Category: Personal Insurance

Just One Last Chance

Then, once they discover the joy of sitting, reading, and pondering life, you suffer through the dreaded, ” I’ve got to go and she’s not giving up the seat!” times. And the lady at the supermarket laughs and says, “How many rolls of toilet paper this week, sweetie?”

Okay, am I nuts or what? You go through all of this for just one last chance?

They emerge from their mother, a bundle of joy who will have you lugging home bundles of Pampers, wipes, and cases of formula, and waking up at 3 am (or faking you’re asleep), for a few years. Not to mention keeping the national economy going by keeping your wallet empty.

And you tell yourself, one day, oh one day, I won’t have to do this anymore.

Then comes the dreaded toilet training, with the cries of “No, no! You just want to drown me! Mommy! Mommy, You’d better get in here quick because Daddy’s wants me to drown me in the toilet bowl!!” Then, once they discover the joy of sitting, reading, and pondering life, you suffer through the dreaded, ” I’ve got to go and she’s not giving up the seat!” times. And the lady at the supermarket laughs and says, “How many rolls of toilet paper this week, sweetie?”

And you tell yourself, “One day I shall regain the throne!”

Then you learn you have to lock the bathroom door when taking a shower when she comes in and rips the curtain back while you’re showering, just to see what you’re doing in there.

My downstairs neighbor still laughs about how I ” … screamed like a girl,” that night.

I mean, I thought she was asleep. She was supposed to be asleep.

That’s okay, you think, for one day I won’t have to lock the bathroom door, or wear a suit of armor while I’m relaxing at home.

Then comes the first day of “Big School”, a.k.a. kindergarten, and then Middle School. Before you know it, it’s on to high school, and the AP’s, PSAT’s and SAT’s and ACT’s and college applications. Then, one day in late March, they find out who accepted them (thankfully, the one she wanted the most said yes). And on a glorious day in June, you sit back at a long-anticipated high school commencement, hearing her name and watching her cross the dais as she collects her diploma.

And you say to yourself, “In just three months I will be dropping her off to college, and I get the apartment, the throne, the TV, everything, back! Ha ha! Mine, mine, mine!”

The day arrives when you take her to college. You tote luggage up three (3) flights of stairs (no elevator). You meet the roommates she’ll be seeing more than you for the next four (4) years, and attend meeting after meeting until, some Dean says, “Okay parents, you have 15 minutes to say goodbye to your kids. The rest of this meeting is just for them. Go home now.”

And one guy in the audience says, “I’m not going anywhere without my child,” and you realize everyone is looking at you.

I guess I did say it.

Dean was lucky I believe in a God that forgives.

So, you leave the campus (accompanied by the campus police, just because you tried to kidnap your own child and bring her back home with you), doing 90 on I-95, hoping you’ll be pulled over, so you can tell the State Trooper we have to go back to the college, because they kidnapped my child.

Yes, itt actually happened. I will never the forget the look on the campus police officer as he said, “Release the Yalie, sir. Time for you to go home.”

He’d better be glad I believe in a forgiving God.

But it didn’t work. You make great time getting home though. Back to having the throne room to yourself. Not having to lock the bathroom door. Watching whatever you want to watch. Walk around the apartment any way you want to.

You shed a tear, wishing you had just one last chance to change a diaper, or stumble out of bed for the 3 am feeding and review of world events.

Just one.

And you count the days until she comes home for Thanksgiving Break, because it’s no fun having it all to yourself.

“Daddy, God Is Crying”

We drove home, and the next morning when I went to call the client to tell him I would be late, I discovered I’d failed, in my rush to pack up the office and go home, to put the file in my bag.

9/11

Thirteen years ago today, I had an appointment to write a new client a Renters Insurance policy. His office was located in one of the Towers. The appointment was for 8:30 am.

9/10

I never made it to the appointment, because the night before, Ashley and Debbie (may she forever rest in peace), were involved in a collision at the Empire Boulevard McDonald’s at the drive through. The car in front of them, having left the drive-though window, suddenly reversed and ran into them. Why? Because the unlicensed driver, driving her aunt’s uninsured car without the aunt’s permission, was angry that her order was wrong.

They were both okay, but later that evening as I stood in front of the Met Supermarket taking pictures with a camera, a hot rain began to fall. It was as though a monsoon swept through the area.

“Daddy, God is crying”

Soaked to the skin, and angry about the accident, I got in the car and prepared to drive, when from her car seat, seven-year-old Ashley said, “Daddy, God is crying.”

