Homeowners Insurance and Tree Damage

February 20th, 2012 by admin | No Comments | Filed in Information And Tips

Even the most basic homeowner’s insurance policy covers wind damage to your home, but what about the damage caused by a tree blown over by that wind? What if the offending tree that bashed a hole in your roof belonged to the next-door neighbor? Whose insurance covers that claim? Who pays to clean up the mess? And, will your homeowners insurance pay to replace your tree?  Lots of good questions. Let’s sort
out the answers.

Your homeowner’s insurance will pay for any damage a toppled tree or tree limb caused to your home, its contents and any other covered structure such as a garage or fence up to the limits of your policy, less any deductible. That’s straightforward enough.

It gets a little murkier when it’s a neighbor’s tree causing the damage. If the tree was healthy, most experts recommend filing a claim with your own insurance company. However, if it can be shown that the neighbor’s tree was diseased, dead or poorly cared for, then your insurer may try to collect from your neighbor’s insurer through the subrogation process. If your insurer is successful, your deductible will be reimbursed. Before it gets to that point, talk to your neighbors about any potentially dangerous trees on
their property. If they ignore your polite advice, send a certified letter and take a few pictures.  It will help
facilitate the subrogation process in the event the neighbor’s tree ultimately falls on your home. Keep in mind that turn-about is fair play here. You need to attend to the health and well-being of any trees in your yard since your damage claim could be denied, or your insurer subrogated,  if negligence can be proven.

How about clean up? Most policies cover tree debris removal caused by wind only if the debris actually causes damage to a covered structure. Some policies will remove the tree if it blocks a driveway. Even if your policy does cover debris removal, it’s probably capped somewhere between $ 500 and $ 1,000.

Now let’s suppose that it was your tree that fell on your house and you’d like to replace it. Will your homeowners policy pay for a new tree? Probably not. Standard homeowners insurance typically exclude damage done to trees, shrubs, lawns and other landscaping by wind or ice. If you’re concerned, you can always buy additional coverage.

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Mold Can Mess Up Your Homeowner’s Insurance

February 17th, 2012 by admin | No Comments | Filed in Information And Tips

Black grout can be a fashion statement, but if your bathroom tile is starting to look like an out-of-control science experiment, it’s time to face facts. You have a mold issue and you need to deal with it ASAP. Mold is a fungus and its microscopic spore will spread rapidly. All it needs is moisture and a host. The moisture can come from high indoor humidity,flooding or a leak. The host can be anything from your clothing and carpet to the drywall in your home.

Think you’re covered for mold damage? Better read the fine print in your homeowners insurance policy. Since the early 2000s when America saw a rash of mold claims, many states have allowed limits on mold
coverage. The exact limit will vary, but generally coverage is capped between $ 1,000 and $ 10,000 for remediation and repair. But that coverage will undoubtedly come with exclusions, meaning the scope of coverage will depend on the source of the moisture that let the mold take hold.

Usually, if the mold resulted from an accident like a burst pipe, even a policy with a mold remediation exclusion may pick up the cost of repair and clean-up. But if the mold is the result of poor maintenance or neglect on your part, forget about it. You can, however, purchase a separate rider for mold remediation. Premiums will vary depending on where you live (a humid climate like Florida will cost more than Arizona) and other factors like how old your home is. Newer homes tend to be built with better water-proofing and mold-resistant materials.

Mold that comes about after storm or seasonal flooding won’t be covered, either. For that, you need separate flood insurance.

Many insurance companies are now antsy about writing policies for homes with a history of mold-related claims.That’s why you want to focus on prevention and early, aggressive elimination. Mold never sleeps, so
take some proactive steps to avoid having a mold claim denied. Use air conditioners, dehumidifiers and exhaust fans to control moisture. Regularly inspect hoses and fittings on sinks, toilets and appliances. Keep an eye on places where water can enter your home such as roof leaks, cracks in foundations, crumbling
caulking and paint breaches. Don’t carpet bathrooms, basements and other wet areas. Use paints with mold-inhibitors and clean mold-prone areas with bleach.

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Test Your Homeowners Insurance Knowledge

February 14th, 2012 by admin | No Comments | Filed in Information And Tips

Think you know your stuff when it comes to homeowners insurance? See if you can answer these five questions. Knowing the facts can help you avoid costly errors and make better decisions when you’re looking for homeowners insurance quotes

While flambéing dessert, you accidentally set the house on fire and it burned to the ground. Will your insurance pay to rebuild it?

