Your home owner’s policy offers lots of coverages, right? There is coverage for the exterior/structure of the home and also for other structures on the property, such as a barn, shed, detached garage, etc.
You also have liability coverage in case someone is hurt on your property – your dog bites someone or someone slips and falls on an icy sidewalk.
And of course, you have coverage for your personal items inside your home. Imagine if you flipped your house upside down and all the stuff fell out – the clothes, furniture, electronics, jewelry and guns – those are personal articles that are covered.
So if your home was a total loss, maybe a big fire or a tornado, how does the insurance company figure out what you had inside?
Basically, if you have a 2,000 square foot, 3 bedroom home with an average value of $250,000, an adjuster is going to give you money for the normal and customary items and quality of what would be found in that home to refurbish your items inside the home.
What if you have unusual items that are difficult to just go out and easily value and purchase? How do you get those types of items replaced?
The VERY BEST WAY to be sure your unique items are replaced are to have a record of them on file with your insurance agent. Some items that come to mind are collections of any kind. Think guns, jewelry, art, watches. Since we are in Kentucky, think about your bourbon collection. If you have very rare and expensive bottles, be sure you have a detailed record of each one.
If you are a spreadsheet type of person, make a nice intricate spreadsheet showing all your prized possessions and email it to your insurance agent.
For the rest of us, a simple video will suffice. Take a moment and walk around your house to record what is there. If you need to open drawers or doors or safes to show the contents, please do so. Then email the video file to insurance agent, just in case.
Chances are you’ll never need this record, as a total loss is not common. However, if you DO need to replace these items, you’ll probably be in a very emotional and stressful state already, and you’ll be so glad you took a few minutes to record these items for ease of processing the claim and replacing those things.
Sometimes it feels like no matter what, your auto rates increase year over year. Or you feel like what you are paying is just too much. You may think the premiums you pay for your auto insurance are totally out of your control but there are a few things to keep in mind and try to keep more dollars in your bank account!
Credit – Believe it or not, a good credit score affects your insurance rates, just like it affects your interest rates. Insurance companies feel that if you pay your other bills on time you will pay your insurance bill on time too. Statistically speaking, people with higher credit scores tend to be more risk-adverse in life in general and in driving as well. Of course, this isn’t always the case, but there is enough data out there to support this theory.
Multi-Policy Discounts – Many of the big national carriers have utilized advertising campaigns in the past few years that speak to the fact you get a discount with an insurance company when you have more than one policy with them. It’s kind of a “buy more save more” situation. You probably know you want to bundle your home and auto policies, but having a personal liability umbrella, and life insurance can also save you more. If you own a business, many carriers will give you discounts on your commercial and personal policies when they are all with that carrier.
Deductibles – When you carry very low deductibles on your insurance, you are paying higher premiums for sure. The insurance companies assume that you are going to frequently file claims and charge you more, for this reason. We all know that more claims=more premiums, so think about increasing your deductible a bit and using your insurance policies for larger damage. So think about a higher deductible and pay for the smaller dings out of pocket.
Driving History – This is a no-brainer, right? If you get tickets, have accidents (even small ones), or don’t keep your driver’s license current, insurance carriers will DEFINITELY make sure you pay for those infractions. Most also want to see 3-5 years of driving history to be sure the driver has a history of safety. So slow down, be extra cautious, and keep your license up-to-date. Be sure you don’t drink and drive!
Your insurance agent should be able to advise you on ways to keep your premiums low, so make sure you work with someone who will act as an advisor and help you out.
Confident female
Erie Insurance offers a program for your auto insurance that allows you to lock in your rate. With ErieRatelock, as long as you keep the same drivers, vehicles and address on the policy, your rate is locked in. It’s a pretty helpful and unique feature, so let me know if you want more information and pricing! kris@castleinsuranceky.com
Summer has officially started here in Central Kentucky! Maybe you are looking at a sparkling pool in your backyard. Maybe there is a trampoline under a nice shade tree in your yard where all the neighborhood kids love to gather and jump. Maybe your fur baby dog isn’t much of an ice and snow type of pet and loves to play outdoors in the summer with friends at a backyard BBQ.
While all of these scenarios are what summer dreams are made of, have you ever thought of what the implications in your life could be if someone got hurt on your property having fun?
Did you know? (www.safekids.org)
Drowning is the leading cause of injury-related death among children between 1 and 4 years old.
It’s the third leading cause of unintentional injury-related death among children 19 and under.
