Archive for oklahoma city homeowners insurance

Buying Car Insurance: Young Drivers

Car insurance rates for young drivers in Oklahoma is expensive. Take the time to educate yourself and seek an agent that represents multiple companies so you can find the company that wants your business the most. Whether you are shopping for homeowners insurance quotes in Oklahoma City or for the best car insurance in Edmond, an Independent Insurance Agent is usually your best choice.

Here is a helpful link to assist you in making decisions about your young driver: http://j.mp/1GCrFQk

Looking For Homeowners Insurance in Oklahoma?

Statewide Insurance Agency offers Oklahoman’s that are looking for home insurance options so that the proper balance between cost and coverage is achieved.

The discussion that follows explains the difference between Replacement policies and Market Value/Actual Cash Value policies. We understand that no one size fits all Oklahoma consumers when you are getting quotes for your homeowners insurance.

It is quite common for insurance companies to offer quotes on homes in Oklahoma City for more than the market value. This often poses the question from Oklahoma homeowners, “Why is my house being insured for more than it is worth?” Before determining how much to insure a house for, it must be decided how the insurance company will value the house if there is a claim. One method offered is to value the property at Replacement Cost, which as the name implies, is intended to pay to replace the property, without regard to the original or current purchase price and without regard to depreciation.

In most situations, the Replacement Cost option is going to result in a higher claim payment then if the property was insured at its current value (sometimes called Actual Cash Value coverage – ACV). An insurance company is only obligated to pay up to the limit of insurance; therefore, the house may need to be insured for more than it is worth. In order to obtain Replacement Cost Coverage, the house will need to be insured for the amount it would cost to replace it.

Most property depreciates in value over time. A television set would not be sold today for the same amount it was purchased for ten years ago; it would be sold for less, most likely much less than the original purchase price. A policy containing a replacement cost provision would pay today’s cost of a new television set of like kind and quality which would be more than if the policy only paid for the value of the ten-year old television set (see ACV coverage above).

On a larger scale, the cost to rebuild or replace an entire home could be significantly more than the home was purchased for or could be currently sold for. Even for a home built this year, the cost to rebuild it very easily could differ from the original cost. There are several factors to consider when making an attempt to measure the cost of replacing a home, such as:

No economies of scale
Cost of preparing the home to be rebuilt
Access to the home site may be limited or obstructed
Increase in labor costs due to high demand, as in the event of a catastrophic event
Increase in material costs, possibly due to shortages or discontinued
There are several methods used to estimate the replacement cost of a home. Some of the factors insurance companies use are:

Building materials
Type of foundation
Attached or detached garages
Square footage
Location of the home
Fireplace
Upgrades
Number of rooms and baths

Replacement Cost Coverage is an option many homeowners should consider when looking for homeowners insurance. Obtaining this coverage will require the house be insured at the estimated Replacement Cost value, which typically is a higher amount than the market value. With the limit of insurance being higher, the premium will also be higher. Certainly no one wants to pay more for insurance, but the difference in a claim payment could be several thousands of dollars.

https://okstatewide.com

Oklahoma City Homeowner Insurance Quotes

The Internet has made it so easy for consumers in Oklahoma City and Edmond to get home insurance quotes in the middle of the night it almost seems like a dream come true to busy working professionals. But getting quotes online and comparing homeowner insurance policies with online systems isn’t the best option for gathering the most competitive prices and policy options.

Online quotes give very little information: When you get price quotes online, you don’t have the benefit of reading the policy documents or even asking questions about the underlying policy specifics. All you get is a number with some vague information about limits and deductibles. Exclusions to covered incidents and other caveats are not easily visible and therefore cannot be appropriately evaluated against each other.

No human ingenuity: Developing an effective insurance portfolio is an art. It takes an experienced agent to suss out all the possibilities for discounts that your lifestyle presents. Computers are great for solving linear problems and delivering static answers to dynamic questions, but your financial situation and risk assessment needs are much more sophisticated than a computer can actually handle. When you have an insurance agent working with you, human ingenuity steps up to the plate to ask the appropriate questions and analyze the situation in order to help you develop the coverages you need and combine them with hidden opportunities for discounts.

Answers, not solutions: If you have questions during the process of shopping for Oklahoma City home insurance quotes online then you can probably find answers, but if those questions lead you to realize that you have specific planning issues that need to be addressed, you will have hit a dead end. Only a live person can take your questions and handle them as they evolve into situations.

