Dennis Volz

Homeowners Insurance-HOW TO CLOSE YOUR ESCROW -- How to buy it, How much to get, and HOW TO SAVE MONEY!

The informed purchase of your homeowners insurance can be the most important minutes you invest into the purchase of a home.

So, you've purchased your new home, navigated the rigors of escrow including home inspections, termite tenting, title searches, legal wrangling, paper work, signatures, delays, changes, lost documents, unreachable loan officers, and the dog ate my disclosure!

Then you get the call..."I'll need a copy of your homeowners insurance to close escrow TOMORROW!"

So now what ?

If you've done the following.....YOU WON'T EVEN GET THE CALL! EVER!!!!!

If you're the Realtor or the homeowner, there's a few simple steps you can take to avoid this last minute panic.

1. Tell your buyer you're going ask an insurance professional to contact them. They may have another agent they'd like use and that's fine. This is YOUR backup. Tell your client that you'd like him to just get some information that will help them decide how much insurance they need on their new home (information that they can then take to their agent of choice)
   
2. Contact YOUR insurance "team member" you trust EARLY in the escrow (like the day you open). (he is a member of your team that helps you avoid ulcers during escrows.)
3. Since you're the "manager" of the escrow, this puts you and the agent in control of the insurance.
4. The agent gets completely ready w/ the information, inspects the house, relays his information (phone, fac, etc) to escrow and waits. (unless the client had their preferred agent then he just files it.) He's all "warmed up" and ready to go just like the pitcher in the bull pen.

Now that's for YOUR sanity..... Let's talk about your client. What should they look for.

They need to primarily consider 3 major points of the insurance. (there's MUCH more to it than this and that's between the agent and the client, but as a REAL ESTATE PROFESSIONAL, you should at least be aware of these items and take a peek if you can.

1. INSURANCE TO VALUE - HOW MUCH? People need to insure their homes to the COST OF CONSTRUCTION of the home. Not the sales price, not the loan amount, but the amount of money it would take to rebuild in the case of a total loss. Living thru the TWO MAJOR SAN DIEGO FIRES in 2004 and 2007, I can tell you that this can be a PROBLEM. Get insured correctly going in the front door and the renewals should increase to keep pace (but check 'em out anyway...that's why they mail you an annual renewal notice.)
2. Get a good amount of Liability Coverage. This is the , GAWD, I'M GETTIN SUED coverage. Think minimum of $500,000 and maybe even a $$MILLION$$.
3. Don't take too low a deductible. Many clients take $2000 up to $5000 and even $10,000 deductibles for substantial reduction in their premiums. Look at the numbers and decide.

That's just a short view of the INSURANCE portion of your escrow. Most important, get an insurance agent you trust to take good care of your clients and who will get to know them BEFORE he recommends coverage. Everybody's different with different insurance needs.

Find an agent that you can call ONCE.....YES, just ONCE and you know the "insurance thing" is handled.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121 - Cell (619) 339-1339
Email: Dennis@DennisVolzInsurance.com
Websites: Company Site: DennisVolzInsurance.com

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

My 'Other Blogs'

The San Diego Insurance Blog

Working by Referral

Musings from California

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.

San Diego Renters Insurance is simply one of the best deals on the planet!

OK ! I know you’re thinking ‘What could possibly be so Fabulous or COMPLEX about Renters Insurance?’

Well…. Here’s the inside scoop !

Here’s a little overview….
(All policies are slightly different. These are examples of what a typical policy might have.)

1. It protects your stuff at home
2. It protects your stuff on vacation
3. It protects your stuff in the USA
4. It protects stuff you may have in a storage facility
5. It protects your stuff all over the world !
6. Yes, that’s right… you lose your stuff ANYWHERE on the planet…you’re covered just as you are in your own backyard.
7. It protects your CHECKS & CREDIT CARDS if they’re stolen
8. It gives you Liability protection....that’s when you get sued
9. It gives you protection for stuff you’d never imagine. Here’s just a few examples
10. For example:
11. Money, Bank Notes, Coins (including collections) up to $200
12. Property used or intended to be used in business
13. On premises up to $1,000
14. Off premises up to $250
15. Watercraft and equipment - up to $1,000
16. Securities, Checks, Traveler’s Checks - up to $1,000
17. Trailers (not used with watercraft) - up to $1,000
18. Stamps, trading cards, comic books (including collections) up to $2,500
19. Theft loss of:
20. Jewelry and Furs - up to $1,000
21. Firearms - up to $2,500
22. Silverware and Goldware - up to $2,500
23. Rugs, tapestry, wall hangings
24. Per Item - up to $5,000
25. Aggregate - up to $10,000
26. 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 Renters Insurance,
let’s talk about the WHY!!
Why would anyone need renters insurance….

