Maintenance

Sign Damage: Why Your Coverage May Be Thousands Short

Posted on by Brandon Meyer

Dear Valued Customers,

Sign Damage: A Costly Reminder

The photos at the bottom of this Newsletter may make this look like a minor loss — but once repairs were complete, the total cost came in at over $13,000. Never underestimate the cost of repairing or replacing a damaged sign. As sign technology has advanced, so has the price tag: a new sign can range anywhere from $5,000 to $40,000 depending on size and features.

So the question is: how well is your sign actually covered?

Most policies carry limited sign coverage — often a $1,000 to $5,000 sub-limit — and some carry none at all. It’s worth reviewing your policy closely to confirm you have enough coverage for a total sign loss, not just minor repairs.

Why You Can’t Rely on the At-Fault Driver’s Insurance

If a vehicle strikes your sign, that driver’s auto insurance is technically responsible. But in California, the state’s minimum required property damage coverage is only $5,000 — and some drivers carry no insurance at all. If the damage exceeds what their policy covers (or they’re uninsured), you’re left covering the difference unless your own policy protects you fully.

Don’t Let Wear & Tear Work Against You

As we’ve mentioned in past newsletters, wear and tear exclusions can also affect sign claims. Sprinklers that keep your landscaping looking sharp can also be quietly corroding or water-damaging your sign’s base over time. If a sign falls due to poor maintenance rather than an external event like a collision, your claim may be denied entirely.

We recommend a once-a-year maintenance check — sanding, repairing rust, and addressing any structural wear — to keep your sign both looking good and properly protected.

The Bottom Line

Review your policy’s sign coverage limit today, not after an incident. A modest coverage increase now could save you thousands later.

Thank you for your continued business.

Sincerely,
The RKM Team

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Three Claims Denied: Why “Normal Wear and Tear” Can Cost You Everything

Posted on by Brandon Meyer

Dear valued customer;

With the rainy season upon us, we feel it’s a good time to re-address this very important issue;  Where insurance companies exclude claims that arise from normal wear and tear and/or improper maintenance.

Sometimes we think “Well, I’ve been paying all this money every year for insurance, therefore, I should be covered on any claim” unfortunately, this is not a valid argument.   ALL insurance companies exclude these type of claims which arise out of normal wear and tear and/or improper maintenance.

Examples of excluded wear/tear claims and improper maintenance claims:

  • Monument sign blew down and fell during heavy wind storm – after the insurance company did their investigation, they determined that the reason the sign fell was due to the fact that the base of sign had severely rusted and deteriorated over the years.  And if it was maintained properly, it would not have fallen down. The insurance company declined coverage.
  • Water pipe burst underground and caused severe damage – after the insurance company investigation, it was determined that the reason the pipe burst, was due to it being old and corroded. So the insurance company declined coverage.
  • During a heavy rain storm, water ran down the inside wall of the mini mart and did damage to walls and equipment. When the insurance company completed their investigation, they found that the drains on the roof were plugged, which then allowed the water to build up and spill over the water proofing material causing the leak inside the store. It was determined that if the drains were maintained properly and kept clean, this damage would not have occurred.  The claim was declined.

So, what’s the moral of this story:  Make sure to check and clean those gutters periodically, also check all your property periodically, and repair anything showing significant wear/tear BEFORE you find out the hard way and have your claim denied to due avoidable negligence.

We hope you find this information useful.  If you would like to add any thought to this subject, or have any suggestions you would like to know about for future newsletters, we would love to hear from you.  Your input is always welcome and appreciate.

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Is Your Roof Insurance-Ready? Plus: A Key UST Legislative Update

Posted on by Brandon Meyer

Dear Valued Customers,

It’s been a crazy year and we hope this newsletter finds you well. Today, we bring you a crucial legislative update that impacts Underground Storage Tank (UST) owners and operators in California. Assembly Bill 1115 (AB 1115) has been enacted, extending the deadline for the UST Cleanup Fund and related programs.

Key Provisions of AB 1115:

  • Extension of Cleanup Fund and Companion Programs: AB 1115 extends the UST Cleanup Fund and companion programs, including Replacing, Removing, or Upgrading (RUST) grants and loans, through January 1, 2035.
  • Financial Responsibility Mechanism Extension: UST owners and operators will now be able to use the UST Cleanup Fund as a financial responsibility mechanism until December 31, 2034.

For further details or inquiries related to AB 1115, we encourage you to visit the official California State Legislature website or contact the relevant regulatory authorities.

