Arizona Home Insurance

Arizona Home Insurance: Does My Policy Cover Fallen Trees?

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Arizona Home Insurance Covers Tree on houseAs summer slowly begins turning to fall, you may be starting to notice leaves and branches dropping on your property. Have you ever wondered if your home insurance would cover you if a tree fell and caused damage to your property? What if a neighbor’s tree falls and takes out a storage shed? Is the cost of removing a fallen tree covered? Here are answers to some frequently asked questions about when your homeowners policy covers fallen trees.

  1. If a tree falls and hits my house, am I covered? Usually, yes. Most homeowners insurance policies cover damage caused by fallen trees to your home or to other insured structures such as garden sheds or detached garages. Unless you purposely cut the tree down so you have an excuse to remodel your kitchen, it typically doesn’t matter what made the tree fall. Natural causes such as wind, lightning, or ice are all normally covered.
  2. My neighbor has a big tree close to our property line that I’m concerned may fall. If my neighbor’s tree damages my home, am I still covered? Again, yes. Regardless of who owns the tree, if it damages your home you can still file a claim with your insurance company. In strong storms trees and branches can turn into projectiles that cause considerable property damage. In most of those cases, your insurance company will be concerned with the damage to your property, not where the tree came from. If a tree located on your neighbor’s property falls due to disease or lack of care, your insurance company may try to recover costs from your neighbor’s insurance company. If this happens, you may be reimbursed for your deductible.
  3. Removing a fallen tree can be expensive. Are those costs covered? If a tree damages your home or another insured structure, your insurance company will most likely cover the cost of removing the fallen tree. If the tree falls on its own and does not damage property, the cost of removing the fallen tree does not typically fall under your homeowners coverage.
  4. The couple down the street paid for some pricey landscaping and woke up one morning to find that someone had stolen several trees and bushes. Am I covered if that happens to me? Most homeowners insurance policies cover loss or damage to trees and shrubs from various causes, including fire, lightning, vandalism, and theft. Coverage for damage or loss of trees is typically limited to 5% of the amount of insurance on your home. There may also be a $500 limit for any single tree or shrub.

If you have questions about how your homeowners policy protects you against damages from fallen trees or branches, contact your insurance agent to discuss your needs and ensure you are fully covered.

Burglary Prevention Tips From Insurance Agents

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Arizona Insurance AgentsAlthough it’s comforting to know that your insurance agents are there and ready to help if something goes wrong, nobody wants to have to file an insurance claim.

Prevention is the key to avoiding most home insurance claims. Of course, you can’t control everything that happens in life, but when it comes to protecting your home from burglary, there are actually many relatively simple preventative steps that you can take.

The first, and perhaps most obvious step is to invest in security features such as a reliable alarm, deadbolt locks, window locks, and outdoor lighting with motion-sensors. Be sure to let your insurance company know if you do install any of these items, because it can mean lower premiums on your homeowners insurance.

But there are plenty of other things you can do to reduce the likelihood of a burglary. Don’t leave ladders anywhere that might be accessible to potential intruders. Secure sliding doors and windows. Always lock both your front and back doors anytime you go outside, and keep your garage doors closed. Don’t leave windows open when you’re away. Don’t leave valuables in plain sight, and if you purchase new appliances or electronics, don’t put the box out by the curb where everyone can see what shiny new item you have inside.

Take safety into consideration in your landscaping plans, as well. Make sure any bushes or shrubs near windows aren’t providing a convenient hiding spot for intruders. Trim back any tree branches that could provide access to upper-story windows. Keep in mind that any overgrown trees or shrubbery in the yard can create concealing shadows.

It’s common for homeowners to leave a spare key hidden somewhere outside in case they are locked out. But burglars will check in the more obvious places, and even if you’re a savvy key hider, it’s still possible that someone might figure out your hiding spot. Instead, give a spare key to a friend or a neighbor you trust. Speaking of neighbors, it’s worth getting to know yours. Neighbors who know each other are better able to identify strangers and more likely to look out for each others’ property and safety.

Mostly, burglars just want to get in, take your stuff, and get out. That’s why burglaries tend to occur during the day when people are at work. If you can create an illusion that someone is home, they won’t want to take the chance. Interior lights with timers can give the appearance that the home is occupied, but make sure you have window coverings to prevent anyone from seeing clearly inside.

