Dennis Volz

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Low Claim Settlement Offer - What to do about it.

03-13-08

Spring Valley Auto Insurance Quote, Renters Insurance Quote, Homeowners Insurance Quote

Whenever your vehicle has been declared a total loss, the insurance company will offer you a settlement based on the fair market value of your vehicle. (this works for cars, motorcycles, RV's, boats, etc.)

In the realm of United States tax law, the definition of "fair market value" is found in the United States Supreme Court decision in the Cartwright case:

The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts. United States v. Cartwright, 411 U. S. 546.

So you get offered some money for your vehicle. They give you a number. Sometimes you'll like the number... sometimes you won't.

Here's what to do when you don't.

First of all, you should always have a number in mind when you begin to enter the final phase of the claim.. That requires that you do a little research on your own. Please keep this important truth in mind as you do.

MOST PEOPLE OVERESTIMATE THE REAL VALUE OF THEIR VEHICLE.

I know that YOU wouldn't do that, but some do. Just think about if for a second: Most people list their vehicles at a given price either in the paper or Auto Trader and then end up settling for less than that when they actually sell.

Remember: The price that the vehicle actually sells for is the FAIR MARKET VALUE of the vehicle.

Ok, so with that in mind, let's get about finding the FAIR MARKET VALUE of your vehicle. Here's your BEST sources.

Call ads in the newspaper for vehicles that are as close to yours as possible. Hope to find people who have already sold the vehicles. WHY? Well because you quickly explain your situation and ask them if they would mind telling you the price for which the vehicle ACTUALLY sold. Might be more or less than the advertised price. Make a record of the ad, the phone number and the ACTUAL PRICE. Get as many of these as you can.
Call a local used car dealership and explain your situation and ask for their help. Be willing to go see them. REMEMBER, you're in the market for a new car if yours has been totaled. Ask them help you determine the value of you car by looking in their records to see what similar models of theirs had sold for.
BE SURE the insurance company has the right specifications on your car. If you had leather seats and power EVERYTHING, make sure they have that noted in the file. (more on this later.)

So once you have a number in mind, you're ready to begin discussions with your insurance company. We'll get to that in a minute.... (and let me remind you here that I'm an agent not an adjuster, but I've worked with adjusters for over 30 years and I know how they think and what they need to write you that check...)

Here's a couple of things that are IMPORTANT to keep in mind as you proceed.

The claim adjuster is a hard workin' person just like you are. They're given MANY files a week to work through. I've seen it as high as 75!
They want to get this file off their desk as much as you want to get your money.
Most likely they DON'T REALLY CARE HOW MUCH THEY GIVE YOU FOR YOUR CAR! Yes, that's probably true. It's not their money. BUT... They have to justify in the file the amount they give you. If you can give them good justification for the value that you want, they are happy to write the check and get on the the next file.
If you become their ally in this effort, you'll get a much easier and (likely) more profitable settlement.
Insurance companies usually use an outside vendor to determine the value of the vehicle. (remember we talked about having your car accurately described to the insurance company....Leather Seats, etc???) The insurance company simply forwards that information to this vendor who researches SOLD VEHICLES in your area to determine the FAIR MARKET VALUE. It's usually NOT the adjuster who crunches the numbers..... he's just the messenger.

OK, now...back to the settlement.

ALWAYS have your acceptable number in mind before you call and ALWAYS let them make the first offer. You might be thinking $5,500 and they offer you $5,800. If that happens, simply say, "That sounds reasonable to me, can you mail the check today or would tomorrow be easier for you."

Have your documentation at the ready. You've done your research so you're ready. If the number is too low DON'T come unhinged. Ask them how they got the number and let them explain. Listen calmy and patiently without interrupting. Remember.....he wants settle and get rid of this file as much as you do.

Offer your documentation to help him justify paying a higher amount to you. Use phrases like, "Can I get a copy of this to you to help you with the file?" or "Would it help if I gave you some documented sales that were several hundred dollars above your offer?"

Calm... Collected and in control because you are. You don't have to settle until you're completely satisfied that you're getting fair market value.

If you don't have enough documentation, you'll have to go out and get some more. The more examples you can find, the better settlement you'll get for your vehicle.

