Homeowners Insurance- Choosing a coverage amount

Homeowners insurance was created to protect homeowners in the event of disasters that threaten their homes and possessions such as fire or theft. Although these events are occurrences that most people do not even want to consider happening to them, the fact is that they do occur often throughout the country and they must be properly prepared for. Homeowner’s insurance is the best way to ensure that you are protected from unforeseen damage to your home. If a major disaster does occur, you will be extremely happy that you have decided to insure your investments.

When you choose to purchase homeowner’s insurance, an insurance company will decide how much money will be allotted to you in your homeowner’s insurance policy. The amount will depend on the value of your home. Oftentimes homeowners do not understand why the coverage amount allotted to them is less than the price they paid for their home upon purchase. This is because the price you purchased your home for is based on the overall value of the home, the land, its location, and a number of other things. Your homeowners insurance only covers the structure of the home itself, since the land is not considered damaged in the event of any damage to your home covered by the insurance (please note: in the United States homeowners insurance does not cover earthquakes).

There are a few requirements for those who wish to get homeowner’s insurance. In order to qualify for a homeowner’s insurance policy, you must own the home you are insuring and also live in it. If you own the home and are renting it out, you will not qualify for homeowner’s insurance. If you are renting a home you will qualify for renter’s insurance but not homeowner’s insurance. When shopping around for the right homeowner’s insurance policy for you, you will find that there are a number of types of homeowner’s insurance, depending on what you would like to cover. Dwelling coverage covers your home and any attached dwelling areas that you do not live in, such as your garage.

Coverage for Other Structures will cover all dwellings on your property from large storage units to garages to guest homes. Other structures can also be defined as swimming pools, hot tubs, decks, patios and other structures on your land. Personal property coverage covers the contents of your home. With personal property coverage not only is your home covered in your insurance policy but all your possessions located within the house that could be stolen or damaged in the event of a disaster are covered as well. If you have a number of expensive items within your home, this is probably a very good investment for you since you would have a number of large investments at risk in the event of a burglary, fire or other unforeseen event. Loss of Use coverage is vital if your home is left damaged so badly that you can no longer live in it. In the event of a disaster that leaves you with no home to live in, this type of homeowner’s insurance will allot you a specific amount of money to cover bills for hotel stays, meals at restaurants, etc.

It is clear that there are a number of options for anyone who wishes to invest in homeowner’s insurance depending on what they wish to insure and how much money they wish to spend on a homeowner’s insurance policy. No matter what area of the country you live in or how much you home and its contents cost, homeowner’s insurance is truly a must for anyone who owns a home. In the event of a major disaster homeowner’s insurance can be your only saving grace in preventing you from losing major amounts of money and property. If you do own a home and do not have homeowner’s insurance get in touch with an insurance provider as soon as possible to make sure the unthinkable does not happen to you. If you have never invested in homeowner’s insurance before, most local insurance agencies will be happy to have an agent sit down with you and walk you through the logistics of homeowner’s insurance. It will be one investment you will surely be glad you made.

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Tips On Homeowners Insurance Simplified

If you are a human being that lives somewhere, you probably should have some sort of homeowners insurance coverage. Regardless of whether you rent an apartment unit, condominium, own a house, acreage or even a town house, not being sufficiently covered can lead to great financial loss difficult to recover from. You home is the greatest financial investment you will ever make, not to mention all the money you spend on furnishings and items contributing to the liveability of your home.

Every adult needs some form of homeowners insurance coverage. It's never a bad idea to get a free online homeowner insurance quote or two. This will enable you to compare rates and coverages to tailor a policy that is suitable for you and your contentment.

If you are not sure what homeowners insurance coverage is, it is a policy you get in exchange for an annual premium that provides protection for your dwelling, personal property and any lawsuits that you are held responsible for. Habitually there are 4 underlying or basic types of homeowners insurance coverage.

Types Of Homeowners coverage In Reference To Insurance ;

1) Dwelling Coverage : Provides payment for needed repairs or cost of replacement for your home, as well as to detached units and structures on your property, due to damages caused by fire, water, lightning strikes and other disasters. Examples of detached structures predominantly include tool sheds, barn and garages. Usually excludes damage caused by earthquakes and selected natural disasters.

2) Basic Liability : Provides protection to you against lawsuits resulting from accidents occurring on your property you may be held responsible for. Damage to others or their property inflicted by your dog or children. Also covers you for damage, injuries or bodily harm to others caused by you on or off your property.

3) Personal Property : Provides protection for the contents of your home, such as furnishings, clothing, sports equipment, electronics, appliances and other personal belongings. Collectors items such as artwork and jewellry customarily are not included and require a seperate policy if you wish to have them insured.

4) Living Expenses : This type of homeowners insurance coverage provides payment of expenses incurred in case of temporary relocation due to repairs being done to your home, such as motels.

The above mentioned are just basic descriptions of what may be covered by a policy, a homeowner insurance quote will provide you with further detailed information regarding protection.

The premiums will vary in rate from person to person, and will depend on certain situations. Free homeowners insurance quotes will also touch on this subject. There is much to cover, but it is important for you to understand what your home owners insurance policy includes.

Some Factors Considered to Determine A Premium ;

- Crime rate in the area you reside
- How old your home is
- Square footage
- Distance to nearest fire hydrant
- Type of home and how may levels
- Do you own a dog, and what kind
- Property value
- Does your municipality or community have its own fire dept.
- Type of heating system
- Type of locks on doors and windows, alarm system and security devices
- Is the area you live in at risk of natural disasters
- Previous claims
- Condition of plumbing, roof and electrical
- Replacement costs


and more. Before taking any action, it would be wise to consult a professional regarding any coverage premium and how it is determined.

Like with any other type of protection, there is usually a deductible to be paid whenever making a claim, and in regards to this, homeowners insurance coverage does not exclude itself. Ordinarily, the higher the deductible you choose to go with, the lower your premium will be.

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Homeowners insurance: What’s covered, what’s not, and what to look for

Individuals planning on purchasing a home spend weeks if not months picking the perfect neighborhood, floor plan, and then home before they even consider purchase. In a similar way, buyers will shop around and compare the interest rates offered them on mortgages. Yet, when it comes to homeowners insurance, the norm is to still simply to defer the decision-making to the agent. But just as you wouldn’t consider purchasing your home without first researching and planning, so also should homeowners insurance buyers consider the major options available when it comes to buying a homeowners policy.

In its simplest form, homeowners insurance is an agreement between you, the homeowner, and an insurance company, that in exchange for you making monthly payments, they will compensate you for any significant damage that affects your home. This at least was the form of original homeowner’s policies. Today’s policies are more complex, both covering, and excluding a wide range of situations.

Broadly, a homeowner’s policy covers four major areas of liability. These include:

1. Coverage for the structure of the home

2. Coverage for the contents of the home


3. Liability protection

4. Temporary displacement costs in the event of disaster

Coverage for the structure

This structural protection is what most people commonly conceive of when they think about homeowners insurance. Purchasing a home is a major investment in the lives of most individuals, and as a consequence, the threat of loss of that property, would be so devastating financially that it motivates individuals to seek out insurance as a means of protecting their financial interest. But despite common perceptions to the contrary, homeowners insurance does not cover any and all damages to the home. While each policy varies slightly, most commonly floods and earthquakes are excluded from coverage. That means that if you have a standard policy and your home floods, you will not be recompensed by your insurance company for your loss. On the other hand, other disasters such as hurricane, fire, and hail are typically covered under the standard policy. In addition, most standard policies cover other structures that are fixed or attached to the home, most commonly garages or porches. While these general guidelines hold true for most policies, the variance between insurance providers is significant enough that you should investigate the particulars of what is covered, and more importantly what is excluded regarding coverage for the structure of the home.

