Small Business Administration

June 2006

SBA Program Office

Welcome to SBA's Small Business VOICE - an online discussion forum with the entrepreneaur in mind.

Host: Loretta Worters, vice president of Communications for the Insurance Information
Institute

Time: Thursday, June 29, 2006 at 1:00 p.m. EDT (10:00 a.m. PDT)

Topic:"Insuring Your Home & Business Before Disaster Strikes"

Loretta Worters, vice president of Communications for the Insurance Information Institute will host the June Web chat on "Insuring Your Home & Business Before Disaster Strikes. ” Disaster preparedness begins with having adequate insurance coverage – at least enough to rebuild your home and replace personal belongings. Homeowners and business owners are encouraged to review their policies to see what isn’t covered. Worters will answer questions about insurance coverage for businesses, homeowners and renters; business interruption insurance, which helps to cover operating costs during the post-disastershutdown period; and the essentials of flood insurance.

From : U.S. Small Business Administration
Location : Washington , D.C.

Question :

Reply :
Well, folks, looks like we are out of time. I have greatly enjoyed talking with each of you. I want to thank the SBA for giving me the opportunityto be here today. Today's chat will be archived on the SBA's Web site at ww.sba.gov/chats.

From : U.S. Small Business Administration Location : Washington , DC

Question :
What kind of insurance tips do you recommend for business and homeowners in general?

Reply :
Ah, there are so many important tips for businesses and homes. I think I addressed the business question with a previous participant, but in terms of homeowners, Patrick, the I.I.I. recommends asking the following ten questions: 1. Have you gotten married or divorced? If you
have gotten married, you are merging two households, you may need to update your homeowners insurance. And you may want to consider increasing your insurance for any new valuables received as wedding gifts, and for jewelry such as wedding and engagement rings. If you are getting divorced, you will probably no longer be sharing a home—you
should inform your insurer as this will mean setting up separate homeowners policies. 2. Have you done extensive renovations on your home? If you have made major improvements to your home, such as adding a new room, enclosing a porch or expanding a kitchen or bathroom, you risk being underinsured if you don't report the changes
to your insurance company. Nearly 40 percent of homeowners who say they have “significantly remodeled their homes” have not updated their homeowners insurance to reflect the new value of their homes. This means almost 8 million American homes are improperly insured—make sure yours is not one of them. Don’t forget about new structures outside of your home. If you have built a gazebo, a new shed for your tools or installed a pool or hot tub, you need to speak to your agent. If, as part of the renovation, you purchase furniture, exercise equipment or electronics, you may need to increase the amount of insurance you have on your personal possessions. Keep receipts and add any
new items to your home inventory. 3. Have you decided to buy a retirement or vacation home? If you are searching for your dream vacation home or a second home you might retire to, make sure you research the availability and cost of homeowners insurance before you commit to the purchase. Often, the very factors that make a vacation home seem ideal—whether it is a waterfront property or a
mountain retreat—can introduce risks that, together with the fact the home is likely to be vacant much of the time, can make it costly and difficult to insure. In the event you have already bought a vacation home, don’t skimp on the insurance. The risk of theft or disaster is just as significant, if not more so, in a second home as in your primary residence. If your new property is close to the water, be sure to ask about flood insurance. Damage to your home or belongings resulting from flood is not covered under standard homeowners insurance policies. Flood insurance is available from the National Flood Insurance Program
(NFIP), and is generally sold though many private agents and brokers. You can ask your agent or representative whether your home might be at risk for flood. The NFIP Web site (http://www.floodsmart.gov/floodsmart/pages/index.jsp) also has a handy tool for assessing your flood risk—just enter your address, and it will tell you your level of risk (http://www.floodsmart.gov/floodsmart/pages/riskassesment/
findpropertyform.jsp). Some homeowners insurers do offer flood coverage in excess of the NFIP policy. 4. Have you acquired any new valuables—jewelry, electronic equipment, fine art, antiques? A standard homeowners policy offers only limited coverage for such items. If you have made purchases or received gifts that exceed these limits, you should consider supplementing your policy with a “floater,” a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss. Before purchasing a floater, the items covered must be professionally appraised. Keep receipts and add the new items to your home inventory. To create your personal home inventory, download the I.I.I.'s free Home Inventory Software. 5. Have you signed a lease on a house or apartment? If you are renting a home, your landlord is responsible for insuring the structure of the building, but not for insuring your possessions—that’s up to you. Nevertheless, nearly seven in 10, or 20 million, renters say they do not have renters insurance. If you want to be covered against losses from theft and catastrophes such as fire, lightening and windstorm damage, you should invest in renters insurance. Like homeowners insurance, renters insurance includes liability, which covers your responsibility to other people injured at your home, or elsewhere by you, and pays legal defense costs if you are taken to court. Regardless of whether you are an owner or renter, you will have the following options when it comes to insuring your possessions: Actual cash value pays to replace your home or possessions minus a deduction for depreciation. Replacement cost pays the cost of rebuilding/repairing your home or replacing your possessions without a deduction for depreciation. Think carefully about what your financial position would be in the aftermath of a disaster, and make sure you have the type of policy that is right for you.

