4 Tips for First-Time Home Buyers

 Buying your first home is not only a major investment, it’s a new chapter in your life. You should be proud of yourself for making this life-changing decision. With focus and determination, your home can provide years of service and satisfaction for you and your loved ones.

Whether you’re starting a family, venturing out on your own for the first time, or any other scenario, it’s important to keep in mind valuable advice to make this transition smooth and enjoyable. Here’s how to get started:

1) Pre-Approval and Beginning Stages

You’ve likely heard about the pre-approval process. Essentially, this centers on different loans for which you qualify. Here’s also where you’ll glean details about your ideal down payment, potential credits, and more.

At this stage, you should also start or beef up savings, and/or set aside cash reserves specifically for the purchase and initial maintenance of your new home. While many lenders now require a 20 percent down payment, it’s still possible to find outlets that will accept three percent or less in some situations.

Next, determine whether or not you’ll partner with a real estate agent. This decision is entirely up to your discretion. Some people appreciate the ease and peace of mind that comes from such professionals, while others prefer to approach the home buying process on their own. 

2) Focus on the Details

Regardless of whether you’re working with a REALTOR® or purchasing your home directly from the current owner, you’ll want to be sure there are no surprises. Accomplish that goal by first scheduling a thorough home inspection. It’s also helpful to know the latest property value assessments for other similar homes in the area.

Be sure to get detailed information on any significant upgrades or maintenance made to the property. Avoid late-in-the-game surprises by ensuring you fully understand closing and other costs. Then, speak with a friendly and knowledgeable insurance agent who can help you investigate multi-policy options. You could get big savings by bundling your new homeowner’s insurance with automobile and/or other coverage.

At this point, it’s also wise to research local and state assistance programs. Many cities and states offer valuable incentives to first-time home buyers, which over the long-term could save you money.

3) Be Realistic and Open-Minded

While some people specifically search for a “forever home” they’ll enjoy for a lifetime, many first-time home buyers purchase with the idea of moving in five or ten years. It can be difficult to predict future changes in jobs, family status, and other factors. That’s why it’s important to select a property that matches your current lifestyle preferences and requirements.

In addition, it’s wise to keep in mind that minor cosmetic changes and updates to a property can be affordable and straight-forward. For example, repainting walls from an undesirable color is simple and cost-effective. By contrast, if a home you’re considering requires major upgrades to match your wants and needs, it might be better to find another property.

The bottom line is that no home is perfect. However, there are ways to enhance and protect your investment. That includes flood insurance and other considerations.

4) Get Insurance Coverage

As mentioned, securing comprehensive insurance gives you the coverage and peace of mind that you’re protected under a variety of situations. Along with homeowners insurance, other popular selections include flood insurance, bundled options, and more. Speak with a trusted and reputable agent to learn more about all the choices available to you.

Since 1964, we’ve helped countless Florida residents with all their insurance needs. Both individuals and business owners benefit from our coverage areas. That includes business and commercial, construction insurance, tree care, risk management, homeowners, automobile, insurance and more. Contact us today to learn more about how we can make your life easier, and help keep you, your loved ones, and your property consistently protected.  Just call 321-725-1620 and ask for Bryan.

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

                                                     Serving Florida since 1964

4 Reasons Why You Need Homeowners Insurance

 Your home is your castle. It’s a safe and secure place where you can relax and make memories with friends and family. It’s also one of your biggest investments. That’s why it’s important to protect your property with homeowners insurance.

More than 90 percent of all property owners have safeguarded their homes with at least some insurance, according to the Insurance Information Institute. That still leaves millions of homes uninsured, and at risk of major financial losses in the event of natural disaster or other tragic events. Here’s why homeowners insurance is essential:

1) It protects your home and other property

Even the most basic homeowners insurance safeguards your property against a variety of potential hazards, including fire, vandalism, severe weather (tornadoes, hurricanes, high winds, hail), and more.

Regardless of the extent of damage or destruction, your policy can help pay for repair and replacement — saving you money in the event of unplanned circumstances.

In addition, if your home is deemed uninhabitable following a catastrophic event, additional living expense coverage (standard in most policies) can help pay for temporary living costs while your property is being repaired, or while you search for alternate means of shelter.

Some policies also offer reimbursement or defrayed replacement cost of personal belongings such as furniture, appliances, clothing, and more.

2) It protects your liability and includes essential allowances

Covering more than just structural issues, some homeowners policies can also protect you in the event of a lawsuit due to injury on your property.

For instance, if a neighborhood child decides to take an uninvited dip in your backyard pool, and then gets hurt when they accidentally slip on the deck, you could be held legally responsible. Liability insurance as part of your homeowners insurance policy can also help pay for necessary medical bills, legal fees, and even lost wages.

In addition, this option helps preserve your home’s equity. For example, when you make renovations and updates to your home, the value increases. Adequate insurance that is properly updated to reflect such improvements protects your investment.

3) Your lender may require it 

While not a state requirement, more lenders today demand that homeowners provide proof of insurance. That’s because it protects your property from damage caused by severe weather, fire, and even vandalism.

In some cases, if you don’t purchase insurance (or don’t keep adequate coverage), your lender could buy a policy in your name and add the cost to your monthly payments. Lenders don’t usually shop around for the best deals, so in this case, it’s likely you’ll be paying a premium for coverage you could be getting at a reduced price. Contrary to popular belief, homeowners insurance is affordable. There are options to satisfy most budgets.

4) It’s easy to get started

As you consider the right policy for you and your family, it’s also important to consider what could happen if you’re not insured. For most homeowners, the resulting fallout from a disastrous event would be financially devastating.  For these reasons and many more, the risk of living without homeowners insurance is simply not worth it.

Since 2002, we’ve been helping people just like you with their insurance and risk management needs. Contact us today to discuss the best options to financially protect your property.  Just call 321-725-1620 and ask for Bryan.

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

                                                     Serving Florida since 1964

Personal Property: 6 Reasons Why Yours May Not be Fully Covered

Why You May Want More Personal Property Coverage

Imagine you took the roof off your house, turned the whole thing upside down and started shaking. Everything that hit the dirt is what your insurance company calls “personal property” – hence Personal Property Coverage (Coverage C) on your homeowners, condo or renters policy.

