Archive for the ‘Home Insurance’ Category

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Summer Safety Tips for the Home

Tuesday, June 29th, 2010

For the safety of your family and for the sake of your homeowner’s insurance rates, it is important to understand that summertime can bring with it a set of dangers.

As the mercury begins to rise, so do the chances of outdoor accidents and injuries. Therefore, if you want to reduce the chances of accident or injury and you want to reduce the risk of loss to your home, then it is vital that you take a moment or two to examine your home this summer, before the first barbecue begins:

  • Deck safety - Check the overall safety and stability of the deck; if it is more than a few years old, consider bringing a deck contractor over to examine the deck for safety. In addition, check for any loose or protruding boards, any protruding nails and wobbly or loose railings.

  • Swimming pool safety - Safety should be your first concern when dealing with your swimming pool. In particular, it is important to make sure all safety equipment with your swimming pool is in working order. Make sure the gates and fencing is secured; that any electronic pool safety equipment is in working order; and that all locks are working.

  • Window safety - Warmer weather often means open windows, so it is important to make sure that locks are in good working order and that the screens are free of holes and fit snugly in the window opening. If you have small children, install window locks to prevent falls. Remember that screens alone cannot prevent falls from windows, so invest in good window locks if you have small children.

  • Swing set safety - Is your swing set and recreational equipment in good working order? Check for rusty or loose bolts and make sure that there is sufficient padding underfoot.

  • Walkway, driveway and patio safety  - Make sure that all concrete, brick and flagstone patios, driveways and walkways are free of obstructions that could cause trip-and-fall accidents. Repair any cracks, holes or other areas that could cause problems and remove any debris or other items that could create hazards.

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Why your Homeowners Insurance Rates may be going up

Wednesday, June 16th, 2010

If you continue to see your homeowner’s insurance rates climbing, you may want to take the time to consider what may be the cause. Although there certainly are factors that are beyond your control, such as the state or city in which you live, there are many things that you may unknowingly doing to jeopardize your low rates:

  • Purchasing an “unsafe” breed of dog - There are simply certain types of dogs that are deemed to be “unsafe” by homeowners insurance companies and, as a result, you may end up paying more if you purchase a dog on the list. Before purchasing a new dog, it is best to contact your insurance agent and ask about their list of unsafe dogs. The general line of thinking is that certain breeds are more likely to attack people and cause injuries which, most of the time, are dealt with through your homeowners insurance contract.

  • Filing a series of claims - Filing one claim will not likely influence your homeowners insurance; however, multiple claims, even if they are not your fault, may cause an increase in your rates. If your home becomes damaged and the damage is minor, consider paying it out of pocket yourself instead of filing a claim. Limiting your claims will likely have a positive effect on your homeowner’s insurance rates.

  • Buying a home with a history of claims - If the previous owners of your home filed many homeowner’s insurance claims then you may be paying for their claims. A property with many claims may indicate an unsafe property to the insurer.

  • Late tax payments - If you fail to pay your taxes on time, your insurer may end up raising your homeowner’s insurance premiums because you are considered a payment risk. Make sure your payments are current to keep your homeowners insurance rates at bay.

  • Low credit score - If you fail to pay your bills and your credit score plummets, chances are your insurance rates will go through the roof. It is important to realize that a low credit score doesn’t just affect your credit, but other types of insurances and payments, as well.

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Your Guide to Understanding your Homeowners Insurance Policy

Friday, June 11th, 2010

Your homeowner’s insurance policy sits in your filing cabinet, safe and sound. You know you have a policy; you know you chose a good, solid policy; and you know that you always pay your premiums.

But do you really know what is in your policy and do you fully understand your rights and obligations under your homeowner’s insurance policy?

If not, then you’re not alone. Most homeowners, in fact, do not take the time to really understand the ins and outs of their homeowner’s insurance policy. And we all know the saying: what we don’t know can hurt us.

With that said, it is probably a good time to pull that policy from your filing cabinet and begin to read it so that you develop a clear understanding of the policy and what is contained in it. Along the way you may have difficulty understanding the policy because of the language used.

We have therefore set up a quick guide so that you can understand your homeowner’s insurance policy so that you can make better decisions regarding your policy:

  • Damage to House - Ever wonder what it means when it says “damage to house?” This part of the policy essentially covers any damage to the house itself. The damages that you can claim on your house are up to the face amount of the policy. In other words, if the face amount of your insurance policy is $200,000, you will receive that much if your home is completely destroyed.

  • Other Structures - Other structures in a homeowner’s insurance policy usually means outbuildings, such as detached garages, sheds and fences, just to name a few.

  • Damage to Personal Property - In addition the structure itself, your homeowner’s insurance policy also covers the contents of your home. Such personal property that may be covered includes: furniture, clothing and personal effects. Highly valuable items, such as jewelry and antiques, may need to be covered under a separate policy.

