Insurance

Insurance 101- The Learning Curve Series: Landlord Policy

You bought a property and you are going to Rent it to some Tenant. This is what we in The Industry call a non-owner occupied property.

You are now a Landlord, a Small Business Owner and need to treat the property as a Business Owner. The insurance you need for this risk if a 4 unit or less Residential Dwelling is a Landlord Insurance Policy.

You face risks just like a Home Owner for fire, and other damage, but also loss of rents if there is a covered claim. (No rent loss is paid out if a tenant skips out, that’s part of business). But if there is a fire and the tenant is forced to break the lease while you conduct repairs you may be entitled to loss of the Fair Rental Income up to the Policy Provisions.

If you have Business Personal Property such as stove, fridge, and washing machine. What if they are damaged by a covered loss?

Most Important is your Liability exposure. What if you are sued for negligence as a course of conducting Business? More information is just a call to the Insurance Agent.

Insurance 101- The Learning Curve Series: What is Insurance Anyway?

Think of Insurance as a pool of money that is available to scoop up if certain events occur. Those Events or Perils are in an agreement called the Insurance Policy. The Insurance Policy is a Ccontract that is unilateral (one sided) and is written by the Insurance Company.

You the Insured agree to this Contract and the provisions written in it, does this means you should read the policy?  YES please read your policy as that is your agreement and the obligations for both parties are spelled out in detail.

When you have questions call your agent, a good agent is an advocate for you and the Insurance Company if you have an issue of concern.

Insurance 101- The Learning Curve Series: Earthquake Insurance

Recent studies in the past few years has suggested that Washington State has a greater chance of major Earthquake Events than were previously thought. Most Insurance Contracts exclude Earthquake Damage as a covered peril.

If you are concerned about damage from an Earthquake and the affect this may have on your financial world, call your agent to find how much an Earthquake policy would cost you.

Earthquake polices usually have deductibles based on a percentage of the Dwelling or Coverage Limit. An example might be the coverage limit of $250,000 with a 10% deductible of $25,000.

Why so high?

Remember if you have a fire it is usually contained to your property or an adjacent property, but if there is an Earthquake it affects a large area with a huge volume of claims, limiting the smaller claims helps the pool of available dollars for claims to be secure.

Insurance 101- The Learning Curve Series: Insurance Review

OK, so you did buy that home and you just got your new Insurance Policy in the mail. Now what? Call the agent and set up an Insurance Review. You may have gone over the high lights of the policy when you applied for coverage, but now is the time to make sure your policy includes all the right coverage. I didn’t say wrong coverage, I mean are the coverages, limits, features, and benefits the right fit for what you and the Lender want in an Insurance Policy?

When you have a claim sisuation, that is the wrong time to find out you could have added some feature or benifit to your policy.

Since most Insurance Contracts exclude Earthquake and Flood damage, is this something you are concerned about?

Since Insurance Contracts have theft limits on claims such as Theft of Jewelery, Money, and Other limits as listed in the Policy do you want to increase those limits?

Call to schedule an Insurance Review.

Insurance 101-The Learning Curve Series: Insurance Inspection, Why?

I just paid to have an inspector look at the home and the lender approved my home but the Insurance Company also inspected the Home and says I have to remove the moss, Whats going on?

Buyers please remember that the two inspections are for different reasons, For example the inspection for the loan might note there is excess wear on the roof or that there is moss on the roof. The roof will last a few more years but the chances of an insurance claim may go up dramatically.

The insurance looks at the moss and the used up roof as is there may be a future claim. The Insurance company is in business to pay for damage and the risk of the wind blowing off the roof and the water damage may be more than they are willing to take at a preferred rate.

The lender may be willing to loan because they dont have to pay for a wind damaged roof. These and many more questions about Insurance Inspections are just a phone call away.

Insurance 101-The Learning Curve Series: How to Shop for Home Insurance

What do you look for when shopping for Home Insurance? Most people just look at the cost and think all Home Insurance policies are exactly the same. This is not true.

Look for these variables.

Coverage, this is the easiest part. Is the limit of coverage for the dwelling enough to rebuild it?

Features, do you want add on features that broaden the coverages in the policy?

Benifits, does the policy provide you with the benefits you desire?

Is the company strong and financially able to pay its claims?

Do want to work with an agent, an agency, mail order, or internet?

I recommend interviewing trusted recommended  professionals that you are referred to. I know that most of my customers come directly from referrals. Ask your Realtor and Lender who they have a good experience with, who takes care of their customers quickly and accurately.

Insurance 101- The Learning Curve Series: What Factors Make Up My Insurance Pricing?

There are many Factors the go into the Pricing of an Insurance Policy. Some of these are age of the home, location to fire protection, condition of the structure, presence of hazards, Insurance Scoring which may include credit, prior claim history, and building materials.

Many companies give great discounts for having protection such as smoke alarms, deadbolt locks, and fire extinguishers. Also discounts for having both the Home and the Auto Insurance with the same company.

For more information contact an Insurance Agent.

Insurance 101- The Learning Curve Series: Insurance Binders

What is a binder and why do I need one? When you are buying a piece of Real Estate you typically leverage your purchase and put some of your money as a down payment and secure the balance with a Mortgage. The lender wants to make sure you that you are a good risk and that the property  is protected in the event of a loss so they don’t lose the money they loaned you. This is their investment in your property.

The lender then requires you purchase Insurance naming them as a loss payable on the policy. The Insurance Agency then applies for a policy and issues a Binder (coverage) and sends it to the lender. The Insurance Company then reviews, inspects, and evaluates the application and if acceptable issues the policy.

It is important to get this part of the process handled before going into closing the transaction (No Binder no Loan).

Insurance 101-The Learning Curve Series: Renters Insurance

Why this topic on a Real Estate Web Page? It is important to know that either while waiting to purchase a home or if you sell your home and you are in flux to get another home you still have insurance needs.

A Renters Insurance policy is a Contents and Liability policy that provides Valuable protection. Look up Home Insurance in this series and think about Renters Insurance as a Home Insurance policy without the home.

Insurance 101 - The Learning Curve Series: Flood Insurance

What is a flood and does my Home Insurance cover it?

This is a question we get all the time in the fall and spring. First what is a flood? Water seepage, broken pipes, and washing machine overflows are not floods. To see if damage from these perils are covered give your agent a call. A flood has a definition and is paraphrased as water covering land that is normally dry and involves 2 or more connected properties and/ or a certain number of acres.

Flood is usually excluded from a Home Insurance policy and requires coverage backed by the National Flood Insurance Program a division of FEMA.

Flood Insurance may be required by the lender if you live in an area of the 100 year flood plain. Lenders are increasingly asking for flood determintion reports prior to funding a loan. If you are required to purhase Flood Insurance it is important to get an Elevation Certificate to qualify for the best rate.

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