What is Inflation Guard Coverage?

by

inflation guard coverage

Once you purchase a home, an essential next step you must take is purchasing homeowners insurance so that your new asset is covered should something detrimental happen. Homeowners insurance coverage protects you from having to pay out of pocket if your home is damaged due to events such as extreme weather, vandalism, and fire. If you have purchased a home insurance policy, then your home and personal property will be repaired or replaced if any of these events should occur.

But did you know that sometimes, homeowners find out too late that their insurance policy does not cover the total amount of what is lost? When this happens, homeowners have to dig into their own pockets to help cover replacement costs because their policy is outdated or insufficient. Don’t let yourself fall into this category. You need inflation protection.

What is Inflation Guard on Homeowners Insurance?

In order to make sure that your homeowner’s insurance policy stays up to date. Your policy should include an inflation guard endorsement. This endorsement automatically ensures that your policy stays current with the rising costs of material and labor due to inflation.

When you select this endorsement, your coverage limits will rise according to the rate of inflation every time your policy renews. Typical inflation increases are between 4-8%. Your insurance costs will also rise, but the percentage is minuscule, typically between 2-4%.

With Inflation Guard, the total cost to repair or rebuild your home should be covered by your insurance company if you need to file a claim, even if the costs of wood, other materials, and labor have increased throughout the year.

Who Needs Inflation Guard Coverage?

In short, every homeowner needs an Inflation Guard Coverage endorsement on their homeowner’s insurance policy. Homeowners who choose not to carry this coverage may have to shoulder some of the cost to rebuild if their home is deemed to be a total loss in a calamity.

Sometimes, homeowners who do not plan to live in a home for an extended period choose to chance it and will not select Inflation Guard Coverage, but that is a risky move considering inflation changes from year to year, and a sudden increase can occur at any time. If you want to ensure that your coverage increases along with inflation increases, then Inflation Guard coverage is imperative.

Some homeowners insurance policies offer total replacement cost options, which should cover the cost of inflation increases, but it is always wise to check with your carrier to ensure that you carry this type of coverage if you choose not to carry Inflation Guard.

Inflation Guard Coverage Example

To help you understand Inflation Guard Coverage, check out the example below.

Say you carry one million dollars in dwelling coverage and inflation guard coverage at the high end of 8%. Six months into the year, your home is damaged, and you suffer a total loss. Without Inflation Guard, your insurance policy will cover one million dollars in damage, but with Inflation Guard, you will now receive an additional $40,000 in coverage to keep up with the costs of inflation during the year. Therefore, you will now have $1,040,000 to rebuild your home and replace the contents that were lost.

Need Help Finding Inflation Guard Coverage?

At Gebhardt Insurance Group, our mission is to help you ensure that your belongings are adequately insured. Our team is available to help you review your current policies, look for new policies, and compare available policies from different carriers to make sure your policies are up to date with your coverage needs.

We shop your local and national carriers to help you find the right fit and can help walk you through the process of selecting the proper coverage. Do you have more questions about Inflation Guard overage? Do you need to review and update your current policies? Are you ready to purchase new coverage? If so, we are available to answer your questions, so give us a call today.

Factors that Affect Homeowners Insurance Premiums

by

factors that affect homeowners insurance premiums

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.

Home Insurance Guide in Arizona

by

home insurance guide in arizona

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.

How Much Home Insurance Do I Need?

by

How Much Home Insurance Do I Need

Are you shopping for home insurance? Most homeowners understand the need for carrying home insurance and don’t debate its necessity. But many questions surround the topic, including:

  • What exactly is homeowners insurance? 
  • What is covered? 
  • Is it required? 
  • What amount of coverage should I carry? 
  • Does my current policy cover my needs?

Below we have answered and explained a few of these questions to help you understand home insurance and how much home insurance you need.

What is home insurance?

Home insurance is a type of property insurance that covers losses, damages, and repairs to a residence and personal property. Standard homeowners insurance will pay for the repair or replacement of your home in case of events like fire, tornado, hail, lightning, vandalism, explosion, even volcanic activity in certain areas.

What is covered under home insurance?

Rebuilding Structures

Homeowners insurance covers the costs of rebuilding a home structure in the event of damage or disaster. This dwelling protection includes damage to a main house and other attached structures such as a garage. Most policies also have the option of covering structures that are not connected, such as sheds, fences, guest houses, mother-in-law quarters, and others of the like.

This rebuild coverage includes every aspect of replacing the damaged home. Therefore, in addition to the structure and interior and exterior walls and finishes, utility systems are covered. These utilities include plumbing, electrical wiring, heating and cooling, etc.

Replacing Personal Belongings

More than just replacing the home itself, home insurance includes personal property coverage. In catastrophe or damage, the items inside your home will also be replaced, such as furniture, appliances, clothing, and other possessions. You will either be paid the actual cash value or the replacement cost of the property destroyed, depending on your policy.

