Insight from the President

Last month was the Boats Afloat Show. Ron and Robin braved the rain and surprisingly there were quite a few people who attended. I guess a little rain won’t stop a true northwest’er. There were over 200 boats and a lot going on. Next show is January and that one is really big! If you haven’t been you should attend.

Last Summer’s wildfires revealed the urgency of being sure your home is insured at replacement cost. As many of you who lived through last summer’s smokathon know, fire burned a record number of land acreage. Within that acreage were a large number of homes.

Most homes today are undervalued for their replacement cost. You should anticipate at least $200-$250 per square foot. Many older homes are $300 per sq. ft. Most insurance companies have a 25% guarantee over the insured value of the home should they fall behind on valuations. There are a few companies that have a guarantee with no additional limit. We do write for companies that have a guaranteed replacement cost in their home policy, regardless of the coverage limit.

Also another major problem, as they are finding in California, is when a large number of homes burn down it will take longer than the one year “loss of use” coverage your homeowners insurance provides. In Santa Rosa, CA, only 40% of the homes were rebuilt after one year and the homeowners had run out of insurance coverage for the extra expense of renting a home.

Those of us in the Northwest have a similar problem. In today’s contractor market just finding contractor who isn’t already booked out for the next 12 months is getting difficult. There are also a few companies that have no time limit on your “loss of use” coverage. Call us if you want this type of coverage.

Smoke on the Water: 37.8 Million Kidde Fire Extinguishers Have Been Recalled

The last thing a boater wants aboard their boat is a fire. If the fire is not contained quickly, there is potential for a total loss of the boat, wreck removal to recover it, pollution exposure, third party legal liability, and injuries to loved ones. Functioning fire extinguishers must be aboard all watercraft.

Often we review comments from surveyors mentioning that the portable fire extinguisher unit is out of date. However, rarely is recall information provided to the boat owner. The more we can do to spread the word, the safer our customers will be on the water.

Please take time to review the recall information from the Consumer Product Safety Commission and Kidde to help keep safe on the water

Till my next newsletter.

Fred Kempe, President

Bristol Insurance Group