If you’re going to be away from home for an extended period of time, then you’ll need to prepare in advance. Before going out of town, make arrangements to ensure that the lawn gets mowed or the sidewalk gets shoveled. Put a hold on mail and newspapers so they won’t pile up outside your home. Neighbors can collect any packages that are delivered, or even park their car in your driveway. You can also contact the police and notify them of the dates you will be away.

Burglary results not only in the loss of your belongings but also your peace of mind. So it’s well worth the investment of time and money to do everything you can to prevent it from happening in the first place.

Emergency Preparedness and Home Insurance

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Sometimes when people think of emergency or disaster preparedness, they think it applies to someone else. If you live in California, you have to worry about earthquakes. If you live near the Gulf Coast, you have to contend with hurricanes. People in the northern states confront snowstorms year after year.

Well, if you’re a homeowner in Arizona you have to prepare for monsoons (we have had a ton of rain this monsoon season), flooding, and dust storms. Taking steps in case of any type of emergency means being proactive, including having the right home insurance policy.

Important Records 

Just like a business, your personal papers are important to your home operation. At the Ready.gov website provided by FEMA (Federal Emergency Management Administration), they offer tips on what you need to do to prepare.

One way to plan is to have copies of all your important documents, which are then stored in a secure place. Experts suggest your secure place should be far enough away in case of widespread disaster, yet close enough for quick access.

One suggestion is to have two separate safe and secure locations for storing your papers: a safe deposit box containing items such as:

  • Birth Certificates
  • Marriage Certificates
  • Wills
  • Deeds
  • Titles to Automobiles
  • Household Inventory
  • Bonds and Stock Certificates
  • Important Contracts

In addition, you should have a secure, yet active file, containing items such as:

  • Tax Receipts
  • Unpaid Bills
  • Employment Records
  • Health Benefit Information
  • Credit Card Information
  • Insurance Policies
  • Medical Records
  • Inventory of Safe Deposit Box (and key)

Another important part of your records should be a complete, up-to-date list of emergency contacts, including name, phone numbers, and email addresses. For more information and a complete list of items to store, check out this publication on USA.com.

Emergency Kit 

An emergency kit contains basic household items you will need in the event of an emergency. Be sure to assemble it well in advance and store it safely somewhere your entire family knows about, as you may have to evacuate without much notice.

Experts recommend having enough non-perishable food and water to last at least 72 hours. In addition, you should include:

  • Battery-operated radio
  • Flashlight with extra batteries
  • First-aid kit
  • Sleeping bag or warm blanket
  • Matches
  • Fully-charged cell phone
  • Paper and pencil
  • Sturdy shoes and clothing 

For a complete checklist from FEMA, click here.

Home Insurance 

Finally, be sure you have the right home insurance in case of an emergency. In the 2012 post, “Do You Have Enough Insurance to Cover Rebuilding Costs After a Disaster?”, the Small Business Administration suggests taking steps to protect your small business. We’ve adapted them for home use:

  • Check Your Insurance Coverage. Contact your insurance agent to find out if your policy is adequate for your needs. Tailor your polity to the specific needs of an Arizona home. Remember to review and update it often. The home you bought even just five years ago could cost more to rebuild today. CBSNewswatch.com article reports, “Nearly 6 of 10 American houses are underinsured, with most insurance policies having only enough insurance to pay about 80 percent of the costs to replace or rebuild their homes, according to property data provider MSB”.
  • Ask questions. Make sure you understand your policy limits, the deductible, and what is actually covered.
  • Consider emergency riders. The U.S. Geological Survey reports that floods are the leading cause of natural disaster property losses. Most homeowners insurance policies don’t cover flood losses. Make sure to talk with your insurance agent about the types of disaster prevalent in Arizona and how to obtain coverage.
  • Take inventory. Inventory your personal items before disaster strikes. Record the price and estimated replacement cost. Keep receipts, take photos and video of your property, and store this information at a secure location.

With a little forethought and preparation, you can prepare yourself and your home for any emergency. Contact your local insurance agent to make sure you have the coverages on your policy.

Protect Your Home During a Vacation

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It’s finally vacation time and you’re excited about much needed relaxation. When you go on vacation, you want to be able to forget about the struggles at home and not have to worry about your home and your things. Here a few tips to ensure you have a safe trip without an unneeded insurance claim when you return.

Home Burglary Prevention

First, let’s talk about burglaries. To prevent your home from being broken into while you’re away, take a few precautionary measures.  If you live near neighbors you trust, consider letting them know you’ll be gone on vacation, and offering them a way to contact you in case something at your home looks suspicious. If you’re active on social media, be cautious about what you tell your online friends about your whereabouts. Sometimes we are so excited that we inadvertently give too much information about ourselves, leading would be criminals right to our door while we are away.

