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Factors That Determine Homeowners Insurance Rates

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Homeowners Insurance Rates

Homeowners insurance provides you critical protection in the event that damage occurs to your home. It is also a likely requirement of a mortgage lender to protect their collateral when financing a home purchase. The national average premium for home insurance is around $1,083. The average premium in Arizona is much lower at only $765.

The National Association of Insurance Commissioners recently reported that premiums have been rising by roughly 3.5% annually. Florida has the highest average home insurance premium at $1,993. Oregon has the lowest average at only $643. There are a host of factors that can have an impact on the premium.

Value of Your Home

Obviously, the cost of home insurance is going to be heavily influenced by the value of your home. Data shows that home insurance premiums do increase according to the policy limits needed to cover the home. A ValuePenguin analysis showed there is on average a 64% increase in premiums between a $250,000 home and a $500,000 home. The increase was only 35% when comparing coverage for a $500,000 and a $750,000 home.

Replacement Cost vs Market Value

Home insurance policies may have coverage limits that are based on the replacement value or the market value of the home. The replacement cost is determined by the amount of money that would be needed to rebuild the same home. One way that this is determined is having a building contractor evaluate the costs and make an estimate.

The market value is determined by the amount that a buyer would likely be willing to pay for the home. A home’s market value is influenced by many external factors that are unrelated to the replacement of the structure itself. Buyers often consider the condition of the home when making decisions regarding what they deem the property to be worth. Other factors may include:

  • The quality of the local public school system
  • Statistics regarding the level of crime in the area
  • Whether there are plenty of homes available for purchase that are comparable (or not)
  • The cost of property taxes and more

In some instances, the insurer who is issuing the policy may make an assessment of the home’s value. It is always recommended that decisions regarding the amount of coverage needed is based on analysis. There are professionals such as real estate appraisers that can make accurate assessments regarding the value of a property.

Additional Coverage Needs

Often those with certain expensive belongings will need to obtain additional homeowners coverage that will increase the cost of the premium. This may apply to jewelry, antiques, and others. A home insurance policy will typically contain a specified limit that applies to personal property kept in your home.

Deductible Amount

The deductible on a home insurance policy functions similarly to those associated with comprehensive or collision automobile insurance coverage. The deductible is a fixed dollar amount that an insured party must pay “out-of-pocket” when filing an insurance claim. Common deductible amounts range from $500 to $1,500. Increasing the deductible will decrease the cost of the premium to some extent and vice versa.

Building Materials of the Home

The materials that compose your home may play a role in the premium. Homes with a wooden frame may be more susceptible to termites and fire damage compared to a brick home.

Siding Material of Home[i]Annual PremiumCompared to Average
Frame$1,3651% Higher
Brick or Stone$1,21610% Lower
Veneer of Brick or Stone$1,2825% Lower
Logs or Wood$1,52013% Higher

 Geographic Location

The location of your home may have an effect on your home insurance rates. For example, those who live in close proximity to an ocean may be at higher risk for damaging wind. Perhaps you live near an earthquake fault line or there are no fire hydrants in the neighborhood. Those residing in areas susceptible to hurricanes or flooding may need to purchase a separate policy or additional coverage.

Claims and Credit History

Insurance companies will check to see if you have a track record of filing insurance claims. Those with a recent home insurance claim are much more likely to encounter higher insurance rates. Insurers in Arizona are also able to review your credit history. Data suggests that those with a poor credit score are more likely to file insurance claims.

Potential Discounts

It is very important to look for discounts that you may be eligible for. Consider “bundling” your home insurance with other types of coverage such as automobile insurance. An independent insurance agent is able to shop for coverage through multiple insurers to locate discount opportunities for you.

Home Insurance Provider in Casa Grande

It is important to be certain that your home is properly insured in case of unforeseen calamity. Our professionals at the Gebhardt Insurance Group can accurately evaluate your coverage needs and find a suitable policy at a highly competitive price. Contact our office today at (520) 836-3244 to get started.

Renter Insurance Coverage

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Renter Insurance Coverage

Across the country, there are approximately 43 million households who rent, which equates to about 37% of all households. Among homeowners, roughly 95% maintain a homeowner’s insurance policy; however, merely 40% of renters have rental insurance coverage. These policies provide coverage for incidents of theft, vandalism, fire, and other adverse events.

Renters insurance provides compensation to replace possessions, protect you from liability for injuries, and for temporary accommodations if the property needs repair. Renters insurance is among the most affordable types of insurance. Renters in the Casa Grande area are encouraged to contact the Gebhardt Insurance Group for assistance with rental insurance. We can also provide you with a comprehensive review of homeowners insurance and any other insurance needs you may have.

Current Market Trends (U.S.)

Many younger people (“millennials”) are choosing not to buy a home in the early years of their career. Homeownership among those under age 35 is now approximately 34%. This trend is attributed to several factors including increasing levels of student debt and stricter lending requirements regarding down payments. Approximately 56% of renters under the age of 35 do not maintain rental insurance. Roughly 40% of these individuals do not perceive a need for renters insurance.

Renters Insurance in Arizona

Arizona’s Department of Housing is responsible for the rights and obligations involving rental housing. These are contained in the Arizona Residential Landlord and Tenant Act. The provisions do not impose any mandates regarding renters insurance. A provision in the Arizona Association of Realtors template for lease agreements states they “strongly recommend tenants obtain and keep” this coverage. Landlords may require that their tenants have renters insurance.