From : Elliot Wagner
Location : St. Petersburg , Florida

Question :
I live on the second floor of a building in a flood zone. Since my property is on the second floor, in the event of a hurricane, Do I really need flood insurance? What protection would it provide?

Reply :
Well, Elliot, you live in Florida, the hurricane capital of the country. Standard homeowners policies do not cover flooding. You can purchase flood coverage directly through your homeowners insurance agent. However, the policy is provided by the Federal Flood Insurance Program ( 800-427-4661, http://www.fema.gov/nfip ). Replacement cost coverage is available for the structure of your home, but only actual cash value coverage is available for your possessions. Replacement cost coverage pays to rebuild your home as it was before the damage. Actual cash value is replacement cost coverage minus depreciation so that the older your possessions are, the less you will get if they are damaged. There may also be limits on coverage for furniture and other belongings stored in your basement. Flood insurance is available for renters as well as homeowners. You will need flood insurance if you live in a designated flood zone. But flooding can also occur in inland areas and away from major rivers. Consider buying a flood insurance policy if your house could be flooded by melting snow, an overflowing creek or pond or water running down a steep hill. Don’t wait for a flood season warning on the evening news to buy a policy—there is a 30-day waiting period before the coverage takes effect. The federal flood insurance program provides only limited coverage. If you need more coverage than the federal program provides, additional coverage known as “excess” flood insurance is available from specialized insurance companies. Depending on the amount of coverage purchased, an excess flood insurance policy will cover damage above the limits of the federal program on the same basis as the federal program—replacement cost for the structure and actual cash value for the contents. Excess flood insurance is available in all parts of the country—in high risk flood zones along the coast and close to major rivers as well as in areas of lower risk—wherever the federal program is available. It can be purchased from specialized companies such as Lexington Insurance Company, part of American International Insurance Company, and Lloyd’s through independent insurance agents, or from regular homeowners insurance companies that have arrangements with a specialized insurer to provide coverage to their policyholders.

From : William
Location : Chicago.

Question :
How costly is it to adequately insure a computer business?

Reply :
Rates vary by company and how big your business is, where you're located, how many employees you have, what risk factors there are. A business in Chicago is going to be more costly to insure than say a business in Wilmington.

From : William
Location : Chicago , Illinois

Question :
I have a small computer shop in the Chicago area. What kind of insurance would you recommend my computer business have in place?

Reply :
Ah William. You definitely want to have at minimum a business owners policy that includes protection for your contents -- i.e., computers. You also want business interruption insurance so that you can sustain your business if you can't get back to your shop. Also you need liability insurance to protect you from lawsuits.

From :Donna Riggins
Location : Houston , TX

Question :
How do I know if I have enough insurance coverage for my home. Is there some way to determine?

