NEW IMPACT STANDARD MAY CONFUSE PUBLIC
The long accepted standard in the hurricane protection industry has been Miami Dade County or Southern Building Code Congress International (SBCCI) approval. The new Unified Florida Building Code has added a new standard that is significantly lower than those standards associated with Miami Dade and SBCCI approved products. This new American Society for Testing & Materials (ASTM) impact standard will allow for hurricane protection in a wind zone region less than 130 mph to be tested at a much lesser impact standard.

The real importance of this issue is that the general public will be confused about the effectiveness of impact-tested products.

Until March 1, 2002, impact tested and approved meant Dade County or SBCCI Approved, and the words Dade County and SBCCI have come to represent a standard acknowledged throughout the industry. Now impact tested will have different meanings in different areas. How many people will be hoodwinked by unlicensed contractors or suffer bodily injury because they wrongfully assumed that the products that were installed on their homes were impact tested to Dade County or SBCCI Standards and not the lesser ones currently approved by ASTM?

How different are the standards? The Miami Dade County and SBCCI impact standards require a large missile for wind zones of 110 mph or greater to be a nine-pound, nine-foot, wood two-by-four projected at a speed of 50 feet per second. The ASTM impact standard requires a large missile for wind zones equal to or greater than 120 mph and less than 130 mph, and greater than one mile from the coast to be a four-pound, four-foot wood two-by-four projected at a speed of 40 feet per second. The impact value is reduced by approximately 75 percent.

The International Hurricane Protection Association is currently polling its members to see what should be done to safeguard the citizens of Florida. The direction of the association will be announced at the next general membership meeting April 23 in Fort Lauderdale, FL. If you have question or comments please contact the IHPA at storms@gate.net

ANSWERS TO NEW BUILDING CODE QUESTIONS
The new Unified Florida Building Code, considered to be a model of storm protection guidelines for hurricane zones, went into effect on March 1, 2002. The following are some of the insurance questions along with the answers that have been forwarded to the International Hurricane Protection Association.

Q: Will the new Florida code change the insurance company’s requirements on hurricane protection?

A: Yes, it will expand the territory required to have impact protection. To date, Dade County-approved protection is the recognized standard and will continue to be the standard in all high-wind zones.

Q: My company currently manufactures and installs hurricane shutters. Now that there is a new code, can contractors signoff on old Dade or SBCCI installations?

A: If you have been allowed to sign the forms, then continue to do so. Many new homes have permits that allow the home and its hurricane protection to be built to standards applicable prior to March 1, 2002. If your company is working on one of these projects, then all previous codes will apply.

In most cases the new code did not affect any current hurricane protection projects; it merely expands the geographical location where hurricane protection is mandatory.

Your question stated that you install and manufacture hurricane protection. If your company is signing for other contractor installations, you should have excellent records documenting your procedure. Check your insurance policy to make sure it provides liability coverage for your activity.

Q: Will the insurance companies require or push for storm shutters on homes that elect for engineering to withstand internal pressures?

A: Yes, the in-surance carriers will provide an economic incentive to provide shutters. Currently, many of the carriers are offering a wind (hurricane) deductible that is 15 percent of the value of your home. If you have impact protection installed on all of the openings, the insurance company will reduce the wind deductible to two to five percent. That is a difference of several thousand dollars per $100,000 of home value.

Additionally, some insurance carriers are offering a reduction in the premium with no change to the deductibles. The credit that will be provided for internal pressure will be very small.

The Florida statute that mandates internal pressure credit also states that the credit must be a true representation of the reduction of cost after a storm loss. How much money will the insurance carrier save after the windows blow off, the contents are destroyed, the insured have to be placed in a hotel while the floor system and sheet rock damaged by wind-driven water are removed and replaced? Repairing the initial damage is only the beginning of the insurance cost.

After a water damage loss in a building that was designed for internal pressure and the damage has been repaired, any moisture that was not completely eliminated will cause mold. The existence of mold will expose the contractor repairing the interior of the home and the insurance industry to another type of claim, mold remediation.

