Insurance Mistake #9: Not understanding the limitations in coverage on certain personal property items (Jewelry, fine art, collectibles, tools, etc).
It’s safe to say that we all want to keep what valuables we have safe. Whether these are expensive items or priceless heirlooms, anything material can get damaged or lost. It is important to discuss with your insurance provider which items you own are already covered, and which may be limited.
When you think about your household possessions and your insurance coverage, it is important to understand that certain items have limited coverage. For example, if you have a significant amount of jewelry, guns, artwork, or other valuable personal property, you will likely need to add coverage, either through scheduling the property (listing property, value, etc.) or paying an additional premium to provide a higher limit for that coverage.
The other advantage of scheduling is that it is typically all-risk coverage. For example, if you lost your diamond ring swimming at the lake, it would be covered for its replacement value. If the item were to become lost and you didn’t really know what happened to it, i.e., a mysterious disappearance, it would be covered if it were a scheduled item.
The other way additional coverage can be added is through blanket coverage. For example, as your insurer, we can add a broadened jewelry endorsement for $5,000 of all-risk coverage for about $18 per year. If you had a nice watch valued at $5,500, and it slid off your wrist and fell 100 feet to the ground on a roller coaster, we would cover the watch for the $5,000 limit on the coverage. This is a very cost-effective way to cover smaller jewelry items.
Go through a list of all of your valuable items with your agent to determine which ones are covered under your current homeowner’s insurance and which ones additional coverage would need to be added.
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The Rosburg and Associates Insurance team is trusted throughout the community and is committed to providing you with the attention and high-quality experience you deserve. To speak directly with a team member, simply call or feel free to utilize any of the interactive tools offered throughout the site.The post Is Your Personal Property Covered by Insurance? appeared first on Rosburg & Associates.
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Mistake #8: Not documenting the contents/inventory of your home or business.
When a devastating fire occurs at your home or business, one of the most important things to have on hand is a good inventory of your personal or business property. When a fire, tornado or theft happens, the insurance policyholder is required to list all of the property lost/stolen and approximate values. When a large loss occurs, it is very hard to recall everything you had in your possession. One of the best ways to document and keep up with inventories is to purchase an inventory application, like the Nest Egg-Inventory App.
This particular inventory app includes features like:
- Barcode scanning
- Warranty and product expiry tracking and alerts
- Online Price Check – checks the current price of products
This application allows your claim to go as smoothly as possible and just costs a one-time charge of $3.99, which is pretty amazing for what it does. Consider downloading it or a similar app today. Having information about your belongings backed up and ready on multiple mobile devices can save you time, money, and stress in the event of a natural disaster or robbery.
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The Rosburg and Associates Insurance team is trusted throughout the community and is committed to providing you with the attention and high-quality experience you deserve. To speak directly with a team member, simply call or feel free to utilize any of the interactive tools offered throughout the site.The post How an Inventory App Can Help Your Insurance Claim appeared first on Rosburg & Associates.
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Mistake #7: Not replacing your roof with impact-resistant shingles after a hail claim.
Hail damage is the top homeowner’s insurance claim we have here in Oklahoma – approximately 60% of all of the claims over the last 15 years can be attributed to hailstorms. If you’re one of the many Oklahomans who have dealt with hail damage to your home, keep reading to learn about how impact-resistant shingles can save you money.
Oklahoma is one of the most hail-prone areas in the United States. The average life span of a roof in Oklahoma is about 9 years – not because they are worn out, but due to hail and wind damage. It would make sense, then, if you are replacing your roof after a hailstorm, to consider shingles that will withstand 90% of the hail events that occur here in Oklahoma. Not all impact-resistant shingles are created equal, however. The Insurance Institute for Business and Home Safety has tested various impact-resistant shingles in a real-world scenario and categorized their performances. The test results can be found at https://ibhs.org/hail/shingle-performance-ratings/.
The area you should pay particular attention to is the dents/ridges rating.
This is where most of the storm-related roof damage occurs. If the shingle does not perform well in that category, it would likely fail and be damaged by golf ball-size hail.
Many insurance companies give large discounts if a homeowner uses impact-resistant shingles. The savings can be very significant and pay for the cost of upgrading in about 3 years or so, if the roofing contractor is giving an honest material upgrade cost for the shingle.