Keep a light on. Whether you just keep an inside light on the entire time you’re away, or you put an inside light on a timer for a more authentic feel, having a light on will deter unwanted strangers from entering your home in the evening. The more you give the appearance that you are home, the less likely a home burglar will be inclined to invade your space. In addition, consider trimming back bushes and trees, as many thieves use such items to conceal themselves from the street as they break into your home. Walk around the perimeter of your home and try to think like a criminal, if there is a ladder or box near a window, move it to make accessing your home inconvenient.

Close the shades and blinds of your home before you leave. Doing so will conceal your valuables from a stranger’s view, making “window shopping” not as easy or convenient. You don’t want to advertise to passers by that you have the latest gaming system, or that you own nice pieces of jewelry.

Have your mail and newspaper deliveries held or have them be picked up by a friend. There is nothing more obvious that you’re away than newspapers building up on the driveway and a full mailbox. You might also ask them to check your door for solicitations, asking them to remove any door hangers or advertisements they may find.  If you will be away for a long period of time, have someone mow your lawn. An unkept lawn is another sign of a homeowner who might be away. Lock all your doors, gates, and garage openings.

Now let’s talk about property damage. Spend a few minutes going around unplugging appliances that will not be in use.  In case of a storm, your appliances will be protected from power surges, and possible fires. Turn down the thermostat so the a/c or heater isn’t working constantly. This will save you money, but it will also help prevent something from going wrong while you are away, only to come home to a flooded a/c unit or a burned heating element.

If you’re going to be away for an extended amount of time, you’ll want to consider turning off the main water valve to your home, including sprinkler units, especially in the winter time when ice can break water pipes.

Remove toys and other items from your yard that might cause damage to your home, like windows or your roof, in the case of severe weather.

Taking a few moments to safeguard your home will allow you to take a vacation without worrying about what is going on with your valuables. Do the work beforehand so you can rightfully relax while you’re away!

We also recommend that you give your neighbor your insurance agent contact info. Should something happen such as water damage, you will want your agent to begin handling the claim to prevent further damage.

Dryer Check-Up: Clothes Dryer Fires Cost $35 Million a Year

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I was talking with a friend earlier this week about the issues he was having with his dryer. Because I am an insurance agent, that got me thinking about how many home insurance claims are a result of fire damage, so I did a little research. Here it is.

-Spoiler Alert! If you have kids, read this to them tonight. I promise they will be out in less than 7 minutes.

Dryer Fires in ArizonaThe latest report released by the U.S. government on fires caused by clothes dryers reveals shocking figures. It estimates that 2,900 fires are reported to U.S. fire departments annually, resulting in loss to property to the tune of approximately $35 million. Moreover, improper dryer vent setups can lead to deadly gases like carbon monoxide to remain inside the house and poison its occupants. The U.S. Fire Administration (USFA)’s National Fire Data Center studied data from the National Fire Incident Reporting System (NFIRS) collected between 2008 and 2010. They collated their findings on the characteristics of these clothes dryer fires into a report titled “Clothes Dryer Fires in Residential Buildings”. Here are some more facts and figures presented in the USFA report:

*84 percent of clothes dryer fires occurred in residential buildings.

*The number of such fire incidences in residential buildings was higher during autumn and winter, with the peak of 11 percent occurring in January.

*28 percent of the incidents reported had dust, fiber and lint as the items that caught fire fastest in the clothes dryer fires in residential buildings. This was closely followed by items of clothing that were not worn by any person, featuring in 27 percent of the cases.

*The clothes dryer fires in residential buildings which were limited to the first object that got ignited and did not spread to other items accounted for 54 percent.

*Lack of sufficient cleanliness in the dryer was the top cause of clothes dryer fires, accounting for 34 percent of the cases in residential buildings.

Why do Clothes Dryer Fires Occur?

The most common reason for these damaging fires was the negligent upkeep of the clothes dryer. Not all the lint is trapped by the filter; much of it has a tendency to collect inside the machine and worse still, directly on the heating element. If the machine is not cleaned and serviced regularly, the volume of lint builds up inside it and blocks the flow of free air. The chance of a spark getting ignited is high since lint is a very combustible material. The airflow can also be reduced by the presence of rugs backed with foam or athletic shoes in the clothes dryers.

