Flooding is one of the costliest natural disasters in the United States, with the potential to impact millions of homes and communities. While FEMA and other agencies provide flood maps to help homeowners understand their risk levels, many of these maps are outdated, leading to a false sense of security for people who live in areas not designated as high-risk. Floods, however, aren’t limited to high-risk zones; even areas classified as low-risk are vulnerable under certain conditions. For these reasons, it’s vital to consider flood insurance no matter where you live.
Outdated Flood Maps and the Misleading Risk of Flooding
Flood maps are designed to inform residents and local authorities about the likelihood of flooding based on historical data, topography, and other factors. FEMA’s maps, for instance, divide areas into high, moderate, and low-risk zones, which guide flood insurance requirements and building regulations. However, some flood maps haven’t been updated for years and many don’t accurately reflect changes in land use, climate patterns, or new developments, which can significantly alter flood risks.
Changes to flood risks include:
Urban Expansion: As cities and towns expand, natural land is replaced with pavement and buildings, which leads to increased runoff and reduced soil absorption. Areas previously considered low risk might become more prone to flooding as water has fewer places to go.
Climate Change and Extreme Weather: Flood maps are based on historical data and often don’t account for the increasing frequency and intensity of extreme weather events that can result in both droughts and unprecedented rainstorms, often within the same year. In areas affected by wildfires where vegetation loss reduces soil stability, runoff increases. Outdated flood maps may fail to reflect these climate driven impacts, leading many property owners to underestimate their exposure.
Erosion and Infrastructure Changes: Natural factors like erosion, as well as human-made infrastructure changes, can impact flood patterns over time. Rivers shift, drainage systems get updated, and dams or levees are added or removed—all of which can alter the flow of water and increase the risk in areas thought to be safe.
The Risks of Flooding in “Low-Risk” Areas
Approximately 40% of flood insurance claims in the U.S. come from properties located outside designated high-risk flood zones. Many low-risk or moderate-risk areas are prone to what is known as “flash flooding” from sudden, heavy rainfall or overflowing drainage systems that cannot keep up. Recent flooding incidents in areas far from coastlines or rivers illustrate how floodwaters can impact anyone, anywhere.
Causes of flooding in low-risk areas include:
Heavy Rainfall: Even a few hours of intense rain can lead to flash flooding, especially in areas with inadequate drainage or impermeable surfaces like concrete. Low-risk flood zones can still see significant flooding from strong, localized storms.
Snow Melt and Frozen Ground: In colder climates, rapid snowmelt or rain on frozen ground can lead to significant runoff, overwhelming waterways and drainage systems even in low-risk flood areas.
Infrastructure Failures: Overflowing sewer systems, clogged drainage, or burst water mains can also lead to localized flooding, impacting areas that flood maps don’t highlight.
Because low-risk zones are not usually required to have flood insurance, many homeowners assume they’re safe. Unfortunately, without a flood-specific insurance policy, any flood damage may need to be covered out-of-pocket, which can lead to devastating financial loss.
Why Flood Insurance Is Essential, Even Outside High-Risk Areas
Given the limitations of flood maps and the growing risk of unexpected flooding, flood insurance is a wise investment for all homeowners. Standard homeowner insurance policies typically do not cover flood damage, so without flood insurance, homeowners face the full financial impact of repairs, replacement of belongings, and sometimes even temporary housing costs.
Here are several reasons to consider flood insurance regardless of risk classification:
Affordable Coverage in Low-Risk Areas: In areas considered low- to moderate-risk, flood insurance premiums are often lower than in high-risk zones. This makes it possible to secure essential coverage without significant cost.
Financial Protection: The cost of even minor flooding can add up quickly. Carpets, drywall, and flooring may need to be replaced, and waterlogged appliances or furniture might be beyond repair. Flood insurance helps cover these costs, sparing you from paying out of pocket.
