Limited Time Referral Incentive Program

How would you like to get paid for referring your friends and family to a Great Insurance agent that represents a great Insurance Company? For a limited time you can earn 20.00 for every policy ( No Limit!)  that you refer to me that results in a sold policy, that’s it! You refer them and I will take care of the rest. Sounds simple rite? Well it is! Follow the Instructions below and you will be on your way!

 

Here’s how to get started:

 

‎1) Register at http://refer.go.aaa.com/seastman before August 31, then refer your friends by entering their email address.

2) Follow the simple instructions on how to share your AAA experience with your friends and how you can earn $20 each time one of them buys a AAA auto or home insurance policy

3) When your friend or family member switches to AAA, we’ll automatically email you your $20 gift reward which you can redeem at: Amazon, Target.com, Walmart.com, Fandango, Itunes or you can make a donation to the American Red Cross, Susan G. Komen for the cure

Collector Car Insurance – Make sure your ride is properly covered

If you own a “classic” car, which could be considered anything over about 25 years old, you could save money on your car insurance by buying specialized classic car insurance.

There are two ways to find insurance for your older vehicles. The first is to check with your current insurance company to see if they have a rating classification for classic or antique autos. This rate will be significantly less than a pleasure use rate, but it may also come with some mileage or usage limitations.

The other way to insure your classic car is to use an insurance company that specializes in insuring restored vehicles. Their policies have unique coverages that may not be available with an ordinary car insurance policy. Here’s a breakdown of some of the categories of classic vehicles you might want special coverage for:

• Antique & Classic Cars – Consist of stock vehicles built from the turn of the century through approximately 1969. Examples include a 1957 Ford Thunderbird, 1901 Oldsmobile and a 1930 Model A.
• Exotic and Special Interest – These are rare or limited production vehicles such as specific models of Lamborghini, Ferrari and Dodge Vipers.
• Fire Trucks – Retired collectible vehicles such as fire trucks, semi-tractors and busses can be insured as classic vehicles.
• Lowriders – Cars modified with hydraulic or air bag suspension systems can often be insured as classic cars, but underwriting guidelines are strict.
• Military Vehicles – Vehicles such as a 1951 Willys Jeep or a 1941 QMC Amphibian can be insured as a classic vehicle.
• Modern Classics – These are vehicles of modern production that are considered collectible such as a 1976 Chevrolet Corvette, a 1978 AMC Pacer or a 1979 Trans Am T-Top.
• Motorcycles and Scooters – Motorcycles are becoming increasingly expensive and thus collectible. Examples of motorcycles insurable as collectibles are a 1948 Indian Chief and a 1952 Harley Panhead.
• Muscle Cars – Typically late 1960′s and early 1970′s U.S. models that include larger V-8 engines. Examples include a 1969 Chevrolet Camaro, 1970 Dodge Charger and a 1970 Plymouth Barracuda.
• High Quality Replicas – The are home-built or professionally constructed replicas of older vehicles.
• Street Rods – Street rods include vehicles that have been extensively customized for performance. Examples include a 1932 Ford Highboy or a chopped 1951 Mercury Coupe with custom paint.
• Tractors – Collecting antique tractors is an enthusiastic hobby and they can be insured as classic vehicles.
• Trucks or Pick-ups – Older models of trucks can be insured as a classic vehicle just as a car can be. Examples include a 1922 Model T Truck, a 1951 Chevy Pickup or even a 1975 Ford Pickup.
• Vehicles Under Active Restoration – Even if you haven’t gotten the primer and paint complete, you can insure your classic while being restored.

Advantages of Classic Car Insurance

The typical classic car insurance policy offers better coverage at a reduced premium than a typical auto insurance policy. This is due to the fact that most classics are not driven as much or under the same circumstances as your regular vehicles. The policies may allow only a certain number of annual miles driven, but the return is a greatly reduced premium for insuring your classic car.

