The lowest mortgage rates in more than three decades have fueled America’s appetite for home buying and refinancing, driving new home sales to a record level . Buying a home can be an intimidating process. As a first-time homeowners you may feel overwhelmed by the number of decisions you are faced with, including choosing the right insurance coverage to protect their property. Take the time to find out what you need to know to protect one of your most important assets.

A home is often a person’s largest asset and protecting it properly can be complicated. The unexpected can threaten your home or possessions and compromise you financially, making homeowners insurance an important consideration.

Farm Bureau Insurance developed the following guidelines to ease the process of choosing the right insurance for new homebuyers.

As a first-time homebuyer you may not realize that homeowners insurance covers more than just the structure of a house. It also protects the homeowner and generally anyone named on the policy, including a spouse, resident, household employee, guest or visitor. Most policies offer three kinds of protection:

1. Structures – A homeowners policy protects a person’s dwelling for damage due to common threats like fire and smoke, lightning, theft and extreme weather. Under “Special Perils” unless it is listed among a policy’s exclusions, anything that causes loss to a homeowner or his property is covered. To cover the exclusions, homeowners can often pay to add endorsements to their policy, although some exclusions, such as flood damage, may require the purchase of a separate policy.

• Coverage Amounts – When choosing coverage amounts, people should remember they are protecting the entire home, not simply the amount remaining on the mortgage or their equity in the building. This is especially important in today’s market with so many homes selling for much less than they would cost to build them.

2. Personal Property – Family possessions and personal property also are covered by homeowners insurance. In most cases, a policyholder will be reimbursed for damage or theft of personal property, whether the loss occurs on the protected premises or elsewhere. Recalling each item in every room can be difficult, however, so policyholders are encouraged to make an inventory of their belongings – recording the serial numbers, as well as the dates and costs of purchases for possessions such as jewelry, artwork, furniture and appliances. Personal inventories should always be stored in a fireproof safe or away from the premises, such as on videotape or a computer that is not in the house. Your agent’s office may be a great place as well.

• Coverage Amounts – Typically, the insurer sets the total value of possessions at half of what the home is insured for, some use 70%. But there are limits for certain items and the amount may not be sufficient to cover the replacement of property, so homeowners may want to purchase additional coverage for their possessions. Review of a homeowner’s personal inventory is the best way to determine whether his coverage is sufficient.

3. Liability – Homeowners insurance also provides compensation for liability claims and medical expenses, as well as other claims that result from property damage and personal injury suffered by others. This coverage applies whether an accident occurs on the policyholder’s property or while away from home.

• Coverage Amounts – The standard amount of liability coverage is $300,000 on a typical homeowners policy. If a homeowner feels that the standard amount may be insufficient, he should consult an insurance professional about the availability of a higher level of coverage.

After establishing a policy, homeowners should periodically review their existing coverage to make sure that it keeps pace with any major purchases or improvements they make to their homes. Securing the right insurance policy at the right price is an important step in the home buying process, so homebuyers should shop around for a policy that best suits their needs and protects their most valuable asset appropriately.

As a property and casualty insurance agent I do my best to contact my clients periodically to ask them to come in for a review. Unfortunately, many clients feel they are too busy or that it’s not important enough to take the time to review their policies.

Here’s a few reasons you should have a review with your agent annually;

1. You may have added value to your home. (New deck, addition, garage, etc.)

2. You have bought new jewelry, guns, silver, or furniture.

3. Your home value and what your home is insured for may not be the same.

4. You may have a new agent. Make sure he knows you and understands what is important to you.

5. You may want to look at additional coverages such as Glass Breakage, Sump Pump coverage, coverage for a business in the home etc..

I strongly suggest a review all your insurance policies with your agent regularly. If you have an gennt who won’t do this for you, get another one. The cost of not doing this could be more than you’d want to pay.

Please feel free to call me for additional information. I can be reached at (231) 744-9099 or through my website at www.muskegonhomeownersinsurance.com

Farm Bureau Insurance of Michigan offers discounts for having more than one policy like others do. However, they’ve extended it to include different types of business policies.

If you have a Workers Compensation Insurance policy and a Business Auto Insurance policy you can receive a discount on both.