Coverage for Personal Belongings

Homeowner’s insurance policies cover not only the structure of a home, but much of its contents as well. Because the coverage to items within the home is not complete, however, it is important to know the limitations of your policy. The industry standard is between 50 and 70% of the value of the policy. That is, if you have the structure of your home insured for $100,000 that policy typically covers the value of your possessions up to $50,000 or $70,000 if they are stolen or damaged in non-excluded circumstances. But, just as with the structure of the home, this coverage is not all-inclusive. For example, there is typically a limit on the amount your insurer will pay out on high dollar items such as jewelry or expensive clothing. This limit can vary but typically maxes out at $2,000. An oft forgotten possession related to the home, is the landscaping. Under most standard policies insurance that will recompense the insured for up to $500 in landscaping damage is also covered. But once, again payment can only be attained if the causal factor (i.e. fire) was covered in the first place.

Liability Protection

Moving farther away from most common conceptions of a homeowner’s policy, it is important to note that policies also cover personal liability for you, your family members and pets. This means that by virtue of owning the homeowners policy you are covered in case, for example your dog tears up your neighbor’s lawn, or far worse, if your neighbor hurts himself while visiting your home. Even more in this aspect of the policy than in any others, the exceptions are vitally important to understand. The amount of liability coverage that comes with a basic policy is a rather standard $100,000. But depending on the exclusions, that similar number belies a world of difference when it comes to actual personal protection.

Temporary Displacement Compensation

If an accident befalls your home and you are unable to inhabit your home temporarily, your homeowners insurance provider will cover the costs of your housing and some additional costs during the interim. Included under this coverage, for most standard policies are things like food, and other basic living expenses. But some policies go farther by compensating you for slightly more extravagant costs like clothing purchases. The coverage for displacement costs varies here more than anywhere else. Some companies use a percentage calculation to determine how much in temporary displacement compensation you can receive to cover hotel bills, food, and the like. This number is most typically set at 20% of the value of the insurance on the structure of the home. Other companies take a different approach, however. They offer unlimited, or at least higher valued, temporary displacement compensation, however, these benefits are time-dependent. This means that once your coverage time expires, you receive no more benefits, no matter the costs you may still be incurring.

In all of these categories, insurers offer a wide variety of options dependant upon your willingness to pay. For example, you can up your protection for high-dollar possessions if you have a lot of jewelry. In the same way, if you are particularly concerned about liability you can pay extra for higher coverage and the same is also true of temporary displacement coverage. While what I have outlined here, provides you with a basic framework for understanding the various components of homeowners insurance and the general standards of the industry, the differences between individual policies can vary widely. Consequently, it is important for those considering the purchase of homeowners insurance that looking into the particulars of what has been covered here be made a priority. Only by understanding the precise offerings of competitors policies and understanding their functions, can you the customer come to find the policy that best suits your needs and those of your family.

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Homeowners Insurance: Lessons from Katrina and other gulf storms

Homeowners Insurance is supposed to protect us in case of disasters. That is what we have come to expect from our homeowners insurance over the years. But what if the disaster is the costliest in U.S. History? What if your insurance agent’s home and office were destroyed in the disaster also?

That is what happened to many customers and homeowners insurance agents and companies after Katrina hit the Gulf coast. Many agents' homes, offices and insurance Companies' claims centers were in the same situation as their clients due to the storms. So what did they do? They set up “office” in tents and mobile trailers. Then Hurricane Rita blew away these temporary offices and the agents and companies set them up again. These temporary shelters acted as a communications center for all people in the surrounding areas. Local people would come by to ask questions, meet with their claims adjustors and just catch up on the news with their neighbors. Extreme circumstances dictated unconventional responses: some agents even filed claims for their clients without even talking to the clients just so they could get the claim “in the queue.” Allstate allowed customers to submit claims through any agent in the country and set up a priority line to assist. They sent email to agents in the areas surrounding the disaster areas to act as messengers by “word of mouth” to their fellow agents in the effected areas. The larger companies such as State Farm & Allstate that service claims for the national flood Insurance Program even used satellite imagery to determine damage in some neighborhoods that were entirely flooded.

Lessons Learned: Those of us not effected by these disasters can learn a few lessons about coping with future disasters from the thousands of policyholders that are still waiting to get their claims paid. As soon as possible, take steps to prevent further damage to your home if possible: such as covering the roof with a tarp if possible. You can hire a contractor if you can find one, as that would be safer for most of us than climbing on our roofs. Hold off making any repairs until you see or talk to an adjuster first. Plus, keep your receipts, as you’ll need them to prove expenses that can be re-imbursed later.

What Does Homeowners Insurance Cover?

You can generally expect your homeowners insurance to help pay for additional living expenses for up to 12-24 months while your home is being repaired. But, homeowners insurance usually pays only after they verify you have a legitimate claim. After Katrina, many insurers made an exception, automatically distributing enough to cover two weeks’ worth of additional living expense to anyone in an area subject to mandatory evacuation. Some companies even gave small advances on contents under the personal property part of their homeowners insurance policies.

If you have to wait to get your check, it helps to have cash that is easily accessible in a bank account or money market fund. Stashing cash at home isn’t a great idea because if your home burns down and you weren’t able to get to your cash, most homeowners insurance policies only cover $100-$200 in cash whether it is stolen or burned up in a fire. Your goal should be to have an emergency fund available to take care of your family for 2-4 weeks (minimum)if possible. In a disaster it might be hard to even find a local bank to get cash. Debit/credit cards with a statewide or national bank would perhaps be better.

Your biggest problem in getting your claim handled may be in either not having the proper homeowners insurance coverage or not having enough coverage. Most good homeowners insurance policies today cover up to 120% of your dwelling coverage limit. It is important that you review the dwelling limit with your agent every couple of year’s at a minimum. Homeowners insurance policies do not cover Flooding, but you should again see your agent for this coverage.

If your homeowners insurance falls short, you may qualify for money from the Federal Emergency Management Agency (FEMA) or a disaster-assistance loan from the Small Business Administration (SBA). Homeowners can borrow up to $200,000 for rebuilding and $40,000 to replace personal property at very low interest rates for up to 30 years.

You may reprint this article on your site or in your newsletter with proper credit to the author and a simple link to http://www.hometownquotes.com

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Homeowners Insurance Discounts: The Best Methods Of Finding Them

There is no way around needing Homeowners insurance if you are about to embark on the journey of purchasing a home. Depending on the size of the home, Homeowners insurance can cost as little as $400 a year to as much as $2000 a year, if not more in some parts of the country. The amount of Homeowners insurance you receive will also be determined by the value of the interior property, including the upkeep of remodeling on the home, as well as whether your policy will include valuable electronics and jewelry.

Once you have determined what type of policy you would like to implement, you can begin discussing yearly and monthly costs with insurance agents. One thing to keep in mind while you are searching for Homeowners insurance is that the rates won’t vary that much between each company, but there are small ways to save a few dollars to a few hundred dollars, simply by finding some Homeowners insurance discounts that are available.

One of the easiest ways to receive a discount on Homeowners insurance is to install a home security system, and not the type that barks and growls. Many insurance companies are actually paired up with security companies like ADT or Brink’s and will give you a discount for using that insurance company and that security company as well.

Even if you get Homeowners insurance and decide to go back later and install a security system, don’t forget to go back and call your Homeowners insurance company once the system is installed so that you can receive a discount on your insurance. Further discounts may be given for motion sensors or even for video surveillance cameras installed on the home.

