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Special Report for
Homeowners
Insurance Insider
Reveals Little-Known Secrets:
9 Ways You Can Save $
on Your Homeowners Insurance -- And Provide Better Protection for Yourself and the People You Love!
By: Terry Quinn
Your home is
probably your most valuable asset. It is also a huge risk for you
financially. What if something happens to it? A
fire? A flood? Vandalism?
What if someone visiting you slips, falls and suffers
a serious injury? And sues you? An accident like that could put a dent -- or
worse -- in your financial security.
For most people,
insurance is a mystery. They know they need to have insurance for their homes
(mortgage lenders require it), but they don’t understand the coverage provided
by the policy. And they don’t know which insurance companies offer the best --
the best! -- prices. Because they don’t understand the
product, many people think insurance is a rip-off, and it is -- if you pay too much or buy coverage you don’t need.
All homeowners
insurance is not created equal. In fact, almost none of it is. There are thousands of different products
out there, from hundreds of insurance companies. How do you find the
insurance and the insurance company that are best for you? You read this
special report and tap into my vast knowledge of the products and the companies
that offer them.
I am an
insurance “insider.” A licensed member of the “club.”
I’ve sold the product. I know what kind
of insurance fits your needs. And I know what insurance companies sell this
kind of insurance at the best -- lowest! -- price.
Because I’ve specialized in the insurance needs of homeowners and their
families, I have decided to dedicate myself to solving for you some of the
mysteries of homeowners insurance.
Your homeowners policy does not provide coverage for all
potential catastrophes that could damage or destroy your home. Earthquake
and flood are two “perils” for which there is no coverage. (You can get
coverage for earthquake and flood damage in a separate policy or as an
endorsement to your homeowners coverage.) Also, there is no coverage for damage caused
by water that seeps into your home from the ground. You do have coverage for
losses related to fire, smoke, lightning, wind storms, hail, explosions,
vandalism and theft.
There are
different ways to insure your home, both the structure and your personal
property. Let’s take the structure first. There
are two types of coverage: replacement cost and actual cash value.
Replacement cost is better for you, the homeowner. Under replacement cost
coverage, the insurance will cover the cost of replacing the part of the
structure that is damaged, up to a maximum dollar amount. Under actual cash
value, the insurance will cover the cost of replacing the damaged structure
minus an allowance for depreciation. If you have an older home, that allowance
could be quite significant. Unless your
policy specifically says it provides replacement cost coverage, the coverage is
for actual cash value.
So how much
insurance should you have? Basically, unless you want to pay some of the costs
yourself, you should insure your home for what it would cost to rebuild it if
your residence were destroyed. How do you find this out? Your insurance
agent can have an answer for you in no time. If you don’t have an insurance
agent -- and you should -- you can contact your local builders association. In
the home construction world, building costs are calculated on a square foot
basis. As such, to determine the cost to rebuild your home, take the square
footage of your house and multiply by the average per square foot building rate
in your area.
Your possessions
are also insured on a replacement cost or actual cash value basis. Again,
unless specified otherwise, the coverage in your policy is actual cash value. Homeowners policies also have limits on coverage
for such items as jewelry, fine art and computer equipment. Read your
policy and see what these limits are.
For example, the standard policy will provide a maximum of $1,000
coverage for your jewelry if it is lost or stolen. If you have lots of jewelry,
fine art or computer equipment, you should consider purchasing a special
personal property endorsement or “floater” that provides the coverage you need.
Speaking of need,
you need to take written and visual
(still pictures or video) inventories of everything you own in your home and in
other buildings on the property. Include all furniture (indoor and
outdoor), appliances, stereos, computers and other electronic equipment, hobby
materials and recreational equipment, china, silverware, kitchen equipment,
linens, jewelry and clothing. For the major items (computers, televisions,
stereo systems, etc.), write down the serial number, make or model number,
purchase price, present value and date of purchase of each item. If you have
the receipts for the items, attach them to the inventory. Make at least two copies of the inventory and store one of those
copies offsite -- a safe deposit box is a good place. Store the pictures or
video of the inventory offsite as well.
Now that you
know the basics of a homeowners insurance policy, here
are 9 ways you can pay less. In many cases, you can get the same level of
coverage for fewer dollars.
1.
One Insurer, Multiple Policies -- Do you have an automobile insurance
policy? If so, is it with the same insurance company that provides your
homeowners insurance? If the answer’s no, you’re paying too much -- for both policies.
Almost every insurance company that sells homeowners insurance wants its
policyholders to also buy auto insurance from that company. These insurers
offer so-called multi-policy discounts. Usually, these discounts are as much as
10%.
2.
Raise Your Deductible -- The deductible is the amount you pay
before insurance kicks in if you have a claim. For example, if you have a $250
deductible and you file a claim for $1,000 in damage to your home, you pay the
first $250 and your insurer pays the balance, $750. The higher the deductible
you choose, the more you pay. Also, though, the higher deductible, the less
you have to pay for your policy. Depending
on the insurance company, you can save between 12% and 37% if you have a
deductible of $500 to $5,000.
3.
New Is Better -- Insurers really like newer homes.
That’s because it’s less likely something will go wrong with the electrical,
heating and plumbing systems. In addition, the structure itself is in better
shape. Insurers offer discounts of as
much as 8% to 15% if your residence is new.