If you have a Homeowners Insurance Policy and an Auto Insurance policy you normally get a discount. Now either or both of them will get you a discount on your business policy. These discounts, in the right combination can save you up to 15% on some of your business insurance policies.

Give me a call to schedule a review of your current Business Insurance policies and we’ll see which discounts you are qualified to receive.

I can be reached at (231) 744-9099 or you may start with a look at www.muskegoninsuranceagent.com

1.To an insurer, you’re not a just person;

you’re a set of risks. An insurer bases its homeowners insurance premium (or its decision to insure you at all) on your “risk factors,” including your occupation, who you are, what you own, and how you live.

2. Know your home’s value.

Before you choose a homeowner’s policy, it is essential to establish your home’s replacement cost. A local builder can provide the best estimate. Also, your agent should have a replacement cost calculator.

3. Insurers differ.

As with anything else you buy, what seems to be the same product can be priced differently by different companies. A good local agent can make a world of difference.

4. Don’t just look at price.

A low price is no bargain if a home  insurer takes forever to service your claim or if a 1 800 number is all you have for an agent. Research the insurer’s record for claims service, as well as its financial stability. (The Ward’s Group is a great place to look)

5. Go beyond the basics.

A basic homeowners policy may not promise to entirely replace your home.

6. Ask about discounts.

Insurers provide discounts to reward behavior that reduces risk.

However, Americans waste some $300 million a year because they forget to ask for them!

7. At claims time, your insurer is looking for the facts.

Keep records and receipts. (keep a copy off premesis) Your idea of fair compensation may not match that of your insurer. Your insurer’s job is to restore you financially. Your job is to prove your losses so you get what you need.

8. Prepare before you have to file a claim.

Have an inventory of your personal belongings. (Stored somewhere other than your home)

9. Demand an annual review.

Keep your policy updated, and reread it before you file a claim so there are no surprises. Many people are upset and embarrassed when they try to file a claim and find they have no coverage for a particular loss.

If you are in the Muskegon area and if your agent doesn’t conduct regular reviews or you don’t feel you know where where you stand, just give me a call at (231) 744-9099 or start with a visit to www.muskegonhomeownersinsurance.com

Most of us know the main reason for buying homeowners insurance is to have our homes rebuilt in case of a major catastrophie.  What I’ve learned is that many people don’t understand the importance of the Medical Payments to Other or the Personal Liability parts of their policy.

Medical Payments to Others covers small medical bills of a guest who is injured on your property. It covers on an “Excess” basis. That means that if your guest has health insurance it would pay first. This coverage is usually only $1000.  I would suggest raising it to $3-$5000. I want to be sure that if there’s an ambulance involved that there’s still enough money left to take care of the small things like stitches or setting a broken bone without having to besued or paying the bill out of my pocket.

Your Personal Liability helps pay the cost of your defense if you were to be sued. It also pays for things medical bills in access of what the Medical Payments to others covers

I had an attorney explain it this way; when you get sued, you have to disclose all of your assets. You not only have to disclose it to the judge and your attorney, but to their attorney as well. That’s right, they know about your 401(k), your investments, your CDs, Life Insurance, rental properties etc..

The best thing to do is to make sure that your Personal Liability limit is set well above your net worth (everything you own minus everything you owe)

We’ll talk more about this in person if you like. Jst give me a call at (231) 744-9099 or just start by checking out www.muskegoninsuranceagent.com

You’ve unpacked your things and settled into your new home. But have you thought
about how this will affect your insurance needs? Buying a home involves more
than just making sure you have homeowners insurance coverage. If you’ve recently
purchased a home, here are some types of insurance that may be impacted by your
recent move.

Homeowners insurance
If you have a mortgage, your lender probably required you to obtain some level
of homeowners insurance coverage. However, you’ll want to make sure that the
amount of coverage that you have will adequately protect you for all possible
losses. Homeowners policies set coverage limits for specific items (e.g., jewelry),
so you may want to look into purchasing a separate endorsement or a floater
if you feel that you need to increase your coverage. You also need to know if
you have “replacement cost” coverage on your personal property and
if you are covered for earthquake damage.