Remember it's a process, not necessarily a one-time phone call. Take your time and win a friend along the way.

It's a Good Life !

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7 Things you need to know BEFORE you Buy Life Insurance (PART 1)

03-03-08

Spring Valley Auto Insurance Quote, Renters Insurance Quote, Homeowners Insurance Quote

The delivery of TAX-FREE LIFE INSURANCE proceeds is one of the most powerful social and economic forces in our country. What a shame that so many people don’t understand or appreciate its value.

As you carefully read this post, you’ll be better able to make wise and forward-thinking decisions regarding your LIFE INSURANCE.

By far and without exception, a life insurance claim is the most sobering and rewarding aspect of my profession as an insurance agent.
Sobering in that it reminds me of the brevity of this life and the certainty that it will end for all of us… eventually.
Rewarding because it’s an opportunity for me to deliver: A stay-at-home mother to children and the promise of a quality education for them, a paid-for house and a debt-free existence to the family, or a comfortable retirement for a weary widow.

It’s ONLY with the incredible power of LIFE INSURANCE that these are possible. When it comes time for you to consider this valuable cornerstone to your financial plan, you’ll want to make some very informed and calculated decisions.

Let me walk you thru some of them to help you make the ones that are best for you.
If you’ve read any of our other reports, you’ll know that even though insurance has been part of our culture for over 100 years, to most people – It’s still a just a mystery. And because they don’t understand it, a lot of people think they’re being “ripped off” by the Insurance Industry; aka “The Club”

I want to end that for you.

I'm an industry "insider": A licensed member of “The Club”
I’ve been inside the insurance business for over 25 years and I know it like the back of my hand: From policy to claims and back again.
I've sold insurance. I've bought Insurance.
I've studied it and I've learned that there's "good insurance" -- and there's "not-so-good insurance".
All insurance is "created equal".
Let’s take a quick trip with your imagination.

Picture yourself gone. Yes, I mean GONE, gone! Kind of morbid, I know. So if it makes it easier, go ahead and picture your exit as some grand, heroic or adventurous one. Maybe you went out skydiving or chasing wild horses in Wyoming. Or possibly you saved some kids from drowning when a school bus plunged into the lake. Either way… you’re gone.

Now -- Just ask yourself a few of simple questions.

Are there some bills left to pay? Funeral? Credit cards? Maybe a car? Or possibly a gambling tab out at Viejas Casino?

Is someone going to suffer without your income?

Is there anything to which you’d like to leave a legacy? Possibly you’d like to start a scholarship fund for some special group or just kids who need it. Maybe you’d like to have a small part of funding Meals-on-Wheels or grant some wishes come true through Make A Wish Foundation. Or maybe you’d like to leave something for your church. The possibilities are really endless.

If you answered yes or will be answering yes to any of those in your future, then LIFE INSURANCE is something you should seriously consider.

LIFE INSURANCE IS USUALLY THE LEAST EXPENSIVE WAY TO PAY FOR ANY OF THE ABOVE ITEMS.

“How is that possible?” you ask.

Life insurance dollars come to your beneficiaries costing just pennies on the dollar. Here's how it works... Dollars you earn and have put into savings, on the other hand, cost MORE THAN A DOLLAR for every dollar you receive. You work; you get taxes taken out of your pay. Every dollar you spend really costs you about $1.27 to get after you’ve paid the tax man. Life insurance, on the other hand, is ALWAYS delivered for just a fraction of a dollar! You may pay $500 per year for $100,000 of insurance. You may have it for 25 years before you die. $500 x 25 years is only $12,500, yet the policy will pay $100.000. You've paid only 12.5 cents for every dollar of benefit.

I think I know what you’re thinking about this point.
You’re thinking of all the hassle it is to decide what kind and how much and then complete the application and then to get the physical (often you DON’T need one) and then on and on and on…

I know how you can quickly get past all that…
In reality, it only takes about an hour. You can just skim this report to get an overview of what you need to be thinking about and then if you’d like…JUST CALL ME.
I’ll likely take about 10 minutes of your time on the phone to see where you’re at and then, if you’re ready, we’ll set a time to get together. If you just want the information for future reference, that's fine too. It’s really pretty simple and I’LL DO MOST OF THE WORK FOR YOU.

After all… It’s what I do.

