This is a recommendation we always make to homeowners planning significant renovations – check your contractor’s commercial insurance. The simple fact is, if you don’t, your home insurance policy may have to kick in to pay for any losses that occur. How can your home insurance play a role here?

Here’s a simple example that’s happened plenty of times. You hire a contractor to add a new bathroom to your home or to finish out the attic. The contractor gets started, but a worker is hurt on the job. Perhaps the worker falls and suffers a broken bone. Or, the contractor causes damage to your home through poor workmanship. In situations like this, you want to know the contractor’s insurance is there to provide financial support if there is a need.

What should you know? How can you protect yourself?

What Type of Commercial Insurance Does a Contractor Need?

You may have heard recommendations previously to ask if a contractor is properly insured. Your goal should be to make sure the contractor is insured, but also that it is fully licensed. You want to see the Certificate of Insurance provided by the insurance company to the company as well. Take a look at some of the most valuable types of coverage these contractors should have in place.

Workers’ Compensation

Perhaps the most important step is to ensure the company has proper workers’ compensation insurance. This type of insurance covers the costs of worker injuries on the job, including at your home, if they are hurt while working. In Wisconsin, all employers with three or more employees must have this type of insurance in place.

General Liability Insurance

Commercial general liability insurance provides for help when the company is facing negligent claims. If the company, for example, makes a large mistake while planning or executing your project, this policy may help cover some of those costs.

Builders Risk Insurance

For larger scale projects, builders risk insurance is important. It can help provide some protection for the materials, fixtures, and equipment used on the job.

Commercial Auto Insurance

Most contractors operate vehicles as a component of the job. Most have a large amount of equipment or tools in them. But, what happens if the tools are stolen while the car is parked on your property? This type of insurance may help cover those losses.

What Your Steps Are

As you work to hire a contractor for your project, take a step back. If you focus on just a few things, you may be able to avoid some of these risks.

#1: Know Who You Are Hiring

Learn about the company’s reputation and ability to meet your needs. You want to review the type of service they offer, their workmanship, and any information from previous clients. Look at pictures to see the differences when possible.

#2: Make Sure You Verify the Insurance

Call your Madison, WI home insurance agency to find out if the company has coverage. Our team can help to verify this information for you. We can work to make sure the coverage is adequate for your risks. Be sure to check that the policy is up to date, too.

#3: Let Us Update Your Existing Policy

Finally, you need to be sure your home’s insurance policy is up to date after your project is up to date. For example, a new home addition adds value to your home. Our team works closely with you to make sure your policy matches the value of your home.

At Homewood Insurance Agency, we are happy to help you find the policy you need. Making sure your contractor’s insurance is up to date, and right for the project is essential.

There were more than 1.3 million fires that caused $14.3 billion of damage to homes in the U.S. in 2015 alone. Thousands of people were injured in those fires, and some even lost their lives. Although those numbers are down approximately 20 percent since 2006, there is still much to be learned about the ways these tragedies can be prevented. In this post, we’ll explore seven of the most common causes of household fires and what you can do to prevent them.

Kitchen Cooking

By far, in-home cooking is the number one cause of house fires and fire-related injuries – something that is easily prevented with proper precautions. When you cook, be sure to remain in the room at all times when using your range to fry, grill, or boil food. If you are baking, always use a timer, so you do not forget about the food while it is still in the oven. Furthermore, scan the cooking area for any materials, such as paper towels or oven mitts, which could easily catch fire if left near your cooking equipment.

You should also have a contingency plan in place in the event of a kitchen fire. For example, you wouldn’t want to use a fire extinguisher or douse a grease fire with water, as it could worsen conditions. Instead, slide a lid over the fire to contain and smother it, and then turn off the burner. If you cannot safely do so, remove everyone from the home and call 9-1-1.

Grilling

Grilling not only makes your food taste great, but it could be just the reason you need to get together with friends for a good time. Of course, it’s all fun and games until a fire breaks out, destroying your deck and potentially spreading to your home. Before you start up an open flame this summer, make sure to pull the grill away from your deck railings, eaves, and any overhanging branches. Stay beside the grill at all times while cooking, and clean off residue and buildup before using it again.

Burning Candles

Candles are responsible for thousands of home fires every year. Even small flames contained in a fire-safe container can spark a fire – particularly when combustible materials are left nearby. While flameless options are the safest, there are still steps you can take to reduce your risk of a candle-related fire if you choose to burn the real thing. First, place candles out of the reach of children and pets, where they could easily be knocked over and start a fire. Next, be sure to remove all flammable materials from the vicinity, including combustible liquids.  Finally, never leave a candle burning unattended or while you are sleeping.

Dirty Dryer Vents

Nearly twice as many house fires are caused by dryer vents each year than those that are caused by candles. When lint builds up in the vent, it can get overheated and catch fire. To prevent a blaze, always remove lint from the dryer screen each time you complete or start a load. It’s a good idea to keep an eye on your vent duct, as well. Accordion-style ducts can create ‘low-points’ for lint to accumulate over time, ultimately creating a fire hazard. Alternatively, you could replace the foil duct with a short, metal duct that is less likely to sag.

Electrical Problems

There are tens of thousands of electrical fires each year in the U.S., many of which are caused by loose-fitting or overloaded electrical outlets. You can reduce the risk of these types of fires by unplugging appliances when they are not in use and using extension cords and surge protectors both temporarily and sparingly. Never force a plug into an outlet or remove its third grounding prong to make it fit. Finally, make sure your home is equipped with working ground fault circuit interrupters (GCIs) and arc-fault circuit interrupters (AFCIs), which can help prevent electrical fires.