Some people call it “my stuff coverage” because, in the event of a covered loss, such as a fire, theft or weather-related damage, it helps you recover, at least partially, the investment you’ve made in some of your key possessions. This includes furniture, artwork, jewelry and more.

However, in my experience, hardly anyone understands the restrictions and limitations of this coverage, and that can lead to potentially devastating consequences. So, let’s explore six reasons why your personal property may not be as fully covered as you think it is.

1. You don’t have an updated home inventory.
   On a standard policy, your personal property is covered at a percentage of your dwelling coverage. So, you may have $500,000 of coverage for the dwelling and $250,000 of coverage for personal property. But, is that enough? To know for sure, you need to know the value of your stuff. Having a home inventory – a list of all your stuff, the value of each piece and other details, such as model numbers – tells you how much coverage you need. If your home inventory shows you’re lacking coverage, be sure to purchase more.
    
2. You have Actual Cash Value coverage instead of Replacement Cost coverage.
   Say you purchased a brand new, top-of-the-line TV five years ago. Today, that TV is only worth a fraction of what you paid for it. Now say the TV has been stolen, and your insurance policy covers the loss. How much will you get?
   
   With Actual Cash Value Coverage, your policy will typically pay the depreciated value, and, no, it won’t be enough to purchase another top-of-the-line model at current prices. For that, you need Replacement Cost Coverage, which typically pays the purchase price of a similar model that’s available in stores right now.
   
   Think of it like this: Replacement Cost gets you the new; Actual Cash Value is back in with the old. Your policy will tell you which of the two coverage types applies to your personal property.
    
3. Your policy has sublimits for certain item types.
   Other types of property, such as jewelry, silver, furs, firearms and collectibles, won’t settle at either Actual Cash Value or Replacement Cost if their value is above a certain threshold. You may have a $20,000 Rolex and $50,000 in Personal Property Coverage at Replacement Cost. If the watch is destroyed in a fire, your claim should be a slam dunk, right? Wrong. Your policy may only cover each piece of jewelry for $500 to $1,000 total. This is known as a “policy sublimit,” which can vary widely from item type to item type, policy to policy or state to state.
    
4. You haven’t scheduled high-value items.
   When you do have an item, such as the Rolex, valued above your policy sublimits, you can “schedule” it. This designates separate coverage for the full appraised value of individual items. You can schedule as many items as you like to help offset your policy sublimits. It’s simple to do so. Just provide your local insurance agent with a recent appraisal and purchase that amount of coverage. Your agent will advise you on any special requirements.
    
5. You tend to lose or drop things but don’t have Special Personal Property Coverage.
   It’s important to know which losses are covered and which aren’t, as outlined by your policy. Personal property destroyed in a fire? Likely covered. Personal property that mysteriously disappeared? Likely not covered, unless you had Special Personal Property Coverage on your policy. This extends your coverage to many other different types of losses so you’re protected for a wider array of scenarios, such as dropping your new TV.
    
6. Your belongings are destroyed in an earthquake.
   Here, we’ve hit a brick wall. Your policy does not cover earthquake damage. However, you are able to purchase earthquake coverage for an additional fee, such as through the California Earthquake Authority (CEA). You can choose higher personal property limits to cover as much as you can, but you will likely still face coverage caps for certain items, such as jewelry. For example, your earthquake policy may cap jewelry coverage at $3,000 total, with no more than $1,000 per item. You also won’t be able to schedule items. Still, some earthquake coverage is better than none, so it’s certainly worth entertaining a discussion with your agent.
    

Armed with the above information, I trust you’re now motivated to check up on your personal property coverage through your homeowners, condo or renters policy. If you’re not sure what to make of it or you find you may not have enough, be sure to talk to your independent agent immediately so you have the coverage you want before a loss occurs.

                                Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

                                                            Serving Florida since 1964

The Type of Fire Extinguisher Every Home Should Have

Extinguish Your Worries Over Picking the Right Fire Extinguisher
 

A fire is a fire, and a fire extinguisher is a fire extinguisher, right? Well, not quite. There are actually different types of fires and different types of extinguishers that respond best to each. So, which is right for you?
We’ll get to that, but first let’s look at the five different fire types, as outlined by the Fire Equipment Manufacturers’ Association:

• Class A: Fires in ordinary combustibles, such as wood, paper, cloth, etc.
• Class B: Fires in flammable liquids, like gasoline, or flammable gasses, such as propane.
• Class C: Fires in energized electrical equipment, such as appliances or motors.
• Class D: Fires in combustible metals.
• Class K: Fires in cooking oils and greases, such as animal and vegetable fats.

Selecting a Fire Extinguisher
For each fire class, there’s a fire extinguisher to match, and it’s important to use the right one. For example, an extinguisher rated for Class B fires only might not be appropriate to use on another fire. In fact, it might even be dangerous.
So, how do you pick a fire extinguisher? Do you need several? A good bet is a multipurpose extinguisher, which typically is rated for Class A, B and C fires and available at home improvement stores. This type of extinguisher is typically good for general living areas and will work on small grease fires, as well. Specialized kitchen extinguishers are available, too. (Note: Class K extinguishers are typically for large commercial kitchens.)
No matter which type you choose, you want:

• An extinguisher that’s large enough to put out a small fire but not too heavy to handle safely.
• One that carries the label of an independent testing laboratory.
• One for each level of your home, as well as in the garage.

Using a Fire Extinguisher
Before you use a fire extinguisher — or try to fight a fire with any method — make sure you consider the following questions:

• Is the fire small and contained?
• Are you safe from toxic smoke?
• Do you have a way to escape?
• Do your instincts tell you it’s OK?

If you’ve answered “yes” to those questions, the National Fire Protection Association recommends remembering “P.A.S.S.” when it’s time to use your extinguisher:

• Pull the pin.
• Aim the nozzle or hose at the base of the fire.
• Squeeze the lever.
• Sweep the hose from side to side. Once the fire is out, remain aware, because it can re-ignite.