My immediate response, “Yeah well right now, I’m crying too. I’m going to be late for the appointment, I have to take the car to the shop … wait, what did you say?”

“Daddy, God is crying.”

I looked at her mother, whose eyes were just as wide as mine.

“Why baby?”

“I don’t know why. I just know God is crying. I guess he’s really sad.”

We drove home, and the next morning when I went to call the client to tell him I would be late, I discovered I’d failed, in my rush to pack up the office and go home, to put the file in my bag.

By the time, I dropped them off at work and school, and left the car with Ernie, our mechanic, it was already 8:00 am, so I knew I was probably going to lose the case. I decided to go to the monthly PA President’s meeting at the District 22 office.

When I arrived at the District Office, I understood why God cried.

And the client I was supposed to meet? He woke up late, and came out of the train station, only to join thousands running from the site. As he ran, looking back to the floors where his company and friends were burning, he said to himself, “I hope that insurance guy made it out okay.”

My assignment wasn’t up.

11/11/02

I couldn’t understand why until one year and one month later, when Debbie died, leaving me a single parent to care for our child. Ashley and I cried.

So I still thank God for sending us the accident the night Ashley said, “Daddy, God is crying.”

Take a moment today and tell someone you love them, you cherish them, you value them, and they bring joy to your life.

You may never get another chance for a last kiss and hug.

 

Baseball’s Hold Harmless

Baseball, Hot Dogs, Apple Pie, and Hold Harmless Agreements

There is a story coming out of Lakewood, NJ, about 10-year-old Alexis Pavlinec who, while attending a BlueClaws minor league baseball game with her parents on Sunday, was struck in the face by a foul ball. The young lady suffered a fractured skull, and may lose her sense of smell.

She wasn’t even the stands at the time. She’d just finished eating a slice of pizza in the food court.

Did Someone Say Lawsuit?

Now, I know many of you are thinking she and her family are going to win a huge lawsuit from the team. Sorry to say it, but a winning lawsuit probably won’t  happen in your lifetime.

Or your grandchildren’s.

I want to you look at the back of your ticket the next time you attend a baseball game, go to a movie, or attend the opera.  See those tiny squiggles on the back of your ticket, so tiny even people blessed with 20/20 vision have to squint. Well, that is the proverbial fine print. And if you look really hard, you will usually see a section named “Warning.”

A Day At MCU Park

I and several other business associates had the pleasure of attending the short-season minor baseball game between the Brooklyn Cyclones and the Tri-City Valley Cats at Brooklyn’s MCU Park, located in Coney Island, Brooklyn.

We were guests of Anne Marie Stanislaus, Broker and Owner of Reserved Realty, L.L.C., on the Party Deck at a BNI Networking Party. Those of you who are regular readers of BrooklynCovered.com know Anne Marie is always good for a tough insurance question, and a pizza on me at Cataldo’s Restaurant. This time, however, the food was on her and her fellow BNI members.

While we were talking, (and eating), the Cyclone batter at the plate cracked a foul ball all the way to the suite level, where we were eating and cheering.

Sensing the opportunity for another insurance lesson, I said, “Anne Marie, you’d better watch out for those foul balls.”

“Why?” she asked. “You know I want to catch one.”

“Well, don’t miss the catch. If you do, and a ball smacks you upside the head, you can’t sue the Cyclones, the Mets, the City of New York, nobody.”

“You’re lying to my face, Greaves.”

Let’s Go To The Video … I Mean Ticket

So I took out my ticket, and squinting like Mr. Magoo, began to read;

“WARNING – The ticketholder assumes all risk, danger and injury incidental to the game of baseball or other event and all warm-ups, practices, competitions, entertainment and promotions associated therewith  at all locations in and around the ballpark and surrounding areas and parking lots, whether occurring prior to, during or subsequent to the playing of the game or other event, including (but not limited to ) the danger of thrown bats, fragments thereof, and thrown , propelled or batted balls and other objects, and agrees that no persons or entities (including but not limited to Sterling Mets, L. P. , Sterling Mets Front Office, L.L.C., Sterling Mets Operations, L.L.C., Queens Ballpark Company, L.L.C., Sterling Facility Services, L.L.C., CF Hospitality, L.L.C., Brooklyn Baseball Company, L.L.C., the City of New York,, NYCIDA, St. Lucie County, and their respective agents, owners, officers, employees, affiliates and contractor(s) are liable for any injuries, death, or loss of property resulting from such causes, and releases and hold harmless all such persons and entities. “

“And you’re saying all that to say, what?”