Personal Property Protection

One key aspect of renters insurance is to protect your personal possessions in case they are damaged or stolen. Some examples may include electronics, furniture, and clothing. Some policies may also provide coverage for property items in off-site storage units. It is critical to gather an inventory of the items that you own for two reasons. First, to calculate the value of your property in order to be sure you select an adequate amount of insurance coverage. In addition, it is important to have documentation to support the existence of your belongings. This evidence may be proofs of purchase, receipts, and serial numbers. This information should be kept outside the home so that it is not potentially destroyed in a fire or other event.

Replacement Cost Coverage vs Actual Cash Value

A rental insurance policy will specify how compensation will be calculated for losses of property. Actual cash value is the most commonly used. It pays an amount that reflects the value of the item at the time of loss or damage. This calculation accounts for any potential depreciation of an item’s value since it was originally obtained. The replacement cost value is simply based on the original cost when the property was purchased. You should expect to pay at least an additional 10% to have replacement cost value coverage for your possessions.

Additional Coverage for Expensive Items

A rental policy will have a maximum amount of coverage available specifically for personal property. For items with significant value, such as jewelry, artwork, or firearms, you will need to address these individually with your insurance company. Typically, an “add-on” or endorsement is necessary and is available for an additional cost. Be sure to consult with your insurance professional for details regarding these types of coverage.

Certain Exclusions

Basic rental coverage is applicable to events such as fire, water damage, wind, hail, or lightning. Two natural disasters that are usually excluded from this coverage are earthquakes and floods. Those with a home office should also be aware that business-related property may not be covered. Other potential exclusions include if you accidentally misplaced an item or something is damaged by a pet. Carefully review the provisions of your policy agreement to verify these concerns.

Personal Liability

Rental insurance may also provide coverage in the event that someone is injured on your premises and you are liable. For example, if your dog were to bite a person. Some of the potential expenses that your policy may cover include the following:

  • Medical bills from diagnostics or X-rays
  • Emergency medical response and transportation
  • Medical payments from surgical procedures
  • Rehabilitation such as physical therapy
  • Compensation for lost wages due to an inability to work
  • Property damage that the party incurred

Interim Housing & Expenses

If an event renders your home uninhabitable a rental policy will afford you some benefit. For example, if a severe weather event were to severely damage the roof. Your insurance will compensate you for temporary alternative accommodations. This may include a hotel stay and daily living expenses while the property is undergoing repairs.

Premium Costs

The cost of a renter’s insurance policy is referred to as the annual premium. There are a host of potential factors that an insurer may consider when calculating renters insurance quotes. The value of the property that is being insured will generally be a primary factor. Some rental insurance policies may simply provide $5,000 to $10,000 in personal property coverage. Those in need of more coverage may extend to $40,000 or more. Insurers may consider your past claims history. Those who have filed an insurance claim in recent years are likely to pay higher rates. The credit history of the insured party may also be used in the formula for rate calculation. Data suggests that those with poor credit are more likely to file an insurance claim. Another element is the deductible selected for the policy.

Policy Deductible

The deductible amount is what the insured party must pay toward a claim. Deductibles are common in other areas of insurance including automobile and homeowners. Once this amount is paid “out-of-pocket”, the insurance coverage pays the remainder up to the policy’s coverage limits. Common rental insurance deductibles range from $500 to $1,000. Choosing a higher deductible will generally lower the policy premium.

Renters Insurance Premium[1]Annual Average
National (U.S.)$187
Arizona$195
California$207
New Mexico$183

Potential Discounts

Rental insurance providers may offer discounts to attract potential buyers. Those serving in the military or who are over 65-years-old may qualify for special discounts. Many insurers offer a discount when the policy is “bundled” with another form of insurance from the same company. Those who implement safety measures such as by adding deadbolt locks or a fire suppression system may also qualify for discounts.

Agency Provides Renters Insurance in Casa Grande

Are you aware of the importance of maintaining renter’s insurance coverage? This form of coverage will compensate you if your possessions are lost due to theft, fire, and other adverse events. Renters insurance may be critical when facing a potential lawsuit if someone is injured while on your property. Our team of professionals at the Gebhardt Insurance Group has been providing renters insurance for many years in the local community. Contact our office today at (520) 836-3244 to obtain a quote that is properly tailored for your protection.

Mobile Home Maintenance Tips

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Mobile Home Maintenance Tips

Mobile home living allows its residents many of the same benefits as a conventional home but often times, comes with lower costs and less maintenance. While they do present fewer costs and problems, mobile homes still require proper inspections and regular maintenance to ensure livability and to make sure they pass home inspections like in traditional or site-built houses.Mobile home insurance is as equally important too. How can you maintain your mobile home properly? To help you keep your abode beautiful, healthy and in good condition, here are some mobile home maintenance tips you can follow.

Mobile Home Maintenance Inspection

Conducting regular inspection on your own is the practical way to do mobile home maintenance. Just simply check what’s off and not in your home. Take note of any damage or possible problem such as mold build-up or mildew. This way, you can prevent any further damage from occurring and you can seek professional help as early as possible. But of course, you also need professional home inspection by the experts once in a while.

