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Colorado Insurance Blog

Category: Home Insurance

Larger Rate Increases Expected in 2022: Here’s Why

Posted on by Alexa Steffes

Across the insurance industry, rates are expected to increase even more this year than they have in recent years. While annual increases are becoming the norm, the jump may be more drastic in 2022.

There are many factors that are driving insurance costs up. Claim payouts are higher than ever, and natural disasters and car accidents are becoming more frequent. Combine that with supply chain issues and labor shortages, and you have the unprecedented market we’re currently in.

Homeowners

Building material costs are at an all-time high

With global supply chain issues and labor shortages, prices for many products have soared over the past few years. Building materials are no exception.

During the first year of the pandemic, the cost of lumber jumped up by 42%. The prices have fluctuated since, but aren’t back to the pre-pandemic prices. In the first three quarters of 2021, steel mill products rose in cost by 81%.

There’s also currently a shortage of at least 200,000 skilled trade workers. 60% of surveyed builders are reporting labor shortages and the vast majority of them don’t expect that problem to go away in the next 6 months.

Price increases from December 2020 – December 2021:

Floor Coverings 3.9%
Window Coverings 8%
Major Appliances 6%
Overall Construction Supplies 18.4%

All of these factors have led to more expensive construction projects for both home repairs and new construction.

Home claims are rising in both severity and frequency

Catastrophic home claims are no longer few and far between, they seem to be happening every other week somewhere in the country.

In 2021, there were 20 natural disasters with losses exceeding $1Billion in the US alone. From 1980-2021 the annual average is 7.4 events, but the annual average in the past 5 years is 17.2 events.

Many scientists and experts attribute the increased frequency of disastrous events to climate change. As our weather and climate changes, severe weather events are becoming more common and severe.

Between the increased frequency and severity of home claims and the higher cost of building materials, home insurance prices will continue to increase. The chances that you’ll need to file a claim on your home are higher, and it will cost even more to repair or rebuild your home than it has previously.

Auto

Supply chain disruptions are causing costly shortages

Supply chain issues are impacting many different industries, including auto production. 7.7 Million fewer vehicles were produced in 2021 due to supply chain complications.

One of the most impactful shortages has been microchips that are used in vehicles. With most vehicles containing higher levels of technology than ever before, it’s been difficult for manufacturers to keep up with demand.

Because of the microchip shortage, there’s a shortfall of new vehicles on the market, which has driven up the cost of used vehicles.

Price increases from December 2020 – December 2021:

New Vehicles 11.8%
Used Vehicles 37.3%

Many rental car companies sold a large portion of their vehicles in order to survive during the pandemic. Once travel increased again over the summer of 2021, they had to restock their fleet of vehicles. With fewer new vehicles on the market due, they turned to used vehicles.

Around the same time, consumers who had extra money from stimulus checks also began shopping for new and used cars. The combination of that and the rental car companies drove the prices of used vehicles up significantly in June. Those prices remained inflated through the end of 2021 and aren’t expected to drop anytime soon.

The cost to repair vehicles keeps rising

In addition to the microchips, there are also supply chain issues impacting wiring harnesses, plastics, and glass used by auto manufacturers. As a result, the cost to repair vehicles is up around 20% and the cost of auto parts is up 6%.

Similar to the skilled labor shortage seen in the construction industry, there’s also a need for 3 times as many trained auto technicians. The delays in obtaining auto parts and the lack of skilled technicians to complete the repairs have made auto repairs take significantly longer.

With cars being stuck in the shop for longer than usual, that takes up even more of the rental car market. People are needing rental cars for longer, and they are harder to find. That drives the cost of rental cars up and exhausts the car insurance coverage limits faster.

Driving has returned to pre-pandemic levels

At the beginning of the pandemic there were fewer drivers on the roads and there were fewer accidents as a result. During that time, many insurance companies decreased premiums and offered credits or refunds.

In 2021, however, we saw a return to pre-pandemic driving levels and a rise in the number and severity of accidents. Insurance companies found themselves with underpriced policies, which is causing them to now increase rates to keep up with the high claim payouts.

If you’d like to discuss your insurance options or get a proposal, give us a call today. We’re here to help!