However, many roofers have chosen to significantly increase the bid beyond the additional material cost when a homeowner requests a bid for impact-resistant shingles. For example, the average additional material cost paid for a Class 4 impact-resistant shingle is approximately $25 more per square than a regular architectural shingle. But, some roofers will charge $50 or more per square, which may discourage you from making the upgrade. So why would roofers do that? The answer is pretty simple. They believe that installing shingles that will hold up to most hailstorms will hurt their business. If everyone utilized well-designed and effective impact-resistant shingles, it would likely double the lifespan of roofs here in Oklahoma and reduce demand and future claims.
Here are just a few of the many benefits of upgrading to an Impact-Resistant Roof:
- May reduce premiums on your homeowner’s insurance policy
- May reduce the frequency of roof system replacement, especially in high-risk hail areas (saving deductibles and the hassle associated with roof replacement)
- Gives your home a distinguishable advantage in a competitive real estate market (increases the resale marketability of your home)
- Can help stabilize future insurance costs, which have increased substantially over the past few years
- May decrease risk of water damage (water less likely to penetrate)
- Environmentally friendly, with a reduction in the frequency of tear-offs and reduced landfill waste
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The Rosburg and Associates Insurance team is trusted throughout the community and is committed to providing you with the attention and high-quality experience you deserve. To speak directly with a team member, simply call or feel free to utilize any of the interactive tools offered throughout the site.
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Mistake #6: Not carrying a sufficient amount of Coverage A on your home policy to rebuild your house in the event of a total loss (fire/tornado)
Severe weather and natural disasters can brutally damage entire cities – and in Oklahoma, we’re no strangers to the destructive power of tornadoes and fires. Unfortunately, many people underestimate how costly it is to replace a home if it is lost in a fire or tornado. This week, we’re covering insurance mistake #6 – not carrying enough Coverage A on your home.
Homeowner’s Insurance Coverage A
Coverage A is the coverage amount available to rebuild your house in the case of a total loss. In the event of a house fire, the cost to rebuild can be significantly more than what might be anticipated, due to several factors. Many people believe they can use the existing slab and foundation after a fire, but that is typically not the case. A total fire loss can generate enough heat to damage or compromise the concrete and steel in the footings, slab, and stem walls. Also, site restrictions in an existing neighborhood will likely drive up the construction cost and cause the home to take more time to reconstruct.
In addition, the rebuild cost and the market value many times do not correlate. For example, if you have a 4,000 square foot home that was custom-built in the early 1980s, the market value in Tulsa might be in the low 400s. The rebuild cost in the event of a total loss would likely be over $600,000. Newly constructed homes tend to see more correlation between the market value and replacement cost.
Most home insurance policies do provide for additional or extended coverage beyond the Coverage A dwelling. The additional coverage is typically 25%, but it can be higher or lower depending on the company you use. If you don’t have enough coverage, you may end up paying out of pocket significantly more than your deductible. Don’t get caught in that scenario – your home is typically your largest asset and needs to be protected well. Learn more about the homeowner’s insurance we offer here.
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The Rosburg and Associates Insurance team is trusted throughout the community and is committed to providing you with the attention and high-quality experience you deserve. To speak directly with a team member, simply call or feel free to utilize any of the interactive tools offered throughout the site.
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Mistake #5: Buying gap coverage from your car dealer, bank, or credit union
Today, we’re going to cover Insurance Mistake #5 in our 10-part series.
As defined by the Insurance Information Institute1, “gap insurance covers the difference between what a vehicle is currently worth (which your standard insurance will pay) and the amount you actually owe on it,” “in the event of an accident in which you’ve badly damaged or totaled your car.”
Typically, insurance agents can provide that coverage for less than 25% of the cost of a car dealer, bank, or credit union. If you purchase a new car and finance the full cost or put very little money down, you definitely need gap coverage. The cost to add the coverage to your auto policy is around $22 to $25 per six months. You will typically only need gap coverage for 3 years or less if you don’t finance for over 72 months. So, the math on it would be:
$50 X 3 years = $150 to have the gap coverage.