Keep it Level

This is the most important action a mobile homeowner should take. If mobile homes are not properly leveled, various problems may arise, such as the occurrence of leaks, cracking of the wall or trouble shutting doors and windows. These are just some of the problems that you might have to face if you neglect mobile home maintenance. To prevent any of these from occurring and to properly maintain your home, it’s very important that you regularly or annually check your home if it is still “level.”

Keeping your home properly leveled prevents a host of other problems. If you notice that your windows or doors are not closing properly, that cracks are appearing in your walls, or that your floor squeaks excessively when you walk on it, your mobile home is probably uneven.

While it is important for the owners of site-built homes to check the level of their homes, this step is essential for the owners of manufactured homes, which are built in one place and then deposited elsewhere.

Whether your home is site built or manufactured, you should conduct a regular inspection to ensure that it remains level. If you find that your home is uneven, you can purchase a kit or hire a professional to help you even it out.

Keep the Skirtings in Good Shap

Homeowners often neglect the “skirting” or otherwise called “perimeter enclosure.” Skirting ventilation is highly important in mobile home maintenance.

While the skirting around your mobile home does add curb appeal, it is there for more than decoration. Skirting protects the foundation of your mobile home. It does not only act as an insulator, it also keeps pests away and prevents the growth of mold if properly ventilated.

This article from Hunker says that skirting “helps to maintain a steady temperature under the home to prevent freezing of pipes and high humidity levels that can lead to condensation and moisture problems that will potentially damage wood floors and support members.”

Whether you choose simulated rock or brick, or plain siding, you must maintain the proper skirting ventilation. See to it that you get proper ventilation in your home. The professionals have provided a formula on how to determine proper skirting ventilation. It is as follows: for every 150 square feet of space, there must be 1 square foot of venting. Moreover, avoid or prevent dead air pockets by installing vents within 3 feet of each other. Having the proper perimeter enclosure along with the correct square footage of venting allows you to protect your home.

Mobile home maintenance photo

Roof Maintenance

Just as with a conventional house, keeping the roof in good condition is important. The roof must be included in your list of mobile home maintenance habits. Mobile homes differ from conventional houses because they have flat roofs, which means that a leak can cause more water damage at a faster rate. It is important that you frequently assess the quality of your roof, even if you do not notice a leak.

Regularly check and maintain your roof. The maintenance depends on the type of roof you have. For example, if your home has a flat roof, it is advised that you must recoat or reseal it regularly, perhaps once a year. Using the right coating is also important as there are certain coatings that cannot be used on certain roofs. For instance, aluminum and asphalt coatings should not be applied on rubber or PVC roofs. Furthermore, make sure that there are no cracks in the caulking and that the flashing is in great condition.

Plumbing Tips

Mobile homes require different plumbing needs than site-built ones. However, both types of homes have more or less the same plumbing structures, such as drain line, supply line, pipes and such. The main difference is that in mobile homes, every water feature ideally should have a shut-off valve, particularly in the faucets and toilet. It is important that you know which part of your home these valves are located.

Use the Right Supplies

Mobile homes are usually built with different materials than conventional homes, which means that you will need to purchase unique, often difficult to find materials to maintain your home.

For instance, as this article from doityourself points out, fixtures such as doorknobs and faucets, and materials such as drywall and vinyling typically differ in mobile homes. As you are choosing materials to maintain your mobile home, remember to acquire the right types of products.

Mobile Home Insurance Coverage

Mobile home maintenance is highly important to keep the value of your property, and to ensure that you are always living in a safe, sturdy and healthy home. These mobile home maintenance tips should assist you in keeping your mobile home in pristine shape, but remember that problems eventually will arise. On top of these maintenance tips, you must not neglect insurance. Our passionate team at Gebhardt Insurance Group wants to help you find an insurance policy for your mobile home that gives you the coverage you need at a cost that you can handle.

If you are interested in purchasing a new insurance plan for your mobile home, get a free quote today. We want to find you a plan that not only meets your financial needs, but also adequately protects your home in the case of an emergency or needed repairs.

Homeowners Insurance Claims Process

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Homeowners Insurance Claims Process

Enduring a disaster that damages your home can be a scary process. In just a moment, you could lose a part of your house, belongings in your home, or even the entire house. Filing a homeowners insurance claim is a daunting process that you must face after a disaster. If you have never had to file a claim before, knowing what steps to take can be difficult. To make this process easier, we will explain the typical insurance claim process for homeowners.

Filing a Claim

In the case that your home becomes damaged, the first thing you should do is determine if it is safe to return. You and your family’s safety is more important than your home or any damaged items inside.

Whether or not you can continue living in your home, you should begin evaluating the exact damage so that you know what to tell your insurance agency when you file your claim. To make sure that you have an accurate assessment, hire a contractor to inspect the damage.

If your home is damaged, it is important that you file a claim with your insurance company as soon as possible. The quicker that you get in contact with your insurance provider, the quicker you will receive the help you need.

With new technologies, there are plenty of ways to contact your insurance company to file a claim. Calling your insurance agent is usually the best and fastest approach. Either way, it is important that you document all of the damage.

What Happens After I File a Claim?

Once you file a home insurance claim, an insurance adjuster, who may also be called a claims adjuster, will connect with you to assess the cost of the repair. They will probably talk with you over the phone, as well as visit your home to assess the damage.

