What’s your best insurance analogy?

InsuranceI would be very interested in how you answer the following question.  So if you have the time to comment, please leave a reply at the end of this post, including the season, month or holiday as well as insights why?  Just curious!

Question:  What’s your best insurance analogy?

For me the answer is easy.  It depends on the current season.  Of course, I am an insurance agent, which means I can draw a correlation to insurance to everything.  That includes the bologna sandwich I am eating.  However, this time of year there seems to be an almost endless list of things to associate with insurance.  Below are just a few:

  • Fall is the time of year that we associate with change and mystery. Insurance don't be afraid of insuranceprotects us from the uncertainty that results during periods of change. Fall is also associated with a period preparation and protection. Insurance is no different.  We prepare for less desirable times by purchasing insurance.
  • Halloween is a time that most of us associate with fear. Ghost, goblins and all sorts of creepy critters running around asking us to fork over a few sugary treats. By doing as requested we avoid and unexpected and frightening trick.  That certainly sounds a lot like risk transfer to me.
  • Haunted Houses, we all know they’re not real, but the can scare even the bravest soul. Insurance agents have a bad rap. I am not going to say that it isn’t earned.  There are a number of agents out there that are similar to the haunted houses; they just aren’t the real thing.  Finding a good agent can and will reduce many of the fears that you may have regarding insurance.
  • Peanuts, It’s the Great Pumpkin. Every year around this time we all cringe as CharlieInsurance Sales Brown once again put’s his trust in Lucy to hold the football. Every year, in spite of severe ridicule, Linus forgoes the big Halloween sugar score.  Waiting in the pumpkin patch for a no show, the Great Pumpkin.
  • In most transactions, the buyer receives some degree of immediate satisfaction.  Insurance is not that way at all.  In fact, it is one of the only things that we as consumers ever buy that we hope to never use.  As a result, insurance consumers can in many regards be compared to Charlie Brown and Linus.  They have both made decisions based entirely on trust.

Each of the above associations are valid, but it is the Peanuts analogy that rings the loudest. Insurance shouldn’t be about selling, Insurance is about trust.  Think of Lucy as being the insurance agent.  Sure she’s a salesperson, a salesperson with a bad memory.  She will do everything in her power to convince Charlie Brown to trust that she will hold the ball.

Insurance is something you are required to have or should have.  Maybe you don’t know you need it yet, but if you need it then it’s not selling, it’s educating.  Everyone knows that Charlie Brown is going to kick the ball.  Charlie knows he’s going to, even though she’s not there, the little red-haired girl knows, and yes Lucy knows that Charlie Brown is going to try and kick the ball!

So if Lucy knows that Charlie Brown is going to kick the ball, why does she have to use the full-blown sales pitch?  Seriously, she doesn’t have the best reputation to start with.  So why not just shoot straight?  High-pressure sales must be addictive.  Just like Lucy, it seems that there continue to be too many insurance producers trying to sell something that can only be earned.  Trust!

 

So if Lucy is symbolic of the fast-talking hard selling insurance agent, they who should be associated with the insurance consumer.  A case can be made for both Charlie Brown and Linus.  Both characters display faith that is foolish.  This is very similar to what insurance consumers are doing.  Savvy consumers are asking questions aimed at obtaining adequate coverages at a fair price, while the foolish are lining up to be sold.

Linus also displays a firm commitment and faith in his beliefs.  Once again he forgoes the annual Halloween candy score while failing to prove his theory about the Great Pumpkin.  From this standpoint Linus is similar to consumers that refuse to seek advice from multiple sources.  Just as Linus’ belief in the Great Pumpkin left him with no candy; insurance consumers may be confronted with paying too much for insurance, being sold inadequate coverages, or both.

Functionally Valuing Older Business Property

Businesses that have been successful for decades are usually ones that also consistently take care of their property. While maximizing the use of every asset, it also raises a coverage issue. Aging equipment may have reached the point where it:

  • Is functionally obsoleteOld movie theatre, functional use
  • May be a type of equipment that is no longer made and/or
  • Has been replaced with more effective, technologically advanced equivalents.

Such property can be difficult to insure since a typical commercial property policy considers obsolete items to be worthless. However, a commercial property policy can be modified with a form that may make coverage more practical. One form, called “Functional Personal Property Valuation,” changes a policy so that the regular policy conditions on valuing a loss and coinsurance don’t apply.