Typical benefits of the classic car insurance policy include:

• Lower premiums
• Agreed value coverage – this means your car is insured for a specific value that you will be paid in the event of a total loss
• No deductible – many classic car policies do not have a deductible, so you will not have to pay anything out-of-pocket in the case of a claim

I’m NOT your average Insurance Guy!

I DON’T:

Give “price quotes”

I DO:

Advise, Recommend, Explain, Review, and Propose Insurance coverage’s

I DON’T:

Have room in my book of Business for those shopping for price.

I DO:

Work with clients that are looking for a long-term Insurance agent that will play an active role in regards to their coverage’s, life changes and making sure that their policy is always current and up to date with the market.

I DON’T:

Care what you’ve heard from your brother-in-law’s uncle’s nephew about “The Way Insurance Works”

I DO:

Want to address all your concerns, especially the difficult concerns, upfront and early so there are no surprises at the end

I DON’T:

Cut corners, massage facts, or tell you what you WANT to hear over NEED to hear.

I DO:

Take my profession VERY serious, as I do not want to get a phone call from a client after the fact and have to answer for why they were not informed of all their options.

I DON’T:

Want you to ever feel like you are alone when it comes to insurance

I DO:

Want to build a relationship of trust and a commitment to communication when it comes to servicing your Insurance needs

I DON’T:

Want you to ever have to suffer poor service, fear of inadequate coverage, or unanswered questions

I DO:

Have a passion for helping families assure that their financial future will NOT be in jeopardy in the unfortunate event of an accident, and pride myself on providing service that is second to NONE!

I DO:

Think you should Contact Me today to begin our relationship and discuss your Insurance needs

I DO:

Think you should connect with me on Facebook to further our relationship

I DO:

Hope that you will expect more from your Insurance Professional than price quotes and certificates of insurance and demand a professional relationship and advice.

Insurance Coverage, Pay now or Pay Later!

I wanted to share a recent experience that I had with some clients, the names are changed to protect them. James & Jenny had recently given a family car to their coming of age daughter Melissa who was moving out on her own. When it was time for Melissa to purchase Insurance for her car she decided to go with a company that promised super low rates and sold her on a monthly payment rather than a proper policy, her coverage… State minimum 15,000/30,000 Bodily Injury 10,000 Property Damage.  All is well for a while but late one Sunday evening while coming home from a day at the lake with a car full of friends Melissa was hit head on by a drunk driver, severely injuring all occupants of the car. Two of the girls were airlifted to local trauma units and the others where taken by ambulance to local hospitals, 3 of the girls were treated for various injuries, nothing serious, however Melissa has gone through several operations to repair a shattered Ankle, a broken foot, a broken hand and a punctured liver. Due to the severity of her injuries she will require medical care for the next 4 to 6 months.  Thank God the injuries were not life threatening.

Now you can imagine between the medical bills, co-pays, Ambulance fees, damages to the vehicle, towing and storage costs that this unfortunate event will probably cost somewhere in the neighborhood of 500,000 to 750,000.  The drunk driver responsible for the accident had state minimum coverage so the Maximum the Insurance Company has to pay out is 30,000 which will only cover 7,500 per person. The burden of the rest of the financial responsibility will be left to Melissa, the passengers and their families to clean up the mess of an accident that was not their fault!

So, when you are choosing an Insurance company or policy, PLEASE do not make monthly payments your number one priority! Make sure that you are properly covered, and getting the best coverage for your money! Ask friends and family to refer you to someone that they trust to sit down with you and tell you what you NEED to hear so you can come to wise decision regarding your Insurance needs. There are ways to protect you and your passengers so that in the event you are severely injured in an accident that is NOT your fault you can rest assured knowing you will be covered!

GREAT NEWS FOR THE FLOOD INSURANCE MARKET!

As of January 1, 2011, the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP) will utilize a new flood insurance rating option to help reduce the financial burden placed on property owners whose buildings are newly mapped into a high-risk flood area. The following are answers to some frequently asked questions.

