Vacation home insurance

Why YOU NEED TO INSURE YOUR VACTION HOME

   After all, you aren't there all the time. You don't have nearly as much personal property there. Do you really need to insure it? Yes. Yes you do.

 You're right, you aren't there all the time. If no one is there, how will anyone notice a leak? Or catch a fire before it blazes out of control? What if you get burglarized? Chances are no one will be there to prevent or at least handle these situations on a timely basis. This means the damage could be much worse than it would have been if someone lived there full time. These are high risks you don't want to pay for on your own. 

   Many vacation homes are in rural or beach areas. Let's say you are there when one of those situations occurs, but the fire /police departments are miles away and they take 30 minutes to get there. A fire can destroy an entire home in that amount of time. A leak can destroy your entire flooring. A burglar can empty your home. These are a high risks you don't want to pay for on your own. 

   What if you rent it out or let friends/family stay there when you are not there?  Somone trips over a rug and breaks their leg. Or someone starts a fire in the kitchen and can't get it out. You can be liable for injuries and or damages, even if you are not there. These are high risks you don't want to pay for on your own.

   You have worked hard to buy that secondary home for your family to enjoy. If something happens, then yes, you want to make sure you have adequate coverage for that vacation home, just like you do for your primary home. 

Just like your primary home insurance, there are many optional coverages and many carriers to choose from. Talk to your agent and work through what you want and need in coverage. Most primary home policies will not extend much coverage to a secondary property. So you will need a seperate policy for your vacation home.

There are few options I urge you to consider.

Personal Umbrella Policy (PUP): This is an extra Liability policy that will pick up where your home/auto policies stop. So if you have a liability claim of $500,000 and you only have $300,000 in Liability coverage on your secondary home policy, your PUP will kick in and cover the rest. The more properties, cars and toys (boats, motorcycles...) you have, the higher the premium will be for the PUP. But the added coverage can be a financial life saver.

Fair Rental Income: If you are renting out your secondary home, I highly recommend this coverage. If the home becomes uninhabitable (therefore un-rentable) due to a covered loss, you can be paid the rents you would lose during the time it takes to repair the damage. 

Coverge Amount: As I explained up above, you are more likely to have extensive damage from a fire, leak or burglary because you are not there full time. Make sure you have enough dwelling coverage to cover a total loss. Don't go cheap because you don't use the home as often. You need complete coverage because of the lack of time you spend there. 

Every carrier is a different in what they will/will not cover, what type of policies they will/will not write. So, I wouldn't get your heart set on "bundling" by trying to make sure your secondary home policy is with the same carrier as your primary home policy. That is not always an option (your primary home carrier may not even write secondary homes). Sometimes they won't have the best rate. So be open to the quotes your agent offers you. Of course, if you are with a captive carrier, you won't have many options. Again- I urge you to find an independent agent and see what they have to offer. 

 If you are looking for a Texas agent or just have questions about your insurance, please give Brockman Premier Insurance a call at 877-987-8683 or email brian@brockmanpremier.com.

Or visit our website at www.brockmanpremierins.com

   

Boat Insurance

Are you ready to sail away?

There are a few weeks left in summer. As you pack up your family to go sailing on the lake, do you know if you are ready? Are you covered?
   Watercraft insurance coverage goes beyond the scope of a standard home or auto policy to include Roadside Assistance, which covers towing of your boat or personal watercraft for free, as long as your trailer is covered; On-Water Towing, in case you're stranded on the water; and Uninsured Boaters coverage. Many carriers have additional coverage like Fuel Spill Liability and Wreckage Removal, even Pet injury. Without watercraft insurance coverage, you may end up getting stuck with the bill for cleanups and removals. Personal Effects and Fishing Equipment coverage are also available. They do not come as basic coverage on all watercraft policies, so make sure you talk to your agent about your coverage. When you file a claim is NOT the best time to find out you were not covered when you thought you were!
   Most carriers have several available discounts also, similar to auto policies. If you are a homeowner, have good driving history (no tickets/accidents), if you are the original owner, if you pay in full, if you have taken a safety course. Each carrier is different so be sure to talk with your agent about what you may qualify for.

   Summer is a great time to have fun out on the lake. Make sure you are protected through your insurance policy. But also make sure you are following boating safety processes also. Did you know someone is injured or killed in a boating accident every 2 1/2 hours? The chance of drowning while wearing a life jacket is 1 in 66. The chance of drowning while not wearing a life jacket is 1 in 11.  These statistics, along with great boating safety advice can be found through the US Coast Guard's Boating Safety Resource Center.