Maintaining a Fire Extinguisher
It’s easy to just put an extinguisher in your kitchen cabinet and forget about it. But, by doing that, you run the risk of it not working when you need it most.
According to the U.S. Fire Administration, some need to be shaken monthly, and others need to be pressure tested periodically. Follow the instructions on your specific extinguisher. Also, check regularly to make sure it’s not damaged, rusted or dirty.
Remember, a fire extinguisher won’t do you any good if it doesn’t work, and it won’t help if you can’t get to it, either. So, ensure it’s in an accessible place, not buried in the back of a closet.
Finally, don’t ever forget that sometimes your best bet is not using an extinguisher at all. It’s using your family escape plan to get you and your loved ones out of danger. If there’s any doubt, get out!

Insurance Coverage for Home Fires

Fireplaces, stoves, furnaces – the average home has plenty of fire risks. If you were to lose everything in a home fire, would you have enough insurance coverage to rebuild your home and replace all your belongings?

                                  Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

                                                            Serving Florida since 1964

Animal house: 4 insurance issues that arise when kids go to college

For insureds, the Insurance Information Institute recommends creating a “dorm inventory.” Keep a list of all of the items the student will bring to school, along with their estimated value.

Gone are the days of a college student loading up the family car with just a couple of boxes to take to school. Nowadays, students bring laptops, televisions, bicycles, musical instruments, cell phones and other digital devices into their new dorm rooms. And while we want to believe that Junior is incredibly responsible, the truth is, he or she is bound to forget to lock their dorm door at least once—and his or her laptop may get stolen. Or they may leave their belongings unattended in the library while they take a phone call. Or burn Easy-Mac in the microwave and set off sprinklers, causing water damage to his or her computer (true story—happened to a “friend”).

It’s time to refresh the insurance considerations that a college student—away from home—brings.

For insureds, the Insurance Information Institute recommends creating a “dorm inventory.” Keep a list of all of the items the student will bring to school, along with their estimated value. Insureds can download the free app “Know Your Stuff” app to itemize belongs.

Below and on the following pages are Homeowners’ and Auto questions that arise when a student leaves home for college. Know of any others? Add your thoughts to the comments section.

Does a Homeowners’ policy provide coverage for college students?

A parent’s Homeowners’ insurance policy does provide some coverage for a student who is away at school – but it’s limited. The ISO form HO 00 03 extends the definition of “insured” to:

“A student  enrolled in school full time, as defined by the school, who was a resident of your household before moving out to attend school, provided the student is under the age of

        24 and your relative; or

        21 and in your care or the care of” your residents of your household who are relatives.

This is where insureds need to be careful. A student may have stated a term as a full-time student, but dropped a class or two over the semester. Or the student may have turned 24 years old during the semester or be in grad school—at which point coverage would no longer apply.

What type of insurance coverage is provided for college students?

Four coverages are extended to applicable college students under a Homeowners’ policy:

1. Coverage C - Personal Property. This provides coverage for personal property owned or used by an insured while it is outside of the home. However, the limit of insurance is 10% of the Coverage C limit for personal property in the Homeowners’ policy, or $1,000, whichever is greater. Note that coverage does not apply if the student’s dorm has been unoccupied for more than 60 consecutive days. If Junior leaves his belongings in his dorm room over the summer, and comes back to find his television missing, coverage would not apply.

2. Coverage E – Personal Liability. This covers the student for legal defense costs or coverage from an accident (excluding auto, boat or aircraft) that causes bodily injury or property damage.

3. Coverage F – Medical Payments. This provides for the medical expenses of others because of bodily injury occurring at the student’s dwelling.

Will the student live on or off campus?

If the child doesn’t live in college-owned housing, an insured’s Homeowners’ policy may not provide coverage. According to TrustedChoice.com, insurance issues arise depending on if the child is in a dorm, apartment or rented house. “These variables, especially for older students, can impact your current protection and dictate a need to modify your policy or purchase a new one." And find out how many roommates Junior will have—insurance companies need to know this for coverage considerations. To avoid on-again/off-again insurance issues, a separate Renters’ policy for college students may be necessary.

Will the student take a car to college?

If so, does the parent (insured) own it or is the car in the student’s name? An insurance agent must be made aware of the new garaging address—if the student attends college in a less populous area, it may save the insured money. Agents should discuss with their clients how coverage is affected by change of address and ensure that minimum auto liability is met—particularly when a student attends college out of state.

If the student is not taking a car to school, it may not be the best choice to remove the child from an existing Auto policy to reduce cost. Keeping the child listed on the Auto policy ensures coverage during school breaks and while he or she drives a friend’s car at school. 

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

Serving Florida since 1964

3 Ways a Pool May Affect Your Homeowners Insurance

That oh-so-covetable experience of taking a dip in your very own pool? Millions of American households enjoy it, at least when the weather’s nice.

With the summer heat ratcheting up, you may be coming down with a serious case of pool envy, obsessed with having a pool right outside your door for cooling off and entertaining friends. A swimming pool can even increase the value of your home. But, will it increase your homeowners insurance rates too?

Before you dive in and add a pool to your property or buy a home that already has one, here are three important things to keep in mind:

1. Anytime you have an increase in property value or risk, you may need to increase your insurance coverage too.
A pool increases your exposure to risk. You could be on the line for medical bills and other damages if people get hurt in or around your pool, even if they weren’t invited over for a swim. At the same time, a pool increases the value of your property. Your homeowners insurance needs to reflect both the increased value and risk of a pool, and you may want the added protection of an umbrella policy.

2. Safety measures aren’t just nice to have. They may be required.
Your town, municipality or insurance company may require a fence and locked gate for your pool and even have specific guidelines on the height of that fence. If your house opens directly into the pool area, you may also consider a door alarm and safety cover to keep pets, children and other non-swimmers safe.