After the insurance adjuster has discussed the damage with you and evaluated your total losses, they will propose an appropriate settlement. If you accept, then you will typically receive the money quickly.

Sometimes, you will receive a check to cover the whole of your damages, but not always. According to the Insurance Information Institute (iii), the initial payment usually does not include the entire settlement amount. Many insurance companies will provide “an advance against the total settlement amount,” and then pay the rest later. This quick payment allows homeowners to make temporary repairs and cover immediate costs.

Even after you file the original claim, if the damage is severe enough to force you out of your home, make sure that you include additional living expenses on your claim. Things such as accommodations, rental cars, and meals from restaurants all fall under the additional expenses category that your insurance company should compensate you for. Keep track of your receipts so that you can verify to your insurance provider how much extra compensation you will require.

What Factors Affect the Homeowners Insurance Claims Process?

Not every insurance claim will yield the same results. Here are a few factors that typically play a crucial role in determining the amount of money you will receive.

Type of insurance coverage

There is one important distinction that will play a major role in determining the amount of your coverage: replacement cost vs. actual cash value.

  • Actual cash value: This type of coverage has less value, as the focus is on the monetary value of the items instead of how much you would actually need to replace them. The amount provided typically is not enough to replace the lost or damaged items, especially if they are older and have depreciated in value.
  • Replacement cost: This type of coverage does not consider the actual monetary value of each item, but rather how much it would cost to replace them. This option provides more comprehensive coverage that allows homeowners to recover faster.

If you lose your home and the items inside are damaged in a disaster, replacement value is the better coverage. However, this article from the balance says that replacement value often comes with caveats. For instance, “your insurance company may have the choice to only pay partial payments until you have replaced the item,” or they may only allow you to purchase your items at certain stores.

Home Ownership

There are important factors relating to the home itself that play a significant role in deciding the extent of your coverage.

  • Mortgage: If you are still making payments to a mortgage lender for your home, the check you receive from the insurance company will probably have your name and their name on it. Since the lender has a large financial investment in your home, they will want to ensure that it is repaired sufficiently and that its value does not depreciate.
  • Type of Residence: If you live in a condo or a co-op, even though you own it, your insurance policy will function differently. If you live in a condo and want to know how living in it will affect your policy and claim settlements, check out this article from the balance.
  • Renter’s insurance: If you are renting a home, condo, or apartment, you do not need to purchase a homeowner’s insurance policy. However, since your possessions would not be included on your landlord’s policy, renter’s insurance is a way to protect your belongings.

If you are unsure of whether the conditions on your current policy meet your needs, we can help. Our passionate, experienced team at Gebhardt Insurance Group will help you understand the homeowners insurance claims process and aid you in finding a plan that provides the perfect amount of coverage for you. Visit our website and receive a free quote today.

Home Insurance Calculator

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Home Insurance Calculator

Homeowner’s insurance provides you with financial protection from disasters and other potential hazards, yet knowing how much home insurance should cost can be tricky. Rates vary among insurance providers. What factors affect those rates? This home insurance calculator can help you determine an appropriate price range for the coverage you need.

Here is a breakdown of the factors that home insurance companies and insurance agents consider when creating your policy. If you wish to see a more detailed, thorough breakdown of how these different components influence your final rates and coverage levels, read this.

Location:

A person’s zip code plays a major role in determining the cost and components of their insurance. The cost of buildings and homes varies from area to area, with bigger cities usually proving more expensive.

Another location-related factor is your home’s susceptibility to natural disasters. You must pay extra for protection from many natural disasters. If you live in an area that endures a large number of natural disasters, you should expect higher base-level premiums.

Replacement Cost:

One of the main factors in determining the cost of your homeowner’s insurance is the cost to rebuild your home. The replacement cost of your home refers to the amount of money it would take to rebuild your exact house, assuming that you already own the plot of land. This is probably the most pivotal factor in determining the value of your policy.

Dwelling Coverage:

Dwelling coverage is the part of your policy that focuses on damage to your home. The amount of compensation will impact your premiums and deductible, but it is important that your dwelling coverage limit should provide enough compensation to replace your home if necessary.

Amount of Coverage:

This is another essential factor in determining the final cost of your home insurance coverage. In addition to coverage of your house itself, you should consider other types of coverage such as:

  • Liability insurance: Personal liability coverage will protect you from enduring the financial burden as a result of any harm that you, your family members, or pets may inflict on another person. According to this article from the Rocky Mountain, liability coverage “pays both for the cost of defending you and for any damages a court rules you must pay.”
  • Personal property coverage: Most base-level home insurance plans do not contain personal property coverage. While you may not own any single item with significant monetary value, replacing everything you own in the case of a disaster would be terribly expensive. With that in mind, personal property coverage is a great way to ensure that if your house were to be destroyed, the house itself, as well as your belongings inside, will be replaced.
  • Natural disaster coverage: It is dangerous to assume that any natural disaster is automatically covered in your plan. Many people have expected to receive compensation after enduring a flood, only to find out that flood insurance is a separate entity that they did not purchase.
  • Bundling: Another idea to consider is bundling your home insurance plan with other types of insurance, such as your car insurance or life insurance. This generally brings the price of each type of insurance down, saving you money without diminishing the quality of your coverage.

