Tag Archives: home insurance

Nov 23 2024

Do you have enough home insurance?

Could you rebuild if a tornado or fire destroys your home? Some experts say half of all homes may not have enough insurance. Here are tips to make sure you have the right amount of coverage.

1.    Find out what it would cost to rebuild your home.

This is not the same as the real estate price, or market value. The rebuilding cost is based on what kind of home you have and local construction costs. The rebuilding cost is sometimes called replacement cost. Your insurance agent can help find out your rebuilding cost.

2.    Your insurance coverage should match the rebuilding cost.

You can find your policy limits on the front page of the policy or ask your agent. If the amount is lower than the estimate to rebuild, you may need to make changes.

3.    Check your insurance coverage regularly.

Check your coverage when you renew your policy each year. You should also talk to your insurance agent if you remodel or make upgrades. A new deck, garage, or kitchen can increase the cost to rebuild

For more information, click here.

Teaching Suggestions:

  • Have students research special types of property and liability insurance.
  • Have students talk to an insurance agent or claim adjustor to determine the type of documentation required for a claim settlement.
  • Ask students to obtain additional information on home insurance from the Insurance Information Institute or other online sources.

Discussion Questions:

  1. Why is it important to check your insurance coverage regularly?
  2. What type of insurance coverage is more important, property or liability?  Explain.
Aug 31 2024

Home and Auto insurance costs

Each insurance company uses many factors to calculate what they charge a customer for home and auto insurance.

Some factors are about you, your home, or your car.

For home insurance, common factors include:

  • Your home’s age.
  • How old your roof is and what it’s made of.
  • Where you live.
  • The cost to replace your house.
  • Your claim history.
  • Your credit score.

For auto insurance, common factors include:

  • Your driving record and claims history.
  • Where you live and how much you drive.
  • Your age, gender, and marital status.
  • Your occupation.
  • The cost to replace the car you drive.
  • Your credit score.

A change in any factor can raise or lower your premium. This includes characteristics that change over time, such as the value of your home or auto.

For More Information, click here.

Teaching Suggestions

  • Ask students to make a list of major factors that most insurance companies use to calculate your premiums for home and auto insurance.
  • Have students talk with an insurance agent or financial planner to obtain recommendations about the types of insurance you may need for home and auto insurance.

Discussion Questions

  1. Why do insurance companies consider your credit score in determining your home and auto insurance premiums?
  2. In your opinion, what should be the main factors used to determine the amount a person pays for auto insurance?
Aug 27 2022

Preparing for Hurricanes

In 2022, the National Oceanic and Atmospheric Administration (NOAA) predicted that 14 to 21 named storms would develop over the Atlantic Ocean during the hurricane season, which runs from June through November. The agency said there could be six to 10 hurricanes including three to six major hurricanes.  Colorado State University experts forecast 20 named storms this year with 10 becoming hurricanes, including five major hurricanes. The good news is that we have time to prepare.

Here are some tips to protect your home and belongings:

  • Consider buying flood insurance. Flood damage isn’t covered by your home insurance. Don’t wait too long: It typically takes 30 days for flood policies to take effect.
  • Write a family disaster plan. Start on the TexasReady.gov website
  • Decide where and how far you’ll go if you evacuate.
  • Build a “go-kit” with food, medicine, clothes, pet food, and other vital supplies.
  • Make a room-by-room home inventory. This could help later if you file a claim with your insurance company.

For more information, click here.

Teaching Suggestions

  • Ask students to search for flood maps at FEMA’s Flood Map Service Center.  Is their area prone to hurricanes and floods?
  • Ask students to use FEMA’s Historical Flood Risk and Cost data to help evaluate the flood risk in their area.
  • Ask students to talk to their home insurance agent about their need for a flood insurance policy from the National Flood Insurance Program.  (If their agent does not sell flood insurance, call 1-800-427-4661.)
  • Ask students if their families are prepared for the hurricane season?  What preparation have they made, if any?

Discussion Questions

  1. Is flood insurance worth its cost?  Who must purchase flood insurance?
  2. Why isn’t flood damage covered by a standard home insurance policy?
  3. Why are flood maps difficult to keep up to date?
  4. What factors determine the cost of a flood insurance policy?
May 8 2021

Insurance tips following storms

If your home was damaged by the severe weather, contact your insurance company or agent to file a claim as soon as possible. These tips will help you make the process go smoother:

  1. Keep a list of everyone you talk to at your insurance company.
    Be ready to answer questions about the damage.
  2. Make a list of damaged property.
    Take pictures or videos. Don’t throw anything away until your insurance company tells you to do so.
  3. Take steps to protect your home from further damage.
    Cover broken windows and holes to keep rain out and prevent vandalism or theft.
  4. Try to be there when the insurance company comes to inspect the damage.
    If you can’t stay in your home, leave a note with information on where you can be reached.
  5. Ask your agent about additional living expenses.
    If you’re forced out of your home to make repairs, your insurance policy may pay for some of those expenses.
  6. Avoid fraud (with the following recommendations):
    • Get written estimates.
    • Get more than one bid
    • Beware of contractors who solicit door to door.
    • Check references and phone numbers.
    • Don’t pay up front.
    • Avoid contractors who offer to waive your deductible or promise a rebate for it.
    • Never sign a contract with blank spaces.

For More Information, click here.

