Napoleon insurer builds new HQ
Although German Mutual Insurance Company is one of Ohio’s oldest insurers, having been established in 1867 - just two years after the conclusion of the American Civil War, the company has never had intentions of become one of the state’s largest. In fact, the Napoleon-based auto, fire, casualty and theft insurer really didn’t start to grow until it was almost 125 years old. Since then, German Mutual has been enjoying steady expansion and, as a result, now has outgrown its offices.
The company - owned by some 19,500 policy holders concentrated in 58 Ohio counties - recently began construction of its new 18,000 square-foot headquarters building at 1000 Westmoreland Drive, near State Route 24 and Napoleon High School. The brick single-story structure, to be distinguished by the steep pitch of a gabled roof with its four large dormers, will be completed early next year.
Designed by The Collaborative Inc. of Toledo and built by Rupp-Rosebrock Inc. of Liberty Center, the new building should meet German Mutual’s space needs well into the third century of its operation.
According to German Mutual President Rupert Knape, the company had operated as an “assessment mutual” company - restricted to providing insurance against fire and windstorm damage to farmers in Northwestern Ohio - for most of its 131 years in operation. As such, state regulations prohibited it from writing auto, theft and liability insurance. In 1985, German Mutual, which began as the German Mutual Insurance Association of Defiance and Henry Counties, converted its status to an ‘advanced premium mutual’ company which permitted it to move into automobile insurance, expand its homeowners and commercial insurance products, and offer a variety of other casualty lines.
In 1987, the company issued its first auto policy and now has almost 8,000 auto policies in force. The company also offers a range of commercial products including fire, theft, liability as well as policies specifically structured for churches.
In the late 1980’s, German Mutual’s office of six employees move from a small “A” frame building into large quarters on Chelsea Avenue but soon was overtaken by crowding at which point even the board room was co-opted for office space. The company, with more than $12 million of polices currently in force, now has a 23-person staff; and the new offices will provide three times the space of the present building. The new building will also house a larger and more sophisticated computer system to support its network of 180 agents.
The building, which will occupy only a portion of a six-acre site, has been designed to accommodate expansion. There are also approximately 14-acres adjoining German Mutual’s new headquarters which may be developed in the future.
Building brands necessity for insurance companies
How do you market to customers who really don’t want your product but need it, especially in a marketplace flooded with competitors? By building a strong brand.
“Insurance has an additional hurdle because it represents one of those services we all must have, but grudgingly pay for,” said Philip Shirley, president and COO of GodwinGroup of Jackson. “With that in mind, a strong, established brand representing the qualities we want can be a critical element in customer decision-making.”
Establishing an identity versus building a brand is “talking the talk” versus “walking the walk,” said Chris Ray, president of The Ramey Agency in Jackson.
“Progressive Insurance … is a company that’s working hard to walk the walk,” said Ray. “And they have a solid brand to show for it.”
Branding is not a mystical, magical concept, said. Eric Hughes, senior vice president and creative director for Maris West & Baker in Jackson.
“It’s the sum of all of the thoughts and feelings and impressions a company generates through its communications with its audience,” he said.
Every company has a brand, said Shirley.
“The question is whether the company manages the brand or allows the marketplace to decide their brand position,” he said.
One reason insurance companies are feeling market pressures to establish strong brands is because consumers know they are king, said Shirley.
“They demand value for their money and don’t just take whatever we offer,” he said. “They are educated. They shop. And customer loyalty is waning dramatically for marginal brands, which often find themselves caught in a downward spiral of promotions and discounts to replace customers who leave them.”
To develop a brand, the Ramey Agency uses a system called Brand Journey, a CDROM based program “that helps us walk through a half-day’s worth of questions and answers with a client group to begin distilling what a company should stand for,” he said. “It can be a grueling process, but we’ve seen it work for companies large and small, organizations, universities and even the Mississippi Band of Choctaw Indians.
“Every agency has its own methodology for establishing a branding program. Ours has worked well for us for the past four years,” he said.
During the brand-planning process, GodwinGroup defines the three C’s: category. competition and customer, said Shirley.
