Coverages
True or False? Clients can decide the 'Coverage A' amount they want to be insured for
False! Dwelling coverage is the carriers' estimated minimum replacement cost they require to maintain coverage with them.
True or False: Most water damages are included in home policies
False! Most carriers require they are purchased separately with endorsements
What is the standard windstorm/hailstorm deductible in the Houston area?
Name 2 factors that help determine if roof replacement cost will be offered on a home
1. Age of roof
2. Condition of roof
3. If solar panels are on the roof
Name 3 items 'personal property' can cover in the event of a claim
Any personal items: Electronics, furniture, clothing, handbags, watches, jewelry
Provide a reason a carrier might not offer various water damage coverage endorsements
1. Prior loss history, due to water claims
2. Age of dwelling
3. Particular market doesn't offer those coverages
What is the highest deductible that carriers will offer?
5%
10 years-old
What items do carriers factor in when determining replacement cost coverage (Coverage A)
Major factors include demolition, debris removal, and cost of materials & labor in the current market
Name 3 'optional coverages' that clients can add to their home policy
1. Hidden water damage
2. Water back-up coverage
3. Dwelling-Water Foundation coverage
4. Service Line coverage
5. Equipment Breakdown coverage
Do 'optional coverages' have a different deductible?
Sometimes. This is carrier specific - Some carriers will have separate deductibles for certain optional coverages.
What are some of the home updates carriers are looking for in homes 10-20 years old?
Updated HVAC systems, water heaters, & roof replacement.
True or False? Major equipment & machinery will be covered in the event of a claim.
False! Equipment breakdown coverage is an endorsement that needs to be added to cover items such as HVAC systems, water heaters, dishwashers, etc.
Do you still need 'optional coverages' if you purchased a home warranty?
Yes! Home warranties can be subjective on what they're willing to cover. Some warranty companies will not repair/replace items due to 'sudden & accidental' damages/losses (rather than manufacturer defect), and will advise to go through insurance.
Explain how a home deductible works in the event of a claim
This is the clients portion of financial responsibility in a claim - This amount can usually be paid to the carrier directly, or taken out of the claims settlement. Once damages exceed the deductible, the carrier will pay out the damages, less the deductible
What are some updates carriers are looking for in homes over 20 years-old?
Updates on: Roof, HVAC systems, water heater, electric panels, wiring update, plumbing updates
What kind of policy is needed to property insure a rental property?
Dwelling-Fire or Landlord policy
What does 'foundation coverage' cover?
This coverage is specific to water claims caused by damages to the water lines/pipes that run under the foundation of the home
What is one way of taking advantage of lower wind/hail deductibles without having increased premiums on a home policy?
Purchase a deductible buy-back policy
What are some major 'red flags' on older homes?
Asbestos, galvanized plumbing, copper plumbing, aluminum wiring, dated electric panels