The answer is simply this…
Because you’ve got LOTS OF STUFF ! !

“No I don’t,” you say…

Well, imagine, JUST FOR SECOND, if you would please…..

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 entire wardrobe, TV and DVD player, 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.

Here’s a typical list of the average single-person household. If there’s 2 or 3 or more of you, it’s even higher

Personal Property Replacement Value

• Furniture $ 8,907
• TV, VCR, Stereo, Tapes, and CDs $1,777
• Home Computer $1,647
• Microwave $151
• Other Appliances $240
• Clothing $3,700
• Paintings, Prints, Photos $792
• Glassware, China, and Silverware $612
• Sports Equipment $600
• Cameras and Photographer’s Equipment $795
• Books $704
• Jewelry $1,023
• All Other Property $4,000

TOTAL PERSONAL PROPERTY $24,948

You see, here’s the problem with all that STUFF…. You bought it 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.
I know…You’re probably thinking that RENTERS INSURANCE is really expensive. Well here are the facts….

“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…. For just about the cost of a DVD a month, you get protection for
ALL YOUR STUFF.

Protection for all your stuff ANYWHERE IN THE KNOWN UNIVERSE. Doesn’t matter if you’re in the good old US of A, Mexico, China or Australia…

If your stuff is stolen from your car,
IT’S COVERED!!!
There might be damage to your car though. THAT’S covered under your auto insurance. I’m sure you have car insurance !

Here’s all the kinds of things that your stuff could be covered for…

• Fire or lightning
• Weight of ice, snow or sleet
• Explosion
• Aircraft & vehicles
• Smoke
• Sudden and accidental tearing or bulging of heating or cooling systems
• Windstorm or hail
• Theft
• Riot or civil commotion
• Falling objects
• Vandalism or malicious mischief
• Sudden and accidental water discharge from plumbing or appliances
• Freezing of plumbing systems

So you can see that there’s coverage for many different circumstances. Realistically, the most likely ones you’ll need in your lifetime are FIRE, THEFT, SMOKE DAMAGE and maybe VANDALISM.

So for the price of a DVD A month you get all that…

And just like the TV commercials tell you….
BUT WAIT ! ! ! ! THERE’S MORE!!!!!!!! (this WILL begin to sound like a Ginsu Knife Commercial!!!)

Remember we were talking about that LAWSUIT!?!?! Yes, it could happen to you and there’s ALSO coverage in your RENTERS INSURANCE for THAT !

For just pocket change a day, RENTERS INSURANCE can provide affordable basic protection for your personal property,
AND in case of a liability lawsuit.

Someone slips and falls in your place,
breaks their leg, or cuts their hand. (bummer if it’s a Plastic Surgeon)
Your policy will pay whatever you’re legally liable to pay. (up to the limit of the policy, of course) That’s why at least a $300,000 limit is important there (more if you live in California). Many offices will let you walk away with the standard $100,000. For just an extra $2/month, you get TRIPLE the coverage. Almost a crime not to take that.

BUT WAIT ! ! ! ! THERE’S EVEN MORE ! ! !
Medical Payment also pays for…. YOU GOT IT…. It pays for MEDICAL EXPENSES up to the limits of the policy for people who are on your premises with your permission and accidentally injured. And ALSO for people injured by your activities. Coverage doesn’t pay for medical expenses for you or members of your family that live with you.
BUT WAIT ! ! ! ! THERE’S MORE!!!!!!
You also get what’s called LOSS OF USE or ADDITIONAL LIVING EXPENSES coverage. Whenever your place is rendered UNINHABITABLE because of a covered loss, we’ll pay the cost to put you up someplace else while your place is being repaired. I’ve actually written checks to people sitting outside their burned residence to pay for a hotel. VERY COOL!!!!
This pays up to 24 MONTHS ! ! Hopefully you won’t be out that long,
but it’s THERE IF YOU NEED IT ! ! ! !


