How to save in homeowner insurance

The price you pay for your homeowners insurance can vary by hundreds of dollars, depending on the insurance company you buy your policy from. Here are some things to consider when buying homeowners insurance.

1. Shop around

   It'll take some time, but could save you a good sum of money. Ask your friends, check the Yellow Pages or contact your state insurance department. 
   Also check consumer guides, insurance agents, companies and online insurance quote services. This will give you an idea of price ranges and tell you which companies have the lowest prices. But don't consider price alone. The insurer you select should offer a fair price and deliver the quality service you would expect if you needed assistance in filing a claim. So in assessing service quality, use the complaint information cited above and talk to a number of insurers to get a feeling for the type of service they give. Ask them what they would do to lower your costs.
   Check the financial stability of the companies you are considering with rating companies.

2. Raise your deductible

   Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. Nowadays, most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25 percent. Remember, if you live in a disaster-prone area, your insurance policy may have a separate deductible for certain kinds of damage. If you live near the coast in the East, you may have a separate windstorm deductible; if you live in a state vulnerable to hail storms, you may have a separate deductible for hail; and if you live in an earthquake-prone area, your earthquake policy has a deductible.

3. Don’t confuse what you paid for your house with rebuilding costs

   The land under your house isn't at risk from theft, windstorm, fire and the other perils covered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. If you do, you will pay a higher premium than you should.

4. Buy your home and auto policies from the same insurer

   Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them. But make certain this combined price is lower than buying the different coverages from different companies.

5. Make your home more disaster resistant

   Find out from your insurance agent or company representative what steps you can take to make your home more resistant to windstorms and other natural disasters. You may be able to save on your premiums by adding storm shutters, reinforcing your roof or buying stronger roofing materials. Older homes can be retrofitted to make them better able to withstand earthquakes. In addition, consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage.

6. Improve your home security

   You can usually get discounts of at least 5 percent for a smoke detector, burglar alarm or dead-bolt locks. Some companies offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations. These systems aren't cheap and not every system qualifies for a discount. Before you buy such a system, find out what kind your insurer recommends, how much the device would cost and how much you'd save on premiums.

7. Seek out other discounts

   Companies offer several types of discounts, but they don't all offer the same discount or the same amount of discount in all states. For example, since retired people stay at home more than working people they are less likely to be burglarized and may spot fires sooner, too. Retired people also have more time for maintaining their homes. If you're at least 55 years old and retired, you may qualify for a discount of up to 10 percent at some companies. Some employers and professional associations administer group insurance programs that may offer a better deal than you can get elsewhere.

8. Maintain a good credit record

   Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price homeowners insurance policies. In most states, your insurer must advise you of any adverse action, such as a higher rate, at which time you should verify the accuracy of the information on which the insurer relied. To protect your credit standing, pay your bills on time, don't obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

9. Stay with the same insurer

   If you've kept your coverage with a company for several years, you may receive a special discount for being a long-term policyholder. Some insurers will reduce their premiums by 5 percent if you stay with them for three to five years and by 10 percent if you remain a policyholder for six years or more. But make certain to periodically compare this price with that of other policies.

10. Review the limits in your policy and the value of your possessions at least once a year

    You want your policy to cover any major purchases or additions to your home. But you don't want to spend money for coverage you don't need. If your five-year-old fur coat is no longer worth the $5,000 you paid for it, you'll want to reduce or cancel your floater (extra insurance for items whose full value is not covered by standard homeowners policies such as expensive jewelry, high-end computers and valuable art work) and pocket the difference.

11. Look for private insurance if you are in a government plan

    If you live in a high-risk area -- say, one that is especially vulnerable to coastal storms, fires, or crime -- and have been buying your homeowners insurance through a government plan, you should check with an insurance agent or company representative or contact your state department of insurance for the names of companies that might be interested in your business. You may find that there are steps you can take that would allow you to buy insurance at a lower price in the private market.

12. When you’re buying a home, consider the cost of homeowners insurance

    You may pay less for insurance if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department. It may also be cheaper if your home’s electrical, heating and plumbing systems are less than 10 years old. If you live in the East, consider a brick home because it's more wind resistant. If you live in an earthquake-prone area, look for a wooden frame house because it is more likely to withstand this type of disaster. Choosing wisely could cut your premiums by 5 to 15 percent.

