There are a number of independent research and public safety organizations and governmental regulatory bodies with jurisdiction over inspection, testing, remediation, and compliance certification for commercial and residential real estate. From the International Code Council (ICC) and Occupational Safety and Health Administration (OSHA), to the National Fire Protection Association, building codes covering materials and installations, testing schedules, and mitigation measures are studied and best practices codified, serving as the basis and minimum requirements used in most areas of the country. Local, regional, state, and federal government agencies weigh in on any number of safety measures designed to keep people safe, with varying degrees of enhanced overlays on the established minimum requirements laid out by the independent research and public safety organizations. Be sure to check on specific requirements based on location.

To assist our insurance agent/broker clients in educating their current or potential policyholders, Novita has created a printable/downloadable Inspection Hazard infographic that overviews critical areas where compliance can lead to better public safety and help them in navigating the insurance submission process to a successful outcome.

For more information, contact Novita Insurance Solutions, LLC. Your clients depend on you. You can depend on us.

GETTING AHEAD OF THE GAME

Earlier in this new year we’ve looked at divergent forecasts for the Commercial Property insurance market ranging from the California Surplus Line Association to leading insurance brokerage data and commentary (Insurance Journal). While the landscape varies in terms of rate increases, everything we’ve seen thus far points to a higher degree of difficulty this year for brokers and agents looking to cover “challenged occupancies,” with markets placing the blame for rate accelerations on 2021s overall “extreme loss patterns.”

A review of various forecasts all point to the same conclusion – prioritizing risk improvement is key. This is particularly important for property owners in high risk areas prone to natural catastrophes such as the designated wildfire and Wildland-Urban interface (aka “WUI” or “Woo-Eee” – the zone of transition between wilderness and land developed by human activity; an area where a built environment meets or intermingles with a natural environment; check this link for an interactive California ESRI ArcGIS WUI), wind, hail, and tornadoes.

Our last blog entry on Novita’s Learning Center delved in to how brokers and agents can work to position their clients – new submissions or renewals – to respond to proactively to a 2022 market under pressure.

2022 “FOUR STEP” PROGRAM FOR BROKERS AND AGENTS

1. Gain – and maintain – a position as trusted source/resource for your clients. Brokers and agents have a unique relationship as a valued protector of a client’s assets. Providing advice and counsel to clients in the evolving world of risk management and mitigation is key to helping clients manage coverage and cost. Establishing and maintaining a collaboration culture with clients based on effective communication helps brokers and agents better market a specific risk, while also managing client expectations.
2. Dig into current coverage; assess whether the client is properly covered. Underwriting criteria changes as risk appetite rises and falls. What may have worked in the past may not be the answer in the present, and even less so in the future.
3. Review client programs. Insurance Industry studies show some 75 percent of commercial buildings are underinsured. Insurers need accurate assessments of replacement costs in case of an event. The estimate can help improve achieving premiums appropriate to a client’s risk, better quantify exposure, and help educate and inform clients on adequate policy limits.
4. Increase the use of data and analytics when preparing new submissions and renewals. Using hard data and analytics helps form the narrative and tells a more complete story of a property to an underwriter as underwriting guidelines and criterion become more complex.

At Novita Insurance Solutions, LLC, we work closely with our agent/broker partners to vet, develop effective risk management and mitigation strategies, and communicate information needed to secure coverages. Contact us and let us assist you in keeping on track and successfully getting across the finish line in 2022. We got this!

We’re getting ready to ring in 2022 here Novita Insurance Solutions, LLC and that means a bowl of Black Eyed Peas. Southern U.S. tradition holds that eating black eyed peas on New Year’s day brings luck and good fortune, and black eyed peas are seen as symbolic stand-ins for coins and financial prosperity. From all of us at Novita, wishing you and yours a very Happy New Year! We’re sharing our secret recipe … let’s all make 2022 a year of “unprecedented” goodness!

Downloadable recipe below.

Today we’re sharing our favorite recipe for Rolled & Decorated Christmas Cutout Cookies. Easy to make; wonderful to share. Memories made with ingredients we usually have on hand – pantry items, inspiration, laughter, gratitude – and given away with joy and goodwill toward others. Downloadable recipes below.