  • Comprehensive Personal Liability - This type of protection covers you from any accidents incurred by other people while on your property. Your homeowner’s protection for comprehensive personal liability will cover you, regardless where you go.

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Have you Reviewed your Homeowners Insurance Policy Lately?

Thursday, June 3rd, 2010

We’re all guilty of it. We get our homeowners insurance policy, pay the monthly premium, and then forget about it.  However, this may not be the best strategy, as it’s usually not very pleasant to find out that you’re not properly insured until a crisis happens.

It is important, regardless of where you live in the country, to take the time to review your homeowner’s insurance policy on a yearly basis. It doesn’t take long, and it could save you big in the event of a catastrophe.

Here’s what you’ll need to do:

  • Make sure you have the coverage needed. It is important to review your policy each year to ensure that your home and your possessions are adequately covered in the event of a disaster. In other words, make sure your policy covers you in the event of a total loss.

  • Pay close attention to policy limits and exclusions. Not all homeowner’s insurance policies are created equal, so check your policy to make sure that the exclusions and policy limits of your policy are reasonable and that your deductible is manageable.

  • Don’t assume your homeowner’s insurance policy covers all natural disasters. Ask your homeowners insurance company about natural disasters, such as floods and hurricanes. If your policy doesn’t cover these disasters (most don’t), take out another policy that will.

  • Update your home’s inventory. It is always best to have an updated inventory of the contents of your home in case you need to file a claim with your insurance company. It is often convenient to videotape the rooms of your home and narrate the contents, including their dates of purchase and their purchase price. Then, keep the video somewhere safe; preferably in a fireproof safe or safe deposit box.

  • Search several websites to ensure that you are still getting the best price for your homeowner’s insurance policy. But remember, cheaper isn’t always better! Take care to make sure that you are receiving a competitive rate on your policy, and that the company your policy is under is reputable and financially stable.

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Understanding Fire Insurance

Thursday, May 20th, 2010

Most homeowners and renters have some kind of fire coverage if they carry an insurance policy. For those who do not have the coverage, it is something you might want to seriously consider. Fires can strike anytime, anywhere, without warning. If you are lucky to come away from it with your life, you will most likely have lost much or all of what you owned before. Fire insurance can ensure that you have the coverage to get back on your feet and replace what you had.

Understanding Fire Insurance

Even those who do have the coverage do not often understand what fire coverage really is and how it works. After all, no one really expects a fire, nor is the insurance used by every individual who has it.

Most fire insurance policies consist of at least four parts: coverage for your home, coverage for outlying structures (not attached to the home), your personal property, and loss of use or living expense coverage (allowing you to get back on your feet and find another place to live either during repairs or permanently).

Most fire policies do limit the amount of coverage, so if you have additional valuables, such as jewelry, furs, etc. You might want to consider housing those in a safe place where there is little risk of fire or get yourself additional endorsements on your insurance policy. It is an important thing to consider, especially if you are someone who would prefer to rebuild rather then to move elsewhere permanently. If your dwelling was older, your city might require code upgrades. In this case, the insurance company coverage cap might put a damper on repairs without an additional endorsement.

All Your Stuff

Whether it is with a video camera or snapshot kind of camera, catalog everything that you own. If you own the property and the dwellings, document it. Go through the house and document all your personal property, in writing and on video or in pictures. You need to know what you have and what it is worth and so does the insurance company. This will benefit you a lot if you ever have to file a fire claim. Once you do this, ensure that your insurance company has a copy and give one to a family member or put one in a safe deposit box.

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Homeowner’s Insurance and Mobile Homes

Wednesday, April 28th, 2010

Just because your mobile  home is not the traditional house, doesn’t mean you don’t need to insure it. A mobile home is, in fact, a home. You either live in it, use it as a vacation retreat or rent it out. That makes it a home, and you have a vested interest to protect that home.

While there is not a significant difference between regular homeowner’s insurance and that for mobile homes, there are still a few things that the mobile homeowner will want to be aware of when it comes to insuring their property. The first thing to think about is insuring the mobile home prior to occupancy, if possible.

Insurance for fixed homes

Regular houses set on a foundation and not typically moved from Point A to Point B at one time or another - is pretty standard in what it covers. While mobile home insurance does offer some of the same coverage, insurance companies take other things into account, like the fact that mobile homes are more easily destroyed by certain natural disasters and are more than likely going to be a total loss in the case of a fire. This kind of insurance caters to the needs of mobile home and their owners, covering everything from theft to physical damage and disasters. Policies differ from company to company, but you will typically find both peril and comprehensive plans to fit your needs. Packages may include coverage for personal property, medical/injury claims should anything occur on or withing your property to a guest, fir coverage, disaster coverage, extended coverage, emergency removal and much much more.

