Arizona Homeowners Insurance

Pool Saftey

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Arizona InsuranceFlying into Phoenix, Arizona, you see that hundreds of homes underneath you have swimming pools.  Vast gardens of deep blue line backyards for miles and miles. Arizona is hot! Phoenix actually has five months of summer. The months of May, June, July, August, and September are considered summer season!

There’s something else floating around these backyard pools. It’s called liability! Oh, cool off in the pool, next to the pool, in the house just looking at the pool, but mostly, make sure the pool is INSURED.  Insurance should be the first place you look for information. The consequences if you don’t aren’t cool at all!

You will be hotter under the collar than triple digit heat if someone gets injured or (gasp!) killed in your pool. Just think about it, you could lose your home paying for the privilege of chillin’ in your own backyard oasis, if you aren’t insured and someone gets hurt.

There can be no relaxing next to an uninsured swimming pool. Find out from an insurance company what can happen without the proper coverage. Take a look at some of these helpful hints to help you protect your assets:

The website, www.safetyathome.com offers these great safety tips: 

  • If you have a pool at home, install a fence. The fence should be at least four feet high and have a self-closing, self-latching gate that has a locking mechanism beyond a child’s reach.
  • Cut overhanging tree limbs and remove chairs or ladders from the pool area to prevent children from climbing over the fence that surrounds the pool.
  • Keep grates and drain covers in good shape and secured in place.  Alert your family and guests to stay away from these devices, as the suction from drain outlets can be strong enough to cause entrapment of hair or body parts, which can potentially cause a person to drown.
  • Make sure you know infant and child CPR if you own a pool.

Adults are just as likely to make mistakes and drown accidentally in your pool. Just think about a certain guy you know, who, if he was alone with your pool for a weekend, would possibly be found  floating at the bottom with a beer still clutched in his hand?

Don’t know anybody like that?  What about you? Even if you’re not Jay Gatsby, how responsible are YOU when the football buddies come over? How about your wife and her book club friends. Ever notice how many bottles of wine are alongside the trash after one of THOSE meetings?

How about the teenagers? Need I go further on this point? I would add to that list above, make sure your roof is inaccessible to teenagers who think they can “make it into the pool no problem!”

Follow these instructions and your life will be easier! Don’t forget that people are stupid sometimes! Your neighbor’s rude cousin  could decide to cool off in your pool because you aren’t home. After that he forgets to lock the gate. Any kid could walk in there and I wonder who will be liable!

Arizona is a great place to live. It’s a much more tolerable place when you have AC, a swimming pool, and a cocktail in hand, so make sure you have all the insurance you need behind your back, and you will really relax!

We invite you to call one of our insurance agents to see how you can get properly covered on all your insurance policies.

What’s Covered in Your Home Insurance Policy

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Here are answers to some frequently asked questions I get as an insurance agent that will be helpful to any homeowner in Arizona. In addition to questions and answers, I have included coverage items to look for before purchasing your next homeowners insurance policy or upon your next policy renewal.

What is covered in my home insurance policy?

This may sound like a basic question but it is a very important one. The good news is the standard homeowner insurance policy covers most hazards or “perils” to the dwelling. It is probably easier to answer what is not covered vs. what is. Although this list is not complete, below are a few of the major ones.

–       Flood

–       Earth movement (Earthquake, landslide, sinkhole)

–       War

–       Nuclear hazard

–       Intentional loss

–       Wear and tear

–       Governmental action

–       Birds, vermin, rodents, or insects

Do I need to purchase a different type of homeowners policy if I am renting my home?

Yes. There are many different types of policies depending on the use of the home. Insuring a home with the wrong type of home insurance policy could leave you exposed and at risk of not have coverage when a claim arises. Landlord or rental policies cover you for the extra exposure of having a tenant in the home. For example, what if the tenant of your home is found liable for an injury to someone while on the property? If the home is insured as your primary home there would potentially be no coverage for the risk associated with the tenant.

Does a tenant need his own insurance policy if he is renting my investment property?