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Sources:

Semiconductor shortages to cost the auto industry billions. AlixPartners. (2021, September 23). Retrieved January 27, 2022, from https://www.alixpartners.com/media-center/press-releases/press-release-shortages-related-to-semiconductors-to-cost-the-auto-industry-210-billion-in-revenues-this-year-says-new-alixpartners-forecast/

Smith, A. B. (2022, January 24). 2021 U.S. billion-dollar weather and climate disasters in historical context. 2021 U.S. billion-dollar weather and climate disasters in historical context | NOAA Climate.gov. Retrieved January 27, 2022, from https://www.climate.gov/news-features/blogs/beyond-data/2021-us-billion-dollar-weather-and-climate-disasters-historical

U.S. Bureau of Labor Statistics. (2022, January 12). Table 2. consumer price index for all urban consumers (CPI-U): U. S. city average, by detailed expenditure Category – 2021 M12 results. U.S. Bureau of Labor Statistics. Retrieved January 27, 2022, from https://www.bls.gov/news.release/cpi.t02.htm

NOAA National Centers for Environmental Information (NCEI) U.S. Billion-Dollar Weather and Climate Disasters (2022). https://www.ncdc.noaa.gov/billions/, DOI: 10.25921/stkw-7w73

How Home Insurance Impacts Remote Businesses

Posted on by admin

Integrity First Insurance was built on providing reliable service to Colorado residents. We treat our clients like family. Developing these close bonds enables us to offer policies that directly align with the needs of our clients.  We have versatile policies that change over time as our clients continue on their life’s journey. We look forward to assisting you.

How Home Insurance Impacts Remote Businesses

Home insurance helps you maximize your investment. You’ve likely made a lot of sacrifices in order to acquire your Colorado residence. Home insurance covers you if your property suffers interior or exterior damage. All of your personal items inside the home are also covered if you are a victim of theft. Taking inventory of your personal items is recommended, as that will help the process run smoothly if your items are damaged. Liability coverage protects you if a guest is injured on your property or if you accidentally cause damage to your neighbors’ property.

If you are a local business owner, you’re probably aware of the emerging trend regarding remote businesses. If you plan to start operating your business from home in the future, you have to consider a few possibilities. Do you plan to invite customers to your home? If so, consider increasing your liability limits. You’ll also need to amend your policy in order to cover any work-related equipment if it is damaged or potentially stolen. If you’re operating a remote business, then technology is a major asset. You need somewhere to safely store files and data. Cyber liability coverage is a worthwhile investment. This type of coverage protects your business if your network suffers a data breach. Errors & Omissions coverage is another option to consider.

Integrity First Insurance Will Help You Protect Your Investment

Visit our website to learn more information about home insurance.

How to Create a Home Inventory

Posted on by Alexa Steffes

We all hope we’ll never have to file an insurance claim on our home, but the recent fire in Superior and Louisville was a reminder that bad things can happen in an instant. If you’re prepared with a home inventory, it can help make things go more smoothly if disaster strikes and you have to replace everything.

One simple way to create an inventory of your belongings is to do a video walk through of your home. Press record on your cell phone or camera and walk from room to room panning over your belongings. You can narrate what you’re looking at and open any cupboards or drawers where valuables might be kept. Once you have a video of your possessions, be sure to upload it to cloud storage or email it to yourself or someone you trust to ensure you can still access it if something happens to your phone or camera.

Another option is to fill out a Home Inventory Checklist. If you want a more itemized list that you can easily add and remove items from, you can download an app to help you create an inventory. Some options include Home Contents or Everspruce. Both apps have a free version, or you can elect to pay a fee to unlock additional features.

