Arizona Home Insurance

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.

 

Home Insurance Hints to Keep Burglars Away

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Summer is approaching quickly in Arizona, which means the heat is coming on strong. For you, that means it is time for a short getaway, or maybe a lengthier vacation, for some time to cool off and refresh your body from the heat. As you’re getting ready to go, you are checking your to-do list before you head out. Clothes and shoes packed? Check. Toothbrush and toothpaste? Check. Sudoku puzzles and iPad charger? Check. Things are looking good, your bags are packed and you’re ready to go.

But, wait. Did you burglar-proof your home? The last thing you need to happen while you’re gone is to have someone break into your home and damage or steal your valuables, which would lead to a home insurance claim.

Let’s rewind back to that check list and let’s add some more steps to ensure that you don’t leave home with a huge sign on your house that reads “NO ONE HOME. BURGLARS WELCOME!”

What you want is to prevent any need to file a claim with your home insurance. To allow that, below are a few helpful tips for how to fool those burglars into thinking you are actually at home.

-Keep your mail and papers away

Call your local post office and your newspaper agency. Have both your mail and newspapers held while you are gone. Having a collection of papers on the lawn or mail spilling out of the mailbox are both obvious signs that someone might not be home. If you are unable to hold your mail and papers, an alternative would be to ask a trusted neighbor to come each day and gather your papers and mail until you get home.

-Turn your lights on and off

You might be wondering how this is possible if you are not at home. It’s actually pretty easy with some simple timers in place. Attach some timers to a few lamps around your house and set them to turn on and off intermittently throughout the day and evening. If a light is on, a burglar is less likely to come lurking nearby. At the same time, though, if a light is on non-stop, a burglar might get suspicious. Don’t forget to make sure they go off as well.

-Keep your grass clean-cut

Okay, IF you have grass, keep it trimmed. There are lawn-mowing services that you can call, or you can ask a neighborhood kid to mow your lawn and keep it neat while you are out of town. An unruly, overgrown lawn can be a tip off to burglars that your home is currently uninhabited.

-Keep your windows covered

Don’t leave any option for anyone to be able to peep inside your home. Close all drapes, shades, and blinds. It doesn’t matter how well-kept your front yard is, or if your lights are going on and off all night. If anyone can just walk up to your window and look inside, they’ll figure out pretty quickly whether or not anyone is home. Before you leave for your vacation, make sure all your windows are covered.

Why take any chances while you’re gone? You should be able to relax and feel confident that you took all precautions to keep your home and your valuables safe. Hold your newspaper, hold your mail, keep your lawn clean, set some timers, cover your windows, and enjoy your vacation.

For more information call your insurance agent and sit down for a policy review..

Insurance Tips: Don’t Let Wildfires Take You by Surprise!

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Anyone who knows the difference between a “Zonie” and an “Arizonan” can tell you what May brings: the beginning of wildfire season.  As the last traces of coolness head toward the mountains and beyond, homeowners in Phoenix, Scottsdale, Mesa, Chandler  and Tucson and surrounding counties can look forward to the simple joys of burn notices, monsoons, and eventually, wildfires.

Last year, the Wallow Fire near Alpine burned more than 500,000 acres in Eastern Arizona, destroying homes and businesses, claiming the title of largest wildfire in Arizona history.  Arizona insurance adjusters were swamped with claims, and many home and business owners found out too late that they were underinsured.

Arizona Wild Fires

The reality of life in the desert is that sooner or later there are going to be fires.  According to the U.S. Seasonal Drought Outlook, drought conditions in Arizona are expected to persist or intensify through the end of July, 2012.

There are some tips to protect your home during drought seasons.  The Arizona Division of Emergency Management offers several tips to help homeowners protect their assets.

  • Housekeeping is your friend.  Old branches, dead leaves, overgrown or drying shrubbery, and clogged gutters are just a few of the hidden flash spots for wildfires.  By removing both organic and man-made debris to at least 30 feet from your home, you can create a defensible space around these structures.
  • Don’t skimp on storage.  Combustible or flammable materials need to be stored properly, in approved containers.  Also, remember to keep wooden structures like picnic tables and woodpiles a safe distance from your home.
  • Be aware of power lines.  It’s important to prune bushes around the house, removing dead leaves and branches.  But don’t forget any trees that may have branches hanging near power lines.  All it takes is one monsoon wind to turn that lovely tree into a fire trap.
  • Protect your most precious assets.  A house can be replaced.  But your family cannot be.  Always be aware of hazardous conditions, and make sure your family has a well-defined emergency procedure.  Identify more than one route to and from your home or neighborhood, and agree on a predetermined place to gather in times of disaster.