Another great way to receive a small discount on your Homeowners insurance is through fire and carbon monoxide detectors and fire resistant doors, brick and even walls. Remember that not all companies will offer the same discount for fire resistance and fire protection, so it is best to do research on how much of a discount can be received before diving in to remodeling the entire house for fire resistance.

Keeping up with newer appliances is another excellent way to help receive a Homeowners insurance discount. Older appliances are more likely to develop bad electrical connections, which can make the home susceptible to fire.

The first place to begin updating appliances is in the kitchen because kitchens are on the top of the list for places where fires begin. Many other insurance companies will offer a discount for new plumbing and electrical systems, or simply for a home that is less than ten years old altogether.

While some homeowners aren’t willing to consider a higher insurance deductible, or the price they will pay before the insurance will begin paying for loss or damages, asking for price quotes with higher deductibles is an excellent way to receive a discount on your insurance.

Most Homeowners insurance companies start out with a minimum deductible of $250 to $500 dollars, but try raising the deductible by $250 and see how much this will save you a year. Often times, this can make a difference of nearly $100-$150 a year on the total insurance bill.

Remember, though, that if you choose this route, you may end up paying more than that $150 savings a year if something happens to your home and you have to pay the higher deductible. Simply weight the negatives and positives and decide if a higher deductible is right for you.

The final sure fire way to receive a Homeowners insurance benefit is to belong to a club or certain group. This could simply mean being in the "65 and older" club and receiving a senior citizens discount, or it could also mean already being a member of the bank where you are looking to purchase Homeowners insurance. Some insurance companies also give a discount if you plan on having both your car insurance and Homeowners insurance with that company.

Before settling for the first set of numbers thrown at you by the insurance company, be sure to ask about these discounts and make your assets work for you when shopping for Homeowners insurance.

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Homeowners Insurance Coverage Needs: How To Determine Them

For first time homeowners or for those who have never really taken a serious look at their Homeowners insurance, determining what Homeowners insurance coverage you need can be a trying time. One of the most important tips to keep in mind when determining what type and how much Homeowners insurance you need is to make this determination before you get started talking with an insurance agent.

It is extremely easy to get sucked into buying extra insurance that you will never use by a sly talking agent on the phone. This doesn’t mean that you shouldn’t take an insurance agent’s advice at all, but just be certain of a ballpark figure for the type of coverage and the amount of coverage you need and want before you get started.

One of the first questions an insurance agent will ask is the value of the home being purchased. This simply means the basic exterior and interior value of the home as it is when you purchase it, without belongings. Remember that an insurance agent should ask specific questions regarding the exterior of the house, such as whether it is brick, vinyl siding, wood or a mixture, as well as questions regarding a porch, deck or sunroom.

Insurance agents should also be asking specific questions regarding the basic appliances on the interior of the house, and will want to know how old the plumbing and electric system are, the air conditioning and heating unit, the appliances and will even ask questions about whether you have expensive countertops or flooring, such as granite or marble.

Keep in mind that while you purchased the home for a certain price, say $100,000, the Homeowners insurance company may want to allot payments for the structure of the house to be anywhere from $10,000 to $40,000 over the current appraisal and market value of the house, to deal with inflation. It is up to you to decide if you want to agree to these terms, but remember that the price of repairing these items in the home will increase over the years, and you don’t want to be left with not enough money from the insurance company to cover full replacement of your home at any given time.

If you have purchased a home that will soon be remodeled or reconstructed, you may want to go ahead and add a considerable amount to this portion of the insurance coverage, that way if anything happens in the process of remodeling or as soon as the home is remodeled the total cost of remodeling will be covered without a problem. Of course you can always wait until the remodeling is completed to call and get a new price quote, but it is best to have the insurance set in place prior to the completion of the remodeling.

The second major factor that should be considered in determining the amount of Homeowners coverage needed is the interior value of the goods in the home. This is a difficult task for some people who have not kept good receipts of purchases and that makes it easy for insurance agents to suggest more coverage than needed in the interior goods department.

Before calling for price quotes, it is best to sit down and try to briefly itemize the major purchases in your home, including furniture, large appliances, and electronics. Many basic interior coverage plans do not cover certain electronics such as computer systems or laptops, so be sure to ask about laptop or computer coverage if this is an item you have in your home. As well, some insurance policies will cover jewelry but others will require a separate "special" interior Homeowners policy, although adding this on would only cost approximately $30-$80 a year for most jewelry owners.

The final determination for how much coverage needed should be location. It is extremely important to consider whether you will need hurricane insurance, flood insurance, wind and hail damage insurance, or even tornado insurance.

Bear in mind that even if you live in a hurricane zone, you may also be required to purchase separate flood or wind insurance, in case your home floods or the windows blow out from the storm. The same goes for tornado or earthquake insurance, as you may be required to have separate amenities added to the policy to cover wind damage or even flooding.

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Homeowners Insurance Company: How To Choose One

It is almost inevitable that when purchasing a new home the homeowner will be required to also purchase a home insurance policy. Many mortgage companies who are granting the mortgage loan will require that proof of the Homeowners insurance policy be shown before the closing on the house. This ensures that their investment into that home is safe in case of damage or destruction.

There are an overwhelming number of Homeowners insurance companies to choose from, making it difficult to determine what is right for you and your home. Many mortgage companies will suggest a Homeowners insurance company that they work in conjunction with, but this does not mean you have to use that insurance company to cover your home insurance needs.

Before jumping in and accepting the first quote that comes along, it is best to call around to a few different insurance companies and see which coverage plan is right for you, since different companies will offer different plans and different discounts.

The first thing you should ask about when determining which insurance company to use is whether they offer special discounts. Depending on the company you may find discounts ranging from fire resistant, security system discounts to senior citizen or dual insurance discounts.

A dual insurance discount usually means that you will receive a discount from the company if you have more than one type of insurance through them, so check with your current car insurance company to see if they offer special rates to loyal customers.

Keep in mind that in a similar fashion as creditors looking at your previous credit history, insurance agents will be looking at your credit history as well as your past insurance history. For those who may have a high car insurance crash history or for those who have a bad credit history, this could mean higher premiums in the long run.

Insurance companies are taking a gamble on you and although they assume that they may have to help replace something in your home along the way, if you are already a "high risk" client, this means you will have to pay for those risks because it is more likely their services will be needed sooner than later.

Most basic Homeowners insurance policies will cover the house for a total replacement cost as well as the possessions of the home for a total replacement cost. Because of this, insurance agents will be asking in depth questions about the home you are about to purchase such as square footage, the age of appliances, the air conditioning and heating units, the age of the plumbing and electrical system, and even the style of flooring, countertops and cabinets.

Although you might want to try and save money by stretching the truth about the age of the plumbing system or the style of the countertops, remember that you will only receive the replacement costs for what you have told the insurance company, so it is important to be as accurate and truthful as possible.

Many insurance companies will include in a quote special needs perils such as flooding, hurricane or earthquake insurance. Nevertheless, if you know you live in a high risk area for any of these particular perils it is best to ask if those are covered under the basic policy. You don’t want to get started on an insurance policy and realize that you are not fully covered.

The same can be said for special possessions like computer equipment and jewelry or furs. Often times a separate policy or a clause in the policy is needed to insure any special possessions for their full replacement cost, so be sure to ask the insurance company about these items.

All in all it is most important to find a Homeowners insurance company that is reliable, has a reputable name and has been in business for a long time. This may mean asking friends or family members who are current homeowners who they use for their home insurance, or even searching ratings for the best Homeowners insurance companies.

Remember that they will have a large portion of your financial investment and the possessions inside in their hands, so it is important that you feel confident in the policy and company you select.

