When was the last time you checked your home insurance coverage or compared your rate? Let’s be honest, in today’s world we have so many things to do and so little time to do it, that we don’t find the time or effort to go over tedious things such as homeowners insurance. Home insurance is not the most exciting thing to talk about, but knowing your coverage and the way it works can save you a headache incase of a loss and will protect your biggest asset. If you have your home insurance payment combined with your mortgage payment you might not have checked your premium or coverage in a while, so its time to dust off those home insurance declaration pages, it might end up saving you some money.

So what are the different parts of a homeowner’s policy and what do they cover?

Dwelling coverage: This is the amount that the insurance company will pay up to in case of a loss. This is where the bulk of the premium is charged, the higher your dwelling coverage usually translates to a higher insurance rate.

Other structures: This is coverage for structures that are not part of your house, but are on your property, like a tool shed.

Personal Property: This covers your personal belongings/possessions in case of damage or theft as long as the damage is a result from a covered loss.

Loss of use: Protects you in the event that your home is destroyed or damaged and you must seek other living arrangements while repairs are made.

Personal Liability: This coverage would protect you against lawsuits brought against your and your property.

Medical: This is the amount the insurance company would pay incase a person is injured on your property and did not wish to pursue a lawsuit against you.

Let’s go over some of this coverage in more detail:

It is always important to check your dwelling coverage; you want to make sure you have enough coverage to cover your house in case of a total loss. It is also a good idea to have extended replacement cost coverage on your home. This will extend your dwelling coverage an additional 25%-50% in case of a total loss.

For personal property, you should know the difference between Actual Cash Value (ACV) and Replacement cost. ACV will pay you the depreciated value of your personal contents, so if you bought a TV for $1,000 and the value at the time of loss is $200 the company will only pay $200. Replacement Cost would pay $1,000. Insurance companies have limits on contents such as Jewelry, Firearms, and art. If you have possessions that go beyond these limits make sure you schedule those on your policy with your insurance agent.

In today’s lawsuit happy society you should always make sure you have adequate Personal Liability. Most homeowner’s policies come standard with $100,000. I would recommend raising the limit to at least $300,000, because the price is minimal for the amount of protection you will obtain.

This general overview of Homeowners insurance should provide you with a good understanding of how your policy works. Remember to review your coverage, make sure your coverage is enough to protect your biggest asset. Do not be afraid to compare prices, by doing this you will make sure you are obtaining the most coverage possible for your money. It is always good to discuss your coverage with an insurance agent… feel free to contact me with any questions you may have.

 

Preferred Insurance

951-689-4830

www.preferredinsurance.net

Our office will be closed on 12/24/2014 and 12/25/2015.  We wish everyone a safe and Merry Christmas!

Our office will be closed on 11/27/2014 to 11/30/2014.  Claims can be filed by calling the claims number on the proof of insurance.  Payments can be posted online https://preferredinsurance.net/payments/

Have a Safe and Happy Thanksgiving.

You were just involved in an auto accident, and the panic kicks in!  “what do I do??” relax.. Do not panic.  First and foremost, make sure everyone is okay.  If there are any injured parties, call 911 immediately.  Check your car, and the other car for apparent damages.  Most people are carrying around a camera in their pocket these days, so pull out your cell phone and snap pictures of the damages to both vehicles, or any property damage involved.  Always get the other parties insurance information, such as policy number, name of their insurance company, and the phone number to the claims department.  You should also obtain the other parties name, driver’s license number and license plate number.  Last, but not least get their best contact phone number and address.

The police will most likely not come out to the scene for a police report, unless there are injuries.  You should not claim fault; that will be for claims to decide.  You should not discuss your coverages with the other party, or their insurance provider.  You will want to call your claims department as soon as possible, the phone number is generally listed on your insurance ID cards.  They will assign a claims representative, which will help you with all the details of your claim.  In some cases, if the other party was 100% at fault, you can also file the claim directly with their insurance provider.

Claims are generally an easy process, as most companies are looking to complete the process as quickly as possible.  In most situations where a claim is taking longer than expected, it is due to lack of communication.  Make sure to give your claims representative multiple contact phone numbers, and email addresses if possible.  If you were to ever have difficulties with your claim, you can also contact your agent for further help.

The big WHAT IF?

