You worked hard, saved your money and bought a home. Now you want to protect the largest investment you have ever made with homeowners insurance. You’ll sleep better knowing that your insurance will help you rebuild if there’s a fire, tornado or a tree falls onto your home. What you may not know are the many things it might not cover. Your sweet dreams of protection could turn out to be a nightmare because you don’t have the coverage you thought you did.
Here are five things not covered by most home insurance policies:
Earthquake and land movement. As landslides and earthquakes have become more common in many states, many people are surprised to learn that earthquake or land movement damage is not covered by standard homeowners insurance. You need to purchase separate earthquake and landslide insurance protection.
Floods. Multiple surveys have found a majority of homeowners and renters thought their property insurance protected them from flooding; it doesn’t. If a river overflows its banks or storm surge sends tides into your home, you’ll need to purchase separate flood insurance, provided primarily by the federal government. Keep in mind there is a 30 day waiting period before any flood policy can go into effect.
Sewer backups. The sludge can do serious damage and make your home unsafe until it’s properly cleaned up, but it’s not covered under most homeowner insurance policies. Your insurance company can provide a special endorsement to cover sewer or sump pump backups. What you may not know is that homeowners are responsible for the maintenance of sewer and water lines through their property up to the sewer main, and many cities and utility departments will deny responsibility for most sewer incidents.
Maintenance issues. Insurance companies can dispute payment of damage or injuries if you fail to repair a broken step or other obvious hazards, or for mechanical breakdown of an appliance. In most cases, you will also need a special rider to cover food that might be lost due to a power outage or failure of a freezer or refrigerator.
Expensive jewelry, fine art, firearms, musical instruments, furs and collectables. Many people learn after a fire or tornado that their precious items only had minimal coverage. You’ll need special scheduled personal property coverage, often called a “floater,” to make sure they are protected for their full value.
And, if you have a swimming pool, trampoline or certain types of dogs, you need to call your insurance company to make sure you are protected. Many insurance companies are starting to exclude them from policies or refusing to insure homes that have one or more of these.
The Property Casualty Insurers Association of America (PCI) also warns that as many as 60 percent of America’s homes are underinsured because owners:
Didn’t update insurance after remodeling or adding on
Only purchased enough insurance to cover the mortgage
Underestimated costs associated with updated building codes
Didn’t factor in building material inflation in replacement costs
Another important step many homeowners fail to take is to do a home inventory. Nobody can predict when a fire or tornado might strike, but you can make sure your possessions are properly protected. A survey by the National Association of Insurance Commissioners found 60 percent of homeowners have not documented all the things they own. What does that mean to you? Completing a home inventory can speed up your claim and help you determine how much coverage you need. The Insurance Information Institute has created an easy to use home inventory brochure. Items to include are:
The flash of light and the crack of thunder can be scary and impressive, but it can also be deadly. Do you know what to do if a storm approaches?
Many of us still don’t know the danger posed by thunderstorms. The National Weather Service reports an average of 49 lightning fatalities per year, with 27 in 2015. Florida leads the nation in lightning deaths, followed by Texas. Many hundreds of others survive a strike, suffering varying debilitating injuries, some for the rest of their lives.
Lightning strikes the United States more than 25 million times a year. It is one of the most erratic and unpredictable elements of thunderstorms. Most victims aren’t struck during the most intense part of a storm; they are usually injured right before or after the main part of the storm passes. This is because a bolt can strike as far as 10 to 25 miles away from the parent thunderstorm and most people don’t seek shelter until the storm’s full fury. That’s why the lighting safety slogan goes, “When thunder roars, go indoors.” It’s recommended that you stay indoors until 30 minutes after the last thunderclap is heard.
Oh, and the myth that lightning never strikes the same place twice is false. Any tall tree, structure or tower that is isolated can be struck over and over. The Empire State Building is reportedly hit nearly 100 times a year.
