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.

Insurance Review

An Updated Life Needs Updated Insurance Coverage!

Have you made any changes to your life? They can affect your insurance premium and coverage needs.
You should review you policies once a year. Make sure you have given your agent all of your updated information. You would be surprised how many clients I have had over the years who changed phone numbers and didn't let me know. The ones that always get me are the ones who move and don't think to tell me. A big part of your insurance rates are based on where you live. So if you move, your rates will most likely change. You must tell your agent!
Aside from your contact information, make sure your agent knows if you have had any additions to the family. Have you been married? had a baby? gone back to school? Changed jobs and now have a different commute? These can affect the type of coverage that is best suited for you.
During a review, your agent should go over your coverage to make sure it is still sufficient.

* Home Insurance

     * Dwelling coverage: This covers your actual home in the case of a loss. It is the cost of rebuilding your home -Have you made any additions or updates to the home? This can change the value of the dwelling.
     * Other Structures: This refers to fencing, sheds, pools. Any changes to these need to be disclosed.
     * Contents: This is your personal property. If you could pick up your house, turn it upside down and     shake it, what would fall out? This is your personal property. Have you bought computers or jewelry that may need extra coverage? Always keep receipts. This Home Inventory Log can be useful also.
      * Loss of use: This covers your expenses if you have damage to your home and you have to move out while it is being repaired or rebuilt.
     * Personal Liability: This covers you if something happens to a third party on your property - ie: your dog bites the neighbor's child. If you have  added dogs, a pool or a trampoline, your risk could warrant a higher amount of Liability coverage.
     * Medical Payments: This will cover you if someone has a minor scrape on your property - ie: the UPS person trips on your stairs.

* Auto Insurance

     * Have you changed your commute (possibly because of a new job)? Many carriers will give you better rates for lower annual mileage.

     * Liability: This covers the other party if you are found at fault for an accident. The minimum coverage is mandated by State law. In Texas, that would be $30/60/25. But you can add higher limits without breaking the bank. If you have state minimum, you will have $30k per person/ $60k per accident/$25k property damage that will pay out. If the accident is more costly, it comes out of your pocket.
     * Uninsured Motorist: This covers you if the other party was at fault and they don't have any or enough insurance to coverage the cost.
     * Personal Injury Protection vs. Medical Payments: PIP will cover medical costs plus some lost wages. Medical Payments will only cover medical costs. If you have retired recently, you should have Medical, not PIP. It is less expensive and PIP won't do you much if you have no wages to replace.
     * Comprehensive Coverage: This will cover you if something hits your car. IE: Hail, a fallen tree, flooding, an animal (we see this usually when a dear jumps in front of a car outside of cities). This will cover the cost of repairing your car. You decision here is what kind of deductible do you want? Higher deductible means lower insurance premium, but more out of pocket when there is an accident.
      * Collision Coverage: This will cover you if you hit something. ID: You run into a tree, a house, another car. Again, the decision here is how high a deductible do you want? You may also want to evaluate whether it is worth having the coverage at all. Many people with older cars that are not worth much find it isn't worth the cost of the coverage.
      * You can add Towing and Rental. Is this necessary? If your car is disabled in an accident, could you get around without it? Do you have another car? or can you borrow one? This can save you money on the premium.

* Commercial insurance

    * Have you started a new business? Even if it is just working out of your home, you need commercial coverage to protects your family and your business.
    * Have you bought a new car under the business name? Your personal auto policy won't cover it.
    * Have you hired employees? This needs a whole new level of coverage.

* Toys

    * Have you bought a new boat or motorcycle? Some Home policies will include boat coverage, but not if your agent doesn't know you have it. A motorcycle may be covered on your auto policy, but again, not if your agent doesn't know to add it. In most cases, both boats and motorcycles need to be on their own policy.

* Life Insurance

     * Will your life insurance policy ensure your spouse and kids can continue to live in the same lifestyle until the youngest child is out of college? This is a good basic rule to follow to get started.

Know your coverage. Know your needs. Make sure they match.
That is the best advice I can give you.
Call The Brockman Agency - we would love to walk you through your policies.  We will make sure you understand your coverage - and we may be able to save you some money while doing it!
Toll Free- 1-877-987-8683

Thanks for reading!
Nancy

Swimming Pool Liability

Staying Afloat!

It's summer time! For those of you with backyard pools, it is a busy time. Neighbors and kids come out of the woodwork to befriend you! But are you protected against accidents in that refreshing pool?
   We have all heard the horror stories of children getting hurt, or drowning in pools. In most cases, there was adult supervision. But the unthinkable still happened. What about when teens or adults get a little careless and run (oh!) and slip and fall? concussions and broken bones are sure to result.
   Are you covered? Yes, if you have a good Homeowner's policy in place. Your Homeowner's policy should carry Personal Liability protection. You can get different amounts of protection for different pricing. I suggest you review your coverage immediately with your Insurance agent. (or my agency, if you don't like your current agent!) 
   Many carriers will not insure homes with pools that have slides or diving boards. I don't know of a carrier who will insure a pool owner who's pool isn't fenced. Statistics have shown the rate of accidents in homes with pools is very high. And these days, where there is an accident, a lawsuit is sure to follow. Your Liability coverage will protect you. It will cover claims or lawsuits against your for bodily injury caused by an accident on your property (in this case in your pool). 
   But you must have safety precautions in place. If there is negligence on your part, the claim can be denied and you would be responsible for the payment, not your insurance company. 
Common Pool Safety tips include:
* Children must be supervised at all times. Drowning can happen in a few seconds. 
*Before allowing anyone in the pool, make sure there are no objects in or around the pool that could hinder their safety. Look for fallen tree branches or pool toys.
*Keep electrical devices away from the edge of the pool. 
*Evacuate the pool at the first sign of a storm. (especially if there is lightning!)
*Know the experience level of your swimmers. Who may need special supervision, who is allowed out of the shallow end...
*Extra supervision should be given to swimmers who are diving- off the edge or a diving board.
Maintaining a safe pool area can save you money and, more importantly, anguish over an accident. 
  
 Sometimes I have customers who insist on cutting insurance costs by lowering their Liability coverage. If they have a pool, I won't do it. That $50 you may save in premium could cost you $100,000, $200,000 or even more if there is an accident in your pool. I also suggest looking into a Personal Umbrella Policy for homeowners with swimming pools. An umbrella policy is extra Liability above and beyond the Personal Liability of a Homeowner's policy.  Again, it may cost you a little more money, but it could save you so much more in the case of an accident. 
   Insurance is there to protect you when something terrible happens. Look at it as protecti on, not an expense. Make sure you have enough Liability protection so you can enjoy your pool this summer with a little less worry.