Homeowners can also use some of the following preventative measures to decrease their risk of suffering wildfire-related losses:

  • Replace roof with fire-resistant materials
  • Provide fire breaks to prevent the spread of fire
  • Provide fire roads to aid in firefighting
  • Install smoke detectors in your home
  • Teach each member of the family how to use a fire extinguisher
  • Regularly check fire extinguishers and smoke alarms to ensure they are in working order
  • Create a disaster supply kit  that includes the following items: a three-day supply of water (1 gallon per person), non-perishable food, a change of clothing, a medical kit that includes prescription medications, credit cards and important documents, personal hygiene products, extra eyeglasses, matches in a waterproof container, and a map of the area which includes important phone numbers.

Finally, ask a family member who lives outside of the area to act as your “family contact.” In times of disaster, this contact would be the go-to person to coordinate information, keep track of family members’ whereabouts, and maintain contact addresses and phone numbers.

Arizona is an amazing place to live, with abundant natural beauty.  While wildfires are to be expected, they don’t have to be devastating.  With preparation and common sense, you can protect your home and your assets from the dangers of summer.

We would also recommend that you take the time to sit down with your local insurance agent, and let him/her know your fears and get their expert opinion on any changes you should make to your home insurance policy.  If you don’t have a good relationship with your insurance agent, it’s time to find a new one!

How to Deal with Fire and Smoke Damage Part II: Insurance

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At Arizona Capital Insurance we were so pleased to hear that the Wallow fire has become a little more contained. We’ve also been happy to hear from our clients, letting us know they are alright and asking questions about their insurance.

So let’s focus on that topic today: how to deal with your insurance when you have fire and smoke damage.

First of all, we are here to help our clients. We’re going to work with you to make sure you are able to recover from this devastation as easily as possible. But, as you know, we are not your direct source of insurance. We’re an insurance broker. You will need to work with your insurance company directly to make sure you get the benefits you’re entitled to. We will help you file the claim and walk with you through the process step by step.

Here are some tips for making this a smooth, beneficial process:

-Call your insurance company now. Obviously the country is aware of the damage being done by the Wallow Fire. But, more than likely, insurance companies are not seeking out which of their clients have been affected.

Give them a call and let them know you’ve been displaced. Then, review your policy with them. Many policies will pay the expenses you’re incurring by being evacuated (subjected to your deductible). Find out what your policy covers and what the process will be for submitting your claim once you are allowed to return home. Give us a call if you would like help with this.

-Keep all receipts. Whether your policy covers your evacuation expenses or not, it’s a good idea to keep all your receipts from gas, lodging, and food. At this point, you are building a case for yourself (in case you need it) and receipts will come in handy. If you don’t have receipts, get copies of your bank statements showing your expenses.

-Document everything. From the moment you walk in your door, start taking pictures, videotaping, and writing down all the damage you notice. You may need that documentation as proof for what you should be compensated for.

-Get a restoration specialist (or 2) to come in as soon as possible. Unless you are an expert in housing and construction, you really won’t have any idea how much damage has been done to your property. Smoke and soot can get into vents, a/c units, behind walls, into the pluming, and all kinds of places you wouldn’t think to look. Nor will you be able to see the damage in these areas on your own. As the specialist comes through, they will write down their observations and give you an idea of what will need to be replaced or cleaned.

And if one specialist is good, two are better. You may need to submit more than one estimate to your insurance company.

-Write down the cost of your damaged property. Since the insurance company will be replacing your irreparable things, be sure to write down what they cost. Odds are, you will not get 100% of the purchase price for all your items, but that’s what you’ve got to build your case for. If you have receipts from recent purchases, find them and add them to your collection of documents. Pull information from your bank statements. Do your best to find evidence of what your personal property costs.

-Stay logical. Again, we will do everything in our power to assist you. But insurance companies never like to pay out on claims, so you’ve got to present them with the facts. By documenting, getting assessments, and creating a case for yourself, you are approaching this situation wisely. You’re going through a horrible tragedy, but tears are not going to sway the claims department. Knowing what you’re entitled to (because you read through your policy and we can help you) and presenting your evidence should get you a reparation check. So stay calm and don’t move, repair, or trash anything until you’ve got evidence.

I think we’ve said it twice in this post, but I think it’s worth mentioning again: we are here to assist you. It’s what we do and it’s why you come to us for your insurance needs, so reach out if you need us.

If anyone reading this post has been through fire damage before and has thoughts about how to build your case for an insurance company, please include your comments below. We hope to hear about what helped you, and what mistakes to avoid.