Contractor Insurance: State of the Housing Industry 2012

Posted on February 9, 2012 by AdvantageGroup

Kick your kids out. They don’t want to live with you, and you’re causing the housing market to suffer. Once a year thousands of housing industry professionals meet in Florida for the International Builders’ Convention and one keynote speaker is the speech that everyone wants to here.

One of the biggest attractions for the International Builders’ Convention is NAHB’s Chief Economist, David Crowe. As this is a sensitive topic, economists chose their words wisely. After missing last year’s prediction, Crowe, joined with two other economists gave their cautiously optimistic prediction of 2012 being the housing boom year for single-family starts. This 16% improvement is related to key economic performance factors, such as: GDP growth, unemployment rate, private-sector job-creation, and consumer sentiment.

Mr. Nothaft, of government-sponsored mortgage giant Freddie Mac opened his speech pointing out the affordability. “If I put this affordability into a model, I would have home sales through the roof! But as we know, they’re not through the roof,” he said. The main reason this is the serious “headwinds” facing the industry, including an elapsed consumer confidence, and a high jobless rate. The good news, though, is that “in the first half of 2012 we’ll see a lot of the [unsold] inventory bottom out.”

Mr. Berson, of PMI Group, also focused on household formation as a key number to watch in 2012. He predicted an average of about 1.1 to 1.2 million housing starts per year over the next 10 years — which would be close to what economists consider a “healthy” level of construction — minimal growth in second and vacation homes, and a strong household growth in the South, Great Plains and Rocky Mountain states. He cited numbers showing that between 2007 and 2011, the number of households that are “doubled up,” or have grown children or other potential household heads living with their relatives in the same house, grew from 20 million to 22 million. About 6 million of these housemates are young adults aged 25-34 living with their parents.

With great predictions in the future, Advantage Insurance understands the risks you take as a contractor or builder. Over the years, we’ve worked with many Maryland contracting firms in their quest for strong construction or contractor insurance. That experience and an unwavering dedication to quality service has greatly enhanced our knowledge of the construction industry and our product offering.
Personalized recommendations, customized coverages.

Advantage Group Insurance can offer you coverage plans that meet your needs, no matter the size of your firm, at extremely competitive rates. Let us know your needs, and our knowledgeable, highly trained insurance professionals will help you get exactly what you want…at a price you can afford.

Call us today! 1(800)826-2663

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Business Insurance: 5 Tips to Fund Your Start Up

Posted on January 25, 2012 by AdvantageGroup

Like life, there is always a starting point. Small business is what creates competition, diversifies products, and influences price. Over the past 15 years, small business generated 64% of new jobs according to the U.S. Small Business Administration. As a result of outsourcing, Americans have seen that we are sending jobs overseas for products that we know how to develop, but we cannot prosper without product & service innovation. This is why America believes in small business. While business solutions help with the mechanics of getting the business on track, obtaining funds might be the hardest part of starting your business. Here are a few options to fiscally supply for your business.

1. Self-funding

Essentially, funding your own business might take you longer to get your business up and running, but self-funding gives you freedom and flexibility. As most entrepreneurs know, getting people to believe in your product while providing potential partners with a 20-page business plan will be harder to sell then to your own customers.

2. Scavenge

No one likes cutting back their budget. Budgeting is one of the most effective ways to lower your startup cost. Most businesses take on a financial burden with consultants, prime office space, purchasing new equipment, etc. Buy used, ask friends for advice and barter / haggle.

3. Credit card

Credit cards are a common form of capital to fund your business. Famous businesses such as Google have funded their dream with a plastic card. There are always pros and cons to plastic, but depending on how well your business develops it can be a smart move. The biggest pro to using credit cards is availability. By using Credit cards, funding comes in larger amounts and fast. However, using credit cards can be risky. Depending on well your business performs you can either easily pay off your debt or file for bankruptcy.

4. Kickstarter

Kickstarter is a new way to easily fund capital to build your business. Kickstarter is a basically a funding platform focused on a broad spectrum of creative projects. Two common values form this company’s idea:

• A good idea, communicated well, can spread fast and wide.

• A large group of people can be a tremendous source of money and encouragement.

Kickstarter is powered by a unique all-or-nothing funding method where projects must be fully-funded or no money changes hands.

5. Insurance         

Changing your insurance provider can change the whole way you do business. Advantage Group specializes in Business insurance for Contractors Insurance, Distributors, Wholesalers, Retailers, Dump Truck Insurance, Rental/Investment Property, Employee Benefits, Workers Compensation, Manufacturing, Processing & Recycling. Advantage Group has the breadth and depth of expertise to understand your needs and personalize a program that is suitable for your business and allows you to get the most for your insurance dollar.