1. What is a Preferred Risk flood insurance policy?

The NFIP’s Preferred Risk Policy, or PRP, offers low-cost flood insurance to owners and tenants of eligible residential and non-residential buildings located in moderate- to low-risk areas.

2. What types of coverage does a PRP offer?

A PRP offers considerable premium savings to low risk property owners with no difference in coverage. Under the low cost PRP, there are two types of coverage combinations: building and contents together, and contents-only. A PRP premium for a residential building and contents ranges from as low as $129 – for $20,000 in building and $8,000 in contents coverage – to $405 – for the maximum $250,000 building and $100,000 contents coverage. Comparable coverage

under the Standard X-Zone rated policy would range from $721 to $1,612. Under the PRP, a residential tenant can get coverage for as low as $49 for $8,000 in contents coverage (all rates as of January 1, 2011).

3. What are the changes to PRP that could affect me?

FEMA announced on May 21, 2010, a revision in its PRP eligibility rules under the NFIP.

Buildings that were newly mapped into an SFHA due to a map revision on or after October 1, 2008, and before January 1, 2011, are eligible for a PRP for two policy years, between January 1, 2011, and December 31, 2012. Buildings that will be mapped from a non-SFHA to a SFHA due to a map revision on or after January 1, 2011, will be eligible for a PRP for two policy years following the effective date of the map revision. Buildings meeting the above requirements must also meet the PRP loss history requirements. If there are two claims or disaster relief payments for flood of $1,000 or more, or three losses of any amount, the structure is ineligible for the PRP.

At the end of the extended eligibility period, policies on these buildings must be written as standard-rated policies.

4. Why is the NFIP extending PRP eligibility? What led to this decision?

Before 2003, more than 70 percent of the nation’s flood maps were at least ten years old. Those maps were developed using what is now outdated technology, and more importantly, due to natural changes and community development, many no longer accurately reflect the current flood hazards. Upon a request from the President, Congress appropriated funds in 2003 directing FEMA to create the five-year Flood Map Modernization program, which used more current data and technology to update the maps. Consequently, many property owners are finding their buildings have been accurately mapped into higher risk areas. Aging flood control infrastructure, including levees, dams, and other structures, have also resulted in large numbers of properties being newly mapped into SFHAs, where they are required by lenders to purchase flood insurance.

Now, flood map revisions will continue as part of FEMA’s Risk MAP (Mapping, Assessment, Planning) program as it builds on the successes and work of Flood Map Modernization (for more details visit:www.fema.gov/plan/prevent/fhm/rm_main.shtm).

While map changes more accurately reflect a community’s flood risk, FEMA recognizes the financial hardship that SFHA designation may place on individuals in newly identified high-risk flood zones and is, therefore, extending the eligible time period for low-cost PRPs.

5. What benefits does the PRP eligibility extension provide?

In these particularly tough economic times, the PRP eligibility extension provides temporary financial relief; the reduced cost allows time to save and prepare for paying the premium based on standard NFIP rates after two years. Agents will be able to offer the PRP to those property owners who are eligible for the extension and provide guidance on other available rating options that may reduce a customer’s premium beyond the two years. The extension provides more time for communities to upgrade and/or mitigate flood control structures to meet FEMA standards—reducing the future financial impact on residents and businesses. More families and business will also be able to better afford flood insurance coverage and for longer—meaning greater community resiliency and faster recovery after a flooding event.

6. Are the additional two years of the PRP retroactive?

No. The good news is that moving forward, those eligible for the PRP will be able to purchase their policies at the lower rate for two years.

7. If I already have a PRP, how much will my policy increase due to this change?

Starting January 1, 2011, policyholders with a PRP will see a modest increase of $10 as they renew their policies. This small increase in premium ensures to all PRP policyholders that if maps ever change, they will have two years of lower premiums.