Portable Heaters

It stays cold many months of the year here in Wisconsin, which is why many people opt to use portable heaters as a means of spot-warming the home and reducing heating costs. If you opt for a space heater, be sure to leave it in an open space at least three feet from other items and combustible materials. Make sure the heater is on level ground to reduce the risk of it tipping over, and never leave it running unattended.

Flammables

Many people are surprised to find that you do not always need the application of heat to start a fire. However, that is exactly what can happen when you combine flammable liquids like solvents and stains with combustible materials, like rags and drop cloths. To avoid a disaster, let rags dry in a metal container with an air-tight lid, but never in an open-air pile. Always read the manufacturer instructions for proper disposal of flammable liquids.

While you may not be able to prevent all fires, proper precautions can significantly reduce your risk of filing an insurance claim in the future. For more information about preventing fires and the ways you can protect yourself against loss, contact our office today.

Over the years, the Madison area has seen too many fires that left families suffering the loss of their property and in some cases, even their lives. We would like to pass along a few suggestions to ensure this never happens to you and your family.

Install a Carbon Monoxide Detector

Do you know that carbon monoxide is a type of odorless gas that you cannot see that can cause death within a matter of hours? What’s even more worrisome, according to the U.S. Centers for Disease Control and Prevention, is that the most common causes of it are present in just about every Madison home – you have a furnace, clothes dryer, fireplace, or attached garage, a small opening on a vent can cause a leak and without proper venting, become life-threatening in a matter of minutes.

So, what can you do?

• Install carbon monoxide detectors in your home. Place them on each floor of the home, especially near the bedrooms.
• Test them every month. Be sure you replace batteries at least one time a year.
• Have a professional maintain all your home appliances. Invest in an annual inspection to ensure they are all working safely.

Install or Update Smoke and Fire Alarms

Smoke alarms are relatively inexpensive and they save lives. Be sure you have the right type of alarm, and you have enough of them amount of alarms in your home. Here’s your checklist:

• Invest in smoke and fire alarms (combinations are available). These detect smoke as well as heat.
• Upgrade to a connected system. These will warn of a risk throughout the home, not just in one area. Some even link to your smartphone for improved communication.
• Test them on the first of every month. Replace the battery one time every year – at least. And, replace them in total every ten years.
• Check to be sure your alarms are not affected by the recent Kidde recall. If you have these fire alarms in your home, you need to replace them immediately.

Invest in Fire Extinguishers

Fire extinguishers are necessary to prevent a small fire from becoming a big one. We encourage you to purchase enough for the entire house as well as your garage, then teach the entire family how to use them. This will provide you with incredible protection going forward. Here’s your checklist:

• Choose the right fire extinguisher. There are various models available. We recommend one that can handle paper and plastic, as well as electrical, and chemical type fires. These are the most common concerns in homes. A Class ABC extinguisher that is rated by a national agency is best.
• Ensure every member knows how to use it. OSHA offers some guidance on this.
• And, be sure to look for recalls. If you have a Kidde model, you may need to replace it with a new one.

While we are not fire prevention experts, we are available to answer your questions about how to protect your finances in the event of a fire. Call or email us today to talk about how we can help you with your homeowners insurance.

 

It’s time for spring – we are all waiting for the last snowfall, that moment when you know that spring is here and winter is over. In Wisconsin, it seems to take a long time to get here. That’s why many of us spend March days looking for ideas and making plans for spring projects. Whether you’ve been to the home and garden show or just see your friends making changes, it’s important to keep your home insurance agent in the loop about what you are doing.

Does Landscaping Really Matter?

Home insurance does not typically cover your landscaping. For example, it covers structure-based features. It generally does not cover features such as:

• Retaining walls
• Rocks and landscaping areas
• Plants
• Trees
• Raised garden beds
• Fire Pits

These types of changes to your home are not usually something you need to let your insurance agent know about. However, if you are putting a sizable amount of money into them, keep in mind they do not generally have protection. Some policies will cover cleanup after a covered event like a storm, but they do not generally replace these features.

Your Other Structures Insurance

The main reason for this is to make sure your projects are all properly covered by your home’s insurance plan. Your policy has two major portions.

• Coverage A – Dwelling: It provides coverage up to a stated maximum amount for the structure itself, your home and other permanently attached features.
• Coverage B – Other Structures: This covers structures on your property. The maximum here is often just 10 percent of the Coverage A amount.

That means if you have a home that’s worth $200,000, your other structure coverage is worth about $20,000. Now, let’s say that your spring project is to build a large garage on your property. It may contain a workshop, store your vehicles, or be used for other reasons. In all cases, this is going to be a large investment. If it costs you $30,000 to build this structure, you’ll be limiting your coverage. If a fire occurs, for example, you would only receive $20,000 in coverage, not the full $30,000 you need to replace it. That’s a problem.

Our goal is to make sure we update your policy to reflect the value of any structures you add to the home. It’s always a good idea to let us know when you are making these changes.

What Types of Structures Could This Include?

It includes any type of structure you add that’s value. If you lost it, could you easily replace it affordably? Most often, these are the types of projects that fall under Other Structures coverage:

• Garden Sheds
• Garages
• Fences
• Gazebos
• Pools
• Decks

Our goal is to be sure you have ample protection in place for these types of structures. With a simple phone call to our team, we can assure you.

Don’t Forget Special Structures

Another concern has to do with special structures. Sometimes, these are higher risk additions to your property. They may need to be specifically mentioned in your policy to make sure claims are covered on them. Here are some examples:

• Pools
• Outdoor kitchens
• Outdoor fireplaces
• Outdoor fire pits

Let our team add these to your policy and verify your protection. It is the best way to minimize any risk to you if you have to file a claim.

At Homewood Insurance Agency, we are here to speak to you. What is on your to-do list this spring? Do any of those projects warrant changes to your policy? We can let you know when you give us a call.