Home Value and Mortgage Requirements: While most mortgage lenders don’t require flood insurance in low-risk areas, opting for coverage can help protect your home’s value by making it easier to get it back to pre-flood condition.
Adaptability to Climate Change: As weather patterns continue to change, so does the risk of flooding. Flood insurance ensures that you are protected no matter what nature brings, providing adaptable protection in an unpredictable environment.
Taking a Proactive Approach to Flood Protection
Beyond purchasing flood insurance, you can take steps to protect your property from potential flooding:
Upgrade Drainage Systems: Make sure gutters and downspouts are clear and well-maintained to help direct rainwater away from your home.
Install Sump Pumps or Flood Barriers: For homes with basements, sump pumps can be a lifesaver in the event of heavy rain. Flood barriers can also be installed around doors and windows for additional protection.
Regular Property Checks: Monitoring your property for pooling water and ensuring nearby storm drains are clear can help reduce localized flooding.
Outdated flood maps and assumptions about risk can lead to costly surprises for homeowners. While flood insurance may seem unnecessary in low-risk areas, recent floods across unexpected locations show that no one is entirely safe from flood risks. By securing flood insurance and taking proactive protective measures, you can shield your finances and assets from unforeseen disasters – and be prepared no matter what the flood maps say.
If you’re interested in learning more or getting a flood insurance quote, the California Casualty Agency Services team can help. Call 1.877.652.2638 or visit https://www.calcas.com/flood-insurance.
Imagine finding a contractor to repair your roof after a damaging storm, only to discover that you’ve been duped by a scammer. It’s a situation no one wants to face, yet contractor scams are on the rise, leaving unsuspecting homeowners with unfinished projects and empty wallets. Before you embark on your next project, whether it’s a home renovation or repairs following a disaster, it’s important to know the warning signs so you don’t become the next victim.
What exactly is a contractor scam?
You expect a contractor to provide professional repairs or updates to your home. However, when they make promises but they don’t deliver on them, that’s a scam. They intentionally mislead you. They might do a job that is substandard, overly expensive or they may not do the job at all. If your area is hard hit by a wildfire, tornado, hurricane, extreme weather or other disaster, be aware. Scammers posing as contractors may try take advantage of the situation.
Types of Scams
Pushy, door-to-door contractors
Beware of contractors who show up at your door, unsolicited. That’s the first red flag. When they are high-pressure salesmen, you know something is wrong. They can be very convincing, but don’t fall for discounts that only apply if you hire them on the spot. If you didn’t ask for their quote, chances are they are not the right contractor for you.
Out-of-state contractors
Some contractors chase storms to look for easy money. Be suspicious of anyone out-of-state who is offering a quote on work. Be especially careful of contractors working out of their vehicle rather than an office. An out-of-state contractor can be hard to contact if you have issues or work isn’t completed. Choose a local contractor instead.
Unlicensed and uninsured
Scammers may tell you they don’t need to be licensed to do the work. That’s not the case. Your state likely has requirements a contractor must meet. They need to be licensed, and they should be able to show you a license from the state contractor’s board. Double check the number that they show you with the board; scammers can sometimes present inactive licenses. A contractor should also have proof of insurance. If they don’t, that means you could be paying for expensive mistakes that they make.
No references and/or bad reviews
Ask for photos of previous work and customers you can contact. If a contractor cannot provide that, then it’s likely they are not legitimate. Also do a search online for the contractor’s name along with the word “scam” or “complaint.” Read the reviews. Check with the Better Business Bureau to see if there are complaints filed. You might find reasons not to hire this contractor.
No written contract
You should know in writing what work will be done for what price. When contractors don’t provide a written contract before work starts, that’s not professional. You should always thoroughly read the contract, including the fine print. Don’t sign it if you have any concerns. Never sign a blank contract.
Payment requires in full at the start
Don’t deal with a contractor who asks for payment in full upfront. Sometimes contractors require a deposit, but full payment should never be provided before work is done. Know that you can negotiate a reasonable downpayment; some states even limit how much that can be. Contact your state consumer protection agency to find out more.
