Author: Steve G

Owning a home comes with so many perks and benefits. Namely, building your own wealth rather than putting wealth in a landlord’s pocket. But it also comes with more responsibility and frustration if problems arise. Therefore, one of the most important aspects of homeownership is ensuring that if damage or disaster occurs, you are not on your own to fix or replace the destruction. You can do this by carrying insurance.

You’ve bought a homeowners insurance policy with an insurance company. But are you positive that you have the correct policies in place to protect your belongings? Are you protected against all kinds of damage? These are essential questions to answer before disaster strikes. Let’s take a look at how personal property coverage works.

Are Personal Property and Homeowners Insurance the same thing?

If you are a homeowner with dwelling coverage or if you are a renter with a landlord who has insurance, you likely think that your belongings are insured if something bad happens. But not all coverage is the same.

For homeowners, carrying a home insurance policy ensures that the structure of your house and the permanent fixtures are covered if certain perils occur. Typically, your homeowner’s insurance coverage most likely includes a personal property policy that protects your personal belongings. In many cases, your personal belongings are also covered if they are outside of the home, such as in a vehicle or a vacation rental as well. But it is not wise to just assume this is the case. If your policy does not clearly state and explain the coverage of your belongings, then you should speak to your provider. You may need to purchase a separate personal property policy that covers your belongings inside the home.

For renters, your landlord’s coverage or condo insurance covers the structure of the home and, potentially, the belongings that the landlord owns inside. Their policy does not cover your belongings inside the home. Therefore, you must carry renters insurance to ensure that your personal belongings and valuable items are insured. Many landlords will require proof of this coverage before signing a lease, but if not, it is your responsibility to acquire your own coverage. Additionally, if you are traveling, your renters’ insurance may extend to your items that are outside of the home as well because this policy is about your belongings, not the house structure itself.

Types of Coverage

With homeowners insurance and personal property insurance, there are two different ways your items may be insured. The policy type you select will affect the cost of your monthly premiums. Your policy should expressly state the kind of coverage you’ve selected.

Replacement Cost Coverage

When selecting a replacement cost coverage policy, your personal property insurance covers the cost of replacing the item at the current price. This means that if the price of buying the item is now more expensive than the original price, or even if your current item is worn out and depreciated, your policy will cover the cost of a new one in full. This type of policy is better for you when filing a claim because you will not have to pay for any portion of replacement out of pocket, but it typically does mean you will pay a higher premium.

Actual Cash Value

If you choose an actual cash value policy, your monthly premiums may be lower, but you do run the risk of having to pay for a portion of a replacement. Actual cash value coverage accounts for depreciation which means that your insurance will pay for the covered loss at the price the item costs now. In this case, the item is covered, and you will recoup some of the cost, but if you intend to fix or replace the item, you may have to pay the difference out of pocket.

Personal Property Coverage Limits

Most personal property insurance policies have coverage limits to protect insurance companies from having to pay out high claims for high-value items. Your general policy will cover items up to a specified amount, which is usually determined by your deductible. It is essential to take a home inventory of all of your belongings to ensure that your policy limit is high enough to cover your general items. This includes electronics and appliances. It is wise to revisit your inventory periodically if you have made purchases and update your limits if necessary.

If you have more expensive or high-value items you would like to insure, your basic coverage most likely will not cover these items, and you may need to purchase additional policies.

Scheduled Personal Property Coverage

If you have items of particularly high value, then you should speak with your provider about adding a scheduled personal property endorsement to your policy. This endorsement specifically names the item being covered and the value it is appraised for. You may have to get a professional appraisal with certifications for specific items, such as artwork or jewelry, to prove their worth.

Most insurance coverage operates under a named peril policy, meaning that your items are only covered under specifically named incidents such as fire, lightning, windstorms, and more. With a scheduled endorsement, items may be covered for extended coverage, such as mold or wear and tear. Each company has different policies in place, though, so you should be thorough in researching and understanding your specific policy.

