NUTS & BOLTS
IT’S NOT COVERED
PROTECTING THE MAIN STRUCTURE
become stressed. Therefore, some experts recommend removing snow when there’s as little as 12 inches. Newer, higher pitched roofs may be able to take another foot of snow, but best to play it safe. If you can’t safely clear the snow with removal tools from the ground, it’s best to call in a professional snow removal ser- vice; make sure they are properly licensed and insured. Ice Dams, which are ridges of ice build-ups on the eaves of roofs, prevent melting snow from draining off the roof. They form when snow on your roof melts and then quickly refreezes. This can cause water to seep into damaged soffits and cause wa- ter damage that starts at the top of your walls – on the inside! To avoid ice dams, keep your attic well-insulated and properly vent your roof. These steps can help encourage air movement,
POTENTIAL EXCLUSION #1 ALUMINUM WIRING/KNOB & TUBE ELECTRICAL SYSTEMS Many insurance companies will not even insure a house if it has aluminum or knob & tube wiring installed. As it ages, aluminum wiring fails more easily at connection points than copper wire. That it is a big fire hazard. If you invest in homes built from 1965 to 1972, those properties may still have it in use. If you have aluminum wiring, it will need to be remedied by either replacing the electrical system or using another “per- manent” repair method such as the COPALUM or AlumiConn methods, which are methods used to replace connections in outlets, switches, and junction boxes. NOTE: Knob and Tube was used from the 1880’s to the 1930’s. Its lack of a grounding wire and limited current capacity makes it both unsuitable for today’s modern appliances and electronics and a fire haz- ard. The only way to correct the issues associated with Knob and Tube wiring is to replace the system. One of the most common losses we see is water damage from a burst pipe. Water Damage is only covered if you have Special Form coverage. If you own vacant homes, you can avoid the worry of a burst pipe by shutting off the water at the street and drain- ing the system. If you still need running water, be sure to keep the thermostat set to at least 55 degrees; you may need to set it higher for more severe climates. Always keep in mind the weather conditions where you invest, especially if you live out-of-state. Wrap pipes that are on exterior walls, and at the very least use the internal water shut-off. Check your system often too! Mold is another exclusion to most policies. Mold can grow in as little as 24-48 hours, so if you have a water event, be sure to dry things up ASAP! If you discover mold, use a company that specializes in mold remediation. Bleach may seem to solve the mold problem on the surface, but it may fuel additional hidden growth, so be careful with home remedies. POTENTIAL EXCLUSION #2 WATER DAMAGE/MOLD, MILDEW, FUNGUS
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BreAnn Stephenson is the assistant vice president of Affinity Loss Prevention Services. Helping you stop “bad stuff” from happening at your property is her mission. She may be reached at www. affinitylps.com, where you can also find discount codes for StoveTop FireStop’s cooktop line and other protective products.
A single burglary on a vacant or renovation property can cost over $8,000. That’s over 4 times the national average per break-in! Real estate investors can experience higher losses due to stolen appliances, HVAC Equipment, wiring, plumbing and more. 56% OF THIEVES BREAK-IN THROUGH A DOOR. WE'RE IN YOUR CORNER.
Clearing Up Insurance Exclusion Confusion, Part 1 4 ITEMS THAT MAY NOT BE COVERED & HOW TO PROTECT YOURSELF.
by BreAnn Stephenson
Notice some unusual punctuation or capitalization in this insurance article? These anomalies are not typos, but deliberate. When covering insurance- related topics, we capitalize intentionally to indicate types of coverage, exclusions, or policy formats. For example, Water Damage, when capitalized, refers to the coverage in your policy. Without the capital letters, you are simply discussing damage done by water, which may or may not be covered.
This is the first part of a three-part article series titled “It’s Not Covered” by Affinity Loss Prevention Services (ALPS) assistant vice president, BreAnn Stephenson.
Prevent costly break-ins. Reinforce your doors. Layer your Security with products from:
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ou may think that you’ve got your insurance basics down if you recognize terms like “replacement cost,” “actual cash value,” “co-insurance,” and “depreciation.” If you know your deductible and have a general idea of your cover- ages, that’s a good start, but have you ever sat down to read further than the introduction to the novel, so to speak? It’s definitely not a short or a light read, but the remainder of your policy’s contents could come back to haunt you if you aren’t familiar with the specifics of what is and isn’t covered. Insurance is complex, and it’s important to understand how each aspect of your policy applies to your property. Today, we’ll cover four things that most real estate investors think are
POTENTIAL EXCLUSION #3 ROOF DAMAGE FROM WEIGHT OF SNOW, ICE & SLEET
Visit AffinityLPS.com for more tips and discounts on products to help you protect your assets.
Another coverage only offered in the Broad and Special Forms is the Weight of Snow, Ice & Sleet. Depending upon the density of the snow, literally tons of extra weight can be added to your roof. If it is not cleared in a timely fashion, that snow or ice buildup can cause a collapse. Most residential roofs can only support about 20 pounds per square foot of snow before they
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covered under their insurance policy that are usually not, and then we’ll deal with how savvy investors protect themselves and their investments from insurance exclusion confusion.
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