We will continue to keep you updated on developments that may impact your business or industry.

Roofing Maintenance Reminder:

We also want to take a moment to remind our valued customers about the importance of maintaining your building’s roofing system. ALL insurance companies are now asking, on buildings that are over 30 years old, when was the roof either updated or replaced.

A well-maintained roof is crucial for safeguarding your investment and ensuring the longevity of your property.

Key Roofing Maintenance Tips:

  1. Regular Inspections: Schedule regular inspections to identify any signs of wear, damage, or potential issues. Early detection can prevent more extensive and costly repairs.
  2. Clean Gutters and Drains: Ensure that gutters and drains are free from debris to prevent water buildup and potential damage to your roofing system.
  3. Address Leaks Promptly: If you notice any leaks or water stains inside your building, address them promptly. Ignoring leaks can lead to more significant issues and compromise the integrity of your roof.
  4. Trim Overhanging Branches: Overhanging branches can cause damage to your roof, especially during storms or high winds. Trim branches to prevent them from scraping or puncturing the roofing material.
  5. Professional Roofing Inspections: Consider hiring a professional roofing contractor for comprehensive inspections and maintenance. They can provide expert guidance on the state of your roof and recommend necessary repairs or upgrades.

A well-maintained roof not only protects your property but also gets you in better favor with the insurance carriers. We encourage you to prioritize roofing maintenance as part of your ongoing building management strategy.

Remember, you can view our previous ongoing newsletters any time by visiting our website at  www.RKM-INS.com.

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How Simple Maintenance and Cameras Can Save Your Service Station Thousands

Posted on by Brandon Meyer

Dear Valued Customer,

We should all know by now that the Service Station insurance marketplace has become very challenging  and in many cases very expensive. This is why claim prevention should be an important priority in your daily operations. Many of our service stations with only one or two claims on their records are seeing significant increase in premiums, with lesser coverage’s.

NOW is the time that you can be proactive in protecting your business in today’s insurance climate.

Preventing & Mitigating Slip & Falls with proper procedures & Cameras

  • Set up a documented procedure to regularly inspect your premises, multiple times a day, and immediately cleanup and/or fix any trip/slip and fall hazards. We might sound repetitive, but please note the following:
    • We have now just recently received a claim because of a customer tripping on a pot hole. If that pot hole was detected earlier and fixed, it would have prevented that claim and now the insured may be looking at considerable increases in premium come renewal time. What cost more, a couple hundred dollars to fix the pot hole or several more thousand dollars in increased premiums.
    • We are still getting inspection reports back from the insurance carriers that show large cracks and pot holes. AGAIN, it shouldn’t be the inspection report that points these hazards out to you. They should have been already repaired.
  • Video backup and documentation – When an incident occurs (whether or not it develops into a claim), please save the video, document who was working at the time and get a statement from them. As mentioned in prior newsletters, in CA the injured party has up to 2 years to report a bodily injury claim.

Maintaining a clean and well-organized premises is not only essential for customer satisfaction and employee morale but also plays a significant role in mitigating insurance risks. A cluttered or poorly maintained environment not only increases the likelihood of accidents and injuries but also raises concerns about compliance with health and safety regulations.

Insurers often conduct risk assessments of business premises as part of the underwriting process, taking into account factors such as cleanliness, maintenance practices, and adherence to safety protocols. Businesses that demonstrate a commitment to cleanliness and proactive maintenance not only reduce their exposure to liability claims but also present a lower risk profile to insurers, potentially leading to lower premiums and more favorable coverage terms.

Vehicle damage to premises:

  • Whenever a vehicle does damage to your property, get as much info on the vehicle. This would include car info, driver info and insurance info. If there’s a video, make a backup immediately. This way we will make every attempt to get their insurance company to cover the loss.

As businesses navigate the complex landscape of commercial insurance in California, proactive risk management strategies are essential for protecting assets, minimizing disruptions, and ensuring long-term viability. By leveraging tools such as surveillance cameras and prioritizing cleanliness and maintenance, insured businesses can mitigate risks, streamline the claims process, and ultimately enhance their bottom line.

This turbulent insurance environment will continue to worsen for at least 1 – 2 years.

Remember, you can view our previous ongoing newsletters any time by visiting our website at  www.RKM-INS.com.

Remember, your agent is always available to you to discuss this and other issues with you. We are just a call away.

Thank you for your continuing business

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