In Texas, the number of mold claims have jumped from 883 in the first quarter of 2000 ($9.15 million) to 15,612 in the second quarter of 2002. The claims paid in the second quarter of 2002 total $276.55 million. Texas has a similar climate (heat and humidity) as Florida, so it stands to reason that the insurance industry will take some type of action to limit the exposure to mold claims associated with hurricane protection and eliminating the designing for internal pressure credit seems the most likely.

If you are in a sales situation and the prospect is considering impact materials or internal pressure protection, have them call an insurance agent and have the agent prepare a written quote. The difference will be quite apparent.

Q: What type of insurance credits will a homeowner receive if they have hurricane window film installed?

A: None. Window film is not considered hurricane protection, and therefore, the homeowner receives no reduction in insurance premiums. If the homeowner was looking to save money on heating cost, reduce ultra violet rays entering the house or trying to reduce the injuries associated with flying glass, then window film would be a good choice. Window film is not hurricane protection.

If you have hurricane protection related questions, send them to International Hurricane Protection Association, Attn.: Don Leggett, 3035 SW 122 Ave., Miami FL 33186, or e-mail the to storms@gate.net

HURRICANE PROTECTION DISCOUNTS
Sky and water are one in the ink-black darkness, wild streaks of lightning dance across angry clouds rammed shoreward at 140 miles per hour. The wind sounds like a freight train roaring down the tracks, 60-foot whitecaps crash into buildings, boats from the marina are tumbling down main street, trees break like toothpicks, the power lines snap, the lights flicker, darkness takes over. The only sound is the roar of the wind and the sirens of the men and women left behind to help protect our communities.

Pat Lynch from the Palm Beach County sheriff’s department attended the last general membership meeting and asked if the IHPA could support those persons left behind to weather the storm. Lynch explained that when a storm approaches, the men and women dedicated to saving lives and protecting property are the first to be mobilized and the last to return home. These brave men and women are often summoned before they have a chance to adequately protect their own homes and loved ones.

In an effort to support the efforts of these brave men and women, all of the members of the IHPA will be asked to offer discounts to those civil servants that are left behind when the rest of the community has departed. Any member of law enforcement, fire department or emergency medical technician will be eligible for the discount.

For more information on members offering the discounts, contact IHPA president Frank Storms at (305) 254-9626, or Membership Committee Chairman Don Leggett at (813) 927-9993.

And a thank-you from all the members of the IHPA.

COLLECTIONS DOWN, IRS LOOKS TO INCREASE TAX COLLECTIONS
The Internal Revenue Service (IRS) has released a report that estimates there are billions of dollars not being collected from employees because their employer is calling them sub-contractors. Now why should that information concern the hurricane protection industry? The announcement demonstrates that the IRS is looking for someone to pay uncollected taxes.

If you are sure that your sub-contractors are paying the correct taxes, then you might consider skipping the rest of this article. If you are unsure about unpaid taxes then read the following 20-point test being used by the IRS to substantiate who is an employee and who is a sub-contractor and answer the five questions at the end of the article.

The IRS 20-point test: (The wording has been adjusted for a clearer reference for employers within the hurricane protection industry.)

1. Is there a significant investment in equipment?
2. Who determines the job?
3. How is the independent contractor able to realize a profit or incur a loss?
4. Who has liability for loss or damage to materials?
5. Are services rendered to different firms?
6. Does the employer have the right to terminate or discharge the installer without liability?
7. Can the installer terminate without liability?
8. Does the independent contractor pay for operating expenses?
9. Is the worker provided with tools and materials?
10. Does the installer have the proper contracting license?
11. Must the installer personally render services?
12. Must the installer comply with written instructions and attend meetings?
13. Are there preset work hours?
14. Must the installer devote full time to business?
15. Is the work performed on the employer’s premises?
16. How is payment for services handled? Is the installer paid at the end of a specific job or on a regular basis such as a set rate per hour or week?
17. Does the installer have to submit oral or written reports?
18. Can the installer hire or fire assistants? If no, this indicates they are not in control of their operations but are being directed by an employer.
19. Does the installer offer services to the public?
20. Is the working relationship continuous? If yes, this may indicate that the person is an employee.

