PROPERTY AND CASUALTY INSURANCE

PROPERTY AND CASUALTY INSURANCE

Property And Casualty Insurance. Property And Casualty Insurance that's a fancy way of saying ensuring your home your car's your boats your motorcycles.

And all the toys you know how do you covering the house the toys and all the other things you don't hear.

PROPERTY AND CASUALTY INSURANCE

A lot of people talk about Property And Casualty Insurance and so there's a lot of people I think there's a lot of hunger for information.

So we're going to quickly try to go through Property And Casualty Insurance, the first one what's the biggest asset most people have usually it's their home.

What you live in so it makes sense quickly understanding because I think a lot of us take for granted when we go get homeowners' insurance.

We're like to my home's insured is there anything you need to know about that here I've called Jake from State Farm let's call somebody and they give you a quote and you're like ok the mortgage company seems to be ok.

I'm alright but you know and then you hear about all these things going on with the fires with all the flooding and all the stuff you like well.

I mean how good of shape are you really in because this is not one of those coverages you want to wait until something bad happens to go and details of your policy.

So let's talk about this stuff the first big one is understanding what do you actually get from your insurance, meaning if something bad happens if you had a fire or something that takes your house out what what you know how are you gonna be reimbursed.

I payback on that and here's some language you need to understand there's an actual cash value that's you know meaning that they have a stated policy value of what your protect your covered for and you'll get.

You know that's what that's the maximum that they will provide and they're gonna still want documentation showing.

I had to spend this to replace our house but you have a limit if you do actual cash value the limit is stated in your policy next you have.

What's called replacement cost value somebody will make an analysis on the fair market value of replacement and that's the limit of what you'll be paid and then of course you have guaranteed or what's called extended replacement cost.

This is in the range of where you want to be and let me explain why and more than likely you go get extended not full guaranteed replacement.

Whenever you see the word guaranteed you know it means expensive because that means no matter what it costs to replace your house the insurance companies go pay they don't give.

So you might want to end up with like an extended replacement value where it's typical, they give you a 20% to 25% above and beyond.

What the expert thinks it's gonna cost to replace your house now why would you want to go above what the expert while nothing bad is going on it would cost to replace your house is because two things will happen unfortunately bad things don't happen to just one person it's not uncommon.

Whether it's the hurricane or fire takes out you know multiple homes so all of a sudden you have a scarcity of resources everybody is trying to rebuild.

At the same time you know what happens with supply and demand when everybody needs the same skilled workers and the same you know concrete bricks and wood what happens to those costs they go up.

So if you have a cushion to we're taking into account the scarcity, second thing your house burns down or you have some damage it's time to replace.

I mean to say i grew up in this house we had this harvest gold appliance you don't even know what that means but couldn't even get any my mamas replace it now but I'm just thinking out if you had an older house and you still had harvest gold which is a color you could Google and that's throughout the kitchen you probably go when it comes to replacing you.

I want to put granite it might be time to stop I'm gonna put granite I'm gonna put stainless steel appliances.

You know those things are going to cost more than what you originally had, so it's nice if you have 20 to 25% built into it.

PROPERTY AND CASUALTY INSURANCE
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So since I feel bad, I'm helping you spend your money let's talk about a way that you can save some money on your homeowner's insurance.

One of the first things you need to realize when you're looking at the replacement value island doesn't get damaged it doesn't go away.

The meaning if you paid $300,000 for your house and need to go buy 300 thousand dollars of insurance covers.

That makes sense Brian that's what I paid for the house exactly but the truth of the matter is is probably fifty thousand dollars of your three hundred thousand, our purchase price is the land that your house sits upon.

you only need the protection of two hundred and fifty thousand, maybe you want to add twenty percent to that number, in case you had a scare situation or all the things I talked about previously so don't include the value of your land so go and give a hard look of what the insurance is and then understand what the language of replacement value is on your own property moving on.