COOKIE DOUGH RECIPE

Ingredients

• 3/4 cup butter, softened
• 1 cup sugar
• 2 large eggs, room temperature
• 1 teaspoon vanilla extract
• 2-3/4 cups all-purpose flour
• 1 teaspoon baking powder
• 1/2 teaspoon salt

Directions

In a large mixing bowl, cream butter and sugar until light and fluffy. Add eggs and vanilla; mix well.

In a separate bowl, combine flour, baking powder and salt; gradually add to creamed mixture and mix well.

Chill until firm, 1 hour minimum; better still, overnight. (Chilling this dough is important – it allows butter fats to solidify, making them full-bodied and chewy. Don’t skip this!)

After chilling, roll out dough to 1/4-in thickness on a lightly floured surface. Cut out shapes with your favorite Christmas cookie cutters. Using a floured spatula or nimble, well-floured fingers, transfer cookies to greased baking sheets. Bake in preheated 375° oven until lightly browned, 8-10 minutes. Cool completely on wire racks before decorating.

Yield: 48-60 cookies (depending on size of cutters used).

ROYAL ICING RECIPE

Royal icing is a sweet, hard icing perfect for decorating sugar cookies or gingerbread houses and takes your cookie creations “next level.” Three ingredients, food coloring optional, perfect for “outlining” or “flooding” (full coverage iced) cookies, it’ll make your cookies look like they came straight from the bakery. Royal icing will finish a cookie as intricately or simply as you’d like. They dry shiny and look fantastic!

Ingredients

• 3 egg whites
• 1 pound confectioners’ sugar (450g)
• 1 teaspoon vanilla extract

Directions

In the bowl of a stand mixer or large mixing bowl, beat egg whites on medium-low speed until frothy, about 1 minute.

In a large mixing bowl, cream butter and sugar until light and fluffy. Add eggs and vanilla; mix well.

Once fully incorporated, increase speed to medium-high and beat until stiff shiny peaks form.

Divide icing among small bowls, and dye with gel food coloring if desired. (Keep any icing not being immediately used covered with plastic wrap; it dries out quickly.) Transfer to piping bags and decorate cookies.

Notes: When using royal icing to decorate cookies, pipe icing first, then flood it. “Outlining” means piping a thin outline of the cookie with thicker icing; “flooding” means filling the middle with thinner icing. Piping an outline first keeps icing from sliding off cookies.

Really, what could possibly go wrong?

Each unit may have a separate heating system, or there may be a boiler to provide heat to all units. All systems must be properly maintained on an ongoing basis. Other property concerns are age, condition, and repair of the building; the size, and configuration of the building including the roof expansion; and the condition and structure of the roof.

Other factors impacting property exposure is unique architecture or design where valuation may be a concern; and the underlying risk associated with shopping centers as attractive soft-targets for terrorism.

Premises liability exposure is often high to very high due to the number of visitors to the premises, with special events posing additional concerns due to crowds. The owner may be responsible for maintaining the building, parking lots, and sidewalks, or they may transfer these responsibilities by contract to a primary tenant. Tenants are normally responsible for the condition of the area they control.

All premises must be well maintained with aisle ways free of debris, flooring in good condition, with no frayed or worn carpeting, and no cracks or holes in flooring. The number of exits must be sufficient and well marked, with backup lighting in case of power failure. Steps should have handrails, be well-lighted, marked, and in good repair. Parking lots, parking garages, and sidewalks need to be in good repair, with snow and ice removed, and generally level and free of exposure to slips, trips, and falls.

Security of visitors through the shopping center, including parking lots, is the responsibility of the owner or operator of the premises. There should be frequent security patrols. Should an emergency situation arise, there should be evacuation plans in place to quickly move tenants and visitors to a safe area. If security personnel are employed, procedures must be established as to appropriate response to their assigned duties. Additional exposure is presented if the security personnel carry firearms. Contractual relationships should be reviewed, and certificates of insurance obtained from tenants, vendors, and subcontractors. Additional insured status should be considered.

Contact us for additional information and to obtain a quote.

Covered properties include:

• Builder’s Risk
• Condo Rentals
• Risks Under Renovation;
• Rental Dwellings with 1-4 Family Units
• Short Term Vacation Rentals
• Vacant Dwellings

Optional Coverages include Business Personal Property; Loss of Rents; Swimming Pool Liability; Vacant Land Liability; and Water Back-Up.

Contact us and we’ll put together a custom Investor Property Program for your clients.