Yes, for multiple reasons. By having the tenant purchase what is known as a “renters” policy, the landlord and the tenant both benefit. The landlord gets an added layer of protection in the event the tenant is found liable for some damage or injury to someone while on the property. The tenants get coverage for their personal belongings (furniture, clothes, T.V. etc) as well as liability protection for their actions as well.

Is their added home insurance coverage I need if my home is vacant?

Yes. Many people in Arizona do not realize there is a vacancy exclusion in almost every home insurance policy. The time limit can vary, but most policies state that after 30 to 60 days of the home being vacant coverages are limited (if the home is seasonal and is correctly insured this would not apply). Losses from theft, vandalism, and water leaks could potentially go uncovered. If you know your home is going to be vacant for an extended period of time, having a property management company check on the home periodically could mitigate a lot of the risk.

How can I save money on my home insurance?

This is the question everyone wants to know. Home insurance pricing is based on many factors (age of home, proximity to fire station, estimated replacement cost, security features, etc).  Although insurance companies use basically the same criteria, you will find that their rates will vary greatly. Probably the best way to save money is to quote your insurance with multiple companies. You can call several companies for a quote, or use an independent agent that can get multiple quotes for you. Choose a high deductible. A $1,000 deductible should be a starting point. It is not uncommon for policies to be written at 5,000 deductibles or higher. The savings can be well worth it. Make sure you let your insurance agent know about any security features. Monitored alarms for fire and/or burglars will shave off 10% or more.

Now that you have a great quote on your home insurance, does the policy have the coverage you need? Many people think home insurance coverage is the same from company to company.

Here are 3 things to look for in a great home insurance policy:

1. “Guaranteed replacement cost.” What happens if your home burns down and the cost to rebuild is 300,000 and your policy is written for 250,000?  Most policies have some sort of “extended replacement” cost, but that may or may not be enough. Having a policy written with the language “guaranteed replacement cost” puts the burden on the insurance company to make sure there is enough coverage in the event of a total loss. However, to qualify for “guaranteed replacement cost”, you will need to make sure you inform your insurance agent if you make any changes to/in your home. Talk to your insurance agent about what can disqualify you from having this coverage.

2. “Water back up coverage.” I often hear, “Why would I need water back up coverage on a home in the AZ desert?” This is an essential coverage often times overlooked by insurance agents and insured’s. If water backs up through your toilet, sinks, bathtubs, etc, and causes damage to the flooring, chances are you may be out of luck. The standard home policy does not cover this.

3. “Building ordinance coverage.” Many cities in AZ are requiring the construction or remodeling of homes to include certain extras or upgrades to bring up to city building code. What if the city your home is in now requires all homes to have fire prevention sprinkler systems throughout the house? If your home needed repair from an insurance claim, you might be stuck paying the bill for the extra work. Such a law was passed in Scottsdale, AZ not too many years ago.

Another confusing aspect of home policies is the breakdown or separation of the coverages. What exactly are all those numbers and letters referring to and do I need less or more? Below is a summary of the coverages sections for you to refer to.

Coverage A – Residence (Dwelling)

This provides protection on: the house and attached buildings (dwelling, attached garage and porches, etc.), building equipment (furnace, hot water heater, etc.), fixtures, built in components, outdoor antennas including lead-in wiring and accessories, carpeting, building materials and supplies located on the insured premises for use in construction of or to the residence.

Coverage B – Other Structures
This covers fences, driveways, sidewalks, and other permanently installed outdoor fixtures, outdoor antennas including lead-in wiring and accessories, carpeting, building materials and supplies located on the insured premises for use in construction of or to a related private structure.

Coverage C – Personal Property
Personal property you own or in the care of you or your relatives residing in your household is covered. This coverage includes detachable building items such as window air conditioners, curtains, drapes and outdoor equipment not permanently installed.

This also includes coverage for the property of students who are resident relatives while temporarily living away from home at school or college.

Certain types of personal property are subject to specified limits of protection.

