A while ago, we gave an overview of some basics in a homeowner’s policy. Today, we are going to look at a few more items that may be in your policy.

As we said, Section I—Coverages A-D—are the property sections, covering the home and personal property. Section II—Coverages E & F—are the liability sections of the policy. Coverage E covers Personal Liability, which covers the named insured for negligent actions not related to an auto or business activity. Under this section, the policy/company cover legal defense costs and damages up to the policy limit. Coverage F is Medical Payments to Others. This provides some coverage in the event an individual is injured on your property and requires medical attention. Review your policy to see the coverage amounts and any restrictions that may be in your policy terms.

Some other things to look for in your policy: Under Section I, there are additional coverages that limit the amount you may recover on certain losses. Examples include:

• Debris removal (in the event of a total loss);
• Tree debris removal—if caused by a storm & it damages a covered structure;
• Trees & Shrubs—5% of Coverage A, limited to $500 per tree/shrub, and caused by lightning, fire, vandalism or theft.
• Fire Department Service Charges
• Collapse of building, if it makes the building unfit for its current intended purpose; does not apply to decks, awnings, fences, pools, septic tanks, retaining walls or piers.
• Grave markers

These are very basic, generalizations. Each insurance company and policy has their own coverages and limitations. Please review your full policy, and check with an insurance agent if you have questions about any of your coverages.

Each insurance policy is unique. While some generalities can be made, each situation should be reviewed on a case-by-case basis. This is not considered advice on any specific insurance matter. Please contact an agent to discuss any concerns you may have.

Homeowner’s insurance…what does it offer? That depends on your insurance company, and the coverage you have selected. But, there are some general coverages that are very similar in most policies. Here’s an overview of what is included on your homeowner’s policy.

When you look at your policy, the information will be laid out differently depending on your company, but all companies offer the following basic coverages:

Coverage A is the dwelling. This is the amount of coverage for the home and any attached structures. Some policies are on a Replacement Cost basis, which would provide coverage to rebuild your home with new materials in the event of a loss. Others are on an Actual Cash Value basis, which factors in depreciation to the value of your home. The amount listed here is the basis for the amount you would receive in the event of a claim.

Coverage B is for any other structures, and is typically 10% of the coverage A amount. (Some companies offer additional amounts, for additional premium). This would cover any unattached structures, such as garages, pole barns or other outbuildings or sheds.

Coverage C is for personal property. Again, this coverage is typically 50% of coverage A, but can be more. This provides coverage for property owned or used by the insured anywhere in the world. In other worlds, assuming your policy has theft coverage, and you have some jewelry stolen from your hotel room in Europe, most policies would cover the claim (if it is under the limit of liability listed below).

One thing to consider on your Personal Property coverage is that most policies have limits of liability for certain types of items. For example, most basic policies only cover $200 in money or bank notes; $1,500 for securities, passports, stamps or deeds; $1,500 for loss by theft of jewelry, watches, furs or precious stones; $2,500 for loss by theft of firearms; $2,500 for loss by theft of silverware, goldware or pewterware. There are several others, including watercraft and boat motors. And, some companies will over special packages that increase these limits.

Finally, Coverage D is the Loss of Use section. If you have a claim that prevents you from using your home, this is the amount the insurance company would pay for increased living expenses. For example, if you have a fire that displaces you, the company would help pay for either a hotel or a rental house to live in until your home is repaired. This coverage is typically 30% of Coverage A, though some companies offer “actual loss” amounts, which will cover the amount you incur in a 12 month period.

In the future, we will discuss some of the liability sections, as well as some additional options you may have for coverage with your homeowner’s policy. If you have questions about any parts of your policy, please contact your insurance agent to get more clarification.

Each insurance policy is unique. While some generalities can be made, each situation should be reviewed on a case-by-case basis. This is not considered advice on any specific insurance matter. Please contact an agent to discuss any concerns you may have.

With Easter upon us, we are reminded that sometimes parents like to find a new pet to put in the Easter basket. But before you get that new pet, remember that there are some potential insurance implications.

Most insurance companies will provide coverage for liability if your pet hurts someone or destroys a neighbor’s property. However, due to tendencies, some animals may require additional information, additional premium, or even be denied. Companies have lists of dangerous animals, and whether or not they can be included on the homeowner’s policy. These include specific breeds of dogs, and other exotic animals (snakes, tigers, monkeys, ferrets). There may be other insurance available for purchase to cover the liability for these types of animals, but check with your company to determine what needs to be done.

Even if your pet is deemed “safe”, it is a good idea to increase your liability coverage, just in case there is an incident. Most homeowner’s policies start at $100,000, but will go up to $500,000. This coverage helps offset the cost if you were to be sued due to an incident.