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How to Review Your Homeowners Insurance Renewal Statement

For most of us, our home is our single largest and most important investment. Many of us have poured thousands of dollars and countless hours into maintaining, improving and (hopefully) paying off our homes. Many people own their homes free of any mortgage. These assets are pure equity. Certainly its worthwhile to invest 15 minutes a year to be sure it's properly insured.

Thankfully, the insurance company offers you a perfect reminder and opportunity in sending out your annual renewal statement. Even if your insurance is paid by your mortgage company as part of your impound account, the insurance company still mails you a statement of renewal every year to update you with your current coverage limits and deductible.

Here's a few important steps you can take to be sure that HOME SWEET HOME is properly protected.

1. Check the basics. Check your name, address and any other description of the insured property. Make sure there's been no change of vesting or ownership that needs to be updated. Check your address to be sure no numbers are transposed.

2. Check the mortgagee clause. Here's where you can be sure that the current mortagee on your home is listed correctly. Check the lender, address and your loan number. Be sure there's no old information there. Maybe you had a HELOC (Home Equity Line of Credit) or a second mortgage that no longer applies. Be sure to get them removed.

HEADS UP: Whenever you have a significant claim, the mortgage company will be one of the payees on your claim settlement check. Just that alone can be an inconvenience. But it becomes a major hassle when one of the institutions listed no longer has a vested interest in your home. The insurance company is bound by contract to include the mortgage company on all settlement checks beyond a stated threshold.

*3. Check the coverage on your home (dwelling or building). This is without question the single most important coverage to examine, consider and adjust whenever necessary. Having been an agent during the two raging firestorms in San Diego, CA in this decade, I can tell you that underinsured homes are just NO FUN! Two of my clients lost their homes in the 2003 fires and fortunately they were both adequately insured. (we call all our homeowner clients once a year to review their coverages and suggest improvements and adjustments) But I can tell you that there were literally hundreds of people in the area that were not so fortunate. Many were underinsured by over $100,000! Contractors were giving rebuilding bids on homes for $400,000 with insurance policies with limits less than $300,000. See if that doesn't tweak your financial well-being just a little. Here's the solution.

Get an accurate rendering of the square footage of your home. Check county records, take a look at zillow.com, call your favorite Realtor, or get a tape measure and do your thing. Usually you don't include the garage in this calculation. Once you get your square footage, then you need to determine the building cost per square foot in your area for a home like yours. Call a local contractor for a quick estimate or you can call your insurance agent. Average costs in San Diego run about $200 per square foot. With that, a 2000 square foot would take about $400,000 to rebuild. Custom homes can be significantlly more. For a more complete discussion of this, check out: How Much Homeowners Insurance Do You REALLY Need?

Your contents coverage is usually 75% of the amount you have on your home. For example, if you have $400,000 on your home, you'll have an additional $300,000 to cover your personal property (furniture, clothing, dishes, TV, collections, shoes, tools, etc) Usually this is enough, but think through it anyway. If you have antiques, art, collections of any kind then you may need more. Ask your agent for help if you need to.

4. Look at your Personal Liability Coverage. This is the coverage you need when you get sued. Little Johnny runs across your front yard and trips on one of your sprinklers and ruins his chances to become America's Next Top Model and his parents sue your for $250,000. Make sure you don't scrimp here. It's not too expensive to get $500,000 or even $1 Million of liability coverage. If you have $100,000 or less, you could be setting yourself up for a mess just waiting to happen. Put a really big checkbook between your assets and someone who sees an injury as a lifetime paycheck. You might even consider a Liability Umbrella.

5. Check your 'special limits'. This is a REALLY BROAD subject that I just can't do justice to here in this post. Simply stated, there's limits on many things such as cash, computers, cameras, jewelry, furs, goldware, silverware, tools, etc. Call your company and ask for a review. You can increase many of these limits for just a few dollars a year. Sometimes the available increase isn't enough. That's the perfect time to consider a Personal Articles Floater (or it's called many different names) It's a policy that's designed to place stated amounts of coverage on many items from jewelry, business tools, iPods, hearing aids, cameras, musical instruments and on and on. If you have more than 'the average Joe' of ANYTHING, then check this out FOR SURE!

6. Check your deductible! This can be a tremendous cost-control tool in your insurance spending. Simply stated: The larger your deductible, the greater your savings. Usually you can save close to $100 per year just by going from a $500 deductible to $1000. Pick the largest number you can stand without losing sleep at night and ask your agent or company the savings you'd realize by changing. If you have a $250 or smaller deductible, it's definitely time to change it UP! Keep in mind that you usually hit a point of 'diminishing returns' once you get to $4000 or more. This means that you'll save less and less for each additional $1000 you choose. It might make sense to go from $1000 to $2000 if you save $85 a year by doing so, but not from $5000 to $6000 if you only save another $21 by making that jump.

Monitoring your insurance costs and coverages can result in a lot of savings AND peace of mind. Be sure you keep notes and file your thoughts and changes from year to year. These recoreds will make your annual call quicker and easier each year.

Feel free to contact me anytime if you have questions.

Till next time...


It's a Good Life !






Dennis Volz Insurance Agency
10791 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121
eMail:Dennis@DennisVolzInsurance.com
Websites: Company Site: DennisVolzInsurance.com

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Homeowners Insurance - HOW TO CLOSE YOUR ESCROW -- How to buy it, How much to get, and HOW TO SAVE MONEY

The informed purchase of your homeowners insurance can be the most important minutes you invest into the purchase of a home.

So, you've purchased your new home, navigated the rigors of escrow including home inspections, termite tenting, title searches, legal wrangling, paper work, signatures, delays, changes, lost documents, unreachable loan officers, and the dog ate my disclosure!

Then you get the call..."I'll need a copy of your homeowners insurance to close escrow TOMORROW!"

So now what ?

If you've done the following.....YOU WON'T EVEN GET THE CALL! EVER!!!!!

There's a few simple steps you can take to avoid this last minute panic.

1. Contact YOUR insurance "team member" you trust EARLY in the escrow (like the day you open). (he is a member of your team that helps you avoid ulcers during escrows.)
2. Your agent then gets completely ready w/ the information, inspects the house, relays his information (phone, fac, etc) to escrow and waits. (Check to make sure he's going this. Sometimes escrow contacts him when there's like 20 minutes left till the rate lock expires....) Make sure he's all "warmed up" and ready to go just like the pitcher in the bull pen.

What should you look for.

You need to primarily consider 3 major points of the insurance. (there's MUCH more to it than this and you can read about that HERE.) This is just a quick peek at the basics of what you should look for.

1. INSURANCE TO VALUE - HOW MUCH? People need to insure their homes to the COST OF CONSTRUCTION of the home. Not the sales price, not the loan amount, but the amount of money it would take to rebuild in the case of a total loss. Living thru the TWO MAJOR SAN DIEGO FIRES in 2004 and 2007, I can tell you that this can be a PROBLEM. Get insured correctly going in the front door and the renewals should increase to keep pace (but check 'em out anyway...that's why they mail you an annual renewal notice.)
2. Get a good amount of Liability Coverage. This is the , GAWD, I'M GETTIN SUED coverage. Think minimum of $500,000 and maybe even a $$MILLION$$.
3. Don't take too low a deductible. Many clients take $2000 up to $5000 and even $10,000 deductibles for substantial reduction in their premiums. Look at the numbers and decide.

That's just a short view of the INSURANCE portion of your escrow. Most important, get an insurance agent you trust that will take good care of you and who will get to know you BEFORE he recommends coverage. Everybody's different with different insurance needs.

Find an agent that you can call who is willing to spend the time with you to be SURE you new home is adequately and COMPLETELY insured!