So let’s just hop right into it….

7 Things you need to know BEFORE you buy LIFE INSURANCE

--------------------------------------------

Life Insurance Need-to-Know #1
Don’t buy it unless you need it

The truth is that nearly everybody could probably use a little Life Insurance. Remember the questions we asked above? If you answered yes to any of those or you’d just like to make your exit a little easier on those who are left to sort out the pieces and arrange your funeral and wake, you’re probably a good candidate for at least a little policy.
If you buy the right kind of policy, you’ll build up cash values within the policy and in many cases you’ll build more than the premiums you’ve paid. So if you’re thinking you might need some life insurance, go ahead and get a small policy that builds cash for you and you’ll be on your way.

Sometimes, people just don’t need or want any life insurance. You might be single with no debt and sufficient money in the bank to take care of ALL of your final expenses such as funeral cost, paying off all your debt, enough money to pay for the disposal of all your personal property, etc, etc. If you are, and you just don’t want any life insurance and think that you’ll never need it, then don’t buy it.

But....

If you think you might need it in the future you might want to get a small, cash value policy with a GUARANTEED INSURABILITY OPTION. (means you can buy more later, but you don't have to...)

Life Insurance Need-to-Know #2
If you’re going to buy it, buy the right amount

We could make this portion of this report very lengthy, but I’ll give you a couple of simple options.

First is just the REPLACE MY INCOME estimate. Use the one-step chart below and there’s your answer.

Table 1-Income Replacement

First Column: Annual income to be replaced. Top Row: Years of replacement income required. Table Body: Lump sum life insurance required. Assumptions: Annual inflation rate assumed to be 4.0%; Annual investment return assumed to be 6.0%.

It’s just as easy to buy too much life insurance as it is to buy too little. You want to be sure you have the right amount of coverage.

You should also consider life insurance on your spouse or any other person on whose income you depend to make ends meet each month.

If you’re married with children you should also consider if there additional expenses should you and your spouse die at the same time or within a short time of each other. For example, you might want to provide additional monthly income to whomever you have designated to finish raising your children for you.

This short form can enable you to get a little more specific if you’d like to. It might give you’re a better idea of how much you’ll need.

1. Would you like to pay off your mortgage or have money available to pay the rent? If so, either enter the mortgage amount or your Annual Rent Cost times the Number of Years)You’d like to Provide. (Rent x Years = TOTAL)
$ __________________________

2. How much do you want available to pay off any other debts like credit card balances, car loans, student loans, personal loans, etc.?
$ __________________________

3. How much of your annual income will your family need each year after your death? (Remember if you paid off the house above or provided rent money, you won’t need to include that in their annual needs.) Use the INCOME REPLACEMENT TABLE above.
$ __________________________

4. How much do you want to set aside to pay your funeral costs? You may also want to complete this calculator for your spouse to see if they have a need for life insurance.

$ __________________________

5. How much do you want to set aside for any other needs such as an emergency fund, gifts to charity, or a family member with special needs?
$ __________________________

6. How much do you want to provide for your children's education if you die?
$ __________________________
7. TOTAL NEEDS: (add 1-6 above) $ ____________________

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-------------------------------------------

A. How much life insurance (individual and group) do you have now?
$ __________________________

B. What other assets (such as savings accounts, CDs, mutual funds,
stocks, bonds, 401k, retirement plans, or pension plans) would you
want your family to use to meet these needs?
$ __________________________

C. TOTAL RESOURCES: (add A & B above)
$ __________________________

TOTAL Need for LIFE INSURANCE: (Subtract Line C from Line 7)
$ __________________________

You may also want to complete this calculator for your spouse to see if they have a need for life insurance.

Can I give you a little hint?
If you’re married, let your spouse decide how much life insurance to get on YOUR life -- And vice-versa. Whoever will be around to fix the problems should get to decide how much $ will
be available.

As you fill in the amounts, keep in mind the people that will be dealing with these issues. Do what’s best for them and you’ll be on the right track.