Deductible:

A deductible is the amount of money that the insurance company requires you to pay before they step in and pay the remaining expenses. Generally, the higher the deductible, the lower your premiums will be, and vice versa. Deciding whether you want to risk paying more in the case of a future disaster or have higher monthly payments now is an important consideration when deciding on a policy that works best for you.

Condition, Age, and Materials of your home:

Each of these factors relate to the replacement value of your home, but they also affect insurance rates. While auto insurance rates tend to climb as the quality of the car increases, home insurance rates increase for older, poorly maintained homes. If your home has state of the art fire, security and electrical systems, your rate will decrease.

What your house is made of also affects your final rate. Houses made primarily of wood and flammable materials typically have more expensive premiums.

Claims history:

The more insurance claims you have on your record, the higher your premiums will be. If you have made claims in the past, you should expect your premiums to be slightly higher. If you have never made a claim, expect to receive lower rates.

Since rates and types of coverage vary between companies, it is important that you know your options before choosing a plan. At Gebhardt Insurance Group, we can help you explore your options and give you a free quote. Contact us today!

Monsoon Preparation Checklist

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A Summer Monsoon In Sedona Arizona Brings Large Lightning Strike

Monsoons are summer storms that can hit fast and hard, leaving significant storm damage and flooding in their wake. One of the most damaging things about monsoons is that, often, they come in waves, giving little relief in between storms. Before monsoon season hits, and in times in between, follow these steps to make sure that you are prepared for severe weather and storms.

Home Preparation for Monsoon Season

A monsoon can cause serious damage to a home, especially one lying in a low area. Check all roofs, windows, and doors for potential leaks or current signs of water damage, such as rotting wood or rust. Work with a contractor ahead of time in order to fix any damage now, and to re-apply any needed waterproofing, so it doesn’t get worse after heavy rain.

If you have any valuables, such as expensive rugs or heirloom wood furniture, consider placing it in an especially secure spot, even in storage in order to protect it from potential water damage in your home.

Ensure that your home is well-ventilated, so that if water does come it your home will air out. If your home stays damp, mold can grow that will lead to additional post-flood headaches. Also consider investing in fans, so that you can more easily air out damp areas.

Make sure that drains are clear in and around your home. Standing water that cannot drain properly is a breeding ground for mosquitoes. It will also keep the area around your home moist for a longer time.

Prepare to be at home for several days with no electricity or running water. Stock up on bottled water – you should have at least three gallons easily available for each person and pet in your home. Invest in nonperishable food that does not need to be cooked in order to eat it. Check all batteries, and buy extra for flashlights and battery-powered radios. Make sure you have a full first aid kid, and get extra medication from the pharmacy.

Have an evacuation plan in place if you need to leave suddenly in the event of rising waters. Everyone in your family should know where high ground is and how to get there. In a flash flood, be prepared to leave quickly, taking only the bare necessities.

If you have additional time to evacuate, have bags packed with what you will need for a few days, including medicine, contact lenses, extra cash, and cell-phone chargers. Charge and pack cell phone battery chargers, in case you lose power for several days. Make sure everyone in your family knows the plan and put a plan in place to communicate with extended family to let them know when you are safe. Have a plan to check on neighbors, especially if they have small children or mobility issues.

Car Preparation for Monsoon Season

Only drive if you know it is safe to do so. Monsoons can lead to water levels rising quickly, meaning that roads might be unsafe to drive on. Waters can float cars away, and you don’t want to be in a car that gets caught in a flood. If public transportation is an option, you should take it.

However, before monsoon starts, have your car serviced again. You want your car in top working condition if you do need to use it. Have the mechanic double check your wipers and lights. You want the best visibility possible if you have to drive in extreme weather.

Understand the terms of your automobile insurance in order to make sure you are protected in the event your car is damaged or lost due to a monsoon or flash flooding.

Talking to your insurance provider

Freak weather events, such as intense flooding from monsoons, can lead to significant damage. It is frustrating and emotional enough to process the possibility of losing everything you own, and incredibly daunting to think about replacing it. If you do not have flood insurance, or if your insurance does not accurately reflect the value of your home and belongings, recovering from flood damage will take more time and be significantly more costly.

Even if you are a renter, you should make sure you have renter’s insurance that protects your belongings in the event of a disaster.

Contact an experienced insurance provider today in order to discuss your options for protecting your home and family when the unexpected happens. Our agents at Gebhardt Insurance Company will provide a free quote and answer your questions about the best way to ensure you are protected in the event of a monsoon.

First-Time Home Buyer Tips And Tricks

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happy couple after buying 1st home

Buying your first house is one of the most exciting and scary times in your life. With so much to consider, it can be tough to make sure you are getting the best deal and the right place for you and your family. It can be fun to shop around but it can also be stressful to think that your next home will be your home for many, many years to come.
When shopping for your first home, be sure to learn about the neighborhood, considering the kinds of stores and public places you like to visit regularly. Also, be sure to shop around for mortgage loans that offer the best rates for your budget. When you choose a potential house, make sure to have a pre-purchase inspection so you don’t wind up with any unexpected surprises when you move in. Finally, make sure you get good homeowners insurance to keep you covered against damage.

Let’s look closer at each of these tips for buying your first house.

