
• Use fans, air conditioning units and dehumidifiers to help dry the area.
• Wash your hands with soap and water after you have finished cleaning. Use water that has been boiled for one minute and then cooled. You can also disinfect water for personal hygiene by creating a solution of household bleach mixed with water.
• Wash all clothes worn during the cleanup in hot water and detergent, separately from uncontaminated clothes and linens. Use a self-service laundry for washing large quantities of clothes and linens until your onsite wastewater system has been professionally inspected and serviced.
• Get immediate medical attention if you become injured or ill.

If you need to turn off the main power and have standing water inside your home, remember to do so only when you are in a dry location. If you must enter standing water to reach the main power switch, call an electrician to turn it off. Never use an electric tool or appliance to turn off power while standing in water. Be sure the electrician checks the house’s electrical system before turning on the power.

If the house has been closed up for several days, enter only long enough to open doors and windows, and then leave them open for at least 30 minutes before you stay inside for any length of time. This allows potentially hazardous air to circulate out of the rooms, while letting fresh air inside.

As always, don’t hesitate to call a qualified professional for advice and/or help with the cleanup process.

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Take Steps to Protect Your Valuables

If you’re like most people, you own at least a handful of items that are extremely meaningful to you. Whether these objects hold financial or sentimental value, it’s important to protect your cherished treasures.

From jewelry and silverware to antiques and art, countless valuables are stolen or destroyed each and every year. The FBI estimates that more than 6 billion home burglaries take place in the United States every year. And, according to the National Fire Protection Agency, a residential structure fire occurs every 82 seconds in America. These statistics are good reasons why you should take the appropriate steps to safeguard your valuables.

Here are a few things you should consider when it comes to protecting your valuables from burglary, fire or another disaster:

• Make a list. It can be difficult to remember all the things of value that you own, especially in the wake of a difficult situation, such as a burglary, house fire or other catastrophe. Therefore, one of the simplest yet most effective steps you can take to protect your valuables is to make a list of these items.
  
  The more detailed the list, the better. If any of your valuables have serial numbers, be sure to include that information. You also should include any identifying features of the object as well as information about the object’s value.
  
  Keep a copy of this list either in a locked fire safe or a safety deposit box. This way, in the unfortunate circumstance that your home is burglarized or damaged, you can refer to your list to determine which of your valuables have been stolen or destroyed.
  
  If you lose items in a house fire or burglary, it is your responsibility to prove loss to your insurance company. Providing the insurance company with a detailed written record of your valuables will increase the odds that your claim is processed fairly and quickly.
• Take photos and videos. You also should keep photos and/or videos of your most valuable items. For insurance purposes, even a simple snapshot is sufficient. However, it may be easier to shoot an entire “home inventory” video. This type of video will allow you to account for all of your belongings. Remember to keep these photos and videos in a safe place—either in a locked fire safe or a safety deposit box.
• Engrave your items. You also may consider using an electric engraving pen to engrave your name or an identifying number on all of your most valuable items. If law enforcement authorities find a thief in possession of these marked items, it will be much easier for them to prosecute the criminal and return the objects to you. Additionally, engraving your name on valuables may discourage a thief from stealing the objects in the first place because marked items are much more difficult to sell.
• Invest in a safe. You may want to purchase a fire-resistant, combination safe where you can store some valuables, as well as information about your valuables. There are a wide variety of safes available on the market today. Depending on the features included, the price of safes can range anywhere from $150 to $2,000 and above. Although this may seem costly, a good safe could prove to be well worth the expense if it protects your valuables from theft or harm.

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Disclaimer

Information contained in this newsletter about product offerings, services, or benefits is illustrative and general in description, and is not intended to be relied on as complete information. While every attempt is made to ensure the accuracy of the information provided, we do not warranty the accuracy of the information. Therefore, information should be relied upon only when coordinated with professional tax and legal advice.

Advocate Claims Service provides insurance claim help to Florida home and commercial property owners
to ensure you receive a fair settlement for your property insurance claim.

We provide public adjusting services to South Florida including:

Broward County, Miami-Dade County & Palm Beach County

and the cities of

Boca Raton   •   Coconut Creek   •   Coral Gables   •   Coral Springs   •   Davie   •   Fort Lauderdale
Hallandale   •   Hollywood   •   Jupiter   •   Margate   •   Miami   •   Mirimar   •   Pembroke Pines
Plantation   •   South Beach   •   Stuart   •   Tamarac   •   West Palm Beach

Residential Insurance Claims   •   Commercial Insurance Claims   •   Condo Insurance Claims
Hurricane & Windstorm Insurance Claims   •   Mold Insurance Claims   •   Flood Insurance Claims
Fire Insurance Claims