The rise of modular construction: the pros and cons of modular builds and how to reduce your risk
Modular construction is on the rise, and it’s not just for small-scale builds anymore. In 2016 the first modular skyscraper—made from 930 prefabricated units—opened its doors to residents in Brooklyn, New York. Research suggests the modular construction industry will continue to grow by nearly 6 percent between 2020 and 2025.
Why is modular construction becoming a trend? Contractors cite the perks of a controlled building environment, significant cost savings, and shorter build times. But like any project, prefab construction brings along its own unique challenges. In this article, we’ll take a closer look at the pros and cons of modular construction and share strategies that could help reduce your risk when taking on a modular build.
Four benefits of modular construction
1. It’s fast.
Because the majority of the building happens off site, modular construction is significantly faster than traditional builds. Construction of the modules can happen concurrently to on-site building, which cuts down build times considerably. The factory environment and standardization of the build also mean contractors can take advantage of automation to speed up build time drastically and avoid weather delays or on-site changes that slow down the project. According to McGraw Hill, modular construction cut down build times for 66 percent of building professionals, with nearly 35 percent reporting that they saved more than a month on a single project.
2. It’s more environmentally friendly.
Creating modules in a factory environment cuts down construction site waste significantly because it is more controlled, more automated, and more flexible. Construction companies don’t have to worry about damage to materials from poor air quality or weather. They can even refurbish modules that are damaged or no longer in use. The same research by McGraw Hill shows that 77 percent of contractors reduced waste by switching to modular construction.
3. It’s safer for workers.
Indoor construction environments are typically less hazardous than their traditional, outdoor counterparts—and that’s good news for construction workers. In a factory environment, workspaces can be designed ergonomically to reduce regular wear and tear on the body. The controlled environment means better air quality, access to tools, lighting, and more.
4. It’s cost-effective.
One of the biggest perks of modular construction is cost-effectiveness. With less waste, a more efficient building process, and greater reliance on automation, modular builders save money on materials and labor. And the factory environment reduces the risk of theft and vandalism on project sites, saving even more money and time. McGraw Hill reports that 41 percent of builders lowered their costs by as much as 6 percent by shifting to a modular model.
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By Jim Travers | July 12, 2021, at 12:00 p.m. | US News.com | Bundle Home and Auto Insurance
Insurance bundling simply means buying your home insurance and auto or other coverage from the same company. Bundling insurance policies can have some advantages; most notably, potential savings on your overall insurance costs. It can also simplify your bill paying and record keeping. But bundling doesn’t guarantee savings, and it may not be the right choice for you. We’ll explain why below, along with how bundling works, the advantages and disadvantages, and the potential pitfalls.
What Is Insurance Bundling?
Purchasing more than one insurance policy from the same company is a common practice known as bundling. It can sometimes save customers money compared to buying homeowners and auto or other insurance policies through different companies. More formally known as a multipolicy discount or multiple line discount, insurance companies encourage bundling as a means of saving money on your overall bill. Most insurers advertise savings of between 10% and 25% when bundling two or more policies, compared to what they would charge for each policy individually.
Insurance companies like bundling as a way to generate additional revenue from the same customer. Research has also indicated that customers who bundle policies tend to stay with the same company longer.
If you’re buying your first home, bundling is especially worth considering. It’s also an excellent time to review all your insurance needs and get competitive quotes from several companies, especially if you haven’t reviewed your auto policy or other coverage in a year or more. As your situation changes over time, it’s important to make sure your insurance keeps up.
A good place to start is by seeing if you can get a better rate with your existing insurance company by adding a homeowners policy – just make sure you get competitive quotes from other providers first. You might end up switching to another company with lower overall rates, or you may be able to use a lower quote as a negotiating tool with your current insurance company.
While you’re getting quotes, think about all your insurance needs and consider any changes or updates you want to make to all your policies. The more types of insurance you bundle, the more money you may be able to save. It’s possible that not all insurers will offer all the coverage you need, so focus your search on companies that do.
