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What's Happening
12/29/2009
| We've added a couple of articles regarding winter weather, your home and autos.
Best wishes for the coming year!
Bartz/Rumery Agency and Fremont Insurance Team Up To Offer Winter Driving Advice
The rapid onset of winter caught many people - particularly motorists - off guard. Icy road conditions and unsafe driving practices lead to hundreds of fatalities each year. In fact, 70 percent of winter weather-related deaths in the United States are caused by icy road conditions1. Fremont Insurance (OTC BB: FMMH), a Michigan-exclusive property and casualty insurance carrier with headquarters in Fremont, Michigan, offers the Top Ten Winter Driving Tips, to help keep Michigan drivers stay safe and avoid costly accidents.
Winter driving in Michigan provides every kind of driving condition, wet to slick to snow-covered roads and downpours to white outs creating scary conditions for people of all ages, skill levels and driving experience. While many driving tips are things Michigan drivers have heard before, it's always a good idea to stop and think about them again before heading out on the road.
1. Before starting out, turn on your lights to increase your visibility to other motorists. Be sure to clear snow and ice completely from all windows, lights, hood and roof. In addition, law enforcement officials are warning that they will be on the lookout for "peephole drivers."
2. Posted speed limits are for dry pavement. Decrease your speed on icy or snow-covered roads and allow extra distance (at least three times the norm) between your vehicle and the vehicle in front of you.
3. Watch the traffic well ahead for extra reaction time. Always drive defensively and give yourself a cushion of time to deal with wintery conditions and remember to use low gears to maintain traction, especially on hills.
4. Stay well back of maintenance vehicles and snowplows - at least 200 feet (it's the law) - and don't pass on the right. Use extreme caution when passing in a passing lane. Also do not cut quickly in front of heavy trucks. Remember they take longer to safely respond and come to a complete stop.
5. Avoid abrupt lane changes. There may be a snow ridge between lanes. Also, the passing lane may be in worse shape than the driving lane.
6. Brake early and gently to avoid skidding. It takes more time and distance to stop in adverse conditions. If your wheels start to lock up, ease off the brake. Do not pump anti-lock brakes. The right way is to stomp and steer.
7. Watch for slippery bridge decks, even when the rest of the pavement is in good condition. Bridge decks will ice up sooner than adjacent pavement.
8. Don't use cruise control or overdrive in wintery conditions. Even a slight depression of your brakes to deactivate can cause loss of control on hidden slippery patches.
9. Do not assume your vehicle can handle all conditions. Even four-wheel and front-wheel drive vehicles encounter trouble on winter roads.
10. Don't drive at all in adverse conditions if you can avoid it. If you can't, try to wait until the snow plows and sanders have been out.
If I had to give people just one bit of advice, it would be to just simply slow down. It seems like everyone is in a hurry to get somewhere these days, particularly during the holiday season. Always remember that it's better to arrive a few minutes later and be safe then to drive too fast for conditions and not arrive at all.
About Fremont Michigan InsuraCorp, Inc.
Fremont Michigan InsuraCorp, Inc. is the holding company for Fremont Insurance Company. Headquartered in Fremont, Michigan, the company provides property and casualty insurance to individuals, farms and small businesses exclusively in Michigan. Fremont Michigan InsuraCorp's common stock trades under the symbol "FMMH."
Tips for winter and your home
"Winter roars in and temperatures begin to drop, snow starts to fall, and the ice begins to form. This can create potential problems and lead to ruined carpets and water damage to your ceilings and walls from leaks caused by ice dams or bursting pipes.
ICE DAMS
An ice dam is an accumulation of ice at the lower edge of a sloped roof, usually at the gutter. When interior heat melts the snow on the roof, the water will run down and refreeze at the roof's edge, where temperatures are much cooler. Eventually, the ice builds up and blocks water from draining off of the roof. This forces the water under the roof covering and into your attic or down the inside walls of your house. Once an ice dam forms, the potential damage can be serious. Taking the following steps now can avoid trouble later:
*Keep the attic well ventilated. The colder the attic, the less melting and refreezing on the roof.
*Keep the attic floors well insulated to minimize the amount of heat rising through the attic from within the house.
*Clean the gutters - remove leaves and other debris from the gutters either by hand, or with a scraping tool, and then give a good rinse with the garden hose so that the rain and melting snow can drain. Clogged drains can form ice dams. As gutters are being cleaned out, look for leaks and make sure the downspouts are carrying water away from the foundation, where it could cause flooding or other water damage.
These steps will help decrease the likelihood that ice dams will form or, at least, reduce their size.
