by California Casualty | Homeowners Insurance Info |
You’ve bought your dream home and it’s time to get it insured. You want to choose the right coverage to fully protect your investment. While you have a basic idea of what home insurance probably covers, you may not know the particulars.
A homeowner’s policy is actually a “package” of coverages. It protects your home from specific events that can damage your property, and provides additional living expenses if you are unable to live there due to an insured loss. It also protects your personal belongings. In addition, your homeowner’s policy covers you for lawsuits or liability claims that might otherwise be your responsibility if you accidentally injure other people or damage their property. Here’s the breakdown from A to Z (or in this case, F).
Coverage A: Dwelling
Dwelling coverage refers to the structure of your home. This includes the roof, walls, floorboards, cabinets, and bath fixtures. The easiest way to think about it is that if you could tip your house upside down, the dwelling is everything that remains attached.
What is covered: This insurance covers open perils. That means a loss is covered unless it’s excluded by your policy. Coverage A generally covers direct physical loss due to fire/smoke, lightning, windstorms and hail, explosions, vandalism and theft. If one of these perils destroys your home, your insurance provider will pay to rebuild it up to your policy limits.
What is not covered: If it is listed as an exclusion, it is not covered. Typically, natural disasters such as flooding and earthquakes are not covered by dwelling coverage. You can add these coverages with a separate policy or an endorsement added to your property policy.
Coverage B: Other Structures
If your pool is in the ground or installed permanently above the ground on your property, it is covered under Coverage B – Other Structures. This is an insurance term describing a detached structure on your property. Other structures include pools, fences, gazebos, sheds, etc. However, if your pool is above-ground but portable, it is considered part of your personal property and covered by Coverage C – Personal Property insurance.
What is covered: This insurance covers open perils. That means a loss is covered unless it’s excluded.
What is not covered: Typical exclusions include flood, earthquake, or wear and tear. For other structures, the coverage limit is generally set at 10% of your home’s coverage limit. That means if your home is insured for $200,000, the coverage limit for your detached garage would be $20,000. For an additional premium, you can add an endorsement to increase your coverage.
Coverage C: Personal Property
Personal property coverage protects your possessions, such as furniture, clothes, sports equipment, and other personal items. Again, if you could tip your home upside down, everything that would fall out is considered personal property. This coverage protects these items whether they are in your house or off-premises.
What is covered: If your possessions are stolen, or damaged by fire/smoke or any of 16 covered “perils,” your policy will pay for them subject to your deductible. For personal property coverage on a homeowner’s policy, you typically get 50 or 75% of Coverage A, the total amount of coverage for your home. You may choose replacement cost or the actual cash value (ACV) for reimbursement. ACV is the amount the item is worth, minus depreciation for its age. It will cost a little more for a policy that provides replacement cost.
What is not covered: There are dollar limits for certain items, such as jewelry, firearms, animals, cars, planes. See your policy for a full list. You may choose to purchase additional coverage to ensure your valuables are fully insured.
Coverage D: Loss of Use
If your home is damaged in a covered loss, it may not be livable. If that’s the case, you would need to stay somewhere else. Loss of Use, also called Additional Living Expense, covers you for any necessary increase in living expenses, such as lodging, food, and gas.
What is covered: Your policy will provide a flat percentage toward living costs, usually 30% of the Coverage A amount.
What is not covered: Some states have time limits on when you can use this coverage. Payment will be for the shortest time required to repair or replace the damage, or if you permanently relocated, the shortest time required for your household to settle elsewhere.
Coverage E: Personal Liability
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. Liability covers you at your place or anywhere in the world.
What is covered: 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.
What is not covered: You are only covered up to your policy’s limit. Coverage starts at $100,000 but should be increased to a minimum of $300,000. You want to consider how much the home and all of your assets are worth and select an amount up to $1,000,000. If you have a pool, hot tub, trampoline or other attractive nuisance which is likely to attract children, consider adding an umbrella policy for additional coverage.
