Home Insurance Exclusions in Safford, AZUnderstanding what’s not covered on your insurance policy lets you know what other insurance coverage you might need. Here are some of the BIG Exclusions.

Section I Exclusions – A Soap Box

What! Not everything’s covered?

Not everything is covered. That’s the bottom-line. Something’s we can find coverage for, while for other things, we are just out of luck. That said, regardless of whether you buy a special policy or not, you need to understand the exclusions, in order to truly understand your policy. Here are some of the most important exclusions found in section one… Why do I say it that way? Because there is a whole other section, just for exclusions. I know, not easy.

  1. Land – insurance doesn’t cover land. Why? ‘Cause you can’t hurt, dirt. This is an important point when you get into the idea of how to value your home.
  2. Ordinance or Law – So, if your local elected officials decide that every new building has to have a statue of Big Bird, but old buildings don’t, and your rental property burns to the ground and you have to rebuild… Guess what? You have to get that statue of Big Bird. Guess what else? The insurance company won’t pay for that. While no one requires Big Bird statues, there are other things, like sprinkler systems, where this happens all the time.
  3. Earth Movement – Now, depending on the state, you may or may not find earthquake coverage available. Even when earthquake coverage is available, things like, landslide, mine cave-ins, mudflow, sinkholes, etc. may not be covered. Can you get this coverage? You can in some states with a separate policy. Learn more about our catastrophic coverage policy here.
  4. Water – We all know Flood, tidal waves, etc. are not covered. What about overflows from drains, sump-pumps or sewers? Nope. Water is a tough one.
  5. Intentional Loss – For investors, this is big. It means there is no coverage for damage your tenants cause…. Which means it’s important to screen your tenants, so as to hopefully avoid the tenant that steals the copper and skates.

There are more, but these are the most important ones, in MY opinion. So, read the policy and find out what else might be important.

To get an incredible quote these coverage sections start our online quote form. To talk to a licensed agent about this coverage call us at 1-877-784-6787.

This coverage explanation is for illustration purposes only and is general in nature. Coverage explained here may not apply to your policy, State, company, or situation. For more information about how your policy would respond in the event of a loss, please refer to the terms and conditions and declarations page of your policy.

Homeowners Insurance Agent Safford, AZHomeowner’s Insurance Coverage A is the part of the policy that covers the home or dwelling itself. That seems simple enough, but wait, there’s more. It also covers any structure that is physically attached to the building. By that it means that it can’t be connected by a fence or a utility line, but rather physically attached to the dwelling. This may include attached decks, carports, patio covers.

When it comes to Homeowner’s Insurance Coverage A the question is always the coverage form, which can vary on the same home based on the occupancy of the home. For example if the home is vacant you might get a basic form with vandalism, theft, and malicious mischief excluded. However, if the home is owner occupied, a rental, or a second or seasonal home you might get a special form, which is always the best option.

One of the most difficult things about coverage A is determining the replacement value of the home which is the cost to rebuild the home as is. Market value is irrelevant as you can’t insure dirt. Land is excluded. Typically agents will use estimating tools to try to figure out a ball park, but appraisals can also be used. It is important to determine because if you don’t insure it for enough, you can get penalized in the event of a claim, and if you insure it for too much then you are paying to much for the insurance every month. Ultimately it is the insureds responsibility to determine the value, but there are things that can help you determine the value.

When it comes to the loss settlement, it often depends on what you choose. Typically you will have the option of replacement cost (the coverage you want) and Actual Cash Value. Choosing the replacement cost option will ensure that you are able to replace the home in the event of a loss. Actual cash value will provide you money as well, but it may not be what it needs to be to replace the home.

For a home insurance quote, contact us today!

According to Statista.com in 2017 GEICO Insurance company spent nearly 1.4 billion dollars on advertising. Progressive? 622 Million. State Farm? 521 Million, and so on and so forth. Those are some staggering numbers.

Last week we lost a sale to someone who insisted on a “big name company”. It was a homeowner’s policy. We actually represent the company we lost it to, and had even provided the quote for that company to the customer, but we had recommended Travelers Insurance Company because they were cheaper and had better coverage… a lot better coverage. How do I know? Because the “big-name company” doesn’t offer the coverage… it’s not an option. Now I don’t fault the customer. We clearly didn’t present them in such a way that gave the customer confidence in Travelers. I would like to set the record straight:

As of 2016, Travelers is the 6th largest Property and casualty insurance company in the US, and the 9th largest in Arizona. They are the 6th largest homeowner’s provider in the US and 7th largest in Arizona. Point is we are talking a 29 billion dollar publicly traded company that is 106th on the list of the fortune 500 companies.

As an independent insurance agent, this is our fight. We, by our nature, sell companies that focus more on their products than on marketing. For example, we also represent Safeco, which is part of the liberty mutual group, the 3rd largest insurance company in the US, but they don’t sponsor baseball outs or have a cute mascot. What they (both Travelers and Safeco) do have is awesome coverage, and great claims service.

The point is this:  While you may not have heard of the company we are offering we do our homework. We are very contentious about our customer’s claims experiences, and work to ensure that we only represent quality companies. The insurance industry has a system for defining the quality of a company. AM Best provides ratings that are very much like grades A+, A, A- B+ etc. We only work with A-Rated companies to ensure you are covered by a solid company that is going to pay their claims.

While not all our companies spend millions upon millions on advertising they are good quality companies, that have awesome coverage, excellent claims service, and have chosen to work with independent insurance agents like Gila Insurance Group.

A final thought:  Last year, McDonalds spent 633 Million on advertising. Ruth Chris Steakhouse spent 6.7 Million according to emarketer.com. While McDonalds has its place, I know I would much rather eat a steak and Ruth Chris.

As with food, when it comes to insurance I recommend understanding the quality of what you are buying, and not putting all your stock in “As Seen On TV”.   It’s not always the best!