Does Homeowners Insurance Cover Debris Removal?

Your Greensboro homeowners insurance policy is designed to protect your financial interests in the event your home is damaged or destroyed by a peril covered in your policy.  This includes such events as fires, wind storms, lightning strikes, hurricanes and much more.  The purpose of the policy is to help fix the damage done to your home or to rebuild the home if it's been destroyed.  The house should be brought back to the condition it was in before the damaging event occurred, within your specific policy dollar limits.  

Debris Left Behind

Certain events that may happen to your home that cause you to file a claim against your homeowners insurance policy may also leave behind debris.  This debris must be cleared away in an effort to get your home back to the condition it was in before the damage event occurred.

An example is a wind storm that topples a tree in your yard that ends up going through your home's roof.  Coverage A (dwelling) benefits in your policy will be the part responsible for paying toward the repair of your home, but the tree debris left behind in your yard may be considered for payment benefits in one of several ways.  Most homeowners insurance policies make some provision for debris removal, but dollar limits may vary depending on your particular insurance company and your policy.  Here are some examples:

• Some homeowners insurance policies contain what's called a "Debris Removal Clause."  This is a special provision in a homeowners insurance policy that allows for debris removal from your property that's the by-product of a loss covered by the policy.  Often this coverage will be limited to an amount equaling a percentage of your full policy value, such as 5% or 10%.  Check your policy wording for specifics.  
• Some policies provide for debris removal based on a fixed dollar amount.  The debris must have been created by a loss covered by the policy.
• Debris removal is often covered in a section of your policy called "additional coverages."  See page 14 of this N.C. Consumer's Guide to Homeowner's Insurance.  You'll also see that this section provides up to $500 for the removal of a tree that's felled in a covered peril if the felled tree damages an insured structure, blocks your home's driveway or exit/entryway of the home designed for handicapped persons.  Pose any questions to your agent. 

7 Factors That Affect the Cost of Home Insurance

 

Homeowners insurance underwriters have a long list of factors to consider when writing a home insurance policy, all of which go into a formula for determining policy premium costs.  Two of the major factors determining the cost of your home insurance includes the geographic location of your home and how much it would cost to rebuild your home in the event that it's totally destroyed by a covered peril such as an all consuming house fire.

Here is a list of factors that affect the cost of your home insurance:

1.  Location, location, location.  Where your home is located is one of the primary determinants affecting your home insurance premium costs.  In states like Florida or Louisiana, where natural disasters are prevalent, premium costs may be as much as three times as expensive as costs in areas statistically safer from natural disasters such as Oregon or Utah.  Home insurance in North Carolina is the 30th least expensive of the 50 U.S. states.  Other location factors show policies are typically more expensive in urban rather than rural areas and in locations with statistically higher crime rates.
2. Home value and rebuilding costs.  Coverage for repairing or rebuilding your home is a major factor in the price of your home insurance.  Higher priced homes cost more to insure because they generally cost more to repair or rebuild.  These repair/rebuild costs will depend on the size of your home and local construction prices.
3. You'll pay more for more coverage.  Higher levels of coverage bring higher policy premiums.  The value of your personal possessions may be higher than standard policy limits and you may want to raise your limits, making your coverage more expensive.  Liability protection on your policy may be limited to $100K, but experts agree you may want to increase this limit to cover the total amount of your assets.  Consider an umbrella policy for extra protection.  This will add to the cost of your coverage.
4. Age and Condition.  An older home may be more expensive to insure.  Outdated electrical, plumbing and heating/cooling systems may be seen as higher risks by insurers.
5. Your credit history.  Many insurers use your credit history data when underwriting your policy.  Poor credit may mean higher insurance costs.
6. Deductible Amount.  Choosing a higher deductible amount should translate to a lower premium amount.
7. Ask about any discounts available from your insurer such as a bundling discount.  Other discounts may also be available.

Using Risk Analysis to Understand Coverage Needs

 

Risk analysis, which is the process of assessing the probability of an adverse event occurring, can be invaluable in helping determine your specific insurance coverage needs.  The entire insurance industry revolves around the reality that risk is an unavoidable factor in everyone's life.  By buying insurance coverage, whether it's life insurance, auto insurance, home insurance, liability insurance or any other insurance coverage, you're sharing the risk of accidental financial loss in your life with your insurer.