Learn the Neighborhood

Every city is different from the others and every neighborhood can be the same way. Some are fast paced while others are slower, some are urban while others are rural. Before you start looking at houses, consider what you want nearby when choosing a neighborhood.

Look at the kinds of stores you regularly shop at, what kinds of public services you enjoy such as parks and libraries, and look at the neighborhood’s proximity to your job. Crime rates may also be a good aspect to look at when choosing a place to live. All of this information is available online with a few quick searches.

Shop around for Mortgage Loans

Not all mortgage loans are created equal. No matter your credit or finances, loan rates can be wildly different from one bank to the other. Pay close attention to the details of any offer and don’t be afraid to get a few quotes and go back to a bank to ask for a matching rate. After all, if they don’t offer a rate you like, they don’t get your money.
As a first-time buyer, you will qualify for an FHA loan. This type of loan allows you to pay as little as 3.5% on the down payment rather than the standard 20% down payment of most mortgages. This can be a huge help in getting into your first house and making it easier to handle closing costs.

Also look for special loan programs. Some cities, states and even the federal government will offer special discounts to military veterans, teachers, healthcare professionals or government workers. You may qualify for a discounted mortgage payment you don’t even know about.

Get a Pre-Purchase Inspection

Nobody likes surprises, especially when they involve costly house expenses in the form of repairs. Just because the house looked great when you took a tour does not mean that there are no issues beneath the surface. This is where a pre-purchase inspection will help.

Before buying a home, professional inspectors can be hired to look over a home from top to bottom, surveying the pipe systems, the water heater, the HVAC system and more. They will provide you with a detailed list of any moderate to severe issues the home may have so you can know how much in repairs you may need to perform down the line.

Armed with this information, you can take a few different actions. If you have the funds, you can simply buy the house and do the repairs. If not, you can ask the current owners to either perform the repairs or take enough cost off the asking price in order to cover the inevitable fixes. Finally, you can always walk away and look for another house.

Homeowners Insurance

One of the most important tips for buying your first house is making sure to find quality homeowners insurance. No matter where you live, a wide range of problems can arise that will only be covered by a homeowner’s insurance policy. Usually this insurance covers basic property damage, such as storm damage or a tree falling on the house, along with basic liability damage, such as someone being injured while on your property.

Extra coverages are available and may be just as important as the base coverage, depending where you live. Flood insurance is a very good idea for those living near the coasts. For us in the southwest, monsoon season can be a headache if you don’t have the proper coverages. Also keep in mind that mobile home insurance is a bit different due to the size and cost of mobile homes.

Just like your mortgage, be sure to shop around for the best rates and policies. There are many different levels of coverage and it is important to know what is covered and for how much.

These are just a few tips for buying your first house. With good planning you can make sure you get the best deal and best quality place that works for you. As with any major purchase, be sure to do your homework and learn as much as you can before making a purchase. Don’t be afraid to ask questions and seek advice every step of the way.

5 Home Safety Tips You Need to Know

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Home Safety Tips

As an adult and as a parent, you know the basic steps of home safety, such as closing your windows at night, storing poisonous chemicals in a secure childproof location, and installing deadbolts on all outside doors. But when you think about home safety, there are many things that are easy to overlook. That’s why we offer these five home safety tips.

Keeping Your Home Safe

Whether you’re at home or away, you want to know that your belongings and your property are protected. Implement these ideas for extra protection.

  1. Garage Doors
    This may seem very basic, but you would be surprised how many homeowners forget to close their garage door. An open garage door is an open invitation to burglars. Even when you’re home, don’t leave it open since it provides an easy a view into your home and belongings.
  2. Avoiding Falls
    Injuries from falling are one of the most common household hazards. In fact, one out of five falls results in a broken bone or a head injury. Wet floors, slippery stairs, and scattered toys all create the potential for falls so keep these areas clean and clutter-free. If you are a homeowner and someone falls and injures themselves in your home, you may be financially liable for their medical or other costs. In these cases, one of the key issues becomes whether the homeowner has an insurance policy that will cover the claim.
  3. Stash Your Valuables
    A hidden and fireproof safe can help keep your valuables secure during an emergency, a robbery, or a home invasion. While you’ll want to store precious jewelry or cash in the safe, you should also use it to store important documents like the deed to your home, wills, and anything else you’d want to survive a natural disaster. Theft of any kind can be devastating for homeowners. Your home contains not only items with monetary value, but also items with emotional significance for you and your family.
  4. Fire Prevention
    Every year, there are more than 350,000 home fires resulting in over 2,700 deaths in the United States. The damage goes beyond the devastating loss of life and includes everything from mild smoke damage to total devastation.

Whether it’s a small kitchen fire or a widespread home fire that engulfs the entire home, you want to make sure that you have enough home fire insurance coverage to repair or replace destroyed property. But the best way to be prepared is to focus on prevention.

These tips can help prevent the loss from a fire.

  • Never leave a burning candle, iron, or similar electrical device unattended.
  • Stay in the kitchen while cooking and do not leave the room when the stove is being used.
  • Install smoke detectors and fire alarms on every floor and every room. Often fires start at night, when family members are asleep.
  • Test detectors every month and change the batteries twice a year. A working smoke alarm will cut the chances of burns, injuries, and even death.
  • Purchase a fire extinguisher to keep in your kitchen and near a fireplace. Most importantly, know how to use it.