Functional valuation recognizes that the insured firm’s priority is to repair damaged, older equipment or to find an equivalent substitute. A policy with a functional valuation provision is likely to offer the additional option of paying an amount equal to the damaged or destroyed property’s market value that it held just before their loss. Other features are requirements that any repairs be done quickly and that any replacement property is at the same site and for the same use of the property that was lost or destroyed. A coverage modification is also likely to add terms with special definitions, such as “replacement” or “functional equivalent,” or “market value.”

A policy that has been altered in order to use a functional settlement basis should result in smoother claims handling and a better loss to post-loss transition. Arranging for such coverage may also spur a buyer to identify possible sources for replacing his vulnerable, older property.

If your concern is one that may be dependent on older equipment, it may be past the time that you discuss your particular coverage need with a knowledgeable insurance professional.

COPYRIGHT: Insurance Publishing Plus, Inc. 2015

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

Homeowners Coverage

insuranceGenerally, a homeowners insurance policy includes at least six different coverage parts. The names of the parts may vary by insurance company, but they typically are referred to as Dwelling, Other Structures, Personal Property, Loss of Use, Personal Liability and Medical Payments coverages. They are usually presented as policy sections and are often labeled Coverages A through F. This article discusses Coverage Parts A, B, and C, which protect property.

Coverage A, Dwelling

Home fire risk increase in winterThe homeowner policy’s first coverage section protects your house and any attached structures, such as garages, decks or fences. The typical policy covers your home when it is damaged by many perils (also known as causes of loss) including fires or storms. However, the following causes of loss are usually excluded from coverage under the homeowner’s policy:

  • Earthquake
  • Flood
  • Faulty maintenance
  • Damage from insects or vermin
  • Wear and tear, gradual damage or deterioration

Coverage B, Other Structures

This coverage section protects structures that are not attached to the home, such as a detached (separate) garage, storage or utility shed playground equipment and swimming pools.

Coverage C, Personal Property

Golf Cart used in competitive drivingThis covers your possessions, whether they are at your home or away with you on vacation. Personal property is often covered on a named peril basis. This means that only the causes of loss listed in the policy section are covered. The coverage is also subject to limitations and exclusions. Types of property having significant value, such as jewelry, fine arts, collectibles, etc., may require special protection. Talk to your agent about scheduling (adding) coverage on a floater which broadens and extends coverage for high-valued possessions.

Actual Cash Value vs. Replacement Cost

Commonly, protection under sections A and B is provided on either an actual cash value or a replacement cost basis. Actual cash value is defined as replacement cost minus depreciation. Replacement cost is the actual cost to replace the structure, regardless of depreciation. Check your policy to see which type of coverage you have. Coverage under section C is usually provided on an actual cash basis. However, your agent may be able to add replacement cost to your possessions just like that found in Coverage A.

 

Part one discussed how a typical homeowner policy covers buildings and structures. Now let’s look at Coverage Part D, which is also a property coverage; as well as Coverage Parts E and F. These latter parts address coverage for injuries to persons or damage to property that belongs to others.

Coverage D, Loss of Use

This coverage handles the cost of additional living expenses while your home is being repaired. The coverage also applies if the home is unusable. However, the loss or loss of access has to be the result of an event that is covered by the policy. For instance, if your home was damaged during a war and you had to abandon it, Coverage D would not be available because war is excluded. Additional expenses normally include food, housing, and transportation. However, the expenses must exceed what your family normally incurs.

Coverage E, Personal Liability

This Coverage Part responds if you are legally responsible for causing property damage or Avoid this insurance claim. Slipping on Sidewalkphysical injury. Protection includes paying for your defense costs and any financial judgment for covered incidents. Naturally, the coverage would not apply for excluded situations, such as intentional injuries. Example: Joe is sued by a guy he injured after tackling and repeatedly punching him during a pickup basketball game. The injuries from this incident are not accidental and would not be covered.

Coverage F, Medical Payments

This Part provides rapid reimbursement for minor injuries, such as a guest who trips and falls while visiting your home. This coverage does not apply to a family member. For example, if your child and your neighbor’s child are both injured while playing and need to go to the emergency room, this coverage will pay for your neighbor’s expenses but not for your own child.