“We call it ‘C3 Intelligence,”‘ he said. “We take a broad look at the category in which the company operates. then we look specifically at the competition. Finally, we look at the customers to determine what motivates them to buy from our category in the first place.”
Maris West & Baker looks at four indicators to determine whether a branding strategy will work, said Hughes.
“One is relevance,” he said. “If your strategy is meaningful to your audience, you’ve probably got a winner, Two. it has to be credible. Three, it also has to be unique, something that nobody else is claiming. Last, it has to be practical. Does it fit your culture? If you get A-pluses in a branding strategy for all four, you can pretty well bank on the fact that it will work in the marketplace.”
When Old Republic Title Insurance Group acquired Mississippi Valley Title, Old Republic made the decision not to change its name, said Peter Marks, senior vice president and account supervisor for Maris West & Baker.
“It comes down to business being done differently in different parts of the country. Mississippi Valley Title operates in the South, where there is a lot of relationship building,” he said. “Their target isn’t necessarily the consumer, but the people who advise the consumer, such as closing, attorneys and bankers who close deals. GodwinGroup stresses deep branding, said Shirley, which simply means carrying the brand identity throughout the organization.
“It impacts how the telephone is answered, signage and every piece of paper that leaves the organization, advertising all the way down to the dress codes in some instances,” he said.
A brand should always include the three P’s: position, personality and promise, said Shirley.
“Building a brand is not a project; it’s the process of climbing ever up a neverending steep incline,” he said. “The view continues to get better if you stay on the path.”
The CEO must be the brand champion, said Shirley.
“Branding has to start at the top, and must be communicated throughout the organization to achieve maximum success in managing this valuable corporate asset,” he said.
If a local insurance agency is part of a strong, national brand, the national brand should be leveraged locally, said Ray.
“Often, national brands will gear their marketing efforts to help local agents translate the brand in each market,” he said. “For example, everybody knows that State Farm is like a good neighbor because the company has invested millions of dollars over the years pounding that message home. The tagline is not just a marketing gimmick, it’s a reflection of the State Farm brand and corporate ethos, which is helping people manage risks and recover from the unexpected. They make it their business to be a good neighbor. They also follow the old maxim, ‘Think globally. Act locally,’ by profiling local agents and their volunteer work and investing dollars into various ‘good neighbor citizenship’ programs. Local agents can leverage in their communities to add continuity to the brand.”
Insuring your camp’s buildings and contents
Buying proper insurance to protect the full value of your camp buildings and contents is fundamental to good risk management. However, many camps overlook this issue and run the risk of being incompletely reimbursed for damages under their insurance policies.
Why is this issue missed by many camp directors in the risk management process? One reason is that most people tend to respond only to the most visible items the ones crying out for attention at any given time. Some of these issues are urgent and important. But sometimes the apparently urgent and important items obscure other equally important issues. Property insurance value is a risk area that doesn’t cry out for attention but that requires attention and diligence.
Inflation is another reason camps often neglect property value. Unless your camp has recently undergone renovation or new construction, you may be unaware of the current costs of labor and material. In addition, camp directors may not understand certain terms or they may be confused about how insurance values are determined.
Actual cash value
Actual cash value is an insurance valuation method that starts with the replacement value of a building or its contents. Then, the insurance company subtracts the item’s depreciation. Deprecation is based upon the item’s age and condition, which can sometimes be complicated to determine. Most older camp buildings are fully depreciated by accounting definitions, but not by insurance definitions. Consequently, even though a building is 50 years old, it may not be depreciated more than 25 or 30 percent.
Factors that reduce depreciation include proper maintenance, renovation, and repair practices. While there is some subjectivity in determining depreciation and actual cash value, detailed records of repair, maintenance, and improvements will help you negotiate successfully on this issue.
Replacement cost valuation
Replacement cost valuation, in contrast, theoretically replaces damaged property with material of like kind and quality, without deduction for depreciation. In essence, it replaces the old with new. Replacement cost settlements are complicated by the fact that some camp buildings are constructed from materials that are no longer available.