Children under the age of 10 most often fatally drown in swimming pools
When faced with these types of statistics, you can see that being hyper-vigilant as a homeowner with a pool is imperative. A few easy ways to be safer and protect yourself and others from accidental drownings include:
HAVE A FENCE AROUND YOUR POOL WITH A LOCKING GATE. Most insurance companies require this but if not, take it upon yourself to just install the fence and gate.
Buy a sensor that stays in the pool and sounds an alert if a water disturbance (such as the splash of a child falling in) is detected. You can also buy individual wearable alarms that children can wear. The alarm goes off when it touches water.
If you have an above ground pool, move your ladder away from the pool when not in use.
If you’re having a pool party, tag team with other sober adults to be the “lifeguard” in charge of watching all the kids in 15-20 minute increments.
It’s not a stretch to imagine the injuries that can be sustained on a trampoline. Broken arms, broken legs, or more serious injuries like a head injury or broken neck are very real possibilities. If your own children are injured, of course you will get them the medical attention they need and your personal health insurance will pick up the bill. What happens if one of the neighborhood kids is injured? In all likelihood, their parents will want to file an injury, or liability claim against your homeowner’s insurance policy. What if there is a very serious injury sustained? Work with your agent to be sure you have enough coverage for a lawsuit situation. (think umbrella policy here)
In addition to injuries caused by jumping, you probably don’t realize your trampoline can also be a flying hazard in a severe storm with high winds and cause damage to other people or property.
What are some steps you can take to make your trampoline as safe as possible?
Be sure you have a safety net around your trampoline.
Frequently inspect all aspects of the hardware, netting, etc. to be sure there is no wear and tear or broken items that need to be replaced.
ALWAYS have adults supervising the jumping!
Be the mean neighbor and don’t allow anyone that doesn’t reside in your household on the trampoline.
Lastly, we have talked about dog bites and your home owner’s insurance before, but it bears repeating. According to Kids-n-K9s, most dog bites occur with a known dog, in a familiar place. Their website also shares these statistics:
Most dog bites affecting young children occur during everyday activities and while interacting with a familiar dog. (CDC)
The vast majority of biting dogs (77%) belong to the victim’s family or a friend. (CDC)
80% of dog bites happen at home (Kahn et al (2004) MIller and Howell (2007)
How can you keep everyone happy and healthy? If you have guests, keep your dog put away in a safe place where there is no interaction with others. When kids are running around and having fun, they are not paying attention to how their actions can affect your family pet. Many times kids misread the dog’s body language and the dog lashes out due to stress or overstimulation.
I truly hope you have a wonderful summer! Take the few extra minutes to provide a safe environment at your home and keep the fun in summer and the injuries at bay!
Let’s talk about guaranteed replacement cost on your home owner’s policy and what that really means to you. Your premiums are usually a little bit higher (although not always) but is that increase worth it?
Guaranteed Replacement Cost (GRC) for your home means that the insurance company will replace your item, such as a personal item inside your home like an expensive television with a comparable item. This coverage applies to the structure/exterior of your home as well. Let’s take a look at a couple of examples of each for better understanding.
For example, we know that due to the lightning speed of new technology, your t.v. depreciates quickly. So a t.v. you bought 2 years ago for $5,000 might only be worth half of that now. If you have guaranteed replacement coverage on your insurance policy, and you need to file a claim for a covered loss to have that t.v. replaced, they will provide you with a comparable item, with no depreciation.
Your policy can also have guaranteed replacement cost(GRC) regarding the structure of your home – how does that work? What does that mean?
Look at it this way – if you have a home worth $250,000 and it burns to the ground, what type of insurance coverage will you have? What if it costs $300,000 to rebuild? What if it costs $500,000 to rebuild? Are you covered?
For example, due to supply chain, Covid 19 and other factors, lumber is really expensive right now. Have you priced out any building materials lately? My husband went to Lowes today to purchase a couple 2x4s. They were $7.33 each! That is almost twice the price they were in the last year or so. They were about $1 in 2010. Incredible inflation on pricing!
Using that math, you can see how a $250,000 house can cost quite a bit more to rebuild! What if your insurance policy doesn’t have the GRC coverage we are talking about here? You may find yourself paying A WHOLE LOT MORE than your deductible in a big claim situation.
Talk with your insurance agent and make sure your home and belongings are covered properly. Make sure you understand what is covered and how it is covered. Have a conversation about it; don’t just go with the cheapest policy and cross your fingers! A few dollars spent now could save you thousands later.
As an insurance agent, my #1 goal is to assist families and businesses in the case of a claim. That’s what insurance is for: to put your family and your possessions back as they were before the claim.