Bundling insurance has other advantages, like allowing you to track and update your policies through one company website or app. It can also simplify paying your bills.
Finding a company that will give you the best discount will probably require some research, and rates will vary depending on the types of coverage you need, your location, your credit status, your claim history, and other factors. It’s worth doing your own research online, because everyone’s situation is different. Just because a friend or relative gets a good rate with one company doesn’t mean that you will.
Does Bundling Insurance Save Money?
There’s a good chance you will save money by bundling your home insurance with another policy such as your automobile, boat, RV, or life insurance. Your specific savings will vary, depending on where you live, how many policies you bundle, your credit rating, your claim history, and other factors.
Purchases protected: the top bonds in the retail sector
Because of COVID-19, businesses across every industry have pivoted quickly to try to recover their losses and guard against future potential risks. Retail businesses are especially sensitive to seismic shifts in the economy as political factors, consumer trends, and technology are variables that can impact a retailer’s success.
Traditionally, consumers have preferred hands-on experiences such as test-driving vehicles at their local dealership, dining at their favorite restaurant or jumping into a fitting room at a boutique store, but the on-going pandemic has changed that. Although certain businesses have benefited from these changes to consumer behavior, others have struggled — grocers, home improvement stores and wholesaler retailers perform well, while apparel and department stores have wrestled with COVID-imposed restrictions, heavy debt burdens, and compressed margins.
Reducing top bonds risk in retail
As a pivotal piece of the supply chain, a healthy retail sector is good business for everyone — from manufacturers and wholesalers to the end consumer. To help safeguard against risks to the retail space, surety bonds are a valuable way for businesses to build an extra layer of security for themselves. Here are a few of the more common bonds across four key retail sectors: automotive, food and beverage, general merchandise, and online.
Automotive sector top bonds The retail automotive sector is comprised of two types of companies: those that sell auto parts and those that sell new and used vehicles.
Motor vehicle dealer bonds These bonds guarantee that the motor vehicle dealer and/or manufacturer will comply with outlined protections for warranty promises, fraudulent practices and misrepresentation of the motor vehicles dealer.
Game of chance bonds If a dealership or auto parts company runs a promotion or sweepstakes, this type of bond guarantees that any prizes offered are awarded to the winner. It is required in some states, including Florida and New York.
Food and beverage sector The food and beverage sector is comprised of grocers, restaurants, food packaging companies, liquor stores and fast-food companies.
Tax bonds Frequently required by local and federal law, food and beverage retail sellers must post bonds to guarantee they will collect and remit taxes for business activities. Common tax bonds include sales tax, use and consumer tax, alcohol, liquor, and tobacco.
Utility payment bonds Used as an alternative to a traditional cash deposit or Line of Credit (LOC), this bond guarantees timely bill repayment to the utility vendor.
General Merchandise General merchandise is a catch-all term for items that include clothing, apparel, appliances, sporting goods, etc.
Lease bonds A financial guarantee that ensures payments of assessments under a rental agreement. A principal may post this type of bond in lieu of a cash deposit or traditional LOC, freeing up their capital for other uses.
Workers’ compensation on bonds Employers are required by all states to guarantee payment of statutory workers’ compensation benefits to their employees. Companies that elect to self-insure any portion of this risk must post security with the state using a cash deposit, letter of credit or a surety bond. Given their long-term nature, workers’ compensation bonds are typically reserved for very strong credits.
Customs bonds The primary purpose of a customs bond is to ensure payment of import duties and taxes, as well as complying with all regulations governing entry into the U.S. of merchandise from foreign sources.
Online retail Otherwise known as e-commerce, online retail stores are virtual establishments that sell a variety of consumer or business-to-business products over the internet.
Money transfer bonds Required by a business that provides money transfer services or payment instruments, money transmitter bonds guarantee that the principal will follow applicable state rules and regulations of the industry, safeguarding the end consumers well-being.