Give Advantage Group a call today! 800.826.2663

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Homeowners Insurance: 5 Tips to lower your Maryland Homeowners Insurance Policy

Posted on January 10, 2012 by AdvantageGroup

5 Tips to lower your Homeowners Insurance Maryland Tip 1) Maintain a Security System and Smoke Alarms: Did you know that (38%) of all home fire deaths resulted from fires in homes with no smoke alarms, while one-quarter (24%) resulted from fires in homes in which smoke alarms were present but did not operate? You would think that smoke detectors are a no-brainer, but you’re wrong. Even Security systems have built in fire & carbon monoxide alarms. By having both an smoke alarm and a security system you can lower you insurance as much as 5%

Tip 2) Raise Your Deductible: If you are in a pinch for money, than cutting your insurance is the worst thing you could ever chance. Another option is to lower your annual premium is to raise your deductible. By increasing your deductible you will still be covered and cut some of your costs. If you do choose this route, be sure to think it through before submitting a claim. In most cases broken pipes & cracked windows will be as much or less than the deductible itself.

Tip 3) Look for Multiple Policy Discounts: Bundling your policies is one of the most common ways to save money on your homeowners insurance. On average, customers can save as much as 10% off their total bill. You may end up saving on two annual policy premiums.

Tip 4) Plan Ahead for Construction: If the homeowner plans to build an addition to the home or another structure adjacent to the home, he or she should consider the materials that will be used. Typically, wood-framed structures, which are highly flammable, will cost more to insure. Other materials, such as Cement or steel-framed structures will cost less because it is less likely to succumb to fire or adverse weather conditions.

Thinking about installing a swimming pool in your back yard? You may want to think twice about that. In fact, items such as pools and/or other potentially injurious devices (like trampolines) can drive annual homeowners’ insurance costs up by 10% or more. This may seem like a small price to pay given the joy these items bring, but it is still something that should be considered by the homeowner prior to purchase or construction.

Tip 5) Pay Off Your Mortgage: When homeowners that pay off their mortgage debts, they will most likely see their premiums drop. The simple reason for this is that the insurance company figures that if you own the home, you’ll take better care of it.

 

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Flood Insurance: Hurricane Irene Damages Rise to $4.3 Billion

Posted on December 19, 2011 by AdvantageGroup

The latest estimates of catastrophic losses from Augusts’ Hurricane Irene project total property damage at $4.3 billion, with the worst damage in New Jersey and North Carolina. Property Claims Services increased its estimate by 18% since its first tally in September, according to published reports. The hurricane was the first to hit the U.S. coastline in three years.

The reported damage from Hurricane Irene that happened over August of this year has accumulated to the total of $4.3 Billion dollars. With the worst damaged areas coming out of New Jersey and North Carolina. The Property Claims Services (PCS) increased their estimate 18% from their last report in September of this year.

The PCS (Property Claims Services) have received reports from South Carolina to New England with about 855,000 insurance claims each one averaging about $5000. The reported damage for New Jersey is around $915 million in losses and the second highest reported damage was North Carolina at $900 million.

Maryland is not far behind with a reported $5 million in damages. This places them in top 5 states that were affected by the hurricane. Additionally, Worcester County, MD was among one of the most affected counties by the hurricane totally their own county damage of $150 million.

We have not seen this kind of damage in the last three years to our eastern coastline, however Mother Nature does get upset and natural disasters do occur. There really is nothing we can do to prevent the epidemic from happening but we can do is secure of well being and our property.

Whether you own a business, home or apartment, the most important thing is protecting your assets with the proper insurance coverage. Advantage Group provides Personal Insurance & Business Insurance for Maryland residents.

Advantage Group Insurance, a call away!

800.826.2663

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Surety Bonds: Maryland, Advantage Has You Covered

Posted on December 15, 2011 by AdvantageGroup

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Surety Bonds: What are Surety Bonds & Why Do I Need It?

Posted on December 5, 2011 by AdvantageGroup

What is a Surety Bond?

A surety bond is a promise to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract. The surety bond protects the obligee against losses resulting from the principal’s failure to meet the obligation. Bond issuers purchase insurance to raise their credit rating to as high as Standard & Poor’s ‘AAA’ so that their interest rates will decrease.

Who gets Surety Bonds?

The employee or company who would get bond are the ones performing and responsible for the project (ex. Contractor’s Construction Company).

Why Do We Need Surety Bonds?

There are several reasons why purchasing bond insurance is a great idea, although the most obvious reason may be because it’s required by your client. It’s extremely common since it protects the client.

If a job is not completed correctly or for whatever reason, the company that was responsible for the work may default on the project, in which the bond insurer will limit the financials risks to the client or the one receiving work.

The client would call on the bond insurer to complete or provide compensation for the uncompleted project.

