What Antiques Roadshow and Pawn Stars Teach Us about Home Insurance

Reality television isn't just about watching people fight and drink too much; there are some programs such as Antiques Roadshow and Pawn Stars that actually dispense valuable lessons that you can bring into your everyday life. Let’s take a look at a few important lessons these shows can teach you when you’re in the market for home or renter’s insurance. 

·         You may not realize the value of your things: How often has an individual brought a family heirloom into the Antiques Roadshow and been completely shocked at what the item is worth? Often, these people understand that they have an emotional value placed on the item, but few realize exactly how much monetary value it holds. And when people find out that their grandmother’s quilts, their great aunt's portrait, or their uncle's old tea set is worth tens or even hundreds of thousands of dollars, the realization that must soon follow is that they have never carried enough home insurance to cover this magnitude of financial loss if the item had been damaged in an insurable incident. Don't wait for PBS's Antiques Roadshow to come to your town before you find out how much your stuff is worth. Instead, have an appraiser come through and look at those items that you think are antique and possibly valuable then adjust your insurance limits as needed.

·         Beauty doesn’t correspond to value: Even the ugliest knick-knack could be worth thousands to the right buyer. Don’t get appraisals on just those items with aesthetic appeal, but on all potentially valuable things.

·         Appraised value doesn’t dictate sale price and may not reflect insurance value: Pawn Stars offers an alternative look at the value of the items we hold on to. While Antiques Roadshow focuses on appraising antiques and collectibles, Pawn Stars focuses on making an offer to buy an item – young or old – that is worth something. Often, the price they buy it for is less than it is appraised for and the appraisal price could even be less than the owner would receive if selling it at an auction with excited collectors. When buying insurance, it’s important to protect the appraised value of items and to consider whether the insurer pays actual or replacement value according to your policy.

Our agents have many ideas about how to get you the best Columbus business insurance coverage to protect your assets. Stop by or give us a call at 614-221-1500 to find out how we can help.

What you Need to Know About Home Insurance

We all hear about home insurance on a daily basis. Even though we hear many stories about the importance of home owner’s coverage, how much does the average consumer know about their homeowner’s policy? A recent study shows consumers know more about the contents of their breakfast cereal than their home insurance. Taking that into consideration, let’s take a look at the basics of homeowner’s coverage.

 

Who needs home insurance?

Any homeowner that doesn’t want the financial burden of replacing a home that has been devastated by fire, hurricane, tornado, or other insurable event, needs home insurance. If you have a mortgage on your home, you’re required to have a home insurance policy because the enormous financial responsibility of replacing your home lies with your lender. If you do not have a mortgage, then no one can force you to have home insurance; without this important coverage, or an enormous bank account, you will not have protection against the financial loss that a natural or man-made disaster can cause.
Imagine having to tap into your savings as well as possibly facing tax or early withdrawal penalties in order to rebuild and refurnish a home lost to fire. While you may have the funds to do so, do you really want to risk the feeling of security your savings brings? Instead, with a home insurance policy, you can look to your insurance carrier to cover the costs over your deductible and below your policy limits.

 

What does home insurance cover?

You will have to look at your individual policy to find out the details of your coverage, but your homeowner’s insurance covers many different scenarios. In general, some of the coverages you can expect with your policy include:

• Loss of the main structure.
• Loss of use.
• Loss of outer buildings.
• Loss of contents/ personal possessions.
• Liability coverage.
• Damages to the outer building, contents or main structure.

There are many different classes of home insurance as well as several coverage options to choose from. If you live in a townhouse or condo, you will only have coverage that focuses on the internal walls and contents rather than exterior areas.

 

What does my home insurance NOT cover?

Depending on the choices you make when purchasing coverage, your specific policy may not cover certain events that your friends, neighbors’ and family members’ policies do. You can rest assured that no home insurance policy will cover things like:

• Flood damage.
• Mold removal or damage.
• Bed bugs.
• Everyday wear and tear.
• Acts of war.

Again, it is important not to over-generalize coverage restrictions. To find out what your policy does and does not cover, you should read your actual policy pages or call your agent to review your current coverage.

 

What are policy limits?

One way to control the cost of your premiums is to adjust your policy limits. Policy limits are the maximum amount your insurer will pay toward damages caused by an insurable incident. In home insurance policies, there may be several different limits set for different coverages. For instance, your contents may have a limit of $50,000 while your structure is insured up to $150,000.
While lower limits create a lower premium, they also expose you to additional risk. If your actual damages exceed the amount of your limits, you must pay the difference out-of-pocket. On the other hand, if you choose limits that exceed the actual value of your contents or rebuilding costs, then you will not be paid that excess if you suffer a total loss because the goal of insurance is to make you whole, not to give a profit.

 

What are deductibles?

Another way to control your policy premiums is by agreeing to take on a higher percentage of the financial burden of an insurable loss. You do this through having a deductible. The deductible is the amount that you must pay out of your own pocket for damages. Any financial liability above your deductible, but below the policy limits, is the responsibility of the insurance company. 
For example; during a hurricane, let’s say your roof is damaged. The insurance company assesses the damage, says that they will cover your roof claim, and the total of the damages is $5,000. If your deductible is $1,000, you are responsible for paying $1,000 toward the repair while your insurer pays the remaining $4,000, provided that does not exceed your limit. Homeowner’s policies will, at times, have more than one deductible depending on your regions specific risk.
While home insurance may technically be an optional policy for some, the reality is that few investments will have such affordable protection against a loss. Not only can home insurance help protect your future financial goals; it can also give your family the means to regain comfort quickly after a disaster. Call us at 614-221-1500 for a free Columbus home insurance quote.

JG

What can Affect the Price of your Home insurance?

Your personalized quote for home insurance is not found on a standard diagram that matches your age, home value and deductible information to a set price. Home insurance quotes are explicitly developed for each applicant and are based on the very personal details of your lifestyle and living space. Here’s a taste of some of the factors that are involved in your premium pricing:

The age of the home: Older homes are less fortified against natural disasters than newer homes, and are also more expensive to repair. Newer homes are built to new safety standards and with more durable materials. What does this mean to you? If you have an older home, you can expect a more expensive home insurance quote.

The construction of the home: Wood frame houses are susceptible to fire in a way that concrete block and brick homes are not. Concrete homes can also stand up to harsher environmental elements. That makes wood frame houses more expensive to insure.

Fire protection options: Many times, smaller towns do not have their own fire department. Instead, they may have a volunteer force to fight small blazes and a force from a bigger city stepping in to control larger fires.

Continue reading "What can Affect the Price of your Home insurance?" or contact us at 614-221-1500 to learn more about Columbus home insurance.