3. Pool equipment, furniture and accessories increase the value of your personal belongings.
Be sure to include any pool- or patio-related items of value when you add up how much your personal belongings are worth, and ensure you have enough coverage on your homeowners insurance policy. Keep in mind that per-item limits may apply, meaning the maximum amount payable on a single item is capped. If, for example, you have an expensive outdoor sound system, you may want to check the per-item limit for electronics. Expanded coverage is often available for high-value items.
Above all, pose question after question to your independent insurance agent. Against which risks is damage to my pool covered? Is the pump covered too and under what circumstances?
Working closely with an insurance agent in your area who understands your property and the local zoning laws is one of the best ways to fully understand how a pool may affect your homeowners insurance rates. We can help you find the right balance of coverages for your specific situation and help ensure your relaxing oasis isn’t an unmanageable risk.

Contact us for all your Insurance needs! (321)725-1620

Bob Lancaster Insurance

Serving Florida since 1964

Insuring Jewelry: How to Know If Your Coverage Is Enough

Extra Jewelry Coverage Helps Protect Your Most Valuable Pieces

A ring from a loved one. A bracelet handed down through generations. A watch or necklace marking a special occasion.

Every reason why you treasure a piece of fine jewelry is a reason why it should be insured.
Calling it “jewelry insurance,” however, may be misleading. It’s not a separate policy. Rather it’s part of your personal property coverage from your homeowners insurance, condoowners insurance, and renters insurance (depending on the specifics of your policy).

Jewelry coverage helps protect the investment you’ve made in your favorite pieces by helping you replace them if you experience a loss that’s covered by your policy. But, the coverage is only for certain instances and set dollar amounts, so look into your coverage and learn more about insuring jewelry below.

Know What Your Existing Insurance Policy Covers
If you already have personal property coverage as part of a homeowners policy, renters policy or condo policy, you likely already have some form of protection for your jewelry. The typical insurance policy will cover you, up to your policy limit, for jewelry that’s stolen or damaged in certain incidents, such as a fire at your home. However, the typical policy will not cover everyday damage, such as a stone falling out of its setting.

In addition to knowing when you’re covered and when you’re not, it’s also important to know how much you’re covered for. Your insurance policy may cover each individual piece of jewelry at a set amount, such as $1,000 per piece. Or, it may cover your jewelry collection as a whole, such as $3,000 for all pieces. Check your policy or schedule an insurance review with a local agent to better understand what kind of jewelry coverage you have.

Calculate the Value of Your Jewelry Collection in Today’s Dollars
To determine whether you have enough jewelry insurance, you need to know how much your pieces are worth. Keep in mind that your pieces may be worth more now than when you bought them. The value of precious metals and precious stones can increase over time, so have your pieces appraised about every three years.

Use these appraisals, as well as receipts for recently purchased items, to add up the value of your collection. Then compare it to how much jewelry replacement coverage you have on your homeowners insurance, condo insurance or renters insurance.

Decide Which Items Require Additional Coverage
If the jewelry coverage on your policy is lower than the value of your collection, you’ll likely want to purchase additional coverage. For example, you may have a $2,000 pair of diamond earrings, a $7,500 engagement ring and an insurance policy that covers jewelry loss – no matter how many pieces – at $3,000. If both pieces are lost in a single incident, you’re short $6,500 of coverage.
To fill this gap, you can insure high-value items individually, as part of your homeowners insurance, condo insurance or renters insurance. This is known as scheduling valuables or adding a “rider” or “endorsement” to your policy. To do so, you will likely need a recent receipt or appraisal establishing the value of each item.

Once scheduled, if an item is damaged or lost in a covered incident, you’ll be covered for the full scheduled amount. Typically, scheduling an item also gives you broader coverage. A lost stone that isn’t covered under your homeowners policy, for example, is likely covered under a policy rider.

Catalog Your Jewelry in a Home Inventory
Once you arrange coverage for your high-value jewelry, it’s important to create a home inventory or update an existing one to catalog your valuable belongings. This isn’t as important for your scheduled pieces because your insurance company has a record of their value. However, for any unscheduled pieces that are lost or stolen, you’ll want a record of their worth.

Ideally, your home inventory will include photos, receipts, appraisals, descriptions, brand names, etc. of all valuable personal property, not just your jewelry. That way, if there’s a loss you’ll have all your documentation in place.

A home inventory can be as simple as a Word document (save it to the cloud or a flash drive in case your computer is damaged or stolen). Or use a Web program or mobile phone app to help you catalog your belongings.

Insuring jewelry is easy and affordable, so give us a call. You may pay as little as $10 a year for each $1,000 of coverage. So, if you get something special for Valentine’s Day this year, in addition to showing it off, be sure to protect it, too.

Contact us for all your Insurance needs! (321)725-1620

Bob Lancaster Insurance

Serving Florida since 1964

Adjusting Homeowners’ Claims in the Sharing Economy

Would you rent your home to a total stranger? This may seem like a daunting prospect at first, but internet companies like Airbnb, HomeAway and VBRO have helped millions of people to do just that. Reassured by social media tools that allow users to rate and review their transactions and recommend service providers to their friends, many property owners have been quick to benefit from collaborative consumption.

The “sharing economy” has developed from a low key local phenomenon into a highly lucrative business model. However, this has raised some interesting issues for carriers and their adjusters.

The Legal Position

In New York, the Attorney General has been cracking down on hosts renting multiple units that are in effect illegal hotels. Residents of most New York apartments are prohibited from renting out their properties in their absence for less than thirty days, and building management companies have issued warnings that subletting may breach the terms of tenancy and risk the security of all residents.
Authorities in San Francisco recently introduced legislation to lift the ban on rentals of less than thirty days, with some important restrictions. The rental must be of the owner’s permanent home (their residence for at least 275 days in the preceding year); the rental terms cannot exceed ninety days in any given year. Also, the property owner must obtain a business license and permit. Each listing must hold at least $500,000 in liability insurance and city hotel taxes must be paid for all rentals.

Clearly when advising a client on a potential rental or investigating a claim for damages, it is prudent to check the legal position in their area, and ensure that they have met any administrative requirements.