The actual cash value is the amount you would receive if you sold the item today, less the depreciation of your property. Replacement cost coverage is the amount it would cost you to buy or acquire a new replacement, making it more expensive than actual cash value coverage.

Living Arrangements

If your home is damaged, and you need to seek shelter elsewhere while your house is being repaired, your home insurance policy will cover your additional living expenses. This is referred to as “loss of use” coverage in a home insurance policy.

Your policy will reimburse you for the cost of a hotel or rental stay, the cost of meals or groceries, and additional living expenses up to a certain amount. Typically, most insurance companies calculate this amount by paying 20% coverage for loss of use. For example, if your home insurance coverage is $100,000, your loss of use coverage is approximately $20,000.

Liability Protection

Further, a home insurance policy will give you personal liability insurance coverage. The typical amounts are between $100,000 to $300,000. This is enough to cover medical expenses from an injury sustained by any individual who was injured within your residence or property.

This coverage also extends to any legal costs you may incur in the case of lawsuits. This is an often overlooked aspect of a home insurance policy. Still, it is beneficial because being involved in a lawsuit can be very costly, and an insurance policy can ease the burden.

What is not covered under home insurance?

Damage from some specific natural disasters is not included in typical home insurance policies. For instance, damage caused by earthquakes requires a separate special policy. Those living in common earthquake zones should purchase this additional policy.

Flooding is also not covered by basic home insurance. If you live in a flood plain, you must purchase a separate flood insurance policy from the federal government’s National Flood Insurance Program.

Is home insurance required?

There aren’t any state or federal laws that require homeowners to purchase home insurance. If you seek a loan from a mortgage company, though, most will have a requirement that you carry adequate insurance coverage. Companies that do not require home insurance coverage typically have very high premiums to offset the risk.

How much home insurance coverage should I carry?

To quickly estimate the amount of insurance you need to carry: multiply the total square footage of your home by local square footage building costs. This will give you a basic estimate of the minimum cost you should carry.

This estimate does not give an accurate number of the total cost you should carry because it does not consider personal property, loss of use, or liability coverage.

It is important to note that most home insurance companies will only provide full coverage if the owner has purchased coverage equal to a certain percentage of the home’s total replacement value. This percentage is typically 80%.

For example, if the total replacement of your damaged home costs $200,000, the dwelling coverage limit of your policy must be at least $160,000 to receive full payment.

To avoid this issue, many insurance companies offer extended replacement cost or guaranteed replacement cost options where applicable. These options mean you will receive 20% extra of your insurance coverage limit. Or your entire cost of replacing the home will be covered even if the policy limit is surpassed.

Others with significant investments or holdings may also purchase an umbrella insurance policy to cover claims in excess of a home insurance policy. Of course, you will have to pay extra premium costs for these types of policies.

Additional Cost Considerations

Knowing the true value of your home ensures that you buy the correct amount of insurance. Do you have upgrades such as custom woodwork, stone fireplaces, additional garages, sheds, or other special features? Make sure to buy additional coverage if you want these items to be covered too.

The age of your home and where your home is located may affect the amount you will pay for your insurance. If you happen to live in an area prone to severe weather, rates may be higher, or you may need to purchase additional policies.

Experts also suggest that you should know how quickly your selected insurance company will pay on your claims. Indeed, you would not want to wait for months before getting the amount needed to repair and replace lost property.

Does your policy have you covered?

For many people, owning a home is the most significant investment decision they will make in their lifetime. It can be a devastating and costly decision not to ensure that the home investment is adequately insured in case of disaster.

Recent studies reveal that a large portion of U.S. homeowners does not have sufficient insurance for their homes. This can be due to purchasing lower policies or perhaps not updating an old policy when the home value or changes are made. If you have a current policy, it is good to speak with an agent to ensure that you have the correct amount of coverage.

The peace of mind that home insurance coverage gives is worth every penny. If you are searching for a new policy or would like to update or replace your current policy, call us at the Gebhardt Insurance Group to speak with an insurance agent today.

The Factors That Determine Homeowners Insurance Cost

by

Homeowners Insurance Cost

For some, home insurance can be a sore subject, especially if you have had a negative insurance experience in the past. However, insurance doesn’t have to be complicated. Understanding what determines insurance premiums can help you make more informed and confident decisions concerning insurance policies.

So, how much does home insurance cost? The average cost of homeowners insurance in Arizona is $132 per month or $1,589 annually. Your cost may look different depending on factors such as square footage, the cost of your home, risks on your property, how old your home is, your desired coverage, and more.

Depending on your insurance carrier, you may even be able to bundle your home and auto policies, which could lead to savings. So, what factors determine homeowners insurance rates?