Have a great, but safe summer!
If you need answers or a quote on your insurance, please contact Brockman Premier Insurance.
We love to Keep You Insured!

Insurance Renewals

New Year, New Insurance? 

   So 2016 has begun. I don't know about you, but I start re-evaluating at the start of a new year. You know, clean slate and all. It's easy to get caught up in starting anew. But when it comes to your insurance, this is not always the best idea. It is always a good idea to re-evaluate your insurance (when you are up for renewal, not just because it's a new year). But switching is not always the smartest option. There are many things to consider when looking at your renewal.

Have you had any lifestyle changes?

Did you get married? Divorced? Did you have a new baby? Or did one of your kids move out on their own? New job? New contact information? Did you move? (seriously, I have had clients forget to tell us they moved!) These changes can affect your pricing as well as the type and amount of coverage you may need.
   If you get married, your spouse is not automatically covered on your home insurance policy. If something happens and you are unable to take care of things, you want your spouse to be able to handle a claim for you. If you have a new baby, you need to think about life insurance. Do you need a policy or do you need to add coverage to the policy your currently have? If one of your kids moves out on their own, do they need renters insurance? Or it may be cost effective for them to be on their own auto policy. These factors can affect your coverage. Please talk to your agent if there have been any changes to your lifestyle.

Did you premium change?

   It happens. Premiums go up quite often, even if you didn't have a claim.This is not because of your agent. Please hear me when I tell you, your agent has no say in your insurance premiums. They did not raise your rates because they don't want your business. (I have actually had a client accuse me of raising their rates because I wanted to lose their business.)  Seriously!
    Carriers take rate changes. These rate changes have to be filed with and approved by the state Department of Insurance before they can be processed to the public customer. Again, your agent has no say in this process. If you are with an independent agency, your agent can re-shop your quotes. There may be some lower rates out there. Or you may find out that your carrier is still the best pricing for you. It isn't only about the cheapest insurance though. People often find a lower price. It happens. Just because your agent is an independent broker doesn't mean they have the lowest pricing every time. But please make sure the new quote gives you the coverage you need, not just the price you want.
    If your rates go down, you may look at increasing your coverage or lowering your deductibles. This can save you money in the long run and most likely won't cost you more that you were already paying in the short run.

How is your insurance carrier's financial stability?

   All insurance carriers are rated on their financial stability, based on their sales, customer service and claims history. You can search for your carrier's rating through Demotech  or AM Best You want a reputable carrier with a good rating. There are reasons carriers have unfavorable ratings so be aware.



   Your agent should be able to answer any questions you have about your coverage and your carrier. Know what coverage you need and make sure you have that coverage.  You need to know when your policy is renewing so you can be on the lookout for your renewal. When you get your renewal from your carrier, review it. Write down any questions you have and go over it with your agent. If you don't receive one, contact the carrier or your agent. You don't want the renewal to go by without at least looking at your coverage. It is ultimately your responsibility to make sure everything is set for a renewal. Some carriers inform the agent that a policy has not been paid, but unfortunately some don't let the agent know there is a problem. Look at emails and mail from your carrier so you don't miss any notices. Renewing your insurance policy (or policies) doesn't have to be an awful experience. Be aware of what you need to review and decide what you want to change (if anything). Partner with your agent. If they are not being much of a partner, find a new agent!

   If you have any questions about your insurance, please visit Brockman Premier Insurance,
email us or call 877-987-8683. We would love to help keep you insured!

Motorcycle Insurance

Make It Simple- Motorcycle Insurance  

This is our fifth installment in the Make It Simple series. Have you tried to read your insurance policy and just given up? Even your motorcycle policy can be very confusing! Let me try to simplify it for you.

Every policy (regardless of type) should have a Declarations Page, commonly referred to as the “Dec Page”. This page “declares” who you are, what property you have insured, your coverage choices and how much you are paying for this policy period.

Similar to Auto insurance, there are 2 types of coverage on your Motorcycle insurance policy; Coverage that protects the other party and coverage that protects you.

COVERAGE THAT PROTECTS THE OTHER PARTY

Bodily Injury Liability: protects you from having to pay medical costs, lost income and funeral expenses of other people involved in an accident that is your fault.

Property Damage Liability: Protects you from paying for the repair or replacement of the other person’s property.

There is no deductible for liability coverage. You have many amount options for this coverage. The state minimum in Texas is $30,000/$60,000/$30,000. This means you are covered for $30,000 per person/$60,000 per accident and $30,000 for property damage. I would suggest liability in higher limits than the state minimum. If you cause an accident and the liability claim is 75,000, if you have state minimum coverage, you will pay the additional $15,000 out of pocket. It is not expensive to increase your liability limits. Ask your agent to explain your options.