Costs

Because of the very nature of a mobile home, insurance companies know they are a higher risk than an actual house. Therefore, the cost of insuring a mobile home can and probably will be a bit steeper than the cost of insuring a house. Still, it is worth it to have your assets covered. Find yourself a reputable, licensed agent who offer insurance for mobile homes and discuss the policy offerings and pricing. Get some quotes from others and compare pricing.

Keep the following things in mind as well:

If you want to insure a mobile home, you need to have enough income or money on hand to pay the deductibles and to maintain the home. lack of maintenance and not meeting your end of the deal with the insurance company can result in not having the benefits available if and when you need them.

The age of your mobile home will be a huge factor, not only in the rate you pay, but in deciding whether it is insurable at all. Newer mobile homes are more likely to be insured, whereas, if you own a mobile home from the days of cardboard flooring and paper thin walls, circa 1972, you might find that there is little to no insurance coverage being offered to you.

Tie downs might yield a discount or at least decent coverage. Many insurance companies not only request this, many are now requiring this of moiled home owners. This includes tie downs, ground anchors and, of course, foundations.

If you find that your particular mobile home can be insured, do it. You will not regret it if it comes down to needing the benefits after all.

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Homeowner’s Insurance: How to Save Yourself Some Cash

Friday, April 23rd, 2010

If you’re a homeowner, you want to protect your home and all that is in it. However, you certainly do not want to go broke in the process. If it seems like your homeowner’s insurance rates are eating up more of your income than you would like, there are a few things you can do to bring that rate back down to a level that has you breathing a sigh of relief.

Most importantly, shopping around could be the best way to find a rate you can live with. Compare prices and go with the best plan that does not demand a couple of your beloved limbs in the process. However, if this doesn’t cut it for you, look into the following options:

Your Credit Score

How is your credit score looking these days? If you have run into a few speed bumps here and there and it has adversely affected your credit, this could be the reason for your higher insurance rate. As long as you are ready to take on the expense of homeowner’s insurance and keep your premiums paid, you might want to look into a insurance company who does not check your credit. This could save you a bundle right up front.

Keep Your Policy Updated

If you have sold some valuable possessions, you obviously won’t be needing the same amount of coverage. Check your policy often and ensure that things you no longer own are taken off and be sure to add on new purchases.

Association Benefits

Are you a member of some alumni or business association? Whatever group you belong to, find out if there are group insurance rates or discounts that you could take advantage of to save some money in the long run.

Non-Smoking Home?

If no one in your home smokes, and you adamantly do not allowing smoking inside your home, mention this to the insurance company. Considering the fact that smoking accounts for 23,000 residential fires per year, your lower risk home could bring you a discount in premiums.

There are many, many more ways to save yourself a ton of money on your homeowners insurance. Don’t be afraid to look into your options and take advantage of each and every discount you are eligible for.

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Homeowner’s Insurance: Home Inventory Tips

Monday, April 19th, 2010

When you purchase a homeowner’s insurance policy, one of the most important parts of that policy is up-to-date documentation of the things that you own. If you own many items, it can seem like an overwhelming task to take inventory of each and every little thing that you want covered by your policy. Sure, it takes some time and effort, but it is well worth every second in the event of theft or some other disaster that takes away or destroys the possessions you cherish so much.

Sure, it is doubtful that every little thing could be replaced, especially those things with sentimental value, however, you can still benefit from insurance by not having to spend out of pocket to replace some of your more expensive treasures. After all, you probably worked pretty hard to buy those things in the first place. Here’s a few tips for taking a home inventory that will make things a lot easier in the long run.

Inventory

You can print off a checklist from some websites or get one from your insurance company. However, it is also advisable to just go from room to room and start making a list of what you own. Be sure to include any serial and model numbers, brand names and other pertinent info. For major purchases, hang onto the receipts in case you need them later on to prove ownership or purchase price.

Spreadsheet

With today’s programs like Excel and other spreadsheet software, you now have a great tool to track your items and easily update the list. Prepare a spreadsheet listing the item, the brand, the make /model/serial number, location within the home, purchase date and price, replacement cost/depreciated value and any notes you feel are important about the item.

Photos

Take photos of everything. Take several, in fact. Capture the item itself on file, serial numbers and other info and even distinguishing marks.

Backup

Print hard copies of your spreadsheet and photos. With your receipts, keep the originals, but make copies of them as well. It is also good if you can scan them into your computer. Back everything up on CD or flash drive, that way, you always have a copy.

The Insurance Company

Provide the insurance company with a copy of your home inventory list and photos, as well as receipts, if you choose to include those. This will go into your file as a permanent part of you policy, as long as it is active.

Updating

If you buy something new and want it covered, update your list and add a new photo or set of photos. Make sure the insurance company is made aware of the update too. Remember to delete any items you no longer own and let the company know that as well.