8. When will eligible existing policyholders be notified of the two-year PRP eligibility extension?

FEMA is requiring that existing policyholders be notified of their potential PRP eligibility at least 90 days prior to policy expiration by their flood insurance carrier. Consequently, some policyholders will be receiving notices as early as October 9.

Does this eligibility extension also affect those property owners with buildings already in high-risk areas (e.g., Aor V zone) that are newly mapped into higher risk flood zones or in areas with new or higher Base Flood Elevations (BFEs)?

No. The two-year PRP eligibility extension is distinct from existing grandfathering rules and does not apply to properties that were already located in SFHAs prior to the map change. Existing grandfathering rules already provide relief to property owners with buildings already in SFHAs that are newly mapped into higher risk flood zones (e.g., from AE to VE) or in areas with higher BFEs.

10. If property ownership changes hands, is the new owner granted the remainder of the two-year PRP eligibility extension?

Yes, a new owner is granted the remainder of the two-year PRP eligibility extension if property ownership changes hands during the two years following the effective date of a map revision.

11. If there is lapse in coverage, will coverage be reinstated under the PRP?

If coverage is reinstated during the two years following the most recent map revision, or within two years of January 1, 2011, for maps revised between October 1, 2008 and December 31, 2010, the policy may be reinstated as a PRP.

12. What is the “end date” to the PRP eligibility extension?

There is no “end date” specified for the extended eligibility based on map change effective dates. Beginning January 1,2011, each policy on a building that is newly mapped into the SFHA by a map change effective October 1, 2008, or later is entitled to two additional years of coverage under the PRP.

13. Why aren’t policyholders with properties included in SFHAs before October 1, 2008, eligible for the extension?

This eligibility extension was developed as a response to the large number of very recent map changes due to a federally mandated map modernization, and the increasing difference in premiums that evolved over time between the standard-rated policy and the PRP, which made it more difficult for property owners to transition to the higher premium standard-rated policy.

14. What actions do I need to take and where can I go for more information on the PRP Eligibility Extension?

Flood insurance carriers will be notifying eligible policyholders by mail at least 90 days before the expiration of a policy. Property owners may also contact your insurance agent to see if you qualify. To look up property addresses on past historic FIRMs or the current effective FIRM, visit FEMA’s Map Service Center at http://www.msc.fema.gov. For more information about this new provision and about flood insurance, contact your agent or visit FloodSmart.gov and FloodSmart.gov/PRPExtension.

15. What will my agent need to convert my policy back to a PRP?

Acceptable forms of documentation for the current and prior map information include:

• A Letter of Map Amendment (LOMA)
• A Letter of Map Revision (LOMR)
• A Letter of Determination Review (LODR)
• A copy of flood map marked to show the location and flood zone of the building
• A signed and dated letter from a local community official indicating the address, flood zone, map panel and map effective date An Elevation Certificate (EC), indicating the address and flood zone of the building, that is signed and dated by a surveyor, engineer, architect, or local community official.
• A flood zone determination certification that guarantees the accuracy of the information

16. Does this replace grandfathering?

Pre- and Post-FIRM buildings mapped into a high-risk area after October 1, 2008 will be eligible for the grandfather rules after the two PRP policy years are completed. To qualify for grandfather rates after the two extended PRP policy years, the grandfathering guidelines must still be met; e.g., pre-FIRM buildings must maintain coverage continuously and have no substantial damage or improvement to be eligible for grandfathering after the PRP extension period is over.

17. If during the PRP extension eligibility period, the agent did not obtain the necessary information to rate the building as a PRP and a property was later found to be eligible for the PRP extension, can the agent go back and rerate it and the insured receive a refund?

