Manager
Joe Kemp, CLF
Financial Representative
Office:
Wood Village
(503) 492-2228
• 11 Years Financial Planning Industry Experience
• Licensed Securities Representative
• Registered Principle
• Licensed Insurance professional
• Member NAIFA (National Association of Insurance and Financial advisors)
• Member GAMA (General Agency Managers Association)
• 2010 Regional Champion Agency Manager
• 2010 Agency of the Year
• 2010 Gama – Diamond International Management Award
for excellence
Home Insurance and Your
Financial Security
Common Misconception’s
• What my policy covers
• What my policy is
Everything is
covered
Home Insurance
Policy
Maintenance
Policy
We know this is not the case
What can effect my insurance costs?
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Credit
Prior Claims (C.L.U.E. Reports)
Flood Zones
Distance to a Fire Department and Hydrant
•Fire Protection Class Code (From Fire Department)
Zip Code the Home is in
Age of the Home
Condition of the home
Solid Fuel Burning Units (wood stoves)
Alarm Discounts
Multi Policy Discounts
Deductible
Coverage selected
What are the Parts to a Home Insurance Policy
Liability (Bodily Injury, Property Damage and Medical Payments)
Dwelling Coverage Amount
Deductible
Perils Insured against
Additional Structures
Personal Property
Settlement Options
Loss of Use
Limitations
Exclusions
Discounts
Lets Start with Liability
Pop Quiz
One windy night your neighbors tree falls on
your home causing massive damage. Can you
go after his insurance?
Liability Coverage
Personal Liability (Bodily Injury and Property Damage)
• Coverage for you when you are on or off your premises and will cover you when you
are legally responsible for an act that causes damage to someone else’s person or
property
• Covers cost of Defense if you are sued
• Multiple Liability Limit Options = $50,000 to $1,000,000
Medical Payments Liability
• Covers medical expenses stemming from injuries that occur to others while they are
on your premises regardless of fault
• Multiple Medical Limits ($1000, $2000, $5000, $10,000, $25,000)
Extending Liability (not all companies allow this)
• Allows you to extend the Liability coverage you have on your main home to other homes you own
• Saves money as you don’t have to have liability on your rental insurance policy
• Great for multi property owners
Liability Coverage (cont.)
Personal Injury Liability (can be added to policy)
This endorsement provides liability coverage for personal injury from one or
more of the following:
• false arrest, detention, imprisonment, or malicious prosecution,
• libel, slander, defamation of character or a violation of a person’s right of
privacy, or
• wrongful entry, eviction, or the invasion of a person’s right to private
occupancy
Business Related Liability (limited exposures can be added)
• Not intended to be a business policy – can jeopardize coverage
• Farming, Child Care, Wood Working, Barber or Beautician etc..
(check with your insurer)
Dwelling Coverage
Dwelling
• applies to the structure you inhabit. This would cover the dwelling, attached
structures (garage, breezeway) and permanently installed property (wall to wall
carpet, etc.)
How do you choose an amount?
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Don’t take this lightly
2 out of every 3 homes are underinsured
Most Insurers cap coverage or provide an additional % (extended replacement)
Trouble with Insuring to Market Value Article
Replacement cost calculators
**Additional Replacement Coverage**(Hard to find)
Pays full replacement cost of your home, even if the amount of loss is greater
than the limits on your policy
Dwelling Coverage
Additional Structures
• Applies to other structures on your property, like tool shed, separate garage,
green house, fencing etc.
• 10% of what you insure the home for (can be increased if needed)
• Does not cover – Structures that are used in a business or farming etc.
What am I insured against?
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You actually choose this coverage and it is called Peril coverage
Basic Form
Broad Form
Special Form Coverage (This is the premiere coverage)
Broad Form Perils
Special Form Perils
Changes the policy language to:
• Provides coverage for losses not specifically
excluded in the policy
• This is the premier coverage you should have
Normally Excluded Losses:
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Earthquake
Flood
Earth Movement
Sump Pump Failure
Sewer Backup
Seepage of water
Homes unoccupied for 60 days
Business related losses
Rule of thumb – It must be sudden and accidental
Additional Coverage's
Personal Property
What's Covered:
• The basic home insurance policy provides blanket
coverage for personal property owned or used by the named
insured and family members anywhere in the world.
• 10 percent of the amount (minimum of $1,000) to cover
personal property located at another residence, like a
seasonal dwelling. Does not apply to property in a rental
dwelling.
Limit Varies by Company:
Usually 75% of what you insure the home for
(200,000 home = 150,000 for the contents)
Limitations on Personal Property
How are claims settled on Dwelling
and Personal Property
Again, you choose
Actual Cash Value:
• Pays Replacement cost minus Depreciation
• This is one of the main causes of dissatisfaction
when a claims are settled
Replacement Cost:
• Pays cost of replacing the item at current
market value
You get ACV until you actually
replace item (personal property)
Additional Types of Home policies
Condo’s:
• Specifically designed to cover the interior of the home (“studs” in coverage)
• Drywall, Light fixtures, cabinets, subfloor, carpet, railings, countertops, etc.
** LOSS ASSESSMENT**
Condominium, townhouse and homeowner associations generally assess the
unit owner for their share of any loss which isn’t fully covered by the association’s
insurance policy, including liability and physical damage claims.
Additional Types of Home policies
Rental’s:
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Insured like Owner Occupied
Does not provide personal property (some insurer’s provide up to $2500 to cover appliances)
Home is limited to amount of coverage without extended % increase
Unlimited coverage not available
Most insurers only allow Broad form Peril coverage
Some property types need to go on a commercial policy (whole other animal)
What insurance is supposed to do
Take you from this
To this
What should you do?
Partner with your COUNTRY
Financial Representative to
review your current financial
scenario.
Providing Financial Security since 1925