Service Providers Offer Limited Coverage

It is also worth closely inspecting any protection offered by the service connecting the property owner with the tenant. For example Airbnb has a “host guarantee” which does offer significant cover, but is no real replacement for a wide ranging insurance policy. HomeAway offers damage protection insurance up to $5,000 for an additional fee.

Property owners must also understand what damage is covered by any such guarantee. They should also know if the service provider can be trusted to live up to their promises.

In one case, a New York property owner returned home to find that her seemingly harmless tenant had thrown a wild party and trashed her apartment. Initially, Airbnb was not helpful, and the homeowner’s basic insurance did not cover the damage. However, when Airbnb was threatened with bad publicity the company decided that their host guarantee was applicable and they agreed to pay for the damages.

Typically, these kinds of service providers do not offer any cover for a liability and only limited cover for damage to property. If the service provider will not offer any relief, the homeowner will turn to their insurance carrier. But does the business exclusion on a standard policy apply to home sharing? Typically, no.

Business Insurance may be Appropriate

Many insurance companies will agree to extend the homeowner’s coverage to the renter for a single occasion as long as they are notified in advance. However, if the property is to be rented out on a more regular basis, the property owner would be best advised to purchase business insurance, such as a hotel or bed and breakfast policy for short term rentals or a landlord policy for longer term rental.

Business insurance will not only provide protection against damage to the structure and contents of your client’s home, but will generally include liability coverage in case the tenant (or one of their guests) is injured on the property. Without this cover the property owner may find themselves facing costly legal fees and medical expenses. Policies may also include cover for loss of rental income while repairs are being effected, which is very reassuring if owners have mortgage payments to cover from the rental income.

How Big is the Risk?

While it is certainly the case that home sharing increases the risks of property damage or the incurring of liability for injury, carriers and adjusters should take care not to overestimate the risks.
Airbnb claims that since their inception they have not encountered any liability claim or judgment in excess of $10,000. HomeAway (which has been in business since 2005) purports not to have encountered any serious judgments or claims. Furthermore, insurance for rental properties is not new and policies covering vacation properties are already common to most carriers.

Contact us for all your Insurance needs! (321)725-1620

Bob Lancaster Insurance

Serving Florida since 1964

Protecting Your Home: What Insurance Does and Doesn’t Cover

Understanding Your Home Insurance Policy

As a homeowner, one of the most important aspects of your home isn’t something you use daily. And it isn’t something flashy you show off to friends. It’s your homeowners insurance policy, and it protects you in more ways than you may think, helping you rebuild your home or repair damage that results from a covered loss.

But, that’s not all. It can also help cover the costs of a lawsuit, help you pay for somewhere else to live when your home is uninhabitable and much more.
Home insurance is typically very comprehensive, but all policies have exclusions and coverage limits. It’s vital to know what those are so you know what’s covered and what’s not. Fire damage? Typically covered. Flood damage? Typically not.

With this guide, you can begin to understand what a typical home insurance policy covers. Just keep in mind that coverages vary from carrier to carrier, region to region and even policy to policy. Only your individual home policy can tell you the coverages you have and those you don’t. For an even better understanding of your home policy coverages, review them with your local insurance agent.

What Home Insurance Covers
The typical homeowners insurance policy has six type of coverages. They are commonly known as:

• Coverage A: Dwelling, for damage to your house that occurs due to covered losses, such as a fire. Following a covered loss, dwelling coverage helps you repair or rebuild your home, including the structures, such as a garage or a deck, attached to it.
   
• Coverage B: Other Structures, for damage to other buildings or structures on your property that result from a covered loss, such as a tornado. This may include a detached garage, a barn or a fence.
   
• Coverage C: Personal Property, for damage to or loss, including theft, of your personal belongings and possessions, such as jewelry, furniture, guns and other valuables. If you experience a covered loss, this coverage will help you replace items up to the defined dollar limit in your policy. In certain instances, your belongings may be worth more than the typical home insurance policy covers. In this case, you may be able to purchase additional coverage through a process known as scheduling valuables. To help expedite a personal property claim, it helps to keep an updated home inventory of your belongings.
   
• Coverage D: Additional Living Expenses, for costs incurred, up to your set policy limit, due to “loss of use” of your home, meaning your home has been damaged to the extent that you cannot live in it and you need to live elsewhere. This coverage helps you handle the costs of your temporary housing and related expenses.
   
• Coverage E: Personal Liability, for damage to other people’s property for which you are responsible. This coverage may also help you handle legal costs and liability judgments resulting from a lawsuit, up to the defined dollar amounts outlined in your policy.
   
• Coverage F: Medical Payments to Others, for bodily injuries to other people, such as a houseguest, that occur in your home or on your property. Like personal liability coverage, this coverage helps with the costs of a lawsuit or legal decision, up to your defined policy limits.

Remember that, despite having all of these different types of coverages, you’re only covered up to the dollar amounts that you select and only for covered losses, as outlined in your policy. Typically, you can change these policy limits at any time if you’d like to purchase more coverage. This is a good idea if, for example, you’ve recently added on to your home, acquired some pricey personal belongings or made other updates to your property. If needed, you can also reduce your coverage, though always ensure you are adequately protected.

What Home Insurance Doesn’t Cover
It’s just as important to know what your homeowners insurance doesn’t cover as it is to know what your home policy does cover. For starters, your policy does not cover any damage or repairs costing less than your deductible. It also does not cover any costs that exceed the coverage limits outlined in your policy. You are solely responsible for excess costs, unless you have an umbrella policy to provide additional liability coverage for a covered loss.

More than likely, your policy also does not cover routine maintenance and repairs, as well as damage due to animals, termites, floods, earthquakes, sinkholes, sewer backups and other incidents. These are often considered non-covered losses. If you experience a non-covered loss, as outlined by your policy, you will be responsible for the costs.

What Home Insurance May Cover
Outside of the typicalhome insurance coverages, optional or separate coverage may be available from your carrier or from a different carrier. For example, you may be able to purchase earthquake or flood coverage separate from your homeowners policy.