Now, try to answer these five questions:

Question 1. If an employee made $20,000, how much federal taxes should have been collected?
(Answer: $6,600. The employee should have paid 15.3 percent for SSI and Medicare and another 15 percent for withholding. So the uncollected amount is $6,600. Now add the seven percent interest and a 10 percent penalty and you have an unpaid tax bill of $7,722. Multiply that by the number of years the tax has not been paid and quickly this amount becomes a burden to the employer.)
Question 2. How many years can the IRS go back?
(Answer: Generally the rule is three years, but fraud has no statute of limitations.)
Question 3. Will my insurance pay the claim?
(Answer: No. Willful acts are excluded from your CGL policy.)
Question 4. I have a corporation, will that protect me from the IRS?
(Answer: No. Corporate officers are personally responsible for failure to pay taxes.)
Question 5. How many contractors do you have on your books that might not pay their taxes?

For more money saving tips, join the International Hurricane Protection Association today. Contact Membership Committee Chairman Don Leggett at (813) 927-9993, or e-mail: storms@gate.net

Meet the IHPA
The IHPA Board of Directors is made up of 11 individuals representing manufacturers, suppliers, dealers and contractors in the hurricane protection industry along with associate members. They are elected to serve a two-year term. Many board members also serve as IHPA officers and chair its various committees.

In this issue, Hurricane Protection magazine continues its series of brief biographies of IHPA’s board members. We also asked them what are the most important issues facing the industry today.

In future issues, we will continue this series by periodically polling board members on important topics to the hurricane protection industry.

The International Hurricane Protection Association (IHPA) is headquartered at 13035 SW 122 Ave., Miami, FL 33186; (305) 254-9626; fax; (305) 256-8887; www.inthpa.com.

Sis Smith
Sales Manager
Ocean Shutters Manufacturing, Inc.
Chairperson, Governmental Affairs Committee

“Even though the Florida Building Code became effective on March 1, 2002, there are still a number of issues and concerns that need to be addressed by the Florida Building commission and the state legislature.

“I believe it will be of significant importance to be able to wade through the current code and proposed changes and keep our members informed as to how they may be affected. Because changes to the code are proposed on a regular basis, staying educated and informed will be on ongoing process.”

D. Douglas Thomas
President
Weather Guard, Inc.
IHPA Board of Directors

“Permitting for the installation of hurricane products is one of my major concerns. Having been in the shutter industry for 30 years in central and northern Florida, I have seen shutters misrepresented to the homeowner.

“One of my goals is to ensure that members of the hurricane protection industry are dedicated to meeting the high standards set forth by the new Florida Building Code. In the past, we have had companies that either did not understand the codes or did not put much effort into complying with them. Now that permits are required in all counties, this should benefit both the customers and legitimize hurricane protection companies.”

John E. Noble
President
AABCO Storm Shutter Mfg., Inc.
Chairperson, Public Relations Committee

“Of the current Board of Directors, I am one of three representing the contractors. The cornerstone of our American economic system is the principle of free enterprise. In short, healthy, legitimate competition creates an environment in which the level of marketing skill, management skill, efficiency, workmanship, integrity and good will in the marketplace should determine the degree of an entrepreneur’s success. Unfortunately, there are a handful of guys out there who define the difference between a perfect world and the real world.

“My Top Most Wanted list includes:
• Unlicensed, uninsured contractors
• Contractors who do not pull building permits
• Businessmen who engage absentee Qualifying Agents
• Contractors who structure as subcontractors; employees who do not meet legal subcontract criteria
• Contractors who sell for and pay in cash
• Contractors who abuse and subvert Florida’s sales tax
• Contractors who overstate or misrepresent their products then deliver much less
• Contractors who take deposits with no intention of fulfillment
• Contractors who prey on and take advantage of the elderly and unsuspecting

“The fact that these guys have created a severely modified free enterprise system greatly upsets me. Competing with them is not a viable option. Strict enforcement, heavy penalties, public awareness and peer review, in my mind, is the necessary course of action.

“The IHPA is rapidly defining itself as the organization supporting and speaking for the best interests of the hurricane protection industry. The IHPA, with its strong code of ethics, is vehemently opposed to the activities of these types of contractors and their organizations. I will continue to work with members to help foster a strong organization that will ultimately establish the even playing field that the organization was founded on.”