Consequences of too little insurance to value
Depending on how your property insurance is set up, you might incur a penalty on a loss if you are caught short on insurance to value. Under these circumstances you might be paid a proportion of your total loss. This amount usually bears a relationship to the amount of insurance you had versus the amount you should have carried.
If you plan to rebuild and have not planned properly to secure full value for your loss, you might be forced to borrow money or spend money you have set aside for other purposes. This situation could have severe financial implications for your business and your future.
Avoiding surprises
What should you do to avoid property insurance valuation surprises?
Obtain estimates
You can obtain estimates of construction costs to replace camp buildings from local building contractors or real estate appraisers. Be cautious if you do use professional appraisers. The commercial appraisal systems generally used today do not have information that translates completely to camp buildings, especially unique buildings. Consequently, estimates of insurable values may be misstated. Valuation estimates prepared through these professional appraisal sources should be checked against common sense and, when available, recent actual replacement cost expenditures. Your insurance company can help you test the accuracy of these estimates.
Insure personal property values
Markel Insurance Company’s claims department consistently finds that camps underestimate the value of their personal property. Resident camps should consider a limit of 25 percent of their real property (buildings) insurance for personal property. Day camps should consider between 15 to 20 percent of their real property limit for contents. Remember, these figures are not absolutes. Consider creating a personal property inventory and ask your suppliers to help develop current values for your personal property. You may be surprised at what you discover.
Buy the right amount of insurance
Buy an appropriate amount of insurance to comply with the provisions of your property insurance policy. Ask your agent to explain the coinsurance clause and its relationship to your total property insurance limit. On subsequent renewals of your property insurance, increase the values slightly to keep pace with inflation, about 4 percent today. Obviously, if you add new buildings or make additions or repairs to existing buildings, you should change your property values. Renovations do not necessarily directly increase the value of your buildings. It is a good idea to ask your contractor for advice about added value from renovation projects. Consult with your insurance agent or consultant, too.
Keep information in a safe place
Keep the square footage, a brief description, and pictures of each building in a safe place. You can also videotape your facilities while describing each building and its content. By preserving evidence of your facilities, you will make it easier to prove your loss if your property is damaged.
Halifax cuts premiums on buildings insurance
Halifax Building Society is cutting the cost of its buildings insurance policies next year by an average of 20 per cent, with some premiums falling by 60 per cent.
But the society’s buildings insurance is still not the cheapest in the market. Direct Line, the telephone insurer owned by Royal Bank of Scotland, beats Halifax in all four areas given by the society as examples of its new lower premiums.
Halifax `s insurance is underwritten by three insurers - Sun Alliance is lead insurer, with General Accident and Legal & General also providing cover. Sun Alliance’s own buildings insurance, available direct to the public, is cheaper than the Halifax version in three of the four examples quoted by the society. For a house in Aberdeen Sun Alliance charges pounds 58.50 compared with Halifax’s new charge of pounds 71.60, which is nearly pounds 20 cheaper than this year’s Halifax premium.
Halifax buildings cover is open only to homeowners with a Halifax mortgage. More than 75 per cent of its borrowers - 1.4 million out of 1.8 million - take the society’s own insurance.
The society, in common with others, used to charge pounds 25 to borrowers who wanted to choose their own insurer. This charge was dropped this year.
Peter Wood, chief executive of Direct Line, said: “This is a desperate attempt by the Halifax to slow the flood of insurance customers abandoning the building societies for the benefit of better value and better service at Direct Line. When the public realises how much the Halifax can afford to cut its home insurance premiums, it must gasp at how much it has been overpaying in the past.”
The building societies earn commission from selling insurance, but can negotiate favourable terms because of the bulk business they pass on to the insurance companies.
The public is becoming more aware of the freedom to buy buildings insurance from any source even though an “administration fee” is still the norm. Societies say they have to check policies from other insurers to ensure that they are adequate.
Halifax is introducing a no claims discount for policies renewed in 1996 following a claim-free year. It has not yet announced details of the scheme.
The society said the proportion of its borrowers taking its own insurance cover had not markedly declined.”We retain the vast majority of our insurers at renewal. This is to make sure that we remain competitive,’ a spokeswoman said.