Coverage F: Medical Payments & Other
If you are not liable, but your guest was injured through his/her own fault, then Coverage F – Medical Payment to Others may cover your guest’s medical bills.
What is covered: Under Coverage F, the insurance company will pay the necessary medical expenses to a person injured on the insured location with the permission of an insured, or off the insured location if the injury is caused by the activities of an insured or caused by an animal owned by an insured.
What is not covered: You and your family are not covered. This is only for guests, and they are only covered up to the limit of your policy.
A Word About Deductibles
Generally, the higher your deductible, the lower the cost of your insurance premium. Since the deductible is the amount your insurance provider will subtract from an insurance payout, you’ll want to select a deductible that you’re comfortable paying out-of-pocket after a loss.
Common Home Endorsements
You may add specific endorsements to your homeowner’s package of policies for additional coverage. Here are some of the most popular ones.
Scheduled personal property (SPP) Coverage is for items that have higher values above your personal property coverage limits. This includes heirlooms, watches, jewelry, instruments, and furs. SPP offers much broader coverage for your precious items – if you misplace a set of earrings, they are covered; if a diamond falls out of a ring, or a guitar breaks, 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.
A Water Back Up and Sump Discharge or Overflow Endorsement covers two potential losses: (1) if the sewer backs up into your home via the sewers or drains or (2) if your sump pump overflows or discharges. The amount of coverage and the deductible vary by states. The endorsement comes with a maximum amount of coverage ($5,000 or $10,000) and its own deductible ($250, $500 or $1,000).
Home Day Care Coverage: This extends your liability coverage to those in your care. Most states require you to have it for licensing, and parents also may request to see proof of this coverage.
Refrigerated Property Coverage: When there is a power outage, the food in your refrigerator could spoil. A standard homeowner’s policy may cover the costs of replacing some of the food. A refrigerated property policy provides additional coverage. A refrigerated property policy adds up to $500 of coverage for property, such as meat that spoils because of a power outage or equipment failure.
Special Computer Coverage: With everyone working remotely, computers have become our lifeline. Consider a special computer coverage option to ensure you are covered for your devices: desktop computers, laptops, tablets and smart phones. With this coverage, you will receive more money for your devices if they are damaged than with traditional homeowner’s.
Permitted Incidental Occupancies: If you have a home-based business, this endorsement increases the coverage for your business property. This includes furniture, equipment, and supplies.
Ordinance or law coverage helps you bring your home up to current building codes for repairs and/or rebuilding.
Identity fraud coverage covers the expenses associated with identity theft.
Remember that you can ask for ways to lower your home insurance costs when you purchase a policy. You may be eligible for group discounts. There are discounts if you have a burglar/fire alarm. There also is a cost savings and convenience of paying in full with most policies.
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.
by California Casualty | Auto Insurance Info |
If your windshield wipers are leaving long streaks and making loud squeaks, they’re trying to tell you something. They’re ready to be replaced.
Your wipers are not meant to last forever. The rubbery blade wears down over time. Squeaks, streaks, and smears happen when the blades don’t make proper contact with the glass. That causes dangerous driving conditions and potential accidents when you can’t see clearly through your windshield.
You generally have to replace your wiper blades every 6-12 months. Look for these signs that your blades are ready for replacement:
• Worn edges
• Cracks, tears, and missing pieces
• Stiffness in the rubbery part (inability to flex)
• Squeaking or chattering
• Streaks on your windshield
If your wipers are leaving streaks but not making sounds, you can clean the blades, which are the rubbery part of your wiper. Dip a rag or paper towel into rubbing alcohol. Wipe it along the blades, and the windshield. This can help extend the life of your blades for another month or two before you have to replace them.
How to replace your wipers
Step #1: Get the right wipers for your vehicle.