Buildings that were newly mapped into an SFHA due to a map revision on or after October 1, 2008, and before January 1, 2011, are eligible for a PRP for two policy years. Property owners affected by these previous map revisions will be eligible for the PRP for the two policy years effective between January 1, 2011, and December 31, 2012. If an agent is unable to get the proper information in time for a renewal or later determines an insured building is eligible for the PRP extension, the policy can be re-rated using Cancellation Reason Code 22 (Cancel/Rewrite due to Misrating) and the insured receive back any difference in premium.

 

-Courtesy of FEMA

Are there different types of Homeowners policies?

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Yes. A person who owns his or her home would have a different policy from someone who rents. Policies also differ on the amount of insurance coverage provided.

The different types of homeowners policies are fairly standard throughout the country. However, individual states and companies may offer policies that are slightly different or go by other names such as “standard” or “deluxe”. The one exception is the state of Texas, where policies vary somewhat from policies in other states. The Texas Insurance Departmenthas detailed information on its various homeowners policies. 

The chart below lists the disasters covered in each of the following types of policies:

IF YOU OWN YOUR HOME

If you own the home you live in, you have several policies to choose from. The most popular policy is the HO-3, which provides the broadest coverage. Owners of multi-family homes generally purchase an HO-3 with an endorsement to cover the risks associated with having renters live in their homes. 

HO-1: Limited coverage policy
This “bare bones” policy covers you against the first 10 disasters. It’s no longer available in most states.

HO-2: Basic policy
A basic policy provides protection against all 16 disasters. There is a version of HO-2 designed for mobile homes.

HO-3: The most popular policy
This “special” policy protects your home from all perils except those specifically excluded. (Click on the link below for a sample HO-3 form; you will need Acrobat which you can download, free of charge, from the Adobe Web site.
Paper: Homeowners 3 – Special Form (PDF)

HO-8: Older home
Designed for older homes, this policy usually reimburses you for damage on an actual cash value basis which means replacement cost less depreciation. Full replacement cost policies may not be available for some older homes.

IF YOU RENT YOUR HOME

HO4-Renter
Created specifically for those who rent the home they live in, this policy protects your possessions and any parts of the apartment that you own, such as new kitchen cabinets you install, against all 16 disasters.

IF YOU OWN A CO-OP OR A CONDO

H0-6: condo/co-op
A policy for those who own a condo or co-op, it provides coverage for your belongings and the structural parts of the building that you own. It protects you against all 16 disasters.

YOUR LEVEL OF COVERAGE

Regardless of whether you are an owner or renter, you have the following three options:

1. Actual cash value.
   This type of policy pays to replace your home or possessions minus a deduction for depreciation.
2. Replacement cost.
   The policy pays the cost of rebuilding/repairing your home or replacing your possessions without a deduction for depreciation.
3. Guaranteed or extended replacement cost.
   This policy offers the highest level of protection. A guaranteed replacement cost policy pays whatever it costs to rebuild your home as it was before the fire or other disaster–even if it exceeds the policy limit. This gives you protection against sudden increases in construction costs due to a shortage of building materials after a widespread disaster or other unexpected situations. It generally won’t cover the cost of upgrading the house to comply with current building codes. You can, however, get an endorsement (or an addition to) your policy called Ordinance or Law to help pay for these additional costs. A guaranteed replacement cost policy may not be available if you own an older home.Some insurance companies offer an extended, rather than a guaranteed replacement cost policy. An extended policy pays a certain percentage over the limit to rebuild your home. Generally, it is 20 to 25 percent more than the limit of the policy. For example, if you took out a policy for $100,000, you could get up to an extra $20,000 or $25,000 of coverage.

   Even though a guaranteed/extended replacement cost policy may be a bit more expensive, it offers the best financial protection against disasters for your home. These coverages, however, may not be available in all states or from all companies.

Courtesy of the III

What to do in the event of a Homeowners Loss

 

Protect the Property
One of the most important things to do after a property loss is make temporary repairs to prevent further damage. Do your best to protect your property by covering damage in roof, walls, doors, and windows with plastic sheeting or plywood. Homeowners insurance policies may not cover ensuing damage to your property if you have not taken reasonable steps to secure the property from subsequent damage. Be careful not to risk your own safety when making the repairs.