Halifax has also refined the way it classifies properties by using the first four digits of the postcode rather than first three.
Insurer slashes building cover
Prudential has cut the cost of its buildings insurance cover by up to 29 per cent, down from pounds 180 to pounds 143 for a three-bedroomed semi in Reading. Southampton, now famous as the footballing home of Bruce Grobbelaar, will see its buildings insurance plummet by the same amount. Guildford, once described as having this country’s answer to the Manhattan skyline, has also seen its premiums tumble from pounds 180 to pounds 128, while in Norwich, cover will cost pounds 125 instead of pounds 143.
The Pru’s reductions, announced yesterday, follow the company’s decision to increase the number of postcode ratings areas, allowing it to price more accurately. The cuts also follow a price war that has engulfed the home and contents insurance market for more than 12 months.
Worst Case Scenario: Will Your Home Buildings Insurance Cover You?
Firstly, this is going to cost money. There will inevitably be a serious excess, in other words you will be asked to pay the first part of any claim. The majority of UK policies now impose a £1,000 excess but you can find one for less. It’s best to have some savings put to one side!
Secondly, your claim could take months, if not years to finalize. There is a lengthy set of exclusions. Here is a typical list. If one or more of these apply, you might well be without any help from your insurer. No outside gates, terraces, paths, decks, drives etc. are covered if none of your main buildings or outbuildings are damaged. Subsidence as a result of coastal erosion.
Movement of solid floor slabs unless foundations beneath outside walls are also damaged by the same cause. Settling of newly erected buildings or newly made-up ground settling. On a happier note there are the extras that are included in standard cover. These exceptions provide some accidental damage cover with your standard policy. As owner of the property you are covered for any damage to underground cables and service pipes.
Glass and sanitary fittings. Again you are covered against accidental damage to your bathroom fixtures, built in ceramic hobs in your kitchen and all the fixed glass and glazing in your building. Beware, that there is very likely to be a clause later on into the policy that will clarify what you are allowed to claim for. Every item is treated as an individual item, not as part of a suite. Thus, if your wash basin is accidentally damaged, don’t wait for the company to fork out for a full new bathroom suite!
Alternative Accommodation. This can be a very important benefit if it becomes dangerous or impossible to stay in your home. Your insurer will pay for alternative accommodation. This might be a nearby hotel or maybe the extra costs to friends and family if they can give you a roof over your head. At least one insurer will also pay the boarding costs for any pets if you have to be away from them. Cover might also offer either loss of rent, if you are a landlord, or payment of rent due. There is a limit, a sum insured which is normally around 20% of the total sum insured for your buildings cover.
Incidentally, if you sell your property, the purchaser can enjoy the benefits of the policy up to the completion date provided they have no policy of their own at the time.
WHAT WILL BE PAID - All good policies will offer ‘reinstatement’. In other words they are offering ‘new for old’. The House will be restored with new materials and if the whole structure is beyond economical repair, it will be completely restored using new materials and no contribution from you (except any excess). With some buildings, meeting new regulations might mean increased costs. Not a problem - but it only applies to the damaged part of the building. Demolition, removing debris, having the building shored up etc are all covered as are professional fees such as architects and surveyors, legal costs and fees for estimates, plans etc.
In all instances the insurance companies like to be in control of the situation so if you notice cracks in your home, report it to them immediately. Instructing your own surveyor could end up with them recommending that you prop up your house when it might not be required. You will end up in dispute with the insurance company.
There are countless issues that will arise during a claim involving subsidence. Because of the amount of time that these claims can take, things such as trying to change your insurer, trying to sell your home and so on are all fraught with anguish. It would take a book to clarify them all. One that is worth mentioning is that if you have moved your cover from one insurance company to another, the previous insurers might be called upon to contribute to your claim under the Association of British Insurers Domestic Subsidence Agreement. This is to prevent disputes between insurers as to which insurer pays for what. You should not be affected by any negotiation between the companies.