Reply :
Wow, Donna, that is an excellent question. For many people, their home is their greatest asset. Yet studies show that 59 percent of today’s homes are underinsured by an average of 22 percent.To protect their investment this hurricane season, homeowners should update their insurance regularly to include improvements, major purchases and increased rebuilding costs. Hurricane Katrina was a painful reminder to homeowners that they should contact their insurance agent or company representative at least once a year to make sure that their insurance is up to date. A major home alteration or addition, even a lifestyle change such as marriage, or a family member moving in (along with his or her belongings), should trigger a call to your insurance company. The cost of building or repairing a home has increased dramatically in recent years. According to the U.S. Census Bureau, homeowners spent over $218 billion on additions, alterations, maintenance and repairs in 2005, up from $201 billion in 2004. Materials like lumber, cement, gypsum and structural steel products have become scarcer, not only because of the devastation from last year’s storms, but also because of increased global demand. In fact, the cost of lumber climbed 6.1 percent in 2005, according to statistics from the U.S. Department of Labor. To properly insure your home, we recommend that you ask your agent or company representative three key questions: 1. Do I have enough insurance to rebuild my home? Your policy needs to cover the cost of rebuilding your home at current construction costs. Unfortunately, some homeowners simply purchase enough insurance protection to satisfy their mortgage lender. Others confuse the real estate value of their home with what it would cost to rebuild it. Quite simply, you should have enough insurance to rebuild your home in the event that it is completely destroyed. Be sure to consider the following: Replacement Cost Most policies cover replacement cost for damage to the structure. A replacement cost policy pays for the repair or replacement of damaged property with materials of similar kind and quality. Extended Replacement Cost This type of policy provides additional insurance coverage of 20 percent or more over the limits in your policy, which can be critical if there is a widespread disaster that pushes up the cost of building materials and labor. Inflation Guard This coverage automatically adjusts the rebuilding costs of your home to reflect changes in construction costs. Find out if your policy includes this coverage or if you have to purchase it separately. Ordinance or Law coverage If your home is badly damaged, you may be required to rebuild it to meet new (and often stricter) building codes. Ordinance or law coverage pays a specific amount toward these costs. Water Back-Up This coverage insures your property for damage from sewer or drain back-up. Most insurers offer it as an add-on to a standard policy. Flood Insurance. Standard home insurance policies provide coverage for disasters such as fire, lightning and hurricanes. They do not include coverage for flood (including flooding from a hurricane). Flood insurance is available through the federal government’s National Flood Insurance Program (www.floodsmart.gov), but can be purchased from the same agent or company representative who provides you with your home or renters insurance. Make sure to purchase flood insurance for the structure of your house, as well as for the contents. Excess Flood Protection, which provides higher limits of coverage than the NFIP in the event of catastrophic loss by flooding, is available from some insurers. Keep in mind that there is a 30-day waiting period before the insurance is valid. 2. Do I have enough insurance to replace all of my possessions? Most homeowners insurance policies provide coverage for your personal possessions for approximately 50 percent to 70 percent of the amount of insurance you have on the structure of your home. So if you have $100,000 worth of coverage on the structure of your home, you would be covered for $50,000 to $70,000 worth of the contents of your home, depending on the policy. The best way to determine if this is enough coverage is to conduct a home inventory, which details everything you own and the estimated cost to replace these items if they were stolen or destroyed by a disaster. You can download the I.I.I.’s free home inventory software at http://www.knowyourstuff.org . You can insure your possessions in two ways: by their actual cash value or their replacement cost. Make sure you review with your agent or company representative which type of coverage is best for your particular situation. Cash Value Policy This coverage pays the cost to replace your belongings minus depreciation. Replacement Cost Policy This coverage reimburses you for the full current cost of replacing your belongings. To illustrate the difference between the two types of policies, suppose, for example, a fire destroys a 10-year-old television set in your living room. If you have a replacement cost policy for the contents of your home, the insurance company will pay to replace the TV with a comparable new one. If you have an actual cash value policy, it will pay only a small percentage of the cost of a new TV set because the old TV has been used for 10 years and is worth a lot less than its original cost. Some replacement cost policies specify that the new item be purchased by the insurance company as they may be able to purchase at a bulk or special rate. The price of replacement cost coverage is about 10 percent more than that of actual cash value. 3. Do I have enough insurance to protect my assets? Homeowners insurance doesn’t just protect the structure or contents of your home, it also provides liability protection. This covers you against lawsuits for bodily injury or property damage that you or your family members may cause to other people. It also pays for damage caused by pets. Liability insurance pays for both the cost of defending you in court and for any damages a court rules you must pay—up to the limits of your policy. Most homeowners insurance policies provide a minimum of $100,000 worth of liability insurance, but higher amounts are available. It is important to purchase enough liability insurance to protect your assets. If the standard liability coverage in your homeowners policy is not sufficient, you may need an excess liability, or umbrella, policy, which provides additional coverage over and above what is covered in your home (and auto) insurance policy.