It’s imperative that you and your family know what to do when a storm approaches. The National Weather Service has these important safety tips:
No place outside is safe
Seek immediate shelter inside a building or a vehicle (open-sided stands or vehicles like golf carts don’t offer any safety, neither do convertibles, even with the top up)
Don’t seek shelter under trees
Get out of and away from bodies of water immediately
Stay away from objects that conduct electricity like metal towers, barb wire fences, power lines or windmills (these cows were killed when an electrical discharge traveled through the fence where they were lined up)
Even in your home, lightning can still be a danger. Here are safety tips for when you are indoors during a storm:
Stay away from windows and off porches
Don’t touch or stand near metal pipes and plumbing, don’t wash your hands, take a shower, do dishes or laundry
Avoid using corded phones (most home lightning injuries come through charged phone lines)
Stay away from electrical devices like TVs, washer/dryers
Lightning damage to property and homes can be costly. Make sure you are covered.
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.
Are you prepared for hurricanes, tornadoes and fires? If your home was threatened would you know what to do? This is the season and at the very least, all of us should:
Unfortunately, no matter how prepared we all are disasters happen. It’s important that you follow these important steps to avoid identity theft or fraud if your home is damaged or destroyed:
Contact your insurance company as soon as possible
Secure the property from further damage or theft
Contact creditors, banks, or appropriate agencies to report important documents (social security cards, tax returns, birth certificates), credit cards or banking papers that might have been scattered or lost in the disaster
Check your credit report to make sure nobody is using your personal information
Beware of “fly-by-night” work crews and contractors
Be skeptical of contractors encouraging you to spend large sums on temporary repairs
Attain recommendations and check the Better Business Bureau before hiring any potential contractor
Review the contract thoroughly and get written estimates
Avoid dealing with contractors that request money up front
Never pay a home contractor in cash – only pay by credit card or personal check
Do not sign over your insurance settlement check
Don’t be pressured or fall for “one-day-only” offers
Be cautious if approached by housing inspectors claiming to represent FEMA or the SBA
Keep or document receipts and other expenses if you are evacuated or forced to find another place to live because of damage to your home or apartment
Your budget may already be on life support if you are getting married. The average cost of a wedding in the United States is now over $30,000 and climbing. I cringe to think of what tying the knot will cost when my daughter finally meets the man of her dreams and there is a proposal.
The costliest weddings are in in Manhattan, where the average bill soars to over $88,000. The average where I live (Colorado) is around $32,000.
Renting the venue and paying for the reception was the biggest expense, averaging almost $15,000. The wedding ring and other jewelry came in at $5,800.
If you are planning a wedding (or a father taking a loan to pay for one), here are some ideas for reducing the stress and the expense of saying, “I do.”
Pare down the guest list. The average cost per guest is around $200. Times that by 100 and you’ve already hit $20,000. It’s a hard task cutting the invites but it could save you thousands of dollars.
Pick a less expensive place for the reception. Instead of a fancy downtown hotel, consider a meeting hall. Having it at a restaurant will also save tons on catering, rental and alcohol. You can really cut your costs and use a friend’s or relative’s home.
Reduce your flower costs. Fresh flowers are beautiful, but like memories, they fade and wilt. Choose flowers that are local and in season. Even though you might have fewer flowers, most people won’t notice.
Simplify your menu. Hors d’oeuvres and cocktails cost less than a five course sit-down meal. A nice compromise is a buffet luncheon or dinner.
Schedule your wedding in the off season or on a weekday. Weekends from June through September, when most weddings occur, will cost more. You’ll find better deals if you plan a wedding for the fall or winter months, except on Valentine’s Day.
Create your own invitations. Instead of frilly paper and multiple ink colors, go simple to cut production, printing and mailing costs.
Hire a DJ instead of a band. Many couples on a budget also make their own mix-tape or iPod play list.
Let your guests help with wedding photos. Hire a photographer for the special portrait and family shots, but purchase some low end digital or disposable cameras for capturing the reception. You will be amazed at the pictures your friends and relatives will take for you.
Get a smaller cake. Forget expensive tiered cakes with fancy frostings, order fabulous sheet cakes that can taste just as good but cost much less and are easier to serve. Some couples have opted for cupcakes, pies, or desert bars with chocolate fountains instead of the cake.
Here’s one final money savings tip: don’t mention you are taking estimates for a wedding. Many vendors charge more for weddings than other events. Instead, say you are planning a family party and you could save anywhere from 20 to 40 percent.
Tie up your insurance.
Once the rings are exchanged and the honeymoon is over, there’s another important step – getting your auto and home insurance in order. Here’s a checklist for newlyweds that can also save you money.