Life Insurance Need-to-Know #3
If you need it, then buy it, AND BUY THE RIGHT KIND

A SIMPLE EXPLANATION OF THE DIFFERENCE BETWEEN TERM AND CASH VALUE INSURANCE Probably one of the best analogies I’ve heard and have used for most of my 25+ years as an agent is this: Cash Value (aka: Permanent, Whole Life, Universal) life insurance is like owning a house. Term life insurance is like renting. When you own a house, initially you will pay a little more each month than you would if you were renting. Yet, in the long run, with the appreciation of the value of your home, you’ll likely make more money than it costs you to live there. Your monthly house payments are really contributing toward your own wealth. It’s like mailing money ahead to YOURSELF! When you rent, you pay less each month but you’re not building any equity or cash value and when you leave, you just leave all that rent money sitting in the landlords bank account. Your monthly rent ends up contributing to your landlord’s wealth instead of your own.

Face it! Odds are you’re going to live a long, happy and healthy life and your family WON’T need this policy. So buy the kind of life insurance where you get some or all of your money BACK when you’re older.

“Cash Value” or “Permanent” life insurance policies are tremendously powerful financial instruments. BUT…they’re designed for insurance that you’ll need to keep for all of your life.

You’ll probably want a little permanent life insurance in your plan because you will SURELY make a claim on it someday. Hopefully it will be when you’re VERY old & wrinkled and your need for life insurance is at a minimum: Just enough to pay off a few bills and cover your funeral expenses.

Realistically, TERM insurance is usually a better choice for those needs you may have now, but will not have forever.

So here’s a couple of help questions for you:

Do I want some life insurance in force when I die? (probably yes)
What’s my best guess of when that will be? (let’s say you guess 78)
How much do I want in place at that time?

Whatever your answer is for question 3, THAT’S how much permanent insurance you should have. Consider term insurance to fill the rest of your needs.If you’re currently one of the bread-winners in your household and there are people depending on your income for everything from food to tuition, then you probably need a pretty big chunk of life insurance – For NOW at least. You likely won’t need that much for the long term. THAT’S where TERM insurance is likely your best bet.

Get some permanent insurance for the long haul; maybe $25,000 - $100,000. Usually you won’t need more than that. Get TERM INSURANCE for the temporary times in your life that you need more. Then DROP IT! No loss.

And here’s the real rub! TERM insurance is usually only renewable to a certain age and even then it gets VERY expensive. When you’re 70 or so (and your income is less because you’ve retired) your term insurance could be too expensive to keep and you may still want or need some life insurance. With permanent insurance, there’s usually enough cash value there so that you can just QUIT PAYING and be insured for life.

We're going to take a little break and let you digest all of what you've read here. PART 2 has the other 4 of the 7 Things You Need To Know BEFORE Your Buy Life Insurance.

Click on to PART 2 whenever you're ready.....

till then, I'm at your service... :)

It's a Good Life !

My 'Other Blogs'

This post contains only a general description of coverages and is not your insurance contract. Details of coverage or limits can vary. All coverages are determined by the terms, provisions, exclusions and conditions of your policy along with any endorsements.

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7 Things You Need To Know BEFORE You Buy Life Insurance (PART 2)

03-03-08

Spring Valley Auto Insurance Quote, Renters Insurance Quote, Homeowners Insurance Quote

In PART 1 we had a brief introduction to the 7 Things You Need To Know BEFORE You Buy Life Insurance. Here's the REST OF THE STORY.....

Review PART 1 if you'd like before moving on here...

Life Insurance Need-to-Know #4
Once you buy it – KEEP IT until your reason for buying it no longer exists

Too many times I’ve seen people buy life insurance: Either term or permanent and then, for some reason, let it drop. Usually it’s for one of a couple of reasons.
They initially got in a little over their heads with too big of a monthly premium and it’s finally caught up to them.
They didn’t buy for the right reasons.

Make a commitment when you get your life insurance to make it comfortable on your budget so you can keep it with no financial pressure. And commit to keep it until the reasons for purchase no longer exist.

For example, if one of your reasons is to ensure that your kids complete college, and then keep it until they’ve all walked across that stage and received their diploma. (Or at least until you’ve made that last tuition payment.)

If you don’t buy this way, you’ll just be wasting your money if you keep the policy for several months and then quit.