From : Richard Karr
Location : Cedar Rapids

Question :
I’ve never heard on the iii. What does your organization do?

Reply :
The mission of the Insurance Information Institute (I.I.I.) is to improve public understanding of insurance -- what it does and how it works. For more than 40 years, the I.I.I. has provided definitive insurance information. Today, the I.I.I. is recognized by the media, governments, regulatory organizations, universities and the public as a primary source of information, analysis and referral concerning insurance. Each year, the I.I.I. works on more than 3,700 news stories, handles more than 6,000 requests for information and answers nearly 50,000 questions from consumers. In addition to direct contact with the media, individuals and organizations, the I.I.I. publishes a host of helpful pamphlets and books ranging in subjects from 9 Ways to Lower Your Auto Insurance Costs to the I.I.I. Fact Book. The Institute does not lobby. Its central function is to provide accurate and timely information on insurance subjects.

From : Carolyn Hardrick
Location : College Park , Georgia

Question :
With the vast information being provided regarding preparing for disaster,is there a possibility that future uninsured disaster victims may not be assisted through SBA's programs?

Reply :
Currently SBA Disaster Assistance can provide low-interest loans to Homeowners, Renters, and Businesses of all sizes or non-profit organizations for uninsured or underinsured recovery cost. Renters and Homeowners alike may apply for up to $40,000 to repaire or replace clothing, furniture, cars or applicances damaged or destroyed in the disaster. Homeowners may apply for up to $200,000 to repair or replace their primary residence to its pre-disaster condition. Businesses of all sizes may apply for a Physical Disaster Loan of up to $1.5 million to repair or replace damaged real estate, equipment, inventory and fixtures. Small businesses and small agricultural cooperatives suffering substantial economic injury may be eligible for an Economic Injury Disaster Loan (EIDL) of up to $1.5 million to meet necessary financial obligations - expenses the business would have paid if the disaster had not occurred. EIDL loans can provide working capital for business disaster related needs, however these loans do not replace lost sales nor lost profits. Homeowner and Business approved loans may be increased by as much as 20 percent to protect the property (mitigation measures) against future disasters of the same type.

From : Rhonda Harris
Location : Denver , CO

Question :
With all the flooding taking place along the east coast what kind of insurance coverage do you recommend for homeowners?

Reply :
There are predictions by climatologists that the Northeast is at great risk for a hurricane this season, Rhonda. And flooding is a very common occurrence. That's why we HIGHLY recommend people purchase flood insurance through the federal government's National Flood Insurance Program. Cost for flood insurance varies by your proximity to the coast, and whether or not you have a basement. But on average, it can run $300-$400 annually.

From : Wendy Roberson
Location : Richmond , VA

Question :
As an apartment owner am I liable for damage caused by flooding my tenants property? Is my insurance responsible for replacing lost goods?

Reply :
It depends on the situation, Wendy. If it is due to poor maintenance on the part of the landlord, you may indeed be liable. There was a recent situation I learned of where tenant A (on the second flood) had extensive flooding from a burst water hose. It is likely that tenant B below will file with her insurance company and the insurer will then subregate with tenant A's insurer.

From : Heidi Edwards Dunn
Location : Concord , NH

Question :
Could you please describe how business interruption coverage works?

Reply :
Hey Heidi, Business interruption insurance compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy, such as a fire. Business interruption insurance covers the profits you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.