Collection agency bonds These bonds are required by some states to assure the principal will function according to state collection agency laws and in conformity with the standards issued by the Fair Credit Reporting Act. A business that extends credit card services may be required to post collection agency bonds.
One of the first things a person must consider after purchasing an RV is RV insurance. That said, camper insurance can be a bit confusing and overwhelming. Often, this means an RV owner ends up with insufficient coverage or the wrong type of insurance altogether. This is something that can backfire terribly in the long run.
If you’re feeling overwhelmed by all there is to know about motorhome insurance, know that you are not alone. In fact, there are so many people looking for information on this very topic that we’ve decided to put together a guide to make things as clear-cut as possible.
What is RV Insurance?
We’ll start at the very beginning by talking a bit about what RV insurance is. As you might imagine, motorhome or travel trailer insurance is a lot like auto insurance (or even homeowners insurance) in a lot of ways.
Essentially, this insurance protects you and your RV should something go wrong while you’re out camping, or when the rig is in storage. That said, there are some key differences between RV insurance and auto insurance or homeowners insurance. Most of these involve the items and events that are covered.
Is this Insurance Required?
You may be wondering if you really need camper insurance at all. The answer? It depends.
The owners of motorhomes of all shapes and sizes must, at the very least, hold liability insurance in order to drive their motorhomes legally. Of course, if you have a loan out on your motorhome, you will probably need to carry much more than just liability insurance—and honestly, this is what we recommend anyway.
If you have a towable RV and you own it outright, you are not legally required to hold any kind of travel trailer insurance policy. However, if you are paying off a loan on the trailer, the lender will likely require you to keep a certain level of insurance until the loan is paid off in full.
It’s also important to note that some campgrounds require campers to have insurance on their RVs. If this is the case, they will request to see valid proof of insurance before allowing you to stay.
Even if you don’t have a loan on your trailer and don’t visit campgrounds that require every camper to have insurance, we still highly recommend holding an insurance policy. Depending on the policy you choose, your insurance could protect you should a person be injured by your trailer. It will also protect your investment should something happen to the camper.
Types of RV Insurance
There are many different types of insurance coverage for RVers. There are policies for motorhomes, which usually include the things you might see on a car policy—bodily injury and property damage liability, uninsured motorist, personal injury protection, and so on.
Motorhome policies may be liability only, or they may include collision and comprehensive insurance, so be sure you know what you’re getting before you purchase anything.
Additionally, there is insurance specifically for travel trailers and fifth wheels. These policies can also be full coverage policies or liability only. However, they will not include coverages that involve on-the-road incidents, as these things should be covered by the insurance you carry on your tow vehicle
Finally, we must mention full-time RV insurance. These policies protect those who live in their RVs full-time by covering the possessions in their RV and helping them find a place to stay should their RV be totaled.
As you might’ve guessed, full-time RV insurance is more expensive than typical RV insurance, so you will want to be prepared to pay a pretty penny for such coverage.
Car insurance is necessary to protect you financially when behind the wheel. Whether you just have basic liability insurance or you have full auto coverage, it’s important to ensure that you’re getting the best deal possible. Wondering how to lower car insurance?
Here are 15 strategies for saving on car insurance costs.
KEY TAKEAWAYS
One of the ways to lower car insurance is through a discount bulk rate for insuring several vehicles and drivers at once.
Lower car insurance rates may also be available if you have other insurance policies with the same company.
Maintaining a safe driving record is key to getting lower car insurance rates.
How Much Does Car Insurance Cost?
Car insurance costs are different for every driver, depending on the state they live in, their choice of insurance company, and the type of coverage they have. But when trying to save money on car insurance, it helps to know what the typical driver pays.