Does Your Home Insurance Cover Your Personal Property?

To answer the question of whether your home insurance includes personal property coverage, the answer is most likely yes. But it is not wise to assume your property is covered. You should be certain that your items are protected before an incident occurs. To be sure, it is best to work with experienced agents who understand insurance coverage.

At Gebhardt Insurance Group, our team knows insurance. Our experts are well-versed in insurance policies from national and local carriers and can help to find you a policy that meets all of your insurance needs. We are also available to assess your current policies. This enables us to explain your current coverage and find any gaps in your coverage that could leave you vulnerable if damage or disaster occurs.

Let us help you. Contact our team today to find out if your home insurance policy includes personal property coverage and to ensure that you are getting the best insurance quote available.

Picture this: A storm sweeps through your area and damages your home significantly. When you file a claim with your insurance company, you find that the damage is covered, so though it is a hassle to live through repairs, it won’t hurt your wallet. But, when getting quotes from contractors, you find that your current home is not up to code and needs extensive changes to comply with local building codes. There is an increased cost of complying. Will your insurance cover the cost?

Unfortunately, if you only carry a standard homeowners insurance policy with minimum coverage, then no. The increased costs of construction to comply with building or ordinance law will have to come directly out of your own pocket. How can you avoid this unnecessary burden? By ensuring that your homeowner’s policy includes ordinance or law insurance.

But how much ordinance or law coverage should you carry? And do you need it if you have a brand new home? Here are a few of your questions answered.

How Does Ordinance or Law Coverage Work?

Every state, city, and county has building code laws in place to ensure that construction occurs in a way that is safe. Because new and innovative materials and practices are continually developing, ordinances and codes often change. Many codes require updates every three to five years, but some updates can be made as frequently as every six months. Therefore, the likelihood of your home needing code updates is relatively high.

Your dwelling coverage or property insurance typically only replaces and repairs the materials and contents of your home as is. This means that if you have an outdated system or materials, insurance only covers the cost to repair the old lower-priced system, not the increased prices of new updates.

Therefore, insurance companies offer Ordinance or Law Coverage to make up for the difference. If your home sustains a covered loss and requires code updates, then your ordinance or law coverage will cover the cost up to the percentage you carry. Most ordinance or law coverage limits are low at around 10% of your home insurance policy, but this can be increased upon request in many cases.

What is Covered Under Ordinance or Law Coverage?

If your home sustains damage and needs updates to comply with city ordinances or building laws, then your added policy will cover the added cost of the repair. This includes demolition, debris removal, repair, replacement, and reconstruction. Fortunately, this also includes undamaged parts of the home. For instance, if you have an older home with an outdated HVAC system that does not meet current standards, even if it was in an undamaged portion of the building, your insurance should pay to replace the system if it is deemed necessary for an update.

It is essential to review how much ordinance or law coverage you should insure for because in a case where your home is deemed a total loss, you could need many upgrades.

Need to Review Your Homeowners Insurance Policy?

Does your current homeowner’s insurance policy have ordinance or law coverage? Or perhaps you’ve just built a new home and don’t think you need this type of coverage? Before taking a chance, it is best to discuss your circumstances with an experienced agent so that you do not have the unnecessary burden of paying for repairs out of pocket.

At Gebhardt Insurance Group, our team of experts knows exactly what type and how much coverage you should carry for your area. Give us a call today to ensure you’re up to date and taken care of should disaster strike.

So you bought a house and walked through the essential steps to ensure that your home is properly insured. But it turns out you don’t like the insurance carrier or policy you purchased. Are you just stuck and out of luck? Not at all.

Many homeowners think they must wait out their policy’s term to switch home insurance companies at renewal time. But this is not the case. You can switch insurers at any time. It is important that you carry a policy with a carrier that you trust because your home and personal belongings are some of the most important things that you own. You want to ensure that they are covered and repaired or replaced properly in case something terrible happens. It’s not something you want to change with a company or policy you’re unsure about.