“Foul ball screaming into the stands at 200 mph connects with your head and you die, they have no liability. Player loses control of their bat and it flies into the stands and breaks your face, they have no liability. A ball leaves the ballpark and puts a dent in or shatters the windshield of your new car in the parking lot, they have no liability. You get mugged in the parking lot, or your car is broken into or stolen from the parking lot, well, you have no coverage. Since you activated this ticket by presenting it for admission to today’s game, you’ve agreed to hold all of those organizations harmless for just about anything that could happen to you while you’re enjoying a day at the ballpark. And you weren’t even read your rights.”

What Are The Odds?

“So a little girl  could suffer the loss of her sense of smell and possible disfiguration for the rest of her life? And the family has no legal leg to stand on?”

“Yep. Let’s just be thankful she didn’t die from the impact. According to Major League Baseball, there are 35 people are injured by foul balls for every one million visitors who attend the games. Not bad odds, but if it’s you or someone you love who’s hit, the results could be devastating.”

“That’s not right, Greaves.”

“Yes, and I’m 5′ 10″ instead of 6′ 2. Life is just unfair that way.”

So, the next time you attend an event, take a moment to take a hard look at the back of your ticket, and see the rights you’ve given up just to be there. And watch out for those foul balls.

I Am Eustace L. Greaves, Jr.

Please indulge me this opportunity to publish some of the poetry / music created in my soul. I will revisit this space / place / womb often, making a slight change here, adding a sentence there. The SEO results will be lousy, but I’m just happy to possess the canvas upon which to place my creation.

I promise you insurance, insurance, and more insurance, in the blog posts to come.

Thank you,

Eustace L. Greaves Jr.
August 28, 2014
2:33 pm

I Am Eustace L. Greaves Jr.

I am not the man a woman settles for.

I am the man a woman who, knowing herself, prays will
choose,
love,
provide for,
cherish,
desire,
want,
worship with his whole heart,
respect,
pray for and with,
grow strong in the Lord with,
and give God thanks for,
her.

I have not  seen my best days I haven’t created them yet.

My greatest accomplishments are waitin, needing me to realize, and fully understand, God is in me, and because this is truth, nothing is impossible for me.

I am responsible for everything in my life, the good, the bad, the exuberant, the sad. Every thought, every deed is my responsibility.

I no longer give credence to the old excuse, “Be patient, God’s not finished with me yet.”

It is nothing more than a lie created by those who accept failure in their life by failing to even try. They’ve made it their home address.

I will waste no time visiting them where they live.

I know God equipped me, from the moment  I was born , with everything I’d ever need in life to become who I am meant to be, to achieve the goals I pray for, and leaving my knees, work for.

I am the man a woman will regret letting go, wishes she hadn’t let out of the door, despite whatever fears she may have.

I am not the man a woman settles for.

I am the man with whom she prays she’ll settle down. Sleep besides, go the the movies, the plays, midnight cruises with, or just sitting at home next to each on the couch with.

I am the man she prays she can love, and will love her the rest of her days.

New Changes to Coastal Homeowners Insurance

Now the insurance situation, is more dire not just for new homebuyers but for existing homeowners too. In between bites, I reminded Anne-Marie about how Hurricane Irene in 2011, and the big momma, Hurricane Sandy in 2012, gave insurance companies greater insight into number of homeowners risks they insured in certain areas. And it is these new insights which have given rise to newer realities in homeowners insurance.

It’s amazing. Whenever I read or make a presentation about the new changes happening in coastal  homeowners insurance here in New York State’s Downstate Region, (Brooklyn and the four boroughs, Nassau, Suffolk, Westchester counties), I usually run into one of Brooklyn’s leading real estate brokers the very next day. And they wrangle a free lunch out of me.

Talking Coastal Homeowners Insurance with Anne-Marie Stanislaus of Reserved Realty LLC

Late last month, I had the pleasure of enjoying another terrific pizza with Anne-Marie Stanislaus, one of New York City’s leading independent Real Estate Brokers, and the Owner and Principal of Reserved Realty LLC.  We met at the number-one Italian restaurant in Prospect Heights, the world-famous Cataldo’s Italian Restaurant and Pizzeria, at 554 Vanderbilt Avenue, between Dean and Bergen Streets. The first question she asked was “Eustace, I know we talked about this last year, but what’s going on with the coastal homeowners insurance business in Brooklyn? Companies are not just refusing to write certain types of houses. I’m getting calls from clients complaining their insurance companies, after decades without claims or late payments, are cancelling policies in certain areas like they had the plague! And not just in Brooklyn, mind you, but throughout the Downstate region.”