Risk analysis involves the study of the uncertainty that risk plays in your life.  If you drive a car, you run the risk of being involved in a collision, of injuring a third party or causing property damage, of having your car stolen or vandalized or of having a tree fall on it and crushing it.  There is insurance to help protect you from the financial loss that any of these risk factors may cause you if realized.  If you drink before driving, regularly break the speed limit or use your cell phone while driving, your risk of suffering an accidental loss skyrockets.  Conducting a comprehensive risk assessment will uncover the dangers you face.

The Risk Assessment Process...Also Known as Underwriting

When you apply for an insurance policy, whether for your car, your home, your life, or anything else, the insurance company goes through the process of underwriting, also called risk analysis or risk assessment.  They do this to determine the likelihood of whether offering you insurance coverage appears to be a good investment on their part.  If a policy is offered, risk assessment also helps determine the amount of premium you should be charged for your coverage. 

The process of risk assessment begins with identifying any hazards that could potentially cause harm.  For home insurance, a home inspection is typically conducted to uncover any risks or hazards that could lead to the homeowner later submitting a claim.  For car insurance, a check is made of your driving history to uncover any factors such as speeding tickets or DUIs that could indicate behavior that could lead to future accidents.  For life insurance, your family health history is looked at, as well as unhealthy habits such as cigarette smoking.

You can use the information uncovered by these assessments to do your own personal risk analysis to determine changes you need to make to help alleviate or reduce these risks.  Lower risks mean increased security.

Can You Ever Have Too Much Insurance?

 

If you've ever caught yourself thinking "I'm insurance poor," it's likely because you've been adding up all those policies you've managed to collect and all those premiums you continue to pay.  If you're like most people, you have life insurance, car insurance, health insurance, homeowners or renters insurance and maybe more.  The question is, can you ever have too much insurance?

Vehicle Insurance

In the state of North Carolina, anyone driving a vehicle on public roads is required by law to have at least a minimum amount of liability insurance.  This is third-party liability coverage to help pay for financial losses suffered by others in an accident you cause.  Losses may be the result of property damage, bodily injury or death.  In NC, the minimum liability coverage required is:

• $30,000 per person per accident bodily injury
• $60,000 per accident bodily injury coverage for all persons
• $25,000 per accident property damage

How Much is Enough

Many experts recommend you increase your liability limits three to five times the minimums (or more).  The amount you carry should depend upon the number of assets you stand to lose if sued for liability.  Even more protection is available through the purchase of a high-value umbrella policy.  This is a relatively inexpensive way to significantly increase your asset protection.

Other car insurance options should depend on the value/condition of the insured vehicle.  If you're driving an older, beater car that you could easily replace, carrying collision and comprehensive coverage on it probably doesn't make sense.  The money you're spending on these coverages might be better applied to medical payments or uninsured driver's coverage.

Life Insurance

You buy life insurance to keep your dependents financially secure in case you die unexpectedly.  The death benefit should cover: 

• Your income
• Major debts
• Funeral expenses
• Future obligations such as your children's education

As you age, however, you likely don't need the coverage you once needed.  Your home mortgage may be paid off, the kids are grown and off on their own and your debts are what they once were.  In this case, you can lower your coverage to a more appropriate amount. 

Homeowners Insurance 

Your homeowners coverage should be enough to rebuild your home and replace your property should the home be totally destroyed.  This doesn't mean covering the market value of the home or the value of the land.  Umbrella coverage can extend your homeowners liability limit.

What Can You Do to Reduce Homeowners Insurance Costs?