Combine Your Insurance
If you have separate cars with different insurance companies, now that you are married you can find discounts by putting both vehicles on the same policy. It will also ensure that both drivers are covered no matter which car they use. Get extra savings by bundling your autos with your home or renters insurance.
Marriage Discount
Make sure to inform your insurance company that you got married – most auto and home insurance companies offer important discounts for newlyweds. Men under the age of 25 are usually considered high risk drivers. However, once they marry they often see a big drop in insurance premiums. The lower rates can also apply to those in domestic partnerships.
Increase Homeowner or Renters Coverage
Wedding presents are wonderful. You now have a new set of china, expensive new appliances and other things for your home. These assets need to be covered. Talk to an insurance advisor to make sure you have enough coverage to protect all the things you own and to increase your liability protection. It’s also a great time to create an inventory of your possessions to help you purchase the right insurance protection and make filing a claim much easier.
Get Extra Protection for High Value Items
That beautiful new wedding ring and special gifts like fine art or silverware may need scheduled personal property protection, often called a “floater,” to make sure they are covered for their full value. Most homeowners and renters policies will provide limited coverage for those items. Scheduled personal property coverage will also pay to replace a ring, without a deductible, even if it was misplaced or damaged in the disposal.
While they can be lovable, cuddly and loyal, if you have a dog, be careful; dog bites accounted for more than one-third of all homeowners insurance liability claim dollars paid out in 2015, costing more than $530 million according to the Insurance Information Institute (III).
The Centers for Disease Control and Prevention reports that about 4.5 million people are bitten by dogs each year with 885,000 of those requiring medical attention – about half of those were children.
The III reported that while the number of dog bite claims nationwide fell seven percent in 2015, the average cost per claim jumped 16 percent to over $37,000. California led the nation with 1,684 dog bites reported to insurance companies. .
“The average cost per claim nationally has risen more than 94 percent in the last decade (2003-2015), due to increased medical costs as well as the size of settlements, judgments and jury awards given to plaintiffs, which are still on the upswing,” said Loretta Worters, vice president with the III.
May 15-22 is National Dog Bite Prevention Week®, providing information and tips to help pet owners and the public avoid the serious health issue associated with dog bites.
Experts say that even normally docile dogs may bite when they are frightened or when defending their puppies, owners or food. The most dangerous dogs are those that suffer from poor training, irresponsible owners and breeding practices that foster viciousness. The CDC finds that over half of the dog-bite injuries occur at home and people who have two or more dogs in the household are five times more likely to be bitten than those living without canines.
The Humane Society of the United States and the American Veterinary Medical Association offer these bite prevention tips:
Be a responsible dog owner – license it and provide regular veterinary care including vaccinations
Neuter your pet
Spend time with your dog and socialize it around people and other pets
Keep your dog away from stressful situations like crowds
Don’t let children approach an unfamiliar dog
Discourage children
Never leave a baby or small child alone with a dog
Refrain from approaching a dog at eye level or too quickly
Don’t interact with an unfamiliar dog and remain motionless if approached by one
Immediately seek professional advice from veterinarians or animal behaviorists if your dog develops aggressive or undesirable behaviors
Homeowners and renters need to know the liabilities that come with dogs.
If you have a dog, you are liable if it bites and injures someone. The Insurance Information Institute recommends pet owners have at least $100,000 to $300,000 liability coverage with their homeowners or renters policy. High income earners or those with expensive homes and assets might consider an umbrella policy.
In some states, statutes make the owners liable whether or not they knew the dog had a tendency to bite; in others, owners can be held responsible only if they knew or should have known their dogs had a propensity to bite. Some states and municipalities have “breed specific” statutes that identify breeds such as pit bulls as dangerous; in others individual dogs can be designated as vicious.
In Ohio, for example, owners of dogs that have been classified as vicious are required to purchase at least $100,000 of liability insurance. Once a dog has bitten someone, it poses an increased risk. In that instance, the insurance company may charge a higher premium, non-renew the homeowner’s insurance policy or exclude the dog from coverage.
Springtime; for many of us it means we can start hanging up the cold weather gear and begin getting out the gardening equipment. However, the pleasant change in weather can often lull us into a false sense of security. In fact, I’m reminded of the warning Julius Caesar was given, “Beware the Ides of March.”
