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Top 4 Benefits of Homeowners Insurance

There’s a lot going on when you’re buying a home. Trying to figure out the benefits of homeowners insurance shouldn’t add to that list, so we wanted to spell it out in a short article.

 

Benefit of Homeowners Insurance #1: It Lets You Own

One of the most important things to consider about homeowners insurance is that it’s required. According to the Insurance Information Institute, homeowners insurance is required by lenders because they want to protect their investment.

For example, let’s say a lender gave you a loan and let you go ahead and borrow the money without any insurance. Everything is fine for a few years… but someone accidentally leaves food in the oven and leaves the house. This causes a fire and it’s a total loss. The entire house is gone.

If there’s no insurance, that means you have to pony up all the money yourself to rebuild the home. Not only that, but you’re still paying off the loan from the lender! Do you have that type of money? The vast majority of us don’t. So you may choose to just walk away from the house and the loan.

Now the lender is in a tough spot. They have a loan with you that you aren’t paying. They can’t repossess the home because there’s nothing to repossess! It’s just an empty lot.

If you had insurance, this would be a different situation. The homeowners insurance would pay for the house to get rebuilt. You now have a brand new home and the lender has a home that is a tangible asset they can sell off in case you default on the loan.

So to summarize – the #1 benefit of homeowners insurance is it lets you buy a home!

 

Benefit of Homeowners Insurance #2: Peace of Mind

That scenario we just outlined would be devastating to go through. Could you imagine losing your entire home? Not only that – but if you didn’t have any insurance to rebuild the home, that means you now have double trouble. You don’t have a home and you don’t know how you’re going to afford another one – on top of filling it with a bunch of possessions again.

With homeowners insurance, you don’t need to worry about that. If something bad happens, you know you’re covered. Whether it’s something small or a complete loss, you’re covered. The company will cover both damage to the home and the possessions inside.

No, some things can’t be replaced. But at least you can get replacements for things like your furniture, appliances, etc.

 

Benefit of House Insurance #3: External Structures are Covered

Did you know that external structures can be covered by your homeowners insurance? Typically the value is up to 10% of the value of the home, so that’d come out to about $30,000 on a home worth $300,000. That can cover a lot of different things!

  • A fence around the property
  • A shed, maybe one you kept tools in
  • A detached garage

For some people, this may not be a big deal. But if you have a big external garage or shed with a bunch of stuff inside, you’ll be glad your homeowners insurance covers it in case it’s all damaged, stolen, etc.

 

Benefit of Homeowners Insurance #4: Loss of Use Insurance

Let’s say there’s an incident where water floods across the home. A ton of work has to be done – carpet needs to be ripped up, you need new drywall and insulation, etc.

Do you want to live in a house with that much renovation going on? Probably not. Luckily, loss of use insurance saves the day. Your insurance company will pay for your hotel and meal expenses so you can stay in a hotel until the work is done.

Is living in a hotel fun? Not really, but it beats living in the middle of a renovation project!

 

We Can Help

Would you like a homeowners insurance quote? We’d love to help! Just give us a call at 877-600-7347 or click here to request a quote. Talk to you soon!

 

 

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4 Home Improvement Projects You Can Do Yourself

Looking for some DIY home improvement projects this summer? Here are a few of the easier ones that can make a huge difference around your home. 

Home Improvement Project #1: Paint

The first project to consider is painting. Almost everyone has at least one room in their house they wouldn’t mind as a different color. For example, maybe your bathroom is extremely dark, so you want to make it an off-white to brighten it up. Or perhaps your bedroom is too light, and you want to make it nice and dark to help you sleep better. 

Either way, the good news is painting is something that anyone can do. As long as you don’t need to reach any areas that are very high up such as a two-story foyer, you can probably do everything with an 8ft ladder. 

DIY Home Improvement Project #2: Garage Storage Shelves

It is a very common problem to feel like your garage is a mess and cluttered. Things start to build up the longer you are in a house and the more stuff you acquire. It’s easy to lose track of items that aren’t well-organized and stacked on the floor in boxes etc.

At the opposite end of the spectrum, have you ever been in a garage with storage shelves attached to the wall? They go a long way in turning a messy garage into a room you can almost enjoy.

The best part is these shelves aren’t too difficult to put up. You will need a circular saw and stud finder to do the job right, so an investment may be required. But those are great tools for any DIYer, and the extra breathing room you’ll experience in your garage will be worth it. 