We’d had a similar discussion back in November of 2012, right after Hurricane Sandy, which I detailed in an earlier post, “Coastal Homeowners Insurance, Part 2.9.” Back then, when life seemed simpler,  we were more concerned about changed real estate practices as it pertained to new sales.

The Latest Twist In Coastal Homeowners Insurance

The insurance situation is becoming more difficult not just for new home buyers but for existing homeowners too. In between bites, I reminded Anne-Marie about how Hurricane Irene in 2011, and the big momma, Hurricane Sandy in 2012, gave insurance companies a major case of the willies and greater insight into the number of coastal homeowners insurance risks they insured in certain now-hazardous areas. It is these new insights which created newer realities in coastal homeowners insurance.

Take It Back A Mile

First, when certain companies decided they no longer wanted to insure risks within one (1) mile of a tidal coastline, they just sent the affected policyowners a letter which basically said, “Thank you for being our homeowners client for the past  15, 20, or even 30 years. We also appreciate your not presenting us with any claims during your years with our company. We changed our underwriting guidelines, and since you no longer fit or match them, you’re no longer one of our homeowners insurance clients effective (You fill in the date.).

“Thank you, and don’t worry, you can still keep your auto, life, and whatever else you have with us. We just don’t want the house anymore.”

Now, just for the record, while most insurance companies pulled their coastal boundary line to a distance of at least one mile from the tidal coastline for dwellings, there are those companies who will continue to honor their commitment to their clients, so long as they don’t lapse their policies, submit some really dubious claims, or decide they can make some side money by turning their legal two-family home into an illegal three, four, or even more family house.

Many companies, however, are simply dropping their clients, and, just like that, the homeowner must seek and secure new coverage for their home.

There’s a new twist in this tale of woe, however: Now some insurance companies are cancelling policies if they are within one mile of any body of water.

For example, I’ve recently written a new policy for a homeowner who lives more than one and one-half miles from the tidal coastline, but within one-half mile of the tip of Brooklyn’s Paerdegat Basin.

A property on the western side of Flatlands Avenue. One which suffered absolutely no wind or flood damage during Hurricane Sandy.

He recently received a cancellation letter letting him because of changes to what the company felt was a coastal risk, his policy was being non-renewed. A policy he’d had for 28 years. Claim-free.

And now, I’m going to write his neighbor a policy, since the same company just sent him his non-renewal letter.

So Anne-Marie looked at me like I had two heads. “So wait a minute,” she asked. “Now we’ve got to know how far a property is from any body of water before we try to market it? When will this madness end?”

“Who knows? Probably when enough disaster-free and thus heavy-claim time passes. ”

She looked at me and said, “Well, that’s not so bad then.”

“Sure”, I said, “Even though when FEMA finishes remapping this region, probably either in late 2014 or by mid-2015,  mandatory Flood Insurance policies with premiums in excess of $2,000 and $3,000 will create new problems for homeowners now remapped into AE and VE zones…”

“Enough!” she yelled. “For that Greaves, I want more pizza! And no more insurance talk!”

And the second pie was even tastier than the first.

You can reach the beleaguered  Anne-Marie Stanislaus at 917-887-7468. She and her team at Reserved Realty will do a fantastic job of  either helping you find your dream home, or marketing your current home and apartment rentals. You can always reach Eustace Greaves Jr., LUTCF  by telephone at 718-783-2722, or send him an email to [email protected].

Disability Insurance and Mack Trucks

“Now, there are two types of company-sponsored disability plans, short-term and long term. As the name implies, short-term disability insurance usually replaces all or a portion of your income for a short period of time, usually, six months. Long-term disability, if the company provides such a benefit, will usually kick in once the short-term plan ends.”

The Mack Truck that hits you doesn’t always kill you…

I recently met with a client to review his financial portfolio. When the subject of disability insurance came up he scoffed at any need for further review as he,  “…Got a great plan at work. I’m not sure of all the details, I just heard it’s a great plan.” Since he brought his company benefit booklet with him,  we took a few minutes to see just how terrific it really was.

How many types of company-sponsored disability insurance plans are there?