 

Saving money on expenses has universal appeal, especially when you can save on something you're required to purchase.  Statistics show that approximately 95% of all homeowners in North Carolina maintain homeowners insurance coverage, so ways to reduce homeowners insurance costs should be widely welcomed.  We'll present you with a comprehensive list of tips for reducing your home insurance costs starting today.  Choose your Greensboro homeowners insurance policy with the goal of getting the best for the least.  Try these tips:

Seven Ways to Save on Your Greensboro Homeowners Insurance Coverage

1.  Most experts agree that the first and most important tip for saving on any insurance policy is to shop around.  It's recommended that you obtain no less than three quotes from companies rated highly for service and financial stability.  Consult A. M. Best and/or Standard & Poor's for this information.  Consider using an insurance broker who has access and insight into multiple providers.  Price is important but other factors such as service and stability should also figure in.  Shop around when buying a new Greensboro homeowners insurance policy or when renewing your existing coverage. 

2.  An immediate reduction in your homeowners insurance rate can be obtained by simply raising your deductible amount.  Insurance companies typically recommend a deductible of $500, which is the amount you're required to pay our of pocket when you make a valid claim.  Higher deductibles mean lower premiums and raising your deductible from $500 to $1000 could save you as much as 20% on your policy cost, depending on your insurer.

3.  When deciding how much home insurance to buy, don't include the value of the land your house sits on.  Land isn't subject to the same perils as your home and other structures on your property.  Also, calculate how much coverage you need by the cost it would take to rebuild your home rather than its current market value.

4.  Bundling a variety of policies such as homeowners, auto and umbrella all with one insurer can save you as much as 15% on these policies.

5.  Improving your home's security with smoke detectors, burglar alarms and deadbolt locks can save you 5% or more on your home policy.

6.  Most insurers offer a variety of discounts for which you may qualify.  Often, however, you won't know about these unless you ask.

7.  Review policy limits for your personal property coverage to make sure you're not paying for coverage you don't need.

 

 

What Not to Expect From Homeowner's Insurance

 

While each homeowner's insurance policy out there may be slightly different than the next, there are certain factors that are common to most. The only way to know exactly what your policy covers and doesn't cover is to read it from top to bottom.

If you're unclear about any parts of the policy, get together with your agent or broker and get a clear explanation. Don't forget the fine print. It may not seem to be the most interesting reading, but it's important to completely understand what your homeowner's policy covers before you suffer a loss and find out your claim is denied because you weren't covered for that particular peril.

What's Not Covered By Homeowner's Insurance

Two major perils not covered by standard homeowner's insurance include floods and earthquakes:

Floods may be caused by water coming into your home from and outside source. This can include natural sources such as a rising stream or rivers or torrential rains causing flashing floods. Man-made flooding may be caused by sewer backups or a burst dam. None of these would be covered by a standard homeowner's insurance policy.

Earthquakes or other land movements such as sinkholes are also typically not covered by standard homeowner's insurance. To be covered by these disasters your must take out additional insurance specific to earthquakes or sinkholes or, if your insurance company makes it available, get a rider to your homeowner's insurance coverage.


Most flood insurance is purchased from the National Flood Insurance Program (NFIP), which is a U.S. federal government program overseen by the Federal Emergency Management Agency (FEMA). It's available through most major insurers.

Garage Fires

If your home is consumed by fire and burns to the ground, don't expect your homeowner's insurance to pay for repairing or replacing your car that was parked in the garage. Most standard homeowner's insurance policies exclude coverage for motor vehicles such as cars, motorcycles or boats. An exception may be made for things like lawn mowers or snow blowers. As always, read the fine print. Talk to your agent if you're unclear about what exactly is covered. Bundling your vehicle and home insurance with the same company can help simplify this kind of claim.

Just as every homeowner's insurance policy may be slightly different than the next, most policies can also be custom-written to cover what you want, as long as you're willing to pay the premium charged.

Home Insurance: Above-Ground Versus In-Ground Swimming Pools

Your Greensboro home insurance coverage, an essential part of your family's risk mitigation plan, protects your home, your personal possessions and your assets if you're ever held liable for someone getting injured while on your property. A standard Greensboro home insurance policy consists of several components including:

• Dwelling coverage
• Coverage for other structures
• Personal property coverage
• Liability coverage

If you own a swimming pool, it can have an effect on one or more of these policy components, depending on the specifics of your policy and the way your pool is classified by your insurer.

An “Attractive Nuisance”

To your insurer, a swimming pool is what's known as an “attractive nuisance”. This means that it's a hazardous object that may appeal to or attract children but may also cause them harm. It's one more item added to your insurance policy that may cause you to have to increase your coverage, particularly in view of the liability implications a swimming pool represents.

