Sump pumps, renters insurance and cracked windshields … the stuff of life.
This articles were written for the Michael Blau (Farmers) Agency
Surprise! It’s Not Covered
Home owners and renters: Make sure you’re protected from these common threats.
It’s not possible for most people to insure for every mishap that might occur at their home.
But beyond the basics, here are three essentials everyone must have.
Your roof: Are you on top of it?
With one big storm your roof can go “poof.” In Kansas City, 90% of home owners’ claims are roof related.
All roofing coverage is not equal. There are basically two types:
Replacement cost coverage This pays the current rate of what it costs to re-roof your home.
Cash value coverage The insurer depreciates (calculates a lower value for) your roof based on its age. You won’t receive enough to cover the current cost of replacement.
Why would anyone choose cash value instead of replacement cost? It’s cheaper, but certainly not better. Make sure you have replacement coverage so you don’t get blown away by the bill.
Don’t be a sump chump
The sump pump keeps your basement dry by removing water that accumulates during storms or snow melt. If it stops working, you could experience inches – or even feet – of water downstairs.
Surprisingly, sump pump coverage is not required. It’s an add on. So why get it? Here are two examples.
One Farmer’s client had sump pump coverage, but only a minimal amount. When her pump failed she suffered major damage – and thousands of dollars out of pocket. This problem gets worse if you have no coverage whatsoever.
But here’s a story with a happy ending. Another client had a basic $5,000 policy. When he remodeled his basement, we encouraged him to increase his coverage to $20,000. Two weeks later, the pump failed and the basement flooded. But he was covered.
Are you?
Renting? You need this.
You don’t own your home. That means the headaches belong to someone else, right? Well, some of them. But what if a theft, flood, fire or storm caused you to lose clothes, furniture, jewelry, electronics – everything?
How much would it cost to replace it all? Much more than your annual renter’s insurance premium.
A few minutes of proactivity could protect you from a devastating loss.
“My Windshield Just Cracked!” and Other Common Questions from Our Customers
Would you like to know the answers? Here they are.
Life is complicated. Unfortunately, insurance can be too.
We do our best to give clear answers when people call us for help.
Here are a few of the most common questions we receive (plus answers!) .
How much life insurance do I need?
First things first: You need life insurance. Think about the people in your life and how they’ll be affected by your absence. It’s no trivial matter.
Now, about the dollar amount. I hesitate to throw out a formula, so understand this is only a starting point. A trusted industry standard calls for life insurance equal to seven times your current income. The math looks like this:
You earn: $75,000
You need: $525,000
The needs of every household are different. For example, one spouse may temporarily withdraw from the workforce and have no income. But life insurance is still essential, especially when considering mortgages, debt, child care and tuition expenses.
We’re happy to look at your situation individually and make recommendations.
Auto insurance: What is medical liability coverage and do I have enough?
When we think about auto insurance, fender benders usually come to mind. However, the real drivers are medical costs. Bodily injury (also called medical liability) coverage is the maximum amount your insurance company pays to someone when a collision causes an injury.
Farmers offers reasonable rates for bodily injury coverage of $300,000-$500,000. However, some people may want more – particularly with the skyrocketing cost of health care. We offer what is called an umbrella policy for both auto and home owners. Separate from standard auto and home policies, it provides up to $1 million for expenses related to medical bills and lawsuits (we live in a litigious society).
My windshield just cracked. Is it covered?
Farmers is unique in that all windows are covered and require only a $100 deductible. We also fix chips for free.
I’m renting a car. Do I need to buy the insurance from the rental company if I’m already covered?
Farmers customers are already covered. If they have full coverage, we don’t recommend purchasing the additional insurance from the rental company.
What is “bundling” policies and will it save me money on my insurance?
Bundling means having one agent (that would be us!) cover all of your auto and home needs. And yes, it costs less overall than if your insurance needs are parted out to different companies. It’s also easier for customers, because one agent can help you with everything.