Navigating the Home Insurance Mix-master- Arrgghh!
Have you ever tried to navigate the mix-master in an unfamiliar city? I have lived in and around the Dallas/Ft Worth metroplex most of my life and I still haven't mastered them. There was only one or two when I first started driving. Now it seems every suburb has it's own version of the Mix-master.
Have you tried to navigate shopping for Homeowner's Insurance lately? Same story. There used to be a few carriers- we all grew up with Allstate, State Farm and Farmers. Now, there are dozens and dozens. Talk about navigating confusing roads!
It is easy to get overwhelmed trying to figure out your policy. So I thought I would share a few of the questions we hear the most often:
* Why is my dwelling insured for so much more than I paid for the home?
Because your insurance covers the cost to REBUILD your home, not move into it. Most carriers have their own dwelling amount estimator. Agents plug in the specifics of a home- square ft, roof type, age, updates, etc and the estimator computes the cost that carrier is willing to pay to rebuild the home from foundation to roofing.
* Are my wedding rings covered?
Most policies will have some type of jewelry coverage. Most of them will be basic, $2500-$5000 in coverage. But if you want your precious jewelry covered, you will want to consider a scheduled personal property endorsement. It will cover specific pieces without a deductible. It will also cover theft and mysterious disappearance. The basic jewelry coverage in the policy will not. The same goes for your coin collection, art collection, gun collection (Hey - we are in Texas!)
*If my dog bites a neighbor, will my insurance cover it?
Yes. Your personal liability will cover this. As long as it is not a ineligible dog breed and there isn't an animal exclusion on the policy. Most carriers will have an ineligible dog breed list. Some will not write the home at all, while others will exclude liability in the case of a dog attack. Most of the dogs on the forbidden list are aggressive breeds; Pitbulls, Dobermans, Rottweilers, etc...
Believe me- not all insurance policies are the same! As independent agents, my husband and I see many different types of policies. I feel for people calling in with questions- the ones who are truly trying to understand what their coverage is. I know the time and effort it took us to learn the carriers and coverage. And it is what we do everyday, all day. We realize most of our clients don't have that kind of time. And you shouldn't have to. That is what we agents are for!
Got questions? Call or visit it our website:
Brockman Premier Insurance
local: 214-592-0859
toll free: 1-877-987-8683
What affects your insurance policy pricing?
The majority of Homeowners out there are seeing increases in their home insurance policies. I know here in Texas, home insurance prices have been on the rise for several years. We talk with so many frustrated people. Many of our leads/customers are people just looking to save some money anywhere they can. I know how frustrating it can be as a customer to get that renewal and see a price increase, knowing you didn't file a claim this year. why did your price go up? As Independent agents, our agency can offer several options. We cannot change insurance pricing. What we can do is explain what affects the pricing. You must keep in mind carriers do have the right to minimize the risk they are willing to take. If you have a loss, the carrier will be the one paying out the money to get you back in your home as good as new. And while we assume our carrier is there to protect us (isn't that what insurance is for?), they are also in this business to earn a living. So it makes good business sense that they minimize their risk. And that is what the pricing comes down to. How much the customer will need to pay to offset the carrier's potential risk of paying out a claim?
Dwelling Value
I cannot tell you how many times I have had someone ask me why their dwelling amount is so much higher than what they paid for the home. The best way I can explain this is the Dwelling amount is how much it would cost to completely rebuild your home from the ground up in case of a total loss. That is what your insurance is for. The make you whole again in the case of a loss. And you need to be protected against the risk of a total loss.
Credit
No one likes to talk about it, but there are very few Insurance Carriers who do not price their customers based on their credit score. Whether you pay your bills on time is a big factor in assessing risk. If you have been reported to a credit collector, the risk you will not pay your insurance is greater. It doesn't matter the reason. Your credit history will follow you around for up to 10 years.
Age, Marital status, Education
Many carriers will price their customers based on age, marital status and their education level. Younger customers are generally a riskier bet. They don't have much history, they are most likely not as well established. Married people are often considered a safer risk than single people. We all know that is not necessarily the case, but most studies will show it is. Education can be a factor, but most carriers do not weigh this on pricing.
Zip Code
This is mainly to assess related risk history in the same area. Homes on the coast are riskier than homes further inland. Homes in certain zip codes are more likely to have theft risk or vandalism, than homes in other zip codes.This is generally based on the history of the zip code and has little to do with the inhabitants.
Protection Class
Your PC is based on the ability to fight a fire if your home should burn. How close is the first responding fire station? How close is the nearest fire hydrant? A PC of 1 is the best, while a 10 is a higher risk and usually more expensive to insure. If the carrier will even in sure it. Many will not insure a PC of 9 or 10. And if it is a high value home (Over $750,000), many carriers require the first responding fire department be within 5 miles of the home.
Age and Condition of the home, when it was purchased
There are carriers who specialize in newer homes and there are carriers who specialize in older homes. The condition of the home, specifically the roof, the plumbing and the electrical can greatly affect the pricing. If you have and older home that has not been updated, you are limited in the carriers who will write your policy. Being a new home owner can get you a discount with most carriers but the discount will diminish after the first few years. But being a home owner with a long, stable history can lower your pricing for the life of the policy.
There are many other factors that go into your home insurance policy pricing. If you have questions about your policy- it's coverage and/or pricing- I urge you to call your agent. Agents are here to support you. We may not always give you the answer you like (yes your rates will go up sometimes!) But hopefully, we can answer your questions and help you understand why you are paying the price you are paying.
If your agent can't answer your questions, why don't you give us a try?
For information on our agency, please visit our website at www.wekeepuinsured.com
Or contact me at nancy@brockmanpremier.com
We would love to answer any questions you have and help keep you insured!
Nancy Brockman, Owner
Brockman Premier Insurance