Flood insurance

Homeowners insurance does not provide coverage for flood damage. But those
living on a riverbank or near the ocean are not the only ones who warrant flood
protection. Even if you live in a low-lying area (e.g., near a creek), you may
want to look into purchasing flood insurance. Most companies that sell homeowners
insurance also sell flood insurance, so try contacting your own insurance company for more information.

Auto insurance

If you think that there is no connection between buying a home and auto insurance,
think again. If you’re ever in an auto accident that is the result of your negligence,
all of your assets (including your home) could be subject to liability claims
if the claims exceed the liability limits of your auto insurance policy. So,
you should re-evaluate the existing liability limits on your auto insurance
policy to make sure that you have adequate coverage to protect your home. If
you feel that you need even more coverage, you may want to look into purchasing
a separate umbrella liability policy, which would pay for damages that exceed
the coverage limits on your auto and/or homeowners insurance policy.

Disability insurance

Would you be able to make your monthly mortgage payments if you were unable
to work due to an accident or illness? A disability insurance policy will pay
you a monthly benefit to replace a portion of your income until you are able
to work again. Many employers provide disability insurance for their employees.
If your employer does not offer disability insurance or if you are self-employed,
you can purchase an individual disability policy.

Life insurance

What if you were to die before your mortgage was paid off? Would your family
be able to keep up with the remaining mortgage payments? Life insurance can
provide your family with the funds to pay off their debts, as well as replace
a portion of your income. While many employers offer some level of life insurance
coverage to their employees, this amount of coverage may not be enough to provide
financial security to your family. So, you may want to consult an insurance
professional to help you assess your family’s life insurance needs.

Contact me at (231) 744-9099 or www.muskegonhomeownersinsurance.com

Have you ever reviewed your Homeowners Insurance?
We have a history of helping our clients with reviews for years. There are several good reasons for this.
The first is; it’s your home. You know what’s in it, what work you’ve done to it, what other buildings you’ve built, etc..
Secondly, as I always say to my clients, “I don’t want you to ever have to come back in my office and say “Hey, I thought this was covered!”"
Third, saving money on your insurance. As you get more established, you may feel more comfortable taking on a little more risk. By raising your deductible you could save a substantial amount of money over time.
There are more reasons than I can go into now but please give me a call at (231) 744-9099 or checkout my website at www.muskegonhomeownersinsurance.com

When shopping for home insurance, there’s much more to consider than how much your coverage will cost.

Check out www.muskegonhomeownersinsurance.com or contact me at 231-744-9099

You need to buy the right type of policy. You need the proper level of protection, plus special provisions for valuables such as jewelry, your computer equipment and other possessions. You might also need additional coverage for such things as earthquakes or flooding.

Lending institutions usually require mortgage customers to purchase homeowners insurance. Don’t rely on the coverage levels mandated by your bank or mortgage company. Those levels are designed to protect the house itself, but not necessarily your possessions. That’s why it’s important to check with your agent or insurance company to make sure you have adequate coverage.

Lenders don’t always require Mortgage Insurance but your family may need the home paid off if you die. You need to ask yourself if they could afford the mortgage payment without your income?

The terms of standard home insurance policies have been defined by the Insurance Services Office (ISO), so standard coverage is not going to vary from company to company, although rates will. There are three primary types of situations that enable a homeowner or renter to be eligible for a policy:

* Owner-occupants of private homes: Individuals and families who own the private home in which they reside.
* Tenants of residential premises: People who rent or lease the premises where they reside.
* Owners and owner-occupants of residential condominium units: Individuals and families who own private condominium units used for residential purposes.

Homeowners policies can also provide limited property coverage for incidental occupancy, which is the use of the residential premises for purposes not residential (such as a home office or studio). This can be done only as long as two requirements are met: the premise must be occupied principally as a dwelling, and the premise cannot be used for any business purpose other than the incidental occupancy.