On average, the typical person spent $1,190 on car insurance in 2018, based on the latest figures available from the National Association of Insurance Commissioners (NAIC)1. According to the NAIC data, car insurance premiums rose 30% between 2014 and 2018, despite the number of insured vehicles only rising by 7%1.
Data from AAA put the average cost of car insurance for new vehicles in 2020 slightly higher, at $1,202 annually2. The numbers are fairly close together, suggesting that as you budget for a new car purchase you may need to include $100 or so per month for auto insurance.
NOTE
While some things that affect car insurance rates–such as your driving history–are within your control others, costs may also be affected by things like state regulations and state accident rates
.
How to Save on Car Insurance Costs
There are a number of strategies you may use to save on car insurance. Once you know how much is car insurance for you, you can put some or all of these tactics to work.
1. Take Advantage of Multi-Car Discounts
If you obtain a quote from an auto insurance company to insure a single vehicle, you might end up with a higher quote per vehicle than if you inquired about insuring several drivers or vehicles with that company. Insurance companies will offer what amounts to a bulk rate because they want your business. Under some circumstances, they are willing to give you a deal if it means you’ll bring in more of it.
Ask your insurance agent to see if you qualify. Generally speaking, multiple drivers must live at the same residence and be related by blood or by marriage. Two unrelated people may also be able to obtain a discount; however, they usually must jointly own the vehicle.
If one of your drivers is a teen, you can expect to pay more to insure them. However, if your child’s grades are a B average or above or if they rank in the top 20% of the class, you may be able to get a good student discount on the coverage, which generally lasts until your child turns 25. These discounts can range from as little as 1% to as much as 39%, so be sure to show proof to your insurance agent that your teen is a good student.
Incidentally, some companies may also provide an auto insurance discount if you maintain other policies with the firm, such as homeowners insurance. Allstate, for example, offers a 10% car insurance discount and a 25% homeowners insurance discount when you bundle them together, so check to see if such discounts are available and applicable.3
2. Pay Attention on the Road
In other words, be a safe driver. This should go without saying, but in today’s age of increasing in-car distractions, this bears mentioning as much as possible. The more mindful you are, the more accidents or moving violations you’ll be able to avoid—events that raise your insurance rates. Travelers offers safe driver discounts of between 10% and 23%, depending on your driving record.4
For those unaware, points are typically assessed to a driver for moving violations, and more points can lead to higher insurance premiums (all else being equal).
3. Take a Defensive Driving Course
Sometimes insurance companies will provide a discount for those who complete an approved defensive driving course. Drivers may also be able to reduce the number of points they have on their licenses by taking a defensive driving, accident prevention, or other course.
Make sure to ask your agent/insurance company about this discount before you sign up for a class. After all, it’s important that the effort being expended and the cost of the course translates into a big enough insurance savings. It’s also important that the driver sign up for an accredited course. Every state has its own rules about accredited defensive driving courses.
4. Shop Around for Better Car Insurance Rates
If your policy is about to renew and the annual premium has gone up markedly, consider shopping around and obtaining quotes from competing companies. Also, every year or two it probably makes sense to obtain quotes from other companies, just in case there is a lower rate out there.
Remember, cheap doesn’t always mean good, and going with the lower-priced company isn’t always the wisest decision. That’s because the insurer’s creditworthiness should also be considered. After all, what good is a policy if the company doesn’t have the wherewithal to pay an insurance claim?
To run a check on a particular insurer, consider checking out a site that rates the financial strength of insurance companies. The financial strength of your insurance company is important, but what your contract covers is also important, so make sure you understand it. Insure.com’s site bases its insurance company ratings on data assembled by Standard and Poor’s.6
In general, the fewer miles you drive your car per year, the lower your insurance rate is likely to be, so always ask about a company’s mileage thresholds.
How big data drives insurance innovation and better experiences
As advanced technologies continue to fuel disruptive changes in many industries today, insurers are intent on leveraging the benefits of big data, also known as data analytics, to help improve everything from customer service to underwriting.
