Many people especially first time home buyers should take the following advice when it comes to getting new Sarasota homeowners insurance: read the fine print before signing.
New homeowners tend to simply go for the cheapest price when it comes to homeowners insurance. Just ask anyone affected by hurricane Irene if that strategy paid off. A common feeling of “nothing ever happens were I live” can lead to just signing up for the least expensive policy. However many homeowners will fins out the hard way that a basic homeowners policy can have many short comings – it may only cover damage done in a very specific set of circumstances, have very high deductibles, and no standard homeowners insurance policy will cover flood damage at all.
The only time a homeowner has to ensure that their policy will protect their financial future against damage to their house is when they are selecting which policy to purchase.
Homeowners insurance policies can be pages long with many paragraphs of fine print. Much of the language in the policy is written in legalese and insurance jargon only a trained insurance agent will fully understand. As Such it is highly advisable to only purchase your homeowners policy from an experienced independent insurance agent who can fully understand and explain your coverage protection so you are not left liable for tens of thousands of dollars in damage and repairs to your home when the unthinkable happens.
Below is some information every homeowner should inquire about with their
insurance gent while purchasing their homeowners policy:
The "Act of God" Clause: Related to natural disasters like hurricanes, earthquakes or tornadoes. Some policies cover claims resulting from wind, hail, lightning and other "acts of God," while others specifically exclude these perils. Always ask your agent whether you have coverage for natural or environmental incidents.
The Actual Cash Value or Replacement Value: Of all the confusing terms likely to be encountered when purchasing homeowners insurance, the question of whether to insure for Actual Cash Value (ACV) or Replacement Value is one of the most important you will make. ACV is the replacement cost of the item when the incident occurs minus the depreciation. Replacement value is the full cost to repair or replace the property without deducting for depreciation. Depending upon the age of the property or items insured, the difference can represent tens of thousands of dollars in the event of a major loss.
Insurance Deductible: A deductible is simply the amount you will pay out of pocket before the insurance company begins to pay on a claim. It is often possible to lower the cost of insurance premiums by selecting a higher deductible; just be sure to set aside the savings to cover the cost of the deductible in the event of a claim.
Depreciation: Since all items tend to wear out, become obsolete or need repair over time, they are said to depreciate or lose value. ACV pays a claim based upon the depreciated value.
posted by Jim Valek on
Mon., Dec 19th, 2011 in
Homeowners
Insurance
insurance agencies
Why use an independent insurance agent?
Independent insurance agents are not limited to auto or home insurance from just one brand or large insurance company. An independent agent will obtain quotes from several different companies, some of these insurance companies may even specialize in writing policies in only your area and as a result can offer better premiums with the same or even greater coverage for the policyholder. Often the average person will not be aware of these smaller local companies because they specialize in working through independent agencies which can save them the high cost of advertising that the big national companies must absorb.
Value Is More Important Than Price
Never buy your insurance based on price alone. Many time the minimum legal amount of coverage will not cover your expenses in the event of an accident or disaster.
Your independent insurance agent can find you an auto insurance or
homeowners insurance policy that provides the right kind of protection for your needs. You want an insurance company that’s loyal and pays valid claims promptly.
A local independent
Sarasota insurance agent works for you and their long-term interest is in your satisfaction – not any one insurance company. As a result an independent insurance agent will provide courteous service, and go to bat for you when you need help or advice.
posted by Jim Valek on
Mon., Dec 19th, 2011 in
Insurance
insurance agencies
Before you pass papers on that new Sarasota home you will want to think about protecting your big investment with your new
homeowners insurance policy in a likely event that a disaster comes to call like wind, rain or volcanic eruption.
The financial safeguard against disaster, includes many losses that can be devastating to including property losses and injuries to third parties . While anyone can legally own a home without it, your friendly neighborhood mortgage lender will no doubt require this coverage for self-protection.
Here is what standard homeowners insurance policy covers:
Structural damage to the home.