COVERAGE THAT PROTECTS YOU:

Uninsured/Underinsured Bodily Injury: covers your injuries (or death) in case the responsible party has little or no insurance. It also covers anyone riding on your motorcycle.

Uninsured/Underinsured Damage: covers damage to your motorcycle or property in case the responsible party has little or no insurance.  There is a state mandated $250 deductible in Texas for Uninsured/Underinsured motorist coverage.

Medical payments: covers medical or funeral expenses if you or anyone on your motorcycle is injured in an accident.

Personal Injury payments: covers medical or funeral expenses and possible lost wages if you or anyone riding on your motorcycle are injured in an accident.

Collision Coverage: pays for damage to your motorcycle if you hit another car/motorcycle or something else (like a tree or a building).  You must pay a deductible. Deductible amounts determine the cost of this coverage. The higher the deductible, the lower the premium.

Comprehensive Coverage: (also called Other than Collision) pays for damage to your motorcycle if something other than a collision occurs. This could be fire, theft, hit by an

Animal (yes, the animal hit your motorcycle!) The same type of deductible rules apply to Comprehensive as they do to Collision. They are two different deductibles though.

Optional Coverages that protect your motorcycle:

            Towing: pays for towing and some basic roadside assistance, depending on the carrier and towing option you choose.

            Trip Interruption: pays for lodging, alternative transportation and food while the motorcycle is being repaired in the event of a breakdown or covered loss that is more than 100 miles from home.

            Rental Reimbursement: pays for the cost of renting a car while yours is being repaired after an accident.

            Loan/Lease Gap Insurance: pays the difference between what you owe and the total value of your motorcycle if it is totaled in a claim. 

            Accessory Coverage: covers customer parts and equipment. You must have Collision and/or Comprehensive coverage as well.

             

So there you go. There are many factors in Motorcycle insurance, but they don't have to overwhelm you. If you have any questions, please contact your agent. That is what they are there for. If they cannot answer your questions, please contact us. 

   If you have questions about your home, auto and commercial insurance, please call Brockman Premier Insurance at 877-987-8683 or email us.

Visit our Website for more insurance tips and information.

Renters Insurance

Make It Simple- Renters Insurance

This is our fourth installment in the Make It Simple series. Have you tried to read your insurance policy and just given up? It can be very confusing! Let me try to simplify it for you.

Every policy (regardless of type) should have a Declarations Page, commonly referred to as the “Dec Page”. This page “declares” who you are, what property you have insured, your coverage choices and how much you are paying for this policy period.

Similar to Homeowners insurance, there are 2 types of coverage on your Renters insurance policy; Coverage that protects the other party and coverage that protects you.

Coverage that protects the other party:

Personal Liability: Covers you if someone is injured on your property due to your negligence.  It may help pay for treatment of their injuries and your legal costs.

Guest Medical Payments: May provide reasonable and necessary medical expenses to a guest on your property injured in an accident.

 

Coverage that protects you:

Personal Property:  This is your contents on the property. This can be written as Actual Cash Value (ACV) or Replacement Cost (RC) coverage. ACV coverage means your belongings are covered at the amount it would cost to replace them minus depreciation. So if you have a 5 year old tv that is stolen, you will receive the amount it would cost to replace the tv 5 years ago.  RC coverage means your belongings are covered at the amount it would cost to replace them at the time of the claim. So if you have a 5 year old tv that is stolen, you will receive the amount it would cost to replace the tv at todays cost.

Loss of Use:  May provide reimbursement for reasonable increases in living expenses (such as a hotel room or apt) due to a covered loss, if your rental home is uninhabitable.

Deductibles:  is the amount you pay out of pocket when you file a claim for a covered loss. You will have several options to choose from for your deductible. If you have a $500 deductible and a $6,000 loss, the insurance carrier would pay you $5,500 for the claim. A higher deductible will generally                                                             mean a lower premium and vice versa.

Additional coverage: You may be able to add optional coverage such as extra jewelry coverage or Identity theft restoration or increased coverage for business property.

For Parents of college students:  if you have kids living in dorm, remember- personal property coverage  on your home insurance policy will extend to the dorm. But it only covers up to 10% of your personal property coverage amount. A renters policy is an inexpensive way to make sure you child is covered at school!

