Home Insurance Blog

A standard homeowners insurance policy will provide Other Structures Coverage which protects detached garages, sheds, etc. on your property(However you should check with your home insurance agent for specifics on your policy).

Typically, a policy that covers Other Structures Coveragewill offer a maximum of 10% of the total dwelling coverage for other structures. So, if you had a maximum of $200,000 of dwelling coverage, you would most likely have up to $20,000 worth of  other structures coverage on your property.

Remember, the damage to your garage or shed must be caused by a covered peril listed on your homeowners insurance policy including fire, wind, hail, lightening, theft, etc.

The contents of your garage or shed are covered as well, however they are covered under the Personal Property coverage portion of your homeowners insurance policy. When completing your home inventory, be sure to include any personal property that you keep in your garage or shed (with the exception of automobiles, motorcycles, etc. which typically require their own coverage).

With the 4th of July weekend starting tomorrow (or today for some!), it’s a good time for boaters to get their water crafts in tip-top shop before jetting out into open waters for the first time this season. In the rush to push away from the dock we can sometimes forget important safety tips and procedures.

Prepare your Boat for Summer

1- Life Jackets- Make sure you have enough for every passenger on the boat and check their condition for rips or other defects. Replace any that are damaged and have a spare just in case.

2-Fire Extinguisher- Fire extinguishers can discharge over the winter so make sure you have a functional fire extinguisher in an accessible place.

3- Registration and Insurance- It’s easy so forget about paperwork when you’re thinking about basking in the sun but make sure your boat registration and boat insurance are valid. Make sure you have copies on the boat so you can produce them if you need to.

4-Battery Check- Often overlooked yet extremely important! Check your boat batteries for a strong charge and have a back-up available at all times.

5- Electrical- Check your electrical system including lights, gauges and the bilge pump. Electrical systems have a tendency to fail over the winter season.

6- Trailer-If you have a trailer, make sure it is in good shape by greasing the bearings and checking the winch for functionality.

7- Gas- If you left gas in the boat over the winter it’s usually a good idea to replace it and fill it up with fresh. Gas it up and get out on the water!

Absolutely. One of the biggest mistakes a homeowner can make is dropping their homeowners insurance simply because their lender no longer requires it. Let’s look at it this way….

Does paying off your mortgage make your home any less susceptible to damage or claims?

Of course not. A hail storm is not going to bypass your home just because your mortgage is paid off. Remember, homeowners insurance is designed to protect the financial investment you have in your home. When you have a mortgage, your lender owns part of your home and homeowners insurance protects their financial investment in your house (hence why it is required). When you pay off your loan in it’s entirety, homeowners insurance protects your financial investment.

Some homeowners might feel it’s worth taking the risk to drop their homeowners insurance. Especially if they have been lucky enough to go a few years without ever having to make a claim. However, as any homeowner who has lost their home will attest to- you never know exactly when or where a natural disaster is going to hit.

Also, even if you felt confident that your home was safe from any chance of damage, consider the liability portion of your homeowners insurance that protects you and your family from the financial impact of lawsuits. In the event that you are presented with a lawsuit from an injury or wrongdoing that occurs on your property, how are you going to afford the legal costs?

The liability portion of your homeowners insurance would be invaluable in that scenario.

If the cost of homeowners insurance is what is driving your consideration to drop your policy, consider other options for saving on your premium. For example, if you feel you can afford a higher deductible in the event of a claim, consider raising your deductible to lower your premium. Or, now that your mortgage is paid off, invest in a security system that could save you up to 15% on your homeowners insurance policy. Upgrading your home and it’s safety systems is an easy way to save on homeowners insurance without increasing your financial risk.

Summer has officially begun and people all over the country are gearing up for Fourth of July celebrations. But before you dust off the fireworks and party supplies make sure you are planning a safe, claims free holiday.

Top 4 Insurance Claims to Avoid this 4th of July

Cooking Fires-  According to the U.S. Fire Administration, cooking fires are the leading cause of structure fires. Make sure that you if you are cooking outdoors you place the grill far enough away from the house that sparks and flames can’t ignite your siding. If your outdoor grill has a grease trap, make sure to empty it.  Grease traps can easily catch fire because the contents are so easy to ignite.  Also, make sure someone is always tending to the grill. Never leave a fire burning unattended. Make sure children and pets steer clear.

