Insurance

Whether due to a family vacation or routine business travel, we all have times when we are away from our homes for an extended period of time.  And, if you are like me, you probably leave a spare key with a trusted neighbor or family member so they can collect your mail, water your plants, or feed your pets.

And although the possibility is remote, an accidental loss from sources like a broken pipe may occur while you are away from home.  Especially from water losses, it is extremely important that these issues are immediately addressed so that they do not get worse and cause even more damage.

By simply adding your insurance agent or insurance claims department phone number to your emergency phone list, will help in getting this matter started or even completed before you return from your vacation.  Can you imagine coming home to find out that your neighbor not only watered your plants, but shut off the valve to your hot water heater, contacted your claims department, had ServiceMaster come in to start drying your floor and subfloor and you know this because a check for $4000 is sitting on your breakfast counter.  Someone is getting more than a gift card to the Olive Garden.

Although the above is an extreme and would probably only work in the movies.  The idea of having the correct information at your fingertips is what I am stressing.  You can play the devil’s advocate, and say that a non resident member is making claims against your homeowners policy.  And instead of giving that Olive Garden gift certificate you are slapping them with a lawsuit.  But we all know that the trusted neighbor or family member will hopefully do the first step in shutting off the water and then call you.  How many of us have our insurance agent on speed dial?  Wouldn’t it be nice to get a call from the trusted neighbor, get the bad news, and then ask them for the number to the Matthew Taylor Insurance Agency on your emergency phone list?

Priority #3: “Collapse” and “Earth Movement.”

Two other key perils, or “causes of loss” that are not covered under most homeowners policies are “An example of collapse would be an old barn collapsing from aging. You can’t get coverage for old structures collapsing. However, you may be able to find coverage for earth movement, such as a mud slide following a rainstorm. Often this coverage is available as part of an earthquake policy. Use Google to research these two coverages and their availability in your state.

Priority #4: Content coverage

Homeowner policies also cover your contents; generally at 50% of the value you’re insuring your dwelling for. Example, $200,000 coverage on your dwelling, comes with $100,000 coverage for your contents. But for many people, the standard amount of contents may not be adequate, such as if you have really nice furniture. So it is important you talk to your agent about a “home inventory booklet.” This way you can take inventory of your contents and possessions, and record it. But don’t keep that inventory in your home. What if you have a fire and the booklet burns? So keep it at your office or your friend’s home. Or you can visit www.iii.org and get their online inventory guide. Coverage on the dwelling may include specified water damage, but your contents may not be covered for water damage. Be sure to read your policy contract, and ask your agent to clarify coverages. Ask your agent about specific loss scenarios.

The cost of having an online company verses a local agent might be cost effective today, but insurance is for the unexpected. Ask yourself, how much you will be really saving if your home is not properly covered. Are you insured, or do you just have insurance?

Here is a bit of information I think that will be valuable to consumers who are looking for mortgage financing or are applying for new homeowners insurance. I bet you didn’t know that Google Maps “street view” may be playing a part in whether you are approved and or may increase your insurance premium.

This issue is similar to those applying for new jobs as well. The top HR departments and underwriters are Googling you. So don’t be surprised if you are declined for a job, mortgage financing, or insurance based on your internet search engine audit trail.

In real estate and finance this is becoming more and more apparent with the credit crunch. Underwriters are taking a deeper and deeper look at you and you collateral (your home) based on the images from Google Maps “street view.” If your appraiser misstates the quality or uniqueness of your home or you embellish the truth on an insurance application you may find difficulties getting financing or higher insurance premiums.

Savvy underwriters are seeing your home in high definition right from the front curb. They are not just seeing the overhead view. They even have the opportunity to drive up and down your streets and check out the neighborhood with stunning clarity via cyberspace.

It is becoming easier and easier to scrutinize new customers in secrecy. Keep that in mind if and when you decide to embellish the truth on a mortgage or insurance application.