Basic policies

Perils covered in HO-2, HO-3, HO-4 and HO-6 policies:

# Fire or lightning
# Windstorm or hail
# Explosion
# Riot or civil commotion
# Damage caused by aircraft
# Damage caused by vehicles
# Smoke
# Vandalism or malicious mischief
# Theft
# Volcanic eruption
# Falling objects
# Weight of ice, snow, or sleet
# Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, or automatic fire-protective sprinkler system, or from a household appliance.
# Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire-protective system.
# Freezing of a plumbing, heating, air conditioning or automatic, fire-protective sprinkler system, or of a household appliance.
# Sudden and accidental damage from artificially generated electrical current (does not include loss to a tube, transistor or similar electronic component).

Each homeowners policy provides a combination of property and liability coverage and covers loss of use resulting from damage. There are several basic types of home insurance policies:

HO-1

* Note that HO-1 policies have been discontinued in most states.
* Basic homeowners policy.
* Covers your house and possessions against 10 different perils.

HO-2

* Broad homeowners policy.
* Covers house and contents against 16 perils.

HO-3

* Special homeowners policy.
* Covers all perils except those specifically excluded by the policy.

HO-4

* Renters policy.
* Covers 16 named perils and includes liability coverage. It does not insure the dwelling itself.

HO-6

* For owners of co-ops or condominiums.
* Provides personal property coverage, liability coverage and specific coverage of improvements to the owner’s unit. Insurance provided by the owner’s association normally covers most of the actual structure.

HO-8

* Policy for older homes.
Covers the same perils as HO-2 but pays only for repair costs or actual cash value, since replacement cost could make the policy costly.
* Well-suited for older homes whose market value is considerably less than the cost to rebuild them.

Every homeowners policy has three preliminary sections (declarations page, general agreement, and definitions) as well as two coverage sections (Coverage A, B, C, or D).

In the preliminary section, the declarations page contains the policy number, period of coverage, insured’s name and address, agent’s name, limits that apply to the coverage, additional insureds (if any), premium amount, etc.

The general agreement works as a preface to the entire policy and states that the insurer’s coverage and obligations to the consumer depend solely on the insured’s ability to pay the premiums and comply with the policy’s guidelines.

The definitions section contains multiple parts.

The first part explains that “you” and “your” in the policy refer to the named insured, while instances of “we,” “us,” and “our” refer to the insurance company. The second part lists and defines commonly used terms associated with the policy and the coverage.

Starting an application

When you apply for homeowners insurance, you’ll provide a great deal of information. The insurance company will ask you about your current occupation and employment history, marital status, previous addresses, date of birth and Social Security number. The insurer will check your criminal, credit, and insurance history to see if you are a “good risk.” The insurance company also will look at your “loss history” to see what kinds of home insurance claims you’ve made in the past.

Then you’ll have to decide what type of homeowners policy you want, your preferred deductible, and how you’ll pay for the coverage (in full or in installments). Your agent or insurance company will determine how much it would cost to replace your house and many of the items inside. For more expensive property, such as jewelry and computer equipment, you will need special coverage in addition to the basic policy.

Analyzing your home

Many factors go into determining the premiums for a homeowners policy. The age of your home, the materials used to build it, where it’s located, the square footage, and the number of rooms all play a role.

How do you heat your home? What’s the overall condition of the house? How many people live in your home? How close is your home to the nearest fire station and fire hydrant? The answers to these questions also help determine how much you’ll pay for your homeowners policy.

The insurer will be able to give you an estimate for rebuilding your house in the event of a total loss. Remember, this is the rebuilding cost based on local construction costs, not the market value of your home.

Ways to save

Ask about discounts for:

Multipolicy (home, car or other policies with the same company)

Smoke detectors

Fire extinguishers

Sprinkler systems

Burglar and fire alarms that alert an outside service

Deadbolt locks and fire-safe window grates

55 years old and retired

Long-time policyholder

Upgrades to plumbing, heating and electrical systems

Earthquake retrofitting to make the home safer

Wind-resistant shutters

If your home is equipped with an alarm system, smoke detectors and deadbolt locks, you could save money. Those items help make your home safer and more secure. If you have an in-ground pool or a trampoline, you might pay higher premiums. Removing trees from striking distance of the residence can also help save cash. You can also expect to pay more if you are located in a higher risk area, such as a coastline. Your insurance company will also want to know if you plan to use the home for any business purposes, of if you plan to rent all or part of the house, both of which can increase liability.

