Tel: 619-259-5459
Competitive Edge Insurance
  • Construction
  • Business
    • Health and Wellness Insurance
    • Cyber Liability
    • Bonding
    • General Business Insurance
  • Personal Lines
    • Auto Insurance
    • Boat Insurance
    • Homeowners Insurance
  • About Us
  • Resources
    • Articles and Insights
    • Trusted Advisors
  • Contact
  • Menu Menu
  • LinkedIn
  • Instagram
  • Facebook
  • Youtube

Posts

How Does a Building Owner Know if They Are Underinsured?

May 8, 2022/in News /by Amanda Rogers

As a building owner, the consequences of your building being underinsured can be detrimental. Even so, 75% of commercial buildings are currently underinsured. As a building owner or property investor, how can you make sure your building is adequately insured?

Today, we have Brenda Jo Robyn, founder of Competitive Edge Insurance, on camera to answer this question. What elements can you look at to identify if you’re underinsured? What steps can you take to stay adequately insured?

Let’s see what she has to say.

Elements That Can Show a Property is Underinsured

Picture this: You have a building, but don’t know the last time it was evaluated in terms of a replacement cost. The building has most likely had some renovations in the last five to 10 years.

This considered, what elements do you need to look at to see if your building is underinsured?

Increase in Building Costs

As many have well noticed, the average cost of buildings has gone up. In our community, where the Competitive Edge office is housed, prices have jumped from $275 a square foot to $325 a square foot.

When you’re insuring your building, it’s really important to take this shift into consideration. Moreover, consider appraising the building for the replacement to rebuild from the ground up (but more on this later).

Water Damage Claims

Secondly, most building owners have little or no protection for water damage claims. Hold on… Don’t roll your eyes yet!

While most building owners have fire on their radar, many don’t think about water. However, they should—considering over 44% of homeowners or property investors have experienced water damage inside the residence.

Water damage can cost a business owner anywhere from $5,000 to $50,000. Today, we’re seeing more $50,000 to $75,000 claims being paid. And why is that? 

There are many ways this can happen. Imagine this scenario: A building owner goes away for the weekend, and there’s been a leak he or she doesn’t know about. Or, maybe it’s in a commercial building and a toilet is leaking into the floor below. Again, the owner is three to four days out, and all of a sudden now there’s mold. It may be in the walls and have to be remediated. It can be quite costly to repair that.

Regardless, many people have a mere $5,000 worth of water damage on their policy. It’s not enough.

What Can I Do to Make Sure My Building Is Properly Insured?

There’s one primary thing a building owner can and should do to ensure that their building is adequately insured.

Property Valuations

The first place Brenda Jo recommends starting is ensuring every building owner has a currently valued property.

Having a currently valued property looks at a replacement cost estimate, which no, it’s not intended to replace the original asset (unless it’s a reproduction), but the valuation is intended that the new building would be able to serve in the same purpose that the old building existed for.

Every building is unique. So, how do you calculate this cost estimate?

A building’s cost estimate is based on:

  • Similar designs
  • Construction standards
  • Quality of workmanship
  • Uniqueness or complexity (i.e. standard building vs. a super custom building)
  • Building age
  • Common elements
  • Current building codes
  • Hard construction costs (i.e. materials)
  • Soft construction costs (i.e. design plans, demolition costs)
  • Location (Is the building in the city or rural?)

Conducting an annual insurance review is also key, and takes little to no time.

It can be difficult to arrive at this figure yourself, which is why our team at Competitive Edge Insurance is here to help.

Now, we’ve talked about water… Let’s chat about protecting your building from fire. Read on to find out why you need fire insurance as a property investor.

https://compedgeins.com/wp-content/uploads/2022/04/How-Does-a-Building-Owner-Know-if-They-Are-Underinsured-2.png 628 1200 Amanda Rogers https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Amanda Rogers2022-05-08 19:00:002022-04-27 12:42:05How Does a Building Owner Know if They Are Underinsured?

