OUTLAWED: Six Home Insurance Deal Killers Florida Homeowners Should Be Aware Of

As affordable Home Insurance in Florida gets more difficult to attain, it is extremely important for home owners and future home owners to be fully informed before purchasing a new home or shopping for new home owners insurance.

If one of these SIX conditions exist in the home, "BUYER BEWARE" as insurance may be difficult and potentially impossible to bind.

1) Fuse Panel

A properly installed FUSE PANEL by itself is typically not a safety issue, although most insurance companies have banned this type of electrical service for all new policies written. There are a number of reasons, some of these are noted below.

The main safety issues from fuses come into play when a homeowner replaces a blown fuse with too large of a fuse (ie a blown 15 amp fuse replaced with a 30 amp fuse which is readily available on the utility room shelf). The circuit is designed to "blow" if a load greater than 15 amps passes through. Now the "trigger" is set at 30 amps. An extra 15 amps just might be enough for the wiring or other components to heat up enough to cause a fire or other serious injury or damage.

A typical fuse panel can be replaced with a circuit breaker panel for $ 750 to $ 2,000 depending on any other upgrades that may have to be made in the replacement. Always get a minimum of THREE QUOTES from reputable Contractors before authorizing any work done.

2) Knob and Tube Wiring

Knob and Tube Wiring (K & T) was used from the 1880's into the 1930's. This early method of electrical wiring did a great job for many years and is still used today in some select governmental and industrial applications. However this old rubber or cloth covered wiring that strings along on porcelain knobs has outlived its useful life and is no longer insurable or even legal in residential applications per the National Electrical Code.

An average size home re-wire can run from $ 8,000 to $ 20,000 depending on the unique layout and access to electrical components. Always get a minimum of THREE QUOTES from reputable Contractors before authorizing any work done.

3) Aluminum Branch Wiring

In Florida, Aluminum Wiring has been in the spot light since 2010 when tens of thousands of Florida home owners learned they could not get insurance if they have this common wiring that was used frequently between 1965 and 1973.

Aluminum wiring is known to "cold creep". The wiring expanss as it heats up and contracts as it cools down, this can cause the wire to come loose at the connection and this can cause an arc which can heat up fixtures and start fires. Aluminum also oxidizes over time which can contribute to this fire safety issue.

There are two options to get insurance if you have aluminum branch wiring. First, and most costly (but the one we highly recommend) is to completely rewire your branch wiring to copper. This can cost on average, $ 8,000 to $ 20,000 depending on how easily or difficult your electrical components are to access.

The second option is to use AlumiConn or CopAlum crimps that in essence crimp a copper "pig tail" to your aluminum wire so that the copper wiring is what is making the connection to your electrical fixture. This option, on average, costs between $ 1,500 and $ 3,000 depending on how many electrical fixtures there are in the home. We recommend staying away from this when possible as we fear that the ever changing insurance industry may indeed OUTLAW the crimp method as well. We also do not like the idea of ​​going from the average fixture having 3 connections to having 6 connections. The more connections the more chance of failure.

4) Less Than a 100 Amp Electrical Service

A more recent industry change in our "power consumption hungry world" is requiring homes to have 100 amps or more of service feeding the home. With the heavy consumption of electrical power the average homeowner uses, insurance companies appear to be fearful that smaller services can overheat when using typical high consumption appliances.

The cost to upgrade an electrical service can range depending on if the size of the electrical wiring can handle the increased electrical load. If it can not, the feeder line will also have to be replaced. As always, get at least 3 quotes from reputable electrical contractors.

5) Polybutylene Plumbing

This popular plumbing pipe was used heavily through the 1980's and into the early 1990's. It is usually "blue or gray colored", is flexible, and has caused flood damage in thousands of homes across the country. Up until recently a few insurance companies did not ask about the type of plumbing pipe so agents would place homeowners with those companies, however starting September 1, 2012 Citizens Insurance Company specifically outlawed Polybutylene Plumbing.

A typical re-plumbing cost can run from $ 4,000 to $ 10,000 depending on the ease of running the new pipe (in attics or under homes). We recommend using copper or CPVC piping as some insurance companies are also taking issue with PEX pipeline that has become very popular over the past decade. We'll cover more on PEX in a later article.

6) Roof with less than 3 Years of life

The final INSURANCE DEAL KILLER in today's article addresses your first line of defense in a wind or rain event, THE ROOF! If your roof has less than three years of useful life left on it you will likely be denied insurance coverage. In our hot Florida sunshine, an average three tab shingle roof will last between 10 and 15 years. An average dimensional shingle roof will last between 15 and 25 years. Other popular roofing options include tile and metal roofing. These options have significantly longer life expectancy of upwards of 50 years if installed and maintained properly.

A re-roof is normally calculated on a per square basis. A square is equal to 100 sq ft of shingle. In the Pensacola area that per square cost can run anywhere from $ 225 to $ 300 per square making the average 30 square roof cost between $ 6,750 and $ 9,000 depending on the quality of products used.