Other coverages are optional add-ons to your existing homeowners insurance. These can include identity protection and equipment breakdown coverage, which covers the cost to repair or replace a range of appliances and other equipment, such as pool equipment, in your home. If this sounds similar to an extended appliance warranty, it is. The difference is that you can insure an array of appliances at once through this optional coverage rather than purchasing a separate warranty for each one.

This guide is a starting point for understanding your home insurance policy. Your own policy may vary greatly from the descriptions above depending on the state where you live, your carrier and the coverages you have selected. So take a close look at your policy by reviewing your documents or viewing your coverages online. Or, even better, come see us so we can explain your coverages in detail, as well as discuss whether your policy provides adequate protection for your home, property and belongings.


Shopping for home insurance?
Call or visit Bob Lancaster Insurance!

Contact us for all your Insurance needs! (321)725-1620

Bob Lancaster Insurance

Serving Florida since 1964

New Construction Versus Replacement Costs

 New Construction Versus Replacement Costs

If a homeowner just purchased a newly built home, the replacement cost for that home should be the same as the purchase price, right? The answer is actually, “No. It is not usually the same cost.”

 

We hear this question quite a bit. It might sound reasonable to assume that these two costs are the same. However replacement cost is usually higher than new home construction, even right after the home has been completed, and here are a few of the reasons why.

 

Replacement Cost is what it will cost to rebuild the home with materials of like or similar quality, in the shortest amount of time and with a builder who is basically building the home as a custom-built house. Since only one home is being built there are no economies of scale that help to reduce the expenses for the builder. That means an increased cost to the homeowner for rebuilding the home over similar homes that are built as part of a development.

 

Since there is time pressure to rebuild quickly, the builder may not be able to time the purchase of supplies and materials for better pricing. Since there is time pressure, the insurance carrier may not be able to wait for a less expensive builder—they may need to select whoever is available.

 

Another factor that increases rebuilding costs over new construction is that builders that build developments may not do custom homes. These are often separate groups of builders. There would be pressure to rebuild and the choice of custom home builders available at the time that the home needed to be rebuilt might be limited.

 

Depending upon the home’s features, the rebuilding cost could be an additional 10-30% or more even immediately after it has been completed. In some cases the home might go under contract months before it is actually built. By the time it is completed, costs have risen and the same home could not be built again for the same cost. We include cost data in every newsletter to help show trends and keep our customers informed about cost changes.

 

In some cases the new home builder owns the land and makes a profit on the sale of the land to the homeowner. That profit is calculated into the sale of the new home. Replacement home builders do not profit from the land sale since this is not part of the rebuild. Therefore their profit from the rebuilding of the home may need to be higher.

 

Were all costs included in the purchase price of the house or were they listed separately? These might include builder overhead, architect fees, upgrades to the house, and additional areas: garages, decks, porches, etc. Our replacement cost includes these costs and any additional areas that the user has included in the home’s description.

 

 

Contact us for all your Insurance needs! (321)725-1620

Bob Lancaster Insurance

Serving Florida since 1964

Nationwide's "Brand New Belongings"- Cool Commercial, But What Does It Cover?

Like me, you've probably seen Nationwide Insurance's widely aired commercial touting their service, "Brand New Belongings." The eye-catching ads feature a sleek Cat-Women-like heroine coming to the rescue in every homeowner’s worst nightmare situations, stealthily following behind home-invading thieves to replace the items they steal, or swinging into a fire-damaged apartment to switch out smoke-damaged valuable with shiny, new ones. The narrator explains these entertaining scenarios illustrate Nationwide's "Brand New Belongings" program, in which they "replace destroyed or stolen items with brand new versions," not just paying you their partial value.

After the ad ends, you may be left feeling insecure about your current coverage. "If I don't have Brand New Belongings from Nationwide and I experience a loss, does that mean I'm going to be stuck with used, thrift store versions or my stuff?" Not necessarily - many policies from a variety of insurance companies offer the benefits extended through Brand New Belongings under the less catchy name "replacement cost coverage." Basically, this means that if you experience a loss or damage to your home or its contents, your insurance company should reimburse you for the amount it costs to replace the item with one of like kind and quality, not discounting the item's value based on depreciation (subject to the terms and conditions of the policy, of course).

Replacement Cost Coverage is one of the two main valuation methods that can be applied when determining insured property's value, with the alternative method being "Actual Cash Value." If your policy is based on Actual Cash Value benefits, you will receive a payment not based on the amount you need to buy your same item in a store today, but the amount that the item costs minus any depreciation costs that apply based on the time you've owned the item. So while you may need $3,000 to purchase the same version of your stolen laptop, if you've had that laptop for a few years, you may actually only receive a fraction of this amount.

As you can see, it's important to know which method your policy employs, because it will make a huge difference in the amount of compensation you receive in the event of a loss. While the premiums on the Actual Cash Value policies may be lower, it can lead to more expenses and a huge headache if you ever need to make a claim.

Whether your policy features a valuation method based on Replacement Cost Coverage or Actual Cash Value, as with any of the elements of your insurance policy, it's important to read the fine print so you know what to expect. For instance, with Brand New Belongings, you will initially be reimbursed only with the actual cash value of your property. Nationwide will then pay you any additional funds once you purchase the new item out of pocket and submit a receipt. Also, in some cases, Nationwide will only pay to have a damaged item fixed, not replacing it with a truly "brand new belonging." Of course, if you look closely at the bottom of your television, you’ll see a standard disclaimer that "exclusions and limits may apply," too, which is where the grounds for a dispute can often arise. It is important to consult your policy for the details of your coverage. Keeping this in mind, you'll be in a position to hold your insurance company to their word and get all of the benefits to which your policy entitles you.

Contact us for all your Insurance needs! (321)725-1620

Bob Lancaster Insurance

Serving Florida since 1964

The Puppy Under the Christmas Tree

Many puppies are welcomed into households every Christmas. Puppies are high on the wish-list of many young ones year in and year out. If you are a parent and homeowner, before bringing Fido home this Christmas, you may want to check your homeowner policy.

