Tell us a little bit about your company and the services you offer.

Kenneth Jeanes: Boardwalk Insurance Group has been in business since 2008. Our CEO owned another agency previously and then started his own home insurance carrier in 2007. We have the capability and the resources to write almost any type of risk, from your home insurance to your business insurance. I personally have been in the insurance industry since 1997 and was previously an underwriter for an insurance company.

Is there something about getting insured that most new homeowners don’t know that they should know?

I do not think most people realize there is now a credit score for your insurance. As with a lot of other things in life, your credit can help or hurt you getting the best insurance rate. It is important to note that some carriers do not use credit as a factor and each company has their own criteria for determining where you fit in their scoring.

How would you suggest that a new homeowner approaches “shopping” for home insurance? At what point should they start the process?

I find that a lot of people ask their friends and family with whom they are insured and if they have been happy with their service. If I were the one asking the questions, I would also ask if they have had a claim with their carrier and how it was handled. I would also get a few different quotes, however I would not call every agent in town because most of us have a lot of the same carriers. When I am quoting a new account for a client, I provide a few different options to them and explain the pros and cons of each policy. For instance, one may have a higher limit for theft of your jewelry, but the annual cost is higher. I would wait until you have decided on the house you want; a good insurance agent should be able to provide a quote the same day or the day after your call. If you are asking for an insurance quote on 10 different properties in the same area and price range, the quotes are most likely going to be very similar.

What do you consider “adequate” coverage for a new home and how do you determine the amount?

Most insurance agents and the companies they offer provide cost-estimating software, which helps determine the value of the home. An agent will, of course, ask how much you are paying for the home, but that does not mean that would be the replacement value should there be a total loss. When an agent uses this software, they can input the details about your home and the system will calculate how much it would cost to rebuild your home at today’s rates. You should make your agent aware of things that have been added such as wood floors or a remodeled kitchen so they can factor in those items.

Why do home insurance rates/premiums increase? Is there any way to prevent this?

Rates are always changing and therefore premiums are always changing. For example, in Houston we have had and will continue to have hurricanes in our area every few years. We have had large claims because of these hurricanes and therefore our rates are higher than the rest of the state. A lot of times your rates have nothing to do with you, it may have to do with the higher claims frequency in a certain area or the area is a higher risk, such as a coastal exposure. Your rates can also be affected by your own credit score and your claims history at a previous residence. I would advise making sure that your home is correctly insured. While it needs to be insured for replacement cost, sometimes you can be over-insured. Many policies have an automatic increase feature which increases your dwelling value each year for inflation. This can be accurate or you may be over-insured after a few years. Talk to your agent about re-evaluating the replacement cost of your home if you think this is the case. Also, you can reduce your premium significantly if you have a central station alarm and working smoke detectors.

What are some of the most important decisions that new homeowners need to make about their coverage?

It is so important to make sure that you have a replacement cost endorsement on your policy for both the dwelling and your contents. In the event of a loss, you could get a fraction of what you need to replace or fix what has been lost or damaged if this endorsement is not on your policy. Also, I would make sure you have water back-up coverage on your policy as a normal policy does not cover this. If you have a toilet or shower back up and it floods your bathroom, this needs to be on your policy. Along those same lines, if you live in an area that floods a lot or you are close to a body of water or a bayou, I would highly recommend that you have flood coverage. Rising water of any kind is not covered and it is better to be safe than sorry.

What’s the best way for people to contact you and your company?

You can stop by our office, give me a call or send me an e-mail and I will do my best to assist you. We are located at 9100 Southwest Freeway, Suite 201, Houston, TX 77074 and our phone number is 866-595-4077. My e-mail address is kjeanes@boardwalkinsurance.com. Our Texas-based agency is licensed in over 25 other states in the US.

By Kenneth Jeanes

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Tell us a little bit about your company and the services you offer.

Hatcher Kimrey Insurance began offering insurance products in 1999. We are an independent agency offering homeowner, auto, small business, supplemental and life insurances. We are always there for you when you need us. We work hard to find you the best insurance for your needs.