Here are some tips from the Insurance Information Institute for creating a list of your belongings:

  • Pick an easy spot to start – A contained area—like your small kitchen appliance cabinet, your sporting equipment closet or your handbag shelf—is a great place to get started.
  • List recent purchases – Another way to start is with recent purchases—get into the inventory habit and then go back tackle your older possessions.
  • Include the basic information – In general, describe each item you record, and note where you bought it, the make and model, what you paid and any other detail that might help in the event you need to make a claim.
  • Count clothing by general category – For example, “5 pairs of jeans, 3 pairs of sneakers…” Make note of any items that are especially valuable.
  • Record serial numbers – Usually found on the back or bottom of major appliances and electronic equipment, serial numbers are a useful reference.
  • Check coverage on big ticket items – Jewelry, art and collectibles may have increased in value and may need special coverage separate from your standard homeowners insurance policy. While you’re making your home inventory list, check with your agent to make sure you have adequate insurance for these items before there is a loss.
  • Don’t forget off-site items – Your belongings kept in a self-storage facility are covered by your homeowners insurance, too. Make sure you include them in your inventory.
  • Keep proof of value – Store sales receipts, purchase contracts, and appraisals with your list.
  • Add significant new purchases to your list – Make it a habit to add the item information and receipts to your inventory while the details are fresh in your mind.
  • Store a copy of your paper inventory outside the home – Keep it—along with applicable receipts and appraisals—in a safe deposit box or at a friend’s or relative’s home. Make at least one backup copy of your inventory document and store it separately. An easy way to make digital backup copies of your paper list is to take pictures of it on your smartphone.

Sources:

How to create a home inventory. (n.d.). Retrieved April 19, 2021, from https://www.iii.org/article/how-create-home-inventory

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Home Insurance: What It Does and Doesn’t Cover

Posted on by admin

When you are on the search for your first home in Colorado, you also need to take into consideration the protection for that home. Homeowners insurance is imperative to protect your family, personal belongings, and the home itself. However, you need to ensure you choose the right policy, and this will depend greatly on what is and is not covered. Therefore, before you commit to a particular policy, make sure to speak to us at Integrity First Insurance.

What Is Typically Covered by Home Insurance?

The great thing about home insurance is that it offers you peace of mind, but it does so much more than that. Homeowner’s insurance typically provides protection for the structure from vehicular accidents, fires, and weather-related damage. In addition, it offers protection for the home against theft or vandalism, as well as personal liability protection from potential lawsuits in the event someone suffers an injury while at your home.

What Is Usually Not Covered by Homeowners Insurance?

There are some things that home insurance simply will not cover. For instance, if a natural disaster like a hurricane, tornado, earthquake, or landslide causes power failure or damage to your home, your standard policy won’t provide coverage. Neglect, pet damage, and the like also won’t be covered.

If you are concerned about sewage backup, leaks, flooding, or other water-related damage, you will want to consider a separate flood insurance policy.

While homeowners insurance is not typically required by the state, it is often required by a lender if you are financing your home. Further, it is a wise investment to protect the roof over your head. If you need help securing homeowners insurance for your Colorado home, reach out to the team at Integrity First Insurance to explore the options available to you.

10 Things You Should Know About Insurance In Colorado

Posted on by Alexa Steffes

1. Extreme weather impacts insurance rates in Colorado.

Hail and heavy rains can cause damage to cars, homes, boats, motorcycles, etc. Many claims are filed when there’s a big storm, which leads to the average insurance rates to increase.

2. Car insurance is more expensive in Colorado than in many other states.

The average car insurance rates have increased by more than 50% in the past 10 years. There are plenty of reasons that car insurance is increasing across the country, and more specifically in Colorado.

Read more about the increasing rates in Colorado in our blog 5 Reasons Insurance Rates Keep Increasing in Colorado

3. Population increases lead to rate increases.

The rapidly increasing population and crowded roads in Colorado has led to more accidents and higher car insurance rates.

4. The minimum liability limits to legally drive in Colorado are $25K/$50K/$15K.

Although you can legally drive with the minimum limits, they aren’t enough to protect your family and your future. Higher limits can save you a lot of money in the long run.

3 Ways You Can Protect Yourself From Personal Injury Attorneys

5. Homeowners in Colorado are more likely to file a roof claim than those in most other states.

Between 2017-2019, Colorado had the second most hail claims in the US. The only state with more in that span was Texas. With such severe hail storms in Colorado, most residents will file a roof claim in their lifetime.

6. As of 2019, 16.3% of drivers in Colorado are driving without insurance.

According to the Insurance Information Institute, the national average in 2019 was 12.6%. Colorado is well over the national average, which is why our Uninsured Motorist coverage rates are on the rise.