Here in the Dennis Volz Agency, we want you to be comfortable with your insurance.
We’ll explain your LIFE INSURANCE options in simple, everyday language that you can understand.
We strive to personalize every insurance policy to be sure you have exactly what you need and want.
NOTHING MORE; NOTHING LESS

Life Insurance Need-to-Know #5
Let Uncle Sam help you pay your premiums

When you purchase permanent life insurance, the money accumulates tax-deferred. You end up saving even more because the accumulation is tax favored. This could make you think that even the Federal Government thinks that life insurance is a good idea!

Life Insurance Need-to-Know #6
Don’t touch the Nest Egg

Money that you contribute to you permanent life insurance can build a significant amount of cash over time. This money is available to you. Let me encourage you that as those numbers start to grow, LEAVE IT ALONE!

Here’s a good rule of thumb to govern your dipping into the nest egg.

NEVER TOUCH THE NEST EGG EXCEPT FOR AN EXTREME EMERGENCY OR A PHENOMENAL OPPORTUNITY.

No, a year-end sale on a Corvette doesn’t count as a PHENOMENAL OPPORTUNITY! Nice try !

Life Insurance Need-to-Know #7
Review, review, review… But only once a year or so

Every year that you’re living with either too much insurance, the wrong kind of insurance or not enough, you’re probably wasting some money.

A simple review that can take as little as 10-15 minutes over the phone with your agent can prevent this. Sometimes changes in your life can be so much and so harried that you don’t even realize when things affect your needs for life insurance. An agent who’s willing to spend the time required with you and asking the right questions can uncover these changes and often save you hundreds of dollars in the process.

A FEW RANDOM QUESTIONS...

What about my GROUP insurance at work?
Group insurance is probably the LEAST EXPENSIVE of all life insurance policies. Sometimes it’s even FREE! (Well, paid for by your employer anyway) My advice is TAKE IT! But don’t depend on it. Count it as just a little extra, but in addition,
Have your own plan that YOU CONTROL.
Group insurance can come and go. The company can “change the deal.” You could change jobs and be with out coverage for a time. Maybe the new job doesn’t offer group life insurance.
I’ve seen people become uninsurable for health reasons, change jobs and then they’re unable to replace their group insurance. Keep your life insurance under your control not your employer’s or other circumstances beyond your control.

Can Life Insurance double as my RETIREMENT?
Permanent insurance should NEVER be a substitute for a good retirement plan. Any agent that tells you to dump hundreds of dollars a month into a permanent life insurance plan to fund your retirement before you’ve established a good, regular investment program outside of life insurance for your retirement should be questioned.

The permanent portion of your life insurance does give you flexibility in your retirement years. You can keep the insurance, sometimes stop paying the premiums (and continue to be insured), draw on some of the cash value if you need to and a host of other options. But life insurance should never be your main vehicle to retirement planning.

A word about beneficiaries…
The beneficiary is the person who receives the proceeds of a life insurance policy at the death of the insured. Carefully structure and word your beneficiary clause. You can cause big problems if you’re thinking one thing and actually say something else in the beneficiary section of the policy.

Carefully discuss this with your agent. Something as simple as a Per Stirpes clause can save a lot of confusion.

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So how do I know just how much I can afford to spend on my life insurance?

Well we have some suggestions for that for you too. The trick is to know how much you’re spending and where you’re spending it. You can’t know that unless you have a written budget. It’s really the most important key to effective money management. We have some help for you there too. Making a budget isn’t as difficult as you might think. We’ve actually broken it down to 7 simple steps that anyone can follow. If you’ve been frustrated with your money get your FREE COPY: 7 SIMPLE STEPS Make a budget and STICK TO IT ! just click the link above or give me a call 619-670-1000 or drop me an email
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What about Life Insurance on my kids?
Getting a small policy on kids is usually a great idea. While kids generally don’t need insurance for financial reasons it does a couple of things for them.

First it protects their insurability. Kids can sometimes develop physical problems that make them uninsurable. Doesn’t happen very often, but it’s probably a good idea to get them a nominal permanent policy.
Second, it locks in a nice low monthly premium for them. Life insurance rates on kids are phenomenal. The monthly premium on just a small $25,000 policy on a 30 year old is nearly DOUBLE what it is on a 2 year old. And that premium is good for life!

You’ll always want to get what’s called the GUARANTEED INSURABILITY OPTION. (Look back to the yellow insert )

Why should I buy Life Insurance when I'm young?