Home Improvement Project #3: Refresh Caulk

Your house has caulk all over the place. Windows, bathtubs, counters, cabinets, etc. Over time, caulk tends to get worn out, cracking and falling apart. This makes the caulk both unsightly and less effective, causing things like moisture, cold air and bugs to come through. 

The good news is putting on a fresh layer of caulk is pretty easy. Here’s a pro tip: Don’t buy the cheapest caulk gun you can find. Get one that is easy to push and has a no-drip stop. 

House Improvement Project #4: Improve the Landscaping

Everyone loves the great outdoors, right? Here are a few ideas on projects to consider:

  • Build a fire pit
  • Dig a dry creek bed if you have erosion issues
  • Create a patio or wood deck
  • Cut down small trees and foliage
  • Rake up leaves in untouched areas of the yard
  • Plant a garden
  • Build a retainer wall

You don’t need to do everything at once of course. Just pick one or two projects at a time so you don’t stretch yourself too thin.

Doing a few home improvement projects may help you get your mind off the crazy world we live in right now. But because we do live in a crazy world where the unexpected happens, make sure you’re protected. Let us know how we can help with your insurance needs.

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Does Homeowner’s Insurance Cover Jewelry?

Does your homeowner’s insurance cover jewelry? Chances are good that it does, but there’s a catch. Most policies only offer basic coverage, so the dollar value isn’t very high. If your jewelry collection is worth a pretty penny, your current policy may not be enough to cover it all. Here’s where the jewelry floater may be perfect for you.

What is a Jewelry Floater?

A jewelry floater is supplemental coverage for your jewelry. 

Who Needs a Jewelry Floater with their Home Insurance?

The answer to this question depends on three things:

  1. What is the current value of your jewelry?
  2. Are you buying more jewelry soon? After all, Valentine’s Day is this month.
  3. What does your current policy cover?

Let’s say you currently own about $3,000 worth of jewelry, you’re about to buy a $500 ring for Valentine’s Day, and your policy only covers $1,500. In that case, you may want to consider a jewelry floater since your current coverage only covers $1,500 of the $3,500 total value. 

On the flip side, maybe you own $1,000 worth of jewelry and the necklace you’re buying this month is worth $300. In that case, your $1,500 worth of coverage is more than enough. 

That said, there are other factors to consider besides just the dollar values. 

What Does a Jewelry Floater Cover?

Every policy is different, so it’s hard to generalize, but one big thing to think about is accidental loss. 

Most homeowner policies don’t cover accidental loss. For instance, if you go hiking and your ring falls off, your policy will most likely not cover accidental loss. You’ll need to pay completely out of pocket to replace it. The alternative, a jewelry floater, may cover accidental loss. In that case, the insurance company may pay for the new ring. 

People lose jewelry all the time. Sometimes it goes down the sink, tub drain or toilet. Other times it just falls off while you’re walking down the street or at the grocery store. You just never know. 

If you choose to schedule your jewelry so it’s covered, you’ll have more peace of mind that your investment is protected. 

What Does it Mean to Schedule Individual Valuables?

When you purchase a floater, you’re essentially “scheduling” your valuables. This means you’re protecting them from loss, but there are a few steps involved. Before you’re able to cover the items, you need to have them professionally appraised. This verifies the items you’re covering are worth the value you claim on the insurance policy. 

Ask your insurance company for a reputable appraisal company or do a search on Google to find one in your area.

The Pros and Cons of Jewelry Floaters

Just like any insurance policy, each side of the coin has one main pro or con. 

The pro of investing in a jewelry floater is peace of mind. You paid a lot for your jewelry, and this additional coverage will help you sleep at night knowing your investment is protected.

The con is the cost. Some people choose to forego a floater because they don’t want to pay the premiums involved. 

For some personalized advice, just send us an email at info@partnersdirectins.com or give us a call at (877) 600-7347. We look forward to helping you!

Courtesy of Cuselleration

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The Effect of California’s 2018 Deadly Fires on Insurance Companies

Across California, the wildfires were beyond devastating last year. With the Camp Fire in Northern California and the Woolsey Fire in Southern California, it felt like the entire state was burning.  

More than 7,000 residential and commercial structures were destroyed thanks to heightened wildfire activity throughout the state. As a result, it is becoming more difficult than ever for California homeowners to obtain and keep fire insurance.

The California Department of Insurance has received nearly forty thousand claims related to the Camp and Woosley/Hill fires with total incurred losses exceeding approximately nine billion dollars, as of last December.