Want to know more about the importance of Uninsured Motorist coverage? Check out our blog Do I Need Uninsured Motorist Coverage If I Have Health Insurance?

7. Wildfires have a big impact on insurance in Colorado.

Homes in wildfire-prone areas are difficult to insure and come with a big price tag.

Here’s more information about the impact of wildfires on insurance in Colorado: What You Should Know About Wildfires and Insurance

8. Even though Colorado is a landlocked state, there is still risk of flooding.

Flooding doesn’t only happen near large bodies of water. Rapid rainfall or runoff from areas previously damaged by wildfire can cause severe flooding. You can add a flood endorsement on some home policies in Colorado, or buy a separate policy to cover your risk.

Read about flood insurance here: Flood Insurance 101 

9. Vacation rentals, like AirBnb and VRBO are becoming more popular in Colorado.

Colorado is an ideal vacation destination for many in both the summer and the winter. That means the demand for vacation rentals is skyrocketing. Renting out a second home or even a room in your current home is a great way to bring in some extra income. Luckily, there are plenty of options available for insuring homes used as a vacation rental, but it’s important to get the right coverage.

Vacation Rental Property Insurance: What You Need to Know

10. Rental car rates often skyrocket during hail season.

After a big hail storm, many people need a rental car while their car is getting fixed. With a limited inventory, most rental car companies sell out and the rates become inflated. Check your car insurance policy to make sure you have enough rental car coverage to account for higher costs associated with hail season.

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10 Things to do to Prepare Your Home for Fall

Posted on by Alexa Steffes

Fall is a wonderful time — if your home is ready for it. So enjoy the last few weeks of warmer weather, but do a little preventative maintenance while you’re at it. You’ll fix small problems before they become big, and big ones before they become catastrophes.

Here are 10 tips to help:

  1. Look up. Examine your roof closely. Moss should be removed and debris cleared from gutters and downspouts. Repairing damage is crucial before fall weather is in full swing.
  2. Look down. Check for signs of animals and insects around your home and garage, including the basement and crawlspace. If you need help getting unwanted guests out, don’t hesitate to bring in a professional.
  3. Keep things warm. Heat escapes through leaks around windows and doors, so seal up any drafty areas. Outside, put covers over faucets before temperatures drop.
  4. Keep things dry. Drain outdoor hoses, faucets and irrigation systems. Look in the basement and crawlspace for wet spots. And make sure your water heater or boiler aren’t leaking.
  5. Clear the air (or vents and filters, at least). When’s the last time you checked your dryer vent? You should take a look at attic vents and exhaust ducts as well. And change that furnace filter, too!
  6. Take a walk. Cracks in your driveway or walkways will only get bigger, so get them fixed soon. If your deck has signs of wear, make repairs while the weather is still good.
  7. Get a tune-up. You or a professional should clean and tune your furnace, boiler and/or water heater, as well as your oven and range.
  8. Don’t play with fire. Before building your first fire of the season, check for soot or creosote build-up.
  9. Don’t play with fire extinguishers, either. But check them to ensure they still have pressure. Don’t have fire extinguishers? Put them on your shopping list, ideally one for each floor.
  10. Don’t forget those smoke and carbon-monoxide detectors. Replace batteries when needed, and test regularly that alarms are working.

Reposted with permission from the original author, Safeco Insurance®.

Top image by Flickr user Lali Masriera.

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Thinking About a Side Hustle? Check Your Insurance Policy First!

Posted on by Alexa Steffes

If you’re a stay-at-home parent, need some extra money in addition to your other income, or just want more flexibility in your life, you might be able to find a side hustle to make money in your spare time. There are tons of options out there to make some extra cash.

Before jumping in with both feet, you should consider talking to your insurance agent or reviewing your policies to ensure you have the coverage you need.

Renting out your house

Whether you have a second home or just a room or floor in your primary home that you plan to rent out, it’s important to make sure you have the correct coverage on your home insurance policy. Even if it’s only rented a few times a year, you may still need specialized coverage.

Most insurance companies consider short-term rentals a business venture.  Home insurance doesn’t often cover business activities, so a standard policy might not suit your needs.