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:mailto:Dennis@DennisVolz.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

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Whose Insurance Does What during "DELAYED POSSESSION"?

Got this great question from Jennifer Allan, author of Sell With Soul today and thought the answer might be helpful.

Hey Dennis...

What's the deal when a home sells and closes, but there's a delayed possession - that is - the seller retains possession of the property for a few days past closing to move out?

If there's damage... which homeowners policy pays? The buyer's (who owns the property, but hasn't yet taken possession) or the seller's (who no longer owns the property)?

J

WOW! Great questions, Jennifer.

Homeowners insurance for the buyer goes into force to close escrow. After the closing, the BUYER owns and insures the house. Should there be damage to the home, it would fall on the BUYER'S insurance to cover the loss. The new owner would be responsible to pay the deductible. (there could be some stipulations in the RENT BACK AGREEMENT about that, but without some agreement to the contrary, that's how it would likely settle out.)

Loss to any contents of the SELLER (those items remaining while they move out) could be covered one of two ways.

1. Using the homeowners insurance for THEIR (the sellers) new home
2. Using Renters Insurance if they're moving to a rental

Most insurance companies offer at least 30 days of "EITHER PLACE" coverage. In other words, their stuff can be covered by their existing policy for up to 30 days in the old OR the new location. So if they're moving to another home, they will have homeowners insurance in place on that new home. If they're moving to a rental, they need to roll their old homeowners insurance over to RENTERS INSURANCE for the new residence at the close of escrow, In either case, the EITHER PLACE coverage still applies using the new insurance policies to cover their contents during moving.

If you have any questions, please call, write, email, signal flags, or smoke signals.... :)

p.s. My insurance company, which is available nationwide, offers additional location coverage without a time limit. In other words, your stuff is covered anywhere in the world -- PERIOD. Doesn't matter if you're moving, storing, vacationing, or stocking your Ski Chalet in Switzerland.

Point here being that not all insurance companies handle this situation exactly the same. Check with your local insurance professional to be sure.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:mailto:Dennis@DennisVolz.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

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I've had a FIRE! What do I do now?

Fire can be one of the most traumatic and devastating losses anyone can experience.

If you've had a fire and there were injuries or a death, my sincere condolences. If you've experienced just loss to property, please take a moment to be thankful that there we no injuries or death.

You're probably still in shock that this has happened to you and bewildered by the seemingly endless task ahead of you. This is going to be a ONE DAY AT A TIME process. If you can settle into that thinking, this will be much easier. Every day that you make progress toward rebuilding your life is a WIN. Ask yourself at the start of each day, "What does WIN THE DAY look like TODAY?" Make a VERY SHORT list of a few things that will get you to that WIN THE DAY feeling and be happy with that.

FIRST THINGS FIRST
If your loss is a severe one (a total loss or one where SUBSTANTIAL work is required to get you back into your home) then you need to first think about some long-term living arrangements.

This should be your first priority. You might be put up with friends or in a hotel at first and you may need to get some basic items like clothing, personal items (toothbrush, etc) but don't get involved with any other stuff until you're settled into where you're going to live.
Your insurance company should be very generous here. You can usually rent a place similar to yours at their expense. They won't pay you any extra though.

For example, if you were renting a house or apartment, you won't be required to pay rent while you're out of your home, so you'll just be paying rent someplace else. The insurance company might make up the difference if there's nothing available similar to yours. The goal is to keep your monthly expense about the same.

If you owned a house, you'll still be responsible for your mortgage so the insurance company should pick up the entire cost of renting another place.

Just rent some furniture for now and then SLOWLY, replace it with items you purchase along the way. You'll have plenty of time to shop for furniture once the contractor gets busy rebuilding your home.

OK. So now you have a "home base" from which to rebuild your life. Its important to have this so you can focus on gathering, replacing, purchasing the things, memories and items necessary for daily living.

DON'T BE TOO HASTY TO "HIRE" THE SERVICES of a 'PUBLIC ADJUSTER'. This is someone who will show up EARLY. (like while the fire department is putting the hoses back on their truck) They will tell you that they will do all the negotiating with the "big bad" insurance company for you for a small fee. SAY NO FOR NOW.... (you can always go to them later and their "small fee" is THOUSANDS of dollars....) You're better of without them.

Your claim adjuster is going to be your new best friend. That's an important mind-set to adopt. Look to him as a source of information, encouragement and ideas to get the most out of your insurance policy. The company I'm with (and most companies) will look for ways to BE ABLE TO PAY YOU rather than looking for ways to get out of paying you. Remember, losses are calculated into what they charge and a good claim experience and positive results serve them much better than saving a couple thousand dollars by nickel and diming you to death.

GET ORGANIZED
TAKE NOTES. You should pick up a 3-ring binder w/ some paper. You might want to get some tabbed pages to keep track of THINGS TO DO, NOTES ON CALLS, CONTACT INFORMATION, etc. Remember think MARATHON not SPRINT. You're going to need a central location (the notebook and maybe a small file box) to keep track of your information.

They're going to start by giving you an overview of the entire process. There will be a contractor to find, plans to draw up, lists to create, receipts to keep, and plans to make. Take good notes and remember to keep thinking 'just one day at a time.'
KEEP YOUR PERSPECTIVE AND HAVE FUN! Yeah, I know that sounds a little off. But this is such a once-in-a-lifetime opportunity. You get to start all over. Fresh! New!

Make a decision to enjoy this process -- This curve ball that life has thrown your way. If you're married you can play 'newlyweds' all over again. If you're single you can make a substantial change in your lifestyle, your look, anything you want.

Decide to be BETTER not bitter because of it.

Yes.... Make a conscious decision that this is probably one of the most exciting adventures you'll ever have. Get just a few things and relish in how simple life can be. You'll "clutter back up" soon enough so just enjoy the spartan simplicity.

Buy a different brand of underwear, splurge on some really plush socks, or get a pair of just THE COOLEST JEANS EVER! Try out new ways of cooking with new dishes. Get back to enjoying the simple things in life. You'll be a bigger and better person because of it.

Don't forget to let your friends help you. You'll deepen your relationships and forge new friendships along the way. Just let it all happen.

THOUGHTS ON REBUILDING
There's way too many variations and possibilities to go into within the scope of this blog. But here's a few things to think about as you begin to work with your adjuster and contractor.

1. The insurance company will generally pay to build the house just like the one you lost but YOU DON'T HAVE TO BUILD IT THE SAME WAY. If you've always wanted a big picture window on the west side... then GET ONE!
   
2. Take your time with your architect or making your own sketches of how you want your house rebuilt. You might even be able to change the "footprint" of the slab (the basic shape and orientation of the house) One of my clients who lost their home in the San Diego fires of 2003 had always lamented that the side of the house with the best view had just one little tiny window. Well.... They fixed that w/ 4 huge picture windows and instead of having the bathroom there, it was their den and fireplace area. Turned out BEAUTIFULLY!
   
3. Have a plan to refurnish your home. Just slowly replace your rented furniture with your new stuff as the "building the home" process unfolds.

The process of rebuilding your home can be the most challenging event you've ever experienced. It can also (at the same time) be the most rewarding and life-changing! After all, if you can survive this, sitting in traffic or having to replace your refrigerator just won't phase you any more.

Contact me if you have any questions.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

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A word about DEDUCTIBLES...

Simply stated: A deductible is the amount that you pay toward a loss or claim before the insurance company begins to pay. The higher your deductible, the lower your premium.

• The more you are willing to participate in your loss, the greater the savings on your premium.

