Archive for the ‘Insurance’ Category

Cut Your Risks: Build – or Rebuild – Sustainably

Cut Your Risks: Build – or Rebuild – Sustainably

This article was contributed by Carrie Van Brunt-Wiley, Editor of the HomeownersInsurance.com blog. Carrie has been writing insurance news and consumer information for HomeInsurance.com since 2008. She graduated from the University of North Carolina in Wilmington in 2005 with a B.A. in Professional Writing and Journalism.

Green building practices do more than protect the environment, and smart homeowners have more than energy savings to gain when they strive to comply with LEED requirements. Homes built with sustainable, energy-efficient materials are proving to be less vulnerable to wind, hail and water, making them better investments for homebuyers and more attractive to insurers seeking to lessen risk. This could mean lower insurance premiums for homeowners who take steps to increase their homes’ sustainability.  

Shelter from the storm

Extreme weather is nothing new to Louisiana, but the devastation wrought by Hurricane Katrina was particularly severe.  The need to rethink building practices became all too clear overnight. If there is a silver lining to be found in the Katrina disaster, it’s that those communities devastated by the hurricane have had – and still have – the opportunity to rebuild in such a way that should make them better able to withstand the next storm that blows through.

The Insurance Information Institute (III) reports an average cost of more than $6,000 to mitigate an insurance claim caused by severe weather. According to the III, Hurricane Katrina cost $16.2 billion in insurance claims, averaging $96,821 each. Consider how much lower this might have been if more homes and businesses had been built using impact-resistant roofing materials such as aluminum or steel that can withstand not only fire but wind, hail and flying debris. Some insurance companies already offer premium discounts to Louisiana homeowners who install these roofing upgrades.

It pays to upgrade your home

Water damage claims typically cost insurance companies around $7,000, according to the III, and make up almost 25% of homeowners claims in the U.S.  In an effort to bring this average down, some insurance companies may offer lower premiums for homes that earn Indoor Water Efficiency points by complying with the LEED v2009 requirement of 20% water savings.

Following are some other upgrades that could lower your homeowners insurance costs:

  • New plumbing systems
  • Updated HVAC systems
  • Modernized electrical systems

Updating these systems in your home can help you avoid expensive water damage, mold and fire claims. Insurance companies recognize that you are lowering your chance of filing claims and are likely to reward your efforts.

The benefits of green building are so great that some homeowners insurance companies now offer green replacement coverage for standard homes.  If a non-LEED certified home is damaged or devastated by covered peril, green replacement covers the cost to rebuild using sustainable, energy-efficient materials.

Savvy homeowners know that saving energy and materials are the underlying reasons to go green. But they also understand that the value of sustainable building goes beyond those savings. One way you could realize that value is by lowering your home insurance risk, which could mean lower home insurance premiums.

Enhanced by Zemanta
Posted in:     Construction News, Green Building, Hurricane, Insurance  /  Tags: , ,   /   Leave a comment

Louisiana Contractors – Workers Compensation Insurance

Back in 2009 this blog reported on the very topic of Workers Compensation insurance, stating that 1 and 5 businesses are breaking workers compensation laws. In my everyday practice, I feel like the trend is still prevalent in the construction industry. The main reason being is due to the exorbitant price of this insurance on contractors.

Workers Compensation is codified in Louisiana under Revised Statute 23:1021 et seq. There are a myriad of rules and definitions within this chapter of the code that would make any contractors head spin. There are a few key items to remember when classifying employees. First and foremost is that there is a presumption of employee status, as seen in La. R.S. 23:1044. This can be overcome by a number of factors which would make the worker, an independent contrator rather than a employee. La R.S. 23:1045 is where the law states that independent contractors and subcontractors are exempt from coverage. Although the price to insure all employees under workers comp insurance is high, the price that is paid if an accident happens to an uninsured worker is much higher. Furthermore, when the insuring companies do an audit at the end of the year of the status, there can be a hefty price tag for improper reporting.

I represent a number of clients who are learning the hard way that companies like LWCC and Louisiana Home Builders Association are not fun to litigate against for a contractor trying to make profits. These companies have either in-house attorneys or law firms who handle these cases day in and day out. There is almost no incentive for them to settle claims because there is no fear of pricey litigation. As for the contractor, attorney fee bills keep going higher and at the end of the day the contractor can pay double and triple of what they would have if they had properly reported or settled early.