BUT WAIT ! ! ! ! THERE’S SOME MORE!!!!!!! (see, I told you....)
You know how things just get more expensive every year. We’ll automatically increase the amount of your coverage every month FOR FREE until your next renewal to keep pace with inflation. When you renew your policy each year, it will be for the newer IMPROVED amount of coverage.


BUT WAIT ! ! ! ! THERE’S STILL MORE!!!!!!!!
I mentioned this up above but you might have missed it. If someone steals your checks or credit cards and you suffer loss cuz they’re out there spending YOUR MONEY, you’ll have coverage for that up to $1000.

“WOW”, you say!
And all for about the price of a DVD a month.
Hey, Let’s talk about Deductibles for a second….
The deductible is the portion of a covered loss that is your responsibility. They are typically available in amounts such as $250, $500, $750, or $1000.
For example, if you had a $500 deductible, you would need to pay the first $500 of the covered loss and we’d pay the rest.
Generally speaking, higher deductibles lower your premium, but increase the amount you must pay out of your own pocket if a covered loss occurs. Ask yourself how much you are willing to pay in order to save on premium.
You know what?... Just ask us when you’re here in the office and we’ll walk you thru the whole deductible question. Takes about 3 minutes…

SO what’s the best way to buy this Miraculous RENTERS INSURANCE???

RULE #1 – Don’t over-insure and don’t under-insure. Get the right amount of coverage. Yes, you’ll have to estimate how much stuff you have.
We have convenient calculators in our office to estimate this for you.

RULE #2 – Take the biggest deductible you can afford. (within reason). What does THAT mean????? Well, don’t increase your deductible from say $500 to $1000 if is only saves you $13/year.
We can help you walk thru those numbers and find the best blend of deductible and price...
Takes about 3 minutes.

RULE #3 – Get at least $300,000 of liability coverage (especially if you live in CALIFORNIA!) People just love to sue in good old CaliforNyeYay.
You need someone who explains and helps you with this. It’s just what we do...

RULE #4 – Only get policies with REPLACEMENT COST coverage. (all of the policies we offer in our agency have this provision.) This is a cool one. Provision sez that if you suffer loss to your stuff, and you replace it, we’ll pay you what it costs to get a brand new one rather than what your old one was worth.
Looks like this. Someone steals your 8 year old TV set that’s worth $75 and a new one is $350, we’ll pay you based on the $350 rather than the $75! VERY COOL!
We automatically add this one too. Unless you don’t want it...

RULE #5 – Take the PERSONAL LIABILITY option in the LIABILITY SECTION of your policy. That gives you coverage for things like slander and libel. Californian’s, for some crazy reason, get all bent out of shape if you talk to them or about them the wrong way.
We automatically add this to all your policies unless (for some reason) you tell us not to.

RULE #6 – Don’t forget to check out things like Special insurance for your baseball card or Precious Moments collections. There’s limits on those kinds of things. You might also need to look into waterbed liability, or business liability (if you run any kind of business out of your home.) And don’t forget EARTHQUAKE coverage.
We’ll walk you thru a checklist of all those things just to make sure we don’t forget anything. You may not need any of them, but we just want to be sure.

This is so simple and easy to do.
We do all the work for you and in less than 30 minutes, you’ll have protected your stuff, your current assets and your future earnings.

Why somebody wouldn’t have RENTERS INSURANCE is simply beyond me.

So, here’s what you get…

• Coverage for your stuff: TV, stereo, blender, dishes, clothes, etc.
• Coverage at REPLACEMENT COST (as I explained above)
• Liability Protection. (assets AND your future earnings)
• A place to live while we put your place back together

We’ll walk you thru the whole process (probably will take less than 30 minutes)
Confidence that you're buying the insuance you need: NOTHING MORE, NOTHING LESS.

Yep, you guessed it…
All for about the price of a DVD A month…


No insurance product offers you more BANG FOR YOUR BUCK than simple, but oh so powerful RENTERS INSURANCE….

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121 - Cell (619) 339-1339
Email: Dennis@DennisVolzInsurance.com
Websites: Company Site: DennisVolzInsurance.com

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

My 'Other Blogs'

The San Diego Insurance Blog

Working by Referral

Musings from California

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.