One other thing to remember, it depends on the company, but most policies won’t cover damage that your pet does to your home or to someone who lives in your home. So if your new puppy destroys your couch, you most likely won’t have coverage. But, if your new puppy gets out of the yard and damages your neighbors screened-in porch, you typically would have at least some coverage.

Each insurance policy is unique. While some generalities can be made, each situation should be reviewed on a case-by-case basis. This is not considered advice on any specific insurance matter. Please contact an agent to discuss any concerns you may have.

A few weeks ago, we talked about covering your motorhomes and campers. What about other kinds of Recreational Vehicles? While some auto policies might include limited coverage for an ATV, the best bet is to get a separate policy for your 4-wheeler, motorcycle, snowmobile or other kind of ATV or Recreational Vehicle.

These policies are designed to offer coverage that is specific to the vehicle you are using. This includes either liability-only or full coverage. Most companies offer a multi-policy discount for qualifying policies, so pairing your ATV with your home and auto could offer some savings.

So, if you have or are looking at purchasing a motorcycle, ATV, snowmobile, or other rec vehicle, contact your local independent insurance agent to determine what coverage is available and best for you.

Each insurance policy is unique. While some generalities can be made, each situation should be reviewed on a case-by-case basis. This is not considered advice on any specific insurance matter. Please contact an agent to discuss any concerns you may have.

We all love finding ways to escape from the day to day rigors of life. For some, that includes heading to the great outdoors to do some camping. Whether it’s a huge RV/motorhome, and fifth-wheel camper, or a pop-up pull behind, there are options for insurance your camper in the event of a loss.

While getting away can be relaxing, we don’t need any added stress if something were to happen. Whether you are involved in a crash on the way to the campground; if a storm comes up and damages the camper; or if someone is injured in or around your camper, there are a number of things that could ruin a perfectly good vacation.

Depending on the type of camper you have, there are a variety of insurance coverages you may need: Liability, collision and comprehensive coverage, similar to your auto policy; vacation liability; awning replacement; coverage for personal items in the camper; or even roadside assistance. Carriers offer many options that fit your personal use, including consideration for seasonal or full-time use.

So if you are a regular at the campground, a snow-bird that travels south all winter, or just looking to get away a couple times a year, contact your insurance agent to learn more about RV coverage, and what is best for your situation.

Each insurance policy is unique. While some generalities can be made, each situation should be reviewed on a case-by-case basis. This is not considered advice on any specific insurance matter. Please contact an agent to discuss any concerns you may have.

Each month, we pay our monthly insurance premiums, and figure we’re all covered in the event of a loss. Each insurance policy provides coverage up to a certain limit. Your policy should have a clear declarations page that shows those amounts—both property damage and liability. But what happens if something happens that goes above our coverage limits?

If there is a major claim that goes above your policy’s limits, a personal (or business) umbrella would come into play. An umbrella policy is a supplement to your basic policies (home, auto, renters, etc.) that provides excess liability coverage to protect your assets. The umbrella kicks in once the underlying (basic) policy limits have been exhausted. For example:

Billy has a homeowner’s policy with $300,000 in liability coverage. He has some people over, and there is an accident around his swimming pool. Billy is found liable for $750,000 in damages relating to the accident. In this case, Billy’s homeowner’s policy would pay the first $300,000. Then, his umbrella policy would cover the next $450,000.

Typically, umbrella policies have a required minimum underlying limit that you must carry (i.e.: you must have at least $300,000 liability on a homeowners) otherwise you would be responsible for the difference (if you only have $200,000, you would have to pay the additional $100,000 before the umbrella would kick in). These are unique to each company and/or policy, so check with your agent to be sure you’re in good shape with your basic policies.

Another advantage of the umbrella policy is that it may offer additional coverage in areas the underlying coverage might not respond, including some legal defense costs in the event a lawsuit is filed.

Most umbrella policies offer one-million dollars in coverage, and are fairly affordable (starting around $200/year depending on coverages added).

As is the case with all insurance, each policy and each company is unique. Please contact your insurance agent to review your policy, and what coverage you have and what is available. They will be able to work with you to determine the best option for your specific situation.

Each insurance policy is unique. While some generalities can be made, each situation should be reviewed on a case-by-case basis. This is not considered advice on any specific insurance matter. Please contact an agent to discuss any concerns you may have.