Is there something about getting homeowners insurance that you wish more people knew?

When calling an independent agent, it takes a little time to get quotes. As an independent agent, we research the marketplace to obtain the best quote based on price and suitability for the client. We do different scenarios based on home with auto, as well as standalone auto and home, to find the best rates. If a homeowner has other needs, such as an umbrella, boat, or dwelling fire, each policy can be bundled to give a discounted rate on each.

It is customary for us to prepare quotes from numerous companies, and multiple quotes within a company. Also, in order to get the most accurate quote, we need information. So, be prepared to spend a few minutes discussing your home. The information we need is age of roof, age of heating/air conditioning, when was the water heater last replaced, have updates been made to the home in its electrical, mechanical or plumbing systems? This is information we cannot obtain from public records, but helps us in obtaining lower rates for you.

How do you help a homeowner figure out how the replacement costs for their house and belongings, as well as how much they should ideally be insured for?

Most insurance companies, as part of the quoting process, have replacement cost estimators that we fill out for each company. These take into consideration the size of the home, type and quality of construction, amenities, type of floor coverings, number of stories, etc. We do a lot of fact finding from public records on the home to obtain the information. The more information the client can provide, the closer we can come to obtaining a realistic value for their home.

What types of discounts might be available for homeowners in Texas?

Each company is a little different in the discounts that they offer. But, generally all companies are going to offer companion product discounts, i.e., auto, secondary dwellings, umbrella. Most will offer discounts for burglar alarm systems (monitored alarms as well as unmonitored alarms), new purchase discount, new home discount, and fire suppression sprinkler systems. Some companies that only offer home insurance will give a discount if the auto is also insured by the agent to compete with the companies that carry both home and auto and give companion discounts.

Why do home insurance rates/premium increase? Is there any way to prevent this?

Rates and premiums increase due to many factors, some can be controlled and others cannot. Weather has a large impact on rates for both home and auto. In the last six or seven years, we in Texas have experienced major losses from tornadoes, straight line winds, hail, drought causing wild fires, hurricanes, ice storms and freezing temperatures. Insurance companies have experienced record losses due to our inclement weather conditions. These losses are passed on to the consumer.

The rates usually follow the last three to four years of weather. As the effects of weather increase the losses, the rates rise, and conversely, the rates will lower as weather is better. A factor in premiums rising is costs of construction. Insurance companies must continue to evaluate costs of construction and maintain a level of coverage to be able to replace or repair your current home in the event of loss. So, as costs rise, so will premiums because they are based on the replacement cost value of the home. Premiums on new homes will increase as the home ages, because every year the new home discount gets less until it is gone, usually by the home’s tenth year.

Good maintenance in and around the home will help to keep rates down. Non-weather related claims cause rates to increase and a large percentage of these claims can be avoided by timely simple repairs, for example, keeping trees trimmed and away from the roof. As winds blow the tree limbs can rub against the roof and in time cause a loss of integrity of the roof which can lead to water leaks in the home. So, by keeping the trees limbs trimmed at least 18 inches from the roof will eliminate the potential for claims and increased premiums.

What are some of the most important decisions that new homeowners need to make about their coverage?

Make certain that you are covered by a reputable company that will have the financial strength to sustain great losses as in the event of major disasters from tornadoes or hurricanes that can affect great numbers of homes, subdivisions, towns, even cities. This can be determined by the company’s rating. AM Best rates companies based on its financial strength. Most financial institutions require a B+ or better rate. We work with “A” rated companies, so that you can always feel confident that you will be protected in the event of a major loss.

Customer satisfaction is also important to know, retention rates as well as how well the company pays its claims. Also, many companies will have lower rates because their deductibles are higher, especially on wind and hail. Be sure that you are comparing comparable policies and coverages when obtaining rates. You don’t want to suffer a loss to find out that you don’t have the coverage you thought you were getting.

What’s the best way for people to contact your company?

We can be reached by phone at 972-485-8900 (toll-free at 888-412-8908) or by email at mhk@hatcherkimrey.com.

By Michelle Kimrey