Not every homeowner is aware of the various liability coverages – let alone the exclusions – that exist in a homeowner policy. As we all know, pets, in particular dogs (some breeds more than others), are at times able to cause property damage or bodily injury. Some insurance companies have gone out of their way to identify the breed of dog where ownership of such breed will preclude coverage. One policy I found states the following:

Under Coverage D and E we do not cover...Bodily injury or property damage arising out of the ownership of, custody of, or care for the following pure or mixed breed or pure or mixed type of dogs: (1) Any pit bull type of dog (which may be known as American Pit Bull Terrier, American Staffordshire Terrier, Staffordshire Bull Terrier, Bull Terrier, Miniature Bull Terrier, American Bulldog, Dogo Argentino or Alpha Blue Bulldog); (2) Rottweiler; (3) Akita (which may be known as a Japanese Akita or Akita Inu); or (4) Canary Dog (which may be known as a Presa Canario or a Perro de Presa Canario).

Other policies may have different breed restrictions. I have yet to see the Chihuahua listed as a restricted breed, although if you ask me, some can be little terrors. (No offense to Chihuahua owners and lovers).

On a parting note, thank you all for reading my blog this year. Have a wonderful holiday season.

Lack of Documentation = CLAIM CLOSED

I often tell policyholders, be it associations, unit owners, or homeowners, to be sure to document their personal property before a loss occurs. This is especially important for unit owners that have downsized from larger houses and may keep some of their property in storage. Often pictures, or even a video, can make all the difference in getting a claim paid.

The peril of not documenting all personal property was recently felt by a 92 year old woman in Palm Springs California. This tragic story began when Erica Haines, a Holocaust survivor and double amputee requiring constant assistance from caregivers, noticed some of her gold silverware was missing from her home. When she realized that it was not simply one piece that had been misplaced, she and her current nurse began taking inventory of her personal property to see what was missing.

In the end, Ms. Haines was missing a great deal of the personal property she had collected over her life including clothing, cameras, rare books, original paintings, medicine, jewelry, and even a spare set of prosthetic legs! All in all, it appears that unscrupulous caregivers had stolen approximately $145,000 from the elderly woman.

Understandably distraught, Haines notified the police, obtained a police report, and filed a claim with Fire Insurance Exchange (a Farmers Insurance Group company) with whom she had maintained a policy since 1967.

According to the lawsuit filed on her behalf, Farmers never even sent an adjuster to the home. Instead, Farmers sent her a letter less than two weeks later denying the claim because “she could not prove that the thefts had occurred”!

While it is unclear what, if anything, Ms. Haines could have done to “prove” her claim to Farmers, this story underscores the importance of thoroughly documenting your possessions before a loss occurs. Without proof that the possessions indeed existed, it is more difficult to get a claim paid.

Contact us for all your Insurance needs! (321)725-1620

Bob Lancaster Insurance

Serving Florida since 1964

Tuesday's Tips - How to Create a Home Inventory

Would you be able to remember all the possessions you have accumulated over the years if they were destroyed by a fire or other disaster?

Having an up-to-date home inventory will help you get your insurance claim settled faster, verify losses for your income tax return and help you purchase the correct amount of insurance.

Start by making a list of your possessions, describing each item and noting where you bought it and its make and model. Clip to your list any sales receipts, purchase contracts, and appraisals you have. For clothing, count the items you own by category (pants, coats, shoes, for example), making notes about those that are especially valuable. For major appliances and electronic equipment, record the serial numbers, which are usually found on the back or bottom.

• Don't be put off! 
  If you are just setting up a household, starting an inventory list can be relatively simple. If you’ve been living in the same house for many years, however, the task of creating a list can be daunting. Still, it’s better to have an incomplete inventory than nothing at all. Start with recent purchases, then try to remember what you can about older possessions.
• Big ticket items 
  Valuable items like jewelry, art work and collectibles may have increased in value since you received them. Check with your agent to make sure that you have adequate insurance for these items. They may need to be insured separately and it is important that your insurance company know about these items before there is a loss.
• Take a picture
  You can also take pictures of rooms and important individual items to have a visual record of your belongings. On the back of the photos, note what is shown and where you bought it or the make. Don’t forget things that are in closets or drawers. If you use your phone or a digital camera, you may also be able to add a description of the item when saving the photo.
• Videotape it 
  Walk through your house or apartment videotaping and describing the contents. Or do the same thing using a tape recorder. This can be useful for items such as clothing or kitchenware. You can simply open a kitchen shelf or closet and describe the contents. For instance, in the kitchen, it would be sufficient to state that you have a set of dishes for 12 that includes a dinner plate, salad plate, etch with when and where it was purchased
• Create a digital record 
  Use your computer or mobile device to make your inventory list. There are many software options and mobile apps that can help you create a room-by-room record of your belongings. To make creating your inventory as easy as possible, the I.I.I. offers free Web-based home inventory software, Know Your Stuff® - Home Inventory. The software includes secure online storage so you can access your inventory anywhere, anytime. You can also download the Know Your Stuff app in the iTunes App Store (or search for “iii inventory”) or from Google Play. Information about your belongings can be entered either through the mobile app or online and your data will automatically synchronize between the two. All of your information will be kept in your personal, password protected account, on Amazon secure servers. And, like the online version, the Know Your Stuff® app is free of charge. 

Storing your list 

Regardless of how you do it (written list, photos, computer hard drive, flash-drive, or in the cloud), keep a record of your inventory. If it is a physical document, store it along with the receipts in your safe deposit box or at a friend's or relative's home. If it is a digital file, make sure to back it up and keep a copy on an external drive or online storage account. That way it will be easily available to give your insurance representative if your home is damaged. When you make a significant purchase, add the information to your inventory while the details are fresh in your mind.

Contact us for all your Insurance needs! (321)725-1620

Bob Lancaster Insurance

Serving Florida since 1964

Procure Proper Protection for Your Home Business

Home-based businesses are becoming increasingly prevalent, thanks in particular to the relatively inexpensive technology available at our fingertips. Yet running a business out of your home changes the loss exposures and characteristics of your residence as far as your homeowners insurance company is concerned.