This is a brief overview of homeowners insurance. All of the coverage provided by the homeowner’s policy is subject to limitations such as exclusions, policy limits, and deductibles. It’s important that you discuss the details of coverage and any other insurance questions with your insurance agent.

 

COPYRIGHT: Insurance Publishing Plus, Inc., 2016
All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

Personal Auto Coverages

Most state financial responsibility laws require proof that you are able to pay for any damage or injury you may cause while driving. Auto insurance is the way that most people comply with these laws. Typically compliance only takes liability insurance at some minimal limit that varies by state. Liability coverages include the following:

Auto Accident, Auto InsuranceBodily Injury Liability – insures against injury that you may cause to other persons. The key is that it involves you being held financially responsible for injuries to other persons because of your driving, your ownership or other use of your vehicle.

Property-Damage Liability – handles damage that you may cause to another person’s property. Again, the coverage only responds when you are financially responsible for such damage and it has to be related to your use or ownership of a vehicle.

Uninsured Motorist Coverage – This coverage typically pays for injury you suffer from an uninsured motorist, underinsured motoristaccident caused by a person who has no insurance; a person who can’t be located (“hit and run drivers”); or a person who has insurance but their insurance company is insolvent.

Important: Payment under this coverage is controlled by various laws that dictate what limit or limits must be sold. In some states, you may have an option to reject the coverage. Typically, the rejection must be in writing.

Underinsured Motorist Coverage – Similar to uninsured motorist, it pays for injuries caused by a driver who is inadequately insured. Example: You are seriously injured by someone carrying a bodily injury limit of $25,000, but your injuries are nearly $50,000. Your Underinsured Motorist Coverage limit is $100,000. In this instance, your policy would pay the difference between $25,000 and $50,000.

 

Kentucky's No-fault Auto insurance systemCars are expensive to buy and repair, providing great reasons for protecting them. If you borrowed money to buy your car, or if you leased the vehicle, the lender or leasing company was likely to make certain that you had coverage to pay for any damage to the vehicle. Below are typical coverages that apply either to the vehicle or to those operating the vehicle:

Collision coverage – This covers damage to your own vehicle that happens when your vehicle runs into another object, such as other vehicles, trees, light poles, mountains, etc.

Other Than Collision coverage – This also covers damage to your own vehicle that is due to sources such as fire, theft, hitting an animal, vandalism, earthquake, flood or hail.

Collision and Other Than Collision coverages are subject to deductibles (the amount a policyowner must pay). They eliminate the need for an insurer having to pay for very minor losses.

Personal Injury Protection or Medical Expense – This coverage typically handles medical expenses for injuries to you, your passengers or people who are “around” you. It may also cover you and your household if you, as a pedestrian or a bicyclist, are struck by an automobile.

Towing and Labor coverage – This coverage is to help pay for your costs to deal with a disabled car. It could help pay for the car to be towed to a service station or for any repair that occurs at the location of the car’s breakdown. Note that this coverage is for labor rather than the costs of car parts. Available coverage is minimal (often $25-$75).

Rental Reimbursement – This coverage reimburses your expense of renting a car as a temporary replacement. The car being replaced must be an insured car that’s unavailable for use because of it being damaged, lost (stolen) or destroyed in a covered loss.

Important: This is merely an introduction to complex policy coverages. Be sure to contact your agent for detailed insurance information.

 

COPYRIGHT: Insurance Publishing Plus, Inc. 2017
All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

Indemnity

 

 

Indemnity occurs when an individual or entity receives reimbursement and is made whole for a loss.  Insurance policies provide indemnity to the insured when the insurance company pays claims on losses that are directly related to a covered cause of loss.

Most forms of insurance are consider a contract of indemnification or contract of indemnity.  A contract of indemnity requires that an insured be made whole in the event of a loss.  The contract further states that the insured may only be made whole.  Better said, the insured cannot profit from the contract of indemnity.

The no profit clause in the contract of indemnity is critical to insurance companies and insureds as well.  Without it, individuals could legal receive economic benefits from an insured loss.  This would expose insurance companies to adverse selection, higher claims, which would result in higher premiums for consumers.