If you’ve insure your home for at least 80% of its full replacement cost and the damage was caused by a covered peril such as fire, your homeowners policy should take care of the cost to fully repair or replace
your home, less your deductible. Problems arise if you skimped on coverage and are underinsured. You may not have enough to replace a total loss in today’s market, and you could find yourself with an out-of-pocket loss for the difference. That’s why it’s important to review your homeowner’s policy at least once a year and adjust for changes in value.

An earthquake knocked your beautiful new 54” flat screen off the wall. Will your standard homeowners policy replace it?

Don’t even bother filing a claim. Standard, unendorsed homeowners coverage does not include earthquake damage. As we saw last year, earthquakes can happen anywhere, not just California. Purchasing a separate policy or adding an inexpensive earthquake endorsement to your policy is cheaper than buying a new TV.

After sending out 3,500 resumes and getting no response, you started a home business making
cookies. One of your customers has an allergy to the peanuts that accidentally fell in the chocolate chip batter. She sues you for damages. Will your homeowners insurance take care of it?

Sorry, but that’s coming out of your pocket. Standard homeowners policies provide zip business or product liability coverage. If you’re operating a business out of your home, you’re fair game for a raft of liability
risks. Depending on the nature of your business and your risk exposure, you should either consider a homeowners business endorsement or a separate business owners policy designed for small businesses.

Tough times have forced you to rent your finished basement to four college students. One of them
bumps his head on an exposed pipe and sues you for his medical bills, pain and suffering and loss of class time that prevented him from taking his finals. Your homeowners policy covers it, right?

Wrong, big time! If you’d only rented to two students, you’d probably be covered. But standard homeowners insurance excludes coverage for injuries to in-home renters or boarders once their number exceeds two. You can either limit yourself to two renters or cancel your homeowners policy and buy a policy designed for commercial boarding houses (not cheap).

Unable to sell or rent your home in Ohio, you’re forced to leave it vacant while you take a job in North Dakota. While you’re away, a rainstorm causes a roof leak and thousands of dollars of water damage. Will your insurance company pay the claim?

Probably not. Most homeowners policies have a vacancy clause that suspends your coverage if your home is vacant or unoccupied for a specified period of time (typically 30 or 60 days, depending on policy). If you’re going to leave your home unoccupied for extended periods of time for any reason, check with your insurer ahead of time. You may be able to get a vacancy permit, although it will have more limited coverage that excludes some perils like vandalism, water damage or theft. For full coverage, you’d need the more
expensive vacancy insurance, which isn’t offered by all insurers.

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What Does an Insurance Agent Do?

February 11th, 2012 by admin | Comments Off | Filed in Information And Tips

Shopping for insurance quotes and buying insurance online is so simple, you might wonder why you would ever need an insurance agent. After all, when you shop for insurance online, you can compare lots of policies quickly in your PJs at 2 a.m. We’re all for that, but insurance agents do a lot more than sell policies and if you ever have a complicated claim or a question about your coverage you need answered fast, you’ll be happy you established a relationship with an agent early in the game.

Insurance agents, who are also called producers within the industry, fall into two basic categories. They’re either captive agents who work for one company and can only sell that insurer’s products; or they’re independent agents who sell products from a variety of different insurance companies, and can help you
compare different policy features and benefits. The insurance products they sell fall into two basic categories: life and health; and property and casualty.

Regardless of their status, all insurance agents involved in the solicitation, selling or negotiation of insurance must be licensed by the state where they sell insurance. The licensing process varies from state to state, but generally requires the prospective agent to complete some insurance-related coursework covering insurance fundamentals and the state-specific insurance laws,  and then pass a state exam. If an agent sells both life and health insurance and property and casualty insurance, he or she will need a separate license for each category. Most state insurance commissions also mandate continuing education every two years to keep agents up to date. The coursework focuses on insurance law, consumer protection, ethics and technical aspects affecting various types of policies.

Some insurance agents are also qualified to sell comprehensive financial planning services such as mutual funds, annuities and retire vehicles. This requires additional study, examinations, licensing and certification.

In addition to soliciting business, insurance agents are expected to prepare reports, maintain accurate records and, of course, help you settle your insurance claims. They can help you save money by showing how to bundle policies and take advantage of available discounts. And they provide you with unlimited professional advice and services for free, because they’re paid by your policy’s insurance carrier. 

As licensed professionals, insurance agents must meet their state insurance commission’s standards and face suspension or loss or license, fines and even imprisonment for failure to adhere to legal and ethical
standards.

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