Who and what is covered by a Home Owners policy / Renters policy?
The “named insured” is the policy owner and their name is listed on the first page of the insurance policy.  The property and stuff he or she owns is covered.  Coverage is provided for this person(s) and typically their spouse and household relatives.

Why is Liability or Lawsuit Protection important?
If you lose your home or contents by fire, you know in advance the approximate value of the maximum loss.  Liability is a much different story.  If you get sued for hurting someone or damaging their property, how much will it cost?  Only the judge and jury know that answer.  We do know that the cost to hire a lawyer is very expensive.  Even if the accusation is false you must hire a lawyer to defend yourself.  And, if you are found negligent or at fault, the settlement could be huge.  Liability protection is probably the most important part of a Homeowners policy.  The Liability coverage provided in a Homeowners / Renters policy pays the attorney fees to defend you and will pay the settlement amount ordered by the judge if you are found negligent up to the policy limit.  You need to be sure you have adequate Liability coverage included in your policy.

What does Credit have to do with Home insurance?
Financial stability is one of the many factors the insurance company takes into consideration when underwriting an insurance policy.  Poor credit history or bankruptcy can increase the premium the company will charge to provide coverage.  The theory is that poor financial responsibility means there will be poor property maintenance and life style responsibility.  This ultimately results in greater loss potential and higher rates.  A detailed explanation of any credit problems will help the underwriter make the proper underwriting decision.

What does building age have to do with insurance?
The actual and functional age of a building is important to the insurance company.  Typically older buildings experience more claims especially if regular maintenance and system updates are not attended to.  When insuring an older building (20 years or more) the insurance company will want detailed information about the maintenance and replacement of the buildings major systems.  (Roofing, Heating, Plumbing & Electrical systems)

Why does building construction affect insurance premiums?
The “Three Little Pigs” story comes to mind.  A straw house will be destroyed easier than the brick house.  The exterior construction material of a building will affect both the premium and the replacement cost of the structure.  Solid stone exterior walls will generate the lowest premium however the reconstruction value would be the highest. Many buildings will have both a masonry type and wood-frame type exterior walls.  The insurance company will generally rate a building as masonry if 70% or more of the exterior walls are of masonry type construction.

Problems with Finished Basements
Finished basements are the cause of many insurance concerns.  Water is the primary concern and is excluded or limited on most insurance policies.  Back up of drains, sewers and the failure of sump pumps can cause extensive damage to the building and contents of a basement.  Limited coverage for this type of loss can be provided.  It is always best to avoid this type of loss.  Before you decide to finish your basement you need to determine the potential hazard and install systems that will minimize your risk.  At a minimum, an adequate sump pump system with a power outage back up should be installed. 

Do you have a wood stove?
Supplemental heating systems like wood stoves and space heaters are a major cause of fire every year.  Insurance companies do not have a major problem with supplemental heating if it has been professionally installed and meets current fire protection standards.  In general, the flue pipe to the supplemental heating device cannot share a flue pipe with any other heating system. Additionally, the chimney should be professionally cleaned annually.  There must be at least 2 feet of open space between the stove and any combustible floor, wall or ceiling material.  If you are unsure if any supplemental heating system meets current fire protection specifications, you should contact your local building inspector or insurance agent.  For more information on wood stove safety see this web site.

The endorsement provides reimbursement for expenses such as attorney fees, loan application fees, lost wages, long distance telephone charges and cost of certified mail as a result of the fraudulent use of your identity by a third party. They also have a specialized identity theft unit to help you navigate the maze of paperwork involved in regaining your identity.

Please contact our office to add this coverage to your policy or answer any questions you may have.