Carbon Monoxide Monitors

Carbon monoxide is virtually impossible to detect by smell, sight, or sound, making it a difficult threat to notice. Even low exposure to carbon monoxide (CO) can cause headaches and dizziness, while high levels can lead to vomiting, impaired vision, and even death. According to the Journal of the American Medical Association, carbon monoxide poisoning is one of the leading cause of accidental poisoning deaths in the U.S. and kills 430 people each year. But it is totally preventable.

  • Install a carbon monoxide detectors throughout the home that alert you if CO reaches dangerous levels
  • Have a qualified professional check all fuel-burning appliances, furnaces, vents, and chimney systems at least once a year
  • Never keep your car running in the garage, even if the doors are open

Why You Need Home Insurance

Unfortunately, accidents and natural disasters happen all over Arizona. Homeowner’s and renter’s property insurance protect your home and personal property against damage or loss. It can also give you coverage if someone gets hurt while on your property. In addition, home insurance policies provide property coverage for the cost to replace your house and its contents in the event of a disaster.

If the destruction is severe, and you cannot stay in your home after a fire, storm, or other covered risks, your homeowner’s property insurance may help pay for temporary living costs, such as hotel bills.

A home is usually the biggest purchase of a person’s life. But regretfully, 59 percent of homeowners have been found to be underinsured. If there is a disaster or lawsuit, these individuals would be in dire straights.

Just as importantly, is to keep the policy current. Too often people buy their policy and never look at it again. They never talk to an insurance agent after the sale, despite the fact that they make changes and improvements to their home which affects the value.

Our specialized team of professionals at Gebhardt Insurance Group will take the time to carefully review your needs and assure that you purchase enough coverage and the proper policy to protect your home, its contents, and your peace of mind.

If You Rent…

Renter’s insurance offers coverage similar to homeowner’s insurance. However, if you are a renter, you should not, and cannot, assume your landlord carries insurance on your personal belongings. Contacting Gebhardt Insurance Group to evaluate your individual situation before your experience a traumatic event on your property is essential.

Experience Counts

At Gebhardt Insurance, we know that you have many options for insurance providers. For over 14 years we have been independent insurance specialists. Instead of selling our own insurance coverage, we shop the nation’s top carriers to find you the absolute lowest homeowner’s insurance rates with the best coverage.

But we don’t stop there.  At Gebhardt Insurance we regularly review your coverage and help you receive the best value for your insurance dollar, all while providing the best customer service in the business. Visit our website to see what our clients say about us.

Contact us now at 520-445-4929 to learn more or get a free quote online.

Insuring Properly During Monsoon Season

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monsoon climate with lighting

If you are not native to Arizona, you might find yourself in for a wet and wild ride during your first monsoon season.  Dry air and hot temperatures over 100 degrees could make you long for the rain and desert thunderstorms to cool it down temporarily. Unfortunately, wet and cooler weather aren’t the only things monsoons bring. Summer storms during monsoon season can make their mark with powerful winds and quick and heavy rainfall. The extreme and varying weather conditions can put your home against serious challenges. This is why you need monsoon season home insurance for water damage coverage.

Monsoon season: What is it?

Monsoon season runs from mid-June through the end of September and refers to a specific weather pattern common to the area during this time period.  Monsoon season brings a characteristic shift in wind patterns that can pickup moisture from the Gulf of Mexico and California.  This moisture and wind combined with a low pressure zone can result in extreme seasonal conditions including thunderstorms, short bursts of torrential rain, hail and high winds.

How monsoon season can impact you

Some monsoon seasons will be dry and mild while others will bring flooding and inches of rain. So, how can monsoon season impact you and your home, especially if you are living in a flood zone? Here are three types of common consequences of a monsoon.

Flooding

Monsoons can bring heavy rainfall with ensuing flooding. Unexpected storms can bring an inch or more of water to otherwise dry areas resulting in flooding. In August 2016 the city of Phoenix Transportation Department issued advisories for several roads and freeways that were closed due to flooding. People had to be rescued from their vehicles, power lines were downed and manhole covers were displaced by moving water. Homes can also fall victim to flooding. Prior to purchasing your home you may need to check to see if it was in a flood zone. It is important to note that monsoon rainfall is not restricted to areas that fall into a flood zone and can strike any home at any time.

A standard homeowner’s insurance policy will not typically include flood coverage or water damage to your belongings. If you feel that your home is susceptible to flooding or monsoon water damage, make sure that your insurance provides adequate coverage.

Fallen Trees

High winds that come with monsoon storms also bring a plethora of potential problems.  Downed trees and power lines can create safety hazards along the roadways and in your home.  A tree that is uprooted in high winds can fall on your home or vehicle and could be your financial responsibility to remove. It’s important to understand how your insurance company will treat damage caused by fallen trees.  Regardless of the damage, you will be financially responsible for your insurance deductible.  A standard insurance company should cover at least some of the damage to your property including surrounding buildings such as a shed.  Insurance will probably also pay to remove damaged trees up to $500 or $1000 per tree. Your insurance may not pay to replace the damaged plants or trees depending on your coverage.