Incorrect installation of the open end of the vent hose on the roof leads to rain water and debris clogging the vent. Sometimes, small birds and animals make their nest or bed in the exhaust vents of these dryers. This poses a severe fire hazard as well. When the clothes dryer having a blocked vent is switched on, the exhaust gases will not have an outlet to escape. This can lead to overheating, which in turn can trigger a fire. Vents that are made of plastic tend to be flimsy; they can get easily crushed, thereby blocking the exit for the lint and air. These materials might even be flammable.

How can Clothes Dryer Fires be Prevented?

Due to the extremely high number of such fires in recent time, the USFA is attempting to spread mass awareness about the proper use of clothes dryers. While faulty appliances are the cause in some cases, users can prevent a fire most of the time through proper precautions, usage and maintenance of their clothes dryers and dryer vents.

*Installation and Setup of the Dryer Vent:

While clothes dryers were kept in the basement in the past, they are now being placed in other areas of the house, such as bathrooms and bedrooms which are quite a distance away from an outside wall. This means the dryer vent is much longer and possibly has more bends to accommodate the structure of the house. Lint tends to collect more in these longer vents and boosts the chances of a clothes dryer fire in the house. People should give careful consideration to this fact while getting their dryers installed. Keeping the dryer vent hose as short and straight as possible is a great preventive measure for such fires.

*Cleaning of Lint from the Clothes Dryer:

Vacuum cleaners and other gadgets are available to remove the lint that accumulates inside the dryer. These should ideally be used after each run of the dryer. The vent hose of the clothes dryer also needs to be replaced periodically, since the warm air coming into this relatively cooler tube causes condensation that encourages lint to line up along its interior.

*Servicing an Abnormally Working Dryer:

If the clothes take much longer to dry than usual or if they get over-heated, it is an indication that the clothes dryer needs maintenance and/or repair. This not only minimizes the chance of a fire within residential buildings, it also boosts the efficiency of the clothes dryer and gives it an extended life.

Some of the tips for safe usage of clothes dryers are plain common sense, like switching the clothes dryer off before leaving the house and when sleeping. The smoke detector alarm should be checked to see if it is in proper working condition. The instruction manual should be read thoroughly before use. The safest alternative is to hang washed clothes on the clothesline to dry. The extra wrinkles and creases can be dealt with using a good steam iron.

Some Tips BEFORE the Disaster Hits

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Hello homeowners, we are homeowners insurance with offices located in Mesa, Gilbert, Tucson and Phoenix. We want to pass along some advice for you regarding your homes and homeowners insurance that you should be looking at today! Start with your TTD – THINGS TO DO list.

With all the devastation in our surrounding states from forest fires, we’d like to bring you some advice.

Before the fire or disaster strikes, do this, like, right NOW:

A)    Plan ahead. If family members are away from home, arrange ahead of time a DCP – designated convenient place to meet away from your home or the possible disaster in your area. Pick a gas station, convenience store, grocery store, maybe a mall, or a school, somewhere YOU all know EXACTLY where to go to meet up, this is your DCP and #2 on your TTD list. Keep in mind, family members must be prepared for this as well, regardless of where you are, you may not be able to get back to your home, you may have to depend on a son or daughter who is at home to do this, so run down the list of TTD with them beforehand, walk thru it once or twice a year. Update it as you need to.

B)    Plan ahead. Tell ALL family members where you will be planning to go, pick a motel or hotel 20 miles away, write down their phone number on your TTD list, plan on calling them for a reservation when the evacuation order comes. MAKE it number 3 on your TTD. Next, pick an alternate motel or hotel that is 30 miles away, write down that phone number on your TTD list, if you cannot get a reservation at No. 3, this is your number 4 – TTD, your contingency plan, communicate this with ALL family members! Put this TTD LIST of Things To Do and let your entire family know where it is, or better yet, give a copy to your neighbors and your closest family members.

C)    Have you got a pet (or pets)? Make sure you have a weeks supply of food for each pet set aside. Put this food and where it’s stored on your list of TTD as #5.

D)    As you make your TTD List, keep in mind how much space your vehicle has, will it (whatever IT is that you are wanting to take with you) fit with everything else on the list?  Keep this in mind when you organize your TTD. Be prepared to leave sentimental objects behind, you will NOT have time to dwell on it later.

E)    INVENTORY – Take a pad of paper and walk through your home and write down everything you have, include taking picture,s which are also helpful.  Download your pictures to a flash drive for convenience, but either have a flash drive OR get actual pictures and assemble them all together (pictures should include all room furniture, unique items, grandfather clocks, fine art, jewelry, electronics, heirloom items, irreplaceable items, and collectibles). Put this inventory paper in a safe place, ready to go. Include this INVENTORY on your TTD list.