“Fold It Up This Way”:Five Things You Need To Know About Motor Home Insurance

Congratulations! You’ve Purchased A Motor Home

The staff at TruePoint Insurance in Fisherville, KY knows that the truth about what you need with insurance is the most important factor. The staffers here are honest and will tell you exactly what is necessary to make your motorhome experience the very best that it can be. You’ve taken the plunge. You’ve purchased the motorhome. Now, how do you best protect it?

Arm Yourself With Information 

The best insurance policies are written when consumer and insurance agents know everything there is to know about what has to be protected. It’s your motorhome. Ask yourself some key questions to get your mind rolling as well as your insurance agents.

Arm yourself with answers to these five questions before you consider the amount of coverage and type of coverage you will need for your motorhome:

  • Who will be driving your motorhome? How old is the driver? Will there be other drivers on occasion?  Do you have a clear idea of the driving histories of all of the drivers of your new motorhome?  
  • Where do you plan to take your new motorhome? Will you be driving internationally? Will you be driving out of state? How often will you be driving out of state or internationally?  
  • Where will your motorhome be stored when not in use?
  • Are you going to let others rent your motorhome when you and your family are not using it?

A complete, comprehensive conversation with an insurance agent at TruePoint Insurance in Fisherville, KY today can negate regrets tomorrow. Call us today or come in so that we can discuss how your motorhome can be the rolling bed of recreational freedom and enjoyment for yourself and your family. 

What is insurance? Part 2 of 2

Understanding InsuranceInsurance

 

 

What is insurance?

 

 

Practice Risk Avoidance at your own risk

Individuals and business also practice a direct from risk avoidance.  Suppose you sold your car and committed to using public transportation.  Without a car, you have successfully eliminated your primary automobile liability exposure.  And without the risk, you are no longer required to carry the state-mandated insurance.

Businesses might opt to outsource specific functions allowing them to eliminate multiple risks ranging from property to casualty to workers Risk Avoidance at your own riskcompensation.  Altering production methods, implementing automation, and revising policies and procedures are just a few avenues where businesses can eliminate specific risk.

Risk avoidance is not a practical solution for all exposures, but it can be a very cost-effective solution when implemented correctly.  Those practicing this method must realize that risk avoidance may not be as simple as it appears.  You may have noticed in the auto liability example above, the phrase “primary exposure.”  This suggests that there continues to be potential exposure even after the sale of the vehicle.

You don’t have to own a vehicle to drive.  People rent cars all the time.  While it is hard to imagine a scenario where you could rent a vehicle without liability insurance if you did you would be exposed.  A more likely scenario would be your exposure in the event you borrowed a friend’s car. Coverage stays with the auto, so as long as you had permission from your friend to drive their vehicle, the policy covering the car would protect you.

Borrower Beware!  What auto liability limits does your friend have?  Did you ask?  Does it matter?  Let’s assume that the vehicle has the minimum coverages allowed by your state.  For us, that would be $25,000 for bodily injury for any one person, capped at $50,000 if multiple individuals are injured and $25,000 for property damage.

As the driver of the vehicle, you are potentially liable for damages that exceed the vehicles policy limits.  In this scenario, the vehicle coverages are limited, placing you in a position with significant exposure.  In your past, this wasn’t an issue.  When you owned an auto and had insurance, your policy extended liability protection to you even when it wasn’t your car.  Your decision to practice risk avoidance has triggered additional and perhaps unforeseen exposures.

There is an old saying, “You’re picking up pennies in front of a train,” or more simply said, you’re taking too much risk for only a modest reward.  If you practice risk avoidance, you better know the train schedule.

 

Risk Reduction; Modifying exposures for everyone’s benefit

Reduce riskWhat is risk reduction role in risk management?   Unlike the other three methods, risk reduction is not a stand-alone method.  It is more akin to a complimenting strategy or modification.  Examples of risk reduction would be businesses utilizing sprinklers, keeping parking lots and sidewalk free from ice and snow, or preemptively addressing employee actions that put an organization at risk.  Individuals performing regular maintenance on their home or auto are practicing risk reduction.  Installing a security system or erecting a fence with a locked entry gate around a pool are also examples of individuals utilizing risk reduction techniques.

When combing risk reduction methods with risk retention, the results directly benefit the individual or business.  These actions may have one of two outcomes.   The installation of a sprinkler system is an action that results in lessening the loss.  Steps taken to reduce risk can also lower the probability of loss.  The previously mention action to address snow and ice removal would most likely reduce the potential for a loss.