Armed with all this information, insurance companies determine how much to charge you for insurance.

Your policy´s dollar limits are important.

If you insure your house for $100,000, that´s the most you will get if it is destroyed, even if it would cost more to replace it. The Declarations Page on the front of your policy shows how much coverage you have. Talk with your agent or company representative if you have any questions about your insurance limits.

Don´t wait until you have a claim to learn your policy´s limit.

Replacement cost coverage for your personal property

The extent of coverage provided on various homeowners policies depends on the loss settlement clause. This clause identifies property that will be valued at actual cash value, and property that will be valued at replacement cost.

Before buying homeowners insurance, you need to understand the difference between “replacement cost” and “actual cash value.” I’ll help you with this.

Homeowners policies automatically cover household contents — furniture, clothes, appliances, etc. — up to 40 percent of the amount your house is insured for. This means if you insure your house for $100,000, its contents are insured for up to $40,000. You can get more coverage by paying a higher premium. This automatic coverage pays only the actual cash value of damaged, stolen, or destroyed household goods. Actual cash value is an item´s replacement cost, minus depreciation.

Replacement cost policies give you more protection than actual cash value coverage. For example, what happens if a burglar steals your six-year-old television set. With actual cash value coverage, you get only what you would expect to pay for a six-year-old television set. With replacement cost coverage, the insurance company pays to replace your TV with a new set similar to the stolen one.

Guaranteed replacement cost coverage pays for the full cost of replacing or repairing a damaged or destroyed home, even if it is above the policy limit. Farm Bureau offers this coverage.

Extended replacement cost coverage pays a certain amount above the policy limit to replace a damaged home, generally 120 or 125 percent. It is similar to a guaranteed replacement cost policy, which has no percentage limits. Most homeowner policy limits track inflation in building costs. Guaranteed and extended replacement cost policies are designed to protect the policyholder after a major disaster when the high demand for building contractors and materials can push up the normal cost of reconstruction.

Take inventory

Many people learn after a fire or storm they didn’t have enough personal property coverage. Taking inventory will help you decide how much insurance you need. It also will simplify claims.

Your inventory should list each item, its value, and serial number. Photograph or videotape each room, including closets, open drawers, storage buildings, and your garage. Keep receipts for major items in a fireproof place.

The Insurance Information Institute has helpful free software that will help you make a home inventory at KnowYourStuff.org.

What other protections does my policy provide?

Additonal coverages available

# Replacement cost for possessions
# Extended or guaranteed replacement cost for the structure
# Building code upgrades
# Sewer and drain back-ups
# Inflation-guard
# Umbrella coverage for a pool or other high-risk items
# Special riders for jewelry, collectibles and expensive items

Homeowners policies regularly provide other types of coverage, including off-premises theft protection and unauthorized use of your credit cards. Make sure you understand which provisions are included in the standard coverage you elect to purchase and which might require supplemental premiums.

Supplemental coverage

Homeowners policies cover specific risks. Depending on what you own and where you live, you might need to supplement your policy with special coverage.

Flood insurance

Homeowners policies do not cover flood damage. The National Flood Insurance Program (NFIP) offers flood coverage in many areas. I sell NFIP flood policies and can tell you about the program in your area, or you can contact the NFIP at (888) 379-9531 or at floodsmart.gov.

If a mortgage lender determines a home is in a special flood hazard area, the borrower might be required to purchase flood insurance.

Earthquake insurance

If you are concerned about earthquakes, you can get coverage with a separate policy.

Extra coverage (endorsements)

Homeowners policies contain exclusions and limitations for some types of personal property that are particularly susceptible to loss. Some homeowners policies place a specific dollar limit on certain property such as jewelry or antiques.

You might want more coverage for certain items than your policy provides. For an extra premium, you can buy endorsements that expand or increase the coverage on these items. Some of the most common endorsements cover jewelry, fine arts, camera equipment, coin or stamp collections, computer equipment, and radio and television satellite dishes and antennas. To insure that these types of items are properly covered, look into a “scheduled personal property endorsement.”