If you are looking to switch homeowners insurance companies, our team can help. But before doing so, it is important that you follow the right steps to make sure you do not have a lapse in coverage or dual policies. Here are a few elements to consider and information on how to change home insurance companies before making any decisions.

Reviewing

The first step you should take before finding a new policy is reviewing your old policy, especially the terms and conditions. Knowing what your current policy includes or excludes will help you determine what type of policy you are looking for. Likewise, you should familiarize yourself with your current carrier’s guidelines for cancellation fees, your effective dates, such as when the policy began and when it ends, and if you have any bundled policies that will be affected by switching.

Requirements

Does your home have a mortgage? Your mortgage lender may have certain home insurance requirements. It’s absolutely essential to make sure that any new policy you sign up for will meet these requirements, such as certain coverage limits or special coverage for additions such as earthquake or flood coverage.

In many cases, your mortgage company will have rules for the type of coverage you must carry, but they do not have requirements for who your carrier must be. Therefore, you are still able to make an insurance switch at any time, you just need to ensure there isn’t any coverage gap and notify your lender of the switch.

Timing

Though you have the right to switch insurance companies at any time, it may not be advantageous to you to switch in the middle of a policy term. It is a good idea to time your switch so that it benefits you or, at the very least, does not harm you. For instance, some insurance companies will issue a refund check for annual premiums you have already paid in advance when you cancel mid-term, but other companies may charge fees to cancel before it is time to renew. In this instance, it may be better for you to switch companies after you finish out your current contract.

In addition, some insurance companies offer discounts at certain times of the year, therefore, if you can afford to wait, it may be wise to wait until you can take advantage of an offer to save money.

Canceling

When canceling your current insurance policy, it is crucial to ensure that the end date of your current policy and the start date of your new policy is on the same day so that you do not experience a gap in coverage. Furthermore, so that you do not find yourself paying for two policies at once. To ensure this, it is best to speak with a customer service representative and have your cancellation in writing for your records with specific dates outlined.

Additionally, if you pay your insurance with an escrow account, you should call to ensure that payments will be directed to the correct insurance company on the switch date.

Shopping

Switching homeowners insurance providers is a straightforward process, but it can require many steps and a lot of time to ensure that you find the right policy for you. Taking the time to shop every insurance carrier in your area can be a hassle that you simply may not have time for. That’s where our team at Gebhardt comes in to make your life easier. Our job is to shop insurance carriers for you in order to find the best deal with the right coverage for you.

We can help with every step of the process, from reviewing your current policy, outlining the coverages you do or don’t need, and finding the best policy that meets your needs. Likewise, if you’re looking to bundle your home and auto insurance, we can help with that too. When you work with our team, we make sure that you do not miss out on coverage that you need or a deal that works for you. Call us today if you need help switching your homeowners insurance provider.

Living in America, we are taught that we can do, be, and accomplish anything we put our minds to if we work hard enough. The American Dream is something we strive to achieve. And for many, accomplishing the American Dream includes homeownership. Homeownership is a great investment and a great goal to strive for. But homeownership is not as easy as buying a piece of land and constructing a home to live in for the rest of your days. Homeownership takes effort and responsibility. Homes are not cheap, and if you are going to invest your hard-earned money into a piece of real estate, you need to take the necessary steps to ensure that your property is maintained, cared for, and insured in the awful event that something terrible happens.

Obtaining home insurance is one of the most important steps you can take as a homeowner. It is one of the easiest ways to ensure peace of mind, and it is typically not expensive, considering the value of what you receive if you must file a claim. There are many factors that can affect your home insurance rates, and in many cases, you can make choices to decrease your rates where possible. Here’s a look at six factors that affect home insurance premiums.