 

Don’t Fear the Loss Control Man!

The role of Loss Control can be confusing.  Insurance companies can be viewed as risk management consultants and as risk transfer solutions. However, a fine line exists between providing beneficial risk management counseling and becoming a deterrent to business.  The action of an insurance companies loss control efforts can easily gauge the company’s success in balancing the two roles.  When this group with providing risk reductions techniques for the insured they become a catalyst for change that becomes genuinely value added for both the insured and the insurer. Loss Control units aimed at creating awareness of potential risk reduction opportunities will have a positive financial impact on the insurance company, which should, in turn, have a positive effect on the insured’s cost of risk management.

When you buy an insurance policy, you are purchasing much more than a risk transfer agreement.  The insurance policy today has evolved to incorporate many aspects of risk sharing, risk retention and indirectly risk avoidance.  The final method of risk management, risk reduction also comes into play.  Acting primarily as an incentive, or a chance to reduce the overall cost insurance.

 

 

 So what is insurance?  Today, insurance is a contract/relationship between an insured and an insurer where the insurer utilizes modern risk management tools and encourages proactive steps by the insured which will lead to an increasingly efficient process of indemnifying the insured against specified peril(s). 

Access Part 1 of this series 

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What is insurance?


Insurance      Understanding Insurance

 

 

 

 

 

Insurance

Some people think that insurance is risk management.  But industry professionals will argue that insurance coverage is only one component of the risk management process.  What’s the difference between the two?  Risk management is a discipline used to identify, evaluate and address specific risks.  A risk management plan will utilize one or more of the four risk management methods.

The Four Risk Management Methods

     Risk Avoidance                  Risk elimination

     Risk Reduction                  Reduce

     Risk Sharing                       Transfer, Insurance

     Risk Retention                   Do Nothing, Self-Insure

 

So what is Insurance?

If insurance isn’t risk management, then what is it?  Insurance is commonly considered to be a mechanism for risk transfer.  If you look up the word insurance, you are apt to find the words “transfer of risk” or “risk sharing.”  So insurance is risk sharing or risk transfer?  Yes.  But it’s more.

Insurance is a mechanism that can be used to transfer risk from one party to another. In exchange for a premium, insurance companies will agree to provide indemnification.  Indemnification, or the protection against loss, can be purchased to mitigate a large number of exposures.  Insurance products exist to transfer both property and liability risks.

 

Insurance Today

“Ah, the joys of homeownership,” words muttered regularly by homeowners.   Homes generate problems.  Many associated with either property or casualty exposures.  Typically these risks are transferred to an insurance company through a homeowner’s policy.  In a pure form of risk transfer, the insurance company would make the insured whole in the event of a specified loss.  But most of us don’t transfer all the risk.  The amount we recoup will be the value lost less a deductible.

Most property policies have a built-in risk retention mechanism, the deductible.  On the surface, this may seem to be negative.  But before making these assumptions consider why it’s there.  The deductible is in fact risk retention.  By retaining the first $500, $1,000 or more, the insured can significantly lower the cost of insurance.  Without deductibles, insurers would become inundated by the number of small claims.  Smaller claims would also adversely impact administrative cost markedly.  Finally, without a deductible, insurance company’s exposure to fraudulent claims would likely skyrocket.  Without a deductible, insurers would face mounting costs that could only be offset by raising premiums.

At first blush, deductibles appear to work to the benefit of the insurance companies.  Deductibles no doubt benefit insurance companies.  But after considering the implications, it would seem that consumers are reaping the most value.

 

Today’s insurance contains a risk retention component

 

 

When insurance companies avoid risk it benefits the company and the consumer

You may have learned from experience that insurance companies will not provide coverage in some instances.  Insurance companies don’t want all risks.  By insuring only the risk that they prefer, they are practicing risk avoidance.  Trampolines, pit bulls, fireplaces, and log homes are good examples of risk that many insurance companies avoid.

Insurance companies underwriting higher risk exposures are expected to have increased losses.  What does this mean for the insured?  That’s hard to say.  It doesn’t mean that you can’t get insurance.  You most likely can.  It does mean that you will have fewer options and in most cases, reduced competition leads to higher costs.