The insurance company will offer your a lower premium if you take a higher deductible because your LOSS FREQUENCY and your LOSS SEVERITY will be lower. Consider if you have a $2000 deductible instead of a $500 deductible:

1. You'll make fewer claims because you won't be making claims for $600, $900 or $1995 losses. You'll simply pay those yourself. (FREQUENCY)
2. When you do submit a claim the insurance company will be paying $1500 LESS than if you had the $500 deductible. (SEVERITY)

There is no "correct" deductible to choose. It depends on what I like to call your personal LOSS THRESHOLD. So before we get too far ahead, lets take a moment to diagnose your "loss threshold."

Lets say you go out and buy a $3 picture to hang in your bathroom. Are you going to insure it? Of course not! Now you go out and buy a famous $252,000 masterpiece painting. Are you going to insure it? Unless you are a multi-millionaire, you certainly will. Somewhere in between the $3 print and the $252,000 masterpiece is your loss threshold. Your loss threshold is the amount of money you can stand to lose without doing any great harm to your daily lifestyle or your peace-of-mind. In the above example, different people will have different thresholds. There is no right or wrong answer here!

ANOTHER SIMPLE CALCULATION....

OK. Let's say you're ok with a loss threshold of $1000 or less. Now you can choose between a $1000 deductible or a $500 deductible. Here's all you have to do.

1. Find the premium difference between the two.
2. Let's say you save $80 a year in premium to take the $1000 deductible.
   
3. Now look at the DIFFERENCE between the 2 deductibles which is $500. It would take you over 6 years ($80/yr x 6 years = $480 ) to save the DIFFERENCE between the deductibles.
   
4. Now you simply ask yourself, "Do I think I'll have more than 1 claim in the next 6 years?"
   
5. If the answer is yes, you should probably take the lower ($500) deductible.
   
6. If the answer is no, then the higher deductible ($1000) probably makes more sense.

If you're still confused by this, just give me a call and I'll walk you through it....

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

Read More

How Much Homeowners Insurance Do You REALLY Need?

Your home is likely your single largest investment. Protecting it properly is critical to your financial security. If you’ve only been guessing until now, then guess no longer.

Insurance for your home need not be a shot in the dark. There are simple ways to determine EXACTLY how much insurance you should have.

Even though insurance has been part of our culture for over 100 years, to most people – It’s still a just a mystery. And because they don’t understand it, a lot of people think they’re being “ripped off” by the Insurance Industry; aka “The Club”

I want to end that for you.

I'm an industry "insider": A licensed member of “The Club”
I’ve been inside the insurance business for over 30 years and I know it like the back of my hand: From policy to claims and back again.
I've sold insurance.
I've studied it.
I've discovered what makes "good insurance" -- and what makes "bad insurance".

I know that not all insurance is "created equal".

If you’re not properly insuring your home you could be either wasting needless premium money on excess coverage or you could be setting yourself up for a severely UNDERINSURED loss that could cost you tens of THOUSANDS of dollars or even MORE!

I’ve been around the insurance business for a long time and I’ve seen it all.

• I’ve seen people standing next to smoldering ashes that just hours before was their home and everything they own.
• I’ve comforted those who have just received a 50-page lawsuit because their sprinkler flooded their neighbor’s yard or their dog bit a friend’s child.
• I’ve reassured clients that they have coverage after their toilet flooded their house over an entire 3-day weekend.
• I’ve seen clean-up bills for just water damage in excess of $100,000.

And I’ve been able to pay all these losses for these very frightened people because we made sure that their insurance was right for them – That it would be there to “write the check” should these shattering losses happen to them!

Homeowners insurance, when purchased properly, can give you the security of continuing life as you know it in the event of a catastrophic casualty or liability loss.

Homeowners insurance is POWERFUL and very comprehensive in the scope of coverage it offers.

Here’s a little overview….

• It protects your home
• It protects your stuff at home
• It protects your stuff on vacation
• It protects your stuff in the USA
• It protects stuff you may have in a storage facility
• It protects your stuff all over the world !
• Yes, that’s right… you lose your stuff ANYWHERE on the planet…you’re covered just as you are in your own backyard.
• It protects your CHECKS & CREDIT CARDS if they’re stolen
• It gives you Liability protection....that’s when you get sued
• It gives you protection for stuff you’d never imagine.
• Here’s just a few examples
  
• Money, Bank Notes, Coins (including collections) up to $200
• Property used or intended to be used in business
• On premises up to $1,000
• Off premises up to $250
• Watercraft and equipment up to $1,000
• Securities, Checks, Traveler’s Checks up to $1,000
• Trailers (not used with watercraft) up to $1,000· Stamps, trading cards, comic books (including collections) up to $2,500
• Theft loss of:
  
• Jewelry and Furs up to $1,000
• Firearms up to $2,500
• Silverware and Goldware up to $2,500
• Rugs, tapestry, wall hangings
• Per Item up to $5,000
• Aggregate up to $10,000
• Home Computers up to $5,000

WOW, you say!
That’s quite a list.
Yes it is…and there’s MORE…
Yes, there’s a LOT more…
But before we get to that … the WHAT and HOW TO BUY Homeowners Insurance,
let’s talk about the WHY!!
Why would anyone need or want Homeowners Insurance?

Well, in most cases you’re required to have it by your lender. Now you could get just about ay old insurance company to insure your home to satisfy your lender. But…

Here’s a question for you…
WHY would you want to trust your biggest investment to
just any old insurance company ?
And hopefully your answers is…
“I don’t,”

You’re sitting outside on a cool October night. You have a warm, wool blanket wrapped around you and around you is the sound of people working, cleaning, the hum of a diesel engine. The blanket was given to you by a firefighter, the people working are firefighters , and the hum of the diesel engine is the fire truck that’s just dumped 30,000 gallons of water on your, now black and flattened residence.

You’re just a little freaked out but you’re ok. So is everyone else who was in the house with you. All that is ok, but EVERYTHING YOU OWN is toasted to a crispy black residue that’s still smoldering from the heat of the fire. It’s all gone: your home, your garage, your favorite chair, your entire wardrobe, big-screen television AND THE REMOTE (now I’m starting to sweat), stereo system, all the dishes in your kitchen, furniture, bed linins, towels, silverware, blender, your Xbox, your digital camera and last, but not least…. your treasured iPod

You see, here’s the problem with all those ASSETS…. You probably saved over a long periof of time to purchase your house. You bought your stuff just a little at a time. You know, a CD here, a blender there, a couple of jackets somewhere else. Then, before you know it, it’s all there cluttering up your drawers, your closet and every other space in your place.
Would you buy scuba or skydiving equipment from “Jimmy’s Discount Dangerous Sport Second-Hand Equipment Store?” Of course you wouldn’t. You wouldn’t trust your life to used, junk equipment.

You also wouldn’t buy it without thoroughly understanding how it works and making sure it would work to your specifications and your individual needs.
Properly structured Homeowners Insurance provides protection for your house, your personal property,
AND Protection in case of a liability lawsuit.

“WHAT?!?!” you say. “Lawsuit ! !”
Yep, lawsuit. Could it happen to you? The answer is…
Of course it could ! !

But we’ll talk about that in a minute. So….

Let’s talk about the nitty-gritty of Homeowners Insurance. There’s certainly not room here in this report to cover all of it, but I promise, that when you’re done you’ll know more about homeowners insurance than 95% of the planet. Having a good handle on your insurance decisions is the only way to best prevent problems and surprises at claim time.
There’s three main parts to your homeowners coverage: 1. Coverage for the house 2. Coverage for your stuff 3. Liability coverage

Let’s take these on one at a time.

COVERAGE FOR YOUR HOUSE (the structure)

This is probably the least understood of the three. And the biggest question is HOW MUCH? How much coverage to I REALLY NEED to properly and reasonably cover my home?