Life insurance is cheaper when you’re younger. On the permanent portion of your insurance plan, the longer you put your money to work for you, the better the result!
When you’re young, you’re insurable. When you’re older; maybe you’re not. We’re all just one doctor visit away from NOT being able to buy life insurance. If you’re diagnosed with even a minor ailment the cost of your life insurance can go up dramatically and in some cases, you won’t be able to buy it at all.

Other questions I could answer (but I won't here...)

Is it ultimately cheaper to pay annually or monthly?
How can I be sure that my life insurance company is safe?
What are ‘Banded Premiums” and how can they save me money?
What about Accidental Death and Dismemberment Riders? Should I have one?
Should I own my own policy or should my spouse?
Can I buy insurance on my business partner?
Is the Non-Tobacco rate really THAT MUCH BETTER?
What’s the difference between dividends and cash value?
What’s a “contestable clause” and how could it hurt me if I don’t understand it?
What are PAID UP ADDITIONS and how can they increase my insurance coverage?

Really.. I could really fill a book.
That’s why you really need a committed agent to do all this thinking with you.
After all… You probably have better things to do.

If you're in or near San Diego County, I'd be happy to help. If you're not, find a good, knowledgeable agent in your area. Take your time... it's an important decision.

When it comes to buying life insurance, you should always deal with a LARGE, WELL-KNOWN, REPUTABLE INSURANCE COMPANY. One easy rule is that if you haven’t heard of them, be suspect. I guarantee you’ve heard of ours – we’ve been at it for over 75 years! Today we have over 7 million life and annuity policies in force. Since 1929 we have been protecting American families one policy at a time. Just go to www.DennisVolz.com . (don't worry, this window will stay right here...)

WOW! Kind of impressive!

I think so.

And it’s ALL included at no additional premium...

We offer NATIONWIDE AND 24 HOUR CUSTOMER SERVICE. That’s right -- Doesn’t matter if it’s a claim or a question. You simply call my office number, 619-670-1000 and you’ll have access to our 24 Hour Customer Response Team and/or to my personal cell phone.
Should you need insurance help while away from home, we have over 1000 claim offices and over 16,000 agent offices across the United States and Canada all committed to giving you friendly, efficient home-town service (even if you’re from California ! )

This is so simple and easy to do.

You’ve got everything to gain and NOTHING to lose.
I look forward to talking with you soon!

It's a Good Life !

My 'Other Blogs'

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Homeowners Insurance - EVERYTHING you need to know....(Almost)--Part 1

03-01-08

Your home is likely your single largest investment. Protecting it properly is critical to your financial security. If you’ve only been guessing until now, then guess no longer.

Insurance for your home need not be a shot in the dark. There are
simple ways to determine EXACTLY how much insurance you should have.

Even though insurance has been part of our culture for over 100 years, to most people – It’s still a just a mystery. And because they don’t understand it, a lot of people think they’re being “ripped off” by the Insurance Industry; aka “The Club”

I want to end that for you.

I'm an industry "insider": A licensed member of “The Club”
I’ve been inside the insurance business for over 25 years and I know it like the back of my hand: From policy to claims and back again.
I've sold insurance.
I've studied it.
I've discovered what makes "good insurance" -- and what makes "bad insurance".

I know that not all insurance is "created equal".

If you’re not properly insuring your home you could be either wasting needless premium money on excess coverage or you could be setting yourself up for a severely UNDERINSURED loss that could cost you tens of THOUSANDS of dollars or even MORE!

I’ve been around the insurance business for a long time and I’ve seen it all.

I’ve seen people standing next to smoldering ashes that just hours before was their home and everything they own.
I’ve comforted those who have just received a 50-page lawsuit because their sprinkler flooded their neighbor’s yard or their dog bit a friend’s child.
I’ve reassured clients that they have coverage after their toilet flooded their house over an entire 3-day weekend.
I’ve seen clean-up bills for just water damage in excess of $100,000.

And I’ve been able to pay all these losses for these very frightened people because we made sure that their insurance was right for them – That it would be there to “write the check” should these shattering losses happen to them!

Homeowners insurance, when purchased properly, can give you the security of continuing life as you know it in the event of a catastrophic casualty or liability loss.