As an extra precaution against roof leaks in case ice dams do form, install a water-repellent membrane under the roof covering. Another suggestion is to speak with your local building office about minimum code requirements for ice dam protection.
Unfortunately, ice dams may be unavoidable if your home has recessed lighting near the roof. Heat generated from these lights melts snow, which then contributes to ice dam buildup. The only sure way to avoid this problem is to eliminate recessed lighting fixtures near the roof.
FREEZING PIPES
Frozen water in pipes can cause water pressure build-up between the ice blockage and the closed faucet at the end of a pipe, which leads to pipes bursting at their weakest point. Pipes in attics, crawl spaces and outside walls are particularly vulnerable to freezing in extremely cold weather, where holes in the home's outside wall for television, cable or telephone lines allow cold air to reach them. To help prevent water in pipes from freezing, take the following steps:
*Fit exposed pipes with insulation sleeves or wrapping to slow the heat transfer. The more insulation the better.
*Seal cracks and holes in outside walls and foundations near water pipes with caulking.
*Keep cabinet doors open during cold spells to allow warm air to circulate around pipes, particularly in the kitchen and bathroom.
*Keep a slow trickle of water flowing through faucets connected to pipes that run through an unheated or unprotected space. Or drain the water system, especially if the house will be unattended during cold periods.
Home Market Value vs. Replacement Cost
In today's economy, it seems like we are receiving more questions regarding replacement cost and market value of homes and what the differences are between these two values. There are many homes that are selling well below their calculated "replacement cost". They would expect to insure their newly purchased $50,000 home for the purchase price, although the actual replacement cost may be much higher. Although the housing market is currently declining, construction costs are actually increasing. The following information will help to explain why this is the case.
Simply stated, market value is the current resale value of a home. There are factors that can affect market value which include:
- Foreclosure rates-How many homes in a particular area have gone through foreclosure in the past year. If there are a large number of foreclosed homes in a neighborhood this could potentially affect the market value of other homes in this same neighborhood.
- Number of new housing starts-How many new homes are being constructed in a particular area. If there are new residential developments being constructed in a particular area this may affect the market value of other homes located close by.
Location-Where a home is located (close to businesses, in a residential neighborhood, in a certain school district, etc.) also plays a factor in the market value of a home.
Market value could potentially be either lower or higher than the calculated replacement cost of a home based on these types of factors.
On the other hand, replacement cost is the cost to rebuild a home at the present time to its pre-loss condition. Some factors that may affect replacement cost include:
- Material costs-The cost of lumber, drywall, asphalt shingles, or other materials thhat are used to construct a home.
- Fuel/energy costs-The cost of fuel and energy costs have been fluctuating over the past year. Generally, gas prices are higher than in the past which can lead to increased costs to operate construction machinery (bulldozers, cranes, etc), increased transportation costs for lumber needed for the project, etc.
- Availability of skilled labor-Experienced contractors usually come with a higher price tag to perform residential construction than less experienced contractors. Many of the less experienced contractors are going out of business. As a result, there is less competition, which also means less competition when it comes to pricing for construction work to be performed.
- Changing construction codes/standards-Building codes and standards are constantly changing. To keep up with the latest changes contractors may be required to pay higher fees for licensing. They need to ensure that the residential construction they are building meets current construction codes and standards for the area they are doing the work.
- Demolition-Tearing down of buildings and other structures. Steps need to be taken before demolition can occur such as obtaining necessary permits, disconnecting utilities, developing site specific safety and work plans, etc.
- Debris removal-Removing debris such as scrap materials (lumber, shingles, drywall/wallboard, asbestos material if used on prior constructed homes, etc.). Special removal procedures may be needed.
- Demand surge-If there was a hurricane that damaged several homes throughout a particular area this would cause the demand for labor and materials to be high and supply low, which would in turn increase material prices. The effect of this increase would not only be felt locally, but internationally as well, since residential construction is a worldwide industry.
Helping You Understand The MCCA
What is the MCCA and why does it exist?
The Michigan Catastrophic Claims Association (MCCA) is a non-profit association established in 1978 by the Michigan Legislature. At present, the MCCA pays for all medical expenses for people with auto-related medical injuries that exceed $375,000 (effective July of 2006). This state mandated law requires the MCCA to assess insurance companies an annual fee on each registered automobile and motorcycle the company insures in Michigan....
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Key Reasons to Increase Auto or Home Liability Insurance Limits
High liability insurance limits are part of smart financial planning. They help to preserve your assets for retirement-if you are ever held financially liable for a serious injury or property damage.
Inflation impacts the cost of medical services and property repairs. For better protection in these inflationary times increase your limits.
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