A dealer, on the other hand, would typically charge at least $600 for gap coverage. Once you don’t need the gap insurance, you can take it off of your auto policy. Save yourself some money and buy gap coverage through your insurance agent to pay off the difference between the loan and the value of your car in the event of a total loss.
Source:
1. https://www.iii.org/article/what-gap-insurance
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The Rosburg and Associates Insurance team is trusted throughout the community and is committed to providing you with the attention and high-quality experience you deserve. To speak directly with a team member, simply call or feel free to utilize any of the interactive tools offered throughout the site.
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Insurance Mistake #4: Not having a personal Umbrella policy when you have a high income or net worth
The personal umbrella policy has one of the best values in the insurance industry for providing peace of mind and asset protection in today’s litigious society. If we think about the liability exposures we face every day, our biggest exposure is driving around in our vehicles. The average cost of an automobile accident when there is a critical injury (medical bills, loss of income, pain, and suffering) can easily top $500,000 per person. If the injured person requires a couple of surgeries, physical rehabilitation, and has a loss of income, these costs will likely exceed the coverage limits on most auto insurance policies.
For example:
If you were to carry bodily injury liability limits of $100,000 per person and $300,000 per accident and you were involved in an at-fault collision in which two people were seriously injured, your coverage would almost certainly be insufficient. In this scenario, once the insurance company pays out the $100,000 per person, which would be $200,000 (two people) they would, be out of the picture as far as additional money for the other party’s injuries. This could leave you open to being sued for additional bodily injury costs associated with the injured persons.
A much better scenario or coverage option would be to increase your bodily injury liability limits to $250,000 per person and $500,000 per accident and also carry a $1,000,000 (or more if needed for asset protection) personal umbrella policy. In this coverage scenario for the same accident you would have your auto coverage, plus the additional $1,000,000 umbrella coverage. All of the insurance coverage, which effectively amounts to $1,250,000 per person and $1,500,000 per accident would have to be paid out before you would be responsible for any of the bodily injury you have caused.
The personal umbrella coverage also typically extends all of the other liability limits of the underlying policies such as your auto property damage, home insurance personal liability, boat liability, etc. for an additional limit of coverage in million-dollar increments. Some personal umbrella policies will also cover personal injury which can include libel/slander, defamation of character, mental anguish, and wrongful eviction if you are a landlord.
The overall cost difference between carrying the lower limits versus the higher limits with the umbrella coverage is typically pretty nominal. The umbrella does increase or vary based on the number of drivers/their ages, cars, boats, rental properties you have within your household. There are many people that truly don’t realize the exposure they have to being sued for an unintended injury or accident. You should check with your insurance agent or give us a call to discuss the benefits of a personal umbrella policy.
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The Rosburg and Associates Insurance team is trusted throughout the community and is committed to providing you with the attention and high-quality experience you deserve. To speak directly with a team member, simply call or feel free to utilize any of the interactive tools offered throughout the site.
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Don’t make the mistake of buying a vehicle before looking into the cost of auto insurance.
Are you looking to buy a vehicle for yourself or a family member? One of the most common insurance mistakes is buying a vehicle before looking into the cost of insurance. The type of vehicle can have a major impact on the cost of insurance. Many people look at the cost of the car and their payment but don’t put any forethought into what the insurance cost will be. This is a really important consideration for young drivers under the age of 25. We would recommend you make a list of 3 or 4 models of vehicles you are considering and check them first on the Insurance Institute for Highway Safety crash rating.
Safety Rating
Typically, if they are a highly rated vehicle, ideally with 5 stars, the insurance costs will be favorable compared to other models with lower ratings. I have a teenager getting ready to turn 16, and we are only looking at used cars with the 5-star crash rating. Once you have your list, you should reach out to your insurance agent and check the costs of each vehicle. This will give you the total cost for each vehicle you are looking at and will help you factor this information into your buying decision.
Purchasing a vehicle is a big decision to make, and we know that your family’s safety is of utmost importance. For more information about auto insurance, click here.
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Auto Insurance is designed to protect you and others driving around you when accidents occur. We have found that many people don’t understand the magnitude or consequences of being involved in an injury-related auto accident.
