Tag: homeowners insurance

Golf Season is here! Does my insurance provide coverage if I hit someone!?

Chris

golfSpring is upon us (finally) and that means golf season is here!  I’ve been asked by a fellow golfing companion and a club pro the following question twice in the past few weeks, so I thought it may be worthy of a short blog post.

If I hit someone or hit (and damage) their car – does my personal insurance apply or is the golf course responsible?

Fore!!  Yes, if you hit the drive – you are liable for any subsequent damage.  The golf course may get named in the lawsuit – if it reaches court – but they are not going to be liable for any resulting damage from a golf ball that you hit.  You can try and run or hide; however, you are responsible for subsequent damages.

Coverage is afforded under the personal liability portion of your homeowners policy.  Generally, no deductible applies for this coverage.  If coverage is exhausted on the homeowners insurance policy, a personal umbrella policy may apply if needed.  There is no coverage under your personal auto policy (another common misconception)!

As always, it’s best to consult with your insurance professional to discuss any potential claim or coverage scenarios.  Furthermore, a golf lesson and some practice on the driving range may be the best way to avoid this claim scenario.

Does it matter what insurance company you do business with?

Chris

As an independent agency, we have many options and companies to work with.  Ultimately, this provides a great benefit to our customers – one advisor/professional to work with who has dozens of companies to choose from to find the best coverage and rates for you.  First, the customer needs to decide what is most important to them when choosing an insurance company.  Some factors to consider are as follows:

  1. Claims Service – Yes, different companies have different levels of claim service.  Some companies make the process very easy and provide great support during the process; however, other companies pay claims begrudgingly and can make the process painful.  This is one of our highest priorities when choosing a market for you because a successful claim settlement equals a happy customer.

  2. Price – Price is a dominant force in our industry and is usually a consumer’s top concern.  Price does matter but it is important to verify that other factors are not being omitted to create a lower price – specifically coverage (amongst others).

  3. Coverage Options – Do you have a unique risk exposure? Does the company you have your insurance with offer all the coverage you need?  These are important questions to consider when electing to place business with a company.

  4. Deductible Options – Many companies are increasing home deductibles and limiting deductible options.  If the company you’re with doesn’t have a suitable deductible for you, it may be worthwhile to ask your insurance advisor to explore other options.

  5. Size & Financial Stability – As an independent agency, we represent small, local mutual companies to Fortune 100 companies.  Size does matter – to a point.  It’s important that the company you’re with has enough capital surplus to cover any catastrophic events that may occur.  Furthermore, it’s important that the company allocates enough resources to critical functions of the company (i.e. customer service/support, claims, underwriting, etc.).  With that said, bigger does not always mean better.  We represent some regional companies that are AM Best A+ rated (financially stable) and provide good service, claims service, and pricing (if not better).

As always, it’s important to discuss these factors and any other factors that may apply to you with your insurance advisor to provide the best fit for you.  Every individual and family is different and subsequently, has different needs.  As an independent insurance agency, we feel that our flexibility and options provides a massive competitive advantage and most importantly, the best options for you.

8 Things to Know About Home and Auto Insurance

Chris

Fun factHere are 8 interesting facts about home and auto insurance (courtesy of www.insurancejournal.com).

  1. New Jersey is the most expensive state for auto insurance where the average expenditure is $1,183.95.  Idaho is the least expensive with ana verage expenditure for coverage at $535.15. — Insurance Information Institute

  2. The average auto liability claim for property damage was $3,073 in 2012, while the average auto liability claim for bodily injury was $14,653.  That same year, the average collision claim was $2,950, and the average comprehensive claim was $1,585. (ISO)

  3. 25% percent of consumers rent their primary residence; however, 46% of renters remain uninsured.  (J.D. Power)

  4. In 2013, the homeowners industry will generate its first statutory underwriting profit since 2007.  The GAAP homeowners results from 2011-2013 for four of the largest homeowners insurance companies (by market share) reported an aggregate homeowners combined ratio of 79.6% for 2013.  (Fitch Ratings)

    1. It’s important to note that this may not necessarily mean a decrease in homeowners premium, but if profitability can be attained for the full-year 2014, I would expect to see property premiums decrease.

  5. The most frequent type of homeowners claims are related to wind or hail (especially in WI!); the costliest are related to fire, lightning or debris removal.  About one in 20 insured homes have a claim each year. (III/ISO)

    1. About one in 50 insured homes have a property damage claim related to wind or hail each year.

    2. About one in 65 insured homes have a property damage claim caused by water damage or freezing each year.

    3. About one in 200 insured homes have a property damage claim due to theft each year.

    4. About one in 230 insured homes have a property damage claim related to fire, lightning, or debris removal ever year. (III/ISO)

  7. One in 800 homeowners policies have a liability claim related to the cost of lawsuits for bodily injury or property damage that the policyholder or family members cause to others. (III/ISO)

  8. Dog bites account for more than one-third of all homeowners insurance liability claim dollars paid out in 2012, costing more than $489 million.  (III)

Vacant and Unoccupied Homes – Homeowners and Dwelling Insurance

Chris

Vacant HomeDo own a vacant home?  Do you own any unoccupied homes?  Do you renovate dwellings and then subsequently rent them out?  Any of these situations may have unintended consequences on your insurance policies.

