Columbia SC Insurance

The seventh largest quake ever occurred March 11th. The eighth largest quake occurred last year. The third largest quake occurred in 2004. Add to this hurricanes and floods, and it seems like natural disasters are on the rise.

Everyone should be well aware by now, earthquakes and tsunami’s like Japan recently suffered are not normally things insurance covers. No one wants to find out AFTER THE FACT that their homeowner’s insurance doesn’t cover them for a disaster. Let’s look at what your homeowner’s insurance doesn’t (or may not) cover.

Flood

Flooding is not covered by homeowner’s insurance, PERIOD. No gray area, no loopholes.

Let’s be specific about what a flood is so you can decide if you need a separate flood policy through the National Flood Insurance Program (NFIP). That flood insurance policy can still be purchased through your local agent.

FEMA defines a flood as “excess of water on land that is normally dry.” The NFIP considers a flood “a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from:

  • Overflow of inland or tidal waters;
  • Unusual and rapid accumulation or runoff of surface waters from any source;
  • Mudflow; or
  • Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.”

On the bright side, a burst pipe is considered a covered claim by most policies, however, there may be fine print that allows your insurance company an out even in this case, so be sure to read your policy carefully!

Earthquake

Depending on where you live, this could be a critical exclusion. The western United States receives the most earthquakes, but according to the United States Geological Survey, they can still occur throughout the rest of the country.

Earthquake insurance (not part of your regular homeowner’s insurance) should cover the cost of replacing your property or repairing damage to it. When reviewing this insurance, consider the following:

  • Will only your dwelling be covered?
  • Will detached structures be covered?
  • Will your contents be covered as well as loss of use for expenses incurred if you have to live elsewhere during repairs?
  • What isn’t covered?
  • What is your deductible?

That last one is usually pretty high with earthquake coverage, so be sure you know what your deductible is.

Loss Assessment

If your condominium, co-op apartment, or townhome is part of a homeowner’s association, your homeowner’s policy should include loss assessment insurance. Loss assessment provides coverage for damage to the common areas owned by all residents. If the association charges all residents to pay for damages, this coverage will provide for that.

Homeowner’s Insurance exists to protect you, your family, and your assets in case of an emergency. Make sure you’re adequately covered BEFORE a disaster strikes.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

Homeowners insurance rates may be going up with new hurricane modeling software. The new software package from Risk Management Solutions, Inc. goes way beyond the criteria that other models project.

The factors include the size of the hurricane and how much of it is still over the water, how fast it is moving, and whether a storm is strengthening or weakening just before landfall. Terrain also plays a role; a storm will be torn apart by mountains, but will be able to gather fuel from swampy areas like the Everglades in hurricane-prone Florida.

The model also accounts for the spike in the cost of construction materials after a storm and updates assumptions about the damage that even a moderate hurricane can do to commercial buildings in some regions to reflect the strictness of local building codes—and how well those codes are enforced.

Gone are the days where only those living in the coastal regions of hurricane country have to bear the brunt of the extra fees in their homeowners insurance. Now the risk will be spread out further and wider.

Of course, if you live on the coast don’t expect your premiums to go down any.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

Finding the right homeowner’s insurance is a tough job. Here are some basic tips to make choosing homeowners’ insurance an easier task:

  1. Get past the advertising fluff. When selling your home and buying a new one, your mailbox can fill with solicitations—and one of the front-line offenders are homeowners’ insurance companies. Our quick scan of the latest bunch of mailings reveals quite a few boasting fancy packaging and idealistic images of beautiful homes with magazine-ready design schemes. They’re often printed on pricey paper stock and feature florid writing poetically telling you how they can help you protect your home and all the prized possessions it contains, better than any other company can. Just because a company has the advertising budget for big mailings, doesn’t necessarily mean it’s the best. It’s quite possible you might do just fine with a company that sends you a mailing—but they might do even better with another company that never sends solicitation mailings. Don’t just go with the first thing you see, even if it seems good.
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  2. Consult your state’s resources. Choosing from a huge array of large national insurance companies can be daunting; that’s why it’s a good idea to start in your state. Your state will likely have an insurance, consumer advocacy or chamber of commerce website offering homeowner’s insurance tips. The benefit to a state site is that it gives you a good idea as to what your insurance covers given your particular state’s weather conditions and home wear and zoning issues. These sites also give information on important state codes; it’s critical to check that the company you’re researching understands these codes extremely well. Finally, many state sites list consumer complaints against particular companies from residents in your state.
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  3. Make sure the coverage is not only extensive, but appropriate for you. A homeowner may come across a potential company with a good service record and reputation, but that doesn’t mean its ideal for them. Look at the details of what the company focuses on. If a company looks great overall, but they emphasize flooding and water damage in all their marketing materials, it’s not going to be right for you if you live in Arizona—no matter how great a company it is. Make sure the company’s strong points match the needs of your particular home and geographical area.
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  4. Familiarize yourself with the claim process. The insurance company might advertise the fact that you can make frequent claims for repairs, but many companies hike up your premium if you frequently file small claims. This isn’t necessarily unethical, as it’s often stated in the fine print, but it could definitely hurt your wallet; that’s why it’s smart to ask up front how both routine/small and catastrophic claims might affect premiums. At the most, asking will ultimately save you money, i.e., you can do a small repair yourself instead of filing a claim for it, and ultimately the money you spend on the repair might be less than the premium hike.
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  5. Know the condition of your home. It’s impossible to effectively choose homeowners’ insurance unless you know the condition of your home inside and out. For instance, if you have a roof that’s prone to leaking and not in the best shape, you’ll obviously want to avoid a policy that doesn’t cover this sort of thing. The best way to learn about issues in your home is to get a home inspection by a certified, reputable home inspector. The home inspector will examine your new home for any potential faults and issues to watch for; this is incredibly powerful ammunition in choosing the right homeowners’ insurance, and can save a lot of money in the event anything goes wrong and you find yourself in the claim-filing process.

We welcome your questions and comments. Just use the comment link below to contact us. Your email address will never be published on this website.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

If you’re a homeowner, chances are your house is worth less than it was five years ago. But you could still be paying more to insure it.

Despite the deep housing bust of the last few years, the cost of rebuilding a damaged home — in other words, what you pay insurance for — has not changed much, according to industry experts.

That means that unless you have reduced coverage or increased your deductible, chances are you are paying as much or more to insure your home as before the housing bust.

In this topsy-turvy housing market we’ve seen in the past few years, it’s possible that the cost to rebuild your home is actually more than you could sell it for. The insurance also usually must be enough to cover how much is owed on a person’s mortgage, even if that is more than the value of the home. These days, it’s also possible you owe more on your house than you could sell it for.

Still, experts say that doesn’t mean you should accept a big jump in your insurance rate when you get your next bill. After all, a big factor in rate increases could just be the inertia of simply accepting the new premium each year.

You should look carefully at your bill to see why it has increased. You also might want to check if you can reduce your rate by making home improvements such as adding a better fire prevention system, or making lifestyle changes such as stopping smoking.

It’s also a good idea to shop around to see if another provider can get you the same coverage for a lower price.

A 2008 survey of Consumer Reports subscribers found that about half of those who switched insurance carriers in the prior four years were paying less for coverage.

While a really great insurance rate may be alluring, you should be cautious in accepting a new policy purely based on price. Check consumer websites and your state department of insurance website to make sure that your insurance carrier will treat you well in the event of a claim.

When you’re buying insurance, all you’re buying is a promise.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

Looking for an alternative to traditional insurance that costs less? You should know about “Medishare”.

Questions or comments? Use the comment link below to contact us.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.