Pool Classifications

A residential swimming pool may be classified in one of three ways:

1. An in-ground pool
2. An above-ground permanently installed pool
3. An above-ground temporarily installed pool

Your Greensboro home insurance policy will generally cover damages to your swimming pool, but how it does so and the limits on claim amounts will depend on how your insurer classifies the pool. Policies cover your pool for damage from the same perils as the dwelling coverage component of your insurance contract. These may include perils such as fire, lightning, hail, wind, explosions, vehicle collision, vandalism and more. Take note that exclusions to coverage include earthquakes, floods, wear & tear (such as a ripped lining) and neglect.

In-ground pools may be considered as part of your home, in which claims payments will be made from your dwelling coverage, or as other structures, in which claims are paid from the other structures portion of your policy. Why this matters is because some companies consider an in-ground pool as part of the main home structure, while others consider it an external structure similar to a shed, a fence or a detached garage.

Most damage claims for other structures have a maximum payoff limit of 10% of your dwelling coverage amount. Above-ground temporarily installed pools, on the other hand, are considered personal property, which typically has a higher payout limit than for other structures. Personal property coverage is often capped at $100,000.

Switching Your Home Insurance Carrier

There are any number of reasons you may be thinking of switching your home insurance carrier. Experts agree that it's a good idea to take a look at your homeowner's coverage every couple of years. Some mistakenly believe that you must wait until your current coverage is ready to expire before changing insurers. In reality, you have the right to change your homeowner's insurance at any time.  In North Carolina Homeowner’s Policies are cancelled on a “pro-rata” basis meaning that you will get 100% of all unused premiums returned. If you've paid for a whole year's worth of coverage and cancel seven months in then you should receive an amount equal to five months premium back..

Why Switch?

Here are some of the reasons you may be contemplating switching your current homeowner's insurance carrier:

• You've been comparison shopping and found a company that can provide you with a better price for the same level or better coverage. Tom Needham, a leading Greensboro home insurance provider, is a broker capable of diving deep into a long list of home insurance providers to find you the coverage you're seeking.
• Additional discounts may be available from a new insurance provider. Some companies even give a special discount discounts to those willing to bundle their coverages such as homeowner's, auto, umbrella, boat, RV and  life insurance.
• Perhaps you had a less than ideal experience with your insurer while going through the claims process. Poor service is a major cause of individuals quitting their insurance company and switching to another.
• You may be looking for additional protection (such as earthquakee coverage) not available through your present insurer or an insurance policy that is less restrictive that your current coverage.
• You may be buying a new home and want to take this opportunity to comparison shop what's out there.

When to Switch

If you're buying a house, you should start shopping for homeowner's insurance as soon as your buy offer is accepted by the seller. If you're switching insurance providers while still living in your current home, make sure your new coverage is activated before canceling your existing coverage. If your primary reason for switching companies is to get a better price, make sure you give your current Greensboro home insurance provider an opportunity to renegotiate your rate.

Can You Dispute a Home Insurance Claim Settlement?

Your homeowner's insurance coverage helps protect you from financial loss should your house become damaged or destroyed as the result of numerous perils. The perils in a standard policy typically number about seventeen. These extend from something that may be minor, such as vandalism, to something that is catastrophic, such as a house fire that totally destroys your home and all your belongings within the home.

There's much more contained in your homeowner's policy than just structure and personal possessions coverage, including liability should someone get injured while on your property or in your home and later bring a lawsuit against you for damages.