Windshield wiper blades come in many different sizes so it’s important to get the right ones. Your vehicle may even use two different lengths of front wiper blades. (Don’t forget your rear one, too.) One way to find the right size(s) is read your car’s manual. You also can go to an auto parts store in person or online to get assistance. The online sites will often have you type in your car’s make and model.
Once you find the right size, you’ll have other choices to make. Conventional and synthetic rubber blades are usually the cheapest. They will break down over time with exposure to the sun’s UV rays. If you are looking for longer-lasting blades, consider silicone, which is more expensive. There are options for sturdy winter wipers, flat blades, and hybrid blades, too. The difference is that with the conventional kind, you can replace just the rubbery blade. With the others, you have to replace the whole piece.
Many national auto parts stores will install the wipers that you just bought there, sometimes for no additional charge.
Step #2: Get the wipers in position.
You’re ready to start the replacement. Turn the car on and give your windshield a squirt of wiper fluid to lubricate it. Then, turn on the wipers just so you can get them into position. When the two blades are pointed upward toward your roof, turn your car off. Get out of your car and pull the wipers forward so they’re standing upright at 90 degrees.
Step #3: Place a towel on the glass.
Wiper blades are spring-loaded. That means that they can snap back against the windshield. Once you expose the metal wiper arm, this could result in a cracked windshield. To protect against that, cover your windshield with towels. Alternatively, you could wrap the metal hook of the wiper arms with a rag once you detach the blades.
Step #4: Detach the blades.
There are two basic types of traditional wiper connections: tab and pin type. There is a slightly different installation process for each type.
Look for the spot on the wiper where the blade attaches to the arm. There may be a tab where the blade connects. If you don’t have a tab, you may have a pin-type connector. If in doubt, check your vehicle’s user manual for blade removal steps.
• For tab connectors, use your finger to push the tab outwards or inwards. As you push, grab the blade and pull it down parallel to the arm. You should be able to pull it all the way out. You may need to tug a bit if there’s built-up debris.
• For pin-type connectors, you will need to pull the tab up, and pull the pin out. Use a small flathead screwdriver to lift the connecting pin. You should then be able to slide the blade off.
Step #5: Install the new blades.
Remove the new blades from their packaging and then proceed depending upon the type of connection.
• For tab connectors, look for a tab suspended in the middle of a long rectangular hole. Slide the arm hook up and over the tab. Pull the blade up until you hear a snap.
• For pin-type connectors, look at the new blade and look for a small hole in the body. Pull the black tab up slightly. Align the hole with the pin on the wiper and it will snap into place.
Step #6: Clean the windshield.
You’ve got new wipers so you’ll want to make sure your windshield is clean, too. Lift the blades up so they are off of the windshield. Use automotive glass cleaner, a clean and dry microfiber cloth, and a little elbow grease. Alternatively, you can use water, dishwashing liquid, and a few drops of vinegar. Dry your windshield with a clean microfiber cloth. Put your blades back down and you’re ready to go.
If you just want to replace the rubber inserts
You can replace the entire windshield wiper assembly (as described above) or you can simply buy new blade inserts if they are available for your vehicle. This can save you money; however, it is a bit more complicated to replace just the rubber and may require tools. Consult your car’s manual for details.
Replacing wiper blades is part of good car maintenance. And as always, don’t forget to protect your vehicle with the right insurance for added peace of mind.
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.
by California Casualty | Auto Insurance Info, Finances, Homeowners Insurance Info |
It may not seem like a big deal, but forgetting to make an auto or home insurance payment or having a lapse in coverage can have serious repercussions.
Let’s say you don’t drive that much anymore, so you miss an insurance payment or two, but then you get into an accident… If your premium goes unpaid, your insurance policy is void. Meaning, your insurance company is not obligated to rewrite your policy. You’ll be left without coverage and will likely have a higher rate when you do find a new carrier because the lapse has now left you labeled as “high risk”.
Your cancel notice gives you the date that payment must be received by, and if that date occurs with no payment, the system will automatically cancel your policy. Once you’re canceled, your carrier will not take you back unless they are required by law.