It can be a great idea to get online homeowners quotes when you initially start shopping for insurance products simply so you can learn about how the different products and options can affect price. But when it comes to making buying decisions, it’s always a good idea to have an experienced professional at your side rather than a cold hunk of synthetic materials.

Oklahoma City and Edmond as well as all of Oklahoma continue to trust Statewide Insurance Agency for their home insurance needs as well as their auto insurance needs.

Homeowners Coverages – Actual Cash Value vs Replacement

Oklahoma Homeowners usually think about the insurance on their home twice — when they get new homeowner insurance quotes and when they need to file a claim. The first is often hurried; a policy is needed to complete the mortgage package or equity loan, and the driving concern may be cost and speed more than depth and type of coverage. The second is the day after the fire, hailstorm, or other natural disaster. Unfortunately, that hastily purchased cheap homeowners insurance policy may not be the bargain it seemed. The time to learn about the breadth and depth of coverage is at the time of purchase, before the loss.

There are two primary types of homeowner’s insurance: replacement cost and actual cash value. In a replacement-cost policy, the structure is insured for the cost of repairing the damage or building a comparable replacement, regardless of its age. If mandated by the local authorities, the repairs and construction will have to incorporate any upgrades required by the building codes in force at the time of the rebuild.

A key provision is that in a replacement-cost policy, there is no reduction in the payout because of depreciation. A 10-year-old roof is paid out the same as a nearly-new roof. For example, a 15-year-old roof is destroyed in a hailstorm. The roof has multiple layers of shingles, and the sheeting is deteriorated. New building codes require a full tear-off, including new sheeting and rafter repair. A replacement-cost policy will cover the supplemental work, even though the rafter damage isn’t a direct result of the storm.

As the name implies, an actual-cash-value, or ACV, policy pays out the fair market value of the damaged portion of the home at that time of the loss, minus depreciation. For example, a 15-year-old roof destroyed in a hailstorm may only be valued at $2,000 to $3,000. After the typical $1,000 deductible, the homeowner may only receive a single lump-sum payment of $1,000 to $2,000 to apply to the cost of repair or replacement of the roof.

Another consideration is the insurance coverage on the contents of the home. This comes into play after a major loss such as a fire or tornado. Replacement-cost policies pay for a comparable item, without regard to the age or condition of the original.

Some policies may be hybrids, with replacement cost on portions of the house, but ACV on other parts, such as the roof or windows. Contents are often rated at ACV. This is done for many reasons and there is nothing wrong or unprofessional about it. However, the policy owner needs to understand each part of the coverage — what is included and what is excluded.

The difference between replacement cost and actual-cash-value policies is significant, and homeowners need to make an informed choice. The primary reason to choose ACV is cost. The premiums for an ACV policy are significantly less than a full replacement policy. For many homeowners, ACV may be all they think they can afford. However, after a major loss, that cheap policy may not even pay back the premiums paid over many years.

Oklahoma City Homeowners shouldn’t wait for a disaster to take a second look at their insurance. A licensed agent can go over the existing coverage and explain not only what potential payouts might be, but also ways to economically upgrade. Feel free to call us at 405-285-2929 today, and we will answer any questions you have about homeowner’s insurance.

By the way, Statewide Insurance Agency offers Actual Cash Value home insurance policies as well as Replacement homeowners insurance policies!

“We shop up to 10 companies to find you the best coverage and price on your Oklahoma home insurance”

Statewide Insurance Agency https://okstatewide.com

Do You Have Enough Coverage to Rebuild Your Home?