 

Rejecting certain risk helps insurance companies, but how does it help the consumer

The practice of risk avoidance improves insurance companies underwriting results.  In theory, insurance companies that can successfully manage their risk are more likely to have higher profitability and faster capital growth.  As the company’s capital grows, so does the need to write additional insurance.  If enough insurance companies are experiencing the same results, competition will increase. The increased appetite for risk will ultimately impact the insured, by putting downward pressure on premiums.

 

Trickle-down risk management

The benefits from risk avoidance can be direct or indirect. The risk avoidance techniques used by insurance companies have both a direct and indirect effect. As mentioned, the direct actions put downward pressure on the cost of insurance. These practices can passively encourage consumers to avoid unacceptable risks. Over time, sound risk management practices trickle-down which further reduce risk management costs.

 

Access part 2 of this 2 part series which will be published on 9/20/18 

 

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What is an Insurable Interest?

 

Understanding Insurance

Most of us buy insurance.  We buy insurance for our homes, autos and even our lives.  But have you ever consider what would happen if you tried to buy insurance on the building owned by the company you worked for?  Any answer other than no will raise red flags.

First off, you most likely can’t buy insurance on the building.  You don’t own it.  Yes there are instances where you can buy insurance on a building you don’t own.  The most common being property you rent where the lease specifically cause for you, the tenant, to provide property coverage.

Second, why do you want coverage for the building?  Are you concerned that it will burn or blow down?  What will you do with the proceeds?  You’re not reasonable for paying off the mortgage.

Before you can buy insurance you should be required to prove that you have an insurable interest.  Otherwise the policy will not be valid.

Insurance is based in part, on the Principle of Indemnity, a theory that the insured should be may whole.  The principle of indemnity has two requirements:

 

  • The insurance company must make the insure whole or restore the lost financial value

 

  • The insured, as a result of a loss, cannot be rewarded or generate a profit

 

If not for bullet two above, abusive practices would occur that would drive up the cost of insurance.  Along these same lines the insurable interest requirement comes into play. If an insured had no interest they would also have no financial exposure or loss.  Any insurance payments received would create a windfall for the insured.  That would then be in direct conflict to the above.  This would ultimately encourage unethical behaviors.  The end result would be an increase in the cost of insurance for all.

 

Understanding what is an Insurable Interest

 

Can you insure a car that is not title to you?  In most cases the answer would be no.   But there are times when you can.  If you lease a car, theInsurance title of the car is not in your name.  Even though you don’t own it you can insure it. Your lease agreement places the loss of value (other than normal wear and tear) on your shoulders.  The agreement most likely goes a step further, by requiring you to maintain insurance for the term of the lease.   Bottom-line here is that you to have exposure to a financial loss in the event the vehicle is damaged.  Thus giving you, the lessee, an insurable interest in the vehicle.

As you can see, property ownership is not a required to have an insurable interest.  Consider Liability Insurance or Workers Compensation Insurance.  Both forms of insurance protect from exposures where there is no property.  In both cases an insurable interest exists that are not tied to property of the insured.  However, both coverages are in place so that the insured can take ownership of their actions.  When actions of an insured lead to loss or damage to others they trigger a financial exposure.  This in turn creates an insurable interest.

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Tackling Insurance Terminology; Homeowner’s Insurance

Insurance TerminologyHomeowners Insurance is the insurance policy used to protect your home and contents.  Insurance for your house can come in various forms. Taking the time to understand what your policy does and doesn’t cover is essential.

 
In its most common form, home insurance is written as a package policy. A package policy occurs when an insured’s home and auto coverage come from the same insurer. Individuals that can keep their home and auto insurance together enjoy significant savings.
The primary purpose of homeowner’s insurance is to indemnify your home against loss. In most cases, the policy also protects personal belongings and additional structures.
 
Besides protecting property, most homeowners policies also provide personal liability coverage. This coverage provides protection in the event another party suffers loss due to the negligence of the homeowner.
 
We advise homeowners to actively participate in the insurance process. Reading your insurance policy should never be considered optional. Some of the more important aspects to consider are:
 
Covered Causes of Loss
Limits
Deductibles especially those state as a percentage
All information used to identify and describe your property
 
It is important to remember that certain risks are not covered by the homeowners insurance policy. Earthquake, flood, water backup, sinkhole, as well as other significant risks, are typically offered a la carte.

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