As the weather begins warming up, and spring is in the air, we remember that Mother Nature can create some intense disasters that are very harmful to our homes. This week, we focus on flooding. Most homeowners’ insurance policies do not offer coverage for floods. In 1968, Congress created the National Flood Insurance Program, which is now administered by FEMA (Federal Emergency Management Agency):

“The National Flood Insurance Program aims to reduce the impact of flooding on private and public structures. It does so by providing affordable insurance to property owners and by encouraging communities to adopt and enforce floodplain management regulations. These efforts help mitigate the effects of flooding on new and improved structures. Overall, the program reduces the socio-economic impact of disasters by promoting the purchase and retention of general risk insurance, but also of flood insurance, specifically.” (from www.fema.gov)

Flood insurance covers direct physical loss caused by “flood.” In simple terms, a flood is an excess of water on land that is normally dry. This includes events such as overflow of tidal waters, runoff, surface water, mudslides and mudflows. (***See below for the “official” definition) To be eligible, you must live in a community that has agreed to adopt flood control measures. There is also a 30-day wait period for new applications, unless it coincides with a new loan or home purchase.

Typically, almost any building that is walled, roofed, principally above ground and fixed to a permanent site is eligible. Most policies are on an Actual Cash Value (ACV) basis, which means that you would receive the depreciated value of your structure in event of a loss. Replacement cost coverage can be purchased, though it will not pay more than the policy limit. Also, coverage for your contents is not included in the basic flood package—that coverage would need to be purchased separately.

As we have seen, many weather events in the past few years have created disasters we haven’t seen in quite some time, if ever. And while your home may be in an area that has never flooded before, there is always a chance that something could happen. Please contact your local independent insurance agent to learn more about what is and isn’t covered, and how flood insurance could potentially help you. Here are several links from FEMA that provide some additional information, too.

Summary of coverage: https://www.fema.gov/media-library/assets/documents/12179

Overview: https://www.fema.gov/national-flood-insurance-program

FloodSmart.gov: https://www.floodsmart.gov/floodsmart/

Each insurance policy is unique. While some generalities can be made, each situation should be reviewed on a case-by-case basis. This is not considered advice on any specific insurance matter. Please contact an agent to discuss any concerns you may have.

***Here’s the official definition used by the National Flood Insurance Program.

A flood is (1) “A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from a. overflow of inland or tidal waters; b. unusual and rapid accumulation or runoff of surface waters from any source; or c. mudflow*. (2) collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined in A.1.a. above.

^Please note that this is a generic definition. Depending on your circumstances, application, and elected coverages, things might change. Please fully review your coverage and/or application with a licensed agent to be clear on what is and isn’t covered.

As we mentioned a few weeks ago, there are many factors that go into the premium you pay for your insurance coverage: limits, extras, deductibles and more. This week, we are focusing on deductibles, and how those can impact your premium.

The deductible is the amount that you must pay out of pocket before an insurance company will pay for eligible expenses. There are three main types of deductibles: 1.) Dollar deductibles are a flat dollar amount ($500, $1,000, etc.); 2.) Percentage deductibles takes a percent of either the insurance amount, the value of the property, or the amount of the loss; 3.) Time deductibles determine an amount of time you must wait until payments can begin (this is most common for a business income coverage).

What does that mean for your deductible? Typically, the higher your deductible, the less the insurance company is responsible for, therefore the lower your premium is. There are some limitations in state law in terms of the maximum deductible allowed for each program, so it’s not an exact correlation in what your savings are. In other words, a certain auto program may be limited by the state to have a maximum 20% deductible savings. If you move from a $100 deductible to $250, it could save you 8%; from $250 to $500 could save another 8%, but then from $500 to $1,000, the savings would be capped at 4%, reaching the maxium 20%. So most companies spread the savings out across the deductible levels, making the change from one deductible to the next a varying savings percentage.

Several factors go into determining what your deductible should be. First, remember that deductibles are on a per claim basis. So if you have multiple claims in a policy period (6-months or 1-year), you would have to pay the deductible each time. Since we don’t plan to have one claim, let alone mulitiple claims, sometimes this is overlooked. It is also different with health insurance, where there are out of pocket maximums that can limit how much you would pay per year.

You should base your deductible on what could or would be comfortable or affordable for you in the event of a claim. If you are in an accident or have a loss at your home, can you really afford to pay the first $1,000 or $5,000 of a claim? Or would you be better to have a lower deductible?

Also, consider the value of what you are insuring, especially autos. If you have a car that is worth $1,500, a $1,000 deductible would make less sense, because if the vehicle were totalled, you would in essence only get $500. On the flip side, if you have a $30,000 car, and can afford a little more out of pocket in the event of a loss, it might make sense to save some on monthly premiums with a higher deductible.