Location of Your Home

If you live in a state that is prone to natural disasters, your location is bound to affect your homeowners insurance cost. This is especially true if you live near a body of water. Being close to lakes, oceans, and rivers, to name a few, puts your home at risk for flooding.

It’s important to note that flood damage is not covered by homeowners insurance. You will need a separate policy that covers flood damage to your property if you live on the coast or close to any body of water. Earthquake damage is also not covered on a standard homeowners policy.

One factor that may positively impact your home insurance rate is if your home is near a fire station. Another positive determinant is how close your home is to a fire hydrant.

Age, Condition, and Construction of Your Home

Unfortunately, older homes can cost more to repair or replace if they are damaged. The materials used in older homes can be more challenging to find if a replacement is needed and be more costly too. Sometimes, old houses even require specialists for repairs, which costs your insurance company more.

Consider the state of your home when shopping around for homeowners insurance. If insurance costs are a concern, aluminum wiring, a leaky roof, or old plumbing can cause steeper home insurance costs.

Property Risks

While you may dream of building a swimming pool in your backyard, if you’re unprepared to pay more for home insurance, your dream may feel more like a nuisance once it comes to life. Pools, hot tubs, trampolines, tree houses, and wood-burning stoves are all property risks that factor in when determining your final homeowners insurance rate.

If you add any of these onto your property over time, make sure you notify your insurer. Keeping your insurer up to date on these additions will allow you to rest assured that you are covered in the event of an accident.

Having safety precautions in place may mitigate some costs. Such precautions can include:

  • A net around your trampoline.
  • A fire extinguisher in your home.
  • A secure pool fence.

Dogs You Own

Many pet owners have special and loving bonds with their furry friends. However, dogs can impact your home insurance rate. Each year, around five million people report being bitten by a dog. 

Your dog may be on its best behavior for you, but there is still a risk. While home insurance covers dog bites, it may impact your rate.

If you have a canine friend at home, insurers will look at your dog’s history. This history can include aggression and if they have bitten you or others before. They will also look at their breed. Some aggressive breeds such as Rottweilers, pit bulls, german shepherds, chow chows, great danes, and siberian huskies are considered more of a risk than others.

Businesses Based Out of Your Home

Some business owners choose to make their home their place of business as well. For example, a hairstylist may decide to turn their garage into a salon studio. If you have a home-based business, inform your insurer so they can help you take steps to protect your equipment, your investment, and even yourself. You may need additional personal property coverage or even business insurance.

Your Credit Score

The dreaded credit score – it will never stop following you around. Thankfully, insurance companies have their own formulas to determine your insurance credit score. However, if you have a low credit score, it is still likely to factor into your final rates.

Your current debt, types of credit you have, your debt payment history, if you have filed for bankruptcy, and more all factor into this formula. If you have a concern about your insurance credit score, talk to one of our agents today.

Your Claims History

Just like your credit score, your claims history follows you around as well. Insurance is there for a reason and is meant to be used if needed! However, if you have made insurance claims before, you are more likely to make claims again in the future, and insurers view that as a risk.

Homeowner’s Marital Status

Usually, married couples file fewer claims than single people. Insurers tend to view married couples as more responsible and less likely to take risks. In the case of homeowners insurance coverages, your relationship status may have an impact.

The Deductible 

One way to save money on your homeowners insurance monthly is to choose a rate with a higher deductible. This option may result in a cheaper monthly rate. However, if you need to file a claim and you can not afford your deductible, you will not be in a better spot in the long run.

Consider if you can realistically afford a higher deductible before choosing a policy with such. For some, a $1,000 deductible may be attainable, but this may be a significant burden for others.

The Coverage Amount

Some people like to have as much coverage as possible in order to be “fully prepared”. But keep in mind that the more coverage you want, the higher the cost will be. You may be able to increase your maximums if you feel that a standard policy’s maximums are too low to cover:

  • Your belongings. 
  • The repair of your home in the event of an accident.
  • A place to stay while your home is repaired. 
  • A lawsuit due to an incident that occurred on your property,  

Keep in mind that this will cost more than a standard policy. However, if it gives you peace of mind and confidence that you are prepared for the worst, increasing your coverage may be a great option.

Why Choose Gebhardt Insurance Agency?

The best part about utilizing an independent insurance agency like ours is that we can shop around many homeowners insurance companies for a policy that best suits your unique needs and price point. Even better, we can shop for car insurance with multiple carriers and may even find you a home and auto bundle that saves you money.

There’s no better homeowners insurance calculator than our agents at Gebhardt. Not only will we do the legwork for you, but we can accurately consider discounts for which you may be eligible. This level of accuracy is something that many online calculators cannot provide. For more information on our home insurance products and services, contact our agents today and get a free quote!