Let’s dive further into more facts and answer some questions every vehicle or homeowner should know about their coverage.
Home insurance is required if you have a mortgage.
While home insurance isn’t required by law, your lender will require you to be insured if you have a mortgage. Your policy will need to cover wind, hail, fire, and vandalism. The lender will be named as an additional insured. Should you file a claim for damage or loss, the insurance company will issue a two-party check naming you as the insured along with the mortgage company.
If you fail to pay your home insurance, you could have a lapse in coverage. Your policy will cancel, which is a violation of your mortgage agreement, and there will be no coverage in the event of a loss or claim. Also, the homeowner’s insurance is a package, which covers the home, other structures, your personal property, additional living expenses, and provides personal liability. You will lose all of that if the policy cancels.
Car insurance is required by law.
In every state except New Hampshire, you’re required to have car insurance. You have to have minimum coverage in case you get in an accident, though what you are required to carry does vary by state.
When you register your car, you submit proof of insurance. When you buy a car, you can’t leave the lot without signing up for insurance. It’s just along the way that you might accidentally, or on purpose, miss a payment and cause your insurance to lapse.
What is a lapse?
You pay for a specific time period on your insurance. It may be six months, a year, or another timeframe. In all cases, you will have a start date and an end date. As long as you are paying the bills on time, all is well.
If, however, you miss a payment, your coverage lapses. A lapse in coverage can be as short as one day or it can be much longer. Like other bills that you may be late in paying, there may be a grace period and a late fee. Unlike other services, however, you might face more severe consequences including government-mandated ones, if the lapse goes too long.
What happens when you drive without insurance?
If your insurance premium goes unpaid for long enough, your insurer will cancel your policy. Insurance helps with the financial responsibility if you get into an accident. Because it is usually required by law, there are additional consequences if you don’t have it. Here’s a summary of what you can expect if you let your insurance lapse.
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- If you’re in an accident, you would be fully responsible for any damages or injuries.
- Depending upon the state where you live, you may be limited in the amount that you can sue the at-fault driver.
- Your insurance company may cancel your policy and alert the Division of Motor Vehicles.
- Your license and registration may be revoked, and you would be responsible for paying daily fines to the Division of Motor Vehicles. You may also have to pay a fine to reinstate your license and registration.
- Once you are reinsured, you may need to carry an SR-22 form with you for three years, showing proof that you have the minimum required insurance.
- You may have difficulty getting insurance again, as you’re now considered a risk. If you do get insurance, your insurer can raise your rates. Drivers with a coverage lapse of 30 days or more saw an average premium increase of 35%.
- Your car could be repossessed if it is leased or if you are paying a loan.
- Your credit score may drop, which can affect your ability to get a loan or credit card. The lapse will remain on your credit report for up to 7 years.
What happens if your home insurance is canceled?
If you lapse in payments for your home insurance, and as a result, your policy is canceled, your mortgage lender will be informed in writing.
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- Your lender can force you into a more expensive policy, called forced-placed insurance. This insurance only covers the loan amount for the mortgage company. There is no coverage for your belongings or personal liability. Therefore, if the house costs more to rebuild than the remaining loan amount, it won’t be covered.
- If you don’t agree to the insurance, your lender can send your loan into default. This presents a risk of losing your home to foreclosure.
- Your credit score will drop as a result.
- Without insurance, whether or not you have a mortgage, you are responsible for 100% of the costs for any damage to your home if something unexpected happens.
What should you do if you have a lapse in coverage?
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- Once you realize your policy has been canceled or you’ve missed a payment call your insurance company and see what can be done.
- Find out if they are able to rewrite your policy. Pay whatever fines are needed. Many companies may charge extra or interest fees on the remaining balance but California Casualty only charges a small monthly fee.
- If you cancel over a certain number of days, you will be looked at as a brand-new customer and have to meet all underwriting guidelines. You may lose certain discounts or benefits for customer loyalty.
