Category: Home Insurance

Witches and ghouls are scary for the kiddos, but as a homeowner, you know that the real terror of Halloween lies in vandalism, lawsuits, and liability claims. Use these tips to make your home and belongings safe on Halloween night, both for you and your spooky visitors.

Be All In or All Out

Trick-or-treaters expect to get candy when they knock on your door, but it is understandable that you may not be in the spirit of the holiday or have the finances to supply candy every year.

When it comes to Halloween, it’s in your best interest to stick to your plan. If you give out candy, have your porch light on and be prepared for the foot traffic! If you’re not giving out candy, turn out the main lights and make it appear as if you aren’t home to the best of your ability. Greeting trick-or-treaters with no candy is awkward, and in some cases, it can lead to the worst kind of person being vindictive and coming back later to vandalize your home. It sounds bad, but it happens more than you’d think!

Hide Your Car

Halloween is a notorious night for automobile shenanigans. From toilet paper and water balloons, to eggs, paint, and bologna, vandals can pull “pranks” that wind up doing real damage to your car. If you’re not out and about on Halloween night, keep your car locked in the garage or at least park it behind the house.

Keep Your Pets Inside

Our furry friends don’t understand the spirit of Halloween. All they know is that masked figures keep ringing the doorbell to their home, and it is understandable that they get scared and defensive. No matter how sweet your pup usually is, he may still turn into Cujo on Halloween if he’s under enough stress! Don’t put your home insurance policy’s liability limit to the test over a dog bite or other, unintentional injury; keep your dogs safely in the house until the night’s excitement is over.

Light Up the Night…

Little trick-or-treaters are so excited to get candy, they tend to run up the driveway to your home. Make sure your porch and walkway are well lit and unobstructed so they don’t stumble on their way to the door. Not only could a fall ruin their fun night, but a real injury could come back to haunt you as a homeowner. Play it safe and keep it bright outside!

…But Don’t Use the Candles

Those glowing Jack-o-lanterns are super spooky and cool, but costumes, straw, and paper decorations are all very flammable. Use battery operated tea lights instead of real candles so your Jack-o-lantern only looks dangerous.

We know you do everything you can to keep your house safe, especially if you have small children or adventurous pets. You’ve tied up the drawstrings on your blinds, placed non-slip grips on the shower floor, secured your cleaning liquids in an upper cabinet, and changed the batteries in the smoke detector, so everything checks out as safe, right? Well, not necessarily.

There will always be hazards anywhere you go, so home will never be completely safe, but here are a few common household hazards that are easy to miss, and easy to fix.

1. Trash Cans

A trash can that closes well is important to keep curious noses and little hands from digging into rubbish that could contain a multitude of hazards. Items like broken glass, toxic substances, and spoiled food can still pose a threat, even after they’re in the trash can. So, forego the cheap flip lids and purchase a lid that closes well enough to keep kids and dogs away.

2. Automatic Garage Doors

Electronic garage doors are made to sense objects (or people!) underneath them and retract to keep injuries from occurring. Like all electronic things, garage doors experience malfunctions and breakdowns which, in this case, can be harmful or even deadly. If your garage door starts acting funny or experiences some damage, call a professional to come service it for you – an important fix of this magnitude shouldn’t be left up to instructions from the internet.

3. Window Screens

You want to throw those windows open with abandon because the weather outside is irresistable! We get it, but don’t think that a child is safe just because the window has a screen. The small, transparent frame that keeps bugs from getting in isn’t enough to catch the weight of a falling or pushing person, so make sure the windows on your upper floors have bars! At least until the kids get older.

4. Treadmills

Treadmills can easily be one of the most dangerous items in your house for both children and adults if they aren’t operated with care. Falls on a treadmill can result in traction burns, broken bones, pinched skin and snagged clothing, and more. Every treadmill should come with an attached safety magnet to be worn during workouts. Make sure every user wears the clip, and turn on the safety switch or unplug the treadmill when it isn’t in use.

5. Electronic Appliances

From blow dryers to microwaves, electronic appliances have the ability to malfunction and cause fires or electrocution. Always pay attention to any unusual display messages on your appliances, and carefully follow instructions for proper use. If you know you’ll be running many outlets at once, invest in a surge protector to protect you and your other appliances.

And Don’t Forget Home Insurance!

No matter what happens in your house, a good home insurance policy with liability coverage will always have your back. Independent agents have the ability to shop multiple carriers for good policies that fit your unique risks and budget! So, if you don’t have your home insurance policy yet, get in touch with your independent agent to find the right coverage for you.