The Different Types of Business Insurance

by

Types of Business Insurance

Insurance is necessary for businesses, big and small. However, the types of insurance your business may need will depend on different factors such as the type of industry your company is in, risk of employee injury, federal, state and local laws, where your business operates and more.

Business insurance policies can protect your company, your employees and yourself in the event of injury, property damage, theft, fire and liability claims. While it’s an additional investment in your company, it’s one worth making.

What is Business Insurance?

Business insurance is intended for companies rather than individuals. Depending on the type of business insurance you purchase, it can even protect your company from lawsuits. Small businesses usually are more exposed to financial losses and even business closures. Business insurance can protect against this and help you keep your company up and running, even in the darkest of times.

Our agents can evaluate your risks and help you pick which types of business insurance you need while keeping your budget in mind. If you cannot cover out-of-pocket costs in the event of a disaster or lawsuit, talk to one of our agents today.

Types of Business Insurance

Commercial Property Insurance

Damage can happen to any business. Whether you sustain damage to your office, your company vehicles or any other type of company property, property insurance can cover the cost of repair or replacement. The damage may be caused by man or through natural events.

It’s important to note that damage due to flooding and earthquakes is usually not covered with this type of policy. Vandalism, lightning damage and fire are typical coverages with a commercial property policy.

Your physical assets may be included in this type of policy as well. Make sure you provide your insurance agent with an inventory of company assets. This may include computers, machinery, furniture and more.

Workers’ Compensation Insurance

Workers’ Compensation insurance (also known as workers’ comp) protects your employees that are injured on the job. It will cover their medical expenses pertaining to the injury and may also cover their lost wages while they recover.

Workers that fall ill due to occupational hazards may also be covered under this type of insurance. Most states require companies to carry workers’ compensation insurance by law.

Commercial Auto Insurance

Any company that has company cars or vehicles needs commercial auto insurance. Whether you use trucks for landscaping or allow employees to use company cars to take clients to lunch, every business owner needs the proper coverage in place.

Professional Liability Insurance

If your company is sued for negligence, having a professional liability policy in place can help. Also known as Errors and Omissions insurance, if a client thinks you made a mistake regarding your professional services and they were harmed in any way, they may sue you for damages.

Business Interruption Insurance

Businesses that are forced to close for short periods of time can have difficulty keeping the company afloat. This type of policy, also known as business income insurance, can cover your financial losses by replacing lost income and help you continue to pay for your office space, employee salaries, etc.

Data Breach Insurance

If your company stores any private personal data or financial data, data breach insurance is crucial for your protection. Unfortunately, hacking is common and if you are hacked, your company’s private data may be stolen as well as confidential client data. This type of insurance will cover the damages due to a data breach.

General Liability Insurance

As far as business insurance coverage goes, this one is part of the first line of defense. In the event of a lawsuit, general liability coverage can cover the cost of an attorney. It acts to protect your business in the event of liability claims due to bodily injury, personal injury and property damage caused by your business.

Home-based Business Insurance

If you run your business out of your home, this type of policy may protect you. Homeowners insurance policies do not cover businesses run out of your home. If your office equipment is stolen or damaged, a home-based business insurance policy can cover your items.

Directors and Officers Insurance

If your company has a director or officer and they act inappropriately towards customers or employees or conduct business unethically, a scandal may be on your hands as well as a lawsuit. This type of policy will pay for legal costs and pay for the financial aftermath.

Life Insurance

A business can purchase life insurance for any employee that is considered essential to the company’s operation. For small businesses or family owned companies, this can be crucial to have if the person in charge passes away.

Product Liability Insurance

Does your business sell a product? If so, product liability insurance may be an asset for your company. If your product or service injures a customer, this type of policy will cover legal and medical fees. Additionally, if your product is defective and a class action lawsuit occurs, it’s smart to have insurance so you will be protected financially. Otherwise, your business may collapse.

What Type Do I Need?

There are four main types of business insurance that almost every company needs: workers compensation, property, commercial auto and liability insurance. It all depends on your business size, location, potential risks and revenue.

If your company has company vehicles, it is an absolute must to have commercial auto insurance. This will give your company and vehicles protection in the event of an accident.

Unless your business is private and located in Texas or Oklahoma, you will be required to have workers’ compensation insurance. These requirements vary by state. To make the process simpler, work with an insurance agency to navigate these requirements correctly.

How We Can Help

At Gebhardt Insurance Group, we have extensive experience insuring businesses just like yours. Whether you need small business insurance or have a large company, we can help you assess your risks and get you covered so you’re prepared in case disaster strikes.

Our insurance company will work tirelessly to help protect your business. Need help determining what type of business insurance you need or interested in additional coverages? Give us a call at 520-836-3244.

