Beyond the Basics of Homeowners Insurance

Homeowners Insurance
Many of us understand the fundamentals of homeowners insurance: “What is homeowners insurance?”, “How do I buy it?”, and other such questions. But homeowners insurance only reaches its true value when the educated homeowner knows to ask the critical questions: “How much is enough?” and “Why is this coverage the right coverage?” And, don’t think just dollars – “How much?” also can mean “How much insurance?”

UNACCOUNTED VALUE MEANS UNSEEN LOSS

Through poor initial coverage; changes in property value; renovations; or other real-estate and financial market adjustments, most homes are underinsured. The informed homeowner keeps up-to-date on market changes and values – don’t overlook the potential financial disaster of an underinsured home.

It is important to note, when renovations are made, double-checking and/or updating your coverage during and after home remodeling is an absolute must. Our agency can help you find the right coverage that takes into account your needs. We also can help you determine if the contractors you hire are carrying the right kind of insurance. Will your home be open to outside elements during renovation? Will you be vacating the property for more than 60 days? These are all questions you need answered before you begin any kind of remodeling work on your home.

The condition of your home and its contents also can change the effectiveness of your policy. Sometimes a simple change, not quite to the level of a renovation, can change the value of your home. A small deck, a stained-glass window or a hand-crafted front door could impact coverage if unaccounted for in your insurance policy. Anything making your home unique should be highlighted to your agent. Repair costs can be based on standard construction cost and might not take into account the aspects of your home most dear to you.

OPTIONS

Options are crucial for the insurance buyer; and options are what independent insurance agents do best. Understand the benefits and limitations of liability insurance when investigating a homeowners policy. Liability insurance often is overlooked, but any homeowners who have had to make use of this coverage realizes its importance.

Also, not to be underestimated, is the importance of umbrella policies. Once the liability limit on the homeowners policy has been used up, you may need the added protection of an excess or umbrella policy to protect your assets. As your independent agent we understand the specific needs of your situation and your liability risk. Don’t ignore this extra level of protecton.

(This newletter is not intended as legal advice, and certain policies may differ from those described herein.)

 Call us at (856) 935-0845 or visit our website at www.hdyoung.com for a homeowners insurance checkup.

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The information in this article is meant as a guideline only.  There is nothing in this article that alters the coverage or interpretation of any specific policy.  Because some statements are generalizations, and because different companies’ policies contain slight differences, please refer to your specific policy.  Call our office before making any judgements or decisions concerning your particular situation and coverage that may, or may not, apply.

Insurance For College Graduates

Your kids have graduated from college and they’re moving out to start life on their own. Are they aware of their insurance needs? Thinking about insurance is critical.

Your kids have graduated from college and they’re moving out to start life on their own. Are they aware of their insurance needs? Thinking about insurance is critical.

 

– Health Insurance –

According to the U.S. Census Bureau, “Young adults (18 to 24 years old) were less likely than other age groups to have health insurance coverage.”   In 2002, nearly a third of college students were uninsured.  That’s a lot of people who, apparently, feel lucky.  Do you really think your children’s health and well being should be left to chance?

Surely not.  But what can you do?  They’re out of school; they’re moving out; and they’re too old to stay on your policy as dependents.  While ultimately insurance is the responsibility of our sons and daughters, there are a couple of interim options:

  • The Consolidated Omnibus Budget Reconciliation Act, better known as COBRA, gives certain individuals the right to temporary continued health coverage at group rates.   It is important to understand that COBRA is not a cure-all.  Only certain people qualify; the coverage must be lost under specific conditions; and premiums often are more expensive than they are for active employees, since COBRA participants, without a contributing employer, generally pay the entire cost themselves.  But it usually is less expensive than individual health coverage.
  • Short-term health insurance was designed with the college graduate in mind.  It is exactly what it sounds like: a complete short-term health insurance policy, purchased for three to twelve months.  It is perfect coverage to provide protection until a permanent policy can be secured through an employer or otherwise.

– Renter’s Insurance –

What about their belongings?  Renter’s insurance covers damage to or loss of personal property from a host of circumstances, including fire or lightening; windstorm or hail; explosions; riot or civil commotion; aircraft; vehicles, smoke; theft; water-related damage from home utilities; and more.  It will also cover against charges of negligence or if someone gets hurt while in their apartment.  Renter’s insurance is not expensive, running $100 to $200 for an entire year of coverage. 

Of course, this brief overview of post-college insurance is not all-inclusive.  Stop in today, or have your son or daughter give us a call.  We’ll go over all the things they should consider as they begin a life on their own, and start them off on the right foot.

Call us at (856) 935-0845 or visit our website at www.hdyoung.com to protect your child’s future.

hdyrlogo1

The information in this article is meant as a guideline only.  There is nothing in this article that alters the coverage or interpretation of any specific policy.  Because some statements are generalizations, and because different companies’ policies contain slight differences, please refer to your specific policy.  Call our office before making any judgements or decisions concerning your particular situation and coverage that may, or may not, apply.