Living Local - Picking the right homeowners' insurance for you amid rising costs
Tamara Burton
If you own a home (or are looking to purchase one) you are experiencing rising home insurance rates that have added to the cost of owning a home. More extreme weather patterns and inflation are two of the most commonly cited reason your rates keep ticking up. Extreme weather in Kansas has led to carriers accepting little to no new business, or they have changed their guidelines and coverages to a point that fewer homes/people can even qualify.
Home insurance is an essential component of owning a home. It provides financial protection against various risks that can impact your property and belongings, and is a requirement for mortgage companies financing your home. Hopefully you never need it, but if you do, it’s important you have the right coverage to fit your home and finances.
My expert friends at CURA Insurance in Manhattan have put together this valuable information for homeowners that I wanted to share with you.
Top 10 things to ask your homeowners insurance agent
Is my home covered at replacement cost of actual cash value (ACV)?
Is my roof covered at replacement cost or ACV?
What are common gaps this policy doesn’t cover? (standard gaps are earthquake, ground water, storm water, wear and tear, etc.).
Are there any endorsements or supplemental policies I should consider?
What is the current estimated rebuild on my home?
What initial concerns do you see that could be an issue with underwriting?
Does underwriting review prior to the policy going into effect of after?
Will and inspection be completed? If so, exterior, interior, or both? After the policy is in force, can I expect future inspections (aerials are becoming common).
Are specific personal items not covered (i.e. jewelry, firearms, tools, etc.)? Is there a limit on theft?
Do coverages automatically change at a specific age or point in time (i.e. most roofs will automatically be moved to ACV at a certain age. Most rentals will get moved to ACV at a certain age)?
How to avoid cancellations
Don’t file a claim every time something happens or for little items such as refrigerated items, small thefts. If unsure whether to claim something or not, get a professional opinion prior to filing.
Trim trees that may overhang the property or remove the tree all together.
Maintain “pride of ownership”. Fix items such as peeling paint, overgrowth, any deterioration.
Avoid high risk items/activities at home (In-home business where others come to your property, exotic animals, bully breed dogs, etc.).
Replace old roof.
Preventative maintenance to avoid higher rates
Updates such as new roof, plumbing, electrical, HVAC systems, etc., may decrease premiums.
Most companies do not increase or decrease rate based on maintenance or condition. This is a qualification consideration and can therefore determine if you qualify for a product and at what level for which you may qualify. Some carriers may add exclusions for specific items based on maintenance and condition.
Tamara Burton l tamara@thealmsgroup.com l 913-484-0808