Coverage D – Additional Living Expense
Any extra reasonable and necessary costs incurred (up to your policy’s specified limit) is covered if you’re forced to live in temporary quarters due to the loss or repair of your home following a covered loss to your property. This coverage is for additional expenses above and beyond your normal household expenses. The increase in living expenses applies to such expenses as rental of temporary quarters, meals in restaurants, and laundry service.

Coverage E – Personal Liability
Personal liability coverage protects you against covered losses caused to others while on your property and elsewhere. It also safeguards you against accidental damage to someone else’s property.

Coverage F – Medical Payments
This coverage provides for the necessary medical expenses (subject to policy limits) for non-residents injured on your property, regardless of fault. Medical payments will be paid if expenses are incurred within three years from the date of accident.

Make sure you are not just getting a great rate, but also getting the protection you need. Having an insurance agent that understands these risks is more important than ever. Your home is one of the biggest investments you will ever make. Making sure you have the right home insurance policy is essential to protecting that investment long term. Also keep in mind that home insurance policies in each state are different. For example, an Arizona home insurance policy is going to be different from other states in the nation.

Keep Your Pool Safe and Prevent Insurance Claims

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As the summer heats up, many Arizona residents want to cool off in their own pool. While splashing around in the water can be a great source of family entertainment, backyard pools can also be potential liabilities. According to the Insurance Information Institute (I.I.I):

There are over 3,400 fatal accidental drownings in the U.S. annually, with children ages one to four having the highest drowning rates. Fatal drowning remains the second-leading cause of unintentional injury related deaths for children ages one to 14 years old, according to the CDC. In addition, for every child who dies from drowning another four children will be treated for “nonfatal submersion injuries” which can cause brain damage that may result in long-term disabilities including memory problems, learning disabilities and permanent loss of basic functioning (e.g. permanent vegetative state).

Pool owners need sufficient liability coverage to cover their pool. Most homeowners insurance policies have at least $100,000 of liability protection. However, since pools are considered an “attractive nuisance,” homeowners may need additional liability coverage. The I.I.I. recommends at least $300,000 to $500,000 of liability coverage for pool owners. Homeowners also need enough insurance coverage to replace the pool if it is destroyed by a natural disaster.

Homeowners need to be aware that they can be liable for damages even if the person injured was using the pool without permission. In addition to purchasing sufficient liability coverage, homeowners should also consider the following safety precautions:

  • Completely surround the pool with a four sided fence that is at least 5 feet high, as required by law. If a residence makes up one side of the pool enclosure, there must be a barrier between the home and the pool that is at least four feet high.
  • Install an appropriate pool cover. Arizona requires a motorized, key-locking, ASTM approved pool cover.
  • Layer child safety measures such as pool alarms that sound when a child enters the water, self-closing latches that prevent a child from opening the pool gate, and alarms on exterior doors or windows that will alert when doors leading to the pool are opened.
  • Install a VBG compliant pool filter. Keep children away from pool filters or other suction devices and make sure that supervising adults know how to shut down the filter in case of an emergency.
  • Make sure that pool guests know how to swim. Proficient swimmers should accompany beginners, and adults should supervise children at all times.
  • Have emergency supplies such as ring buoys, reaching poles, and a first aid kit easily accessible. Post emergency numbers on the phone. Keep a phone close to the pool.
  • Regularly check the pool area for hazards such as glass bottles or toys that could cause an accident. Keep radios or other electronic devices away from the pool.
  • Restrict alcohol use near the pool. Alcohol is involved in almost half of water related deaths for both adults and teens.
  • Learn basic life-saving techniques such as rescue breathing and CPR.

Taking these basic safety precautions can help you and your friends safely enjoy your pool this summer. Pool safety doesn’t just prevent claims on your homeowners insurance policy, it also saves lives.

For more information on pool safety, you can view the state guidelines at the Arizona Department of Health Services website.

Prepare for Fire Season by Evaluating Your Homeowners Insurance

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The 2012 Arizona wildfire season has already started, and the U.S. Forest Service estimates that the 2012 season could be as bad as the historic 2011 fire season. The 2012 National Seasonal Assessment predicts an “above normal significant fire potential” for the mountains, with a normal significant fire potential predicted for other parts of Arizona. As of May 16, the Gladiator Fire had already destroyed four structures and threatened almost 400 more.