How to Protect Your Business From a Fire

April 3, 2022/in California, General Business Insurance /by Amanda Rogers

As a business owner, there are many things to keep track of: revenue, expenses, profit, client information, the list goes on. We’re guessing, however, that protecting your business from fire isn’t at the top of your list. We’re here to get you thinking about how to protect your business from fire.

Tips on Protecting Your Business from a Fire

Fire season is right around the corner. So, what can you do to protect your business? At Competitive Edge Insurance, we have a few strategies in mind.

Have an Active Fire Protection Plan

Ensure your business has an active fire protection plan in place. An active fire protection plan includes water spray systems, deluge systems, sprinkler systems, fire water monitors, etc. Make sure that all of these systems are tested and in good working order (functioning with fresh batteries, etc.)

An evacuation plan should be crafted and distributed to all employees. Perform practice drills with your team members to ensure everyone understands their role in the event of an emergency.

Spring Cleaning

Spring cleaning is important! When it comes to fire protection, this might look like:

  • Carefully storing combustible and flammable materials
  • Cleaning the perimeter of your building (i.e. eliminating dry brush and quick-burning foliage)

Read more in this article from VFS Fire & Security Services for everything you need to know on prepping the outside of your commercial building for summer.

Perform Routine Building Maintenance

The last thing you need during an evacuation is a blocked walkway or doorway. Ensure all fire lanes are clear and access to fire hydrants is unobstructed.

Moreover, the address of your building should be visible from the street in the event that emergency personnel are called onto the scene.

Invest in Fire Insurance

Fire insurance is defined as “a form of property insurance that covers damage and losses caused by fire.” Although most homeowners’ policies include some amount of fire protection, additional coverage is often considered in the event that property is lost or damaged due to fire.

What Could Your Business Face Without Fire Insurance?

The consequences of not having fire insurance can be detrimental considering your business is likely one of your largest assets.

Fire insurance can be essential depending on where you live. For example, in California, we’ve seen an uptick in wildfires in recent years, according to the California Air Resources Board. In fact, the area burned by California wildfires has been increasing each year since 1950. Eight of the state’s historical 20 largest wildfires have occurred since 2017.

Fire insurance can help minimize the financial burden in the event that a fire at your business does occur. For more information on how to insure your property, contact our team of experts at Competitive Edge Insurance. Until then, read up on risk mitigation for property investors.

https://compedgeins.com/wp-content/uploads/2022/04/How-to-Protect-Your-Business-From-a-Fire.png 628 1200 Amanda Rogers https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Amanda Rogers2022-04-03 07:00:002022-03-30 15:41:48How to Protect Your Business From a Fire

Will Homeowners Insurance Cover a Construction Project?

March 6, 2022/in Construction, News /by Amanda Rogers

So, you want to do a renovation or some construction on your home. Well, you’re not the only one! According to various studies, home remodeling has been hotter than ever during the COVID-19 pandemic. In fact, Houzz, an online home remodeling platform, reported a 58% annual increase in project leads for home professionals in June of 2020.

We don’t blame any of you homeowners for wanting to spruce things up, especially considering all the extra time many individuals and families have been spending at home the past two years.

When tackling a construction project on your property, however, it’s important to consider the bandwidth of your homeowners insurance. Is it enough? Or, should you consider investing in builders risk insurance as well?

Homeowners Insurance vs. Builders Risk Insurance

First things first, what’s the difference?

Homeowners Insurance

Homeowners insurance is defined as “a form of property insurance that covers losses and damages to an individual’s residence, along with furnishings and other assets in the home.”

It’s important to note that every homeowners insurance policy has a liability limit. This liability limit “determines the amount of coverage the insured has should an unfortunate incident occur.”

Homeowners insurance is typically used to repair or replace your home and its contents in the event of damage.

Builders Risk Insurance

Builders risk insurance, on the other hand, is not quite the same. Builders risk insurance is also known as “course of construction insurance.”