So let this be a warning to all contractors who are trying to push the line when it comes to workers compensation insurance, its just not worth it. Just like fighting any insurance company, even if the insurer is wrong, they will fight to the bitter end to be proven so. Taking an early haircut, so that you can get back to making money in the industry, can be a win-win for your construction company.

Posted in:     Construction Contracts, Construction News, Disputes, Insurance, Labor Law, Litigation, Louisiana, Payment Requirements  /  Tags: , , , , , , ,   /   1 Comment

Mediation! New Service Available at Wolfe Law

Seth J. Smiley, partner at Wolfe Law Group, LLC and author of ConstructionLawMonitor.com is now a formally trained mediator. New Orleans just hosted the AAAU’s (American Arbitration Association University), Essential Skills for the New Mediator workshop in downtown, hosted by Neil Carmichael.

Why would parties want to mediate a dispute instead of going to court? That answer is easy, yet has many factors. The most important are that mediation is less expensive and much more efficient compared to litigation. But the most important factor is that the parties control their own outcome, rather than a group of strangers (jury).

So if you are in a dispute and are looking for an economical, logical and swift conclusion that is mutually agreeable between you and your adversary, then mediation may be just what you are looking for. Contact the Wolfe Law Group, LLC for more details.

Posted in:     About Our Services, Arbitration & ADR, Business Matters, California, Collections, Construction News, Disputes, Green Building, Insurance, Litigation, Louisiana, Oregon, Washington  /  Tags: , , , , , , , , , , , ,   /   1 Comment

Construction Insurance Rates Predicted To Increase

According to a recent Press Release from Marsh, a leader in insurance broking and risk management, construction firms across the U.S. will be facing new challenges in the upcoming year. Insurance rates have been declining for close to a decade, but rates are forecasted to increase between 8 and 10 percent. Firms with poor loss histories will receive higher rates, and some may not even be able to renew their policies.

This rise in rates is apparently the result of “soft market conditions” in recent years. Michael Anderson, Leader of Marsh’s U.S. Construction Practice, stated, “This comes against the backdrop of medical cost inflation and changes to some state statutes that have extended coverage beyond the insurers’ originally intended scope.” Mr. Anderson also goes on to explain that even with the increase in rates, the industry’s capital is still strong resulting in market conditions remaining competitive.

To read more about this Press Release and other interesting Construction Market Updatesclick here.

Contractors need to be sure to stay current on all insurance so that the contractor will limit its exposure when occurrences happen. Being insured is a major expense in all construction companies. That expense will be justified when a claim is made. Insurers seek to exclude or deny coverage, therefore a good attorney will be needed to fight back. Here at Wolfe Law Group, LLC we handle situations where we work with insurers to aid our clients and other situations where we fight insurers to get them to pay our clients what they are owed under the policy.

Posted in:     Business Matters, Construction News, Insurance  /  Tags: , , , , , , , ,   /   Leave a comment

Slow Moving Hurricane Isaac

As Hurricane Isaac plowed into South Louisiana it decided that it wanted to hang around for a while. Currently the center is just above Baton Rouge, La and has been moving at 6mph all day. Essentially the City of New Orleans has been dealing with 40mph + sustained winds for the past twenty-four hours. The rainfall is now the biggest factor because the large amounts have no where to go, therefore flooding is an issue. Weather Channel recently reported over 20″ of rainfall in Audubon Park located in Uptown New Orleans.

Baton Rouge, Louisiana’s capitol city, is being hit hard with wind and rain. The majority of Louisiana’s population lives in the I-10 / I-12 corridor. These are the areas that have taken on Isaac with full force. Plaquemines Parish has probably the worst damage thus far where waters of the storm surge rose above the levees. Other hard hit Parishes of Louisiana include, Orleans, Jefferson, St. Bernard, St. Tammany, Tangipahoa, St. John, St. Charles, Ascension, Livingston and East Baton Rouge. Residents of these Parishes will be out of the weather soon but the trouble will continue with the clean up and lack of power. Entergy has its work cut out when it commences restoring power to the millions living in the area.

Thursday and Friday, will be days of cleanup and restoring life back to normal. Assessment of damages will be critical to a swift and full recovery. More to come from ConstructionLawMonitor.com

Posted in:     Around The Web, Construction News, Hurricane, Insurance, Louisiana  /  Tags: , , , , , , , , , , , , , , , , , , , , , ,   /   Leave a comment