Power Outage

Another unfortunate consequence of monsoon storms may be power outages.  Homes without power in the Arizona sun can become unlivable quickly due to rising temperatures and no air conditioning.  You may be forced to stay with family, friends or relocate to a hotel until your power is restored.  Coverage for hotel expenses will vary from policy to policy so make sure to review your existing coverage closely.  Power outages can also cause food in your refrigerator to spoil and surprisingly enough a common homeowner policy will reimburse you for spoiled food up to $500 a monsoon season home insurance can be a big help in cases like this.

Monsoon Season Home Insurance

Insurance policies can vary just as much as monsoon seasons from year to year. By having a monsoon season home insurance, you are prepared when worse comes to worst. Once you understand what monsoon season is, you will be armed to protect yourself against it. Similarly, you need to understand your insurance policy and the coverage that it offers. If your insurance does not protect you in the event of flooding, high winds, or downed trees, consider increasing your coverage or adding appropriate addendums to protect your home and property. Flooding can be common even if you don’t live in a designated flood plain. If you have questions about your insurance coverage, work with an experienced agent to review and revise your policy.

Monsoons bring cooler temperatures and potentially dangerous and damaging conditions. It can be disconcerting to suffer damage to your home and then be displaced until repairs can be completed. The best circumstances would be having a most comprehensive home insurance coverage that can protect your home. Having the the right home insurance with water damage coverage can be beneficial for homeowners. Call Gebhardt Insurance on how to have water damage coverage.

Is Renter’s Insurance Worth It?

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Renter's insurance photo

Many people do not have renter’s insurance because they don’t realize the value of it.  Assuming your landlord’s insurance will cover you in the event of a disaster is dangerous, incorrect, and potentially financially devastating.  While your landlord’s insurance policy covers the home that he or she owns, it usually will not cover a tenant’s belongings or expenses.  Once a landlord stops living in a home and decides to rent it out he or she will typically change the insurance to only cover the structure of the home.  This means you and your belongings will not be insured if something should happen.

What Does Renter’s Insurance Cover?

Renter’s insurance can be incredibly helpful because of all the things that it covers.  Many landlords will even require that tenants carry renter’s insurance, specifically including liability insurance.  Don’t stop at the bare minimum.  A comprehensive renter’s insurance policy can provide liability coverage and so much more.

Personal liability insurance for renter’s can provide much needed coverage for items such as dog bites and lawsuits.  If you have a pet that suddenly attacks someone and causes them injury, your renter’s insurance may cover you in the event of a lawsuit.  It can also pay for the injured parties medical expenses.  Liability coverage helps offset your costs in the event of an unforeseen legal issue.

Renter’s insurance also helps with the cost of replacing your belongings.  While it is not pleasant to think about you could lose everything in your home due to theft or unforeseen disaster.  Flooding, fire or even a strong storm can damage your home and everything in it.  Make sure that you have coverage that can pay to replace your items.

Offsite storage may also be included in your renter’s policy.  A robust renter’s insurance can include coverage for your items in an offsite storage facility.  If something were to happen to your belongings your policy could cover up to 10% of the value of your items.

Travel disasters can also be covered.  If your personal belongings are damaged while on vacation, as long as the damage was caused by something covered under your policy, your renter’s insurance will pay to replace your items.  A pickpocket or thief may steal your wallet or laptop out of your hotel room.  Your policy could cover these items.  If your car is stolen while you are traveling, your renter’s insurance can come to the rescue.

Another expensive part of unforeseen disasters is displacement.  If you were unable to live in your home due to an event that is covered under your policy, for example fire damage, water damage or hazardous mold, your renter’s insurance may pay for the ensuing expenses.  Living in a hotel long term and boarding your pets can get expensive quickly.  A short-term rental could conservatively cost $100/night.  If you are displaced for just a month, you could be looking at a $3000 bill just for a place to stay.  Renter’s insurance could take care of these expenses for you (http://www.huffingtonpost.com/elizabeth-pietrzak/what-does-renters-insuran_b_6843948.html).

Your vehicle may also be included in your policy.  If you have items in your vehicle that are stolen, your renter’s insurance policy may pay to replace them.  If you routinely leave items such as a laptop, cell phone or any item of value in your vehicle, your renter’s insurance policy may save the day if any of these items were stolen.

How Can Renter’s Insurance Prevent Financial Catastrophe?

If you lost all of your belongings in a fire or other unexpected event, could you afford to replace everything?  Even if you think the answer is yes, I challenge you to go through your home room by room and estimate what it would cost to replace each item.  Start a running tally and don’t forget to include the small stuff.  Many people are tempted to only consider high ticket items when considering insurance but this doesn’t take into account the actual cost of what it would take to replace everything.  If you tallied the value of items such as your silverware, linens, bedding, picture frames, furniture you might be surprised at how quickly these items add up.

Get Renter’s Insurance Today

Whether you are in college and just getting started on your own or have an established career and family, if you are renting you should seriously consider renter’s insurance.  Renter’s insurance can provide liability coverage as well as financial solvency in the event of a disaster.  Your belongings can be protected and you can have peace of mind for a relatively small monthly or annual fee.  Renter’s insurance can be quite affordable and offers you coverage in many different situations.

Contact Gebhardt Insurance and protect yourself and your financial health with a solid renter’s insurance policy today.  We will work with you to make sure you get an insurance policy that provides the coverage you need at a price you can afford.

 

 

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