There are some policy extras, too, that can offer you savings on your premium or deductible. These include a “vanishing deductible”—for a little extra premium, your deductible will decrease by a set amount (typically $100/year) for each year you don’t have a claim. So if your first year deductible is $500, and you go three years before a claim, the deductible would then be $200. Generally they will then go back to the $500 level and start the vanishing over after a set period of time.

Also, consider what your monthly or annual premiums might be. We understand that budgets are tight, and finding savings can be beneficial. But, don’t solely base your decision on what your monthly savings might be. Take time to consider the above information, too. That is why we recommend you work with an Indepdent Insurance Agent to determine your situation and help determine the best policy and coverages for you. We are able to work with multiple companies, and find the one that best suits your individual needs.

Each insurance policy is unique. While some generalities can be made, each situation should be reviewed on a case-by-case basis. This is not considered advice on any specific insurance matter. Please contact an agent to discuss any concerns you may have.

Happy Valentine’s Day! As we celebrate our loved ones with cards and flowers and candy, we need to remember that some of our more expensive items might need special insurance coverage. So if you got that special someone a new ring or necklace, talk with your insurance agent to see if you should schedule your jewelry.

What does that mean? Most homeowner’s policies have limits on the amount of coverage for certain personal items (guns, jewelry, silverware). A standard home insurance policy has $1500 for theft only on jewelry, both on and off premises. In other words, if you have a $5,000 engagement or wedding ring, and it gets stolen from your house, you will get $1500 to help replace it. The coverage also applies if you are away from the house. So if you’re on a vacation to Paris, and the ring is stolen from your hotel room, again, you would get $1500 towards replacement. Some policies have better coverage, and offer more than $1500, but again it depends on your policy. Also, if you have multiple items that are stolen from your jewelry, you would only get up to $1500 per occurrence (not $1500 per item).

Also, depending on how your policy is set up, if there is a different kind of claim—a fire destroys your home and melts your rings, or a tornado takes your jewelry hundreds of miles away—most policies will provide either coverage for full replacement (with an appraisal for the item showing the value), or Actual Cash Value, which is the replacement cost minus depreciation.

So to ensure your items are fully covered, companies offer the opportunity to “schedule” your items. This means that you get all items appraised, and submit a list to the company, and they will then provide coverage for that amount. Again, depending on the company, they can do “agreed value” where you and the company agree on an amount for coverage; or they can do “appraised value” which requires a full appraisal from a jewelry appraiser.

As is the case with all insurance, each policy and each company is unique. Please contact your insurance agent to review your policy, and what coverage you have and what is available. They will be able to work with you to determine the best option for your specific situation.

Each insurance policy is unique. While some generalities can be made, each situation should be reviewed on a case-by-case basis. This is not considered advice on any specific insurance matter. Please contact an agent to discuss any concerns you may have.

It seems like everything costs more—a gallon of milk, an ice cream cone, a pair of tennis shoes—even your insurance coverage. But, are you actually getting the best coverage for your situation based on what you’re paying?

Price is a main factor when it comes to shopping, not just for insurance. There is an old adage that says “You get what you pay for.” That isn’t necessarily true, depending on what you’re shopping for. But when it comes to insurance coverage, most times it does hold true.

We see commercials on TV and the internet talking about savings if you switch, or great additions to your coverage to get more bang for your buck (i.e. vanishing deductibles or new car replacement). What really happens when you make the switch to get the savings or to add the extras?

It is vitally important for you to closely examine your insurance policy so you understand what is covered, and what it’s costing you. When you switch to save some money on your monthly premium, you may be giving up some coverage limits, or paying a higher deductible (more on this to come in a few weeks). Or, when you get excited that a company offers new car replacement, know that you might be paying more premium. Also, there are exclusions and limitations that may apply, so you need to know what you’re getting with what you’re paying for.

That isn’t necessarily a bad thing, though. Each insurance policy is unique to the situation, so your policy should offer the coverage you want or need. If you have an older car, with liability only coverage on it, you may not want or need the new car replacement, but a vanishing deductible could be beneficial.

In the end, while price is definitely a factor in which company you choose, be sure to do some research to determine what all is included in that price. Ask your agent if there are things you could add or remove to find the best coverage for your situation. Insurance policies are designed to restore or replace your property in the event of an accident or disaster. But if you look solely at price, you could be limiting what is actually covered in the event of a loss.

That is why we recommend you work with an Independent Insurance Agent to determine your situation and help determine the best policy and coverages for you. We are able to work with multiple companies, and find the one that best suits your individual needs.

Each insurance policy is unique. While some generalities can be made, each situation should be reviewed on a case-by-case basis. This is not considered advice on any specific insurance matter. Please contact an agent to discuss any concerns you may have.