Archive for category: Home Insurance

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 its foundation.

Ed Wise: I started Wise Insurance Group on April 1, 2011 after stints at Liberty Mutual, Countrywide Insurance, and Farmers. I learned about insurance at these different companies and knew I wanted to run an independent agency where I could bring the best policy with the best value to each client. The overriding goal of Wise Insurance Group is operate in an advisory role for each client whether an individual, family, or business.

What are some of the services your company provides?

We provide a full suite of insurance solutions for individuals and families from a variety of companies. The insurance solutions include auto, home, life, long term care, disability, as well as commercial insurance products such as general liability, professional liability, commercial vehicle, and more. I’m a big believer in helping create educated consumers which is why I blog about insurance related topics.

Please briefly explain the idea of home insurance to our readers, what it is, why it was created, etc.

Home insurance is designed to protect the homeowner from financial loss when something happens such as damage from a water leak, hail storm, fire, etc. There should be enough coverage on the home to replace it if there is a total loss. Home insurance was created to provide homeowners a way of sharing the risk of a loss with a financially strong entity, the home insurance company.

What facts should I gather about my new house before I start shopping?

We use a questionnaire to help gather information about everyone’s home we quote home insurance for. Basic information should include square footage, number of stories, number of bedrooms & bathrooms, as well as their grade (basic, semi-custom, custom, etc.). In addition, we ask about flooring type, wall coverings, is there a fire place, swimming pool, trampoline, what kind of pets they have, roofing material, and exterior walls.

If the home is over 15 years old, it’s also important to know when the roof was last replaced and have there been updates to the home’s plumbing (water heater), electrical system and heating and cooling systems. There are discounts for these items from many of the carriers. We’ll also ask about whether a monitored alarm system will be or is installed.

If the home is near water (pond, stream, creek, etc.), I will run a flood zone determination to confirm whether the home is in a flood zone or not. Lastly, I run CLUE reports which show claim and share this information with new home buyers to confirm repairs were made for damage from water leaks, hail damage to the roof, etc.

If the home has been built in the last 5 years, it’s important to know if it is a certified “green” home. There are a couple of insurance companies that provide a discount for a green home.

How can the location of my home affect my insurance costs?

Location does impact what a person pays for home insurance. If the home is in the city limits, factors like crime statistics, home age, fire department ISO classification, and weather patterns shape the home insurance premium. If the home is out of the city limits, issues like fire department ISO classification, responding fire house distance, presence of water, and brush hazards shape the premium.

In addition, if the home is located in an area where earthquakes have occurred, or is prone to hurricanes, I review the special coverage they may need that their home insurance policy won’t cover or needs to cover. For instance, homes located on or near the coast, should confirm they don’t need a separate wind (hurricane) policy and that their home insurance includes coverage for wind driven rain.

How do I make sure I am not under-insured? What does it mean to make sure I insure my home to “replacement value”?

It’s important to insure the home for what it would cost to replace it due to a total loss. That means there should be enough coverage on the home to completely cover any demolition that is required, hauling debris away to the dump (this usually requires special permits), and then rebuilding the home. Most people don’t realize that home construction includes plans or blue prints, permits, inspections, EPA skirting around the lot, fencing, etc.

One of the steps we take is to divide the home’s insured value by the number of square feet in the home (excluding an attached or detached garage). This provides the homeowner with a cost per square foot. Most agents should be able to provide what claims are estimating the average cost per square foot should be for a home (this will vary depending on finish out, location, etc.) in their area and guide them as to whether they are properly insured or not. If the amount the home is insured for hasn’t changed in 5 years or more, it should definitely be evaluated.

In your personal opinion, is it worth it to get additional coverage for some of the valuable items in my home?

Most home insurance policies have limits on the amount of coverage the policy provides for valuable items (jewelry, artwork, collectibles, antiques, musical instruments, etc.). These limits can be dollar limits such as $2,000 total for a jewelry loss, they can limit the type of loss (mysterious disappearance is usually excluded) or both.

If the homeowner has any of these items, and they combined value is $2,000 or more, this is excellent coverage to add to the home policy or to purchase separately. For all scheduled jewelry, I strongly recommend that mysterious disappearance (I lost it) coverage be included. Many carriers will insist on an appraisal that is no older than two years.

Can I save money on my monthly premium if I add certain safety features to my home?

Most home insurance companies provide a discount on the home insurance policy if the homeowner has operational smoke detectors, a fire extinguisher, deadbolt locks and the home is visible to neighbors. Additional discounts may be available for homes with a centrally monitored burglar and fire alarm system and some offer an even better discount if the alarm system is monitored by the local fire and police departments.

How can I ensure that I am working with a home insurance provider that I trust?

It’s important for any homeowner to do their homework when selecting an insurance company. Start with the financial ratings provided by A.M. Best and Standard and Poor to confirm whether they are financially strong. Check with your state insurance department too. Many provide a listing of what perils are covered and which ones are not. The Texas Department of Insurance provides homeowners the ability to compare policies between companies and there should be information on how well they handle claims. If the agent represents more than one company, ask who they have their home insured with!

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

We can be reached in a number of ways including:
Office number: (469) 464-5740
Email: ed.wise@wiseinsurancegroup.com
Twitter: @wiseinsgroup
Facebook: www.facebook.com/wiseinsurancegroup
Website Blog: www.wiseinsurancegroup.com/blog

By Ed Wise