It’s really a simple answer. This is probably worth the entire time you’d spend reading 10 of these POSTS.

You need just enough coverage to rebuild your house.

Here’s what you DON’T NEED! You DON’T NEED to insure it for its market value (what you could sell it for). You also DON’T NEED to insure it up to the LOAN AMOUNT. Both of these numbers have NOTHING TO DO with the cost to rebuild your house.

If you determine that you need $200,000 to rebuild your house and your lender tells you that you have to insure it for $300,000 because that’s the amount of your loan. You tell them that you know different! If you can’t get this through their thick heads, call me. I’ll take care of it for you. There’s a law I can cite to them that will cool their jets in a hurry. (And I’ve done it many times in my 3 decades of helping my policyholders)
The cost of lumber can fluctuate wildly depending on the season.
So how much do I need to rebuild my house?

That’s the magic question, for sure! The answer is that you calculate it by using cost per square foot. You’ll need to know how many square feet of living space you have. Generally, an appropriately sized garage is included in the cost per square foot. For example, if you live in a 800-1000 square foot house, you’ll likely have a 1 car garage. If you live in a 4000 square foot house, you’ll usually have a 3 or maybe even a 4 car garage.

Ideally you’d like to get a licensed contractor to your house to estimate that for you. Get one who is currently building houses in your area. Believe me, he knows the cost.

Remember though, EVERY HOUSE IS DIFFERENT!
I have several contractors insured and I keep up with them on the current cost of construction in my area. I hesitate to just give you a number here as it changes all the time and you need to tweak it a little based on the configuration of your house. For example, if your house is a track house, (one that was built among a bunch of others that are about the same) your cost of construction will probably be less than if you lived in a custom house. You have to ask questions like these:

• Do I have carpet or marble tile?
• Do I have a central vacuum system?
• Do I have a composition shingle roof or concrete tile?
• Is my kitchen standard or custom?
• Do I have central air conditioning, ceiling fans, custom wood stair rails, or granite counter tops in the kitchen?

With just a quick phone call to my office, we’ll be happy to help you determine your cost per square foot.

Another common point of confusion is that people think they need to insure their house for it’s market value. NOT SO! Your house is (almost) always going to be worth more than it takes to build it. Remember there’s value in your land, neighborhood, schools, view, etc. All that is unaffected by the loss of your home. And remember this….

NO MATTER HOW MUCH COVERAGE YOU PUT ON YOUR HOUSE, THE INSURANCE COMPANY WILL ONLY PAY YOU WHAT IT COSTS TO REBUILD IT.

So here’s how a typical house can look. Remember there’s 3 key numbers associated with your house: Market Value, Amount of your Mortgage, and Rebuilding Cost.

If your 2500 square foot home has a market value of $650,000 and your local building costs are $200/square foot, your rebuilding cost would be $500,000 (2500 x 200). Your mortgage could be $120,000, $400,000 or $0. Regardless of the loan amount or the market value, you’d want to have approximately $500,000 of insurance on that house. There’s some tricky thinking here that you need to consider.
The cost of construction isn’t static, it’s always changing. Lumber cost changes almost daily, as an area builds more and less through changes in economy, the cost of subcontractors will fluctuate. At the end of this report you’ll see a special feature that my office offers you to help you be sure that you don’t get caught short as construction costs rise and fall. Look for this picture. -->

Usually your house has what’s called ALL RISK coverage. That means that, except for a few exclusions, anything that happens to your house is covered. If there’s a loss to your house, the adjuster looks at the list of exclusions and if what happened isn’t there… it’s probably going to be covered. Remember that all insurance companies are different and it’s the policy contract that decides, not what I say here!

Some common exclusions include flood, earthquake, riot, freezing of pipes in an unoccupied, vacant, or under-construction building, vandalism and malicious mischief if the building has been vacant for more than 30 days, normal wear and tear, intentional damage, damage from animals, birds, or fish, and war. These are just a sampling of exclusions. See your policy for your actual exclusions.

Equally as important as the coverage for your home is your coverage for your stuff – Your Personal Property.


COVERAGE FOR YOUR STUFF

If your stuff is stolen from your car,
IT’S COVERED under your Homeowners Insurance!!!
There might be damage to your car though. THAT’S covered under your auto insurance. I’m sure you have car insurance ! ! ! (see 10 Ways to Beat the High Cost of Auto Insurance (Part 1) & (Part 2) )

This is the coverage that insures your personal property: Your sofa, dishes, clothes, television, stereo, art work, silver, china, watches, jewelry, blender and your socks. Generally, the amount of coverage the insurance company gives you for this is a percentage of the amount you have on the house. Usually it’s 75%. If you carry $200,000 on your home, then you’ll have an additional $150,000 for coverage on your personal property. Again, see your policy for your exact limits.

Most of the time, this is enough. Occasionally you’ll need more. You can’t reduce it, but there’s usually a provision to increase the coverage if you need to.

Here’s an important distinction on the actual coverages for your personal property as compared to the coverage for your house. You’ll remember that your house is covered for all losses EXCEPT for those specifically excluded. Your personal property is only covered for a specific list of losses. Here’s a typical list:

• Fire or lightning
• Weight of ice, snow or sleet
• Explosion
• Aircraft & vehicles
• Smoke
• Sudden and accidental tearing or bulging of heating or cooling systems
• Windstorm or hail
• Theft
• Riot or civil commotion
• Falling objects
• Vandalism or malicious mischief
• Sudden and accidental water discharge from plumbing or appliances
• Freezing of plumbing systems

****Once again it’s important to check your own policy language for the specific coverages for your personal property. If you’re not sure, just give us a call. 619-670-1000

Now before we talk a little about the most important portion of your homeowners policy -- Your Liability Coverage, let me mention one VERY COMMON MISCONCEPTION.

Homeowners insurance DOES NOT cover the mortgage if one of the owners should die. You’ll need MORTGAGE INSURANCE to cover that.

Mortgage Insurance is simply life insurance that’s designed to pay off the mortgage at the death of one of the owners.

Life insurance can be somewhat overwhelming to purchase. You’re so afraid of
making a mistake.
It’s easy to incorporate your mortgage insurance TOGETHER
with your regular Life Insurance and SAVE TONS OF MONEY in the process.
Learn how with

7 Things You Need To Know BEFORE You Buy Life Insurance

If you own a home and anyone depends on your income to keep the home then mortgage insurance is a must for you! You have far too much invested in your home to allow those you love and provide for to risk having to lose the house if one of the bread winners dies.

It’s simple and easy and probably NOT AS EXPENSIVE AS YOU MIGHT THINK.

You can usually get mortgage insurance for your home for about the price of a DVD a month!

Think about it. Safety, security and peace of mind for about the cost of a DVD a month!


Liability Coverage

Remember we were talking about that LAWSUIT!?!?! Yes, it could happen to you! There’s ALSO coverage in your HOMEOWNERS INSURANCE for THAT !

Liability is the portion of your homeowners insurance that protects your home, your assets, your retirement savings and your future income!

Someone slips and falls in your place,
Breaks their leg, or cuts their hand.
(Bummer if it’s a Plastic Surgeon)
Your policy will pay whatever you’re legally liable to pay. (up to the limit of the policy, of course) That’s why at least a $1,000,000 limit is important there (especially if you live in California). Many offices will let you walk away with the standard $100,000. For just an extra $7/month, you get TEN TIMES the coverage -- Almost a crime not to take that.

If you own your home you should probably consider a Liability Umbrella. It gives you $1,000,000 coverage on your house and all your personal vehicles. You have just too much equity in your house and too much of your net worth tied up there to risk it by saving a few dollars a month.