So what does that warning have to do with you and me? While March marks the end of winter, it starts a dynamic time of year with a clash of late season cold fronts and warm gulf air leading to dangerous thunderstorms, flooding and even tornadoes.
Many scientists warn that between climate change and El Nino, we are facing some of the most extreme and unpredictable weather patterns ever seen: one of the worst droughts and fire seasons ever in California followed by torrential rains and heavy snows, record flooding in Texas, Missouri and South Carolina, rare deadly December tornadoes across the Midwest and South and unprecedented holiday warmth in the Northeast.
Maybe we should change Shakespeare’s line to “Beware the Ides of Spring.”
Springtime Dangers
Flooding
Flood season begins in spring as winter snow and ice melt. Severe thunderstorms can add tremendous amounts of water to the runoff, often inundating cities and towns located in flood zones.
Flooding is the most common and costly natural disaster in the United States, causing an average of $50 billion in economic losses each year. Anyone living in a low-lying area near a lake, river or stream should make sure they are protected. Homeowners and renters insurance don’t cover floods from rivers, streams, or other runoff; if you want your home and valuables protected, you need flood insurance that often has a 30 day waiting period.
Flooding caused by a damaged roof or broken water pipe is covered by most homeowners insurance. While it can happen any time of year, springtime thawing can be the culprit. Do you have enough coverage if water should destroy your valuable possessions? The Federal Emergency Management Agency estimates that just two inches of water can cause more than $10,000 for repairs and replacement of flooded items. Six inches of water can add up to more than $30,000.
Fires
While a house fire can happen any time of year, spring marks the start of wildfire season. More than 4,600 structures were destroyed by wildfires in 2015, 2,667 of those were homes or apartments.
Fuels, such as grasses and brush, start to dry out as temperatures warm. Before they become a threat to your home you should mow and trim back any grasses, trees or bushes to create a 30 foot defensible space. Don’t forget to move gas grills, firewood and other combustibles 15 to 30 feet away from your home. You can find more wildfire prevention tips here.
Tornadoes
The volatile mix of warm and cold usually results in tornadic activity. Almost every state has experienced a tornado, and if you live in the South, Midwest or points east you may have already taken these tornado preparedness actions:
Identify a safe place in your house (basement, storm shelter or sturdy interior reinforced room on the lowest floor of the home
Prepare an emergency kit with first aid supplies, food, water and sanitary needs (include important medicines, eye glasses, etc.)
Practice tornado drills
Severe Thunderstorms
Thunderstorms are the top cause of insured loss each year in the United States due to high winds, large hail and dangerous lightning. When a thunderstorm approaches, immediately move indoors and away from windows and avoid electrical equipment and corded telephones. Preparations for severe thunderstorms are much the same as tornadoes.
How to Protect Your Property
Before wild weather has a chance to threaten your home, here are some key tips to help prevent damage:
Check roofs and shingles for damage, lifting or other signs that they might leak
Clean gutters and drain spouts and make sure they direct water away from your home’s foundation
Look for loose boards, cracking or other damage on decks and porches to avoid tripping, falls or other hazards
Inspect the exterior of your home for cracks, holes or exposed wood or siding that could allow water, insects or small wildlife to get in
Make sure chimneys and vents are well sealed and sturdy to prevent water or wind damage
Trim back trees and bushes, looking for weak or broken branches or other damage, to protect against them falling into roofs or siding
Check Your Insurance
Before a catastrophe strikes, the Insurance Information Institute says you should:
Purchase homeowners or renters insurance
Get flood insurance if you live in a flood prone area
Review your policy so you understand your coverages (replacement costs, replacement of personal possessions, and additional living expenses)
Make a full inventory of everything you own
After a Disaster
If the unexpected should occur, you should take these steps:
Secure your property from further damage or theft
Contact your insurance company as soon as possible
Catalogue your losses and take pictures
Save receipts of meals, purchases and hotels while you are unable to live at home
Be careful of fraudulent contractors
Now is good time to reevaluate your protection against the unpredictable moods of spring; contact a California Casualty advisor to purchase flood insurance, get a review of your policy or add any coverage that you might need. Give a call today at 1.800.800.9410 or visit www.calcas.com.