From : Samuel Shaw
Location : Atlanta , Ga

Question :
Would you recommend renter's insurance for those living in apartment units? How beneficial is it?

Reply :
If you're a renter, Sam, it's a good idea to get renters insurance. Liability renters insurance covers injuries suffered in an apartment unit from things like slips or falls if the tenant is held liable. It also covers a tenant in the event he or she is sued and held liable by a landlord for damages to the apartment caused by a tenant's negligence. Contents renters insurance covers a renter's personal property, including furniture, stereos, television sets, clothing, and appliances, as well as temporary relocation expenses. There are typically limits on jewelry, furs, antiques, cash, silverware and precious collector's items, but renters can purchase special additional renters insurance to cover those items. Renters insurance doesn't cover damage from weather-related floods.

From : Jim Kelly
Location : Nashville ,

Question :
Hi Loretta, I’ve heard that there are different types of flood insurance, such as sewage back up. What are they and how can I determine what type I should have for my home?

Reply :
Backups of raw sewage through the drains in your home or business can be a nasty experience. While they occur infrequently, they can be very costly. Most homeowner and business insurance policies will not cover a sewer backup without sewer backup coverage. Obtaining an insurance rider on a homeowners or business policy would cover such damage if it occurs. Most homeowners and business owners may not realize that they are responsible for the maintenance and repair of their house or sewer lateral --the pipeline between the city sanitary sewer main, usually located in the street -- and the building. The sewer lateral is owned and maintained by the property owner including any part, which may extend into the street or public right of way. A cracked or deteriorated lateral or one filled with tree roots can allow groundwater to seep into the system contributing to the problem. Sewer back up is not the same as flood insurance. You can purchase sewer back up protection on your homeowners policy. Flood insurance, however, is provided through the National Flood Insurance Program. Both are important coverages to consider.

From : Jim Location : Nashville

Question :
What exactly is business interruption insurance and how do I know if it’s needed?

Reply :
If you own a business, you should carry business insurance, Jim. So many small businesses are unprepared. They feel it's best to use the money to put back into the business, when in reality, without this coverage, you may not be able to open your doors again. A business that has to close down completely while the premises are being repaired may lose out to competitors. A quick resumption of business after a disaster is essential. Business interruption insurance compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy, such as a fire. Business interruption insurance covers the profits you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt. So think about it, Jim. Can your business survive these losses?

From : Jim
Location : Nashville

Question :
What exactly is business interruption insurance and how do I know if it’s needed?

Reply :
Business interruption insurance can be as vital to your survival as a business as fire insurance. Most people would never consider opening a business without buying insurance to cover damage due to fire and windstorms. But too many small businessowners fail to think about how they would manage if a fire or other disaster damaged their business premises so that it was temporarily unusable. Business interruption coverage is not sold separately. It is added to a property insurance policy or included in a package policy. A business that has to close down completely while the premises are being repaired may lose out to competitors. A quick resumption of business after a disaster is essential. Business interruption insurance compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy, such as a fire. Business interruption insurance covers the profits you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt. Make sure the policy limits are sufficient to cover your company for more than a few days. After a major disaster, it can take more time than many people anticipate to get the business back on track. There is generally a 48-hour waiting period before business interruption coverage kicks in. The price of the policy is related to the risk of a fire or other disaster damaging your premises. All other things being equal, the price would probably be higher for a restaurant than a real estate agency, for example, because of the greater risk of fire. Also, a real estate agency can more easily operate out of another location.

From : Katie Marino
Location : San Antonio , TX

Question :
Is flood insurance important to have for my home based business?

Reply :
Yes, Katie, flood insurance is important for your home and your business. Sadly, less than 40 percent of all homeowners carry flood insurance. Many people think that their homeowners policy covers them for flood insurance. Flood insurance is NOT covered under a standard homeowners policy or home based business policy. The NFIP program is administered by many insurers.