Insurance companies are very clever in the wording of their policy forms (which is why its important to read your policy forms!).  They sneak exclusions into the policy that only apply if the dwelling is unoccupied or vacant.  For example, if you buy a rental dwelling with the intent to renovate prior to renting it to tenants, several coverages are excluded until the home is occupied.  For example, theft and vandalism is excluded if the home is vacant for more than 30 days.  Damage caused by freezing pipes is another common exclusion among vacant or unoccupied homes.  Please note that each insurance company will treat their vacancy exclusions differently, so it is important to read your insurance forms for exact coverage.  More importantly, it is essential that precautions are taken to prevent any of the above losses from happening.  Many common precautions are:

  1. Keeping the heat level high enough to prevent freezing pipes

  2. Installing a security system to prevent any break-ins.  Other simpler measures are to lock all door and windows and have a neighbor or relative check the house daily.

  3. Have motion detecting lights installed outside

  4. Install lights inside on a timer system to give the appearance that the home is occupied

  5. Shut off the water in the home while unoccupied to prevent any catastrophic water damage

Furthermore, many of the same exclusions apply if you own a home with no intention of renting it out, but rather plan on occupying it yourself.  However, as many homeowners can attest to, many owners don’t move into their homes right away.  Many existing homeowners or renters insurance policies will extend coverage for personal property to their new location for a temporary time period (i.e. 30 days); however, no coverage is extended to the dwelling, structure, or detached structures.  So a new home that is bought but unoccupied may be susceptible to the exclusions listed above.

It is important to be upfront and honest with your insurance professional on the expected timeline of occupancy so that they can determine what coverage may be best for you.  Also, keep them up to date on any changes to your timeline for occupancy so any needed action may be taken.  Some companies do offer specialized, short-term (one, three, or six month) policies specifically designed to cover vacant or unoccupied homes.  If you plan on buying a new home – whether it be for yourself or for a tenant – it is very important to consult with your insurance professional to determine if any of these exclusions may apply to you.

Insurance changes for those saying “I Do” (or will be soon)!

Chris

Before you say “Yes to the Dress” – you may want to give your insurance representative a call.  It may be the last thing on your mind while you pick out colors, dresses, and flowers – but it may be the most important call you make.  Marriage changes many things – including your insurance contract – so it’s important to figure out what you need to do.  We’ll share the six most common tips for those who are planning on getting married.

  1. Schedule your engagement ring!  – The average cost of an engagement ring (according to theknot.com) is $5431!  What if the ring is stolen?  What if the ring is lost while washing dishes or doing lawn work?  Standard renter’s and homeowner’s insurance policies only provide coverage up to a certain amount and only for certain causes of loss.  Protect the jewelry by ‘scheduling’ the ring on your home or renters policy to provide cost-effective comprehensive coverage.

  2. Add your spouse! – Add your spouse to your policies after you are married – you may be eligible for certain discounts.  Statistics show that married people have fewer accidents than those flying solo.  Also, if you each are insured with different companies (or different policies) – you’ll most likely save money by combining your policies.

  3. Ask about a multi-vehicle discount!  – If you each own a car, you will be eligible with most companies to receive a multi-policy discount.  In some cases, it may cost the same amount to insure two vehicles as it does one!  When are insurance companies ever logical!?

  4. Ask about a multi-policy discount! – When combining insurance policies, always first check to see if it is cheaper to put all of your insurance policies with one company.  Many insurance companies offer substantial multi-policy discounts – which may save you bundles of money.

  5. Ask about an umbrella policy!  – After marriage, life tends to start moving quite quickly.  Home purchases, baby showers,  and babies all happen before you know it!  An umbrella policy is a cost effective way (around $10/month) to protect your assets from the increasing liability exposures that usually accompany marriage.

  6. Buy life insurance! – You no longer just care for yourself – you have a spouse (and possibly children) to care for and protect.  Life insurance can provide protection for a spouse in the event the unthinkable does happen.  Life insurance proceeds can be used to pay off mortgages and debts, used as replacement income, for children’s tuition, final expenses, and a myriad of other uses.  Protect those you love by purchasing life insurance.

Insurance is the last thing anyone thinks about while planning their special day; however, it is an important topic to bring up.  It’s also a great way of saving money and offsetting some of those wedding day expenditures!