How Does Renter’s Insurance Work?

by

How Does Renter's Insurance Work

Many people do not think having renter’s insurance is necessary. While there may be several reasons for this, a common misconception is that their landlord’s insurance coverage will serve as a buffer to loss of damage to their personal belongings. This is not the case.

As such, when renting in Arizona, you should consider getting renters insurance. As you will see below, this helps cover for any unexpected financial responsibility you may face while renting in addition to many more benefits you may be eligible for when purchasing additional coverage.

What is Renter’s Insurance? How Does It Work?

Renter’s insurance is also known as tenant insurance. Renter’s insurance in AZ is a type of liability insurance and will protect your loss of personal property as well as from injuries and medical payments caused by named perils, whether they be brought about by weather or non-weather circumstances.

These insurance products also give individuals some of the benefits of homeowners insurance without the added cost of insuring the structure of the building. This structural insurance coverage is already in place through your lessor.

So what does a policy like this actually cover? Most importantly, the movables that you own in your rented space—computers, electronics, furniture, bikes, even your clothes and other belongings. Renter’s insurance will cover you from losses caused by events listed in your insurance policy such as: fire, storm, hail, lightning, flood, freezing, theft, vandalism, riot, and many more. Your renter’s insurance also covers expenses incurred when your dwelling becomes uninhabitable. Thus, the insurance company shoulders your expenses for repairs and alterations on your dwelling.

Finally, there are policies which even cover your hotel expenses, including your meals, if you need a place to stay while repairs are made on your rented place.

If you’re wondering what is covered, you can refer to your actual insurance policy for a complete list of covered losses.

Coverage Options

A renter’s insurance policy in Arizona has two types of coverage options to protect your personal property after damage.

The first one is Actual Value Coverage (AVC). This means that in the case of damage, you are repaid the depreciated value of your lost property.

The second option is Replacement Value Coverage (RVC). Here, you are paid for the replacement cost of a new unit. Experts say that RVC costs about 25% more than the AVC policy.

As a form of liability insurance, renter’s insurance policies in Arizona cover the full amount or a portion of your medical expenses and those of the people who are injured in the event or accident. Depending on the extent of your coverage, this may also extend to coverage for when your guests suffer from an unexpected mishap.

How Much Does Renter’s Insurance Cost in Arizona?

Many people think that renter’s insurance is not in their budget or is not a necessary expense. But it is! It really is!

According to the National Association of Insurance Commissioners, the average policy cost for an apartment is $184 per year, or about $15 per month. The coverage for such a policy ranges from about $30,000 to $50,000 for property, with a $500 to $1,000 deductible, depending on where you live. Such insurance also has $100,000 in liability coverage.

In a recent study, experts say that the average annual rate in Arizona ranges from $212 to $490. This covers a rental property of about 1,000 square feet of living space, $30,000 to $50,000 coverage and a liability insurance of $100,000.

Further, smaller cities and places just outside urban centers tend to have the best rates for renter’s insurance. The cheapest places for renter’s insurance in Arizona are located northwest of Phoenix and scattered across the southeast corner of the state.

Is Renter’s Insurance Required?

At present, no state legally requires renter’s insurance. However, there are certain lease contracts in which the lessors require the tenants to purchase renter’s insurance AZ for liability purposes.

Note that if your landlord acquired home insurance for the dwelling place, such policy covers only the building or the structure. The loss of your personal property inside the structure is not covered by your landlord’s insurance.

Moreover, your landlord’s insurance may not fully cover the damage for someone who is injured inside the dwelling place. Remember, a lawsuit of personal injury and the associated medical bills, can be very costly to you. Having renter’s insurance can certainly reduce such risk and can give you peace of mind.

At the end of the day, you have to realize that having renter’s insurance is an affordable way to cover your belongings and protect you and other people from unexpected damages and injuries.

Renter’s Insurance Casa Grande

You have the power and the ability to make things better after a mishap. You can protect the things which matter and which are important to you, and you certainly can have a new start after such mishap.

No insurance is simple. But as they say, with careful planning and with the help of your insurance agency, you can certainly make an informed decision in order to get a renter’s insurance in Arizona that gives you good coverage, and at the same time, keep your rate affordable.

Get a free quote from us today to protect your possessions. We’re happy to help answer any questions you have.

Renter Insurance Coverage

by

Renter Insurance Coverage

Across the country, there are approximately 43 million households who rent, which equates to about 37% of all households. Among homeowners, roughly 95% maintain a homeowner’s insurance policy; however, merely 40% of renters have rental insurance coverage. These policies provide coverage for incidents of theft, vandalism, fire, and other adverse events.

