This is the last thing you want to hear from your significant other. You spent months researching the cut, color and clarity of numerous diamonds and finally found the perfect stone that fit your budget. It took another few weeks to figure out whether you should use a gold or platinum setting to complement the cut. Let's not forget the courage that you had to work up to finally ask the big question! Then one day you come home to find out that the ring vanished into thin air. Not too worry though because you had enough insight to schedule this ring on your insurance policy...right?
Most people think that jewelry is automatically covered under their home, condo or renters insurance policy. This is partially correct. The standard policy will only cover jewelry up to $1,000 per incident and will factor in your deductible. In addition, the automatic coverage is offered on a named peril basis which excludes mysterious disappearance. Now don't get me wrong, some policy holders are in the financial position to replace lost jewelry items without blinking an eye but for those who can't, there is a better way. I suggest scheduling the item on your existing policy or purchasing a separate valuable items policy. This will not only cover the ring up to its appraised value without factoring in the deductible, but it will also cover mysterious disappearance. The coverage is not expensive and it will allow you to sleep better at night knowing that this special item is protected.
For those of you who have already taken the steps to property insure your engagement ring I offer one piece of advice. Consider obtaining a new appraisal every few years to make sure that the item is sufficiently insured. One of my clients had a bad experience with her engagement ring before I was able to take over her account. She scheduled her diamond ring 20 years ago for $30,000 but never obtained an updated appraisal since. Keep in mind that her insurance agent should have had at least three appraisals on file but we will save that argument for another day. One day she lost the ring and had to file a mysterious disappearance claim. The insurance company cut the check, and wouldn't you know it, the day she received the check her handyman found the ring in her garage (let me know if you need a referral for an honest handyman!). She promptly sent the check back to her insurance company and a few weeks later she was referred to my attention from her financial planner. The first thing that I asked her to do regarding the ring was to obtain a new appraisal which came out to $50,000.
In addition to jewelry, you can also insure fine arts, furs, antique furniture, sports collectibles, oriental rugs and even wine. Larger collections typically have to be covered under a separate valuable items policy and can be covered on either a ‘per item' or ‘blanket' basis. If you want to learn more about insuring your valuables, please feel free to give me a call!
Until next time...
Ron Lazarto, Client Advisor, Gulfshore Insurance, 239-435-7159
As an independent property and casualty insurance agent in SWFL I'm constantly faced with the challenge of providing my clients with competitive homeowners insurance through financially sound carriers. Finding the perfect combination of low rates and high financial stability ratings can be difficult unless the location in question is built or retrofitted to the latest code and located 1,000 feet or more from the coast. Many carriers are hardening their guidelines by closing specific coastal zip codes or excluding wind coverage while others have decided to non-renew thousands of policies in an effort to reduce their exposure.
So why is this happening? One simple answer is that most carriers are not able to charge sufficient premiums to remain profitable. When asking permission from the state to increase their rates they are declined time and time again. I'm sure that those of you who are property owners think this is a positive decision with the consumer's best interest in mind. I only ask you to consider the following: first, any business that doesn't turn a profit won't be around for long; second, those carriers who continue to write policy after policy without charging the proper rate will be in serious trouble when, not if, Florida gets hit by a bad hurricane season.
How can this problem be solved before disaster strikes? One solution is the Consumer Choice Bill (HB 447) proposed by Senator Mike Bennett and Representative Bill Proctor. The purpose of the bill is to deregulate the Florida insurance industry which in turn will allow carriers to increase their rates to healthy levels. Before you make any judgments, let's look at the bill from both sides.
PROS: If the bill is passed, the best case scenario would be to have a few more years without hurricane activity. This will allow the existing Florida carriers to collect enough premiums to build up their surplus funds and offer their policy holders assurance that they will be able to pay claims after a catastrophic loss. In addition, new carriers will enter the market knowing that they can charge sufficient premiums to turn a profit. This competition will not only drive premiums down but it will also spread the exposure over more carriers. After a few years, Florida's top carriers (ie. Chubb, Fireman's Fund, Chartis and Pure to name a few) will have shed some policies allowing them to open their guidelines for new business in high risk coastal zip codes.
CONS: For the first few years, policy holders will experience significant rate increases until more carrier enter the market. In these difficult economic times, this will apply even more pressure to homeowners who are struggling to pay their bills. To top it off, there is no guarantee that insurance carriers will come flocking to our state to start writing new policies especially if the next bad hurricane season is right around the corner. As a result, more and more policy holders will be forced into the already distressed Citizens program just because their rates will be more affordable. Truth be told, Citizens rates are about 40% too low but that a topic for another blog!
Last year, the Consumer Choice Bill was vetoed by Governor Charlie Christ. Lawmakers will have another shot at pushing the bill through at the upcoming 2010 legislative session. It's my hope that it goes through. Keep in mind that I've been a Naples resident and property owner for over four years so I too will have to pay higher premiums. However, I'm also an insurance agent on the front lines of the industry and see many carriers either suffering financially or not willing to take on the additional risk of writing new policies. Let me know your thoughts about this bill. Are you for or against it and why?
Until next time...
Ron Lazarto (Client Advisor with Gulfshore Insurance, Inc.)
We all knew that this day would come. Over the last several years, State Farm has been asking the Office of Insurance Regulation to allow them to raise premiums in order to stay profitable. When these requests were continuously declined, State Farm started a systematic process of non-renewing thousands of home insurance policies. The hope was that by non-renewing so many policies, their exposure would be reduced to a level where they could still pay claims if Florida gets hit with a bad hurricane season. Unfortunately, on 1/27/09 State Farm announced that they will not longer be writing property insurance in Florida. In addition, there is a good chance that they will be non-renewing $1.2 million property insurance policies over the next few years. Here are some bullet points from Florida Association of Insurance Agents:
The state controlled Citizens Property Insurance Program is going through some major changes in 2009 to reduce their exposure in Florida. If your clients are purchasing homes in the ‘wind pool' (or high risk wind zone), they need to be aware of these changes. This program, which was once a market of last resort, is tightening their guidelines for existing and new policies. The following homes are now ineligible through Citizens effective 1/1/09 for new business and 7/1/09 for renewal:
These new guidelines will affect thousands of homeowners in Collier and Lee counties alone. Where will these homeowners with over $750,000 in value and no shutters go for wind coverage? I give my clients three options:
I hope that this information is helpful. If you ever have any questions or concerns regarding personal insurance, please don't hesitate to contact me.
Until next time,
Ron
Its no mystery that Southwest Florida presents complex insurance challenges for homeowners, mainly revolving around price and availability. As a result, some buyers will request insurance quotes before they make an offer, especially if they are deciding between several properties. How prepared are you when your buyer asks about insurance? Here are some key rating factors that I look for when I start the quoting process:
Keep in mind that these are several other factors that influence insurance rates, but I want you to start thinking about these items when your buyers ask you about insurance. Better yet, why not be prepared with an approximate quote? Many of the listing agents in my network contact me before they even have a buyer to request a comprehensive home, wind and flood proposal. This not only makes you look like a pro but it also provides your clients with the information they need to make a sound investment decision.
Until next time,
Ron
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2012 ActiveRain Corp. All Rights Reserved