This insurance pays to repair or rebuild the home if damaged by any of the disasters listed in the policy which will not include earthquake or flood unless purchased separately. Do not base rebuilding costs on the price you pay for the home nor include the land costs when you are estimating your coverage by the insurance company. You will need an amount of insurance that will be sufficient to rebuild the homes total square footage and those numbers can be found from building associations, realtors and insurance agents.
Loss of personal items
This includes up to 70% compensation for furniture personal items, clothing and keepsakes that were lost or stolen due to a disaster. Keep a good record of all the inventory or possessions and store it at an off location.
Liability
Financial protection against third party bodily injury or property damage might cause. Typical costs for this are usually around 100,000, but most experts recommend that you should carry at least three times higher value. Check into umbrella policies. These usually cover a higher compensation limit.
Additional living expenses-
Should you be forced to frequent a hotel or a restaurant or any other miscellaneous expenses should you be forced to live elsewhere while your home is rebuilt or repaired then you should purchase a policy and inquire about time frames and specific limits for what is and what is not covered.
Homeowners Insurance policy are determined by many factors such as the neighborhood crime rate and how prone the neighborhood is to crime and other disasters. The level of coverage also will make an impact.
Actual cash value
Replaces that home minus a deduction for depreciation
Replacement Value
Replaces that home and possessions without deduction for depreciation
Guarantee Replacement Cost
Pays whatever it costs to rebuild the home the way it was before the disaster.
Strategies for keeping your homeowners insurance premiums out of the stratosphere includes purchasing
homeowners insurance and
auto insurance from the same company that may offer discounts. For instance a homeowner might save upwards of 25% simply by raising the policy deductible from $500 to 1,000. Be sure to ask about other discounts as well.
Sarasota Homeowners choose your homeowners insurance carefully-
Save time by using an
independant insurance agent for homeowners insurance, solicit at least three policy quotes and be sure the company you do business with is reputable and will be around to pay future claims. Contact your state insurance department with any questions.
posted by Jim Valek on
Fri., Dec 16th, 2011 in
Homeowners
Insurance
insurance agencies
Policy Coverage
Home ownership is every American's dream. But buying that place of your own and settling down with your new found dream requires financial commitment. That means saving for your down payment finding the right loan for you and also finding affordable
homeowners insurance.
Whether you are a first home or a second home everyone will need insurance to protect their investments. That is where Valek insurance in Sarasota, Florida comes in. They are a community homeowners insurance company that prides themselves on helping their Sarasota neighbors.
With some basic how-tos, and many money saving insurance strategies and affordable quotes, protecting your home will be very easy.
Learning Homeowners Insurance Basics From Sarasota Insurance Agents at Valek
When you are buying your new home, lenders will require your information up front. To make things quick and easy, try contacting insurance providers online. Let them know what you're looking for, examine several price quotes and then choose the insurance that best fits your needs.
Once a policy is enacted, supply your lender with your insurers name and contact information, coverage levels and deductibles. They will add this information to the new home contract and escrow insurance as part of your monthly expenses.
If insuring an existing home, don't just stick with the same insurance company year after year if they are not providing you with the best possible coverage. Though commendable, loyalty may keep you from getting the best deal. Think instead about the current rates of insurance, make improvements and discuss discounts with home insurance providers. Then settle on the best insurance you can receive from Valek insurance.
posted by Jim Valek on
Fri., Dec 16th, 2011 in
Homeowners
Insurance
insurance agencies
Policy Coverage
Normally used to insure investment, rental, vacation or seasonally occupied homes, homeowners insurance is a type of homeowners policy that provides very basic coverage for the home at a minimal price.
What Makes Homeowners Insurance Different? Homeowners insurance is designed to protect the home against any physical damage caused by fire and other named events, this type of coverage covers:
- Usually insures the dwelling plus any other structures on the property, such as garages and sheds.
- Insures the landlords personal property used by tenants, such as furniture or appliances.
- Covers the landlords against loss of rental income when property is damaged and must be repaired.
- Usually offers no liability protection for injury damage to others ( unlike other homeowner's insurance polices)
- This type of home insurance plan provides minimal coverage at a much lower price than traditional homeowner's insurance policies. This is a great value for homeowners that have more than one home.
