11 Tips Every Home Owner Needs to Know About Insurance


Homeowners Insurance

I found a great article written by Fox Business I would like to expound upon, and the link for the article will be posted at the bottom. I'm going to combine tips 1,2 and 5. I feel like they go together. Obviously what you are and aren't covered for is great to know, but number 5 How Replacement Coverage Differs From Market Value will teach you something most people do not know. I wrote a post specifically about this titled "How Much Insurance Should I Have On My House" In a nutshell it explains how homeowners insurance works if you have a total loss. I did a replacement cost estimate this morning for a client. Her home was roughly worth $206,000. Replacement cost estimate was $362,351. If her insurance company were insuring her home for $206,000 she would be $156,351 short to rebuild her home. Problem is they weren't insuring the home for $206,000, they were insuring it for $175,000 which actually put her UNDERINSURED for $182,351. After a company is paid to remove the rubble which is estimated to be $23,654 she would be left with $150,346 ($151,346 without subtracting her deductible). Now any average Joe can say yeah $150,346 won't rebuild a $206,000 home. Well it's still going to cost $338,697 to rebuild the home not $206,000 BECAUSE  you have to pay a contractor to move all of his equipment, pay for materials to be delivered to the site, etc. It is a whole new ball game when a contractor is throwing houses up in a development area because all of the equipment is already there, supplies can be mass ordered, one delivery fee for multiple home building supplies etc. If you're still confused about this please call, text or email me I'd love to explain this to you.


#8 Jewelry in the state of Utah $2,500 is a standard coverage for jewelry and GUNS. If your jewelry collection totals more than $2,500 and you didn't get an endorsement to increase jewelry coverage then $2,500 is the max they will pay out for stolen (or lost by other covered risk) jewelry. Your homeowners insurance also has the same total for guns. If your gun safe totals more than $2,500 and you have a loss you are NOT going to replace all of your guns.


#9 Maintenance = discounts on homeowners insurance. If you own a 1970's home and you've never had an update on the electrical, roof, HVAC, or plumbing you're not getting the best rates you could be on your insurance. Insurance companies don't want to fork out money for a leaky roof that hasn't been replaced in 40 years. Insurance companies want to cover your back incase of disaster, but they want you to reduce the risk of a loss on your end and by doing so you will gain a discount on your homeowners insurance.


#10 Bundle your insurance to save money. As a general rule of thumb it is true, if you bundle home and auto insurance together you typically save money. This is 100% the case with captive agents. These are agents who can only write xyz insurance. However, with the amount of insurance companies I can quote with there are times when using two separate companies actually will save you more money than bundling with one company. Most insurance agents will not split it between companies, and most people don't like sending a check to two companies but there are times I advise splitting companies to get the best savings. For example, my grandmother has no tickets or accidents, her credit is great so The Hartford auto insurance was a fantastic fit for her they love drivers over the age of 45 it is the bread and butter of The Hartford when it comes to automotive insurance. When we quoted her home insurance it actually ended up being cheaper to split the bundle package and put her home insurance with Safeco. Why? because the bundle with The Hartford was a few hundred dollars more than splitting it. Again this is not always the case, generally if you bundle your home and auto insurance you're going to save money, but not always.


11 Tips Every Home Owner Needs to Know About Insurance


Morgan Lindstrom

Call or Text 385-204-6762



Your one stop shop for insurance



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