Renters insurance provides compensation to replace possessions, protect you from liability for injuries, and for temporary accommodations if the property needs repair. Renters insurance is among the most affordable types of insurance. Renters in the Casa Grande area are encouraged to contact the Gebhardt Insurance Group for assistance with rental insurance. We can also provide you with a comprehensive review of homeowners insurance and any other insurance needs you may have.

Current Market Trends (U.S.)

Many younger people (“millennials”) are choosing not to buy a home in the early years of their career. Homeownership among those under age 35 is now approximately 34%. This trend is attributed to several factors including increasing levels of student debt and stricter lending requirements regarding down payments. Approximately 56% of renters under the age of 35 do not maintain rental insurance. Roughly 40% of these individuals do not perceive a need for renters insurance.

Renters Insurance in Arizona

Arizona’s Department of Housing is responsible for the rights and obligations involving rental housing. These are contained in the Arizona Residential Landlord and Tenant Act. The provisions do not impose any mandates regarding renters insurance. A provision in the Arizona Association of Realtors template for lease agreements states they “strongly recommend tenants obtain and keep” this coverage. Landlords may require that their tenants have renters insurance.

Personal Property Protection

One key aspect of renters insurance is to protect your personal possessions in case they are damaged or stolen. Some examples may include electronics, furniture, and clothing. Some policies may also provide coverage for property items in off-site storage units. It is critical to gather an inventory of the items that you own for two reasons. First, to calculate the value of your property in order to be sure you select an adequate amount of insurance coverage. In addition, it is important to have documentation to support the existence of your belongings. This evidence may be proofs of purchase, receipts, and serial numbers. This information should be kept outside the home so that it is not potentially destroyed in a fire or other event.

Replacement Cost Coverage vs Actual Cash Value

A rental insurance policy will specify how compensation will be calculated for losses of property. Actual cash value is the most commonly used. It pays an amount that reflects the value of the item at the time of loss or damage. This calculation accounts for any potential depreciation of an item’s value since it was originally obtained. The replacement cost value is simply based on the original cost when the property was purchased. You should expect to pay at least an additional 10% to have replacement cost value coverage for your possessions.

Additional Coverage for Expensive Items

A rental policy will have a maximum amount of coverage available specifically for personal property. For items with significant value, such as jewelry, artwork, or firearms, you will need to address these individually with your insurance company. Typically, an “add-on” or endorsement is necessary and is available for an additional cost. Be sure to consult with your insurance professional for details regarding these types of coverage.

Certain Exclusions

Basic rental coverage is applicable to events such as fire, water damage, wind, hail, or lightning. Two natural disasters that are usually excluded from this coverage are earthquakes and floods. Those with a home office should also be aware that business-related property may not be covered. Other potential exclusions include if you accidentally misplaced an item or something is damaged by a pet. Carefully review the provisions of your policy agreement to verify these concerns.

Personal Liability

Rental insurance may also provide coverage in the event that someone is injured on your premises and you are liable. For example, if your dog were to bite a person. Some of the potential expenses that your policy may cover include the following:

  • Medical bills from diagnostics or X-rays
  • Emergency medical response and transportation
  • Medical payments from surgical procedures
  • Rehabilitation such as physical therapy
  • Compensation for lost wages due to an inability to work
  • Property damage that the party incurred

Interim Housing & Expenses

If an event renders your home uninhabitable a rental policy will afford you some benefit. For example, if a severe weather event were to severely damage the roof. Your insurance will compensate you for temporary alternative accommodations. This may include a hotel stay and daily living expenses while the property is undergoing repairs.

Premium Costs

The cost of a renter’s insurance policy is referred to as the annual premium. There are a host of potential factors that an insurer may consider when calculating renters insurance quotes. The value of the property that is being insured will generally be a primary factor. Some rental insurance policies may simply provide $5,000 to $10,000 in personal property coverage. Those in need of more coverage may extend to $40,000 or more. Insurers may consider your past claims history. Those who have filed an insurance claim in recent years are likely to pay higher rates. The credit history of the insured party may also be used in the formula for rate calculation. Data suggests that those with poor credit are more likely to file an insurance claim. Another element is the deductible selected for the policy.

Policy Deductible

The deductible amount is what the insured party must pay toward a claim. Deductibles are common in other areas of insurance including automobile and homeowners. Once this amount is paid “out-of-pocket”, the insurance coverage pays the remainder up to the policy’s coverage limits. Common rental insurance deductibles range from $500 to $1,000. Choosing a higher deductible will generally lower the policy premium.

Renters Insurance Premium[1]Annual Average
National (U.S.)$187
Arizona$195
California$207
New Mexico$183

Potential Discounts

Rental insurance providers may offer discounts to attract potential buyers. Those serving in the military or who are over 65-years-old may qualify for special discounts. Many insurers offer a discount when the policy is “bundled” with another form of insurance from the same company. Those who implement safety measures such as by adding deadbolt locks or a fire suppression system may also qualify for discounts.