Car Accidents- Holidays always pose a higher risk for car accidents because of an increased volume of traffic and a greater chance of drinking and driving. If you are having guests at your home that might be consuming alcohol, be sure to keep an eye on everyone and don’t let anyone drive after consuming alcohol. Even if you aren’t drinking, try to avoid being on the roads as much as possible. Even the safest drivers can be injured by drunk drivers.  (Did you know that social host laws can now hold homeowners (and their homeowners insurance) responsible for car accidents that occur after a driver has consumed alcohol on their property?)

Fireworks Injuries- Fireworks laws vary from state to state but no matter where you are they are equally as dangerous. The Centers for Disease Control and Prevention reports that in 2006, 9200 people were treated for firework- related injuries in emergency rooms around the country. Leave the fireworks display to a professional and avoid having them near your property.

Boating Accidents- Over the course of the year there are about 8,000 boating accidents that take place in United States waters.  Since the weather around the 4th of July is typically perfect boating weather, many areas see an spike in boating accidents in the days surrounding our nation’s independence day. If you plan on boating this 4th of July avoid alcohol and remember that Boating Under the Influence (BUI) is just as dangerous as drinking and driving in an automobile. Be sure there are enough life jackets for all passengers and keep children well informed about standard boat safety. Do not let passengers swim while the motor is running and follow the rules of the open sea.

Wishing you a Happy and Safe 4th of July! Your Friends at HomeInsurance.com

Because home values are dropping across the nation, homeowners often inquire about their homeowners insurance coverage- and whether they should reduce their coverage.  The issue here is that your homeowners insurance coverage is not based on the market value of your home like many mistakenly believe. In actuality, your homeowners insurance coverage is based on the replacement cost value of your home- and lowering your coverage could put you in the middle of a major financial risk.

The amount of coverage you have to replace your home is called your dwelling coverage. Dwelling coverage protects the investment you have in your home and the amount of dwelling coverage you have should reflect the cost it would take to replace your home in the event of a total loss.

Home Insurance agents determine the amount of dwelling coverage you need by multiplying the square footage of your home by local construction costs per square foot. So, if you had a 2000 sq. ft. home and your local construction cost was $180 sq. ft. , your dwelling coverage would be $360,000.  Notice, this calculation differs greatly from market value as it does not consider the value of land beneath your home. The same home may have a market value of $440,000.

To help determine your home insurance dwelling coverage and replacement value, visit this home insurance calculator and enter your zip code and square footage to get an estimate. As always, a home insurance agent can provide you with an exact dwelling coverage amount for your specific home.

While lightning storms can happen any time of year the summer months are when they are at their peak frequency. The National Weather Service is hosting Lightning Safety Week from June 21st- June 27th to educate children and adults alike about the dangers of lightning and how to prevent injuries and damage.

For children’s lightning safety information, visit NOAA’s website to find interactive lightning safety quizzes, word puzzles and other educational activities for kids.

National Geographic has also launched an interactive lightning game where you can cause virtual  lightning to strike various objects to see and read about associated damage.

Homeowners looking for topics on how to prevent lightning damage to their homes should visit How to Prevent Storm Damage or visit our Disaster Guide to learn about lightning damage and whether or not it is covered by your homeowners insurance policy.

Yesterday marked the first day of summer and like most other people this time of year- I’m sure you’re thinking about some fun things you can do this summer to celebrate the season. But does the current economic condition have you wondering if you should take a vacation this summer season?  You’re not alone. According to a survey by CareerBuilder.com, 35% of American workers said they have not or would not be taking a vacation this year either because they cannot afford it, or because they fear loosing their job.

However, studies show that vacations are an important way for employees to reduce stress and stay productive.  So, as an alternative to a  tropical retreat or European getaway- why not plan a road trip to a new destination which can be equally as fun-filled with a fraction of the price tag?

Here are our tips for planning a low-cost, low-stress road trip this summer:

Road Trip: Summer 2009

Planning the Route: Whether you plan to make multiple stops or just one- plan your route carefully. One of the best things about a road trip can be the new scenery along the way so try to find some back country roads instead of always staying on the highway. It might take a little bit longer but you’re guaranteed a better view. Also- try to avoid driving through big cities and areas known for traffic congestion- remember the point of this trip is to relieve some stress not to create it!

Prep Your Vehicle: Whether you’re planning on driving 50 miles or 500- make sure to have your vehicle tuned up with a fresh oil change and fluid top-off before heading out on the road. The last thing you want is unexpected car trouble when traveling in unknown territory.

Organize Your Paperwork: While you may be leaving the office for a few days you still have some minor paperwork to attend to. Make sure your car insurance and vehicle registration are up to date and in the glove box or somewhere else you can easily find it. A ticket for an expired registration is a quick way to put a damper on road-trip fun. Oh yeah and don’t forget your map!