Each insurance carrier has their own way of covering a vacation rental, so talking to a licensed agent is the best way to ensure you have the correct coverage on your policy.

Read more about insurance for vacation rentals in our blog Vacation Rental Property Insurance: What You Need to Know

Rideshare

Another popular way to make some extra money is to drive for a rideshare company like Uber or Lyft. Most rideshare companies require that you have your own car insurance, and some provide extra coverage once you have connected with a passenger.

There is an additional risk when you’re driving for a rideshare company, so insurance carriers exclude coverage for driving for hire. Luckily, many insurance companies offer a Rideshare endorsement that you can add to the policy.

In most cases, Rideshare coverage is inexpensive, and it covers a gap that would otherwise leave you exposed. If you don’t have the proper coverage you could be left without coverage if you get in an accident. Your personal auto policy may also be cancelled for violating the terms and conditions.

The best way to find out if your policy offers Rideshare coverage is to call your agent and ask.

Check out our blog, What Uber and Lyft Drivers Need to Know About Insurance for more information about Rideshare coverage.

Freelancing from home

If you have a special set of skills, freelancing may be a great opportunity to make some money in your free time. Being able to work wherever you are is a huge plus to freelancing. You can write a blog on the beach, teach a class from your living room, or build a website from your bedroom.

One important thing to consider when working from home is safety. Make sure you don’t have cords laying in high traffic areas that could cause someone to trip. If you’re going to be working quite a few hours, you may want to invest in an ergonomic work area. Good posture, a solid office chair and a workspace that is the appropriate height can go a long way to prevent injury.

Another aspect to consider is your homeowners or renters insurance. If you have expensive equipment, you may need to increase your coverage limits. Your policy may also have certain guidelines or limitations regarding foot traffic in your home, so if you have people coming in and out of your house for business purposes, talk to your agent.

Our blog Working From Home: Safety and Insurance Risks provides more information about working from home safely.

DIY, Crafts, Upcycling, Selling Products (like essential oils, clothing, or makeup)

Making and selling items is a fun way to express your creativity while earning some cash. If you have products in your home, you may need to look over your insurance policy to make sure you have coverage for those items.

Most home or renters policies don’t automatically cover property related to a business. You can often add an endorsement to your policy to extend the coverage that you need. If your policy doesn’t have enough coverage for your situation, you can also consider a commercial property policy.

If you have any questions about what coverage your insurance policy offers in relation to your side hustle, give us a call. We’re happy to review your coverages and find a policy that will fit your unique needs!

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Spring Home Maintenance Tips

Posted on by Alexa Steffes

Each year Spring brings new life, nice weather, some rain, and often the motivation for some deep cleaning. It’s an opportunity to get a clean slate for the rest of the year. Consumer Reports suggests tackling the following home maintenance projects each Spring.

1. Clean Household Filters

Clean or replace the filter of any appliance with a water or air filter. You can prolong the life of your appliances by keeping up with the proper maintenance, including changing your filters.

Here’s a list from Consumer Reports of filters in your home that you should be changing:

  • Window ACs
  • Over-the-range microwaves
  • Range hoods
  • Dehumidifiers
  • Dishwashers with manual filters
  • Vacuums
  • Refrigerators
  • Water filters
  • Air purifiers
  • Gas furnaces

2. De-Grime Countertop Appliances

Appliances can get pretty dirty sitting on the counter, especially the ones that are near the stove. I know my toaster gets really greasy overtime, probably because it’s right next to my range. Scrub any grease that has built-up one your countertop appliances.

Appliances to consider cleaning:

  • Coffee maker
  • Toaster
  • Toaster oven
  • Blender
  • Food processor
  • Microwave
  • Air fryer

3. Wash Windows

I have 2 dogs and a toddler, so the bottom half of my windows get really dirty and smudged. I definitely can’t get away with only washing my windows once a year, but I will admit that I only wash the outside of the windows in the Spring. It’s the perfect time to get the windows sparkling clean so you can watch the world coming alive outside.