The good news is that if you follow these steps, you will only have to do a major home inventory one time. Updating the list will then be as easy as 123 and everything you own will be covered in the unfortunate event of a loss.

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Flood Insurance: What You Should Know

Monday, April 12th, 2010

Private insurance companies have done away with the practice of offering to cover flooding disasters as part of the standard homeowner’s policy. It is not personal; the insurance companies have simply realized that they will inevitably lose money on these claims. Rather than risk such a loss, they would prefer that their customers purchase an additional policy specific to flooding, allowing the insurance company to make more money on the policies.

It might not sound fair, but look at it this way: the insurance company can not cover claims if they don’t have enough money to back them. It may seem a little more expensive to have a separate policy for flooding, however, if and when  you ever need it, you might be glad you went ahead and spent the extra cash, just in case.

Who?

If you live in the desert, odds are, you won’t need to think about flood insurance. However, if you live in a low-lying area known for heavy flooding during rains or near rivers that tend to rise and pore over their banks during the wet season, you really should think about flood insurance.

Approximately 20% of Americans still think their regular homeowner’s policies will protect the from flood damage. FEMA says that 50% of those in at risk areas simply think they can not buy the insurance because they are ineligible. Neither idea is true!

How?

Flood insurance is only available through companies that participate in the NFIP (National flood Insurance Program) and is open to about 19,000 areas nationwide. As long as your community participates in this program and you feel you are at risk, you can buy flood insurance, whether you own or rent.

Flood insurance will cover repairs and property losses that you have experience due to flood and water damage. Even if it costs a bit of money to carry the extra insurance coverage, it is going to cost a whole lot less in the long run when measured against the amount of out-of-pocket expenses to repair or replace what has been damaged due to flooding.

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Home Security: Protect Your Home and Lower Your Insurance Rates

Monday, April 5th, 2010

Did you know that adding security features to your home not only gives you peace of mind, but can help lower your homeowners (and renters) insurance rates? Spending the money now to make your property and possessions more secure can save you tons of money in the long run. On average, you’ll see a 5% savings from each item you install.

Start with the Basics

The first things to consider are your doors and windows. You’ll want to install secure-locking , up to date windows and heavy exterior doors. No only will this deter a burglar, but it will also weatherize your home a bit, which could bring you even more savings.

Next, you will want to think locks. Cheap locking door knobs are a cinch to pick open, so choose something more expensive with advanced  inner locking mechanisms and theft-proof features. Don’t stop there. Dead-bolts are an essential part of you home security plan. They make the doors far more secure, are difficult to break through and will make you feel better about how secure your home is.

Beyond the Basics

You want to secure your home and possessions, but you also need to secure the perimeter of your property, which will only increase your confidence that you are safe and will bring you even more savings. If you want privacy and security, you should consider installing a privacy fence. They are higher than chain link fences, affording you far more security. You could also consider a secure locking steel gate and even an intercom system to announce visitors. Of course, this all depends on your budget and the level of security you feel you really need.

Motion detectors are a great thing to have as well. While some do go off with the slightest motion, they still act as a deterrent for someone with ill intentions who has entered onto your property. These days, however, you can buy motion detector lights that only react to human motion based on certain criteria.

In addition to that, a security camera is both a wise idea and an added deterrent.

Safety Beyond Burglary and Theft

Aside from the risk of theft, you need to think about other possible disasters. Equip your home with several excellent smoke detectors, a fire extinguisher or 2 (depending on the size of your home; keep these up-to-date, as they do expire), have a fire escape plan and ready tools (such as a rope ladder and bat) to break out of the house should you need to. If you feel you live in an area of high fire risk, don;t spare the expense of a sprinkler system and a top-of-the-line water hose to wet down the outside of your house if a threat becomes known. If you use gas in your home for heating or cooking at whatnot, you need to consider installing a carbon monoxide detector and keeping a combustible gas detector on hand. Do your research though. You will want one that uses pellistor beads and, depending on the time of gas used, an infrared detector. Not all combustible gas detectors are created equally, so do your homework!

One Big Consideration with a Ton of Benefits

Install a security system/burglar alarm. Your insurance company will give you a price break and you’ll thank yourself later. Most good security systems these days are interactive. Any problem will result in a call from the company to check on your welfare and the immediate dispatch of help. The alarm will deter most burglars and for other situations, such as fires and medical emergencies, you system can be wired so that the security company knows right away or you can get one that has one button push to summon help. This is a very smart idea that saves you money and just might save your life. It all sounds like a lot to do and a lot of expense, however, with all you will save on insurance an losses, it’s well worth every penny.

If security concerns you, you might want to get a dog as well. Your insurance company probably won’t give you a break for that, but your dog will provide added security and defense as well as fuzzy friendship.

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