As dog owners, we love our furry little companions more than anything. Unfortunately, some insurance companies don’t if your pooch falls under certain breed categories. There are a number of breeds that many insurance companies are hesitant to offer coverage for because statistics show that they are more likely to bite and cause injuries. This, of course, can cause problems when it comes time to buy home insurance. Be prepared to work with an independent agent who can shop multiple carriers if you own a full-breed or mix of one of these breeds:

1. Pit Bulls & Staffordshire Terriers
2. Rottweilers
3. Doberman Pinschers
4. Great Danes
5. Perro de Presa Canarios
6. Chow Chows
7. German Sheperds
8. Akitas
9. Alaskan Malimutes
10. Siberian Husky
11. Bull Mastiffs
12. Wolf Hybrids

What to Keep In Mind

The average claim payout for dog bites is $30,000. If you’re found responsible for rehabilitation costs and/or lost wages, not to mention your legal fees, you could quickly find yourself in a lot of financial trouble. Your homeowners policy should include liability coverage, typically starting somewhere around $100,000. If you own a dog that made it on this list, ask your provider how much more it would cost to upgrade that amount to $200,000 or more.

On that same note, some carriers may require you to purchase an umbrella policy if your dog is labeled as an aggressive breed or has a bite history. Whether it is required or not, you may want to consider this additional policy because it raises your liability coverage close to the $1 million mark! Plus, it could come in handy for any incident that occurs on your property, not just dog bites.

Prevention

Every dog is a liability, regardless of its breed. Reduce the likelihood of a dog-related lawsuit by socializing & training your dog early on, playing non-aggressive games, and being aware of your dog’s behavior and removing it from situations it finds stressful. As always, make sure to spay/neuter your dog, heavily supervise it around small children, and keep it securely fenced or on a leash when outside.

If you own one of these breeds, it is going to be more difficult to procure home insurance, especially at a good rate. If you’re in the market for a new home right now, contact our agency to get ahead of the curve and find a company that will insure your home (and your pup) at an affordable rate!

Every homeowner knows that smoke detectors are crucial, but do we really utilize them to the fullest degree?

The National Fire Protection Association estimates that 890 lives could be saved each year if all homes had working smoke alarms. This number is drastically lower than the number of deaths caused by home fires before smoke alarms were required in every home, but it is still too high considering the advanced technology we have to prevent fire deaths today!

Keep reading to learn some basic tips about smoke alarm usage and routines to keep your home safe for years to come.

Place Smoke Detectors Strategically

Unsurprisingly, most deadly house fires occur when everyone is asleep. If your family sleeps behind closed doors, it is important to install a separate smoke alarm in every bedroom. This ensures that no one sleeps through the sound of more distant alarms or the smell of smoke. If anyone in your family is hard of hearing, you should install alarms that also flash bright light so they can be alerted visually.

To avoid nuisance alarms from normal smoke and steam, don’t install the detector in close proximity to your stove or your bathroom. At the same time, avoid placing them by windows, doors, and air ducts, which can keep hem too ventilated and interfere with their operation. Depending on how much control you have over the installation process, opt for interconnected fire alarms that trigger the entire network to go off when one sensor is triggered.

Keep A Maintenance Schedule

If we said that checking our smoke detectors was easy to remember in our busy day-to-day lives, we’d be lying. That’s why it’s best to make it easy for yourself and just set a reminder on your mobile device reminding you to test your alarm system once a month just to make sure everything is in working order.

Batteries in your smoke detector need to be changed once per year. This not only ensures that your alarm should always have battery power, but it will prevent the dreaded “chirping” noise that comes when smoke detectors have dying batteries.

Every 10 years, the smoke alarms themselves should be replaced. An easy way to keep track of this is to keep a sticker on the back of the battery cover with the replacement date written on it, so you’re reminded each month of when you’ll need to replace your smoke detectors.

Make A Fire Escape Plan

Have you developed and practiced a home fire escape plan with your family? Don’t feel bad if you haven’t – only 26% of families have, according to the American Red Cross. Regardless, this is an important tip to take from the home fire prevention experts. All a smoke detector does is alert you to the presence of a fire. From there, it is up to you to get out of your home safely. Panic can seriously impede safety measures and waste precious minutes in an emergency, so it is imperative for your family to have a plan in place and know exactly what to do if your home catches fire.