Here are some window washing tips from Consumer Reports:

  1. Before you start on the windows, clean dirty frames by vacuuming or wiping away the accumulated dust. Using a slightly damp sponge to apply the window cleaning solution, start from the top down.
  2. Wipe across the window with a dampened squeegee blade, then wipe the blade.
  3. Follow with a rinse of clean water applied with a chamois cloth. Polish off any remaining moisture with the dry cloth.

4. Prep Your Lawn Mower

If you have a lawn mower, you should consider some routine maintenance each Spring to prolong its lifespan and keep it running well. Gas mowers may need an oil change or a top off.

You should also check the spark plugs as they need to be changed every 100 hours of operation. Lastly, change the air filer to help the engine run more efficiently.

5. Spruce Up Your Lawn

Clean up dead leaves that may be left over from the fall or winter. If the grass is covered by dead leaves, the sun won’t be able to reach it and it won’t grow as well.

You can also clear walkways and driveways from dirt and debris and seal any new gaps or cracks to protect concrete from further water damage.

6. Get Your Gas Grill Ready

It’s finally grilling season again! Time to get the grill hooked up to the propane line and clean it up. Clear away spiderwebs, dirt, and debris that may have built-up during the winter. Clean the grates and inside if necessary.

Check for any gas leaks before you reconnect the propane tank and light the grill.

7. Pressure Wash Your Deck

Remove everything from the deck and sweep away any leaves, dirt or debris that might have accumulated. Pressure wash the deck, using a deck cleaner if there are tough spots.

Washing your deck each Spring will prevent dirt from building up overtime and help with the longevity of your wood.

8. Organize Your Garage

Set your summer up for success by getting your garage in order. Don’t waste the sunny days and nice weather hunting down your tent, camping chairs, or other summer supplies. Take the time in the Spring to get rid of the things you don’t need anymore by either throwing them away, donating them, or throwing a garage sale.

Once you’ve narrowed down the things you intend to keep, get them organized and make sure everything has a place. Utilize hooks on the walls and ceiling, along with shelves if you have the room.

If you are able to park your car(s) in the garage, they’re less likely to be damaged by hail when it inevitably falls in the summer months. That can save you the hassle of having to get your car fixed, along with the money you’d have to pay for your car insurance deductible.

9. Check Your Tires

Check the air pressure and add air if needed. Rotate your tires if you haven’t done so recently. Check the tread to make sure your tires aren’t too worn and one side isn’t wearing significantly more. If you notice uneven wear, consider taking your car in for an alignment.

If you put snow tires on your car, make sure you replace them with your all-season tires.

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Sources:

Farrell, M. (2020, January 26). 12 filters you should be changing at home. Retrieved April 28, 2021, from https://www.consumerreports.org/home-maintenance-repairs/filters-you-should-be-changing-at-home/

Consumer Reports. (2020, March 19). Chores to get done if you’re stuck at home. Retrieved April 28, 2021, from https://www.consumerreports.org/home-maintenance-repairs/projects-to-do-when-youre-stuck-at-home/

Do You Have Enough Coverage For Your Belongings?

Posted on by Alexa Steffes

One coverage included on home, condo and renters policies is Personal Property coverage. If there is a covered loss on your home that results in your belongings being damaged, your Personal Property coverage will extend to help cover the costs to replace your property.

Most homeowners, condo and renters policies default to Actual Cash Value coverage for personal property.

That means if your belongings were damaged or destroyed in a loss, your claim payout would be the original value minus depreciation for age and wear & tear. That’s not going to go very far when it comes to replacing your things.

At Integrity First Insurance, we always try to write policies with Replacement Cost coverage instead of Actual Cash Value. With Replacement Cost coverage, our clients are given the full cost to actually replace an item, rather than the depreciated value.

How do you know if you have enough coverage?

One way to account for the personal property you have in your home is to fill out a Home Inventory Checklist. Having an inventory of your belongings is a great way to speed along the claim process if you have damaged property. You won’t have to spend hours trying to remember every little thing, and it’ll help your claim adjuster verify what you had prior to the loss.

It can also be helpful to take photos of any valuable or unique items you have. That makes it easier to prove what you have if any questions arise during the claim process.