Location

Where your home is located plays a significant factor in how much it costs to insure your home. Do you live in a zip code that has a high rate of crime? Or perhaps your geographic location has a high rate of natural disasters. In these cases, your insurance premiums may be higher than the average in order to account for the risk. But the opposite effect is also true. If you live in a quiet area with low crime and disaster rates, your insurance rates may be low. It is also typically the case that homes in rural areas see lower vandalism and theft rates than those in the city and therefore are less expensive to insure.

If you already own a home in a city or high crime area, though, you are not just out of luck. Some home insurance companies give discounts for installing home security systems and cameras. If you have not yet built or bought your home, it is wise to look up rates in different locations if you are concerned about high insurance rates.

Materials

The materials used to build your home play a role in how much your home will cost to insure. Is your home custom-built with unique features and craftsmanship, or was it a spec home built by a local home builder? The construction costs of these two types of homes vary greatly, and insurance companies will take the replacement cost of each into consideration when insuring your home.

Additionally, if you live in an older home that is outdated or worn, then the likelihood that it will need repairs is higher than if you live in a new home with new appliances, plumbing, and electrical work. On the flip side, sturdy old-school construction may prove itself to stand up to weather events better than new construction that has never been tested. Each insurance company has its own process for valuating the type of home you need to insure.

Hazards

Do you have any objects in or around your home that make insuring your property a higher risk for filing a liability claim? These contents may include swimming pools, floating docks, trampolines, treehouses, play structures, and more. Any object you have where someone could get hurt puts you and your insurance company at risk. Therefore, your insurance company may require that you pay a higher premium to counter that risk.

Sometimes, you may have to purchase an additional liability coverage policy. There is also a potential risk that your insurance company may not cover that item, such is often the case with trampolines. Therefore, you should call your insurer to confirm coverage before purchasing such items so that you know your coverage before an accident occurs.

Natural Disaster Potential

The United States covers such a vast geographical location that each state has varying likelihoods of different types of natural disasters. For instance, in Oklahoma, residents are at higher risk for tornado damage and therefore need to be concerned about coverage should a tornado occur. In Arizona, though, tornadoes are not as high of a concern as water damage during monsoon season. Additionally, you may live on or near a fault line that puts you at higher risk for earthquake damage.

Insurance companies know which areas are at high risk for each type of natural disaster and will therefore be able to inform you of your necessary coverages and the increases in cost due to risk. They also evaluate your homes distance from a fire hydrant or fire department and develop a special rating that determines the likelihood that your home can be saved quickly and salvaged in the event of a fire.

Coverage Selections

The types of coverage you wish to carry plays the most significant role in determining how much you will pay each month to carry homeowners insurance. Do you have a large home with luxurious features and valuable personal property? If so, you will probably want a higher amount of personal property coverage than a neighbor whose house is filled with thrifted finds.

Additionally, if you have valuable family heirloom pieces such as artwork or jewelry, you may wish to add additional floaters or endorsements to your policy to ensure that these items will be replaced in full if they should be stolen or damaged in your home.

Do you work from home? You may have electronics and business property that require extra insurance coverage as well. Your personal property is covered under your homeowner’s insurance policy, but only up to the policy limit. Therefore, if you have expensive business equipment for work or if you run an at-home business, you may need to speak with your employer about their coverage policies if they own the equipment, or you may need to purchase extra coverage to ensure that the important equipment is covered.

Claim History

Last on our list for today, but certainly not least, is the likelihood that you will file a claim. One aspect that heavily affects this factor is your claim history. Has an insurance company had to pay out a large claim for you in the past already? If so, you could be considered a claim risk. Similarly, do you have a rough credit history when it comes to paying your premiums for insurance? In that case, you may need to search for an insurance company that has special scenarios for people who are high-risk clients.