Are There Problems With Bonds?

Occasionally, a claim may be denied compensation or funding to a project that was not complete. Bonds only cover specified events, if an event happens that was not stated or specified, the bonding insurer can decline to pay.

Ways to avoid this is during the writing of the bond insurance by making sure all future events that could occur are covered. (Job runs out of money, defaults, strike, etc.)

Types of Bonds:

  • Bid bonds
  • Contract bonds
  • Performance bonds
  • Payment Bonds
  • SBA bond program
  • Maintenance bonds
  • MVA dealer bonds
  • Mortgage broker bonds
  • License/Permit bonds
  • Union/Welfare bonds
  • Medicare bonds
  • Site improvement bonds
  • Developer bonds
  • Subdivision bonds
  • Supply bonds
  • Environmental surety bonds
  • Fidelity bonds

 

How to Get Bonds:

Advantage Group is Maryland’s premiere insurance agency that works with Bond Insurance. We have agents available to answer questions and write coverage for jobs that require bond insurance. Get Maryland Surety Bond Insurance and conduct your business worry free with Advantage Contractors Insurance. Give Advantage a call at 800.826.2663.

 

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Homeowners Insurance: Top 5 Reasons Why Homeowners Insurance Isn’t Such a Bad Idea

Posted on November 22, 2011 by AdvantageGroup

Protects From Financial Disaster
Flood, tornado, theft or fire damages can leave your home in rubble. Homeowners insurance policy can help cover the repair or replacement costs of your home in the midst of destruction.  After you pay your deductible, your insurance will help you to restore your life back to some semblance of normal with your home and family life.

Gives You Added Security
A home is a huge investment and disasters that occur due to natural events just cannot be avoided for the most part.  Having that added security of homeowner’s insurance will allow you to not be so stressed when you are faced with a disaster, because you know that you will be able to take care of any repairs or replacement that has to occur.  While no one wants their home to be damaged, having insurance can take away some of the stress and worry.

Homeowner’s Insurance is Largely Affordable
Insurance is known as being very expensive, but homeowner’s insurance can be very budget-friendly.  While health insurance can run you into the thousands of dollars each year, a homeowner’s policy will cost you less than a thousand dollars a year for a three bedroom, two bath home.  There is really no excuse for you to not carry homeowner’s insurance, simply because it is so affordable.  If you want to take care of what you have, homeowner’s insurance can be just the thing.

Easy to Get
While some types of insurance are difficult to get, homeowner’s insurance is not that way.  As long as you own a home, you are going to find someone willing to help you insure that home, whether through your mortgage company or not.  It will be a necessity for you to have insurance if you are financing your home, so if you are unsure of which insurance company to go with, ask your mortgage lender who they recommend in your area.

Liability Coverage Can Be Essential
Another great benefit to homeowner’s insurance is that it can also cover your liability if someone is injured on your property.  In addition, you can be covered if you injure someone else or their property with your own homeowner’s insurance.  This can go a long way to helping to keep you protected in this lawsuit happy society that we all live in these days.

For More Information on how to keep your home covered. Give Advantage a call. Advantage Specializes in Homeowners Insurance as well as other Personal & Business Insurance lines in Maryland. Fill out the Quick Quote Form or Give us a call today at 800.826.2663.

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Contractors Insurance: What Is Contractors Insurance and Why Do I Need It?

Posted on November 8, 2011 by AdvantageGroup

We’ve worked with many Maryland contracting firms for many years in their quest for strong contractor or construction insurance. That experience has greatly enhanced our knowledge of the construction industry and its insurance needs.

 

Because we understand your unique insurance needs and bonding issues, our services feature:

  • Same Day Service on certificate delivery (by email or “snail mail”)
  • Contract review to ensure you’re covered for insurance requirements
  • Very competitive rates
  • Experienced construction-savvy staff at all levels throughout our agency

But what is Contractors Insurance?

Contractor’s insurance is a specific type of insurance for contractors. Contractors are at risk from liability to anyone who sets foot on your client’s property. There are many ways in which contractors can be held accountable for actions they themselves did not commit. As a contractor, you assume responsibility as soon as you sign a contract for a job. Contractor’s insurance can prove invaluable in the case of an accident and save your business from expensive lawsuits.

There are several types of insurance that falls under contractors insurance. This includes general liability, workers compensation, bonds and commercial vehicle insurance. Each contractor will have their own specific needs for insurance, so get a personalized quote. The best way to find out what the best contractor’s insurance policy is for you is to talk to your insurance representative.

Why should I have Contractors Insurance?

While contractors may think that insurance doesn’t matter, it really does. The contractor could easily lose their business just by one accident. Accidents are not preventable, but preparing your business will put you in the right state.

