Did you know? Facts, tips and tidbits about your personal insurance.
Higher limits of liability may be available. The liability limits on your policy are key to your financial protection. While most consumers know their deductibles, and the impact on their premium, many haven’t looked at the liability limits in years, or ever! Check your declarations page for your limits, and consider updating them.
Home-based businesses may be exposed to liability claims. Most home policies offer little (if any) coverage for a home-based business. Your business likely exposes you to liability claims, as well as the loss of any business property you might have on your premises.
Policy language may change from year to year. Be sure to check your policy for coverage changes or enhancements that may have occurred since your last renewal from your insurance carrier. Carriers will notify you of such changes with your renewal, so make sure to review the package when it arrives and call us if you have any questions.
You can check your insurer’s rating. Insurance company rating information is available at the A.M. Best Company’s Official Website (www.ambest.com). The A.M. Best Company is a worldwide insurance rating and information agency with more than 100 years of history and is one of the most recognized resources for financial ratings of insurance carriers.
You can purchase water back-up coverage on your home policy. Virtually all homeowner’s policies exclude water damage due to the back-up of sewers and/or drains. You can, however, buy back this coverage as an endorsement in various amounts. This will cover you for back up of water due to sump-pump failure, power outages, and most other water damage originating from an interior sewer or drain.
Flood and earthquake are excluded from home insurance policies. Flood coverage, unlike water back-up coverage, generally cannot be endorsed on a homeowner’s policy. You can, however, purchase flood insurance from a local agent (including Horton), providing your community participates in the National Flood Insurance Program, as most communities do. The rates are established by the NFIP and FEMA, and vary by flood zone (every home is in a flood zone). The rates can be surprisingly affordable, particularly for homes in moderate risk areas that qualify for the “Preferred Risk” program. Earthquake coverage is also excluded on most homeowner’s policies.This coverage can be endorsed onto the policy for an additional premium for homes in most locations.
Your homeowners insurance could include ID Theft Coverage. Many preferred homeowners policies now include Identity Theft Coverage as a standard feature or make this coverage available for a very nominal fee. ID Theft Coverage will pay up to a specified dollar amount for your actual losses related to the theft of your identity. Most policies will also include Identity Restoration, which will assign a case worker to assist you in the process of restoring your identity and preventing identity theft from reoccurring in the future!
Your homeowners policy could cover valuables. Most homeowner’s policies have limited peril coverage and internal limits for items such as jewelry, watches, furs, and fine arts. While these vary by policy and company, they are often limited to $2500 or less, with per item limits of $1000. These items can be covered by purchasing riders – either on a per-item or blanket basis.
The importance of household inventory. If your home was damaged or destroyed by a fire, natural disaster, or theft, could you recall every item you own? The answer from most of us would be a resounding “No.” A household inventory done room by room can be invaluable after a loss, making the claim process substantially easier by ensuring items are not overlooked or just plain forgotten. Your client service specialist can provide you with an inventory checklist via e-mail or U.S. mail. In addition to an itemized list, a video recording of your property, or at the very least, photos should be taken. These photos, video, and written inventory should be removed from your home and stored in an off-site and secure location.
Do you know what is covered if you rent a car? Most auto policies will extend to a vehicle you rent as a substitute vehicle, one which you are renting in place of your regularly driven(and insured) vehicle. This applies whether you rent a vehicle because yours is being repaired, or you are renting while away on vacation. What may not be covered are the charges you might incur due to the rental company’s “loss of use” (rental revenue) of the rental car, should you damage it during the rental period. Some auto policies include loss of use coverage, while others offer it as an endorsement. Check your policy, or give us a call to be sure.
Recreational vehicles are insured differently. Watercraft, snowmobiles, ATV’s, motorcycles, and other recreational vehicles all present different insurance challenges. While some very small boats might be covered under a homeowner’s policy, most watercraft, RV’s, and other motorized vehicles will need to be covered under a separate policy or by endorsement to your homeowners or auto policy.
Is a Personal Umbrella Policy Right for Me?
- Have you noticed that our society is more litigious than ever? It seems that we cannot turn on the television, listen to the radio, or read the paper without hearing about someone suing someone else. These lawsuits range from the very legitimate to the amazingly bizarre, and everything in between. Judgment awards have reached record numbers, with no end in sight. The liability limits you have on your auto, home or specialty policy may go as high as $500,000, or in some cases, $1 million. While these limits may seem huge, and are certainly adequate to cover most claims, it is not entirely uncommon for these limits to be completely exhausted, leaving you and your assets at risk. This responsibility would even include future earnings! An “Umbrella” or “excess” liability policy begins where your primary policy’s liability limits end.
- Umbrella policies can extend your coverage limits an additional $1 to $5 million (or more) over the limits of your homeowners, auto, motorized or specialty vehicles. You also may be able to add on uninsured/underinsured motorist coverage on your umbrella policy to further protect you and family members.
- Certain exposures, such as swimming pools, trampolines, or inexperienced drivers make a very compelling case to consider this valuable protection. This coverage can often be added for under $200 annually, for one million dollars of liability protection! Why not call your client service specialist to review your coverage, and receive a quote to add on this valuable coverage today.
Replacement Cost vs. Market Value
- One of the most common questions that customers ask regarding their home relates to the proper amount of insurance coverage needed to adequately protect their home. Most people think of a home value in terms of the market value (or simply what it might sell for), this amount rarely corresponds to what the home should be insured for. While many of us have seen the market value of our homes decline in recent years, the cost to rebuild has continued to increase. Materials are in shorter supply as suppliers keep their inventories low. In addition, the reconstruction cost is often 30% higher than a newly constructed home that is built on an empty lot in a new subdivision. There are no economies of scale to negotiate labor rates or preferred pricing for materials.
- The insurance industry utilizes a very analytical formula to determine the cost to replace your home, integrating such factors as zip code, square footage, type of construction, current labor costs, and building code changes. This formula is continuously updated, and includes actual claim data used in settling partial and total losses to improve the accuracy even further.
- Are you concerned that your home is not insured properly (either too much or too little)? Give your Horton client service specialist a call today if you wish to have the replacement cost of your home recalculated.
Your Annual Review
- As your life changes, we want to make sure that your insurance protection keeps pace. We have implemented an online tool allowing you to comprehensively review your current insurance program to make sure your information is accurate. We highly recommend you take advantage of this valuable tool. Visit www.thehortongroup.com, click on “Horton 24/7 Service” and choose “Horton Annual Review Form.”
For more information regarding this newsletter, contact Ron Assise, CIC, President of Horton Personal Insurance, The Horton Group, at 800.981.4700 or via email at ron.assise@thehortongroup.com.