Welcome to hurricane season which runs from June 1 to November 30th. It’s a great time for Texas homeowners to take a few minutes to review their home insurance keeping in mind a hurricane or named storm can impact north Texas residents as easily as it does our coastal neighbors. Let’s address two key areas of your home insurance policy to review along with two other related policies.
Do you get weak in the knees looking at pictures of a Shelby Cobra, an Ultima Evolution, Catarham Seven or a Kirkham 289 Coupe? Do you dream of a Lister Bell STR, the Lamborghini Diablo, or the Ford GT40? You may not be able to afford the real thing, which can cost hundreds of thousands of dollars, or more, but there is a way to come close with a kit car. There are some amazing car kits with nice engines and the perks of our current vehicles for those who are interested. The issue I’d like to address is what kind of car insurance does a kit car need?
I’ve written several renters insurance policies in the past few weeks for new college grads, people relocating to north Texas, and someone going through a divorce. Some purchased them because the lease requires it while others simply want their personal property covered against what may happen. I felt it to be a good time to revisit renters insurance and the coverage contained in a typical policy.
I’ve talked with two clients in the past week. Both are parents of teens who are about to start driving. One client has a teen son that’s about to get their learner’s permit while the other has a son who’s about to get their license. Both had two questions related to their car insurance.
I reviewed Sheri’s and my home insurance in March. It had gone up again and we’d been with the same company for several years, so it was time. I was very pleased with the rates I found with a couple of my other carriers and decided to call the underwriter to discuss our home since it was built in the mid 1950’s. She told me it would require an interior inspection, in addition to the exterior inspection. I was curious what they’d review and the criteria they’d use to determine whether to write my home insurance or cancel it. What I found out caused me to go to the next option on my list!
I sat in a meeting with one of our carriers last week and heard an interesting statistic. On average, insurance companies who wrote Texas home policies in 2016 paid $1.30 out in storm related claims last year for every $1.00 of premium they received. That doesn’t include non-storm related claims such as fire, theft, water damage, etc. The issue facing all home insurance companies is how to remain profitable without raising rates astronomically. One method carriers are examining is roof depreciation schedules.
I am working with a prospective client on their car insurance. I realized he’d never had a good explanation on car insurance once we began to review the quote together. I suggested we start over so I could explain each coverage and answer his questions. Unfortunately, I’ve found most people have never received a good explanation on car insurance, what it covers, and options worth considering, so I thought I’d write about that in this post.
A client called me Monday morning after receiving the estimate to replace his roof from the March hail storm which struck north Texas. Before calling, he’d emailed me a copy of the claim estimate to help guide our conversation. He had a couple of questions about the estimate and payment structure, however, his biggest concern centered on one issue. If his home insurance policy is a replacement cost policy, why does the repair estimate refer to the depreciated value of his roof.
A friend of mine sent me an email asking if I’d review her car insurance. After replying I’d be honored to, she asked me a question which comes up once or twice a year. Her question was, “Do I charge for my services?” This question is usually asked by people who’ve never worked with an independent agent before talking with me. Other people, have asked this, as well as, a follow up question, “Will I still be their agent, once I write their policy?” Let’s look at the two categories of insurance agents, how we are alike, how we are different, and the answers to both questions.
I received an email from a friend of mine who’s a commercial underwriter with a local insurance brokerage. All three of their cars were struck by hail from Sunday night’s storm. Two of the three vehicles are total losses and she wanted to know their options so they could make a good financial decision that right for them.
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