Keep the Kids Busy: If you are taking some little ones on the road with you be prepared with games, snacks and anything else to keep them occupied. Jot down some car games for kids like I Spy or the License Plate Game to keep them entertained. Also, give them their own map so they can track your progress along the way. This helps build their map skills and let’s them feel part of the navigation process.

Expect the Unexpected: As with any kind of travel, road trips are great opportunities for unexpected delays and trip interruptions. Instead of getting flustered- embrace the opportunity to go a little of course- and have fun with it. Sometimes finding the road rarely taken is the most memorable part of a road trip.

Congress is taking a close look at a class-action lawsuit led by individuals who claim that their health insurance companies have unfairly dropped their coverage after they began submitting claims for serious illnesses.

Many health insurance companies practice rescission- the practice of canceling an individual health insurance policy after it has been approved, often paid into and claims have been made. However, companies claim to practice rescission in order to combat insurance fraud.

Some individuals are claiming, however, that their coverage was cancelled only after they filed a claim for a serious condition.

One plaintiff, Robin Beaton, claims that she paid her health insurance premiums faithfully every month. Only after she was diagnosed with breast cancer a few months ago, did her health insurance provider, BlueCross BlueShield, deny her claims and drop her policy.

A representative from BlueCross BlueShield claims that Beaton neglected to disclose a visit to a dermatologist a few year prior when initially applying for medical coverage. Neglecting to disclose this information can be interpreted as unintentional insurance fraud, according to the company, and provides cause for dropping her policy.

Health professionals are criticizing the health insurance companies for waiting until a serious claim is made to “do their homework”. Many believe that these major health insurance companies should be researching their policyholders’ medical backgrounds prior to approving their coverage as opposed to only after they file a substantial claim.

In a congressional hearing earlier this week Bart Stupak [D] of Michigan confronted executives from three health insurance companies and asked them if they would pledge to end of the practice of rescission except in the cases of intentional fraud.

All three executive said they would not.

Some media critics are outraged this week at the small amount of attention this issue received in U.S. Media.  Paul Begala, Democratic Strategist and CNN Political Contributor, pointed out that major media publications including the New York Times and the Washington Post did not cover the congressional hearing. Read His Full Article>>

Will congressional pressure push these large insurance companies to tighten their policies on recession?

Is your home prepared for hurricane season?

In our ongoing pursuit to be your #1 source for homeowners insurance information, we have recently launched a Disaster Preparation & Recovery Guide. Our goal for the Disaster Guide is to provide current, relevant advice for homeowners who are affected by natural disasters. And while we are still adding new content, we have launched the Tornado Guide, Flood Guide and Hurricane Guide to help homeowners prepare their homes and families.

While we all know that natural disasters cannot be avoided, they can definitely be prepared for. Each Disaster Preparation & Recovery Guide gives important insight into what causes these natural disasters, how to reduce the impact on your home and most importantly, how to keep your family safe.

We also have added an important section to each guide explaining standard homeowners insurance coverage for each peril. Do you know what’s covered and what’s not? Get claims information and contact numbers for our major partners.

Check back over the next few weeks to check out new tools and articles and get your family prepared for whatever Mother Nature may send your way this summer season.

Has your recent car insurance bill left you seeing red? Read our Five Tips for Saving on Auto Insurance…

#5- Take a Defensive Driving Class
Most car insurance companies offer a 10-15% discount on your auto insurance premium if you take a state accredited defensive driving class. Great news is in many states they now offer online defensive driver classes that range from $30-$60 so you can complete the course from the comfort of your own home.

#4- Review Your Policy Details
Every 6 months or so, touch base with your car insurance agent and review your policy details.  Make sure everything that affects your rate is current and correct. (For example, if you pay off your vehicle, ask your agent if you still need comprehensive coverage.)

#3- Check your Deductibles
If you set your deductibles very low when you first purchased your car insurance policy, but now can afford to raise them, you could save some money on your premium. Make sure you discuss this with your agent and get a strong understanding of your deducitbles so you can make the decision that will best cover you.

#2- Drive a Safe Car
If you are planning on purchasing a new car anytime in the near future, opt for a safe vehicle as opposed to something flashy. Part of what constitues your car insurance rate is the safety rating of your vehicle. Ask your dealer about your prospective vehicle’s National Safety Rating and talk to your car insurance agent before the purchase for quotes.

#1- Combine your Home & Auto Insurance
One of the easiest ways to save is to bundle your home and auto insurance with the same company. While the savings come off of your home insurance premium, you may see up to a 30% deduction off your policy just by insuring both with the same company.