Homeowners insurance is POWERFUL and very comprehensive in the scope of coverage it offers.

Here’s a little overview….

It protects your home
It protects your stuff at home
It protects your stuff on vacation
It protects your stuff in the USA
It protects stuff you may have in a storage facility
It protects your stuff all over the world !
Yes, that’s right… you lose your stuff ANYWHERE on the planet…you’re covered just as you are in your own backyard.
It protects your CHECKS & CREDIT CARDS if they’re stolen
It gives you Liability protection....that’s when you get sued
It gives you protection for stuff you’d never imagine.
Here’s just a few examples
- Money, Bank Notes, Coins (including collections) up to $200
- Property used or intended to be used in business
- - On premises up to $1,000
- - Off premises up to $250
- Watercraft and equipment up to $1,000
- Securities, Checks, Traveler’s Checks up to $1,000
- Trailers (not used with watercraft) up to $1,000· Stamps, trading cards, comic books (including collections) up to $2,500
Theft loss of:
- Jewelry and Furs up to $1,000
- Firearms up to $2,500
- Silverware and Goldware up to $2,500
- Rugs, tapestry, wall hangings
- - Per Item up to $5,000
- - Aggregate up to $10,000
Home Computers up to $5,000

WOW, you say!
That’s quite a list.
Yes it is…and there’s MORE…
Yes, there’s a LOT more…
But before we get to that … the WHAT and HOW TO BUY Homeowners Insurance,
let’s talk about the WHY!!
Why would anyone need or want Homeowners Insurance?

Well, in most cases you’re required to have it by your lender. Now you could get just about ay old insurance company to insure your home to satisfy your lender. But…

Here’s a question for you…
WHY would you want to trust your biggest investment to
just any old insurance company ?
And hopefully your answers is…
“I don’t,”

You’re sitting outside on a cool October night. You have a warm, wool blanket wrapped around you and around you is the sound of people working, cleaning, the hum of a diesel engine. The blanket was given to you by a firefighter, the people working are firefighters , and the hum of the diesel engine is the fire truck that’s just dumped 30,000 gallons of water on your, now black and flattened residence.

You’re just a little freaked out but you’re ok. So is everyone else who was in the house with you. All that is ok, but EVERYTHING YOU OWN is toasted to a crispy black residue that’s still smoldering from the heat of the fire. It’s all gone: your home, your garage, your favorite chair, your entire wardrobe, big-screen television AND THE REMOTE (now I’m starting to sweat), stereo system, all the dishes in your kitchen, furniture, bed linins, towels, silverware, blender, your Xbox, your digital camera and last, but not least…. your treasured iPod

You see, here’s the problem with all those ASSETS…. You probably saved over a long periof of time to purchase your house. You bought your stuff just a little at a time. You know, a CD here, a blender there, a couple of jackets somewhere else. Then, before you know it, it’s all there cluttering up your drawers, your closet and every other space in your place.
Would you buy scuba or skydiving equipment from “Jimmy’s Discount Dangerous Sport Second-Hand Equipment Store?” Of course you wouldn’t. You wouldn’t trust your life to used, junk equipment.

You also wouldn’t buy it without thoroughly understanding how it works and making sure it would work to your specifications and your individual needs.
Properly structured Homeowners Insurance provides protection for your house, your personal property,
AND Protection in case of a liability lawsuit.

“WHAT?!?!” you say. “Lawsuit ! !”
Yep, lawsuit. Could it happen to you? The answer is…
Of course it could ! !

But we’ll talk about that in a minute. So….

Let’s talk about the nitty-gritty of Homeowners Insurance. There’s certainly not room here in this report to cover all of it, but I promise, that when you’re done you’ll know more about homeowners insurance than 95% planet. (Unless they’re already insured in my office… We make sure people understand their coverages. It’s the only way to best prevent problems and surprises at claim time.)
There’s three main parts to your homeowners coverage: 1. Coverage for the house 2. Coverage for your stuff 3. Liability coverage

Let’s take these on one at a time.

COVERAGE FOR YOUR HOUSE (the structure)

This is probably the least understood of the three. And the biggest question is HOW MUCH? How much coverage to I REALLY NEED to properly and reasonably cover my home?