How to create a home inventory:

Here are some tips from the Insurance Information Institute for creating a list of your belongings:

  • Pick an easy spot to start – A contained area—like your small kitchen appliance cabinet, your sporting equipment closet or your handbag shelf—is a great place to get started.
  • List recent purchases – Another way to start is with recent purchases—get into the inventory habit and then go back tackle your older possessions.
  • Include the basic information – In general, describe each item you record, and note where you bought it, the make and model, what you paid and any other detail that might help in the event you need to make a claim.
  • Count clothing by general category – For example, “5 pairs of jeans, 3 pairs of sneakers…” Make note of any items that are especially valuable.
  • Record serial numbers – Usually found on the back or bottom of major appliances and electronic equipment, serial numbers are a useful reference.
  • Check coverage on big ticket items – Jewelry, art and collectibles may have increased in value and may need special coverage separate from your standard homeowners insurance policy. While you’re making your home inventory list, check with your agent to make sure you have adequate insurance for these items before there is a loss.
  • Don’t forget off-site items – Your belongings kept in a self-storage facility are covered by your homeowners insurance, too. Make sure you include them in your inventory.
  • Keep proof of value – Store sales receipts, purchase contracts, and appraisals with your list.
  • Add significant new purchases to your list – Make it a habit to add the item information and receipts to your inventory while the details are fresh in your mind.
  • Store a copy of your paper inventory outside the home – Keep it—along with applicable receipts and appraisals—in a safe deposit box or at a friend’s or relative’s home. Make at least one backup copy of your inventory document and store it separately. An easy way to make digital backup copies of your paper list is to take pictures of it on your smartphone.

Sources:

How to create a home inventory. (n.d.). Retrieved April 19, 2021, from https://www.iii.org/article/how-create-home-inventory
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What You Need to Know About Landlord Insurance

Posted on by Alexa Steffes

As a landlord, you want insurance that’s tailored specifically to protect your rental properties. A Landlord Protection policy, also called a Dwelling Fire policy, gives you choices when purchasing the insurance coverage you need.

Rental properties can be a great investment, especially if you protect your assets with excellent coverage. Make sure that you and your property are covered when choosing a landlord protection insurance policy.

For starters, make sure your property is on the correct type of coverage form. In many instances, landlords will purchase a property, spend a little time fixing it up, then will rent it out after the repairs are complete. This is perfectly fine; however, it’s in your best interest to fully disclose the extent of the anticipated renovations with your agent because a special form dwelling fire policy (which is commonly used to insure residential rental properties) has a couple of key conditions in it:

  • While freezing is indeed a covered peril, coverage only applies if you have maintained heat in the building or shut off the water supply and drained all systems and appliances of water. This is obviously a huge problem during the colder months, so pay a little extra to your utility company to keep the heat on in the house. Otherwise, you run the risk of having a large water-related claim go uncovered due to frozen pipes.
  • Vandalism, malicious mischief, and theft are all covered as long as the house isn’t vacant. If the dwelling has been vacant for more than 60 days prior to a loss caused by one of these perils, coverage is excluded.

If you plan on taking several months to renovate a property, your property may need to be written with a specialty insurance company until renovations are complete. In many cases, vacant properties are only eligible for basic form coverage (which means you are only covered for a small list of specified perils); however, there are some options in the marketplace to expand the list of covered perils for vacant properties. Once the renovations are complete and a tenant is about to move in, you can put the property back on a standard rental dwelling insurance policy.

In addition, keep in mind that water-related losses such as flood and water backup of sewers and drains are not covered in any type of rental property policy (vacant or occupied), so additional coverage will need to be purchased to properly address these perils.

Lastly, it’s important to protect yourself with liability insurance. Landlord Protection liability insurance options protect you and your spouse or domestic partner against personal injury, wrongful eviction, or wrongful entry as well as other non-bodily injury claims such as libel and slander.

The more assets and exposures you have, like rental units, the more important it is to have adequate liability insurance. I recommend getting an umbrella policy to go above and beyond all of your underlying policies, including your auto, home, landlord, and any recreational vehicles. With an umbrella policy, you can get an extra million dollars or more of liability coverage for only a few hundred dollars a year.

If you’re a landlord or are considering purchasing a rental property, give us a call. We’ll get to know you and your unique risks so we can tailor an insurance package to fit your needs.

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