There are two types of company-sponsored disability plans, short-term and long-term. As the name implies, short-term disability insurance usually replaces all or a portion of your income for a short period, usually, six months. Long-term disability, if the company provides such a benefit, will usually kick in once the short-term plan ends.

Are there any benefit limitations with these company-sponsored disability insurance plans?

One of the major problems with these plans are the limitations placed on your monthly benefit once you exceed a certain monthly income. A common benefit limit is 60% of income, up to $2,500.00 each month. This means if you earn an annual income of $50,000, for example, your monthly income is $4,166.67. When we calculate 60% of $4,166.67, that equals exactly $2,500.00. Which is great if you earn $50,000.00 annually. The problem begins when your annual income exceeds $50,000. If, for example, you earn $100,000.00, your greatest benefit will stay at $2,500. Meaning you are digging a deep financial hole with every company-sponsored disability income check you receive.
My clients’ income hovers around $75,000 each year.
Also, keep in mind these are company-sponsored plans. Unless they are part of a collective bargaining or other contractual agreement, there are absolutely no guarantees the company will provide these plans forever. Due to current economic conditions, several companies have changed or even discontinued company-sponsored health, disability and even life insurance programs to save money and keep the company afloat. Even in those cases where the plans were not discontinued, employees are expected to pick up more of the cost, or accept changes such as higher deductibles, and in some cases, new providers. Several well-known firms took the step of freezing management pensions and offering those affected 401(k) plans.In the case of my client, we agreed to revisit the subject as soon as he and his bride took time to revisit their budget.You see, his company-sponsored plan provided only short-term disability insurance coverage, without a bit of long-term coverage.

And the Mack Truck doesn’t always kill you.

Make it an outstanding day.

Eustace

Eustace Greaves  Jr., LUTCF is the Owner and Principal of Greaves Financial Services and The Bridge Insurance Agency  in Brooklyn, NY. You can reach him by telephone at 718-783-2722, or by email at [email protected] .

Renters Are Property Owners Too | E. Greaves Jr.

“Suddenly, reality sets in and they realize they could actually need to insure their belongings for at least $40,000 to $50,000. And what would it cost them for this coverage? In most cases, especially should you maintain a great credit score, usually no more than one (1) or (2) dollars a day.”

While The Renter Slept…

A Monday morning about three (3) years ago came with a huge surprise.

A slightly frantic business associate called first thing that morning. During the weekend, while taking a middle-of-the-day nap in her home, she awoke to find herself face-to-face with a burglar. Thankfully he didn’t harm her physically, but he stole her laptop. It took a while before she felt comfortable and safe in her own home again.

The first and most painful question she asked me was, “Eustace, Does my landlord’s insurance cover this loss?” Sadly I had to tell her, “No, your landlord’s insurance literally stops at your door.  If you don’t own a Renters Insurance policy, you have no coverage.”

Then she asked if this was the coverage I tried to convince her to purchase when she first moved into her apartment. Again, sadly, I told her yes. But the upcoming vacation was more important than paying for Renters Insurance.

To her credit, she didn’t say, “That’s not fair.” She simply accepted she lacked coverage. We spoke for a while and then ended the call.

I Don’t Like Those Calls

Losses to the property of renters many times each day and, based on current economic conditions, will continue to increase. The losses are caused by burglaries, robberies, fires, building collapses and lawsuits. All renters must understand this fact: Your landlord’s policy protects them should they lose their property to fire theft and negligence. Why don’t you do the same for your property and way of life? If you don’t own Renters Insurance, you stand to suffer disruptions to your daily life without the benefit of receiving the money you’ll need to rebuild your life.

Usually, when I speak to clients about their Renters Insurance needs, they think they only need about $10,000.00 of coverage. So I play a game of I created called “How much Renters Insurance Will I Really Need To Replace Everything I Own?” with them.

I take out a piece of paper, and ask them, for example:

  • How much did the fur coat cost?
  • What about the new Nikon or Canon camera with all the gadgets?
  • What about your laptop, big screen TV, and home theatre and stereo systems?
  • What kind of clothes do you have in your wardrobe and what is the value of all of your clothing, down to the last sock?
  • Do you sleep on bed sheets? If so, what would you need to replace every sheet, pillowcase, bath towel, face cloth?
  • What about the china, silverware, flatware, and regular dishes.
  • How much did you spend on the furniture in your home?
  • How much did you spend on your laptop? (My friend lost a top-of-the-line MacIntosh.)
  • How much jewelry do you own?