Filing a Homeowner's Insurance Policy Claim

When something happens, you file a claim with your insurance company and await getting reimbursed within the limits and provisions of your policy. But what if the claim you submitted isn't settled to your satisfaction or gets denied completely? Unfortunately, this is not an uncommon occurrence and can be incredibly frustrating. There are a number of reasons an insurance company may deny a claim you've filed and that you think should be covered. Some of those reasons include:

• The damage you've reported isn't covered in your policy
• The damage you're claiming wasn't correctly reported
• The replacement cost of the damage you're reporting is less than the amount of your deductible

Disputing a Home Insurance Claim Settlement

If you believe your claim was unjustly denied or the payout amount was less than you should have received, you can dispute these results. While you may choose to hire legal assistance, this may be expensive. Many will choose to dispute a Home Insurance Claim Settlement on their own. Here are the steps to take:

1. Read and understand your coverage. You may have filed a claim for something you thought was covered but wasn't.
2. If your claim is denied, review the insurer's documentation explaining their disapproval. Contact your agent if you have questions. Assemble any documents proving why you're entitled to your claim.
3. Send a letter to the insurer's claims adjuster explaining your position. Include any evidence you have to show the claim was improperly handled. Request the adjuster review the claim and respond within a stated time frame. Send a courtesy copy to the adjuster's superior.
4. Request the insurer send a second adjuster to conduct a second inspection.
5. If the insurer won't change their position, file a formal complaint with your State Insurance Department.

4 Insurance Planning Tips for Difficult Times

Auto insurance companies have recently come under pressure to refund policyholder premiums charged based on out-of-date estimated miles driven data. Since many drivers have significantly curtailed their normal driving habits during the coronavirus crisis by not traveling, miles driven have gone way down. The good news is two fold.  1. Vehicle accidents have also gone way down.  2. Many companies are now refunding some premium dollars to consumers. 

Stay Home, Stay Safe and Stay Productive

With approximately 90% of the U.S. population under some form of lockdown order due to the novel coronavirus pandemic, “flattening the curve” has been shown to be possible through diligent limitation of social interactions and staying at home except when needing to leave to procure essential materials such as food or medicine.

With plenty of hours available during your days at home, we recommend you take some time revisiting your insurance portfolio to ensure your coverage is still what you need. Here at Tom Needham Insurance Agency we're open for business, working from home and at the office by appointment. We're happy to offer some insurance planning tips to help square away your portfolio and maybe even save a little money at the same time.

Insurance Planning Tips

1. It's recommended you re-shop for your car insurance every so often. Car insurance companies change their rates all the time and you should regularly check for lower prices.
2. Reexamine your life insurance needs – that 30-year term policy you bought 20 years ago may no longer be appropriate to your current needs. You may choose to lower your policy amount and save some money on your monthly premiums.
3. Ask about homeowner's discounts – just like good drivers can qualify for auto insurance discounts, good homeowners can sometimes qualify for good homeowner's discounts. These may be available for deadbolts, burglar alarms, sprinkler systems and more.
4. Bundle Your Policies – Tom Needham Insurance has access to numerous companies, some of the best in the business, and we'll work to find you the best deals available. Bringing your various policies such as homeowner's, auto and life under the umbrella of a high quality single insurance provider can save you as much as 15% or more on your premium costs.

Homeowner's Insurance Costs: Newer Versus Older Homes

Buying an older home can bring with it some up-front costs you might not experience when buying a newer home, depending on how much damage or deterioration the older home has seen in its life. As a general rule, older homes also present a higher risk factor to insurance companies, so another up-front cost you likely will have to deal with is a higher premium rate on your homeowner's insurance coverage.

Though this higher premium rate for your particular older home may not necessarily be the case, since all homes and homeowner's insurance policies are different, it's true more often than not. Here's why:

-  Certain systems within an older home may be outdated and require replacement in order to bring it up to codes and current safety standards. This may include the plumbing and electrical systems, which would both be expensive to update to today's standards.

-  Older homes may have certain physical hazards due to their old age such as foundation problems or the need for roof replacement. They may also be plagued with health hazards such as lead paint, asbestos and mold.

-  Certain older features like hardwood floors and plaster walls may be difficult and expensive to replace. If your older home is included within the National Historic Register, this will almost certainly increase the cost of your homeowner's insurance.

Two Important Tips for Buying Homeowner's Insurance

The number one rule for those shopping for insurance, any kind of insurance, is to get multiple quotes that will allow you to comparison shop. Using an independent broker with access to numerous insurance providers is an easy way to do this, allowing the broker to do the groundwork and present you with multiple options from which to choose.

Always look for discounts. Sometimes, you'll have to ask about available discounts to find out about them. Often, insurers have lots of discounts they can provide to qualified prospective customers.