Unusual forms of payment
Beware of payment requests for wire transfers, gift cards, payment apps, insurance checks, cryptocurrency or cash. Don’t borrow money from a lender they know. Scammers love these types of payments because they are almost impossible to get back. Beware of scammers who offer to help you qualify for FEMA relief for a fee. FEMA doesn’t charge fees, and you are better off doing that on your own.
Cost quotes on places you cannot see
Don’t let an unknown contractor inspect your roof and then tell you what must be done. Ask for pictures of places you cannot easily access, such as crawl spaces, ducts, your roof, etc. Then verify that those images are of your home. If it is a cost quote on an area that you cannot see, get several quotes from those you trust.
Promise of immediate repairs
If something sounds too good to be true, it probably is. Don’t believe a contractor who promises immediate repairs. There’s usually a timeline for quality work. Make sure the contractor you choose doesn’t cut corners by skipping steps to get repairs done right away.
Frequent unexpected expenses
Whenever there’s a construction repair job, there’s a chance of unexpected expenses. Your contractor may find mold, for example, when they work on your home. However, when there are frequent unexpected expenses or expensive ones, get a second opinion. You may find that these unexpected expenses aren’t real ones at all.
Low-grade materials
Make sure the material listed on the estimate is the material being used. Contractors can switch out low grade materials to save money and sacrifice quality.
No one on the job
If no one is on the job during working hours, that’s a big red flag. It could be that your contractor is using subcontractors that arrive after their day jobs. Or it could be that no one will show up to do your work at all.
Protect Yourself from Scams
You can take precautions to help prevent falling victim to a contractor scam. Here are some guidelines.
Contact your home insurer. When your home is damaged from extreme weather or other disasters, your insurer will need to survey the damage before you get it repaired. They will help you prepare a claim and identify reputable contractors. Before you hire anyone, verify your insurance coverage. Don’t rely on a contractor to tell you what is covered.
Get multiple quotes from local contractors. That way you’ll know if the price is in the ballpark. Remember that the lowest bid is not always the best. That contractor may be cutting corners. Also make sure you are comparing apples to apples. Pro Tip: use the BBB Get a Quote tool at https://www.bbb.org/get-a-quote.
Do your research. Check references and ask for photos. Verify your contractor’s license and insurance. Read online reviews and look up your contractor on the Better Business Bureau.
Get a written contract. Make sure it includes the contractor’s name, address, phone, license number, an estimated start and finish date, a payment schedule, the scope of work and cost of labor and materials. Make sure it also includes a written statement of your right to cancel the contract within three business days if you signed it in your home or in a location other than the contractor’s permanent place of business. Make sure it has no blank spaces that a contractor could fill in later.
Guard your money. Never pay a deposit that is more than 25% of the total cost and never pay anything until materials are delivered to your home. Don’t sign over insurance checks to contractors. If you have any questions, contact your insurance agent. Don’t make the final payment until the job is complete.
If you suspect a scammer, report them. You can report scams to the Better Business Bureau, the National Center for Disaster Fraud, and the Federal Emergency Management Agency (FEMA). You can also consult StopFraud.gov.
Your home is one of your greatest investments. Make sure it is covered with the right insurance.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
Back-to-school shopping can be stressful and expensive. But it doesn’t have to be. Discover how to turn this annual ritual into a stress-free, budget-friendly adventure, ensuring your kids are well prepared without breaking the bank.
#1: Do an inventory at home.
Before you buy anything, “shop” at home. See if there are leftovers from last year. You might already have a supply of #2 pencils or unused notebooks. Check closets and last year’s backpacks. Make it a fun treasure hunt where the kids get involved.
#2: Spread out the shopping.