Special Questions For The Ladies And The Men

Ladies must answer questions about the value of their shoes and handbags. And don’t worry, men have their own special questions about the value of all the replica football, basketball and baseball jerseys in the closet, in their dresser drawers, on the chair, and under the bed. And their baseball caps. And the expensive sneakers. And no, I don’t believe sneakers should be addressed with proper names until they can have their lifts replaced like Loubitinis (Yes, I know that isn’t how you spell it!).

Guess what? I didn’t even mention your possible need for off-premises theft. You know, for when someone snatches the valuable electronics out of your hands on the street, or when you “just take a minute” to get another latte at the coffee shop and return to your table to find your laptop, phone and wallet stolen.

The Game Is Really Easy To Master

Suddenly, reality sets in and they realize they could actually need to insure their belongings for at least $40,000 to $50,000. And what would it cost them for this coverage?  In most cases, especially should you maintain a great credit score, usually no more than one (1) or (2) dollars a day.

Just $365.00 to $730.00 each year.  And some people, like college students on a budget, even less. Think the cost is too high? Well, how much do you spend everyday on coffee you could make at home? Could you eat out at least one or two less meals each week?

Some Tips On Securing Your Home and Your Possessions:

  • Do a complete, ‘Down to the last sock,’ inventory of all of your personal belongings. If you don’t have Renters Insurance and try to claim your losses on your income tax return, the IRS will need you to provide proof of ownership.
  • Go to your local police precinct and see what anti-crime products are available to you. The best part is, they tend to be free. You just need to simply ask.
  • Make sure that all of your electronic devices, be they I-Touches, smart phones, or laptops, have strong passwords.
  • Buy “Lojack for Laptops” and install it on your laptop. It only costs about $29.99.
  • Purchase and use a security cabling system for your desk computer at home and laptop computers, whether at home, on campus, or at the local library.
  • In case of loss to your computers, keep up-to-date backups in a secure location.
  • Secure your home against illegal entry using Fire Department approved window gates.
  • If you can, install a fire and burglar alarm system.
  • Keep windows and doors locked when you are away, and secured when you are at home.
  • It’s nice to be neighborly, but don’t feel obligated to invite the neighbors in for a party. Some of them may want to continue the party while you are at work.
  • On occasion, vary the times you leave for work and come home.
  • Don’t put your vacation plans on Facebook or any of the other social media. Thieves love to troll these sites to see just who is dumb enough to tell them when they can come and steal.
  • Finally, buy Renters Insurance. Lots of it.

For guidance in setting up a personal home inventory, feel free send me an email at [email protected],  or send a stamped, self-addressed envelope with 86¢ postage addressed to for a copy of Travelers Personal Inventory brochure. You can even stop by the office and ask for a copy of the brochure.

While it was too late for my friend to benefit from owning this coverage, your luck may have held out until now. Call me at 718-783-2722 and I’ll be glad to give you a Renters Insurance quote designed to fit your needs, and your budget.

Eustace L. Greaves Jr. is a business owner providing his clients with insurance and income tax strategies and solutions. To reach Eustace by telephone, just dial 718-783-2722. Or, you can send an email to him at [email protected].

Builders Risk Insurance | E Greaves Jr.

I can’t emphasize enough the need to get the contractor’s firm estimate of the amount of time it will actually take to secure the necessary permits, materials, workers, and perform the work. Builders Risk Insurance policies are issued for terms of three (3), six (6), and nine (9) months, or one (1) year.

Builders Risk Insurance seems, like Flood Insurance before Hurricane Sandy, to be an afterthought.

My good friend, Jackson Robert, a Loan Officer with Prospect Lending, Inc., and a fellow member of the Bedford-Stuyvesant Real Estate Board, sends out weekly emails about trends and happenings in the mortgage industry.

This week’s email was an infographic about the 45-day Renovation Loan process. I was shocked to see no mention made of well, one of my favorite topics, insurance, and in this case, Builders Risk insurance.

So, I sat down and wrote this letter to Jackson. When I was finished, I realized I had the makings of a good blog. So here it is!

Greetings Jackson:

First, thank you for the great emails you send about mortgage lending. They are extremely informative, and when I share them with my clients, you make me look like a genius!

Regarding your latest entry about the 45-day renovation loan process I just have one question – What about the Builders Risk insurance?

Now, most people think they’ll just call a broker and get a quick quote over the phone.  Believe me, it’s not that easy.