4.
Location, Location, Location -- Where do you live and what is your
home made of? If you’re in the
5.
Insure the House, Not the Land -- Nobody is going to steal your land.
Fire and high winds won’t “destroy” it. As such, when deciding how much homeowners coverage to have, don’t include the value of the
land, only the value of the house and any other buildings on the property. If
you include the value of the land, you’re paying too much.
6.
Don’t Insure What You Don’t Have -- Each year, you should review your
policy to see what coverage you have for your possessions. If you have made a
major purchase, you will want to increase your limits of coverage, but what if you sell something or
somethings? You don’t need as much coverage. Pay particular attention to
items that are covered by endorsements or “floaters” to your policy, items such
as jewelry and computer equipment.
7.
Better Safe(r) Than Sorry -- Smoke detectors, burglar alarms and
deadbolt locks are usually worth discounts of at least 5%. You can get even bigger
discounts, 15% to 20%, if you install a sophisticated sprinkler system or an
alarm system that rings at the police station or a security company.
However, not all of these systems qualify for discounts. Before you install
one, check with your insurer to find out what type of system qualifies for a
discount and how much you would save on your premium if you installed the
system.
8.
Where There’s Smoke . . . --
There’s fire. Smoking (unattended
cigarette butts, etc.) produces more than 23,000 residential fires in this
country each year. That’s why some insurers have discounts if all the
residents in a home are nonsmokers.
9.
Don’t Jump Around -- If you’ve been with an insurer for a
while and you like that insurer, stay put. Some
insurance companies automatically have discounts for policyholders who have
been with the companies for a certain number of years. For example, 5% for
at least three years, 10% for at least five years.
I won’t kid you.
There’s more to this insurance game than saving money. In fact, while it’s nice
to lower your insurance costs, it’s probably even more important to make sure
you, your loved ones and your assets are covered adequately. It’s not a
pleasant thought, but insurance is about worst-case scenarios.
It’s also about peace of mind, knowing that you have the worst-case scenarios
covered.
Because I know
peace of mind is so important, I am willing -- actually, I’m excited -- to
reveal to you the secrets about insurance. Secrets that ensure you have all the
protection you need.
Why would I just give these
secrets away? Because it’s just as good for my business as it is for you. I want to let you in on the knowledge I
have accumulated as an insurance industry professional and insider. I want to
do this because I have found, time and time again, that generosity and the
willingness to provide really great service come back to me. Tenfold.
In fact, that’s how I have built my business.
There are three
basic steps you can take to protect your and your family’s financial
well-being:
1.
Have an insurance specialist conduct a
risk analysis of your home, car(s) and family. How can you adequately address your
risks with insurance if you don’t even know what these risks are? I’ve found
that most people face more risk than they know. Because everyone is different,
it’s not like you can ask a friend or relative to assess your insurance needs
-- unless they are insiders in this business. If you haven’t had your risks
assessed by an insurance professional, you could be inviting financial
disaster. You need a professional, a knowledgeable insurance insider,
to put together a comprehensive insurance plan that truly protects you. Our
office will do that for FREE.
2.
Use an independent agent. There are several ways home insurance is
sold in this country. Some people buy it by calling a toll-free number and
talking to an employee of an insurance company. Others take advantage of direct
mail offers. And some buy from agents who represent just one insurance company.
A
direct mail piece is not going to be able to assess your level of risk. Do you
really want an insurance company employee to be your agent? And what happens if
the agent who represents just one company doesn’t have the kind of insurance
coverage you need? You need someone who’s going to work for you. And
you need someone who can offer you several options. Someone who can go to
numerous insurance companies and compare their products and prices. Someone
who, if necessary, can place parts of your insurance program with more than one
company. Do you want a good price? Do you want options and flexibility? And do
you want protection against worst-case scenarios? There’s only one option here:
Use an independent agent.
3.
Don’t
trust the financial protection of you, your family and your assets to an
insurance agent who is not a homeowners insurance
specialist. A
specialist? Absolutely. Look, insurance is a huge industry.
There’s insurance for everything. And nobody can specialize in all of it. In fact, a
professional independent agent can specialize in only a few niches -- and
really understand them. And I do. I’ve studied the homeowners
insurance market in our community for years.
I know:
¨
Which homeowners insurers have the
best rates.
¨
Which give the most discounts.
¨
And which provide the best claim service.
I will give you
this information for FREE. No charge. No obligation. I do this because I’ve
built my business on my reputation. I never hard-sell
insurance. I’m in the service business. The better service I provide,
the better it is for all of us.
My clients stay with me because of my service – and they refer me to their family and friends.
I believe I
serve families in our community better than anyone in this area -- in any
profession. I believe this because I spend a lot of time with my clients,
determining their needs, their level of risk, and finding the perfect insurance
program for them.
So if you want
to protect yourself, your family and your assets from a crisis or catastrophe
or just see if you can save money on your insurance, call my office. My staff
and I will be glad to help.
Sincerely,
Terry
Quinn
© 2003, Terry Quinn, Allan M. Walker
Insurance, The reader assumes all responsibilities for his/her own
actions in regards to any items discussed in this report. Adherence to all applicable laws and
regulations, federal, state and local, governing the use of any product or
service described in this report in the