Imagine how devastating it would be to lose your home in a tornado or fire. Now imagine not being able to rebuild it completely because you didn’t have the correct amount of insurance. Selecting the proper amount of coverage is the single most important decision you can make with your Oklahoma Homeowners Insurance policy. Without it, you may not have enough coverage to rebuild after a total loss. This is called “insurance to value.” Below are some explanations and tips to help you make the right choices for your needs — and remember, if you need help, Statewide is just a phone call away! What is insurance to value? Insurance to value is the relationship between the amount of coverage selected (typically listed as “Coverage A” or “Dwelling Coverage” on your policy declarations page) and the amount required to rebuild your home. Insuring your home for anything less than 100% insurance to value could mean you wouldn’t have enough coverage to replace your home in the event of a total loss Why is the cost to rebuild different from the market value? A home’s market value reflects current economic conditions, taxes, school districts, the value of the land and location, and other factors unrelated to construction cost. The cost to rebuild your home is based only on the cost of materials and labor in your area. It is important that you insure your home based on its reconstruction cost, NOT its current market value Why is reconstruction more expensive than new construction? New-home builders typically build many homes at once, and solicit bids from various sub-contractors to receive the best pricing. Their business model is based on economies of scale. For example, they may purchase 20 bathtubs at once, securing a lower unit cost. These economies of scale don’t exist when building a single home. How can I make sure I have the correct amount of insurance? Work with your agent at time of purchase to be sure that you receive an accurate quote home insurance quote. Ask us about additional coverage options that may be available. Review your insurance to value calculation on a regular basis with your agent. Tell your agent about any changes or improvements that you make to your home. What if I don’t want to rebuild? Talk to your agent, many times market value home insurance policies cost less and make sense if you aren’t interested in going through the rebuilding process. Statewide Insurance Agency – Edmond, OK

Homeowners Insurance Coverage Retaining Wall

It’s not unusual for homeowners to spend thousands of dollars erecting a retaining wall.  Most quality homeowner insurance policies are worded consistently on this issue.  A retaining wall is considered a Detached Structure and the maximum amount of coverage is usually 10% of your Dwelling Coverage limit.  The retaining wall is usually covered for damage caused by Fire, Lightning, Wind (including tornado), damage caused by vehicles and a few other types of perils.  HOWEVER, most of the damage that I have seen arises from retaining walls falling due to saturated soil.  This usually happens when we have experienced an extremely wet period lasting 3 or more days.  This falls under the Earth Movement policy exclusions and is not covered.

Ordering Mexican Food at Outback

Statewide specializes in homeowners insurance and auto insurance to the Oklahoma City area.  Specializing enables us to be more effecient, more effective and just “better than most” at what we do.  I think most consumers are tired of companies and sales people trying to sell them more products and services than you want just because they may have your attention (or your email address).  Buying health insurance from the agent that sold you car insurance is usually like ordering mexican food at Outback!  http://www.okstatewide.com  

Standard homeowners and renters insurance does not cover flood damage. Flood coverage, however, is available in the form of a separate policy both from the National Flood Insurance Program – NFIP (888-379-9531) and from a few private insurers.
The NFIP provides coverage for up to $250,000 for the structure of the home and $100,000 for personal possessions. The NFIP policy provides replacement cost coverage for the structure of your home, but only actual cash value coverage for your possessions. Replacement cost coverage pays to rebuild your home as it was before the damage. Actual cash value is replacement cost coverage minus depreciation so that the older your possessions are, the less you will get if they are damaged. There may also be limits on coverage for furniture and other belongings stored in your basement.
Flood insurance is available for renters as well as homeowners. You will need flood insurance if you live in a designated flood zone. But flooding can also occur in inland areas and away from major rivers. Consider buying a flood insurance policy if your house could be flooded by melting snow, an overflowing creek or pond or water running down a steep hill. Don’t wait for a flood season warning on the evening news to buy a policy—there is a 30-day waiting period before the coverage takes effect.
Excess flood insurance is also available from some private insurers for those who need additional insurance protection over and above the basic policy or whose community does not participate in the NFIP. Depending on the amount of coverage purchased, an excess flood insurance policy will cover damage above the limits of the federal program on the same basis as the federal program—replacement cost for the structure and actual cash value for the contents.
Excess flood insurance is available in all parts of the country—in high risk flood zones along the coast and close to major rivers as well as in areas of lower risk—wherever the federal program is available. It can be purchased from specialized companies through independent insurance agents, or from regular homeowners insurance companies that have arrangements with a specialized insurer to provide coverage to their policyholders.
To find out whether private primary flood insurance is available in your area, contact your insurance agent.

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Prior Homeowner Insurance Claims

More and more Oklahomans are having difficulty finding affordable home insurance coverage when they have had one or more losses in the last several years.  We have contracts with several companies that are glad to provide your coverage even if you have had several prior home insurance losses.  Home insurance quotes don’t have to be unreasonable to get the coverage you need!

Von Nix, CPCU