As California wildfires grew larger and more intense last year, most insurance companies were not renewing policies for customers who live in areas that were too risky to cover. The state estimates that over one million homes in California are at high risk for wildfires.  

A California Department of Insurance report learned that the number of homeowners in the wildland urban interface, who spoke out about getting dropped by their plans has tripled from from years 2010-2016. These complaints about increased premiums have risen two hundred seventeen percent.

The state’s most vulnerable homes are not located in cities. They are instead found in areas defined as “wildlife-urban interface.” These homes are built just close enough to woodlands so that a spark from a tree can set a whole town on fire. As more people continue to live in and move to these disaster-prone areas, the amount of property at risk and the subsequent cost will also increase.  

Insurance companies do not have the same recourse and some have been choosing to not renew policies for customers who live in areas that are too risky to cover.  A standard homeowners insurance policy will include coverage for fires. But if you live in what is classified as a high risk area, you will either need to pay more for coverage or obtain insurance through surplus lines. Surplus lines are policies that protect against financial risk that regular insurance companies won’t take on and are not required to follow same state regulations.

To protect homeowners from high rate increases, the state requires insurers to justify increases with reams of data showing that their cost of paying for claims is rising. And after a catastrophic year of natural disasters, insurers are not allowed to increase rates right away. They instead must phase in the increase over twenty years.  

Moving forward, insurance companies will be more creative with their policies. As a result, more homeowners need to purchase additional coverage to make sure they are protected, or move out of problem areas.

There are millions of California homeowners who need to take the right steps to protect themselves and their homes in the event of a similar tragedy.

It is important to have the right insurance broker working with you, who can walk you through these more nuanced provisions and find the right plan for you. This will make a big difference when something catastrophic happens.   

Do you have a question about protecting your home from wildfires in the future? Click here to contact Partners Direct Insurance today!

Courtesy of Cuselleration

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How Homeowners Insurance Can Help Recover Damage from Wildfires

Having homeowners insurance can be a great benefit if there is a fire. The vast majority of policies have coverage that will be a great aid in getting your items repaired or replaced. Even though homeowners insurance can be expensive, house fires are a common occurrence that should not be taken lightly.

Estimates say the number of residential fires each year totals around 357,000 on average. Most of these are started from relatively simple issues, like a burning candle or a basic electrical issue.

It is important to know that homeowners insurance does cover fire damage, and it can be a great boost to you and your family as you recover. However, there are a couple of particulars that go along with it.

What Is Covered Under Homeowners Insurance?

Specifically, homeowners insurance covers the actual structure of a house along with any things that are attached, like a garage.

If your house is damaged or destroyed by a fire, many homeowners insurance companies will help pay for you to live somewhere else, like a hotel, until your can move into a house again.

Homeowners insurance also covers detached structures and personal property in the case of a fire. Detached structures can include items that are on your property but are not actually attached to a home, like a shed or fence. Insurance also extends to your personal belongings, which can include appliances, clothing, and furniture.

Usually, a homeowners insurance policy will help pay for the repair or replacement of these items if your house is affected by a fire or lightning strike. Some policies might even help you pay to replace shrubbery, grass, or trees that were destroyed during a fire.

Click here to learn why you need fire insurance!

What Type Of Homeowners Insurance Do I Need?

Ultimately, there’s no one size fits all policy for insurance. A policy will depend on how much you value your home and the belongings inside. For example, if you have a lot of valuable personal property, then it would be prudent to increase your limits for homeowners insurance across this area.

But you might need to buy additional coverage in top of this if you have valuables, like jewelry, that might have a lower coverage limit. One of the most important factors about homeowners insurance is the dwelling coverage. Homes and construction costs do change in value, so it might be more expensive to rebuild your house after a fire than it is now.

As a result, figure out dwelling coverage limits based on your house’s current valuation. Ultimately, even though there are a lot of house and dwelling fires each year, you can take concrete steps to prevent them. Be careful about open flames, especially from the stove or from candles, and always make sure to extinguish these before you leave.

Additionally, installing working smoke detectors can be a great deterrent against a fire, especially since they can help notify you if something goes wrong in the night.

Putting a fire extinguisher in the kitchen and out in the garage is another smart way to protect you and your house from a fire risk. Just check the expiration dates, as they might not work if they have been sitting around for awhile.

Do you have a question about how homeowners insurance can help recover damage from a fire? Click here to contact Partners Direct Insurance Services today!Courtesy of Cuselleration

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