But what happens should an underground pipe leak and cause movement and thus subsidence? What insured peril should apply and what excess do you have to pay? It is in your interests to prove that the loss should fall under the underground services peril. This way you are not required to pay the imposed excess of a subsidence claim. It is all down to what insurers call the ‘proximate cause’. You need to be able to show that the proximate cause of the damage is the leaking or broken pipe.
UK Buildings Insurance - Some Helpful Information When Dealing With Insurance Claims For Subsidence
Firstly, this is going to cost money. There will inevitably be a serious excess, in other words you will be asked to pay the first part of any claim. The majority of UK policies now impose a £1,000 excess but you can find one for less. It’s best to have some savings put to one side!
Secondly, your claim could take months, if not years to finalize. There is a lengthy set of exclusions. Here is a typical list. If one or more of these apply, you might well be without any help from your insurer. No outside gates, terraces, paths, decks, drives etc. are covered if none of your main buildings or outbuildings are damaged. Subsidence as a result of coastal erosion.
Movement of solid floor slabs unless foundations beneath outside walls are also damaged by the same cause. Settling of newly erected buildings or newly made-up ground settling. On a happier note there are the extras that are included in standard cover. These exceptions provide some accidental damage cover with your standard policy. As owner of the property you are covered for any damage to underground cables and service pipes.
Glass and sanitary fittings. Again you are covered against accidental damage to your bathroom fixtures, built in ceramic hobs in your kitchen and all the fixed glass and glazing in your building. Beware, that there is very likely to be a clause later on into the policy that will clarify what you are allowed to claim for. Every item is treated as an individual item, not as part of a suite. Thus, if your wash basin is accidentally damaged, don’t wait for the company to fork out for a full new bathroom suite!
Alternative Accommodation. This can be a very important benefit if it becomes dangerous or impossible to stay in your home. Your insurer will pay for alternative accommodation. This might be a nearby hotel or maybe the extra costs to friends and family if they can give you a roof over your head. At least one insurer will also pay the boarding costs for any pets if you have to be away from them. Cover might also offer either loss of rent, if you are a landlord, or payment of rent due. There is a limit, a sum insured which is normally around 20% of the total sum insured for your buildings cover.
Incidentally, if you sell your property, the purchaser can enjoy the benefits of the policy up to the completion date provided they have no policy of their own at the time.
WHAT WILL BE PAID - All good policies will offer ‘reinstatement’. In other words they are offering ‘new for old’. The House will be restored with new materials and if the whole structure is beyond economical repair, it will be completely restored using new materials and no contribution from you (except any excess). With some buildings, meeting new regulations might mean increased costs. Not a problem - but it only applies to the damaged part of the building. Demolition, removing debris, having the building shored up etc are all covered as are professional fees such as architects and surveyors, legal costs and fees for estimates, plans etc.
In all instances the insurance companies like to be in control of the situation so if you notice cracks in your home, report it to them immediately. Instructing your own surveyor could end up with them recommending that you prop up your house when it might not be required. You will end up in dispute with the insurance company.
There are countless issues that will arise during a claim involving subsidence. Because of the amount of time that these claims can take, things such as trying to change your insurer, trying to sell your home and so on are all fraught with anguish. It would take a book to clarify them all. One that is worth mentioning is that if you have moved your cover from one insurance company to another, the previous insurers might be called upon to contribute to your claim under the Association of British Insurers Domestic Subsidence Agreement. This is to prevent disputes between insurers as to which insurer pays for what. You should not be affected by any negotiation between the companies.
But what happens should an underground pipe leak and cause movement and thus subsidence? What insured peril should apply and what excess do you have to pay? It is in your interests to prove that the loss should fall under the underground services peril. This way you are not required to pay the imposed excess of a subsidence claim. It is all down to what insurers call the ‘proximate cause’. You need to be able to show that the proximate cause of the damage is the leaking or broken pipe.
Home Insurance Is A Necessary Evil
Homeowner cover is one of those things that we hate every month when we are paying our premiums, but when we have to make a claim, it is a God send. Home insurance, also known as hazard insurance or homeowners insurance is a necessity for everyone in today’s world. Homeowner insurance is a generic term that is commonly broken into 2 separate products, buildings insurance and contents insurance.