Finding the Best Homeowners Insurance Rate in Arizona

Are you an Arizonan looking for the best homeowners insurance rate for your home? Our team at Gebhardt Insurance Group would love to help you find the right policy and coverage for your specific needs. We understand that it can be daunting to search through all the options available in Arizona. We also know that many companies are not straightforward with their prices and costs, which can be frustrating.

We are here to help you navigate the options and find the best choice. Our job is to shop around through over 40 local and national carriers until we find a deal that best suits you. Let us help you today by giving us a call.

Your house is one of the most important things you own. Not only because it is likely the most expensive thing you own, but because it is where you lay your head at night. It is your safety and place of refuge. Therefore it is of the utmost importance that you ensure it properly against perils. In some cases, weather events, break-ins, accidental damage, and other circumstances may leave you feeling vulnerable or frustrated if you have to pay for repairs on your own. When you carry home insurance against these types of events, you can rest easy. Knowing that your assets are taken care of in the event something terrible happens gives you peace of mind that is worth every penny spent.

As an Arizona homeowner, you have a plethora of options to choose from when selecting coverage options and insurance companies. It can take time to research your options and understand the different coverages that are available. To help you make the right choice, we’ve provided an essential guide to Arizona home insurance to get you started.

The first task is understanding the types of home insurance coverage you can carry.

Coverage Options

As a homeowner, you can decide which items you would like to insure, what you would like to insure them against, and how much you would like to insure them for. In most cases, you have the option to insure your home, the items in your home, and the people in your home. You also must decide which types of events you’d like to insure against, including but not limited to natural disasters, theft and burglary, accidents, and other damages.

Hazard Insurance Coverage

Hazard insurance is also called dwelling coverage. It insures the parts of your house that make it a house or dwelling. This includes the dwelling structures, such as the roof, flooring, and walls. It also includes attached structures such as decks, porches, and garages. In most cases, dwelling coverage also includes built-in systems that are permanently attached to the home, such as air conditioning and heating units.

Household appliances such as refrigerators and dishwashers are not covered under dwelling coverage. Likewise, unattached structures such as sheds, fences, and unattached guest quarters are not included under dwelling coverage, but these components may be covered under separate insurance policies.

Personal Property Coverage

Personal property coverage insures the items inside your home that are not part of the structure or built-in. This includes all of your personal belongings, such as furniture, appliances, electronics, and other household items. In most cases, you select the amount of coverage you’d like in a dollar amount, which determines your personal property home insurance rate.

If there are specific expensive or important items you’d like to insure, such as jewelry, family heirlooms, or artwork, you will likely need to purchase a separate policy for these, as high-dollar items are not typically covered under basic personal property coverage.

Liability Coverage

Liability coverage insures people who may be accidentally injured on your property. It also protects you and your family against being held liable for damages. For instance, if a friend or neighbor gets hurt on your property, your liability may assist in paying their medical bills. This friend or neighbor could also potentially sue you for damages. Therefore, when you carry liability coverage, your assets are protected in a lawsuit. Liability insurance also insures against accidental property damage that you or your children might commit against a neighbor’s property. Depending on your policy, liability coverage may also cover damage caused by your pets in your home and in the home of another.

Common Claim Types

Luckily, Arizona does not have a wide variety of natural disaster events in the state. But even though the options are not various, the few options that are likely can be quite disastrous. Due to the southern location and warm climate, cold and snow-related disasters are mostly non-existent. But in an interesting juxtaposition, Arizona is subject to disasters brought on by the dry, hot climate and also the sudden rainy season. Therefore, Arizona residents need to be prepared to insure their property against fire and water alike.

Understanding the different claim types that are common among Arizonans can help you choose the right coverage needed to protect your home. Keep in mind that the large size and diverse topography in Arizona mean that many of these scenarios are dependent upon your zip code. Therefore it is best to speak with a representative about your exact location before ruling out any type of coverage.