Hence its name, this type of insurance, is a type of property insurance that protects your home, or other buildings that are under construction. This coverage is essential to protecting projects from property damage that occurs due to:

  • Fire
  • Lightning
  • Hail
  • Explosions
  • Theft
  • Vandalism
  • Acts of God, for example, hurricanes

Builders risk insurance is a crucial part of a homeowner’s risk management strategy.

Will Homeowners Insurance Cover a Construction Project?

Is your homeowners insurance enough?

Whether you’re considering a from-the-ground-up construction project, kitchen or bathroom remodeling, or even room addition, there’s nothing more important than making sure you have the proper coverage.

Although each policy offers valuable coverage, they exist for separate types of risks. It’s important to note that while each policy will, of course, differ from carrier to carrier, homeowners should not rely on a homeowners policy alone to sustain the financial burden should a loss regarding their construction project occur.

After all, if homeowners insurance and builders risk insurance both covered the same risks, there would be no need for each to exist.

As a general rule, homeowners insurance covers damage to a property already in tact; builders risk covers damage to a property that is under construction.

Obtain the Coverage You Need

By consulting with an insurance broker prior to beginning a construction project on your home, you can learn all about gaps in homeowners insurance and where you may need additional coverage depending on your unique policy.

If you’re considering a project of your own, read on to learn more about how the California labor shortage is affecting the construction industry, and if there are qualified workers available to you at all.

https://compedgeins.com/wp-content/uploads/2022/02/Will-Homeowners-Insurance-Cover-a-Construction-Project-1200-Ă—-628-px.png 628 1200 Amanda Rogers https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Amanda Rogers2022-03-06 07:00:002022-02-25 10:52:06Will Homeowners Insurance Cover a Construction Project?

What’s the Difference Between a Surety Bond and a Contract Bond?

November 28, 2021/in Bonding, Construction, High-Risk Insurance, News, Video /by Amanda Rogers

The world of insurance can be complex. And for contractors, work can be dangerous, too. As a contractor, the question of what insurance you need to stay protected is likely to come up.

So, for starters: what’s the difference between a surety bond and default insurance? Which do you need to stay safe?
Today, Brenda Jo Robyn, founder of Competitive Edge Insurance, is here to give us the spiel, including the difference, benefits and risks, and what you need. Let’s dive in.

What is a Surety Bond?

There are three parties involved in a surety bond.

A surety bond is a contract where one party (the surety company) guarantees the performance of certain obligations in a contract of the second party (the principal or the insured) to a third party (the obligee).

When Do You Need a Surety Bond?

Surety bonds are needed for most licenses in the state of California and other states as well. Some examples of who might need a surety bond include:

  • Contractors
  • Real estate companies and agents
  • Financial institutions
  • Janitorial

Why Do You Need a Surety Bond?

Licensed bonds are required in many states to do business and are put in place by the state to protect the consumer.

The insured, or principal, purchases this bond in an amount prescribed by the state to pay the obligee (the state at this point), in case there’s a claim against somebody’s license.

What is a Contract Bond?

A contractor performance bond is a written contract that guarantees the performance obligations under a contract. Contractor performance bonds are used frequently in the construction industry but are also sometimes used in manufacturing and supply chains as well.

When Do You Need a Contract Bond?

It depends! Contractors can be required to have a contract bond for different parts of the process when they’re bidding a job, according to Brenda Jo.

What Is a Bid Bond? When Do You Need One?

Oftentimes a bid bond is required to submit a bid for a project. Typically, these bids are in the public arena for the states or cities. For example, the Department of Forestry.

“A bid bond lets this entity know that the contractor can provide a payment and performance bond should the job be awarded to them,” says Brenda Jo.

“If the contractor is awarded the project and the contractor decides that they cannot fulfill the obligation, the bid bond helps to pay for the difference in price that it costs to get a new contractor in.”