    If you have questions about your home, auto and commercial insurance, please call Brockman Premier Insurance at 877-987-8683 or email us at  brian@brockmanpremier.com.
Please visit our website for more insurance tips and information.

Flood Insurance

Make it Simple- Flood Insurance

   Our next installment in the Make It Simple series is Flood Insurance. Consumers are rarely required to carry flood insurance unless they are in a Flood Zone. Then their mortgage house will most likely require they carry a flood insurance policy. But you should talk to your agent and make sure you know if you should have a flood policy or not, regardless of which zone you are in. 

   Your flood policy has a Dec page, just like every other insurance policy. It will “declare” who you are, what property you have covered, the insurance limits you have chosen and how much you are paying.

   Flood Insurance is backed through the federal government under the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program regardless of who you buy the policy from. There are various levels of coverage and deductibles to choose from. You will have a separate deductible for both the building and the contents. Unlike Home and Auto insurance, Flood insurance only covers You. There is no “other party” liability in flood coverage.

Building Coverage: This covers physical damage to your home due to rising flood waters, keeping in mind- two properties, or two acres, have to be flooded for flood insurance to pay out. This covers the building and its foundation, electrical and plumbing systems, a/c equipment, furnaces, walls, flooring… etc. The amount of building coverage should be based on your dwelling/replacement cost amount on your home insurance policy. The flood cannot be higher than the home insurance amount. It usually caps at $250,000 for residential homes.

Contents Coverage: This covers physical damage to personal property such as clothing, furniture, electronics, certain valuable items, such as artwork (up to $2500). It will not cover currency or precious metals.

Deductibles: The Building and Contents coverage have a separate deductible. The higher the deductible, the lower the premium, but the more you will pay out of pocket in the case of a claim.  

  That’s basically it for Flood coverage. It is a simpler Dec page than home and auto with fewer coverages to understand. But please make sure you do understand what it will and will not cover and how much coverage you need to have. 

   If you have questions about your home, auto and commercial insurance, please call Brockman Premier Insurance at 877-987-8683 or email us at brian@brockmanpremier.com.
Please visit our website for more insurance tips and information.

Homeowners insurance

Make it Simple-Homeowners Insurance

   Have you tried to read your insurance policy and just given up? It can be very confusing! This is our second post in our series, Make it Simple. Our goal is to help you understand your insurance policy.

    Every policy (regardless of type) should have a Declarations Page, commonly referred to as the “Dec Page”. This page “declares” who you are, what property you have insured, your coverage choices and how much you are paying for this policy period. 

There are 2 types of coverage on your Home insurance policy: Coverage that protects the other party and coverage that protects you.

Coverage that protects the other party:

Personal Liability: Covers you if someone is injured on your property due to your negligence.  It may help pay for their injuries and any legal costs.

Medical Payments: May provide reasonable and necessary medical expenses to a guest on your property injured in an accident.

Coverage that protects you:

Dwelling Value:  The dwelling value is set at or above the estimated replacement cost of the home, which includes the cost to haul away debris, and the contractor’s overhead & profits. This coverage can be written at Actual Cash Value (the value to rebuild the home minus depreciation based on the age of the home) or at Replacement Cost (value to rebuild the home at today’s quality and price). I rarely suggest ACV policies.

Other Structures:  covers buildings SEPARATE from the house—pool, fence, storage shed, detached garage, etc. This usually defaults at 10% dwelling value. 

Personal Property:  Contents of the home. This can also be written at ACV or Replacement cost coverage. If you have a total loss to the home, the carrier will write you a check for the total personal property, regardless of whether you have RC or ACV coverage. If you have a partial loss such as a small fire or theft, they will only give you the coverage you have paid for; meaning if you have ACV coverage, your 8 year old TV will only be covered for the value of an 8 year old TV. If you have Replacement Cost, your coverage will cover the cost of a new TV.

Loss of Use:  May provide reimbursement for reasonable increases in living expenses (such as a hotel room or apt) due to a covered loss, if your home is uninhabitable.

Deductibles:  is the amount you pay out of pocket when you file a claim for a covered loss. There are 2 main types of deductibles;

            Wind/Hail Deductible: This covers your home in the case of high winds or hails, usually seen during severe storms.

            All Other Perils Deductible: This covers your home for the remaining perils listed in your policy, such as fire or theft. Keep in mind, home insurance policies do not cover floods. You will have to buy a separate policy for flood insurance.

    If you have questions about your home, auto and commercial insurance, please call Brockman Premier Insurance at 877-987-8683 or email us at brian@brockmanpremier.com.
Please visit our website for more insurance tips and information.