If you have questions about insurance for any of your possessions, be sure to ask your agent or company representative when you're shopping around for a policy. For example, if you run a business out of your home, be sure to discuss coverage for that business. Most homeowners policies cover business equipment in the home, but only up to $2,500 and they offer no business liability insurance. Although you want to lower your homeowners insurance cost, you also want to make certain you have all the coverage you need.

For more information contact us.

www.es-insurance.com

How Can I Save Money On Auto Insurance?

he cost of auto insurance premiums can vary by hundreds of dollars, depending what type of car you have and who insures it. Here are some ways to save money.

1. Shop Around

Lastly, don’t shop by price alone. Ask friends and relatives for their recommendations. Contact your state insurance department to find out whether they provide information on consumer complaints by company. Work with an insurance professional who takes time to answer your questions. 

2. Before You Buy a Car, Compare Insurance Costs

Before you buy a new or used vehicle, check what it will cost to insure. Auto insurance premiums are based in part on the car’s price, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. 

3. Higher Deductibles Could Mean Lower Premiums

A deductible is the amount you pay before your insurance policy kicks in. By choosing a higher deductible, you can significantly lower your costs. Before choosing a higher deductible, however, be sure you have enough money set aside to pay it if you have a claim.

4. Reduce Coverage on Older Cars

It pays to review your coverage at renewal time to make sure your insurance is in step with your needs. For example, if your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. When this is the case, consider dropping collision and/or comprehensive coverage. It’s easy to research the worth of your vehicle online.

5. Buy Your Homeowners and Auto Insurance from the Same Company

Many insurers will give you a break if you “bundle” two or more types of insurance, or have more than one vehicle insured with them. Most offer some kind of discount to loyal customers. Even so, it still makes sense to shop around! Compared with a multipolicy discount from a single insurer, you might still save money buying from different companies.

6. Maintain a Good Credit History

Establishing a solid credit history has many benefits, including lower insurance costs. Most insurers use credit information to price auto insurance policies. To be sure you’re getting the good credit you deserve, it’s a good idea to check your credit record on a regular basis to be sure all information is accurate.

7. Take Advantage of Low Mileage Discounts

Some companies offer discounts to motorists who drive less than the average number of miles per year. Low mileage discounts can also apply to drivers who car pool to work.

8. Ask About Group Insurance

Some companies offer reductions to drivers who get insurance through a group plan from their employers, through professional, business and alumni groups or from other associations.

9. Seek Out Other Discounts

Companies offer discounts to policyholders who:

• Have not had any accidents or moving violations specified period.
• Drive fewer miles per year than the average motorist
• Have taken a defensive driving course.

If there is a young driver on your policy who is a good student, has taken a drivers education course or is away at college without a car, you may also qualify for a lower rate. But one important thing to keep in mind is that the key to savings is not necessarily getting discounts, but the final price. A company that offers few discounts may still have a lower overall price.

For more information contact us.
www.es-insurance.com

Prepare for Hurricane Season

These 6 tips can help you plan ahead so you never have to face a storm unprepared.

1. Check your insurance coverage to make sure it reflects the current state of your home. Consider adding flood insurance and coverage for additional living expenses in case your home is uninhabitable after a storm.

2. Doing a home inventory can save you time and make filing a claim easier, ensuring you don’t forget anything. Document the contents of your home with a video camera or other home inventory tool. Keep receipts for valuable items and consider separate coverage for these things.

3. Protect your property by installing the following items in your home:

• Hurricane shutters or keep ¾ inch outdoor plywood boards for each window. If using boards, be sure to install anchors and pre-drill holes so you can put them up quickly.
• Head and foot bolts on doors for extra protection.
• Hurricane straps or clips to help hold the roof to the walls of your home.
• A safe room that can withstand high winds and flying debris.

Also, be sure to keep up with your landscaping; diseased and damaged tree limbs can become serious hazards in high-speed storm winds.

