IMPORTANT DATES:
s a m t s i r h C Merry a l l a o t d n a . to all.. ! t h g i good n
DECEMBER 24 - JANUARY 3 Realty Line office is closed JANUARY 16 NAHREP Luncheon Holiday Inn Town Lake - 11:30 a.m. JANUARY 16 HBA 2008 Economic Forecast HBA office - 6 to 9 p.m. FEBRUARY 20 CRS Quarterly Luncheon Westwood Country Club - 11:30 a.m. Don’t forget: You can visit us online 24/7 at www.realtylineonline.com
GREAT REASONS TO LOOK INSIDE… Associates In Progress:
DECEMBER 2007 • VOL. 12 • ISSUE 8
Enjoyable. Entertaining. It’s all About You.
CLB Partners, page 23; Monterey Homes, page 29; and Sente Mortgage, page 35
ABoR Director in the Spotlight:
John C. Sheppard of HomeSource, page 39
Are You Really Insured? What You May Not Know By Melinda Seifert
CONTRIBUTING WRITER You have a homeowners’ insurance policy. Your understanding is that it protects your home and contents. And you hope you never use it. But if you need to make a claim, are you really covered for everything you think is covered? What about the exclusions? Here are a few things to check for in that policy before you ever need it. Terrorism, war and nuclear accidents? Forget it. You’ll probably be on your own—but if you home burns in a riot, you’re probably covered. What about something more commonplace, like mold? The majority of carriers have eliminated mold from coverage after the increase in moldrelated claims from 2000 to 2004, and many have limited how much they’ll cover for water damage as well. This can also include sewer backup unless you have a special rider. Natural disasters? The recent California wildfires highlight the vulnerability homeowners can face. If you live in a developed area, and your home is destroyed by fire, earthquake or hurricane, you are probably covered. But—if you live in a remote cabin, check your policy. Landslides are another sticky point, and while technically defined as “earth-movement,” it’s not the same as earthquake. And many floods aren’t covered at all under a “normal” policy. You’ll need to obtain flood and wind coverage from the national Flood Insurance Program run by FEMA. Keep in mind too, the greater the chance that you could be a victim of a natural disaster due to location, you might find insurers reluctant to cover you. While a policy may not come right out and state what’s expected of the homeowner, insurers do expect you to take care of your home and home maintenance—which means termites and ongoing water leaks that lead to damage, might not be cov-
ered. It’s a good idea to regularly inspect your son’s spouse, children or relatives living in the house, home for cracks, leaks or water damage, decay, and isn’t covered. Even damage by an estranged spouse not living in the home can be a problem in terms of termites. Insurers also charge more for certain hazards, and coverage, if the person is listed on the deed of trust or others aren’t covered at all. You’ll pay more for a pool insurance policy. In other words, does the “evil-doer” or spa, but forget the trampoline. You’ll find the same have an insurable interest in the home? These are just a few of the more common coverage true for certain breeds of dogs. Dog bites cost insurers more than $300 million a year, and some breeds questions—rest assured, there are more, and there are aren’t usually covered at all, such as Pit Bulls, always exceptions. When REALTORS help clients Rottweilers, and wolf hybrids. Huskies and with insurance needs, there are a few basic areas Dobermans are other breeds that might pose an where they too can do some comparison shopping— How responsive is the insurance company to coninsurance liability problem. Do you own a valuable art collection? What about sumer complaints? Does the Better Business Bureau antiques, guns, jewelry, collectible books? A typical or State Insurance Commissioner have records and policy limits coverage for luxury and collectible reports on that company? Is the company financially items. To ensure adequate coverage you’ll want to sound? Does the company offer discounts for multikeep a homeowner’s inventory and obtain supple- ple policies such as home, auto, boat and life? It all gets back to the fundamental concepts of mental insurance to cover the value of items needing extra coverage. If you don’t own anything special or teamwork and relationships. The more “insurance valuable, you’re probably OK. Unless—you have a savvy” REALTORS are, the more clients will know. The more clients know, the better their decisions. And computer or a home-based business. A typical homeowner’s policy will probably pay when clients are good consumers, getting the best for a new computer, but maybe just up to the prices and best coverage and understand what that amount of what the computer is worth “now.” And, coverage really covers, everyone in the relationship if you have digital information on that computer, benefits. such as photos, music, or work-related data, that Presorted Standard U.S. Postage data isn’t generally covPAID ered. If you have a home Austin, Texas Paid Permit #715 business, you’ll almost certainly need suppleP.O. Box 81366 mental insurance. Austin, Texas 78708-1366 As for the “you never know what might happen” category—there’s what is called “intentional damage.” In general, intentional damage by an insured person, or the per-