Your insurance company will reimburse you for all reasonable costs to protect your property, as long as you save receipts for any materials you buy. Beware of building contractors that encourage you to spend a lot of money on temporary repairs.

Remember that payments for temporary repairs are part of the total loss settlement. Also, don’t make extensive permanent repairs until after the claims adjuster has been to your home and assessed the damage.

Call Your Insurance Agent or Company Representative
After a property loss you must report the damage to your insurance company agent or representative to start the claim process. Ask questions such as:

· Does my policy cover the property damage to my home?

· How long will it take to process my claim?

· Will I need to obtain estimates for repairs to the structure?

· What is my deductible? (The deductible is the portion of the loss you pay before your insurance company begins to pay.)

Dealing with Your Insurance Adjuster
Your insurance company may send you a claim form, known as a “proof of loss” form, to complete. Proof of loss is a formal statement made by a policy owner to an insurer regarding a loss. It is intended to provide the insurer with information to determine the extent of its liability.

A claims adjuster, a person professionally trained to assess the damage to your property, may visit your home before you’re asked to complete any forms. The more information you have about your damaged home and belongings, the sooner your claim will be settled. Your adjuster generally will come prepared to do a thorough and complete evaluation of the damage to your home. If the adjuster is unable to complete a thorough inspection due to time constraints he/she may be forced to “scope the loss.” This is a brief inspection of the damage with a second visit necessary to complete the inspection. The “scope of loss” should include the following:

1. Degree of damage

2. Quality of the materials and workmanship

3. Measurements needed to calculate quantities

The scope differs from the finished estimate in two ways:

1. The scope does not necessarily list any prices, although prices can be used to describe quality.

2. The scope does not list the calculated quantities; it includes just the raw counts and measurements needed to calculate quantities for the estimate.

Keep a log of all phone calls and correspondence, and make copies of all correspondence you send to, or receive from, your insurance company.

What may be Covered by Your Homeowners Policy
Additional Living Expenses
If your property is not safe for occupancy, keep receipts for all expenses associated with your relocation, such as emergency shelter, clothing, and food. These extra costs may be covered under the “loss-of-use” portion of your policy. You will be required to account for any covered expenses, so be sure to keep all of your bills and receipts. Any advance payments received will be counted toward your final claim settlement. Additional living expenses include items such as food and housing costs, and telephone or utility installation costs in a temporary residence. Also, extra transportation costs to and from work or school, relocation and storage expenses, and furniture rental for temporary residence are eligible under additional living expense coverage. Your insurance company usually advances you money for these extra costs.

Personal Property
Making lists of all damaged items is a good place to start documenting your personal property loss. Include the brand names and model numbers of appliances and electronic equipment. If possible, take photographs of the damage. Don’t forget to list items such as clothing, sports equipment, tools, china, linens, outside furniture, holiday decorations, and hobby materials. Put together a set of records – old receipts, bills, and photographs – to help establish the price and age of everything that was damaged. If your property was destroyed or you no longer have any records, you will have to work from memory. Try to picture the contents of every room and then write a description of what was there. Try also to remember where and when you bought each piece and about how much you paid. Video taping your possessions room-by-room before a loss is an excellent way to document damage to your personal property after a loss. Make sure to keep the video tape at a separate location (such as a safe deposit box), so it is not destroyed. Do not throw out any damaged items until you have been told to do so by the adjuster.

Dwelling
By identifying the structural damage to your home and other buildings on your premises, like a garage, tool shed, or in-ground swimming-pool, you can begin making a list of everything you would like to show the adjuster when he or she arrives. This should include cracks in the walls, damage to the floor or ceiling, and missing roofing tiles. If structural damage is likely, even though you can’t see any signs of it, discuss this with your adjuster. In some cases the adjuster may recommend hiring a licensed engineer to inspect the property. Have the electrical system checked as well. Get written bids from reliable, licensed contractors on the repair work. The bids should include details of the materials to be used, and the prices should be listed on a line-by-line basis.