Give yourself plenty of time to find the best prices on the items on your list. Start early so you won’t feel pressured to buy everything in one trip. Also, remember that you don’t have to get it all by the start of school. Email the teacher to ask which items are most important, and which can wait. For clothing, start with the necessities: one pair of everyday shoes, one pair of sneakers, and a couple of new outfits. Wait until the fall holidays to shop the clothing sales.
#3. Check giveaway groups.
There are communities of recyclers who give away things for free. You can find many of them online. Check with your our local Buy Nothing Project group on Facebook or the Buy Nothing app. Look for your area’s Freecycle Network. Join these groups and ask your neighbors for what you need. You might be surprised at what you find, and it could inspire you to do your own decluttering.
#4. Shop without the kids.
It will be less stressful to shop without the kids and easier to stick to your budget. Plus, if you’re not doing a dedicated shopping trip for school supplies, it’s easier to pick up things as you’re out. However, if you are going to bring your kids, get them involved. Set expectations about what they will be getting so they are not disappointed. Start with a short list of items and a budget. Pro Tip: If they can spend under that amount, give them the extra to spend on something they’d like.
#5. Go with a plan.
Estimate how much items will cost and set your budget. Keep that list with you so you can check it periodically as you’re out. Importantly, stick to the list. Remember you don’t have to get everything in one trip or at one location. Watch weekly ads from local stores. Download apps to get notices of sales. Be strategic about how and where you shop.
#6. Compare prices before you buy.
How do you know you’re getting the best price? Try online tools like Google Shopping, which will compare prices. Coupon browsers like Honey, Capital One Shopping and CouponCabin also can help. Some stores match competitors’ advertised deals but there are limitations. (For example, Walmart will match a price on one item per day and only if it’s on Walmart.com for a lower price.) Shop with a credit card that gives cash back for extra savings.
#7. Check dollar stores and thrift stores.
Dollar stores offer great deals on essential supplies, such as glue, highlighters, pencil pouches, notebooks, and more. However, as our teacher friends often mention, it’s worth purchasing the name brands, Crayola and Ticonderoga, for crayons and pencils which may not be found at the dollar store. Thrift stores are also a great source to gear up for back to school. Look for gently used items from clothing to backpacks. Just make sure to check back regularly for new finds.
#8. Use discounted gift cards.
This clever hack allows you to buy a gift card for less than its face value. Then you can spend it at full value. That’s an automatic discount if you use it for school supplies. Check out sites like GiftCardGranny, Raise, MyGiftCardsPlus, and CardCash. Just make sure to carefully read the requirements. Do you have an unused gift card that you won’t use? You can sell it for extra cash too.
#9. Buy in bulk.
If you have membership to a warehouse store, check out school supplies that you can buy in bulk. You can split them among your children or share them – and the cost – with friends and family.
#10. Watch for sales after you’re done.
Keep your receipts. If the price drops on your item within two weeks, you may be able to get some of your money back. Policies vary per store so check with yours when you make the purchase.
Finally, prepare for the school year by brushing up on back-to-school safety and carpooling tips. Teach your kids how to be safe around cars. For added peace of mind, make sure you and your precious cargo are fully protected with the right vehicle policy. Wishing you a happy and healthy back-to-school season!
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
It’s a tradition in teaching to reach into your own pocket to cover classroom supplies and those fun ‘extras’ that make learning memorable. Educational grants can help. From pencils to white boards to field trips, these grants can offset your expenses and, in some cases, boost your school’s budget.
Unlike other types of funding, grants do not have to be repaid. Most grants require an application, and a report on how the money was spent. Some can be competitive. If you meet the criteria and the deadline, however, you’re on your way to earning free money.
We did a deep dive to discover some of the best and most innovative grants for educators, both on the national and state levels. Here’s what we found.
National
Colibri Special Project Grant
Up to $5,000
These grants fund projects that significantly advance student learning and create engaging student experiences. Grants are for grades K-12 in public schools. Please note however: these grants do not fund textbooks for schoolwide use, technology or A/V equipment, travel, admission fees, or field trips.
