8 minute read
Insure Storm Readiness
Insure Storm
Readiness
The National Oceanic and Atmospheric Administration logged 52 tornadoes, 508 hailstorms and 590 reports of high damaging winds in Texas in 2018. (The statistics for 2019 have not yet been released.) These weather events can happen any time of the year but occur most frequently in the late spring and early summer. The Center for Disease Control, the National Weather Service, and the American Red Cross offer advice about being prepared for storms. Most of this information involves assembling disaster kits, making escape plans and staying safe once storms hit. While physical safety is paramount, the assurance that your home could be rebuilt is important, too. We talked to several local agents about the kind of insurance needed and the procedures involved with making a claim.
What kind of home insurance should most homeowners have? State Farm agent Adam Leggett: Replacement Cost with an All-Peril Policy Farmers agent Gene Ryan: A true replacement cost policy. Most companies will tell you that your coverage is based on replacement cost; however when you read the loss settlement clause you will find payouts are based on something other than true replacement; for example, "Fair Market Value" or "Actual Cash Value," which are not based on replacement cost. It is the biggest asset anyone will ever buy: Make sure it is covered correctly. Wylie Insurance Kylie Reising: You should have a homeowner’s policy that covers the dwelling, personal property and personal liability. This should be written on a full replacement cost basis. What about renters? KR: Even though you don’t own a home, you should have coverage for your personal property and personal liability. AL: Very inexpensive way to cover your personal belongings and to provide you with some liability on your residence. GR: Absolutely renters need to have insurance. If their assets/personal property were lost in a fire, would they be able to replace everything out of their own pocket? Often the renter may think “I don't have that
much,” and this very reason is why they should carry property protection. How much content insurance is enough? GR: Imagine you lost everything in a fire or tornado. What dollar amount would you need to replace your clothing, furniture, linens, plates, silverware, computers, toys ... etc. Most home policies express the dollar amount as percentages of coverage based on the dwelling amount. This may be enough, too little, or more than you need. You can build your home policy to your specific needs. Renters are a little different, but the question really boils down the same answer. What amount of coverage do you need to replace all your belongings – right down to your shoes and socks? What types of things are not covered by insurance? AL: That’s a very broad question. The two types of home policies are All Risk verses Named Peril. The most common named perils are: fire, lightning, explosion, riots, aircraft, smoke, vandalism, theft, falling objects, weight of ice, accidental discharge of water, but each policy is very different. Also – the reason that question is too broad is that there may be coverage, but the way something pays out might surprise or disappoint you to the point where you think there was no coverage. Who should have flood insurance? GR: Everyone, but that may not be realistic – definitely
anyone in a flood plain or who lives near water and anyone living below sea level. Can insurance cover tree replacement? GR: There is usually limited coverage for landscaping built into your home policy, including tree removal should they either fall on your house or block a driveway or main entry. AL: Yes – if damaged by fire or storm. Should you opt for a high deductible? AL: Depends on your risk tolerance and your ability to come up with larger amounts of funds (a higher deductible). KR: Generally, you will benefit in premium saving. GR: Everyone one should carry as high a deductible as they can afford. A higher deductible may help keep premiums lower, but in the event of a loss can you afford to be paid less by the insurance company? Usually the deductible has the biggest impact on partial losses – for example, hail damage to a roof. What’s the difference between replacement coverage and actual cash value coverage? KR: Replacement cost pays what it actually costs to replace the damage without depreciation. Actual cash value takes depreciation as part of the claims process. We highly recommend a policy with full replacement cost. GR: A market value is what a home can be purchased for. A replacement cost is what it will cost the insurance company to completely rebuild (including but not limited to: clearing the land for example). AL: Replacement cost takes your damaged item and allows you to purchase a brand new item regardless of the age of the item. Explain the process for claim filing: How soon should a claim be filed, whom should the claim be filed with, etc. GR: It is best if the insured party files the claim as soon as possible, making any temporary repairs to prevent further damage form occurring. The claim can either be filed directly with the carrier or through the insuring agent. Usually the agent is the first course of action. AL: Each company is a little different. I suggest filing the claim as soon as possible and taking action to prevent further damage from occurring. State Farm sets parameters that one must file a claim within one year of loss and have the damage repaired within two years of the date of loss. Who should you call after you’ve had storm damage – your agent or your carrier? KR: Normally, you would call your agent for direction; however, many companies offer a direct reporting option. What else should people know about storm coverage? GR: When a loss occurs, the insured is obligated under the insurance contract to do whatever necessary to minimize the loss. For example, putting a tarp on a roof to prevent any additional damage from occurring after a storm loss, where the roof is damaged. Explain how insurance payment for repair usually works. AL: If you have replacement cost and a mortgage, your initial check will be sent to you and your mortgage company minus the deductible and depreciation. Once you have a signed contract for the work, the depreciation check can be sent to you. Mortgage companies are all different on their specific procedure on work demands, release of funds, or inspection. •
104 N Ballard Ave Wylie, TX75098 214-723-9439 DirectTo Garment Digital HeatTransfer Customer Printed & Standard HTV
Single Item OrdersWelcome! ManyOrders Completed Same Day!
Screen Printing Sublimation Embroidery
joltprinting.com
joltprinting
20% OFF ENTIRE PURCHASE DISCOUNT CODE LOVE0220 Valid in store or online during the month of February.
Children’s Boutique Gowns & Onesies Blankets & Lovies Headbands & Bows Rompers & Outfits Hooded Towels & More! Custom Personalization Available 214-210-2025 1411 S. Goliad St., Rockwall, TX 75087 Booth located inside Rustic Warehouse.
A Simple, Life Saving Device
By Jeanie Marten
This story starts in 2006 with my mom flying to Dallas to hang out with her grandbabies (aka, Ian and Sean Marten, then 3 years old and 6 months old respectively). We were having a wonderful visit when we got the call that there was tragedy back in New Mexico. She and I flew back to New Mexico to plan a funeral. It was surreal. We learned that her husband, Anthony, had taken his niece and their RV on a short trip into the Northern New Mexico mountains to go fishing. This was something that he and my mother did regularly. This time however, Anthony didn’t light the pilot light for the heater correctly and it filled the RV with carbon monoxide. He passed away but his niece happened to fall asleep next to a slightly opened window. It saved her life. She was extremely ill for several days but survived. The Center for Disease Control reports that more than 400 people in the U.S. die from accidental carbon monoxide poisoning every year and more than 20,000 people visit the emergency room with more than 4,000 others being hospitalized. Carbon monoxide is a colorless and odorless gas that is produced by burning fuel in vehicles,
small engines, stoves, grills, fireplaces, gas appliances, portable generators or furnaces. When the gas builds in enclosed spaces, people and animals that breathe it in become poisoned, often in their sleep.
A $20 dollar device would have saved Anthony’s life. That’s a tough pill to swallow. Do you have a carbon monoxide detector in your home? A $20 device literally could save your and your families lives. Please make sure your detector is working and if you don’t have one, please order one right now on Amazon or stop by Lowe’s or Home Depot on the way home tonight. My mother has lost two husbands in her life, one to carbon monoxide and one to diabetes. No one should have to go through what she has and certainly not when there is such an easy solution for detecting carbon monoxide. My hope is that by sharing our story, you won’t have to endure something like this. Stay safe out there and call Jeanie Marten Real Estate with all your real estate questions and needs.
