Insurance poor is what you hear some people say these days about home, auto, and even life insurance. The costs just keep raising and that is in fact the case when it comes to home insurance. As I mentioned last week Indiana is in the middle of a volatile market change on the home side. Auto and life not so much. In fact, in most cases there is enough to be saved in packaging to offset the home increases we are seeing.
The insurance package for the average family should always be packaged for the most effective cost savings. Our lead carrier offers a discount for home and auto and then another for life. There are even payment options that offer discounts. The less you spread out your payments the less you pay with most insurer's.
So what am I talking about Insuring For Life? It's not just a way to get you thinking about your life insurance. It is a way to get you thinking about the "big picture" of insurance and the role it plays in your life.
When you get your first house or condo, or your first car, your first life change all of these events are triggers to review your insurance. The insurance in your life should grow same as you do, same as your family or businesses does. Your exposure to loss gets higher with each new thing you have and this is a REAL reality. The more you extend out your property or your things the more you extend out not only the chance of that property being damaged, but your liability for damage they may cause others.
Let's quickly chat on liability most people just don't get it. Well, on your auto it protects you from property damage and bodily injury you may cause someone else if you are at fault for an accident. The liability on your home or tenant policy serves you as "personal liability" that would be things you are legally liable for that are not auto related. If you are a tenant and catch your home or apartment home on fire you could be legally liable for the damages.
With that insurance you carry on your car and home or living space you are protecting yourself from the loss of damage to your property and protecting your liability damage you may cause others. It's a fully rounded out insurance package property damage and liability and you have them both on auto and on home or tenant coverage.
This protects you from financial loss all the way around. The same is true of life insurance. Only 62% of the population carry life insurance and a good portion of that are under insured. Most people say they can't afford life insurance that they have too much on their plate. So who are you leaving all those bills with? Who is going to pay for the cost of your burial if something happens? Quick fact life insurance quite frankly is the most affordable insurance out there. This is the one policy you can fit in. Shop the others until you find enough savings to pay for life insurance. Don't leave your protection unfinished. This one is literally the worst to not have.
So learning the basics of why you carry what you carry is sort of a pain to have to know. The thing is as you grow through life so should the protection. If you set this protection properly then you will not suffer a financial loss from accidents you will be restored and that is the entire point of the coverage.
Do not make the decision to go without it ever, for one that is barely legal in this state, for another it's just not worth the loss you could suffer. Know what you have, know you have someone well versed in the insurance industry to guide and review for you. Most of all know it is there to protect you.
Heather Swank
Brookson Insurance
317-534-5202
Heather@brooksoninsurance.com
Tuesday, May 20, 2014
Wednesday, May 14, 2014
What Is Going On With Home Deductibles????
Did you get a letter with your home renewal this year forcing you into a higher deductible or a % deductible for wind and hail damage? Be aware this is happening all over Indiana. This year make sure you review your renewal for any changes like this.
There are some basic facts surrounding these changes. I know rates have been enough, but these changing deductibles are an attempt to change the face of home insurance in Indiana. Indiana has seen consistent storm damage for fifteen plus years. Each hail event we have results in millions of dollars in damage not to even begin wind, lighting, and tornado damage. Hurricanes are no longer the big boys of catastrophe claims in the US hail has become the mass producing damage maker. It's because it hits every single day through storm season somewhere and now even beyond. Late fall tornadoes, unexpected ice damage from harsh winters, and then right back into our storm season.
This has forced insurance carriers to raise pricing just to literally keep their heads above water. On average in the US there are 12,000 hail events each year costing upwards of a billion dollars per year in damages. Let me ask how many people have actually paid themselves out of pocket to replace their own roof on their home? Yeah, it rarely if ever happens after so many years a storm blows in and poof a new roof. The fact is most roofs being replaced should have been replaced by the homeowner well before that storm came along because of age and that is maintenance which is not the intention of the insurance policy to cover.
It has become an expectation of the homeowner that the roof will always be replaced and that is just not anything you will ever have to do. This cost, the cost of replacing worn out roofs that should have been replaced far before a stone of hail came along, that is why the cost of insurance is skyrocketing. Be prepared for changes, but also be aware not all carriers are making those changes.
When shopping ask is there a higher wind hail deductible? Or is there a % deductible for wind hail. The % deductibles are often 2% sometimes higher. What that means is that whatever your home is insured for the "dwelling" your deductible would be 2% of that. So, if your dwelling is insured for 260,000 then your wind hail deductible would be $5,200.