It is something that nobody likes to talk about, and the conversation could be an awkward one… But, what If today was your last?  After asking all the other questions, such as “did you live your life to the fullest” and so on, comes the tough question of, did you have a plan? What are your loved ones left with? Who is going to care for your family or children?

If you haven’t caught on to it by now, we are talking about life insurance.  It is a touchy subject, but it can make the difference of how your family recovers after a loss.  Term life insurance is generally an inexpensive way to protect your family and loved ones in that situation.  These types of policies can help take care of any bills or mortgages left behind, and even college costs.

Term life insurance policies are pretty straight forward.  You pick a term, generally between 10-30 years.  This is the term set forth for the policy coverage period, meaning if you buy a 20yr term at the age of 20… it will cover you until you are 40 years old. Then you have the coverage amount, which can range drastically… but the most common being between 250K-500K.  Most companies will do a basic review/ exam to determine your rate.  Term life insurance policies are usually much cheaper than other types of life insurance.

 

Contact us for a quick quote today!

951-689-4830

You may qualify for a discount for simply having a professional designation.  If you are a Doctor, Lawyer, or educator you may qualify for an additional discount.  These discounts will range between 5% to 10%.  Also if you have obtained a Bachelors degree from an accredited university from the United States you will qualify for an alumni discount.  When obtaining a quote do not forget to mention your profession or the University where you graduated from as this could save you money on your insurance.

With the holidays, comes cold weather, rain and lots of shopping!  There are some tips to help make these times trouble free, and more enjoyable with the shopping part.

Cars:

-Check your tires, is it time for replacements?  Worn out tires could cause less traction in the wet rainy weather, and are also more prone to flats, which are definitely no fun in the rain and cold weather.

-Keep gifts, valuables and shopping bags out of sight.  While you are in the mall enjoying some shopping… there are some that are going through the parking lot, doing their own shopping.  Unfortunately their type of shopping includes a broken window for you and stolen goods.

-Do you have roadside service?  Now is a good time to consider adding that coverage.  Changing a flat is never any fun, and it is less fun doing it in the rain and cold weather.  Sometimes the coverage could be as low as $1 per month when combined with your auto policy.

 

Home:

-Check and clear any debris from your rain gutters.  With winter coming after fall, there is a good chance that some leaves and debris have made their way into your gutters.  It is best to have these cleared so that the rain can drain off your roof, straight through your gutters.

-How is your roof?  When was the last time you have inspected your greatest protection from the outside elements.  We all love having a roof over our heads, but a leaky roof could cause a lot of headaches. Fix and replace any broken tiles or shingles to help avoid any unwanted leaks and problems.

-Do you have a fire extinguisher handy?  These are a great asset to help protect your home.  Christmas tree fires are a high risk during the holidays.  This is cheap insurance to have around your home, and they can be found at your local hardware store.

-Keep your blinds or shutters closed when you are away from your home.  Unfortunately thefts are more common during the holiday times, due to thieves knowing there is a good chance that there are presents in the home, which makes it an easy task for them.   Keep your doors locked, and presents out of direct sight.  Now could be a good time to consider a home alarm, which can also earn you a significant discount on your homeowner’s insurance policy.

 

We at Preferred Insurance hope that you enjoy your winter season, and coming holidays.  You can always contact us with any questions you may have regarding any of your insurance needs.

If you have heard that sentence then you know the difficulty of finding Home insurance that will accept your home, let alone give you an affordable rate.  There are many insurance companies doing business in California and their guidelines are not all the same.  If you are denied home insurance by multiple companies it does not mean that you are uninsurable.  We will go over what brush means to Homeowners insurance and what insurance coverage choices you have when insuring a home close to brush.

You might be denied insurance coverage due to brush if your home is:

1. In a forested area.
2. Close proximity to hills, mountains, or rugged terrain.
3. Open fields near home that are not maintained

 

Being located in Riverside, Ca we have come across countless properties that meet the above description.  In general, California’s geography is not flat and many homes are built close to brush hazards.  Some companies have their own software that determines your homes fire risk; others use a mapping tool and require your home to be a certain distance away from this brush hazard.  This could range from 2,000 feet to 250 feet depending on the company.  So it is important to ask why your home is being rejected for brush.  Are all the companies you obtained a quote with requiring 2000 feet of clearance? If so, you simply did not call the right company and you still have options.