F)    BUNDLE – collect the most important papers and keep them in a safe and secure location that you can easily open, grab the bundle, and go. This should include: your family’s birth certificates, social security cards, passports, insurance papers, car titles, and all photos taken of your home possessions and valuables, either the actual prints OR the flash drive that has the pictures. Include this BUNDLE of paperwork on your TTD list.

G)    Make a list of irreplaceable family pictures that you do not want to lose, this should be a picture checklist, and when you are told to evacuate, grab this checklist and gather up ONLY what you have written down beforehand, you will NOT have time to get sidetracked once the evacuation order comes! Include this on your TTD list.

When ordered to evacuate, keep your time in mind, hurry, but be organized (be aware, it’s possible you may NOT have 30 minutes, maybe 10 or  or even less!):

A)    TTD #1 – Get your family and pets in the car.

B)    TTD #2 – Contact immediate family members and tell them to muster at the pre-designated meeting place, you are evacuating.  KISS – keep it short and simple. This is your No.2 TTD item. Do NOT plan on having family or friends come to your home once the evacuation order is placed, all roads lead OUT and to safety.

C)    Proceed with your TTD list of THINGS TO DO.

D)   Focus on driving safely. Get to your motel/hotel safely.

E)    RECEIPTS – Typically your homeowners insurance policy will cover reasonable expenses for room and meals. Save your receipts if you are told to evacuate your home by emergency personnel. Most policies cover this but have daily limits.

F)    Once you have reached your safe hotel/motel, THEN contact family & friends and inform them of same.

If you need help accessing your homeowners policy for disasters and the like, we’re here. Contact your insurance agent before you actually need us. Our advice is free. Bring your inventory list with you.

Protecting Against Roof Repair Scams

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It is that time of year again… Monsoon Season!

photo from boomerinthepew.com

During Monsoon Season, homeowners experience the beauty and splendor of the Arizona terrain. Flowers are in bloom thanks to more rainfall, hail and the beauty of our sunsets is magnified. It is the time of year when the animals come out in force- more than any other time of the year. Everything is radiant, until one morning when you look up and see what you have been dreading since the rains first started. Nightmares of that last hail storm begin flooding your dreams: roof damage. This damage is of course, not always delivered in the form of hail. Tree branches and high winds can add damage to already aging roofs and deteriorate living conditions and affect the costs of utilities over time if repair is stalled for too long.

An even bigger hazard to your health, your roof, your wallet AND you standing with your insurance are roof repair scams. Everyone has heard the horror stories of scam artists who took their victim’s insurance money and disappeared into thin air, leaving behind unfinished work or not showing up to do work at all. We have found through the years of taking calls from clients that not all roofing contractors are the same.

Here are a few tips to help protect you from roof repair scams:

–Take the time to shop around: There is no shame in getting multiple quotes from different roofing companies. Go for it! In addition, your insurance agent may even be able to provide a list of roofing companies or refer you to roofing contractors that are located in your area. But you will never know if you don’t ask.

–Don’t find yourself in high pressure situations: If a salesman is trying to pressure you or if something just doesn’t feel right about it- listen to your gut instincts. A good roofing contractor will work with you in order to get your business, not pressure you into a contract.

–Research all roofing companies that you are considering: Before you begin deciding which roofing company you want to use, make sure that they are a legitimate business with a license to do home repair work in Arizona. The presence of a contractor’s license is very important as it can help to identify whether or not the company is a legitimate business. You can look up license numbers and get more information at the Arizona Contractor License Center.

In addition to the above website, you can also refer to websites such as the Better Business Bureau (www.bbb.org) or websites such as Angie’s List (www.angieslist.com), which can aid you through reviews written by previous customers (however, you should always take these reviews with a grain of salt).

-Don’t be afraid to ask questions: This is your roof. It is something that will be hanging over your head (literally), for quite some time. Asking questions is not a bad thing. Often times, a good company will encourage asking questions.

–NEVER pay prior to repairs: One staple of being scammed is that the salesman will want the money before the work is started. So don’t give the full amount until the work is complete. Some roofing companies do require money before hand, but a legitimate contractor or roofing company shouldn’t ask for the full amount prior to completing the project.

Storm Damage:

If you do have storm damage and you have extensive water damage in your home, you should call a water damage repair contractor. Many times you will have a tree that has fallen and you need a tree removal company.

For more tips and articles regarding insurance, please visit: Arizona Capital 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.