I know it seems as though the insurance world is a big evil machine when we pay our bills and never file claims, but it really is not. Hey, I am an insurance agent and I still hate paying my premiums but I do so because I know I'm sharing risk so that when my time comes my claim will be paid.
These storm patterns we experience now are only getting worse so buckle up it will keep getting more expensive and it will keep changing. I'm a proud insurance agent who fully understands the product and grasps how beautiful it really is. We all pay in and when a family experiences a fire and loses everything they had in life you see the product in action. It's amazing life begins to rebuild and without insurance that would never happen. A family could be financially devastated if they suffered a severe loss without it.
I remember standing on a slab in Kansas City in 2001 after tornadoes blew through and more coming literally every night. I am a former claims adjuster I was dispatched there for claim work for 4 weeks. Standing on the slab of what had been a home 48 hours prior I saw an American flag stuck to the only remaining portion of a wall. In that moment I knew I was in the right field and kept on working claims until each family had been taken care of.
Today I watch out for insured families. This change in home insurance pricing and deductibles is the most major change I have seen in my career. My lead carrier Erie Insurance has chosen NOT to create higher deductibles for wind or hail, nor are they applying % deductible. Your regular deductible is what it is. If you experience anyone stressed about the forced higher deductibles pass my agency name along.
Buckle up storms are upon us. I'm here as always for any questions.
Heather Swank
Brookson Insurance
317-534-5202
Heather@brooksoninsurance.com
There are some basic facts surrounding these changes. I know rates have been enough, but these changing deductibles are an attempt to change the face of home insurance in Indiana. Indiana has seen consistent storm damage for fifteen plus years. Each hail event we have results in millions of dollars in damage not to even begin wind, lighting, and tornado damage. Hurricanes are no longer the big boys of catastrophe claims in the US hail has become the mass producing damage maker. It's because it hits every single day through storm season somewhere and now even beyond. Late fall tornadoes, unexpected ice damage from harsh winters, and then right back into our storm season.
This has forced insurance carriers to raise pricing just to literally keep their heads above water. On average in the US there are 12,000 hail events each year costing upwards of a billion dollars per year in damages. Let me ask how many people have actually paid themselves out of pocket to replace their own roof on their home? Yeah, it rarely if ever happens after so many years a storm blows in and poof a new roof. The fact is most roofs being replaced should have been replaced by the homeowner well before that storm came along because of age and that is maintenance which is not the intention of the insurance policy to cover.
It has become an expectation of the homeowner that the roof will always be replaced and that is just not anything you will ever have to do. This cost, the cost of replacing worn out roofs that should have been replaced far before a stone of hail came along, that is why the cost of insurance is skyrocketing. Be prepared for changes, but also be aware not all carriers are making those changes.
When shopping ask is there a higher wind hail deductible? Or is there a % deductible for wind hail. The % deductibles are often 2% sometimes higher. What that means is that whatever your home is insured for the "dwelling" your deductible would be 2% of that. So, if your dwelling is insured for 260,000 then your wind hail deductible would be $5,200.
I know it seems as though the insurance world is a big evil machine when we pay our bills and never file claims, but it really is not. Hey, I am an insurance agent and I still hate paying my premiums but I do so because I know I'm sharing risk so that when my time comes my claim will be paid.
These storm patterns we experience now are only getting worse so buckle up it will keep getting more expensive and it will keep changing. I'm a proud insurance agent who fully understands the product and grasps how beautiful it really is. We all pay in and when a family experiences a fire and loses everything they had in life you see the product in action. It's amazing life begins to rebuild and without insurance that would never happen. A family could be financially devastated if they suffered a severe loss without it.
I remember standing on a slab in Kansas City in 2001 after tornadoes blew through and more coming literally every night. I am a former claims adjuster I was dispatched there for claim work for 4 weeks. Standing on the slab of what had been a home 48 hours prior I saw an American flag stuck to the only remaining portion of a wall. In that moment I knew I was in the right field and kept on working claims until each family had been taken care of.
Today I watch out for insured families. This change in home insurance pricing and deductibles is the most major change I have seen in my career. My lead carrier Erie Insurance has chosen NOT to create higher deductibles for wind or hail, nor are they applying % deductible. Your regular deductible is what it is. If you experience anyone stressed about the forced higher deductibles pass my agency name along.
Buckle up storms are upon us. I'm here as always for any questions.
Heather Swank
Brookson Insurance
317-534-5202
Heather@brooksoninsurance.com
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