What All New Homeowners Should Know About 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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