Companies that do have a higher tolerance for brush generally charge a higher rate.  This is due to the fact that they are taking on more risk.  It does not mean the price is not affordable.   In a situation where your home is denied coverage with more than 3 companies, you still have the option to get insured with the California fair plan which is sold through your agent.  The California Fair Plan does not provide you the standard coverage that a regular homeowner’s package affords.  This could be corrected by issuing a Difference In Condition (DIC) policy along with the California Fair Plan.

If you are having a difficult time insuring your home due to proximity to brush or your current rates are high, it is important to know that you have options.  Not all company guidelines are the same.  We are here to help you with your Home insurance needs; we can analyze the risk and determine the best option for insurance for your property.

Preferred Insurance Team

951-689-4830

questions@preferredinsurance.net

1.       Do I need to insure my trailer / toy hauler?

A:  If your trailer or toy hauler is financed, most finance companies will require that you carry comprehensive and collision coverage to help protect their interest.  Liability is not required in most states, as the primary coverage from your auto insurance will provide coverage for a towed trailer.  Most auto insurance policies will not provide coverage for theft or damage to your trailer.

2.       Are my toys covered by my trailer insurance?

A:  Unfortunately no, things such as dirt bikes, quads, UTV’s etc.  Need to be covered through separate policies.  The rule of thumb with insurance, is that if there is a policy tailored specifically to a vehicle / toy (motorcycle, car, etc.), it would not fall under the coverage of a separate policy.  An example is how homeowners insurance would not provide coverage for your automobile, even if it is parked in the garage.

3.       What about my personal Items in the trailer, are those covered?

A:  Personal effects is an optional coverage on most policies, which would provide coverage for items such as clothing, cameras and equipment used with cameras; portable radios and CD players.  Ask your agent if this coverage is available on your policy.

4.       I use my trailer for business, what type of coverage would I need?

A:  Coverage under a commercial auto policy is what you would need.  These policies are specifically tailored to the nature of the business being conducted, and they offer greater coverage limits, which are essential for a business.  Most personal trailer and RV policies exclude coverage for any business use. Tools and most business equipment would need to covered under a separate general liability business policy.

5.       Can I insure my toy hauler on my auto insurance policy?

A:  Some companies will offer coverage for your toy hauler or RV through your current auto policy.  Always check with your agent or insurance professional for details and availability.

6.       Does my homeowners insurance provide any coverage for my trailer?

A:  Some things that may be covered through your homeowner’s policy, are items of clothing, and personal items such as laptops, cameras, etc.  Check with your homeowner’s insurance policy for details.  Homeowner’s insurance does not cover the toy hauler or RV for any theft, damaged or accidents.

7.       Are there any discounts available for trailer / toy hauler insurance?

A:  Some companies offer discounts for being a part of an RV membership or association.  Multi policy discounts are available, if you have multiple policies through the same company.  Contact your agent for details.

8.       Are my optional accessories that are attached to the trailer covered?

A:  Permanently attached equipment such as AC units, lighting and stereos would be covered under the toy hauler policy.  Make sure you disclose the features to your agent when you start a policy.

as always if you have any addtional questions feel free to contact us!

1. Good Driver: Up to 20%, this is one of the biggest discounts you can qualify for. You cannot have more than 1 point on your record, so it pays to have a good driving history.  Your record is generally checked on each renewal period and the discount applied.

2. Multi Policy: By combining your auto & home insurance you can save as much as 15%. Insurance companies want to earn your business and they reward you when you have more than one policy with them.  It’s easy to package you policies, we can do it all for you. Just provide us the information and we will do the rest.  The discount also applies to Renters insurance and Motorcycle Insurance.  So if you rent you can still apply for this discount.

3. Association: Are you a college graduate? Are you an educator, engineer, doctor? If so you can save up to an additional 7%.  You worked hard for your professional designation, now let it work for you by saving you some money.  Submitting your degree or proof of membership in a professional field can save you money.  Contact us to see if your job qualifies you for a discount.

4. Good Student:  Good student can save up to an additional 10%.  If you are under 25 and are attending school full time and have at least a 3.0 GPA you qualify for the discount.  This can help you save money especially if you have a young driver on your policy.

 

If you have any questions about these discounts or you want to see if you qualify for one, please feel free to contact us.