Wildfire Damage

In the past, wildfires were not especially prevalent in Arizona. Unfortunately, environmental changes have brought wildfires to Arizona in more significant numbers and with higher frequency. This is due to historical temperatures, extended droughts, humidity decreases, and dry Arizona vegetation. Therefore, Arizona homeowners need to be aware of the potential and carry the proper amount of insurance to recover any assets that could be lost in a breakout fire.

Fortunately, fire damage is typically covered under basic home insurance coverage, whether due to wildfire, lightning strike, or accidental damage. Though not all fire scenarios are covered, such as intentional fires and fire brought on by acts of war. It’s essential to know your policy and ensure you have extra coverage if you are concerned about the risk of uncovered scenarios.

Earthquake

Did you know that Arizona sits on around 100 fault lines, according to the Arizona Geological Survey? So even though large or catastrophic earthquakes are not common in Arizona, they are not impossible. And even more possible are small-scale earthquakes or tremors. These do not tend to do incredible damage but can shake a home and damage the foundation, weaken walls or pipes, or break interior property that falls during a shudder.

Earthquake damage is not covered under most home insurance properties. Therefore, if you would like to protect your home and belongings against damage caused by an earthquake, you must purchase a separate insurance policy.

Flood

Those who do not live in Arizona associate Arizona with dry deserts and blooming cacti. Therefore new transplants are often surprised to find that many places in Arizona suffer from yearly rains that bring on floods. Monsoon season can be quite dangerous to you and your property because it is unpredictable and uncontrollable. Just because you have not suffered from monsoon damage in the past does not mean you will not incur damage in the future. Therefore, insuring your home against flood waters is extremely important. Even in dry Arizona.

Water damage from busted pipes or water backup in toilets may be covered under your insurance policy, depending on the source of the water or damage, but flood insurance is not included in standard homeowners insurance. It is backed by the National Flood Insurance Program. Therefore it is incredibly vital that you speak with an agent about the type of coverage you need against flooding.

What is not Covered with Home Insurance?

A standard home insurance policy covers most damage that occurs to your home and property. Covered perils include fire, lightning, and hail damage, as well as theft, vandalism, burglary, and explosion damage.

Claims not covered under standard home insurance policies are those due to earthquakes or floods. If your Arizona home is in a flood plain or is near a fault line, speak to an agent about adding additional policies to your insurance to ensure that your belongings are covered if these events should occur.

Tips for Buying Homeowners Insurance in Arizona

When searching for homeowners insurance in the Grand Canyon State, it’s important to make sure you are getting the best deal. There are often discounts for installing a home security system, sprinkler system, having a good credit score, or for bundling multiple policies with the same company.

It is essential to gather as many insurance quotes as possible to compare quotes based on your specific needs. Don’t just purchase a policy with the first company that shows up on an internet search; they may not be offering the best deal for you.

It is also vital for you to ensure that you are carrying the proper coverage. For instance, finding a policy that offers replacement cost coverage versus actual cash value will ensure that you can totally replace the items you lose when filing a claim rather than receiving a portion of what that item is now worth due to depreciation.

Our best tip for purchasing home insurance is using an agent to find the best plan. An agent who is familiar with your area will know the proper coverage you need based on your zip code and will also know the best deals offered by the best companies.

Buying Home Insurance Through Gebhardt

We know that finding home insurance can be overwhelming. We also know that finding an agent you can trust is also an overwhelming task because you want to make sure that you are not being taken advantage of or sold a sub-par product.

When you work with our customer service team at Gebhardt to secure home insurance as an Arizona resident, you are in good hands. We do not sell you overpriced insurance to pad our own pockets. Our job is to search local and national insurance companies to find the best deal for you.

At Gebhardt, we have the inside information on average rates for your zip code with over 40 top insurance carriers, including State Farm, Progressive, and more. Let us do the research for you and present you with the best options for your needs. Additionally, we are available to explain the differences between plans and different types of coverage options and answer any questions you may have about home insurance for Arizona residents.

Ensure that you are insured and work with a member of our team today.