Dollar General offers youth literacy grants to help students below grade level. The grants can be used to implement new or expand existing literacy programs, purchase new technology to support literacy initiatives, or to buy books, materials, or software.
The Supply a Teacher program seeks to provide necessary resources for teachers in underserved schools. These grants are open to teachers at schools where 50% or more of students qualify for the National School Lunch Program. Applications are accepted year-round.
NEA Student Success Grants are meant to elevate and improve student development through project-based learning in public schools. Funds may be used for materials, equipment, transportation, or technology. To be eligible for this grant, you must be a member of the NEA.
Grants are available for PreK through 9th grade teachers to purchase and maintain small animals in the classroom. There is also a Dogs in the Classroom program that supports animal-assisted therapy.
These grants are for project-based learning in science, technology, engineering, and math. Note however that the Foundation does not fund computers, laptops, or tablets.
Voya funds innovative projects for K-12 classrooms, both public and private. Project areas span the curriculum, and include history, social sciences, psychology, economics, political science, career technical education, English, music, art, physical education, nutrition, and wellness.
Each quarter, the ASBA awards grants to enhance PreK-12 classroom learning. Teachers must describe how the project will impact student achievement and how it reflects the priorities of their district. Grant winners must attend a board meeting where they will be recognized.
This organization provides funds for teachers to use in their classrooms however they like. There also are local CalRTA divisions that offer direct support for local schools.
PACE Classroom Grants may be used for a variety of projects and materials, including but not limited to books, software, calculators, math manipulatives, art supplies, audio-visual equipment, and lab materials. Awards are competitive and PACE members are given preference.
These grants are for PreK-12 teachers in Idaho. The funding is to be used for specific and innovative educational classroom projects and school programs. Projects should enhance the state or district curriculum for the grade level.
These grants cover physical improvements, material needs, professional development, and community engagement. Applicants must be a K-12 public or nonprofit private school in Casey’s 16-state footprint, which includes Kansas. Submissions are due in the fall and awarded in the spring.
These grants may be used for a variety of projects and materials, including but not limited to books, software, calculators, math manipulatives, art supplies, audio-visual equipment, and lab materials. Awards are competitive, and preference is given to members of the Kansas Association of American Educators.
These grants are designed to help students meet basic, urgent, and immediate needs so they can succeed in school. Importantly, these needs must be unmet by any other source. California Casualty has proudly worked with the Oregon Education Association (OEA) as their exclusive auto & home provider since 1974, and regularly donates to the Foundation.
This funding is available for Wyoming educator professional development, and can include attending workshops or seminars, hosting events or activities, purchasing materials for use in the classroom or out-of-school educational settings, continuing education, and other related activities.
The California Casualty Music & Arts Grant was established to provide support for K-12 public schools negatively impacted by reduced budgets. To apply for this grant, you must be a member of an education association that partners with California Casualty. Learn more at the link below.
This namesake program was established 2010 based on California Casualty Chairman, Emeritus Tom Brown’s belief that lessons learned through athletics – teamwork, trust, communication, and confidence – translate in the classroom and beyond. The program is open to middle and high school employees who are members of participating education association. Learn more and apply using the link below.
Do you have a grant that’s not mentioned here? Share it with your colleagues in the comments.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
You may have your eye on that new PlayStation for your nephew. But the holidays are also a great time to buy other big-ticket items from washing machines to kitchen appliances and even cars. That’s when many will go on sale.
If you’re looking to save this season, follow these tips for how to score bigger purchases for less, and how to save for everyone on your list.
The Best Times to Buy
You can usually find the best deals on Black Friday and on Cyber Monday—the Friday and Monday, respectively, following Thanksgiving. These are the times that many items go on sale. (See the next section for specific items.) Similar sales will be found on other major holidays, including New Year’s Day, President’s Day/Weekend, Memorial Day, Fourth of July, Labor Day, and Veterans Day. Small Business Saturday, a relatively new celebration, occurs the Saturday after Thanksgiving. Super Saturday, the Saturday before Christmas, often is a good time for last-minute deals. Finally, Amazon Prime Day and similar days from other retailers can offer substantial savings. That’s good for your budget.
