Ways to Save With Your Deductible

I recently went to go see “The Greatest Showman,” as one who is often found singing or whistling show tunes, I loved it. But the sound track is probably better than the Movie. A great mix of music with strong beats and base lines and violins coupled with distorted guitar, and great melodies. Followed by hopefully ballads. Anyway, there is a song that talks about the long-lasting idiom, “Walking a Tight Rope.” What does this have to do with Saving money on your insurance? Anymore Insurance companies know about your home or auto by running reports. They know if you have had losses, they know when your home was built, what materials, the size, etc., etc., etc. They know. So, there isn’t a lot of wiggle room on a lot. But there is when it comes to deductibles, but it’s a tight rope walk.

When you have a covered claim the insurance company will pay the amount of the loss, less the deductible.

So for example, if you have a $1,000 deductible on your auto, and have a fender bender that costs $2,000 to repair the insurance company will pay $1,000, it is your responsibility to pay the rest of the amount due to the auto repair shop.

On a home if you have $1,000 deductible, and a hail loss that requires you to replace your roof, if the cost is $10,000 to replace the roof, then you would be paid $9,000 and you would be responsible for paying the contractor the other $1,000.

So how is this a type rope? There is a inverse relationship between the cost of your insurance policy and your deductible. The higher the deductible the lower your rates. The lower your deductible the higher your rates.

So how is this a tight rope? Well, on one hand if you have a BIG loss you won’t want to be coming out of pocket to pay a large amount of the claim. On the other hand, if you have a small loss will you actually turn it into the company? Think about it, if it’s a $1,500 loss and you have a $1,000 deductible. The additional $500 dollars you get from the insurance company will cost you dearly once you lose your claims free discount. So what should your deductible be? That depends? Do you have cash on hand usually? Do you have the ability to cover small losses yourself? If so, then the answer is higher.

Once quick example to close. I recently helped a real estate investor get an insurance policy on a Manufactured Home he had purchased as a rental. As an investor he has cash on hand on a regular basis, and he knew the only time they would ever report a claim is if it was BIG. So we looked at the deductible. At a $1,000 deductible the rate was $1080 annually for this manufactured home. With a $2,500 deductible the rate was $817. With a $5,000 deductible the rate was $349. Wow! A 70% discount because of the deductible. Now he knows if there’s a loss he is probably covering it, but what he is most concerned about is a catastrophe, so he decided to go with a high deductible. But now you see, choosing your deductible is like walking a tight rope.

For questions on how to save money on your insurance policy, contact Gila Insurance Group. We’ll review your current policy or provide an insurance quote.

Umbrella Liability Insurance for Landlords

Do you have enough liability insurance? Probably not. But how much is enough? Unfortunately that question varies. First, what does liability insurance do? Liability insurance does two things: (1.) it pays for losses for which you become legally liable for as a result of a lawsuit and (2.) it pays to defend you in the event of a lawsuit.

So what can you become legally liable for? As a real estate investor you have some unique exposures. You have tenants, and, let’s face it, they probably don’t love you. Not because you’re a bad person, but because you represent a bill, and maybe a past due bill. You’re the proverbial “man” they are trying to stick it to. So you need to protect yourself, your assets, your business.

“It won’t happen to me.” Try this. Google how to sue your landlord and feast your eyes on the three million, yes, three million results.

The bottom-line is that if you get sued and are found liable you will be required to pay the judgment. How? That depends. If you have insurance, that would be first, then it goes to your assets, including cash, stocks, bonds, REAL ESTATE. Yes, you selling that investment property might do real well to pay off your judgment, and you’re out the asset and the cash flow. Beyond that, your wages from your J-O-B can be garnished. Liability is a serious thing.

Liability insurance isn’t expensive, it’s actually quite reasonable. So max out the limits on your policy, the marginal difference will be dollars. Then, consider an umbrella policy. An umbrella policy is a liability-only policy with some unique features which are pretty cool, but the important part is that it kicks in when you get sued for limits that are higher than a home insurance policy. For the limits you get, it is amazingly affordable. And if you have several investment properties you may have several million in real estate. Protect your investment(s) by making sure you have enough liability insurance!

Get covered today with an umbrella policy today! Start your quote immediately, but have what you need on hand!

Budget Friendly Insurance

How to save money on your insurance in Safford, AZ

How to save money on your insurance in Safford, AZBudget friendly insurance, that’s all we really want! No one wants to pay more than they have to for insurance, but the cheapest insurance isn’t always the best either. It’s a balance of getting the proper coverage at a price that fits into your family’s budget.  Here are three ways to ensure you have found this balance.

  1. The best way to ensure your budget isn’t getting hijacked by insurance is to shop it on occasion. Gila Insurance Group LLC is an Independent Agent, meaning we represent multiple companies and can shop the market for you. So if you feel that you your insurance is too much, if it blows up your budget, let us know, and we will see what we can find.
  2. Do you have the coverage that you need? It’s the story of Goldilocks. You want the right coverage, but not too much or too little. A great place to save is to look is at your limits of coverage. The companies help determine the value of the home, and actually limit what can and can’t be changed, but outside of the home value there is often leeway. For example, what’s your deductible. Low deductibles are great, but if you had a $1,000 loss, would you even report it to your insurance company? Or would you fix it yourself? If so, your deductible might be too low. It really is a conversation that you need to have in your family, at what point would we ask the insurance company to pay a claim? Ask yourself, how is it affecting my budget? Maybe it is time to talk again.
  3. Is there anything that makes you look like a worse risk to the insurance company? Increasing your credit score with lower insurance costs in many states (not all), not having exotic pets or vicious dogs, and many other factors. Eliminating these factors can decrease your insurance cost and better fit your budget.

Let us help your budget, we have markets we can shop, we will have the conversations to help you determine what coverage you need, and will help you understand those risk factors that are increasing your costs to help you keep budget friendly insurance for your Manufactured Home. Contact Gila Insurance Group for an insurance review or insurance quote. We are here to help!