From : Qaadira
Location : St. Thomas , US Virgin Islands

Question :
I am currently negotiating a commercial lease for a 600 sq ft space in a historic building in St. Thomas. The landlord has indicated in the lease that before occupancy I must secure a "Public General Liability Insurance policy of no less than $500,000 per occurence and no less than $100,000 for property damage. I have 3 questions: 1. What are the governmental legal minimum coverage amounts for business liability insurance and property damage (if any)in the USVI territory? When I contacted a local insurance agency they said "the coverage amount is whatever the landlord wants to set it at" 2. The lease also requires that "the landlord be name an assured in the policy". Why is that necessary? 3. The landlord says he has his own insurance coverage on the building already. And I assume that only covers the common areas(stairways, veranda, bathrooms, etc.). Who would be liable if someone was hurt or injured in the common areas coming to or from my space.

Reply :
Well, Qaadira, I'm not familiar with specifc territories, however, I can tell you that apartment owners and managers are increasingly requiring that renters carry their own liability insurance. In some instances, landlords won't rent an apartment until a prospective tenant provides proof of insurance. The push applies to new tenants as well as existing ones whose leases are up for renewal, and is partly a response to the rising costs of insuring apartment properties, which typically have higher exposure to fires, slips, falls and assaults than most other commercial properties. You are correct that the landlord's insurance would cover the common areas. As to who would be liable if someone were injured in the common areas, it depends on whose negligent. Legally, you may both be liable or held negligent. That's why it is important to carry liability insurance and with adequate limits. In reality, the landlord is protecting himself and you in the process.

From : Test Question
Location :

Question :
Do you recommend renter's insurance?

Reply :
Most definitely! The average cost of renters insurance is relatively inexpensive --$12 a month, or $144 a year, for about $30,000 of property coverage and $100,000 of liability coverage, with a deductible of $250. There are two primary forms of renters insurance -- liability and contents insurance -- and they are typically packaged and sold together.

From : Biranda Sims
Location : DeSoto , Texas

Question :
When insurance companys cover flooding caused by broken levees in the future?

Reply :
Not likely. Since 1968, flooding has been covered under the federal government's National Flood Insurance Program. The breached levees caused the extensive flooding in the Gulf and insurers do not cover for that kind of loss.

From : Louis Stroud
Location : Dallas , TX

Question :
What are the most important questions that you have been asked regarding apartment renters insurance and what were your responses? Thank you.

Reply :
Probably the most important question, Louis, has been, do I really need renters insurance and the fact that a lot of people are under the misconception that your landlord's policy covers you. Yes, you reall do need renters insurance, and no, your landlord does NOT cover you. Many people don't get the coverage because they feel they don't have a lot of "things." But it's not just the contents, but the liability aspect which is so important.

From : Mitra
Location : Chicago , IL

Question :
I am working on a start up business in cosmetics. I purchase my ingredients for lip glosses and combine them at my home office to a finish product in a lip gloss form. I dont manufacture any of the ingredients and all the ingredients are bought from a company based in Illinois. I am having a hard time finding an insurance company who would insure my company for product liability. One company finally came back with $2500/year policy for $1,000,000 and $1000 deductible. in your openion is this a fair amount? any suggestions with the insurance steps? Thank you. Mitra Salehzade 773-761-6989

Reply :
There are many issues to consider with this kind of policy, Mitra, so I would suggest you speak with several insurers and get a number of quotes. Don't just go by price, also look at the service the company provides, and, most importantly, it's stability. A.M. Best Co offers financial ratings of insurers, which can help you in selecting a financially sound company. A company with a rating of A- or better, indicates that a company is in good financial standing.

From : BRIAN REYNOLDS
Location : JENSEN BEACH , FL

Question :
I own a 5 unit apartment buiding near the water, have flood insurance, but it does not cover law and ordinance changes that will be enforced if I have more than 50% damage--how can I protect myself if a disaster such as this occurs.

Reply :
Surplus lines may also be able to offer law and ordinance coverage in varying amounts as an endorsement to your business owners policy for an additional premium. To determine whether your 5 unit apartment is in compliance with current building codes, contact your municipal planning department.

