Tenant’s Improvements to the Premises

A common circumstance surrounding commercial leases involves the tenant making alterations, or improvementsto the rented premises. A strip mall retail location could be used for many different types of tenants. It is unreasonable to assume that the premises is already set up to handle any type of tenant from a clothing store to a restaurant. For example, a new tenant might have to build partitions, add refrigeration or install a kitchen.

The commercial property policy defines improvements and betterments as “fixtures, alterations, installations or additions that are made a part of the building that is occupied but not owned by the named insured, and that the named insured acquires or makes at his expense but cannot legally remove.” Since business personal property coverage insures the tenant’s “use interest” in improvements and betterments located at the rented premises, the amount of these improvements should be calculated into the limit you choose for your business personal property.

Insurance Industry Loses Big in 2011

When a wave of major storms strikes Ohio, or anywhere in the United States for that matter, your carrier uses insurance premiums to pay claims to help customers, like you, recover. If they expect more storms, your rates increase. Ohio has been rocked with several devastating storms this past year, causing damage from hail to tornadoes.

Catastrophe losses in 2011 caused the U.S. property and casualty insurance industry to experience its worst losses since 2002, and analysts say 2012 should only see modest improvement. A.M.Best, the industry rating agency, reported the industry experienced more than $44 billion in catastrophe losses, driving down net income.

Simply stated, a greater frequency and severity of storms create higher premiums, regardless of whether or not you have had a claim.

“We are in the midst of a very long-term trend. Whatever the underlying causes are, this is pushing up the cost of providing insurance in many parts of the country. Insurers have begun to reflect that in their rates,” said Robert Hartwig, chief economist and president of the Insurance Information Institute.

The Buckeye State ranks 6th lowest in the United States based on its average homeowners insurance premium. Even with the increase looming, the cost of coverage remains considerably lower in Ohio than in most other states.

How to save on homeowners insurance

The best way to reduce the impact of a rate increase is to talk to your independent insurance agent about your coverage options and let them find the best solution for your needs. Their knowledge and professionalism is your best option.

Protect Your Phone's Data with a Passcode

Do you have a passcode on your iPhone or Android device? If not it is recommended as phones can easily be miss placed or stolen. A passcode to get into your device will help keep your information private and secure. Many personal and business phones have apps on them that hold a lot of important personal information. That information in the wrong hands can be dangerous and because of this we have three steps we recommend in helping protect your phone.

The first step is simple; decide to put a passcode on your phone. I know, it may be annoying to have to type something into your phone each time you use it but it is better for you in the long run.

The second step is to make the passcode something more than just four digits. Recently there was a software invented called Micro Systemation XRY app. This software can crack any four digit code in only a few minutes. Currently this software is only used by law enforcement agencies however the hackers are never to far behind in developing their own. We recommend you using the setting in your phone that lets you put in more than just four digits. Letters and numbers help to make the cracking process harder. Throw in a few other characters and it becomes even harder to break.

The third step in protecting your phone’s data is to put on the setting in which your data is wiped from the phone after so many failed attempts to login. I know it would be annoying to lose your data from your phone but hopefully you have it synced and backed up on your computer or in a cloud (plus is someone stole your phone you not only lose the data anyway but also the phone). By having the phone wiped after so many failed attempts you are preventing hackers and thieves form being able to use software to try and figure out your passcode.

Carbon Monoxide Alarms Now Required Before Homes can be Sold in Washington

 

Carbon monoxide poisoning kills hundreds of people each year in the U.S. This poisonous gas is invisible and odorless, and so you cannot hear, taste, see or smell it. Many of its victims are individuals or entire families who, although they are aware they don't feel well, by the time the gas has taken effect they are disoriented and unable to save themselves. Young children and pets are usually the first affected by this killer.

As of April 1, 2012, Washington's RCW 19.27.530 requires all sellers to have operating carbon monoxide alarms installed in accordance to the state building code before a buyer or any person can legally occupy the residence following the sale. The building code (WAC 51-51-0315)  requires alarms to be installed:

1) outside of each separate sleeping area in the immediate vicinity of each bedroom;

2) on each level of the dwelling; and

3) in accordance with the manufacturer's recommendations.

The building code also requires that the alarms comply with UL 2034. There are no exceptions to this, and they may be electric or battery operated.

In addition, a property owner must install carbon monoxide alarms when performing any remodels, repairs or additions to their dwelling that require a building permit. (New construction has been required to have carbon monoxide alarms installed since January 2011.)

At times during power outages in cold weather, unsuspecting homeowners will operate propane heaters or barbeque grills inside in an effort to stay warm. One of the byproducts of this combustion is carbon monoxide. This can, and does, poison entire families while they sleep. Do not EVER use propane heaters or wood stoves without proper ventilation to the outside!

The alarms are triggered by carbon monoxide levels below those that can cause loss of ability to react and prevent death from exposure to this poisonous gas. Small children and pets will display symptoms before adults, so be aware if they suddenly start acting ill. Immediately open windows and exit the house, then call the police. Do not re-enter the building until the source of the gas has been eliminated.

Insurance Journal Article on Cyber Liability

On March 5th, 2012 the Insurance Journal published an article called "What Insured's Should Know About Avoiding Cyber Liability Exposures".  It was written by Christopher Bomar of  Boomarang Data Backup.  In the article he brings up scenarios of possible insurance claims, where the gaps might be in covering such claims and how to avoid such gaps.  It is a well written article and even has a quote from one of Fey Insurance's very own, Brian Fey. 

Please take a look at the article as it does a great job of showing the current status of Cyber Liability needs, gaps and exposures.

Article: What Insured's Should Know about Avoiding Cyber Liability Exposures

Water Damage Claims

Water damage is one of the most common reasons people make claims on their home insurance. Ruptured pipes, faulty appliances and backed-up drains often lead policyholders to inspect their homeowner policy wording carefully.

Water damage coverage in the homeowner insurance policy is a confusing subject. Usually, the damage caused by water will be covered, but the item causing the loss, such as a leaky pipe or broken appliance hose, will not be covered. While your insurance company will pay for the damaged flooring from a ruptured appliance hose, it will be the policyholder’s responsibility to replace the bad hose. Parts and appliances wear out and it is not the intent of an insurance policy to cover wear and tear.
Flood, which occurs when a nearby tributary or body of water breaches its banks and flows into your home, is not covered under homeowner insurance. You must purchase flood insurance for that. You can purchase flood insurance as long as your community participates in the National Flood Insurance Program.

Radio Frequency Indetification Thefts

Credit cards are gradually moving away from the swipe and process cards to the wireless transfer of financial data. This make shopping lines move quicker but it does create a new kind of theft. The technology is called Radio Frequency Identification (RFID). All you do is hold a card near a RFID scanner and the data is transferred. The problem with this is that computer savvy criminals can create scanners that steal your financial data right off your credit card, even if it is still in your wallet. Credit card companies are becoming aware of this issue and have worked to solve the problem with on off switches on the card that are triggered when a finger presses the chip that is imbedded in the card. One other way to prevent scanning theft is to purchase a RFID protected wallet. For example the HuMn Wallet has material that doesn’t allow RFID scanners to scan cards in the wallet.
So be sure to take precaution if your new credit card has the RFID chip imbedded inside. Ask if you can have a card that has the on/off switch and if not look into purchasing a RFID protected wallet.