Agency Provides Renters Insurance in Casa Grande

Are you aware of the importance of maintaining renter’s insurance coverage? This form of coverage will compensate you if your possessions are lost due to theft, fire, and other adverse events. Renters insurance may be critical when facing a potential lawsuit if someone is injured while on your property. Our team of professionals at the Gebhardt Insurance Group has been providing renters insurance for many years in the local community. Contact our office today at (520) 836-3244 to obtain a quote that is properly tailored for your protection.

Mobile Home Maintenance Tips

by

Mobile Home Maintenance Tips

Mobile home living allows its residents many of the same benefits as a conventional home but often times, comes with lower costs and less maintenance. While they do present fewer costs and problems, mobile homes still require proper inspections and regular maintenance to ensure livability and to make sure they pass home inspections like in traditional or site-built houses.Mobile home insurance is as equally important too. How can you maintain your mobile home properly? To help you keep your abode beautiful, healthy and in good condition, here are some mobile home maintenance tips you can follow.

Mobile Home Maintenance Inspection

Conducting regular inspection on your own is the practical way to do mobile home maintenance. Just simply check what’s off and not in your home. Take note of any damage or possible problem such as mold build-up or mildew. This way, you can prevent any further damage from occurring and you can seek professional help as early as possible. But of course, you also need professional home inspection by the experts once in a while.

Keep it Level

This is the most important action a mobile homeowner should take. If mobile homes are not properly leveled, various problems may arise, such as the occurrence of leaks, cracking of the wall or trouble shutting doors and windows. These are just some of the problems that you might have to face if you neglect mobile home maintenance. To prevent any of these from occurring and to properly maintain your home, it’s very important that you regularly or annually check your home if it is still “level.”

Keeping your home properly leveled prevents a host of other problems. If you notice that your windows or doors are not closing properly, that cracks are appearing in your walls, or that your floor squeaks excessively when you walk on it, your mobile home is probably uneven.

While it is important for the owners of site-built homes to check the level of their homes, this step is essential for the owners of manufactured homes, which are built in one place and then deposited elsewhere.

Whether your home is site built or manufactured, you should conduct a regular inspection to ensure that it remains level. If you find that your home is uneven, you can purchase a kit or hire a professional to help you even it out.

Keep the Skirtings in Good Shap

Homeowners often neglect the “skirting” or otherwise called “perimeter enclosure.” Skirting ventilation is highly important in mobile home maintenance.

While the skirting around your mobile home does add curb appeal, it is there for more than decoration. Skirting protects the foundation of your mobile home. It does not only act as an insulator, it also keeps pests away and prevents the growth of mold if properly ventilated.

This article from Hunker says that skirting “helps to maintain a steady temperature under the home to prevent freezing of pipes and high humidity levels that can lead to condensation and moisture problems that will potentially damage wood floors and support members.”

Whether you choose simulated rock or brick, or plain siding, you must maintain the proper skirting ventilation. See to it that you get proper ventilation in your home. The professionals have provided a formula on how to determine proper skirting ventilation. It is as follows: for every 150 square feet of space, there must be 1 square foot of venting. Moreover, avoid or prevent dead air pockets by installing vents within 3 feet of each other. Having the proper perimeter enclosure along with the correct square footage of venting allows you to protect your home.

Mobile home maintenance photo

Roof Maintenance

Just as with a conventional house, keeping the roof in good condition is important. The roof must be included in your list of mobile home maintenance habits. Mobile homes differ from conventional houses because they have flat roofs, which means that a leak can cause more water damage at a faster rate. It is important that you frequently assess the quality of your roof, even if you do not notice a leak.

Regularly check and maintain your roof. The maintenance depends on the type of roof you have. For example, if your home has a flat roof, it is advised that you must recoat or reseal it regularly, perhaps once a year. Using the right coating is also important as there are certain coatings that cannot be used on certain roofs. For instance, aluminum and asphalt coatings should not be applied on rubber or PVC roofs. Furthermore, make sure that there are no cracks in the caulking and that the flashing is in great condition.

Plumbing Tips

Mobile homes require different plumbing needs than site-built ones. However, both types of homes have more or less the same plumbing structures, such as drain line, supply line, pipes and such. The main difference is that in mobile homes, every water feature ideally should have a shut-off valve, particularly in the faucets and toilet. It is important that you know which part of your home these valves are located.

Use the Right Supplies

Mobile homes are usually built with different materials than conventional homes, which means that you will need to purchase unique, often difficult to find materials to maintain your home.

For instance, as this article from doityourself points out, fixtures such as doorknobs and faucets, and materials such as drywall and vinyling typically differ in mobile homes. As you are choosing materials to maintain your mobile home, remember to acquire the right types of products.