- If you’re unable to make your insurance payment, let your insurer know. They may be able to adjust the policy to lower your cost.
- Your insurer may deny you coverage. In that case, you will need to shop around for a new policy. Be honest with the new company. They will be able to check to see if your coverage has lapsed in the past. Be prepared to pay a higher premium because of it.
- After you get insurance again, contact your state’s Division of Motor Vehicles to update your insurance information. Make sure that your registration and license are still valid.
- Similarly, update your mortgage lender if your home insurance has been affected.
- If you’ve changed insurance companies, and you owe your old insurance company any money, make sure to pay it. They will likely pass it along to a debt collection agency if you do not.
How can you prevent a lapse?
The best way to avoid any lapse in coverage is to set up a system so you will pay your premium
on time.
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- Pay the premium in full if you are able to do so. Consider using your credit card for your annual insurance payment to get extra credit card award points. There is a cost savings and convenience of paying in full with most policies. At California Casualty, if the state allows, both auto and home policies offer this type of savings.
- Set up automatic payments such as an EFT from your checking account or a payroll deduction, if offered or available.
- Set a reminder on your phone or calendar for your premium due date.
- Make sure you know the end date of your policy. From 30-60 days prior to the renewal, California Casualty sends out a renewal policy for the insured to review. Schedule a time with an agent to review your policy to see if you need any updates before the renewal takes place.
- If you switch insurance companies, make sure to time the start date of your new policy with the end date of your old policy so there is no lapse.
- Talk to your insurer about options if you are not driving for an extended period of time. For example, you may be deployed overseas. You still may want coverage since your car would remain at risk for damage due to weather or vandalism, and it could be stolen. However, you can suspend coverage for a time period, including while you are deployed or on sabbatical. This may not be an option if your car is leased or you’re paying off a loan.
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.
by California Casualty | Auto Insurance Info |
Maybe you work from home or you live close to work. Perhaps you regularly use rideshare services or public transportation. As a result, you drive less than most people. If that’s the case, you may qualify for the lower rates.
Your annual mileage is a factor in determining your insurance rate. After all, if you drive less often, you have a reduced chance of getting into an accident. There’s also less wear and tear on your car so it stays in better shape. That’s why insurance companies offer discounts for low-mileage drivers.
Low Mileage Discounts
The average American drives about 13,476 miles a year or 37 miles a day. Low mileage insurance policies generally apply to those who drive about half of that amount or less. Each insurer sets its low mileage number so check with your insurance company to see if you qualify.
Your premium may be reduced by a percentage because you are a low-mileage driver, but how do they get this information if you don’t tell them? Your insurer may order reports from a third-party verified mileage program to get your annual mileage data. That data will be used when renewing your policy to make sure the insurer is using the most accurate vehicle information.
Low mileage discounts are automatic. When the mileage is determined, the rate factor (which can result in a decrease or increase) is automatically applied.
How to Reduce Your Mileage
You may be able to reduce your mileage to qualify for a low mileage discount. Here’s how.
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- Start by calculating your mileage. Write down the odometer reading at the beginning of the week with the date. Then, check it after one week to find out how many miles you traveled. Multiply that number by 52 to get an estimate of about how much you drive a year.
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- Commuting to work is the number one way that people rack up miles. If you do have a commute, investigate the ways that you can reduce the miles you drive. Try carpooling with a colleague. See if public transportation is available. Ask your employer if you’re able to work from home for a portion of your time.
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- Plan ahead when doing errands. Map out where you need to be and group your stops. If your grocery store is on your way home from work, for example, plan to stop en route rather than making an extra trip. Pro Tip: Choose free or low-cost home delivery services to avoid the time on the road altogether.
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- Walk or bike when you can, instead of driving. It gives you the benefit of great exercise in addition to saving on your car’s mileage. Just make sure to brush up on bicycle safety. Pro Tip: Use bike-share programs if your area offers them to save on the cost of a bicycle.