In addition to holiday sales, off-season purchases can save you plenty. Buying an air conditioner at the end of summer, or a snow blower after winter is done, can be cost-effective. You’ll just have to wait until the next season to use it.
Holiday Sales
Some items take center stage during the fall and winter holiday season. These are often popular gift items, but not always. Bankrate reports that December is the best time to make these purchases:
Household appliances: New appliance models typically come out in November. That means sales start on last year’s models to make way for the new ones. This includes washers and dryers, dishwashers, refrigerators, microwaves, coffee makers, blenders, toasters, vacuums, humidifiers, carpet cleaners, and more.
Technology: November and December are great times to buy smart devices, tablets, smart watches, and computers, which often go on sale this time of year. Save even more by buying the previous version after the new one comes out.
Exercise equipment: December is a popular time to buy exercise equipment, with January coming in at a close second. Companies often have sales on home workout equipment, from treadmills and ellipticals to rowing machines and exercise bikes, starting Black Friday.
Security cameras: Prices are known to drop on these essential devices just around the time that thieves become active—during holidays. That’s when companies try to get rid of older models to make way for new ones, and often offer discounts.
Toys and games: Retailers start discounting toys and games close to the holidays so that they won’t be stuck with too much stock. However, popular toys sell out fast, so you may need to pay full price to get one.
New vehicles: Car prices drop at the end of the year as salespeople push to make their quotas. The best time to buy a new car is October through January 1. If you miss that window, May is when the new models start coming and dealers look to get rid of older stock.
More Ways to Save
Whether you’re buying a big-ticket item or a meaningful, smaller gift, use these tips to save even more.
Compare prices of an item at various retailers before you buy it. Use apps like Honey and PriceGrabber.
If shopping online, look for free shipping. There’s a free shipping day in mid-December, and many retailers participate.
Many stores offer discount codes during the holiday season and additional discounts for teachers, students, veterans, military families, seniors, nurses, and first responders. Look for or ask about discounts that apply to you.
Don’t wait until the last minute. You will tend to overspend due to the stress of getting something.
Looking for extra cash for holiday gifts?
Some insurance companies allow you to skip payments around the holidays. At California Casualty, you have the option to skip your auto insurance payment for two whole months. (You also have this option to skip in the summer.) Ask your agent for details.
Happy holidays from all of us at California Casualty!
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
Insurance policies may seem like they’re written in another language. Yet it’s important to understand the terms so you can get the most out of your coverage. Here’s a quick tutorial on deductibles and what they mean for your auto and home insurance.
What is a deductible?
Simply put, a deductible is the amount of money that you pay out-of-pocket before insurance kicks in. Generally, your insurer deducts the deductible amount from the payment that they make on your claim. You can find the deductible listed on the declarations page, which is the front page of your policy.
Example: If the cost of a repair is $1,500 and your deductible is $500, insurance will cover $1,000.
Unlike health insurance deductibles, you do not have to reach an annual amount in an auto or home policy before insurance will pay. Each time you file a claim, there is a deductible (if it applies). One exception is the state of Florida where hurricane deductibles are once per season.
High vs. Low Deductibles
You select your deductible from a range of choices provided by your insurer. If you choose a lower deductible, that means your insurer will need to cover more in the event of a claim, which will raise the cost of your policy. If you choose a higher deductible, you’re willing to cover more of the cost in a claim, and that will lower your premium.
Lower deductible = Higher insurance premium
Higher deductible = Lower insurance premium
It’s important to note that you will have to pay the deductible if a loss occurs in a car accident, even if you think the other driver is at fault.
