Older Residences and Vacation Homes
Some customers purchase older homes (1959 and earlier) and are unaware that these types of properties require upgrades in order to get preferred low rates for insurance. The roof must be no more than 25 years old unless it is tile or 20-50 year composition. The hot water heater must be less than 15-20 years old and the electrical system must be on circuit breakers. The plumbing in the house should be upgraded to copper but this is not a requirement. Of course, we can insure homes that are not upgraded or vacant but there is a substantial increase in the cost due to the increased risk. Please note that homes that are over 1000 feet from a fire hydrant and/or over 5 miles from a full time fire station are also considered a higher risk.
Vacation or secondary homes are often misunderstood. These homes are insured assuming there is nobody living in the house at any time except for the periodic visit from the owner. If there is a part-time or full-time resident, the home must be insured as a rental property (even if there is no rental income). Vacation rentals are properties that are rented to multiple families during the year and tend to be more expensive to insure than full-time rentals.
Driving Records
When obtaining quotes for auto insurance, keep in mind that insurance companies will go back from 3-5 years on driving records, including moving violations, accidents and claims. With some insurers, the amount paid out on a claim is a significant factor as well as the cause of the accident. In most cases, a comprehensive claim is not chargeable and does not affect the auto insurance premiums. Comprehensive claims include towing, glass repair or replacement, hit and run, fire, theft, etc. By using an independent agent who represents numerous companies, all of these factors are looked at to get you the lowest premium.
Claims facts
I insure my own home and use high deductibles and here is why? The average homeowners claim is just under $2500 and that seems to be where most insurers price their premiums the best. When a deductible of $1500 or $1000 is opted for, the premium is increased by at least 10% so consider this. For lower valued homes under $250,000 (Coverage A on the policy), choosing a lower deductible is not as much of a price factor since the premium is low to start with. Weather related claims such as wind or lightning rarely increase the premiums on a homeowners policies but fire and water claims almost always do. In fact, if the cause of a fire claims is due to negligence (example: leaving the stove on and the kitchen burns down), the premium can be increased substantially or in some cases, the policy is non-renewed. Insure your home with a major insurance company that has an A rating or better who has been in business for at least 50-75 years. These companies have long tract records and want the claims experience to be as stress-free as possible. This is the part of the insurance company experience that most customers put a great deal of value and will decide whether or not to continue to be insured with them.
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