Mobile Home Insurance Coverage

Mobile home maintenance is highly important to keep the value of your property, and to ensure that you are always living in a safe, sturdy and healthy home. These mobile home maintenance tips should assist you in keeping your mobile home in pristine shape, but remember that problems eventually will arise. On top of these maintenance tips, you must not neglect insurance. Our passionate team at Gebhardt Insurance Group wants to help you find an insurance policy for your mobile home that gives you the coverage you need at a cost that you can handle.

If you are interested in purchasing a new insurance plan for your mobile home, get a free quote today. We want to find you a plan that not only meets your financial needs, but also adequately protects your home in the case of an emergency or needed repairs.

Homeowners Insurance Claims Process

by

Homeowners Insurance Claims Process

Enduring a disaster that damages your home can be a scary process. In just a moment, you could lose a part of your house, belongings in your home, or even the entire house. Filing a homeowners insurance claim is a daunting process that you must face after a disaster. If you have never had to file a claim before, knowing what steps to take can be difficult. To make this process easier, we will explain the typical insurance claim process for homeowners.

Filing a Claim

In the case that your home becomes damaged, the first thing you should do is determine if it is safe to return. You and your family’s safety is more important than your home or any damaged items inside.

Whether or not you can continue living in your home, you should begin evaluating the exact damage so that you know what to tell your insurance agency when you file your claim. To make sure that you have an accurate assessment, hire a contractor to inspect the damage.

If your home is damaged, it is important that you file a claim with your insurance company as soon as possible. The quicker that you get in contact with your insurance provider, the quicker you will receive the help you need.

With new technologies, there are plenty of ways to contact your insurance company to file a claim. Calling your insurance agent is usually the best and fastest approach. Either way, it is important that you document all of the damage.

What Happens After I File a Claim?

Once you file a home insurance claim, an insurance adjuster, who may also be called a claims adjuster, will connect with you to assess the cost of the repair. They will probably talk with you over the phone, as well as visit your home to assess the damage.

After the insurance adjuster has discussed the damage with you and evaluated your total losses, they will propose an appropriate settlement. If you accept, then you will typically receive the money quickly.

Sometimes, you will receive a check to cover the whole of your damages, but not always. According to the Insurance Information Institute (iii), the initial payment usually does not include the entire settlement amount. Many insurance companies will provide “an advance against the total settlement amount,” and then pay the rest later. This quick payment allows homeowners to make temporary repairs and cover immediate costs.

Even after you file the original claim, if the damage is severe enough to force you out of your home, make sure that you include additional living expenses on your claim. Things such as accommodations, rental cars, and meals from restaurants all fall under the additional expenses category that your insurance company should compensate you for. Keep track of your receipts so that you can verify to your insurance provider how much extra compensation you will require.

What Factors Affect the Homeowners Insurance Claims Process?

Not every insurance claim will yield the same results. Here are a few factors that typically play a crucial role in determining the amount of money you will receive.

Type of insurance coverage

There is one important distinction that will play a major role in determining the amount of your coverage: replacement cost vs. actual cash value.

  • Actual cash value: This type of coverage has less value, as the focus is on the monetary value of the items instead of how much you would actually need to replace them. The amount provided typically is not enough to replace the lost or damaged items, especially if they are older and have depreciated in value.
  • Replacement cost: This type of coverage does not consider the actual monetary value of each item, but rather how much it would cost to replace them. This option provides more comprehensive coverage that allows homeowners to recover faster.

If you lose your home and the items inside are damaged in a disaster, replacement value is the better coverage. However, this article from the balance says that replacement value often comes with caveats. For instance, “your insurance company may have the choice to only pay partial payments until you have replaced the item,” or they may only allow you to purchase your items at certain stores.

Home Ownership

There are important factors relating to the home itself that play a significant role in deciding the extent of your coverage.

  • Mortgage: If you are still making payments to a mortgage lender for your home, the check you receive from the insurance company will probably have your name and their name on it. Since the lender has a large financial investment in your home, they will want to ensure that it is repaired sufficiently and that its value does not depreciate.
  • Type of Residence: If you live in a condo or a co-op, even though you own it, your insurance policy will function differently. If you live in a condo and want to know how living in it will affect your policy and claim settlements, check out this article from the balance.
  • Renter’s insurance: If you are renting a home, condo, or apartment, you do not need to purchase a homeowner’s insurance policy. However, since your possessions would not be included on your landlord’s policy, renter’s insurance is a way to protect your belongings.

If you are unsure of whether the conditions on your current policy meet your needs, we can help. Our passionate, experienced team at Gebhardt Insurance Group will help you understand the homeowners insurance claims process and aid you in finding a plan that provides the perfect amount of coverage for you. Visit our website and receive a free quote today.