Who Needs Homeownes Insurance?
Homeowners insurance can be expensive but for those who acquire rental or investment property and do not need to insure other's personal possessions than a dwelling plan will work.
For those who live in two live in two or more residences a year than insuring both homes with a normal homeowners policy just doesn't make sense. High levels of coverage simply aren't needed most of the time nor are the high premiums.
Sometimes, this basic coverage also makes sense for homes that are older, lower in value or have minor cosmetic damage. Since a homes value depends largely on the condition of the house itself - an insurance premium reflects this value - homes that do not need repairs don't need as much insurance.
Please do not take chances with your homeowners insurance. Please call Valek insurance for your
homeowners insurance needs.
posted by Jim Valek on
Wed., Dec 7th, 2011 in
Homeowners
Insurance
insurance agencies
Whether you are a first time homebuyer or a veteran of many years for mortgage payments then chances are your home is your single most expensive item and your most valuable investment. Few homeowners ever think twice about their homeowners insurance or take the time to read their policy. Knowing what is on your policy and what is covered can make all the difference when disaster strikes.
The Basics of Homeowners Insurance
Homeowners insurance evolved in the late 1950s , when the insurance industry needed a single comprehensive policy to cover a house, its contents, and liability. Although there are over 900 U.S insurance companies writing policies, 80 percent are based on a form called HO-3, which provides coverage on the house and other structures for all risks excluded by the policy- most commonly floods and earthquakes. HO-2 is a cheaper, and HO-1 is a bare bones option that will only cover those risks that are specifically included. HO-4 is a policy that is designed for renters while HO-6 covers condominium owners.
What's Covered With A Basic Homeowners Insurance
Standard
homeowners insurance (form HO-3) customarily covers damage to structures due to fire, lightning: windstorm (including hurricane and tornado) or hail; explosion; riot or civil commotion; aircraft; vehicles; smoke; theft or vandalism (sometimes called malicious mischief); falling objects; weight of ice, snow or sleet; and freezing of plumbing, heating, air conditioning or other household systems. It also covers personal liability; if someone on your property injuries themselves. In fact your coverage is likely to be more comprehensive than on the list above. Many policies cover just about everything unless stated otherwise.
What Is Not Covered
Although floods and earthquakes are widespread in the U.S. the damage they cause is not covered by the standard HO-3 policy. Almost 90 percent of the U.S. lives in earthquake -prone areas. Since the 1900s almost all states have had an earthquake. If your home is located in a flood prone area, then you are 26 more times likely to suffer a flood loss than a loss from fire. Of course, the cost of flood and earthquake coverage reflects the high risk involved. If you live along the shoreline then you will have to pay a higher premium than someone who lives along the mountains.
There are other exclusions that include neglect, intentional loss, earth movement, general power failure and even damage caused by war. A costly exclusion is the ordinance or law exclusion, which refers to new building codes that can drive up the cost of rebuilding or repairing. If you discover when replacing damaged property that current law requires higher grade wiring the difference in cost is your responsibility.
Loss and Recovery
The value of real property- your home, garage, shed and other structures- is generally based on the value of your house. Homeowners insurance also covers your personal property, including the contents of your home and any belongings you or the members of your household use, own, wear or carry-basically the whole house. This coverage is also based on your homes coverage, and there are limits on the losses that can be claimed for certain items such as cash, furs, or jewelry- limits that can be increases are supplemental premiums. You can also pay additional premiums to cover living expenses if your home is not habitable for a period of time.
Most insurance companies now offer replacement coverage. Replacement cost coverage helps families rebuild their damaged homes without depreciation or a deductable. In the case of a TV if the value has depreciated 50 percent, actual cash value coverage for the replacement cost would only be $250. An upgrade from the actual cash value to replace coverage typically raises your premium by 10 to 15 percent.