We'll talk about premiums in a second but an insurance week we see all the time that it's not even successful super-wealthy people don't have is what's called an umbrella, that's it go explain what umbrella covers it's exactly what it sounds like it's insurance coverage that sort of as an umbrella covers.
All of your other policies so your home your auto your boats your personal liability it really is the insurance that sits on top to make sure.

You're protected so often we see folks who don't know about this they don't have it and what you don't realize is while you think you may be covered.

You may not be as covered as you'd like to be to protect both your current assets as well as your future earning potential.

What is umbrella always like it because it gives the visual it sits on top of your right, homeowner's it sits on top of your auto coverage?

I'll give you a first-world experience we had a client this is years ago he's graduated college it's crazy how time moves but when he was in elementary school there was a situation where the child of one of our clients had a bad judgment moment threw a rock at a school bus.

Because that just makes all the sense no it's a good kid too that's what it's crazy here this you're like really bad behavior well the rock, unfortunately, hit another child caused the cut on the child had to go and everything turned out.

But the child had a pretty big medical bill from you know corrective measures Alice' you know what covered that all the expenses of medical as well as the liability and everything else from the lawsuit that occurred from that event were the umbrella insurance.

So I think that's really that's an interesting point that I think we should dive in so not only does umbrella insurance covers member of members of your household.

So if you have young kids in the household that decide they want to throw rocks at a school bus it covers but this is what a lot of folks don't realize and we try to really encourage our clients to think through this if you have children I don't know around the age of 18 19 20 that maybe are still in the house.

But they're off at college and they make less than ideal decisions umbrella insurance will also protect you.

There should be some sort of liability claim while they're off at school so we like it and you're asking how much umbrella insurance do I need typically tell people to get you to know as much umbrella as your what your estimated networks.


You know a million dollars that's going to cost a fortune no you're gonna be shocked that you can buy a million dollars of umbrella insurance.

Probably less than $300 yeah a year yeah your hundred dollars each so I mean in a lot of you're gonna be like, it depends on where you live who your insurance comes.

Some of you'll be able to get for like $125 but then others but and I don't want you to go beat your agent up because it's over $125.
I'm just saying there could be a broad range of what this umbrella insurance is now depending on the insurance company.

One thing you have to make sure of is sometimes in order for an insurance company to be willing to provide umbrella insurance they want to make sure you have a base level of coverage elsewhere meaning you can't go by umbrella insurance and carry liability only on your automobile.

They're probably not gonna allow you to or with the lowest level you can't have fifty thousand dollars of liability protection then go buy a million dollar umbrella.

They're probably gonna make you push those limits up to five hundred thousand and make sure you have some baseline protection there I wanted before I got into you know the Kodomo bills.

I want to talk about just things that you own the goods because that's part of your homeowner's policy here's the easiest way and I know this sounds so hokey but it really does work is we all have phones that have cameras and video cameras built-in you don't have to go and buy the big camcorder and write all right just go home and then just walk through your house.

While you're videotaping and you can create essentially a visual record that will be accepted by your insurance company if something should ever happen.

So you can document all the things you have and even while you're doing it I know when I've done this at my house sounds completely dorky you're walking there and you scam like you know 70-inch TV.

You know just anything that you want to definitely draw attention to you that you want to know subwoofer.

You know those types of things I just you can give what you kind of remember paying for it and that can at least create a visual record.

You could help your insurance company there might come a time where you need to show it a day before you know at a date before the incident occurred of what was actually in that room.

What do you need to replace and you appreciate having that visual record especially with all the cloud backup systems and everything else that's such a genius idea because when I think about going through and having to Chronicle all the stuff in my house.

I get makes me sleepy thinking about it right we're just walking through the video camera that is a cell phone that makes tons of sense well obviously it's better.

If you have an inventory list sure but I'm realizing most people not going to be that detailed in the weeds with it so it's better if you at least have a visual record to give you a baseline of protection also don't take for granted.

If you have a unique collection of some sort maybe you have the jewelry you have a stamp collection you have artwork you know all kinds of other structures on the property.