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Construction Site Management – Accessibility

Construction sites offer different challenges as far as accessibility is concerned. This follows the fact that there is a mass movement of men (labor) as well as material haulers. These range from pick up trucks to trailers. Depending on the items being moved, the weight is different and as such the capacity of the route to and from site should match these requirements. There will also be visitors in light personal vehicles, especially consultants and prospective property buyers in case of commercial projects or prospective tenants in case of residential or other rental spaces. The available or provided access should well cater for these requirements as far as is possible. The different site conditions include;

· Virgin sites: This reflects to a new site where no other construction activity has been done before. This means that there is no access to the specific point of construction. Where such route may be available, it may not be sufficient and may need improvement. This may include works like cutting down trees, cutting high sections and filling low ones, dumping murram or other appropriate material. It will also include compact, wetting and curing of the dumped material. Being a new and sometimes temporary route, it will need maintenance. Where such access is to pass through other people's property, appropriate permissions should be thought. The local authorities must also be informed and provided with plans like ways of averting problems like ecological disturbance. It is usually wise to have the access route for construction being also the permanent access to the permanent route for accessing the completed facility.

· Existing sites: These are sites that have already been built upon previously. They may have existing access. The only hurdle would be where such access is still in use by others, as it will create an inconvenience and delivery use may be regulated to low peak periods only. There could also arise the need to provide alternative routes for the existing users. A good example here is road maintenance or improvement works, wherey diversions are created and maintained in good order during the construction period. Appropriate arrangements should be made to minimize inconvenience as well as prevent accidents.

· Tight Sites: These are unique sites in the fact that they have minimal space for maneuverability. Examples here are found in town centers or institutions. Regulation here is very strict and as such stringent measures should be put in place to follow such regulations. These sites are very difficult to manage as far as accessibility is concerned. An example is where concrete is to be delivered on site already mixed (In premix trucks). This presents the headache of timing as well as preventing inconvenience to other users.

The provision of access to sites should be a well thought out activity. Maintenance should be in top priority. The design of such access roads should also cater for the traffic envisaged for the said project. Road signage and other such furniture should also be provided and well maintained.

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BCIN? Difference Between Designer, Architect and Engineer According to the Ontario Building Code

As I meet with new clients and friends every day, I commonly hear the same questions “What is a BCIN?” “When is a BCIN required?” etc. Here is some clarification to the public on some important issues about choosing a company to provide you with plans. Please note that this information applies only in the Province of Ontario.

What is a BCIN?

A BCIN stands for ‘Building Code Identification Number’. This number is assigned by the Ministry of Municipal Affairs & Housing, to successful applicants who have completed the requirements outlined in Division C Section 3.2 of the Ontario Building Code. There are two distinct types of BCIN number, individuals & firms. Individuals are people who have completed the exams and have received a BCIN from the MAH; however, they do NOT carry any insurance. As a result this limits the types of projects that the person can do. Firm BCIN’s on the other hand MUST carry valid liability insurance, and depending on the amount of designs fees that a firm charges in a year will dictate the required amount of insurance coverage they must have. Insurance is expensive but it is there to protect you so avoid working with companies who do not have it. For most people, a home is your single largest asset; do you really want to get plans from someone without insurance?

How do I know if I am choosing a registered company?

The Ministry of Municipal Affairs & Housing maintains a database of all registered BCIN holders. The registry is available through a system called QUARTS. Once on the Public Registry, this system allows you to search by the individual’s name, the company’s name or the BCIN #. Once you have found a business or individual, it will bring you to a page with details on the company. It lists the mailing address of the business & contact details. At the bottom it should also show the Registration as ‘Registered Designer’ and the Status as ‘Current’. If it shows up as ‘lapsed or expired’ then this means that they either do not have valid insurance for that year, or that they are late in filing their paperwork.

Do I need an architect or engineer for my project?

Probably not! There have been massive changes to the system in the last few years, opening the doorway for a new title; designers. Architects & Engineers are NOT required for any project less than 600m² (6,458 sq.ft.) and less than 4 storeys. For most residential and small commercial projects, you do NOT need an architect or an engineer. However, and this is important, if the project involves severe structural modifications, an engineer may be requested by the municipality to review the plans. On this note, there is a BCIN exam which will supersede this requirement! If your design company is a registered company in the Category of ‘Building Structural’ then they can complete the plans.

When do I need a BCIN ‘stamp’ for my project?

Depending on the type of project you may or may not need a BCIN number on your drawings. You do not need a BCIN number if the project relates to the construction of a house that is owned by the person who produces the drawings or if it relates to a farm building less than 3 storeys. There are a few other instances, but these are probably the two most important. Often I hear homeowners ask for just the drawings to submit for permit (no stamp). This is allowed, but as the homeowner you must be knowledgeable of the drawings (after all, you are claiming that you have produced them). It is okay to admit to the municipality that you hired someone to draw them for you, but at the end of the day you will be responsible to ensure that the drawings meet code. If the city has approved your building permit based on the drawings and you proceed to build your project to the drawings only to later find out that there is a problem, you will be on the hook to make any necessary adjustments to pass inspection. Most companies will charge from $200 to $2000 for the use of their BCIN number on the drawings. This may seem expensive but it is the security blanket that will keep you safe and ensure that your drawings meet code! I also personally apply for the permits and handle all the paperwork on my client’s behalf when I charge this fee; which most people prefer as nobody likes to stand in line for half a day to submit paperwork to the City.

I hope that this will help to clarify any questions you may have had regarding the requirements of having someone produce building permits for your project. I look forward to working with you, and if you have any questions then please don’t hesitate to ask!

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