Here are three areas where the value of data analytics and technology is already fueling insurance innovation and better customer experiences.
AI-based underwriting Artificial intelligence (AI) is accelerating the technology revolution currently underway in insurance. In fact, according to one forecast, the transformative effect of AI and machine learning on the insurance process just can’t be overstated. As AI continues to evolve, the report concludes, it’s likely to shift insurance from the perspective of “detect and repair” to “predict and prevent.” In our connected world of big data and digital devices, for example, insurers already are leveraging usage-based information to better understand customer risks and coverage needs. This predictive data is inspiring new products, more tailored underwriting, and real-time service delivery. Consider a manufacturing facility where information from wearable-equipped employees and fleet telematics is connected to an actuarial database. Using AI algorithms, an insurer could calculate the business’s risk based on employees’ and vehicles’ activities, as well as the probability and severity of potential events. The benefits of a data-driven approach help both customers and insurers by:
Encouraging safety;
Delivering more accurate risk assessments and underwriting;
Helping to reduce claims costs; and
Changing the customer-insurer relationship from reactive to proactive.
The bottom line? When first-hand data informs the insurance situation, the benefits can include better risk identification and underwriting evaluation and more tailored solutions
Proactive policy management via big data automation
Technology is also creating easier access to more reliable data and speedier evaluation of risk.
Liberty Mutual Insurance and its technology partners are harnessing this power of big data to more accurately identify account opportunities and develop proactive coverage solutions for customers. Through its latest relationship with Intellect SEEC, for example, thousands of third-party data sources – like court filings, industry data, and government records, – are analyzed and packaged into actionable information so underwriters can more quickly identify, underwrite, and service potential accounts. The result is a win-win for brokers and customers, providing:
An enhanced ability to understand each potential customer’s insurance service and product needs,
An ongoing window into an account to identify new needs, which can help to customize coverage options and solutions to meet changing risks.
With these deeper insights, Liberty Mutual can more quickly understand current and potential customer needs and create product solutions that help customers better manage their exposures.
Smart contracts powered by blockchain As blockchain technology continues to matu
A high deductible is often a great way to keep your insurance premiums down. However, you shouldn’t set a deductible that is so high that you cannot afford to pay the deductible when you have a claim. I’ve seen people change their collision deductible from a $500 deductible to a $1,000 deductible because money was tight and this allowed them to save about $10 per month on the premium.
Wouldn’t you know it, but not even 2 months later they ended up in an At-Fault accident. Money was tight so they didn’t have that $1,000 to get the vehicle repaired. It took forever to save up that $1,000 so they were down to one vehicle which made it tough getting back and forth to work.
Please make sure you have something in savings for an emergency. Whether it’s a car accident or your furnace breaks down. Emergencies will happen, but if you’re prepared, you can transform that emergency into an inconvenience.
Over the past ten years, healthcare costs have risen steadily each year as treatment and care options have become more sophisticated and advanced. As a result, corporate health insurance buyers are looking for more effective solutions to manage their healthcare spend, which is their biggest cost behind payroll.
For employers who choose to self-fund their health insurance programs, employer stop-loss insurance protects those groups against large or catastrophic claims, as an alternative to traditional group health insurance and benefits plans. The medical stop-loss insurance sector has experienced dramatic growth in recent years as more employers migrate to self-funded health insurance programs, which offer customizable coverage for employees with disciplined cost containment oversight.
Karthik Mohan, vice president of sales & distribution for the medical stop-loss group at Liberty Mutual Insurance, outlines how medical stop-loss insurance can help organizations keep pace with medical inflation.
The value of medical stop-loss insurance for self-funded health insurance programs
Today, approximately 61% of U.S. employers self-fund their health insurance programs, according to the Kaiser Family Foundation’s 2019 Employer Health Benefits Report Annual Survey. Frequently, those same employers purchase medical stop-loss insurance, which is a financial management tool that transfers the liability risk arising from large, unexpected claims, like cancer treatments, new therapies for complex conditions, and organ transplants, to an insurance carrier – sparing the employer from unpredictable, catastrophic medical claim costs that can materially impact an organization’s cash flow and bottom line.