4. Stock your emergency supply kit with basic survival items. You’ll want to have a 2-week supply of water and ready-to-eat, non-perishable food for every family member and pet. If you evacuate, you’ll want a 3-day supply of the same. Other items to add to your supply kit include:

• Manual can opener
• Essential medicines including eyeglasses and contact lenses
• Personal hygiene items such as toilet paper, toothbrush and toothpaste
• Change of clothing
• Paper towels, hand sanitizer, and eating utensils
• First-aid kit
• Battery-powered flashlight and radio with extra batteries
• Blankets, pillows and sleeping bags
• Mosquito repellent and citronella candles
• 2 coolers—one for food, one for ice
• Plastic tarp for roof/window repairs and tools
• Special items for infant, elderly or disabled family members

5. Have an established evacuation plan to help reduce stress. If you don’t have transportation of your own, make arrangements now with friends or family members and don’t forget about the pets!

You want to make sure the whole family is covered, so identify an out-of-state contact that everyone will call if separated and establish a meeting location at least 50 miles inland.

Lastly, gather important papers to take with you:

• Driver’s license or personal ID
• Social security card
• Proof of residence (deed, lease or utility bills)
• Insurance policies (home, auto, flood, wind)
• Birth and marriage certificates
• Stocks, bond and other negotiable certificates
• Wills, deeds, and copies of recent tax returns
• Personal checkbook and any unpaid bills

6. Don’t take silly risks like running back into a home that’s been destroyed or refuse to evacuate when you’ve been ordered to, just to salvage material possessions. Things can be replaced, but people cannot.

For more information,

Please contact me,

Juan David Espinosa

www.es-insurance.com

What is the difference between "Sinkhole" and "Catastrophic Ground Collapse"?

Florida homeowner insurance restricts us from several coverage features.  One that can be quite confusing to several homeowners is the difference between  "Sinkhole" and "Catastrophic Ground Collapse".

Most homeowners polices in Florida exclude coverage for "sinkhole activity" however they provide you with the opportunity to request and endorse your policy to include such coverage for additional premium. 

However, All Florida homeowners policies do include coverage for "catastrophic ground collapse" which is defined below:

Catastrophic ground cover collapse” is defined as “geological activity that results in all of the following:

1). The abrupt collapse of the ground cover;

2). A depression in the ground cover clearly visible to the naked eye;

3). Structural damage to the building including the foundation; and

4). The insured structure being condemned and ordered to be vacated by the government agency authorized by law to issue such an orderfor that structure.”

This means that if your home is damaged by sinkhole activity, but does not meet all four criteria for catastrophic ground cover collapse – for instance, you may have foundation cracks, but the home is still livable – your insurance may not pay for the damage if you do not have sinkhole coverage

If you wish to request to include "sinkhole activity" you must contact your agent and/or insurance company to request a sinkhole inspection usually with in 45 days of the effective date.  There is a small fee for this inspection, typically less than $225.00 and the insurance company will usually split the cost.  However there is not a guarantee that coverage will be extended. You must receive a favorable inspection.

For more information contact us.

Juan D. Espinosa 
E&S Insurance

Difference between stacking and non-stacking in auto insurance?

What Is Auto Insurance Stacking?
Auto insurance stacking applies to combining coverage for under insured and uninsured motorist bodily injury if you have multiple cars. By combining coverage, you are able to substantially increase the payment limits of your auto insurance should you be involved in an accident with an uninsured motorist. For example, if you had $50,000/$100,000 coverage and decided to exercise the stacking option for a second car, stacked coverage for both cars would be $100,000/$200,000 (existing coverage times two cars). With three cars, the coverage would increase to $150,000/$250,000 and so forth for additional vehicles.

Unstacked Insurance
With multiple cars on a policy, you do not have to stack the coverage. As in the above example, each car would be covered at $50,000/$100,000 individually. No matter how many cars you have on the policy, the amount of coverage for each car stays the same. This will save you money in premiums, as stacking carries a heavier fee. However, if you were to try to increase the coverage level of each car to the amount the stacked coverage would be, you'd find it more expensive and more complicated than stacking.

For more information contact me,

Juan D. Espinosa

www.es-insurance.com

Does my car insurance cover my rental car?

Generally, coverage from your primary auto insurance will extend to a rental vehicle. If you cause an accident while driving the rental, your liability insurance would pay up to your policy limits for the damages to other cars or property.

Contact us for more information,

www.es-insurance.com

When is the last day to sign up for Obamacare?

Open Enrollment for Health Insurance

• 2016 Open enrollment in the Health insurance Market place started November 1st, 2015 and ends January 31st, 2016.

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