Before you begin your next job as a contractor, make sure your contractor’s insurance is current. Ensure that your business is backed by a secure insurance policy that will protect you and your business. Get contractors insurance and conduct your business worry free with Advantage Contractors Insurance. Give Advantage a call at 800.826.2663.

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Posted in Construction and Maryland Surety Bond, Contractors Insurance | Tagged | 1 Comment

The Walking Advantage: Baltimore’s Breast Cancer Walk

Posted on October 31, 2011 by AdvantageGroup

This past month, Maryland residents led a march against breast cancer at Baltimore’s Breast Cancer Walk. With this year’s walk bringing over 7,000 supporters, this walk has set a new participation record from years past.

Accompanying the high attendance rate, fundraising has also greatly increased to over $500,000. When this walk started 10 years ago, this number was unimaginable.  Now Baltimore and other major cities are participating in the movement. They continue to receive nationwide support and their pink is worn with pride.

From survivors to loved ones lost, all participants felt emotionally connected to the cause. Some of these survivors have battled breast cancer for their whole life and some have been recently been diagnosed and need the support now more than ever. As there also was a large amount of cancer survivors attending the walk, giving advice and reassuring that support is here.

The theme of this year’s walk was hope. Cancer Research has been one of the biggest charity donations in the last few years. All we need now is time, money, and support to discover a cure.

The goal of the walk was to create a world with less breast cancer and more birthdays. Something all of the 7,000 participants agreed upon.

The walk is not only good for fundraising research for breast cancer, but it works as a support system. The phrase ‘you never know when breast cancer will affect you and your family’ has repeatedly been stated. The moment when you are diagnosed with Breast Cancer can be the hardest words you may ever have to here, but  with a support group of over 7,000, (Just in Maryland) it makes the fight feel less one sided.

The American Cancer Society has granted more than $4 million to Maryland hospitals researching a cure for breast cancer. This amount will only continue to grow with the demonstrated amount of participation and advocates towards the cause.

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Homeowners Insurance: Tips & Tricks to Buying a Home

Posted on October 17, 2011 by AdvantageGroup

Whether you are in the market for a house or looking to sell in the Baltimore, Maryland area, we suggest some cost saving ideas and advice to avoid a potentially bad investment.

Recently a study was done showing that 32% of all of the nation’s real estate is selling below the original cost of the property. Baltimore shares a similar number. One in four homes never receive a profit after the sale.  The majority of these real estate adventures are returning 50% less than the original purchase price.

  Example: Home purchased in 2002 for $800,000; sold today’s market $395,000 closing

So if you are in the market for purchasing a home or slice of real estate, there are still some things to consider before making the purchase.

1.       You do not have to buy a foreclosed home to get the best deal. Even though the nation is near an all time high in foreclosure sales, this does not mean you will not be investing in a ‘money pit.’ Sales have dropped 4% in the last year on selling and market price. Ultimately this means you can save money with purchasing a home that someone is looking to get rid of immediately instead of foreclosed homes that may have damage and repairs needed.

2.       Gage the environment around you. Since the recession the nation has began to notice the creation of the modern day ‘ghost towns.’ These towns are filled with small to big business that have been moved or went out of business and left town only leaving the abandoned building. By avoiding ghost towns you are able to save yourself with futuristic returns. Any home that you are looking into consider these facts: 

         i.      Schools- if there is a surplus of schools in the area from public to private with students to fill the seats in ratio to staff is a good sign. This means that the area is prospering and families feel it is safe and good place to live.  

         ii.      Big Businesses- Big businesses use statistical information for placing their sites. Based on several factors like income in an area and population, businesses are able to assemble a close forecast for sales. This means if there are big businesses in an area then they see the opportunity of growth and so should the residents.

         iii.      Neighborhoods- Do the surrounding neighborhoods seem to have houses being built or renovated? Or do they have for sale/for lease signs out? The difference between the two determines the how profitable an area can be. If a whole block has for sale signs with residents already probably says something about the property tax in the area. Even though you can afford the payments are you living month-to-month after paying tax and utilities?

3.       Negotiate/Re-negotiate utilities and requirements- It is not hidden that the nation as a whole is economically suffering. This means every business needs more business, no matter how big they are. Re-negotiating and comparing quotes can save money for consumers. You are able to save in small areas like TV bill, cell phone bill, and even with price match programs at superstores. Larger savings have been found when comparing insurance quotes for areas like car insurance, home insurance, and health insurance. Taking several minutes out of your day could save you several hundred dollars annually.

In the end, property value is your friend. Even though it increases your taxes, it ultimately gives you a higher return on your asset of property. So instead of taking a huge financial loss on the sale of property, look where you can save money to balance the difference until the economy recovers. If you are looking into buying a home or investing in property, it would be ignorant to avoid these cost saving tactics.

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