Medical stop loss insurance is typically offered with two types of deductible options:
Specific Stop Loss, or “Spec” deductible, for individual stop loss insurance. Coverage protects the self-insured employer in the event of a severe or significantly costly claim for an individual member of the group plan receiving the care, such as a rare cancer condition, new drug treatment or gene and cell therapies
Aggregate Stop Loss, or “Agg” deductible, for group claims. Coverage protects the self-insured employer that experiences medical claims under the group plan that exceed the cap placed on the policy term for the coverage.
Under these programs, the stop loss insurance carrier reimburses the employer for healthcare financial losses above the contractual policy deductible limit.
Whether you’re grilling out, gardening or splashing in the pool, your backyard is a space to relax, run around and spend quality time with the people you care about. If anything were to happen to it, you would want to be in a position to get your yard back in shape. Insurance for the backyard is important.
You know your home insurance policy covers your house, but what about your backyard? Items like a shed, swing set, pool, or even a few trees can affect how much coverage you need to recover from a loss. While your independent agent can determine the best coverage for your situation, here’s what coverage is needed for common backyard items.
Shed
A standard homeowners’ policy contains many different coverages in addition to the portion that protects your house. Your shed is protected as another structure on your property. Items protected under “other structures” also include detached garages, driveways, and fences.
Grills, tools and other equipment
Most grills, lawn equipment, and other items in your backyard are covered under the personal belongings portion of your policy. However, if you have a particularly pricey item, your standard policy may not contain enough coverage to replace everything after a loss.
One option is to raise your coverage limits. Keep in mind that there’s a cap on how much your insurance will cover for each item, as well as for the entire loss. Alternatively, you can add endorsements to cover specific, high-value items. It may increase your premium, but you will be covered for more kinds of losses and your policy deductible doesn’t apply. This means that you could replace expensive equipment at no additional cost.
Backyard Pool
When protecting your pool, your coverage depends on if you have an in-ground or above-ground pool. In-ground pools are considered a structure, but above-ground pools are considered personal property. Either way, both are protected to a degree with a standard homeowners’ policy. Be sure to talk with your agent about insuring your backyard and adding coverage to ensure that your pool is fully protected.
In addition, owning a pool increases your chance of having an accident. You may need to increase your liability limits or add an umbrella policy, which helps cover costs once you’ve surpassed policy limits. Make sure you also take preventative safety measures, like installing a fence around your pool and never leaving children unattended.
Landscaping and trees
If caused by a covered loss, like fire, vandalism, or lightning, your homeowners’ insurance will cover damage to landscaping and trees. Similar to your lawn equipment, the amount your insurance company will contribute to your loss is capped – and even more so by the individual item.
Trampolines and playsets in the backyard
Backyard playthings are covered under your personal property coverage. If destroyed by a covered loss, your standard policy should cover your trampoline, swing set, and more, all part of insurance for your backyard.
Remember, while a trampoline or playset can be a fun addition to your yard, these items put you at a higher risk of an accident. Increase liability limits or add an umbrella policy to help cover you if someone is injured while playing on your property.
Be sure to discuss your backyard with your agent. If you fail to disclose that you have items like a pool or a trampoline, a future claim could be denied. Withholding information on your home also puts you at risk for your policy to be canceled entirely. So be sure to discuss the items in your backyard with your insurance agent and they will help you get the right coverage at the right price for you. Contact Shield Insurance and make sure your yard is properly insured today.
This article is for informational and suggestion purposes only. If insurance policy coverage descriptions in this article conflict with the language in the policy, the language in the policy applies. To learn more about home insurance coverage, speak with your Shield Insurance Today!