A scheduled personal property endorsement is characterized by broad coverage and flexibility. This policy can be purchased separately as a “personal articles floater” policy or endorsed to your homeowners policy. A floater policy designates coverage for items that are likely to experience frequent movement from one place to another such as (but not limited to) cameras, jewelry, musical instruments, golf equipment, silverware, furs, etc.

Personal umbrella liability insurance

If you want more liability coverage than a homeowners policy provides, you can buy a separate umbrella policy. Because policies vary, make sure the agent or company fully explains the coverage.

Higher deductibles, lower premiums

Your home insurance deductible is the amount you pay for covered damage before insurance kicks in. You can generally choose a higher deductible in order to lower your premiums if you don’t mind taking on the added risk. Ask your insurance agent to give you price quotes for a range of deductibles to see how much you’d save.

Usually a deductible is a flat rate, such as $1,000. But many insurers are introducing “percentage deductibles” around the country, especially for policies covering earthquakes, hurricanes and windstorms. These policies make you liable for 1 to 5 percent of your home’s insured value before the insurance company pays. So, if you have a 2 percent deductible and your home’s insured value is $250,000 (remember, that’s the cost to rebuild, not your home’s market value), you’d have to pay the first $5,000 in damages.

Some homeowners are switched from flat-rate to percentage deductibles at renewal time and may not be aware of the change. Make sure to read special notices sent by your home insurer and your “declarations page” at renewal time, or call your agent to check on what kind of deductible you have.

Bad credit could cost you

Some insurance companies might charge you higher premiums if you have problems with your credit history. Insurers say past experience has shown people with financial problems pose a greater risk.

Former California Insurance Commissioner John Garamendi thinks basing insurance premiums on credit scores is wrong. “Over the last year, we have witnessed a dramatic turn in the homeowner insurance market leaving some homeowners unable to find affordable insurance and still others struggling to secure any coverage on the open market,” says Garamendi.

“An insurance score is different from a credit score,” explains Jeanne Salvatore of the Insurance Information Institute. “An insurance company uses credit information, together with your insurance history, to predict whether you are more or less likely to file a homeowners claim,” adds Salvatore. “This allows them to provide insurance to more people and to offer it at a lower cost to those who qualify.”

Recently, Farm Bureau Insurance conducted their own study and found that about 67% of their policyholders would have a premium increase if the state of Michigan did away with allowing us to offer this discount.

Remember to do extensive research into the various homeowners policies before deciding which one is right for you. Your home and its posessions are an investment which deserves the very best, so shop around and select the coverage that provides the most accurate coverage for your needs.

HO-A

If you are purchasing or refinancing a home, you’ll get homeowners insurance but you may be wondering if you need mortgage life insurance. Mortgage life insurance is a type of insurance that pays off your mortgage in the event you die. As with any type of life insurance, mortgage life insurance is purely voluntary. As a result, there differing opinions on whether or not you need to purchase mortgage life insurance.
My personal opinion comes from my sister’s experience. Her and her husband had bought a nice home in a good neighborhood. Like most people today, they had used both incomes to qualify.
Unfortunately, after only 6 months in the home her husband, Ron, was diagnosed with cancer and given 6 months to live. He made it 7.
Right before our eyes we watched my sister lose her husband, her home and her car.

Many homeowners prefer the additional security of knowing that their home would be paid for and thus their family afforded a home to live in should the homeowner die. Other experts, however, maintain that given the narrow nature of mortgage life insurance policies, one would be better off maintaining a standard life insurance policy that provides enough proceeds for the homeowner’s family to continue to make mortgage payments in the event the homeowner dies.

Mortgage life insurance may be a good idea for you if you do not carry enough life insurance or if you lack sufficient coverage to pay for your mortgage in the event you die. Mortgage life insurance ensures that your family will be able to maintain the home and live in it after you’re no longer able to provide for them to do so.

There are different types of policies to use as mortgage life insurance. The best forms of mortgage life insurance allow you to carry the full amount needed to pay off your original mortgage, which results in additional funds paid out at the end of the policy.

Like with any insurance policy, make sure the premium fits your budget so you can keep it in force if your family ever needs it.

Please give me a call at (231) 744-9099 or check out my website at www.muskegonlifeinsurance.com