In dealing with tons of families over the past several years with home owner’s claims, losses, injuries, and accidents, I’ve learned that accident prevention is so much better than dealing with the aftermath of a loss. Your grandma was right. ” An ounce of prevention is worth a pound of cure”.
Here are a few items to check in your home to head off a claim situation:
Check batteries in your safety systems and alarms in your home. Your smoke detector and carbon monoxide detector are a couple alarms that you should check often.
How about your furnace filter? Changing it often not only helps with the air quality in your home, but helps keep your furnace working safely.
It would be good idea to check your fire extinguisher’s expiration date and be sure it is current. Don’t have one? Get one! A good rule of thumb is to place one in the kitchen, one in the garage and on each floor of your home if you really want to be extra cautious.
Does your home security system run on batteries? Most are hard-wired, but if you have an older system, take a quick moment and verify the batteries are working properly.
As always, if you have specific questions about your insurance policy, contact your agent. I am always happy to help as well.
By now, most of us have our homes decorated with many family heirlooms and possibly even some new items. Lots of homes have Christmas trees as part of the holiday trimmings.
If you have a fresh tree, be vigilant about keeping it watered! When we get super busy, this is one chore that can be forgotten, but it is imperative that you keep it top of mind. Set a reminder on your phone for every other day or so. A few minutes of watering can help keep your tree from becoming kindling.
You want to be aware of critters in your tree too, but I think that has already been addressed in a movie or two!
Also, pay attention to the lovely holiday scented candles that are so popular this time of year. Keep them clear of drapes and curtains, tablecloths and children and pets. Let’s keep all fires in the fireplace where they can keep us warm and cozy.
Click on the link below to be directed toNational Fire Protection Organization’s site. You can also view a video showing how quickly your tree can be engulfed in flames as well as more safety tips.
Now that the weather is getting chilly, and we are bundled up at home even more, a lovely candle burning can be cozy and smell delightful! Can candles really cause house fires?
Being safe with candles may seem like a no-brainer. However, according to the National Fire Protection Association, from 2014-2018, U.S. fire departments responded to an estimated 7,610 home structure fires that were started by candles per year. These fires caused an annual average of 81 deaths, 677 injuries and $278 million in direct property damage.
Please see the infograph below from the National Candle Association for some candle safety tips.
Most of us have auto, home, and life insurance, but having protection against a catastrophic liability claim is often overlooked.
Would you have enough coverage if something like this happened to you?
A jury awarded $900,000 to the estate of a 43 – year – old father that died after an auto accident. The award was based in part on the father’s future earning potential.
While helping a friend paint his home, a 40 – year – old man fell and broke his heel. Although the homeowner was found only partially responsible, the fall cost him $1.2 million dollars.
An umbrella policy will provide you with an additional $1 million dollars or more of coverage over and above your underlying homeowner or personal auto limits. It can offer you an extra layer of protection against the possibility of a high jury award in a personal liability case.
It is especially important to purchase this type of policy if you have wages that can be garnished or assets that can be seized to pay a judgement.
It’s an inexpensive policy with extensive benefits! Contact your insurance agent or our office for more details.
In the summertime, we see lots of thunderstorms and hail in Central Kentucky.
What should you do if your home or car is damaged during a storm?
Stay safe? Wait until the storm has passed before you inspect the damage.
Take steps to protect your property. Maybe you need to spread a tarp over a section of the roof. Maybe you need to pick up shingles in the yard.
Contact your insurance agent. Many times, the damage done to your shingles isn’t a large enough amount of money to file a claim when you factor in your deductible.
Get an estimate to see how much the repairs will cost you.
If your car is damaged by hail or a fallen tree limb, you will need to have comprehensive coverage on your auto policy. Have a discussion with your insurance agent to be sure you can get the damage repaired. Again, get an estimate to see how much the repairs will cost you.
Your agent is there to help you in the case of a weather event that causes property damage. Reach out to get advice, after the danger of the storm has passed.
It’s common knowledge that insurance rates fluctuate from year to year. If you plan on looking for a new insurance policy, here are a few things to consider:
Agent Vs. Direct For many years, the only way to get an insurance policy was through a licensed agent, often face to face. With the advent of the internet, consumers can now easily get an insurance policy without even talking to an agent. Many companies offer streamlined online applications and cell phone apps. While these may be convenient, dealing directly with a local agent can have advantages.