If one were to suddenly lose your home due to fire or a tornado or have the contents damaged or stolen, you probably could not afford to replace everything all at once. By becoming familiar with your homeowners policy, you will be sure to have the coverage you need when you need it.
posted by Jim Valek on
Thu., Oct 20th, 2011 in
Homeowners
insurance agencies
Policy Coverage
With many insurance companies out there promising savings from a fifteen minute phone call you may ask the question "Why should I use an independent insurance agency and not just call up the company directly?" And that is always an option for drivers seeking new insurance quotes, however considering how complex and full of legalese insurance coverage policies can be the fast cheap quote may leave you under insured and expose you and your loved ones to both financial risk and leave you less secure.
Many large insurance companies agents are trained to get you in the door with a quick and painless sale, but only an experienced insurance agent will know what coverage you should really have for your situation to strict the correct balance of financial security and affordable premiums. Things get even more complicated when you are insuring your home. Homeowners insurance plans especially those super cheap ones from citizens or other state run companies will get your bare minimum for homeowners insurance but frequently leave you exposed to a variety of costs you may not be aware of.
Many costly non-disaster related problems can, and frequently do come up for homeowners, so be aware of what your homeowners insurance policy will, and will not cover before making a decision. Floridians don't have to look to far to find an example of a very costly non-disaster related problem - two words that strike fear into the heart of Florida homeowners across the state - "Chinese Drywall". For many the cost was not something they could afford to fix and as a result were forced to walk away from the property and end up in foreclosure. With such examples out there homeowners need to pay very close attention to the coverage in their homeowners policy.
As a family owned independent
insurance agency located in Sarasota Florida, the insurance experts at Valek insurance will work for you to both locate the best quotes for your insurance needs from a large group of carriers and underwriters as well as explain the coverage and premium costs in detail so you are educated about what your coverage will protect and what any costs may be should an accident or disaster or other costly issue result in a claim.
Don't be drawn into purchasing an inferior policy that leaves you exposed, work with an independent insurance agency to get the best insurance protection for your money.
posted by Jim Valek on
Tue., Oct 11th, 2011 in
Car Insurance
Homeowners
Insurance
insurance agencies
Insurance Company Industry News
There are numerous independent insurance agents prepared and willing to help you find an
auto insurance policy, but not all of them are the same. Several factors must be taken into consideration before you select your agent. Below are some tips to help you find the car insurance agent that's right for you.
Find the best priced coverage. Auto insurance expenses depend on several factors, such as your deductible, payment limit, driving record, location and coverage type. People often search for car insurance agents that offer the cheapest coverage. While it's a good idea to research several insurance companies and get their price quotes, you also need to know how they handle and treat their customers.
Check for customer satisfaction. It's important to select an auto insurance agent who works for a company that provides exceptional customer service. When it's time for you to file an insurance claim, you want your agent to quickly process it and cover the full costs. Visit the Standard & Poor's website to check on a company's ability to fulfill a claim. Just click the "ratings" section in the navigation bar, and select "property/casualty" under insurance. The site provides a comprehensive list of insurance companies with their respective ratings. Additionally, your state's Department of Insurance website provides you information on a company's performance based on received complaints. This is a great way to find out which company is truly meeting customer needs.
Confirm the insurance agent's license. Visit your state's Department of Insurance website to check that your agent is licensed to work in your home state. Many insurance companies only operate in certain states. Additionally, these websites will provide links to help you look up an agent's licensing history and find a company representative in your area.
Get to know a company's reputation. Select a car insurance agent who also works for a reputable company. A large and loyal customer base is usually a good indicator for a company's reputation. You can find this out by checking if a company provides other types of insurance other than auto. An insurance company that covers many areas is well-established in the market. Popular companies are also more likely to offer better discounts.
Ask a mechanic or friend. People who have had experiences with auto insurance companies and agents may provide the most valuable information. Insurance agents give body shops permission to repair cars on a daily basis. As a result, managers from auto body shops often know which insurance companies are better at handling claims. You should also ask trustworthy friends and family who already have auto insurance agents. Their experiences can be an accurate reflection of the insurance company.