Your homeowners policy will cover losses to the property caused by perils such as fire, wind, lightning, and theft. And the liability portion will pay if someone is hurt on your premises. But if you run a home business, any loss associated with that business may be your problem. What if you had a small fire that damaged your home business office and computer and resulted in some lost income? Once your insurance company sends an adjuster and he or she discovers the business, your claim could be denied.

Conversely, if you purchased a home-based business endorsement to your homeowners policy or a businessowners policy (BOP), your entire loss would likely be covered, even the loss of income.

And do not forget about liability. If you have business visitors in your home and they get hurt, the standard homeowners policy may not cover those injuries. Again, you need to purchase the correct endorsement to the homeowners policy or a separate BOP. Also, any professional liability coverage will not be covered under either of these approaches. A separate professional liability policy will need to be arranged for this loss exposure.

Different insurance companies have different criteria for excluding businesses from their policies. And they offer an assortment of coverages for this exposure. Specific coverage available under one insurance company may not be available with another.

The key thing to remember is this: if you are running a business out of your home, inquire about available coverage options to properly protect your business and your assets.

Contact us for all your Insurance needs! (321)725-1620

Bob Lancaster Insurance

Serving Florida since 1964

Know Your Coverages - Homeowners Insurance

The coverages on your homeowners insurance policy may seem like alphabet soup: A, B, C, D, E.... What are the coverages, and why are they important? Here's a quick summary.

Coverage A: Anything involving the physical structure of your home, generally termed "dwelling."
 Coverage B: Other structures that are not directly attached to your home, such as a separate garage, shed, or fence.

Coverage C: In a word, the "contents" of your home. If you flipped your house upside down, everything that fell would be contents. It is all the items that are not attached, or built-in, to your home.
Coverage D: If you have to live elsewhere temporarily due to covered damage to your home, you will need this coverage for your additional living expenses.

Check with your insurance agent to be sure that you have adequate coverage, and that your policy has been updated to include recent home improvements or high-value items. Your agent has access to Replacement Cost Estimate (RCE) software that can help in estimating whether or not your current Coverage A amount is adequate.

A complete home inventory will help you find out if your contents (Coverage C) amount is adequate, or if you need to purchase additional coverage for some items. Here are some examples: your new diamond anniversary ring; great-grandma's antique silver service and china set; the mini music recording studio in your garage; or the coin collection you recently inherited from your great-uncle. After you finish your home inventory, or if you have questions during the process, check with your insurance agent to be sure that your policy includes the coverage you need.

"Other structures," Coverage B, is often the most confusing. Most commonly, other structures are defined as those which are "set apart from the dwelling by a clear space." Example: A fence that is not attached to the dwelling is generally included under Coverage B (Other Structures), but if the fence is attached to your house, it is considered part of Coverage A (Dwelling). Is your garage separated from your house, or attached? Is your workshop a stand-alone building in your backyard, or part of the garage attached to your house?

If you spent all spring building a new gazebo in the middle of your back yard or redecorating your stand-alone pool cabana, check with your insurance agent to find out if you are covered. The cost of other structures, such as pool decks and screen enclosures, can add up quickly, so you want to be sure they are included under the Coverage B portion of your policy. You may also want to ask you agent about adding an Emerald Endorsement to your Tower Hill policy, or a Personal Articles Floater (PAF) for high-value items.

Contact us for all your Insurance needs! (321)725-1620

Bob Lancaster Insurance

Serving Florida since 1964

Wind, Rain, Hail, Lighting: Is Your Home Ready to Weather the Storm?

 

As extreme weather becomes more common across the state, we here at Bob Lancaster Insurance offer homeowners advice on how to make sure their homes are prepared to deal with storms. 

Much of the property damage caused by extreme weather can be easily averted.  Simply keeping your structures and grounds in good repair can go a long way. That way, when severe weather threatens a bit of picking up and latching down usually takes care of the rest.

Before the storm:

Prepare an emergency "kit" to cover injury, power failure, heat loss, being 

stranded, and evacuation. Consider first aid and essential medications, 

non-perishable foods/ fresh water, flashlight/fresh batteries, fire extinguisher, 

and protective clothing. 
 
Regularly inspect your home and grounds. Keep gutters and downspouts clear of 

debris to avert backups. 
 
Check your roof for loose or damaged shingles, seal around flashings and chimney;

remove dead tree branches; check smoke and carbon monoxide detectors regularly. 
 
Make sure the fireplace and chimney are inspected and cleaned annually 
 
Weather-stripping is invaluable against destructive weather. 
 
Where possible, move cars, boats, other vehicles, etc., into an enclosed area. 
 
Finally, when storms threaten, secure or anchor loose or flyaway items too large 

to bring in. 

After the storm:

Inspect your home for damage, and if you find damage, take preventive action to 

reduce risk of further loss. If your roof is damaged, cover it as soon as possible 

with tarps secured with ropes and nails.  If your home is badly damaged, leave 

until it can be properly inspected. 
 
Report downed or sparking power lines, broken gas, or water mains. Avoid downed 

power lines and standing water.  Don't attempt to drive across flowing water, 

downed power lines or enter barricaded areas. 
 
If you are without power, turn off all electrical equipment and avoid opening the 

refrigerator or freezer to keep food safe longer. 
 
If you use a generator, connect the equipment you want to power directly to the 

outlets on the generator. Do not connect a generator to a home's electrical system. 

Do not run a generator inside the home or garage. 
 
During clean up, don't pile debris near power lines. Always exercise care when 

using a chain saw or any other power tools. 
 
When it is safe, take photos of damaged areas and possessions. Notify your 

insurance agent and provide an address and phone number to reach you. 

All these safeguards are relatively inexpensive and easy to complete.  Sometimes, however, despite your best efforts, weather-related property damage may occur. Plan ahead for loss. Document your belongings by video or make a list for your insurance company.  Call us to review your insurance policies and coverages to ensure you have adequate coverage.

Contact us for all your Insurance needs!  (321)725-1620

Bob Lancaster Insurance

Serving Florida since 1964