Special Tips When Insuring an Older Home

Some things that may be standard in most modern homes could be missing in older homes and should be considered in order to upgrade the home and lower your home insurance rates. Consider the following:

Installing smoke alarms and carbon monoxide detectors can sometimes lower insurance costs by as much as 10%.

Dead-bolt locks, sprinkler systems and monitored burglar alarms may all help lower insurance rates on older homes.

Homeowners Insurance: Taking an Inventory of Your Personal Belongings

If you're of a mind to get the most value out of your Greensboro homeowners insurance policy, you need to take care of an often overlooked detail. That's the creation of a comprehensive home inventory list of your family's personal belongings. You may have thought about doing this at some time in the past, but have neglected getting out your pen and paper and writing down the details. As an alternative, you could pull out your smart phone or video camera and make a complete documentary of what possessions you have in your home.

If you fall victim to a disaster such as a house fire that destroys your home and your personal possessions, a detailed inventory listing of everything that's been lost will be invaluable when making a claim on your Greensboro homeowners insurance policy. Having a detailed, up-to-date inventory list of your personal possessions can help in several ways:

1. Your insurance claim can be settled more quickly and more easily.
2. An inventory list can help you to verify losses you'll need to report on your income tax return.
3. Itemizing your personal possessions can help you in making sure you purchase and maintain the correct amount of homeowners insurance.

Where Do You Start?

Everyone knows that taking an inventory and documenting a list of your personal possessions is a good idea, but we also know it's easy to let a good idea slip by without taking the needed action to make it happen. Creating a complete possessions inventory can seem a daunting task, but it doesn't have to be. The trick is to START NOW!

You can start small, with just one room, and don't worry if you don't complete the inventory all in one sitting. A good plan can be to just do one room in your house per day, every day, until you've finished. Don't get overwhelmed. Even a partial inventory list is better than none.

Here are a few tips to consider:

• Record basic info on items such as where and when it was purchased, make/model, purchase price and serial number (if applicable).
• Record clothing by category, such as five suits, four pairs of jeans, 10 pairs of shoes, etc.
• Make special note of very expensive items (jewelry, artwork, furs, etc.) and make sure your policy covers them fully. If not, 
• add a floater.
• Store your completed inventory list in a safe, off-premises location.

Does Homeowner's Insurance Cover Water Lines?

Your Greensboro homeowners insurance policy is designed to cover a great number of perils, however, it may also not cover some things that you assumed it might. Coverage of damaged water lines is something that may or may not be covered, depending on certain conditions. These conditions can best be understood by carefully reading your policy and, if you're unclear about anything you read, getting together with your insurance agent or broker for a detailed explanation.

Sudden and Unexpected

One important phrase that likely applies as a condition in your Greensboro homeowners insurance coverage is “sudden and unexpected.” As a condition to any acceptable insurance claim, the event causing the damage must first be determined by your insurer to be both unexpected and sudden. This may include water damage resulting from a burst water pipe or a ruptured water heater, but with certain exceptions. Here are some examples of home water damage that are probably not covered by a standard homeowners insurance policy:

• A leak that's the result of wear and tear or old age
• A leak that's the result of lack of maintenance, such as one that started out slowly but was allowed to progress unattended
• Water damage that could have been prevented, such as frozen pipes that burst inside your home because the heat was turned off during cold weather while you were away
• A flooded or backed up sewage system is typically not covered
• Water damage or water line damage caused by ground water or flooding is typically not covered by your standard Greensboro homeowners insurance policy, although specialized flood insurance may be purchased separately

Two Types of Coverage in Your Policy

Sudden and unexpected damage caused by a burst water line or pipe within your home will likely be covered by your insurance policy and the claim may fall under two different sections of your coverage. If a wall, floor, ceiling or any other part of your home's structure is damaged and requires repair, your dwelling coverage will likely help pay for the needed repairs.

If you have personal property that becomes damaged as a result of a water event that's deemed a covered peril, it will be the personal property coverage in your policy that will help repair or replace the damaged items. This could be a computer or electronic sound system, furniture, clothing or other items susceptible to being damaged or destroyed by water.