A great auto insurance agent is one that provides well-priced coverage, maintains high customer satisfaction and works for a reputable company. Remember to consider these factors when looking for a car insurance agent.
posted by Jim Valek on
Tue., Sep 27th, 2011 in
Car Insurance
Insurance
insurance agencies
At this day in age most people want to know what the benefits for
life insurance are. Life insurance benefits are payments paid by the benefactor to the beneficiary in accordance with the agreements to the two parties. This insurance unlike all other kinds of insurance is usually released by the insurance company to the family members on behalf of the beneficiaries death.
Life insurance benefits are very important and people are usually urged to sigh up for them because they can cover the costs of burial and funeral arrangements of the deceased. Other uses may include; expenses extended to memorials of the deceased as well as past bills which were probably unpaid before the beneficiary died.
The benefits of life insurance can also be used for covering your families needs. For example if you have a child in school these funds could be used to cover the costs of school fees, college fees and other requirements that a child may need. All of these benefits could also act as a source of inheritance. One may choose to refuse their insurance benefits it is usually uncommon though. This is usually conducted under specific contracts which are usually signed by filing a disclaimer report that may state that the benefits could be awarded to the next person on the list. This is not a very common occurrence because families have children that need the money from inheritance.
One might want to ask the question; what are the benefits of life insurance and could it be actually part of a will? The answer to this question can be based on the need to understand the general importance of these benefits. On the signing of a policy the rightful person will received the funds mentioned and thus this will direct the person to a couple of instructions that describe on what he or she could do with the funds. Insurance benefits are usually not important and the reason for their creation is to help make sure that people don't spend money without investing on particular needs that they could actually call upon in the case of a medical or life insurance.
posted by Jim Valek on
Fri., Sep 23rd, 2011 in
Insurance
insurance agencies
Life Insurance
Sarasota insurance agencies can be a huge asset for their clients. They use an extensive network of insurance providers and companies to get the best prices for each of their customers. Independent agencies have a comprehensive network of carriers to choose from whereas agents from a single large company like allstate or statefarm will work with only one provider. Independent insurance brokers work on a commission basis to receive the best deals for their clients and to settle claims. All brokers require training and they have to get the proper licensing for operations.
There are many forms of insurance options for people looking to feel their insurance needs.
Life and health insurance are just two options out of many that a consumer can look for also, small employers can offer their employees a plan on their own. The local
Sarasota insurance company may even provide other services such as enrolling the workers on the plans. Other insurance brokers may supply investment opportunities. And, not to be forgotten is pet insurance for the four-legged members of your family.
Independent Insurance agents can find the most comprehensive policy for your financial situation. Whether the clients require
homeowners insurance or
renters insurance it is important for you the consumer to get the best policies and coverage at the lowest price. But first the client needs to ensure that they are working with the most reliable insurance broker. They should look on the website for testimonials for trustworthiness. Also, checking with the better business bureau will help to ensure that there are no claims against the broker. And online resources are important for comparing insurance brokers and their rates. Quite often a quote can be found that can rival the competitors.
Next, clients want to be assured that their insurance agent is listening to them. They will be able to assist in ways to reduce risk. A simple example of this is by adding gear to a car that would help reduce theft percentages. As well, if they use transit for work from home, they will get a reduced rate when compared to clients who commute many miles to and from work everyday. Also the personal insurance agent can give good advise on new vehicle purchases, such as the higher premiums which will result if a luxury car is purchased as compared to a modest sedan. Insurance agencies who are selling homeowners coverage need to ask many questions when they are attending to a clients needs. Do clients have security alarms? What type of roof do they have? What are the risks of fire, freezing, pipes or floods? The answer to these questions may help reduce your premiums.
For a local business community and economy as a whole to thrive there needs to be adequate risk management. While anyone can call an 800 number and get 15 minute insurance policy, it is more important to get a policy that covers the realistic needs of a policy holder after an accident rather than just the lowest price or the fastest quote.
Maintaining effective levels of risk management is helps support a healthy economic climate. Just look to the underinsured flood victims and devastated business owners of Hurricane Irene if a bottom of the barrel price and 15 minute quote helped them out in the end.
posted by Jim Valek on
Thu., Sep 22nd, 2011 in
Insurance
insurance agencies