You may think twice about filing a claim for a damage amount that is close to your deductible. For example, if your deductible is $1,000 and repairs are $1,250, it may not be worth it. You’d be responsible for the bulk of the repairs, and by filing a claim, your rates may go up when you renew. See our blog about when you need to file a claim and when you don’t.
There are different types of coverage available to you for your vehicle. Some may be mandated by your state or your lender, and others are optional. Not all coverages carry a deductible.
The following coverages include a deductible, and you may choose a different deductible amount for each one:
Collision: This coverage kicks in when you collide with another car or object.
Comprehensive: This coverage is for damage from other causes such as hitting a deer or having a tree fall on your car.
Uninsured motorist property damage (UMPD): This coverage is for property damage from accidents with another driver who is uninsured and at fault. UMPD may or may not have a deductible; it depends on the state and the type of loss. (Uninsured motorist coverage, which is different than UMPD, does not have a deductible.)
Personal injury protection (PIP): This coverage pays for medical expenses regardless of who is at fault.
Pro Tip: Being able to set a deductible for each type of coverage allows you to assess the likelihood of your needing that coverage. For example, if you live in the country and might be more likely to encounter a deer than another car, you can lower the deductible for comprehensive and raise the deductible for collision.
There is auto coverage that does not carry a deductible, and that’s liability coverage. With liability coverage:
If you are at fault: You hit another car and cause property damage and/or driver injuries. Your liability covers the damage to the other driver and his/her car without requiring a deductible. However, your own collision policy pays for damage to your car, which would come with a deductible.
If someone else is at fault: Another driver hits your car and/or injures you. Their insurance will pay for damages and medical expenses. There are no deductibles.
Your insurer can provide quotes for different levels of deductibles and work with you to determine the best coverage for your budget.
Homeowner’s Policies and Deductibles
Whether you’re buying a new home, or you’ve owned yours for years, your homeowner’s policy protects your investment. Costs vary by location, age of home, construction type, number of bathrooms, and many other factors.
With homeowner’s insurance, there are generally three choices for deductibles:
Flat deductibles: You would choose a fixed dollar amount, such as $1,000. That is the amount you would pay out-of-pocket before insurance kicks in.
Percentage deductibles: You would choose percentage of your Coverage A limit. If your policy covers your home at $300,000, and you choose a 2% deductible, you would be responsible for 2% of $300,000 or $6,000.
Peril-specific deductible option: You could have a flat deductible amount and then carry a different one specifically for wind/hail losses.
There are coverages under your home insurance that do not carry a deductible. These include Scheduled Personal Property (SPP) Coverage, Coverage E: Personal Liability, and Coverage F: Medical Payments to Others.
Scheduled personal property (SPP) Coverage is for items that have higher values above your personal property coverage limits. This includes heirlooms, watches, jewelry, instruments, furs, or anything about which you are especially concerned such as a special guitar. (Musical instruments for example do not have a contractual limit but you will want to schedule an instrument that is special to you.) SPP offers much broader coverage for your precious items – if you lose a set of earrings, they are covered; if a diamond falls out of a ring, or if a guitar falls off a shelf and gets stepped on, they’re covered. There is no deductible if the covered items are stolen, lost, or damaged. Insurance pays the lowest of the four options: repair, replace, actual cash value or the amount of insurance.
Personal Liability protects you if a claim is made or a suit brought against you for bodily injury or property damage caused by an occurrence to which coverage applies. These are expenses paid to third parties for their injuries and damages. Liability covers you at your place or anywhere in the world. If you are found liable, the policy will pay up to its limit of liability for damages for which an insured is legally liable. This can include medical expenses, lost wages, pain and suffering, and permanent scarring. The policy also provides a defense in court, if needed, for the policyholder. This is at the insurance company’s own expense.
Insurance may seem complicated, but it doesn’t have to be. Your agent can answer any questions you may have. Contact your insurer to find out more about protecting your most valuable possessions.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