So make sure you know what you have and what's covered under the basic homeowner's policy and what you might need to go by additional protection or rider policy on top of to keep those things moving forward.

When you buy your insurance here's some tidbits on the money got it bits to help you save some money should you buy from a broker or a captive agent now when you say, captive agent.

What does that mean a captive agent and I'm not picking cuz you can still get decent products from these guys to is nothing wrong but like your State Farm rep is typically a captive agent maybe they stay one coloring products?

Whereas a broker will have access to a whole product line of from different you know they might have travelers they might have auto owners they'll have different products and that's not to say that you can't go talk to a captive agent get a great deal.

Because truthfully they probably well I mean we have some of our health insurance and other things with captive agents because they offered some unique products, that we're very good on the health insurance or dental insurance.

But I'm just telling you if you think from a quantity standpoint a broker is going to have access to more product lines but you know if when you're doing your search where does set deductibles this is a big one.
A lot of people are thinking you know it wasn't long ago where everybody just said thousand dollars or twenty-five hundred deductibles.

That might be the case especially here's the thing here's what here's a case for why you want higher deductibles is because what if you know you were the type of personality.

If your wife clips the side of the garage you're not going to spend you're not gonna file a claim for the three hundred dollar right fix that you know if you're the person don't buy insurance that you know you're going to self-insure anyway.

There's no way in the world because they don't you don't get rewards for the number of claims you following your homeowner's automobile.

That the goal is to keep your claims down as low as possible because they reward you for not using insurance so if you think you're already going self-insure don't have the deductible so low that you do not go file it anyway no don't have a 250.

If you know everything over under five hundred dollars you just go self-insurer and pay for out of your own pocket however don't push it up to twenty-five hundred or a thousand dollars if the premium difference is only saving you twenty-five dollars a year.

Because I think that's a big thing so you need to go price it out it would the lower deductible the higher deductible and then you look at it from a common-sense perspective.

If you know there's a five hundred dollar difference in what you have to come out of pocket but you're only saving twenty-five dollars a year you know let's go take twenty years to make it up so just use that common sense and say well maybe the lower deductible makes more sense for me.

So let's talk flood insurance real quickly because there's been a lot of flooding and other things that are going on and this is actually pertaining it's not just about living by a creek or water.

We have to worry about thawing you know things thawing in the winter with snow when you live up in the north you have a lot of snow if you live down the South Hudson's I just picked on our northern neighbors with the thaw.

If you live in the south and your neighbor has an above-ground pool right and that burst and pledge your base I mean you might need flat your typical homeowner's insurance. we're in the South right you can tell by the accent but I digress anyway but here's the thing is that your typical homeowner's policy is not going to protect you from floods.

A lot of people are unaware of that and so I would tell you at a minimum you ought to assess your risk I'm not telling you to need to go buy flood insurance.

I don't feel like you can go to that level but you at least need to go do the due diligence and there are some great places you can go to flood tools calm I went to this site I thought it was really good in the fact that you could go and type in your address it will show you all the different maps.

So you can really truly assess your situation out of course you are to the historic flood zones and all these other things and then you can even here's the cool thing premiums the government sets premiums for through the National Flood Insurance Program.

They don't vary by company so like progressive flood insurance but their premiums are going to be the same as the next insurance time because the government regulates what you can charge for flood insurance.

So if you go to flood tools or you can go and realize the coverage can only go up to two hundred and fifty thousand as part of the program for the national program two hundred fifty-thousand for the structure a hundred thousand for the contents.

If you're in a low to moderate zone I think it's four hundred and ninety-nine dollars a year this is what it costs, the government has a website where you can get information about Property And Casualty Insurance but it's actually under reconstruction right now.

So you can't use it but in the past has had great information was flood smart govt so right now if you just want to use government resources you go to FEMA govt / National - flood - insurance - a program for a basic understanding its floodtools.com is a great resource.

Maybe you get further information about Property And Casualty Insurance is the given above website also.

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