3 Big Changes in Home Insurance That Can Cost You Big Money!

There are 3 Big Changes in Home Insurance that can cost you big money! If you are like most homeowners you buy a home policy when you close on a new home and stick it in the drawer. Perhaps you take a glance at it when it renews each year, but for the most part you do not pay much attention to home insurance. It stays the same pretty much right? Not exactly.

There are 3 big changes that you may not be aware of about your home insurance. Either the current policy has been endorsed with new changes or amendents – those pretty much went in the round file (trash) or you have been re-written a new home policy when you called your insurance agent to inquire about why your home insurance is so high.

The first change and a doozy is the endorsement added to many Arizona home policies. The ROOF REPLACEMENT SCHEDULE. As professional independent insurance agents in Arizona we know there are 1000’s of homeowners insured with a roof schedule and they are not even aware of it. They find out in the worst way and that is when they file a roof claim. 

It goes something like this: “Mr. Jones we have your check ready to send out for your recent micro-burst roof damage. The total damage for repairs comes to $25,000. Your policy has a roof schedule, your roof is approximately 10 years old and according to the roof schedule we will be depreciating $1500 for each year. Your check for $10,000 is being sent today.” 

And this is where you say “What…I thought I would get a brand new roof!” Nope. This is the roof schedule boogy man. The roof schedule boogy man typically gets you a check for about 1/2 of what it takes to repair or replace your roof. Now, in all fairness home insurance companies are in the for-profit business, so the roof schedule helps mitigate losses on old and outdated roofs. 

However, this does not mean that you have to buy a home insurance policy with a roof schedule. All home insurance companies in Arizona have different underwriting and rating rules. Chances are great if you use an agent with access to 1 single company you might have a roof schedule by default – as in there were no other options presented to you because, well, there were no other options. 

The 2nd Big Home Insurance Change that can cost you big money is: Water Backup. Typical home insurance pays for water damage from sudden and accidental escape of water from a broken pipe or burst appliance line. While this water damage is horrible it is not the worst. The worst is “black water” or “sewer backup water” and this is typically excluded from your home policy. You can add it to your policy but it will cost you. However, with more water backup claims being presented, several home insurance companies represented by independent agents are offering at a minimum $5000-$10,000 in standard water backup coverage for no extra charge. It is much harder to clean up yucky, stinky, toxic backup water than regular water. Read your home insurance declarations to see if water backup is on your current policy or call us for a review at 520-444-8607.

The last big change in home insurance that can cost you big money is pretty sneaky! Your REVISED HOME INSURANCE DEDUCTIBLE. You may have received your Arizona home insurance renewal a few years back and noticed that you could renew for a price of X if you agreed to a 1/2% or 1% deductible. This again was done in an effort to reduce the home insurance companies exposure. As professional risk managers we’re all for higher deductibles to save money and prevent you from making small claims that will negatively impact you. However, what the average home insurance consumer does not realize is that they can keep a lower deductible ie $1000.00 instead of having to agree to say a $3000 deductible (1%) on a $300,000 home.

At Tucson Insurance and Pacific Insurance Agency we are looking for ways to save you money, protect you properly against the risks you face, and take out a bunch of “Gotcha’s” like roof depreciation schedules, water backup and big jumps in your home insurance deductibles.

If you are like most homeowners, you buy a home policy and it renews automatically with your home mortgage escrow year on year and don’t give it much thought. Even when the insurance company sends renewals with endorsements and adjustments, most just assume it’s all good. If you have an independent agent you’ll have more options available to you and in the long run save more money – in both premiums paid and risk management. 

You can get a free professional review of your insurance needs from one of our agents today – call 520-444-8607, submit a request for an agent to contact you, or get secure online home quotes here.

The John Foxworthy Tucson Insurance $500 Recovery Fund Postcard

Tucson Insurance AgencyWhat’s happening in the personal lines insurance world and why you should care.  Property insurance is becoming a problem for most areas of the country including Arizona.  Losses from wildfires, tornadoes, hail, flooding, and storms are crushing insurance carriers profits. 

This has prompted the “car insurance price war” to heat up even more so. Why? Because the profit margin in auto insurance is much better than that of property (home) insurance.  This is why you see direct writer car insurance companies growing rapidly, however, they are shunning property insurance. They will offer home insurance but will often farm it out or broker to another company willing to take the risk.  While this is becoming more common it does not have to be the norm.

I research 7-10 Insurance Carriers for You!

The John Foxworthy Tucson Insurance $500 Recovery Fund Postcard is to have a little fun but also to put real dollars back in your pocket and giving you superior coverage.  In Arizona there are several top A rated carriers that are competing in price for auto insurance without punishing you on the home insurance side.  Top carriers like Encompass, Auto-Owners, and Kemper Preferred are offering great rates on package policies that often provide superior value and coverage too.

To date the “World’s Ugliest Postcard” has saved Tucsonan’s approximately $150,000.00!! Call me at (520) 444-8607 today.

Tucson Home Insurance Rates Will Trend Up

“Hey – why did my Tucson Home Insurance Rates Go Up…Again?”

Tucson Home insurance rates are on the rise and the outlook is that the trend will continue.  Homeowners insurance in general has been underpriced and an unprofitable line of insurance for most every insurance companies.

When Arizona property owners open up their renewals they will most likely see rate increases from 10 to 40 percent higher.  This is because there has been a perfect storm brewing for a long time when it comes to home insurance rates.  While some of the milder weather states like Arizona, New Mexico and Colorado have dodged big premium increases this may soon change.

The perfect home insurance storm is a convergence of record low interest rates, a poor economy, record catastrophes from natural disasters (like Superstorm Sandy, Joplin Tornadoes, wildfires and forest fires in Colorado and the Western US) and a spike in home burglary claims.

It may not be too far in the future that Tucson homeowners will face more rate increases on property policies but may also face availability issues.  Rates will most likely jump for AZ landlords insurance policies too. As insurance companies look to improve profitability they are re-inspecting many of the Tucson are home insurance policies that they have on the books.  Homes can be non-renewed if certain maintenance problems are noted by inspectors.

Most non-renewal letters go out for condition issues with the home and often include the following:

  • Roof Detioration (shingles missing, roof rolling and cracking)
  • Trees and Vegetation too close to Residence (limbs of trees touching structure)
  • Dry Rot and Paint Issues (peeling paint and dry rot on fascia)
  • Overall care (abandoned cars, refrigerators, beds and junk around property)

So how can you offset the Tucson home insurance rate increases that are sure to come?

Review your policy and get a second opinion.  At TucsonInsurance.com agency we recommend that you open your renewal package and review it with your agent.  Make sure you review the discounts section to be sure that some have not accidently dropped in error.  Other options include having your agent check rates for higher deductibles, alarm discounts, multi-policy bundling discounts, and shopping your rates with multiple carriers.  You can send us a request to review and quote your home policy right here.