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

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

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

Brian Pool: Lonestar Integra Insurance Services is a full service multi-line independent insurance agency serving all of Texas for home, auto, flood, boat, RV, business, life, and health insurance from more than 100 carriers in all.

What is an example of typical/basic coverage for home insurance in Texas?

Homeowners policies in Texas are packaged policies that range from the basic HO-A policy with narrow, named-peril coverage, to the coveted HO-B policy with broad, All-risk coverage. In between the HO-A and HO-B you have the HO-3 policy form which is the most widely offered policy form and therefore the most popular form in Texas due to its coverage features and reasonable rates.

When should a homeowner consider additional policies on top of their basic protection?

If a homeowner has valuable items such as jewelry, those can be insured on a homeowners policy, but there are cases where it may not be a good idea to do so. In those cases, a separate jewelry or personal articles policy would provide the necessary coverage.

How should homeowners decide what supplemental coverage that they need?

It’s best to talk with your agent about your needs and what options are available to determine the best route and the best options to select to maximize your insurance value.

Can you briefly explain what flood insurance and earthquake insurance policies are?

Flood insurance coverage is available from the FEMA-sponsored National Flood Insurance Program (NFIP) throughout most of the United States, and it’s not includes in most homeowners policies. Flood Insurance covers RISING WATER, generally water that enters the home from the exterior from the ground level due to an out of doors rain or flooding event. Many homeowners confuse water damage with flood, but a pipe that bursts inside your home and “floods” your home in that manner would not be considered a flood insurance event, but rather a water damage claim that could be covered on your home insurance policy. Separate earthquake insurance is not something that’s sold in Texas, so unfortunately I have no knowledge of that particular coverage that I can share.

What does animal liability cover?

Animal Liability covers the bite or attack of an insured’s owned animal on a person, property, or even another animal. It’s important to check your policy to see if this coverage is included, as many carriers are excluding it unless it has been added back in by endorsement. If you have a dog with a bite history or any dog on the carrier’s ineligible breed list, you may not be able to obtain coverage with certain carriers or may have difficulty locating a carrier to provide coverage due to the presence of the “problem” dog.

What are two or three of the most popular supplemental policies for homeowners in Texas?

Assuming you’re talking about endorsements, the most popular endorsements I see and/or use often are those for residence glass coverage and for foundation/slab buyback coverage. Residence glass coverage gives you a zero deductible on glass claims on your home, which can be a nice perk since if you only have 1 window that has been broken, you’re likely not going to reach your standard deductible and would therefore have no coverage benefit. Foundation/Slab buyback coverage provides coverage for damage to pipes or other items within the slab that require the repairs to include getting into the slab to fix the problem. I have had several clients with this type of claim who were extremely happy that I had talked them into adding the endorsement to their home policy.

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

On the web at www.lonestarintegra.com, by email to brian@lonestarintegra.com, or via phone at 713-264-8929

By Brian Pool