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A New Drone Regulation!

A New Drone Regulation!

Every once in a while, I read something that takes me by surprise and causes me to have an “Aha!” moment! Such was the case in a recent Insurance Journal article I thought you’d find entertaining and may give you an “Aha!” of your own. New Jersey has become the first state in the country to propose a new regulation on drone operation. Specifically, the proposed bill makes it illegal to operate a drone while intoxicated or high! Assemblywoman Annette Quijano, the sponsor of the bill, believes prohibiting inebriated drone operation could prevent dangerous situations such as near collisions with aircraft and interference with fire-control operations. The bill also establishes penalties for using a drone to hunt or endanger people and property, as well as interfering with correctional institutions and emergency personnel. The blood alcohol level of 0.08 makes you too drunk to fly a drone. Part of the inspiration for Quijano’s proposed bill was an event in 2015. An intoxicated National Geospatial-Intelligence Agency employee accidentally flew a two foot by two foot DGI Phantom drone onto the White House grounds without the Secret Service spotting it. I’m sure the NGIA employee had a fascinating conversation with the Secret Service. There haven’t been a huge number of number of drone accidents in spite of the exponential growth in the number of drones each year. Yet, as the number of drones mushrooms, so does the likelihood of a dangerous accident occurring. I expect similar legislation to become more commonplace across most states. Interestingly, no insurance companies commented on the story. I believe coverage for crashing a drone onto your neighbor’s property could potentially fall under personal liability section of your home, condo, or renter’s insurance policy. Or there may be an optional liability coverage which specifically addresses drone operation. It will be fascinating to see what happens with future legislation and insurance coverage. What do you think? Share your comments, suggestions, and experiences with me on my Facebook, Google +, and LinkedIn pages. I’d love to hear from you! Thanks! Ed Wise         #getwiseinsurance   Share...

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How Much Condo Insurance Do You Need?

How Much Condo Insurance Do You Need?

How much condo insurance an owner needs is one of the more challenging questions I must answer when talking with someone who’s buying or owns a condo. Regardless of how the policy is written (see last week’s post, http://wiseinsurancegroup.com/two-ways-condo-insurance-can-written/), the amount of coverage must be sufficient to protect the finish out of the home and their personal property or contents. Let’s examine how to approach both areas. Finish Out: The finish out coverage amount must be enough to rebuild the interior of the condo including interior walls, wall coverings (standard paint, custom paint, wall paper, paneling, etc.), electrical, light and plumbing fixtures (plugs, ceiling lights, sconces, sinks, faucets, tubs, etc.) and floor coverings (carpet, tile, wood, etc.) on a replacement cost basis. Replacement cost should address materials as well as the labor cost to do this. Some carriers provide a replacement cost estimation tool that estimates this for me while others don’t. When working with those that don’t, I either borrow the amount needed for finish out from another carrier and use that, or I follow a range based on the grade of finish out. The rules of thumb were provided to me by a builder friend and are below. Builder’s or economy grade about $50 a square foot Semi-custom grade between $55 and $75 a square foot Custom grade runs between $75 and $125 a square foot Luxury grade runs $130 a square foot or more Once you determine your grade, then multiply the cost per square foot by the number of square feet and you’ll know how much coverage is needed to rebuild your home. Contents: Determining what it will take to refurnish your home and replace your other personal property can also be challenging. I first recommend looking at your furniture and making a list of each item and an approximate cost to replace it based on where you purchased it. Visit store websites for current pricing if it’s been a few years since you bought your sofa, tables, artwork, decorative items, electronics, and chairs. Next look at the kitchen and begin to make a list of what you own estimating the cost to replace cookware, dinner ware, glasses, etc. Visit store websites to help determine cost. Next, move to your closet and dresser to do the same thing with all your clothing keeping in mind where you shop. Add all of this up and you’ll have an accurate estimate of how much coverage is needed for your personal property. This may take a couple of hours, but by doing this exercise you’ll have an excellent idea of how much condo insurance you need. What do you think? Share your comments,...

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