Carrying low liability limits and low deductibles on your automobile insurance
We have all witnessed increasing medical costs and the cost of vehicles in recent years. We are legally liable if we have caused or have been deemed to be at fault when an accident occurs. If an at-fault accident occurs, and the other party goes to the hospital and medical treatment is necessary, chances are the majority of people in Oklahoma do not have sufficient insurance to cover Bodily Injury (medical bills, loss of income, pain, and suffering, etc). For example, if you have $50,000 per person/$100,000 per accident and injured someone that will require surgery, rehab, and time off of work, you likely do not have enough coverage.
Also, if you have been involved in an at-fault accident with a late model vehicle/vehicles and that vehicle is a total loss, minimum coverage will likely not be sufficient. For most situations, it makes sense to carry higher liability limits and higher comprehensive and collision deductibles. For example, if you currently carry $250 deductibles on comprehensive and collision it may be a better use of your premium dollars for asset protection to increase your deductibles to $500 or $1,000 and increase your bodily injury liability and property damage liability.
Find out what level of coverage you need
If you had an accident and had to come up with an additional $500 that would likely not change your financial situation. If you hit and injured someone and they had $150,000 of medical bills, rehabilitation, and loss of income and you only had $50,000 of insurance (therefore you have $100,000 liability), that would likely be devastating financially.
You should discuss these scenarios with your agent and look at your income, assets, and exposures to determine an appropriate level of bodily injury and property damage coverage for your situation. Feel free to reach out to me with any questions. My goal is to help you may wise decisions regarding your insurance protection.
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The Rosburg and Associates Insurance team is trusted throughout the community and is committed to providing you with the attention and high-quality experience you deserve. To speak directly with a team member, simply call or feel free to utilize any of the interactive tools offered throughout the site.
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I am excited to start a blog for sharing my knowledge and experience that I have accumulated over the last 28 years of my insurance career. Making wise insurance and financial decisions can have a lasting impact on protecting your current family’s well-being as well as future generations. I will expand upon each of these top 10 insurance-related mistakes in the next couple of months. I hope you will find this information valuable and useful. We appreciate the continued support of our clients, referral partners, and friends over the years.
1. Carrying low liability limits and low deductibles on automobile insurance.
Typically, for most situations, it makes sense to carry higher liability limits (asset protection) and higher deductibles. You can typically have much better coverage for a similar amount of premium.
2. Buying a vehicle before looking into the cost of insurance.
This is especially true when you are purchasing a vehicle for a young driver under the age of 21.
3. Filing claims just over your deductible.
If you have a claim slightly over your deductible you should consider handling out of pocket if possible. Insurance rates can increase and also some insurance companies will cancel policies with multiple claims.
4. Not having a Personal Umbrella policy when you have a good income or a higher net worth.
The Personal Umbrella policy is one of the best values in the insurance industry for providing peace of mind and asset protection in today’s litigious society.
5. Buying GAP coverage from the dealer/bank/credit union to pay off of the difference between the loan and the value of the car in the event of a total loss.
Typically, insurance agents can provide that coverage for less than 25% of the cost of the dealer/bank/credit union.
6. Not carrying a sufficient amount of Coverage A on your Home policy to rebuild your house in the event of a total loss (fire/tornado).
7. Not replacing your roof with an impact-resistant shingle after a hail claim.
Not all impact-resistant shingles are created equally. Check out these testing results from the Insurance Institute for Business and Home Safety: https://ibhs.org/hail/shingle-performance-ratings/
8. Not documenting the contents/inventory of your home or business.
There are many applications you can use for a very minimal cost. My personal favorite is Nest Egg, which has a $3.99 one-time fee.
9. Not understanding the limitations in coverage on certain personal property items (Jewelry, fine art, collectibles, tools, etc).
You should read through or discuss with your agent what limitations there are for certain items and add coverage if needed.
10. Not buying enough life insurance to protect your family or business when you are young and healthy.
This is a great calculator for looking at life insurance needs for your situation: https://lifehappens.org/insurance-overview/life-insurance/calculate-your-needs/
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The Rosburg and Associates Insurance team is trusted throughout the community and is committed to providing you with the attention and high-quality experience you deserve. To speak directly with a team member, simply call or feel free to utilize any of the interactive tools offered throughout the site.
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