Potentially Save on Home Insurance

Some types of smoke detectors can reduce your home insurance premium cost. This mostly applies to central monitoring systems that connect to emergency services and alert the authorities when the system is triggered. These are particularly useful for homeowners who travel a lot, but they are a great safety option for anyone to have. However, these systems cost more than the average smoke detector. Ask your independent agent if a home insurance discount could help offset the cost of a central monitoring system!

Buying a home isn’t as exciting of a process as it may look like on HGTV. It involves a lot of paperwork and finances to bring you to that happy closing day. But if you haven’t purchased home insurance yet, you’d better start shopping around. For most homeowners, lenders are required to help them obtain the home of their dreams, unless you happen to have enough cash to purchase the home in full. However, if you are like most people, here’s what you need to know about buying home insurance before closing.

Do I Have to Buy Home Insurance Before Closing?

Just in case you are still thinking you can get out of home insurance, yes, you do have to purchase it for at least a year in order to close on your home. In order to protect their investment (your new house), lenders will require you to cover your home against disasters. Until you have paid off your mortgage, your lender as the stakeholder has the right to hold possession of your property to protect what is technically their property. Home insurance is designed to protect both you and the lender, which is why lenders typically will not agree to lend you the money for your home until they know it will be protected. Plus, keep in mind that there are some advantages to paying homeowners insurance up front at closing, as you can sometimes exclude that premium from your closing costs.

How Much Coverage Do I Need?

Home insurance policies can protect your physical house, your belongings on the inside, and the cost of medical expenses for a person injured on your property. The amount of coverage you need typically depends on your lender. However, the general rule is that you need enough to cover the cost of rebuilding your home from the ground up in case of disaster.

A standard home insurance policy will protect you against:

• Damage from the weight of ice or snow
• Explosions
• Falling objects, such as tree branches
• Fire
• Frozen plumbing, heating, AC, or other household systems
• Hail, windstorms, and lightning
• Smoke
• Theft and vandalism
• Vehicles

By having homeowners insurance, you and the lender are protected in the event that the house is damaged or destroyed. Additional coverage can also be added such as flood or earthquake insurance, depending on your situation.

Types of Homeowners Insurance

Replacement-cost policy–  This type of policy covers the current cost to replace your home. For example, if you were to buy an older home that has unique features, the cost to restore it may be higher. A replacement-cost policy runs about 10 percent more than a cash-value policy but will cover the cost of rebuilding.

Cash-value policy– This type of policy costs less than a replacement-cost policy and covers the market value cost of your home and its contents. So rather than reimburse you the amount you paid for something, you will only get back its depreciated value amount.

While some types of insurance may be optional, homeowners insurance is a must if you want to own a home. You do always have the option of finding ways to reduce your premium such as by adding security systems, storm shutters, or deadbolts.

We’ll shop around for you to find the best policy with the right coverage and price. Let us know how we can help you by giving us a call today.

Most people have heard that they should keep inventory of the things they own in their home, but very few actually do. And those that do, rarely have one that is kept up-to-date. The good news is that putting together a home inventory isn’t hard. It’s just very time consuming to make a list of everything you own and document what it is worth. However, if anything were to ever happen to your home, you’ll be glad you spent a few hours documenting so you get reimbursed for everything at their worth.

Why You Need to Take a Home Inventory

Take a few minutes to try to make a list of your belongings without looking around your house. Would you be willing to bet that you can remember everything in the event of a disaster or burglary? Odds are, you’re going to forget a few things and not get reimbursed for them. If anything were to happen to your home or possessions, a home inventory can help you be fairly compensated for your lost items. In most cases, you can just tell the insurance company that you lost certain things, but if they don’t have a specific model number of the item, you’ll be reimbursed for the cheapest version. A home inventory can also help you decide how much coverage you need. If you find that you don’t have many expensive items, you wouldn’t need as much coverage as you would if you collected a lot of valuable things.

How to Create Your Home Inventory

The key to putting together a good inventory of your home is to document thoroughly. It starts with a list. Move from room to room throughout your home to take note of everything you own, including items in your attic, basement, garage, and shed. You can either take pictures of each item, or even better, take video for proof of ownership. While recording the video or taking pictures, just make sure that any serial numbers are visible and that you also record any receipts you still have for the item.

Aside from the visual inventory, you should also gather other documentation to help the claims process such as:

• Receipts
• Credit card statements
• Other transaction documents
• Appraisals (include the appraiser’s name and address)

If you have a receipt to show proof of purchase, you will often be reimbursed for the amount you paid for the item. Also take advantage of apps such as Sortly that you can download to help make taking inventory a little easier. If you want to avoid such technology, you can create your own system by using a spreadsheet to document the item, description of the item, cost, serial/model number, and anything else you think useful. Whichever method you choose, just make sure you scan your receipts in just so you have a backup. Otherwise, if your house catches on fire or other catastrophe happens, those receipts won’t be there when you need them.