There are several steps homeowners can take to prevent fire damage to their property, including using fire resistant materials, providing a firebreak, and creating a defensible space around structures. If the worst does happen, homeowners also need to be sure that they are adequately insured to cover a catastrophic loss of their homes. The Insurance Information Institute lists four key questions homeowners should ask to ensure adequate coverage in case of a disaster:

    1. Is my insurance coverage enough to rebuild my home at today’s costs?

Insuring your home for its value may not be enough to rebuild your home at the price of current construction. Adequate coverage should include a replacement cost policy that will pay for the replacement of damaged property with comparable materials. Arizona homeowners might also want to consider an extended replacement policy that will pay an additional 20% above policy limits if a disaster–such as a widespread wildfire–raises the cost of materials and labor. Other options include inflation or ordinance riders which help cover the impact of inflation or new ordinances on construction costs.

    1. Is my insurance coverage enough to replace all of my possessions?

Most homeowners insurance policies cover possessions at a rate of 50-70% of the amount of insurance on the structure of the home. A home inventory is the best way to determine if this is enough coverage to replace your personal possessions if they are lost to a fire or other disaster. You can insure your personal possessions by either a cash value or replacement cost policy. Cash value policies cover the cost of replacing your property after depreciation. Replacement cost policies cover the replacement cost of your possessions at today’s prices. Your insurance agent can help you determine whether a cash or replacement policy is the best option for you.

    1. Will my insurance cover my extra expenses if my home is destroyed?

If your home is destroyed in a wildfire or other disaster, there will be additional expenses beyond replacing your home and possessions. Coverage for additional living expenses would pay for the extra cost of living away from home and includes expenses such as hotel bills and restaurant meals. It could also cover lost rental income if you rent out a portion of your property.

    1. Will my homeowners insurance adequately protect my assets?

This question isn’t directly related to disaster planning, but it is still an important factor in evaluating your homeowners insurance needs. Liability damage protects you against claims made for bodily injury or property damage caused by you, a family member, or a pet. Liability damage covers court costs as well as any costs incurred in a court judgment up to the limits of your policy. Additional coverage beyond your policy limits is available in the form of an excess liability or umbrella policy.

Wise preparation for fire season should include making sure your home is adequately insured. Your insurance agent can help you evaluate your insurance needs.

How to Head-off Potential Claims on Your Homeowners insurance policy

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Now that you’ve purchased your homeowners insurance, it’s time to think about steps you can take to prevent, or lessen, future homeowners insurance claims.

Here are some tips that might help in keeping the homeowners insurance claims adjuster away:

  • Buy enough coverage: Find out what it would cost to rebuild your house in your area. Want to keep the same look to the house? Ask a builder for an estimate on the cost to rebuild. Don’t skimp on coverage, and forget about paying that little extra for that piece of mind for insuring your home and belongings.
  • Bring on the fire department: Ask your local fire station to come by your house and do a fire safety inspection- and include your kids when they come to your house. Spotting fire hazards and fixing them will certainly pay off in the long run.
  • Insure that Picasso: Okay, maybe you don’t have a Picasso hanging in your entryway, but you might have a few, so-called luxury items like jewelry and an heirloom desk sitting in the den. Make sure you have the ‘rider’ for coverage, if needed.
  • Water… water: Everywhere. If only you would’ve changed that leaky hose on the washing machine before you left on vacation. Do a survey of your in-house connections. Sprinkler system? Make sure the automatic timer is working correctly and not ‘hanging up’ for hours on that station by your basement window. 
  • Accidents waiting to happen: Walkways and steps invite all sorts of potential for liability claims from strangers or friends coming to your property. Make sure step rails and decking are in good repair. 
  • Wind and hail: It’s not uncommon, or rare, for a major onslaught of wind and hail to hit parts of Arizona. Heed warnings by battening down patio furniture, or screen doors…and even keep tree limbs trimmed back. 

It makes good sense to review your homeowners insurance coverage with your insurance agent at least once a year.