Trees and Shrubbery/Debris Removal
Trees, shrubs, and other plants are insured on a limited basis. The aggregate limit for a loss under this coverage generally is 5% of the dwelling limit of liability provided as an additional amount of insurance, with a sub-limit of $500.00 (and in some cases $250.00) for loss to any one tree, shrub, or plant. Check the language in your individual policy for the coverage that applies. If a covered loss leaves debris that must be removed, this coverage will allow the insured to apply a certain percentage, generally 5%, of the coverage limit to pay for their removal. These costs are included as part of the limit of liability applicable to covered property.

Water Damage
Homeowners policies do not cover flood damage, but they do cover other kinds of water damage. For example, they would generally pay for damage from rain coming through a hole in the roof or a broken window, as long as the hole was caused by strong winds or any other covered exposure listed in the policy. If there is water damage, check with your insurance company representative as to whether it is covered. (Flood insurance can be purchased as a separate policy in addition to your homeowners policy.)

Never ignore indications of an obvious water problem in your home. Homeowners should immediately attempt to find and stop leaks at the source. When water leaks into your property, moisture can collect, allowing mold to develop. Mold can cause further damage to your property and can potentially cause health problems. The adverse health effects from mold exposure can range from runny noses, coughs, nosebleeds, congestion, and sinusitis to more serious upper respiratory ailments such as asthma or bronchitis. Mold damage caused by a covered peril may be covered under your homeowners policy. You should immediately report any water damage claim to your agent or company representative. They can discuss the type of water or mold damage that may be covered under your policy.

If sudden water damage occurs to your property, it is important to dry all wet areas, providing proper air circulation to aid in the drying process. Drying wet areas and dehumidifying can help minimize the possibility that mold will accompany water damage. Delay in cleanup can result in the growth of mold.

However, if you notice water damage indicating leakage over a period of time, mold may have already developed. In this case, attempting to clean up the mold may spread the mold spores, causing greater property damage or health problems. Because mold can be dangerous to your health, it is important that mold testing and cleanup be conducted as soon as mold is detected. If you suspect the presence of mold after a water leakage, you should contact your claims adjuster immediately.

Building Code Upgrades
Building codes periodically change to conform to ever-rising safety and environmental standards. The codes have probably changed in your community to some extent since your home was built. Unless there is language in your policy covering additional costs associated with those changes, you may incur non-reimbursable expenses to rebuild in compliance with present codes. Such coverage appears as an “endorsement” – that is, as an option for “ordinance or law” coverage – for a small additional premium.

Replacement Cost Versus Actual Cash Value
Replacement cost is the dollar amount needed to replace a damaged item with one of similar kind and quality without deducting for depreciation – the decrease in value due to age, wear and tear, and other factors. An actual cash value policy pays the amount needed to replace the item at the current market value. For example, a tree falls through the roof onto your eight-year old washing machine. If you have a replacement cost policy for the contents of your home, the insurance company would pay to replace the old machine with a new one. If you have an actual cash value policy, the company would likely pay only a percentage of the cost of a new washing machine because a machine that has been in use for eight years would almost certainly be worth less than its original cost according to the current market value.

How the Payment Process Works
The first check you receive from the insurance company is often an advance, not a final payment. If you’re offered an on-the-spot settlement, you can accept a check at that time. However, be sure that you understand what the check does and does not cover. Be wary of initial settlement offers that are represented as full settlements and as requiring a release of further liability. Under most circumstances, if additional damage is discovered later, you can “reopen” the claim and request additional compensation. As with your initial claim, you must notify your insurer immediately upon the discovery of additional damage.