Contents Insurance
Contents cover is intended to provide protection against the loss, damage or theft of your personal belongings within the home, as well as accidental damage if it is included on your policy. Many insurance companies will require you to list the items you want to be covered and if you take out a new for old policy, your items will replaced by new products of a similar market value. When you list your valuables it is important that you put an up to date market value against them and not the amount that you paid when you bought them. Otherwise you may be out of pocket by a rather large sum of money. If you buy any valuable items after you have taken out your policy, it pays to advise your insurance company, otherwise they may not be covered in the event of an incident.
Buildings Insurance
Buildings insurance is intended to provide financial protection in the event that the actual building gets damaged through things such as fire, malicious damage, or weather. If you’re a homeowner looking for insurance for your house, try to find a policy that provides unlimited rebuilding costs for your home. This way you do not need to be worried if the costs of raw materials or tradesmen rises without your knowledge. Several insurance companies now offer this as standard. Most homeowner insurance will also cover additional buildings on the property, and will also, provide protection to property owners who may be held liable for any accidents that occur on their property.
The buildings cover side of homeowner insurance also usually provides protection against storm damage, explosion, lightening strikes, theft, escape of water or oil, vandalism and subsidence. Also buildings insurance can cover the cost of living in temporary accommodation while your house is being repaired due to one of the above issues and, if selected, this insurance can pay for repairs to utility pipes on your property. Basically, buildings cover can pay to rebuild your entire home if necessary.
Insurance Online
With the continual advance of the internet, you can now shop for your home insurance online. This allows for major advantages as you can easily compare a number of different providers at ease to ensure you are getting the best possible price, and you can review the terms and conditions easily to ensure you are getting the policy that you want and that will compliment your personal sitaution. Several of the major insurance providers now have user friendly websites that allow you to tailor your policy and will provide you with complete written information about what is, and more importantly what is not covered.
Home insurance is a vital form of protection for homeowners as your home is your single biggest asset. The financial loss involved when something serious happens to your home can be crippling. Make use of the tools that are available to you, like the web to ensure you are getting the best deal and the most value for money. Add up carefully your personal items as you do not want to be paying more than you have too, but you do not want to be under insured if you need to make a claim. As there is a lot of competition in the home insurance market place use this to your advantage and shop around. You can often get the same or more cover for less.
The Importance of Building Insurance
All lenders insist on Buildings Insurance if any property is secured against a loan. If anything adverse happens to the property (like it being burnt down), the same property can be rebuilt from the proceeds of the insurance claim. And if your property is mortgage free and a similar devastation occurs to it, you will still be protected by the insurance policy and will be able to rebuild your property from the proceeds of your claim.
All Buildings Insurances are taken out so as to have a peace of mind against misfortunes that you hope will never occur. This kind of insurance offers protection against structural damages e.g. roofs, walls, floors, ceilings, windows and doors. The causes of structural damages specified in policies are usually by fire, detonation, burglary or attempted burglary, malicious damage /vandalism, natural calamities like lightning, flooding, storms, earthquakes, subsidence and falling trees etc. Also included in the policies are damages on outdoor properties such as gates, fences and railings.
But do be aware that not all policies cover all the above mentioned potential damages and each insurer will have its own exclusion peculiar to that particular policy. Should you require any specific cover which has not been detailed in the policy then you can obtain one by paying an additional premium.
In the unfortunate event of you not being able to reside in your property until it has been deemed safe and secure for you to live in, you will need to ensure that your Buildings Insurance policy covers you for a suitable alternative accommodation while works are being carried out on your property. Also make sure that your policy covers you for any associated architects’ or surveyor’s fees.
Insurer gets some southern exposure
Manhattan-based TitleVest Agency, Inc., a leading provider of title insurance and related real estate services, has announced the opening of its new corporate office, in West Palm Beach, Florida. TitleVest is looking to capitalize on the state’s strong real estate market, which ranked third nationally in population growth in 2004.
“TitleVest is fortunate to be in a position to capitalize on the tremendous real estate market opportunity Florida provides,” says Bill Baron, President of TitleVest.