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- If your family has two cars, try using one for daily driving and the other for leisure. In this way, you may qualify for a low mileage policy on the vehicle used less often.
Your car is one of your greatest investments. Keep it well-maintained and protect it 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.
by California Casualty | Auto Insurance Info |
You don’t have to wait for your auto policy to expire to change insurance companies. However, you do need to make sure you’re fully covered without any gaps in insurance. We’ve compiled some guidelines to help you decide if a change is right for you.
When should you think about changing policies?
While you don’t need a reason to change your auto insurance, there are some times when it makes sense for you to revisit your policy—even if you don’t change insurance companies. You may end up modifying your current policy to meet your evolving needs. For example:
• If you’ve had a major life change, such as getting married or divorced, you may need more or less insurance.
• If you’ve moved to a new zip code or state, the new location could affect your premium.
• If you’ve become a homeowner, you can bundle your auto and home and save money.
• If you’ve gone from working out of the home to remote work, your annual mileage may be less.
• If you’ve bought a new car, you will want to check insurance policy options.
• If your teenager is about to get his or her license, that will add to your policy.
• If your credit score has improved, you may qualify for a lower rate.
• If you’re unhappy with your current insurer, you can consider a change.
• If you’re approaching your renewal date, you can terminate a contract without cancellation fees.
Follow these steps to make the change.
Step 1: Consider your coverage options.
Figure out how much coverage you need. If you depend upon your care, you want to make sure that you have enough to replace it if necessary. Also, check your state laws. Some states will require you to have certain car insurance. If you lease or finance a car, your lender or lessor will require you to purchase collision and comprehensive insurance.
Step 2: Compare quotes from multiple insurers.
Get quotes from several insurers, and make sure you are comparing the same coverage, limits, and deductibles. Sometimes policies are cheaper because they don’t have the same coverage. This is also a good time to contact your current insurer to find out about discounts, or other ways to lower your cost. California Casualty offers discounts to nurses, educators, and first responders.
Step 3: Check for penalties and perks.
If you’re in the middle of your policy contract, there may be a penalty for canceling. Make sure you figure that into the decision to switch. You also will want to look for the perks, or little extras, that are offered. Some insurers offer inexpensive roadside assistance or accident forgiveness for qualified customers. Some have smartphone apps or are available 24/7 online.
Step 4: Do your research.
You want to know how your new insurer handles claims, and whether they have a good customer service rating. It may not be worth a lower price if it’s going to be a hassle dealing with the new company. Check out your insurer with the Better Business Bureau, JD Power, or the National Association of Insurance Commissioners.
Step 5: Make sure there’s no gap in coverage.
Car insurance lapses can be expensive, especially if you have an accident on the day in between. If you cancel one policy, make sure the other one is already in place. Your new insurance company can provide proof of insurance to your old company. However, they cannot cancel your policy. You need to do so. You’ll receive a refund for any unused portion. There may be a cancellation fee.
Pro Tip: Also remember to cancel automatic payments to your old insurer with your bank or credit card.
Step 6: Notify your insurer and lender.
Make sure to officially cancel your policy with your old insurer. Otherwise, your insurer will think you simply stopped paying your bill, and you could be liable for charges. Some insurers require 24 hours before canceling, so make sure you are aware of the terms. Also let your lender or lessor know about your new insurance if you are leasing or financing your car.
Step 7: Replace your insurance ID.
Once you make the change, ask for a digital copy of your insurance card. You can also order a printed card. Remember to place your new insurance card in your car’s glovebox.
Finally, if you have an open claim, wait to make a change.
You may not be able to change insurers if you have an open claim with your current insurance company. The claim has to be paid and closed. Also, the rate quoted from your new insurance company may not take into account that most recent claim. If that’s the case, you could have a big increase when you renew with the new company, or even be responsible for a retroactive fee.
Get started with a free quote today at mycalcas.com/quote.
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.