When both the structure of your home and your personal belongings are damaged, you generally receive two separate checks from your insurance company. You should also receive a separate check covering your additional living expenses.

Structure
If your home is mortgaged, the check for home repairs will generally be made out to you and the mortgage lender. As a condition of granting a mortgage, lenders usually require that they are named in the homeowners policy and that they are a party to any insurance payments related to the structure. The lender gets equal rights to the insurance check to ensure that the necessary repairs are made to the property in which it has a significant financial interest. This means that the mortgage company or bank will have to endorse the check. Lenders generally put the money in an escrow account and release the funds to the policyholder as the work is completed. You should show the mortgage lender your contractor’s bid and let them know how much the contractor wants up-front to begin the job. Your mortgage company may want to inspect the finished job before releasing the funds for final payment.

Personal Belongings
If you have a replacement cost policy for your possessions, you normally need to replace the damaged items before your insurance company will pay you the replacement cost. If you decide not to replace some items, you will be paid their actual cash value. You don’t have to decide what to do immediately. Your insurance company will generally allow you several months from the date of the cash value payment to replace the item. Find out how many months you are allowed. Some insurance companies supply lists of vendors that can help replace your property.

What to do if You Do Not Agree with the Settlement Offer
Know Your Rights Under the Unfair Practices Act and the Fair Claims Settlement Practices Regulations
Insurance Code (CIC) section 790 and several following sections constitute the Unfair Practices Act. More particularly, Section 790.03(h) specifically lists a number of prohibited unfair claims settlement practices. The Unfair Practices Act requires an insurer’s response to a notice of claim to include a copy of CIC Section 790.03 and a written notice that, in addition to CIC Section 790.03, Fair Claims Settlement Practices Regulations govern how insurance claims must be processed in this state. These regulations are found inChapter 5 of Title 10 of the California Code of Regulations (CCR), and commence at Section 2695.1. You may request a copy of the regulations from the insurer, but an insurer is only required to provide you with a portion of the regulations.

The regulations specify time deadlines within which insurers must acknowledge, evaluate, make and communicate decisions on claims, and pay claims. They as well restrict the information that can be demanded from a claimant to information that is reasonably necessary in making a claim determination. The regulations provide that a denial of a claim must be in writing, with specified reasons for the denial, and must include a notification that if the claimant believes the claim to have been wrongfully denied, the matter may be reviewed by the Department of Insurance.

Landlord Insurance

 

What is a Landlord Policy?

Whether by choice or circumstance, when you own property that is rented to others a Landlord/Rental Property Insurance policy is needed to protect your investment and liability. Landlord Insurance or Rental Property Insurance, as it’s sometimes referred to is an insurance policy that covers investment property that is being rented to a tenant. The coverage is very similar to homeowner’s insurance in that it’s designed to rebuild your home in the event of a covered loss. There are a few differences in regards to Personal Property limits, which are reduced because it’s not your personal property in the home it’s the tenants’ personal property in the home. As a Landlord it’s important to consider requiring your tenant to purchase their own Renter’s Insurance policy, which would protect the tenants’ personal property, as it is not covered under your Landlord/Rental Property policy (the Renter’s Insurance Policy for the tenant is relatively inexpensive, about $20 a month). In the event of a fire or covered loss, the Landlord/Rental Property policy also provides coverage to reimburse you for rents lost while your tenant is forced to live elsewhere while the damage to the home is being repaired. Lastly, Liability coverage in a Landlord/Rental Property policy is typically selected at a higher limit than in your homeowners insurance, because the risk of a claim arising may be greater with a tenant occupying your property. 

If you have any questions regarding Rental Insurance, Please Contact me

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Welcome to my Blog!

I am a man of few words however I am very passionate when it comes to a few subjects! I created this blog as a resource for families to assist in making positive financial decisions in life. Weather you are a young, newly married couple or a seasoned family that just needs some sound financial wisdom, I hope that all readers will find it beneficial.

To your future!
Shane