Let me tell you a story….

Just this year a policyholder called me and told me that they were being sued because their son’s girlfriend accidentally let their dog out of the back yard. The dog made a beeline across the street and kicked the stuffing out of the neighbor’s dog. The homeowner was being sued by the neighbor for veterinarian bills that exceeded $3000 and for mental anguish, stress, and… well, you know the drill. Fortunately the homeowner had not only their homeowners insurance but also a Liability Umbrella standing between this crazy neighbor and everything they owned. Without that, this could have been their problem…

They could have been paying off this “little problem” for years. They could have risked everything they own in addition to their FUTURE EARNINGS by not having the foresight to get HOMEOWNERS INSURANCE and a LIABILITY UMBRELLA policy.

You can insure your home, your personal property and your liability exposure in one simple policy.

BUT WAIT ! ! ! ! THERE’S EVEN MORE ! ! !
Homeowners insurance also includes Medical Payment coverage. That pays for MEDICAL EXPENSES up to the limits of the policy for people who are on your premises with your permission and accidentally injured. And ALSO for people injured by your activities. Coverage doesn’t pay for medical expenses for you or members of your family that live with you.

BUT WAIT ! ! ! ! THERE’S MORE!!!!!!
You also get what’s called LOSS OF USE or ADDITIONAL LIVING EXPENSES coverage. Whenever your place is rendered UNINHABITABLE because of a covered loss, we’ll pay the cost to put you up someplace else while your place is being repaired. I’ve actually written checks to people sitting outside their burned residence to pay for a hotel. VERY COOL!!!!
This pays up to 24 MONTHS! ! Hopefully you won’t be out that long,
but it’s THERE IF YOU NEED IT ! ! ! !


BUT WAIT ! ! ! ! THERE’S SOME MORE!!!!!!
You know how things just get more expensive every year. We’ll automatically increase the amount of your coverage every month FOR FREE until your next renewal to keep pace with inflation. When you renew you policy each year, it will be for the newer IMPROVED amount of coverage.


BUT WAIT ! ! ! ! THERE’S STILL MORE!!!!!! (starting to sound like one of those Ginsu Knife Commercials..?)
I mentioned this up above but you might have missed it. If someone steals your checks or credit cards and you suffer loss cuz they’re out there spending YOUR MONEY, you’ll have coverage for that up to $1000.
“WOW”, you say!
And all that’s included in the Homeowners Insurance we provide in our office.

Hey, Let’s talk about Deductibles for a second….
The deductible is the portion of a covered loss that is your responsibility. They are typically available in amounts such as $250, $500, $750, or $1000.For example, if you had a $500 deductible, you would need to pay the first $500 of the covered loss and we’d pay the rest.Generally speaking, higher deductibles lower your premium, but increase the amount you must pay out of your own pocket if a covered loss occurs. Ask yourself how much you are willing to pay in order to save on premium. ... you know what, just ask us when you're in the office and we'll show you how simple it is to calculate.

SO what’s the best way to buy HOMEOWNERS INSURANCE ?


RULE #1 – Don’t over-insure and don’t under-insure. Get the right amount of coverage. Yes, you’ll have to estimate how much stuff you have.

We have convenient calculators in our office to estimate this for you.

RULE #2 – Take the biggest deductible you can afford. (within reason). Increasing your deductible from just $500 to $1000 will usually save you about $75 per year. Let us help you do the math to see how long it takes you to absorb the difference in the two deductibles.

We can help you walk thru those numbers and find the best blend of deductible and price... Takes about 3 minutes.

RULE #3 – Get at least $500,000 of liability coverage (especially if you live in CALIFORNIA!) People just love to sue in good old CaliforNyeYay.

You need someone who explains and helps you with this. It’s just what we do...

RULE #4 – Only get policies with REPLACEMENT COST coverage for your contents. (all of the policies we offer in our agency have this provision.) This is a cool one. Provision sez that if you suffer loss to your stuff, and you replace it, we’ll pay you what it costs to get a brand new one rather than what your old one was worth.

We automatically add this to all your policies unless (for some reason) you tell us not to.Looks like this. Someone steals your 8 year old TV set that’s worth $75 and a new one is $350, we’ll pay you based on the $350 rather than the $75! VERY COOL!

RULE #5 – Take the PERSONAL LIABILITY option in the LIABILITY SECTION of your policy. That gives you coverage for things like slander and libel. Californian’s, for some crazy reason, get all bent out of shape if you talk to them or about them the wrong way.

We automatically add this one too. Unless you don’t want it...

RULE #6 – Don’t forget to check out things like Special insurance for your baseball card or Precious Moments collections. There’s limits on those kinds of things. You might also need to look into waterbed liability, or business liability (if you run any kind of business out of your home.) And don’t forget EARTHQUAKE coverage.

We’ll walk you thru a checklist of all those things just to make sure we don’t forget anything. You may not need any of them, but we just want to be sure.

RULE #7 – Only get a homeowners policy with GUARANTEED EXTRA REPLACEMENT COST (GERC) coverage for your home. (the structure!) This is SO IMPORTANT. We offer policies that will pay you up to an EXTRA 20% above the actual amount of coverage. For example, let’s say you’ve lost your 2500 square foot home to a fire and it was insured for $200 a foot -- $250,000. But there’s a recent spike in the cost of materials and the real cost comes to $285,000. OUCH! Looks like you’re going to have to dig into your pocket for $35,000! Not so with the policies we write in our office. Our company offers you, AT NO EXTRA CHARGE the GUARANTEED EXTRA REPLACEMENT COVERAGE at an additional 20%. Your $250,000 will actually pay you up to $300,000 to rebuild your home.

With GERC, your policy for $250,000 will actually pay you up to $300,000 to rebuild you house. And OH BY THE WAY... This is included automatically at no additional premium on ALL of our homeowners policies!

And don’t forget EARTHQUAKE coverage. I know there’s a lot to think about. So let us help you remember all of it. One step at a time.

This can be so simple and easy to do.

We do all the work for you and in less than 30 minutes, you’ll have protected your home, your personal property, your current assets and your future earnings.

Why somebody wouldn’t buy HOMEOWNERS INSURANCE this way is simply beyond me.
BUT LET ME MAKE A LITTLE EASIER FOR YOU…

In our agency we offer you 5 different ways to pay for this. You have your choice of Annual, Quarterly, Semi-annual, monthly and SPECIAL MONTHLY…
“So what’s so special about SPECIAL MONTHLY,” you might ask.
It’s special cuz it’s just so insanely easy.

We set it up for you and your monthly payment comes right out of your checking account: Same day; Every month.

(of course of your insurance is already part of your house payment, we’ll set things up so that continues just as it’s always been for you)

So, here’s what you get…

• Coverage for your home: The right amount so you sleep well.
• GUARANTEED EXTRA REPLACEMENT COST for your home. AN ADDITIONAL 20%
• Coverage for your stuff: TV, stereo, blender, dishes, clothes, etc.
• This coverage at REPLACEMENT COST (as I explained above)
• Liability Protection. (assets AND your future earnings)
• A place to live while we put your place back together
• We’ll walk you thru the whole process (probably will take less than 30 minutes)
• Confidence that you’re buying the insurance you need: NOTHING MORE, NOTHING LESS

It Just doesn’t get any better -
OR EASIER - than that…

You’ve got everything to gain and NOTHING to lose.
I look forward to talking with you soon!

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:mailto:Dennis@DennisVolz.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

This post contains only a general description of coverages and is not your insurance contract. Details of coverage or limits can vary. All coverages are determined by the terms, provisions, exclusions and conditions of your policy along with any endorsements.

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