What You Should Keep Track Of

It would be unreasonable for you to document literally everything you owned down to your toothbrush. That’s why you should start with your most prized and expensive items. Carefully document items such as TVs, DVD players, cameras, furniture, and jewelry. The best way to do this besides taking pictures is by taking video. Start at one end of the house and video everything of importance in detail (make sure model numbers and any receipts you may have are visible) and do a broad video scan of areas such as your cabinets and closet for a general idea of lower priced items you own.

Once you’ve created your home inventory, make sure to update it as you acquire or get rid of items over time. An outdated inventory won’t be very useful to you if you buy several big-priced items right before disaster strikes your home. The most important thing to remember is that once you make your home inventory, make sure that it is stored or backed up somewhere besides your home, preferably somewhere that can never be destroyed. If you have any questions about what is covered under your insurance policy, give your agent a call and they’ll be glad to help you out.

Before purchasing a home, you are required to purchase homeowner’s insurance as well. But how do you know how much to insure your home for? Most would think that they need to cover only the price they pay for the house. However, that price isn’t enough coverage to pay for your home in the event of a disaster such as a fire or storm. In most cases, your home’s real value is greater than its market value. That is because market value deals only with the buying and selling process, not rebuilding. And rebuilding costs are much more than the costs to build a home from scratch due to costs of demolishing/cleaning up the existing home, not being able to buy in bulk for supplies, and labor for a single rebuild versus multiple.

So which amount of coverage do you go with? Depends on the risks you want to take. Below we will go over the differences between a home’s market value and replacement cost, followed by the best option we recommend for the average homeower’s insurance policy.

What is Market Value?

Market value is the price a home can sell for in its current condition. Knowing this price is beneficial when buying or selling a home, but not necessarily for rebuilding. As we said already, there are a number of factors that cause rebuilding the same home to be much more expensive than the home’s market value. Market value is affected by factors such as the location of the home, crime rates in the area, amount of land, proximity to schools, and the availability of similar homes. The most important detail to note about market value is that the price is rarely high enough to cover the cost of rebuilding it since materials and labor costs could be more than when the house was built and one-time jobs are typically more expensive.

Benefits and Risks to Insuring Your Home at Market Value

Benefits: Occasionally, a home may be worth more on the market than it would take to rebuild such as if the home were historical or consisted of elaborate artisanal work that would be worth a lot of money. If you have a home such as this, you can choose to purchase a historic home policy, but these are often more expensive. To save money, you could insure your home based on the market value in order to recover after a loss.

Risks: If your home’s value isn’t placed in the history or craftsmanship, insuring your home at market value puts you at risk for not being fully covered in the event of damage to the house. You would be required to pay the difference between your home’s rebuilding cost and market value in order to rebuild. The only other alternative would be to build a less expensive home elsewhere.

What is Replacement Cost?

Replacement cost is the amount of money it would take to rebuild your home after being destroyed. Coverage at this price will insure your home for the cost to repair any damage or even rebuild your home at the current prices. A building contractor can help you estimate the replacement cost of your home based on the property’s structure and associated items as well as costs such as plans and permits for rebuilding, labor, materials, fees, and taxes. Keep in mind that the land value is included in the market value only, not the replacement cost as the land will not have to be rebuilt.

Benefits and Risks to Insuring Your Home at Replacement Cost

Benefits: You will be able to experience minimal financial interruption should your home be destroyed. If you go with this option, it is best to insure your home for 100% of its estimated replacement cost.
Risks: The cost to rebuild your home can vary over time. There is no guarantee that you will be 100% able to rebuild your home at the estimated replacement cost. To increase your chances of keeping your home fully covered against destruction, we recommend reviewing your policy annually to make sure your amount of coverage is still appropriate for you. Factors that can affect your replacement cost include home upgrades and improvements, market conditions, labor and material costs, and transportation prices. For the maximum amount of protection, you can consider a policy that includes an inflation clause to automatically adjust and account for changes in construction costs.

Insuring Your Home

Unless you believe otherwise based on the benefits and risks listed above, insuring your home for its replacement cost is typically the best and safest option. While, yes, insuring your home for its market value is cheaper now, you will be more adequately covered down the road should anything happen to your home. Ultimately, when you make your decision, research all your options and talk to your insurance agent about your situation.