A normal homeowner’s policy will not provide protection during any significant renovation. Many so-called “Insurance Experts” will convince your renovation loan clients that a regular homeowner’s policy is all they need. Once the company inspects the property, and believe me, nowadays they inspect every risk, the application will be rejected, and coverage cancelled. This can often make it more difficult to secure proper coverage because few insurance companies like to underwrite a risk once work has commenced.

The homeowner needs to secure a Builder’s Risk policy. Most insurance companies will require the following information in order to generate a Builder’s Risk insurance quote:

  1. A complete Scope of Work from the contractor who will be performing the work. This provides a room-by-room breakdown of the work to be performed, the cost for each job, and the time needed to complete the work, including required inspections.
  2. Certificates of Insurance for the contractor’s Worker’s Compensation, State Disability, and Commercial Liability insurance policies. The homeowner should be listed as an additional insured on these certificates. Your lending institution may also want to be listed on theses certificates. I’d suggest checking with your legal department about that.
  3. Copies of the contractor’s license. In New York City, this license is usually issued by the Department of Consumer Affairs. Caveat: The New York City license does not give a contractor the right to perform similar work in any other county. They must be licensed by each county or city.
  4. A copy of their listing on the New York City Department of Buildings website.
  5. The contractor’s resume or Statement of Ability regarding their past experience with the type of renovation you’re providing lending for and length of time in the business.
  6. Verifiable references from past clients the contractor has worked for in the last six (6) to 18 months.
  7. You also want to get the same information for any subcontractors involved in the renovation.I can’t emphasize enough the need to get the contractor’s firm estimate of the amount of time it will actually take to secure the necessary permits, materials, workers, and perform the work. Builders Risk policies are issued for terms of three (3), six (6), and nine (9) months, or one (1) year. The premium for these policies must be paid in full once bound and are fully earned.  So, if the client purchases a policy with nine (9) month duration, and the work is completed in seven (7) months, there is no pro-or-short rated return of premium.  One the other hand, if the work was supposed to take six (6) months and will, for various reasons, take longer, the homeowner will be forced to purchase another Builders Risk policy. Here’s a tip: If the contractor says the work will take six (6) months, purchase a policy lasting nine (9) months or a year. One good local disaster can set work and inspections back at least three (3) months.

For the insurance broker:

  1. Provide the insurance broker with a copy of any existing appraisals so they can prepare a before and after replacement cost estimator for the insurance company.
  2. Give the insurance broker at least five (5) business days to do their calculations, write-up and submissions.
  4. Inform the insurance broker whether this policy is being put out for bid so they can decide whether they want to offer one. These policies require a great deal of up-front work, on spec. Based on the type of risk, and the client’s relationship with other brokers or agents, an insurance broker may decide to not offer a quote.

A Final Thought

Don’t forget to discuss the need for purchasing flood insurance for these risks. Just imagine the catastrophe when, just a week before the job is done, the water main in the street outside the home breaks, or a severed rainstorm or hurricane and sends thousands of gallons of water rushing into your clients almost-completed home.

Jackson, I hope this information will improve your renovation lending success. Thanks again for the great emails.

You can contact Jackson Robert, Loan Officer with Prospect Lending, Inc. at 917-941-5018. You can also send him an email to [email protected]. 

BrooklynCovered.com is the online alias of none other than Eustace L. Greaves, Jr., LUTCF, a Brooklyn-based insurance agent and broker with more than 30 years of meeting his clients insurance needs. Send your insurance questions to Eustace at [email protected] or [email protected] .

Covered For Plane Crashes? |E. L. Greaves Jr.

When I realized I was talking to Mr. and Mrs. Worrywarts, I asked them if a plane crashed into their home. They confirmed their lovely home was still in one piece, and I calmed them down. When I asked them why in the world they were worrying now, after living in their home for several years, about plane crashes, they told me about the tragic accident in Indiana.

Is Your Home Covered For Plane Crashes?

A private plane crashed into a residential neighborhood in South Bend, Indiana on Sunday, March 17, 2013. The plane which appeared to suffer mechanical malfunction clipped two (2) houses before crashing into a third home.  At last report no deaths were attributed to this disaster.

I learned of this disaster yesterday evening when a client, whose home lies in one of the flight and landing paths for JFK airport called.

Meet The Worrywarts

“Greaves! Am I covered if a plane crashes into my house? Am I covered, or what?”