The convenience of no face to face interaction may be appealing, but during billing disputes, claims, or vehicle changes, having direct access to a licensed insurance advisor often has its own benefits. At Castle insurance, your phone call will always be answered by a caring insurance professional.
Rate comparison tools If you have ever searched for insurance on Google, chances are your Facebook feed was soon filled with services that let you shop several companies rates, all at once.
While this sounds like a novel concept, be wary of what you are actually signing up for. You may decide to buy a policy from one of those ads you were served, only to see your rates drastically change when you are directed to the company’s website. This is known as a “bait and switch” and can often lead to you overpaying for insurance or having your coverage drastically reduced.
Working with a local independent agent will provide a wide variety of quotes, and Recommendations from your agent will help you pick the right policy for your needs.
Buying a new house? Buying a new house can be a long, exciting and often stressful process. Dealing with a local real estate agent will likely make the process easier for you. But should you trust your realtor’s advice when it comes to insurance? While they can certainly put you in contact with a licensed insurance agent, be sure you do your own research and be aware of what type of policy you are buying.
Realtors are trusted advisors and their advice should be considered, but when it comes to insurance, make sure you have a policy that addresses your concerns and offers the right protection long after your purchase.
If it sounds too good to be true, it probably is! Have you ever heard your grandparents say that?
People often see ads for insurance that are hundreds, if not thousands of dollars cheaper a year than their current premiums. As a savvy consumer, you have to question this!
Ask yourself a few questions.
Are there any companies out there that can offer a policy for thousands less than everyone else?
What am I actually paying for?
Is there an option that isn’t being included that leaves me vulnerable in the case of a claim?
Is this pricing for high liability limits that give me more legal and financial protection or just what is required by the state? State minimum coverage will allow you to legally drive here in Kentucky, but you won’t see me get behind the wheel with that type of coverage! The small difference in cost between minimum requirements and a more robust limit might surprise you. Be sure you are protecting yourself and your family with the highest limits you can afford.
Bundling is Smart Be a smart consumer and check multiple companies. Having your Home and Auto insurance managed by the same agent is convenient and can lead to significant discounts on all your insurance policies.
Are you a number or family member? There are plenty of insurance companies that tell you their products are far superior to anything else, and far cheaper too. The best way to ensure your assets are properly protected and you pay a competitive rate is to deal directly with an independent insurance agent or broker. For a large company, you may just be another policy number, but for a local agency like Castle Insurance, you are part of the family.
Please contact us today if you are concerned about your coverage, unhappy with the way a claim was handled, or just want a more competitive quote.
Homeowner’s insurance is sometimes referred to as a fire policy. Modern homeowner’s policies have evolved from our grandparent’s “fire insurance” and today’s policies cover a wide range of perils. But does a homeowner’s insurance cover water damage?
Standard homeowner’s insurance offers little coverage when it comes to water damage, especially water due to heavy rains. When it comes to water damage, a flood policy is typically purchased to cover any damage from overflowing waterways, rain runoff, and of course, heavy rainstorms leading to floods.
There is a misconception among policyholders whobelieve flooding and standing water in the home, especially the basement. When surveyed, 33% of Americans believed that flooding was covered by a standard homeowner’s policy, and only 20% of at-risk properties in America are insured against flood damage. For example, during Hurricane Harvey, only $12 billion of the $40 billion of damage was covered by flood insurance. While we don’t have hurricanes in Kentucky, flood insurance may still be right for your home.
So,what type of water damage IS covered by my home insurance?
One of the main principles of homeowner’s insurance is the coverage for sudden and unpreventable events. When events are considered to be avoidable through routine maintenance, insurance claims are likely to be denied. Ensuring all appliances are in working order and free of leaks will help mitigate water damage caused by interior appliances, pipes, etc.
When pipes or appliances suddenly fail, subsequent water damage should be covered. For example, if your hot water heater bursts and floods your basement, you would be eligible to submit a claim. If a washer hose bursts, you would be eligible to submit a claim. If your basement floods from rainwater, you would normally NOT be eligible for a claim.
What is the deal with flood Insurance?
Most standard insurance companies do not offer flood insurance. A local broker can connect you to a policy issued by the National Flood Insurance Program or another private flood insurance program. These policies have strict limits of coverage and there are specific conditions to be met before a flood claim will be paid. If you live in a designated flood zone, you are required to buy flood insurance when you signed your mortgage. This protects the customer and the mortgage company in the event of a catastrophic event.
Where can I buy flood insurance?
At Castle insurance, we are connected to some of the few private flood policies available. Pricing and coverage options will vary.