From :Guenther Guennel
Location : Fort Myers , Florida

Question :
My Ins.Company Nationwide wrote me a letter of Insurance Cancellation.What next?Can you name me Insurance Companies who insure my home and 5 Apartment buildings?Thank you kindly

Reply :
Well, Guenther, Florida is, as you know, is a very difficult place to get insurance these days. With the tremendous number of hurricanes that have hit the state over the past several years, many companies who have a large amount of exposure, are pulling back from this market. The leading commercial writers in Florida aside from Nationwide are Zurich, St. Paul Travlers, Hartford Fire Group, State Farm Mutual Group, Allstate and Continental Casualty Group. If you are still having trouble finding coverage, there is also Florida Citizens – the insurer of last resort. Best of luck to you.

From : Jeanet Gallarday
Location : oakland park , Florida

Question :
I am a landlord, I would like more information about insurance for the apartment I am renting

Reply :
If you're a renter, it's a good idea to get renters insurance. Liability renters insurance covers injuries suffered in an apartment unit from things like slips or falls if the tenant is held liable. It also covers a tenant in the event he or she is sued and held liable by a landlord for damages to the apartment caused by a tenant's negligence. Contents renters insurance covers a renter's personal property, including furniture, stereos, television sets, clothing, and appliances, as well as temporary relocation expenses. There are typically limits on jewelry, furs, antiques, cash, silverware and precious collector's items, but renters can purchase special additional renters insurance to cover those items. Renters insurance doesn't cover damage from weather-related floods.

From : Robert Foraker
Location : North Canton , OH

Question :
Would I be better off placing my personal home in a corporation for insurance reasons if my business has its own alternative energy.

Reply :
Not quite sure I understand the question, Robert. If you work out of your home, you could have a homeowners policy that adds an endorsement for your business, depending on the extent of the revenue of the business. Not sure how the alternative energy would apply here. If your business is using alternative energy to bring down its operating costs as well as any risks in the business, and you could document to your company over time a reduction in risks, then your rates would be adjusted to reflect the improved risk factor in your business.

From :Christopher Effgen
Location : Anchorage , Alaska

Question :
I had the privilege of working for SBA as a disaster loss verifier this year. What struck me was the degree to which damages could have been prevented if for example property owners had cut down trees which represented threats or upgraded foundation systems which represent risks. Plotting the damage on the ground and connecting the damage description to the age and type of construction could enable us to construct a statistical picture of the risks and threats that real property owners are subject to from disasters. By entering in geographic information, property type, age and threat source we could perform risk/threat probability analysis, that could be applied to property outside the area affected by the disaster and make available to the public and policy makers information in statistical formats regarding the relative risk/threat that each individual home and business owner in the United States faces. Does the Insurance Information Institute do anything like this?

Reply :
Thanks, Chris. You are certainly right. Effective mitigation plays an important role in the prevention of damage to property. The Insurance Information Institute does not perform risk/threat probability analysis. There are modeling firms that do that very affectively, such as AIR, EQE and RMS. However, the I.I.I. develops white papers on issues such as Managing Natural Disaster Risk and a wonderful new paper prepared by our economists Drs. James Valverde and Marcellus Andrews is just being completed on global climate change.

From : U.S. Small Business Administration
Location : Washington , D.C.

Question :

Reply :
Good afternoon! It’s my pleasure to participate in the SBA live Web chat series. Today’s Web chat will be focusing on Insuring Your Home & Business. I look forward to answering your insurance questions, particularly as they relate to insurance preparedness for small business owners, homeowners and renters.

From : sharyn m odom
Location : biloxi , mississippi

Question :
I recently closed on my SBA loan . Could I start paying my loan back now? And if so, where would I send my payment and what information would I need to include to make sure it is going to my account?

Reply :
You can start making payments at any time. Please call the SBA Disaster Assistance Customer Service Center at 1-800-659-2955 or or 1-800-877-8339 for those who are hearing impaired, or you can email for the information at disastercustomer service@sba.gov. Either of these will be able to provide you with the specific information as to where you would make your payment and answer any questions you might have.