Teaching Suggestions

  • What actions should you take to protect your property before a severe storm and floods?
  • Make a checklist of actions that you should take after the storm?  Share the list with other students.

Discussion Questions

  1. Under what circumstances is it better not to file a claim?
  2. If you file a claim and your insurer rejects it, what are your options?  Who should you turn to for assistance?
Jan 16 2021

Home Inventory Update

While insurance may be the last thing on your mind during the holidays, the start of a new year is the perfect time to review your insurance coverage and update your home inventory list. When you reflect on the last 12 months, especially with the pandemic, you might realize that some of those changes could greatly affect your home insurance needs.  So, try starting a new tradition: update your home inventory list. Here are four good reasons to add an annual insurance review and home inventory update to your list of holiday traditions.

  1. Your new gifts may not be covered.
    Your homeowners insurance will cover most of your big-ticket gifts like a big screen TV, new electronics and expensive jewelry, but only up to your policy limits. That’s why it’s important to maintain a current record of all your belongings. Update your home inventory this holiday season so your coverage limits meet your insurance needs.
  2. A lot can change in a year.
    Think about the new “normal” we’re living in with COVID-19. With many people spending more time in their homes, it is not surprising that home improvement projects have increased in popularity. According to a recent porch.com survey, 76% of homeowners have completed at least one home improvement project since the start of the pandemic. Take photos or a video of your remodeled kitchen or bathroom, gather receipts and add them to your inventory list. When you review coverage at the start of the year, you can ensure your new assets are safeguarded.
  3. It will make filing an insurance claim easier.
    The information you put into the home inventory list can make an insurance claim settlement faster and easier. This is especially crucial for high-value items. Don’t forget to document your attic, basement, closets and other storage areas. Can you imagine trying to compile all this information after a disaster? Without a record of your belongings, remembering everything you own or what you’ve lost can be challenging.
  4. It’s free and easy.
    With today’s technology, it’s never been easier to keep a detailed catalog of your possessions.  Keep your home inventory list in a safe place outside your home or cloud-based storage services like Dropbox or Google Drive. Also, your insurance agent will be happy to review your insurance coverage with you at no cost.

Creating a home inventory doesn’t have to be complicated. It can be as simple as standing in the middle of each room and taking a 360-degree video. Tackle this project with your children and show them family keepsakes and their history.

For more insurance information, click here.

Teaching Suggestions

  • Ask students if they rent or own home. Do they have renters or homeowner’s insurance?  Have they prepared a list of their personal belongings?  If not, why?
  • If students don’t have a household inventory, encourage them to prepare a list of their belongings.

Discussion Questions

  1. Why is it important to annually review your home insurance needs?
  2. Where should you keep your home inventory list?
Nov 26 2016

Preparing Your Finances for a Flood, Fire, or other Disaster: Having a Plan

Without warning, a flood, fire or other disaster could leave you with a severely damaged home, destroyed belongings and barriers to managing your finances.  Many people think of disaster preparedness as having a stockpile of water, canned food, and flashlights, but people also need access to cash and financial services.  That’s why it is important to include financial preparedness in your disaster plans.  Here is the latest summary of important preparations.

You should have enough insurance to cover the cost to replace or repair your home, car and other valuable property, as well as temporary housing if you are displaced from your home.  Those who do not own a home should have renters insurance.  Also, make sure that you have the right coverage for the types of disasters likely to occur in your area.  For example, homeowner’s insurance does not typically cover events such as flooding or earthquakes, so you may want to consider whether you need additional coverage.

  • Periodically review your insurance coverage
  • Build and maintain an emergency savings fund
  • Sign up for direct deposit of your paycheck or government benefits
  • Gather and organize important documents

For more information, click here.

Teaching Suggestions

  • Ask students to prepare a household inventory with a description and the value of belongings.
  • Help students understand that renter’s insurance is important for the protection it provides for their personal property.

Discussion Questions

  1. How can you protect yourself from flood, fire or other natural disasters?
  2. Should you consider purchasing flood-related insurance if you don’t live in a coastal area? Why or why not?
  3. Why is it important to gather and organize important documents before a disaster strikes?
Jun 11 2014

How Healthy is Your Insurance Company?

When buying home, health, auto or rental insurance, you should find out if your state insurance department offers any information about insurance companies and rates.  Check several sources for the best rate and get quotes online.  Consult an independent insurance agent who represents several insurers in your area to get a better deal.

 Before purchasing insurance, be sure the insurance company is licensed and covered by the state’s guaranty fund.  The fund pays claims if the company defaults.  Your state insurance department can provide this information.

Research the complaint record of the company.  Contact your state insurance department, or visit the website of the National Association of Insurance Commissioners (www.naic.org), which maintains a database of complaints filed with state regulators.  Finally check the financial stability of the insurance company.

For additional information and guidance visit the following websites:

http://www.ambest.com, http://www.standardandpoors.com, and http://www.moodys.com

Discussion Questions

  1. Why is it important to contact state insurance department before purchasing insurance?
  2. How can an independent insurance agent provide a better insurance rate?
  3. Why is an insurance company’s financial stability important?

Teaching Suggestions

You may want to use the information in this blog post and the websites to

*  Have students visit the various websites in this blog and then prepare a short summary of their findings.

*  explore a few advantages of purchasing insurance from an independent insurance agent?