My immediate response was, “Huh? What happened? Who calling, please?”

So he, calling to his wife yells out, “Honey, Greaves say we don’t have coverage if a plane crash into the house.”

“What?! Oh Lord, what we going to do then?”

When I realized I was talking to Mr. and Mrs. Worrywarts, I asked them if a plane crashed into their home. They confirmed their lovely home was still in one piece, and I calmed them down. When I asked them why in the world they were worrying now, after living in their home for several years, about plane crashes, they told me about the tragic accident in Indiana.

You should have heard their joint sighs of relief when I told them “Yes, your home is covered,” should an airplane crash into their home. Of course they asked me if I was sure about that. So I asked them to take out their homeowners insurance policy and turn, in this case, to pages five (5) and six (6) for a list of Specific Perils covered by their Homeowners 3 -Special Form policy. And yes, they keep it handy in their waterproof, fireproof, everything proof portable safety box.

Covered Peril number five (5) of fourteen (14) concerns “Aircraft, including self-propelled missiles and spacecraft.” So if little Rupert next door, who fancies himself a future rocket scientist, fires a model rocket through your window, and the subsequent fire burns your home, rental, coop or condo to the ground, you’re covered.

They were happy to hear that. Turns out they do have a little rocket scientist living next door. Kid’s name is Philbert.

Now I’m the one who’s worried.

 

Blizzard Nemo Causes Accident on Flatbush Avenue | BrooklynCovered

Talk about your empty roads. On Vanderbilt Avenue, there was only me and an Evelyn Car Service car. I experienced the joy of solitude circling the Grand Army Plaza rotary. I was shocked to see no evidence of any accidents.

My joy was short-lived as I drove down the hill on Flatbush Avenue. There, about 75 yards away from the entrance to the Prospect Park Wildlife Center, were the remains of an accident between a parked tractor-trailer and a sedan.

Blizzard Nemo Takes It’s Pound of Steel

When I left my office tonight, (I was waiting for an income tax client to show up for her appointment. She called me at 9:00 pm to tell me she went straight home to get out of Blizzard Nemo, and tell me she wasn’t coming. This happens.) I thought about the various winter driving tips I’d shared with my January Point and Insurance Reduction Workshop class. Especially my advice that there was no shame in crawling.

Use first gear in bad weather
See the number one at the bottom of the tree? During a snowstorm, heavy rain, or the end of the world, put your car in first and leave it there.

 

“During a blizzard, suppress your ego and put your car in first gear and crawl. Better still, park the car and  stay in the house. There is absolutely no reason to have your car in drive when there is snow or ice on the road.

“And don’t forget to remove all the snow and ice from your vehicle. For your safety, you’ll have relatively clear fields of vision. For other drivers’ safety, they won’t have to worry about snow and ice flying from your vehicle and smacking their windshields.”

So, I cleaned off the car, put it in first gear, and started to crawl home.

Talk about your empty roads. On Vanderbilt Avenue, there was only me and an Evelyn Car Service car. I experienced the joy of solitude circling the Grand Army Plaza rotary. I was shocked to see no evidence of any accidents.

Enter The Reckless Driver

My joy was short-lived as I drove down the hill on Flatbush Avenue. There, about 75 yards away from the entrance to the Prospect Park Wildlife Center, were the remains of an accident between a parked tractor-trailer and a sedan.

Impact with a tractor-trailer
Totaled car after impact with a parked tractor-trailer

The tractor-trailer won.

The impact was so great the air bags deployed. And any ambulance driver will tell you that once the airbags deploy, someone is usually on their way to the emergency room.

What caused the accident? Looking at the markings in the snow I could only surmise the driver lost control when they crested the hill before the long downslope, or  tried to avoid another driver’s reckless driving.

 

Damaged bumper
Damaged bumper

Whatever the reason, you have to hope the driver of the vehicle and any passengers survived this accident.

And why do I think the accident could have involved another driver? While I was crawling my way along Ocean Avenue, a stupid idiot in an SUV suddenly got right up on my tail and started to flash their high beams.

I kept crawling.

They kept flashing. And started to honk, too.

Finally, I relented in my quest to keep this fool alive, and pulled over so some deity could take their wheel. Big Dummy flashed past, made the right on Newkirk, and kept on trucking.

I did get a look at their license plate. Florida, of all places.

I guess they took umbrage with my recent Facebook timeline.

Dear readers, in this and every dangerous weather condition, alway remember it’s okay to crawl home.

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