Saturday, August 13, 2016

Home Owners Insurance


I started to talk about this about 10 years ago about pex tubing and the problems that will be coming. Insurance companies need to be more involved in building materials used to build homes and commercial properties. Any involved in auto parts will confirm that the quality of parts made in China have an unreliable performance compared to quality, more expensive parts. Personally I have moved away from brands I have never heard of or can not find info on and stick with name brand manufactures. Pex tubing made in China is now starting to split and loose its seal and insurance companies are paying the price. For some reason many trade companies will buy what ever is the cheapest to "save a few bucks." This attitude is costing Insurance companies millions. The pex tubing that was installed 10-15 years ago is starting to fall apart inside walls. Water damage is the worst especially if your not home and it has time to form streams through out your house. Copper tubing would last some 100 years in comparison. Insurance companies should start classifying homes based upon quality of build. List can be as simple a A, B, C. With well built homes being classified as A build quality. The cost to insure this home should significantly be lower to offset the increase in cost of materials. Meaning it needs to be worth doing. The pay back should be within 5 or at the most 7 years. It is in the best interest to insurance companies long term profit to do this. The better the property is built, the less likely damage will will happen due to junk building material such as pex. This could be an example of most building products. Windows come to mind, there are junk windows that will start to leak from day one not only from quality of the window being installed but also the craftsmanship of the installation. I could not tell you the amount of time corners are cut in the name of "saving a few bucks" at the future cost of insurance companies. These classification could also be extended to companies. Some companies just flat out don't care about quality and are bidding jobs as the low bidder with out concern about material being used, as long as it makes the 1 year warranty mark. This will never happen on its own and will only happen if Insurance organizations get to together and start doing it on its own. This is done now with worker compensation. As companies are rated on safety based on based on the amount of claims. If there are a lot of claims or IE hospital visits, the companies is clearly not following safety precautions. There is no guess work and over a short period of time the insurance company can put companies out of business who are not safe in work habits. They put them out of business due to cost to insure the company and it does not matter which company you go to, it is all linked like auto insurance. I'm a fan of this because I personally take pride in my work which takes a bit more time but far exceeds expectations. I don't fit in all companies because some companies just don't care because it cost more to do so. Until insurance companies work out a scheduled quality of build grade it is going to continue to cost them money and more so in the future because quality of products sold is ever decreasing and will continue to decrease. This plan will benefit American made products that understand quality of componants and also supports the trades. It just a win for most.