It’s really a simple answer. This is probably worth the entire time you’d spend reading 10 of these POSTS.

You need just enough coverage to rebuild your house.

Here’s what you DON’T NEED! You DON’T NEED to insure it for its market value (what you could sell it for). You also DON’T NEED to insure it up to the LOAN AMOUNT. Both of these numbers have NOTHING TO DO with the cost to rebuild your house.

If you determine that you need $200,000 to rebuild your house and your lender tells you that you have to insure it for $300,000 because that’s the amount of your loan. You tell them that you know different! If you can’t get this through their thick heads, call me. I’ll take care of it for you. There’s a law I can cite to them that will cool their jets in a hurry. (And I’ve done it many times in my 3 decades of helping my policyholders)
The cost of lumber can fluctuate wildly depending on the season.
So how much do I need to rebuild my house?

That’s the magic question, for sure! The answer is that you calculate it by using cost per square foot. You’ll need to know how many square feet of living space you have. Generally, an appropriately sized garage is included in the cost per square foot. For example, if you live in a 800-1000 square foot house, you’ll likely have a 1 car garage. If you live in a 4000 square foot house, you’ll usually have a 3 or maybe even a 4 car garage.

Ideally you’d like to get a licensed contractor to your house to estimate that for you. Get one who is currently building houses in your area. Believe me, he knows the cost.

Remember though, EVERY HOUSE IS DIFFERENT!
I have several contractors insured and I keep up with them on the current cost of construction in my area. I hesitate to just give you a number here as it changes all the time and you need to tweak it a little based on the configuration of your house. For example, if your house is a track house, (one that was built among a bunch of others that are about the same) your cost of construction will probably be less than if you lived in a custom house. You have to ask questions like these:

Do I have carpet or marble tile?
Do I have a central vacuum system?
Do I have a composition shingle roof or concrete tile?
Is my kitchen standard or custom?
Do I have central air conditioning, ceiling fans, custom wood stair rails, or granite counter tops in the kitchen?

With just a quick phone call to my office, we’ll be happy to help you determine your cost per square foot.

Another common point of confusion is that people think they need to insure their house for it’s market value. NOT SO! Your house is (almost) always going to be worth more than it takes to build it. Remember there’s value in your land, neighborhood, schools, view, etc. All that is unaffected by the loss of your home. And remember this….

NO MATTER HOW MUCH COVERAGE YOU PUT ON YOUR HOUSE, THE INSURANCE COMPANY WILL ONLY PAY YOU WHAT IT COSTS TO REBUILD IT.

So here’s how a typical house can look. Remember there’s 3 key numbers associated with your house: Market Value, Amount of your Mortgage, and Rebuilding Cost.

If your 2500 square foot home has a market value of $650,000 and your local building costs are $200/square foot, your rebuilding cost would be $500,000 (2500 x 200). Your mortgage could be $120,000, $400,000 or $0. Regardless of the loan amount or the market value, you’d want to have approximately $500,000 of insurance on that house. There’s some tricky thinking here that you need to consider.
The cost of construction isn’t static, it’s always changing. Lumber cost changes almost daily, as an area builds more and less through changes in economy, the cost of subcontractors will fluctuate. At the end of this report you’ll see a special feature that my office offers you to help you be sure that you don’t get caught short as construction costs rise and fall. Look for this picture in PART 2. -->

Usually your house has what’s called ALL RISK coverage. That means that, except for a few exclusions, anything that happens to your house is covered. If there’s a loss to your house, the adjuster looks at the list of exclusions and if what happened isn’t there… it’s probably going to be covered. Remember that all insurance companies are different and it’s the policy contract that decides, not what I say here!

Some common exclusions include flood, earthquake, riot, freezing of pipes in an unoccupied, vacant, or under-construction building, vandalism and malicious mischief if the building has been vacant for more than 30 days, normal wear and tear, intentional damage, damage from animals, birds, or fish, and war. These are just a sampling of exclusions. See your policy for your actual exclusions.

Equally as important as the coverage for your home is your coverage for your stuff – Your Personal Property.

In PART 2, we're going to be getting into YOUR STUFF.... Your iPod, couch, dishes, rugs, baseball card collections, etc.... See you then....

It's a Good Life !

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