This leads to the next kind of coupling of bonds, which is the payment bond and the performance bond.

Payment Bonds and Performance Bonds

A payment bond guarantees payment for subcontractors and payment for materials.

A performance bond covers the ability of the contractor to perform and finish the job as per contract requirements. If the contractor doesn’t perform, the contract bond kicks in and helps to pay for the completion of that performance.

Bring in the Experts

An important note: For all of these bonds, if they’re used and there’s a claim on a bond, the contractor who purchased the bond has to pay that back, says Brenda Jo.

This considered, surety companies look for really strong financials in a company, including:

  • Assets
  • Lines of credit
  • Letters of credit

Surety companies look for anything that creates a picture that says you’re worthy of having a bond put into place—because if the bond is utilized and pays out, they need to know that the purchaser of the bond can pay that money back.

At Competitive Edge Insurance, we work with insurance carriers across the country to place all types of business coverage. We are always seeking out new insurance companies to write hard-to-place and high-risk business insurance.

Don’t let cancellation dissuade you from finding comprehensive coverage. We can help! Learn more by connecting with Competitive Edge Insurance today.

Additionally, for those interested in learning more, choose between our articles on the key differences between general contractors and construction managers and the difference between payment and performance bonds.

https://compedgeins.com/wp-content/uploads/2021/10/Whats-the-Difference-Between-a-Surety-Bond-and-Default-Insurance.png 628 1200 Amanda Rogers https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Amanda Rogers2021-11-28 07:00:002021-11-08 12:57:41What’s the Difference Between a Surety Bond and a Contract Bond?

What Factors Reduce My Commercial Insurance Premiums?

October 10, 2021/in General Business Insurance, News /by kelsey

Do you know the in’s and out’s of commercial insurance? Test your premium knowledge by taking the quiz below!

Which of these will reduce my Commercial insurance premiums?

Need some more help after taking that quiz? Read more about the four types of insurance you should have for your business here!

https://compedgeins.com/wp-content/uploads/2021/09/iStock-605742718.jpg 1414 2119 kelsey https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png kelsey2021-10-10 16:49:002021-11-01 16:19:51What Factors Reduce My Commercial Insurance Premiums?

CATEGORIES

RECENT POSTS

  • large downtown building blue skyHow Does a Building Owner Know if They Are Underinsured?May 8, 2022 - 7:00 pm
  • Cyber insurance blue lock finger pointingWhy Does My Business Need Cyber Insurance?May 1, 2022 - 7:00 pm
  • OSHA Consultation ServicesOSHA’s Consultation Services: What You Need to KnowMarch 20, 2022 - 7:00 am

CONNECT WITH US

VIDEO POSTS

  • What Does Workers' Comp Look Like for Remote EmployeesWhat Does Workers’ Comp Look Like for Remote Employees?January 23, 2022 - 7:00 am
  • Workers’ Compensation Policy RenewalsWorkers’ Compensation Policy Renewals: What to ExpectJanuary 9, 2022 - 7:00 am
  • Certificates of Insurance (COIs) What You Need to KnowCertificates of Insurance (COIs): What You Need to KnowDecember 19, 2021 - 7:00 am

LET’S TALK

WANT TO KNOW HOW MUCH YOU COULD BE SAVING ON YOUR INSURANCE COSTS?

WANT TO KNOW HOW MUCH YOU COULD BE SAVING ON YOUR INSURANCE COSTS?

LET’S TALK

Connect With Us

Competitive Edge Insurance

LIC #0H31982

P: 619-259-5459
F: 619-377-0144

830 Orange Ave Suite L Coronado, CA 92118

Privacy Policy

Hours of Operation

Monday – Friday 8:00AM – 5:00PM

Saturday Closed

Sunday Closed

© Copyright 2021- Competitive Edge Insurance

site design by digitalstoryteller.io

© Copyright 2021- Competitive Edge Insurance
site design by digitalstoryteller.io

Scroll to top