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.

How To Choose an Insurance Company

 

Buying insurance can be a potentially overwhelming experience due to the vast number of confusing definitions, conditions, exclusions and coverages involved.  On top of this, you want to choose an insurance company that's well-regarded in the industry, financially strong, with a good claims history and top reviews from clients with whom they've done business.  Here's a breakdown of several factors to consider when you're trying to choose an insurance company:

• Understand the difference between an independent insurance agent or broker and an insurance company agent.  An independent agent likely has access to policies from numerous different insurance providers.  While an insurance company agent can only write policies from his or her own company, the independent agent can write whatever policy is best suited to your particular insurance needs.  To make matters even simpler, an independent will do the research and legwork to find the best choices and then provide you with multiple options to consider.
• When considering a particular insurer, research their history and look into their reputation.  How long have they been in business?  What products do they offer and in what states are they sold?  What can be said about their company leadership and community involvement?  What are their professed vision and values?
• Assess the financial strength of a company you're considering and don't accept any insurance offer from a firm with less than an "A" (excellent) rating.  A.M. Best is the #1 independent insurance company rating-company in the U.S., but you can find several others here.
• Choose an insurance company that sells the type of insurance coverage you need.  Many companies give discounts for customers who carry multiple policies (e.g., homeowners, life, vehicle) with them, so check into this.  Check for all other discounts.
• While price is an important consideration for most people when they choose an insurance company, it shouldn't be the only consideration.  A lower price may mean a lower level of coverage, so always compare apples to apples.  Keep in mind the old axiom that you get what you pay for.  There may be a number of reasons for the price differences between different companies.  One may be because the lower priced is new to the market, which may mean it's lacking in experience.

Get with a trusted broker and explore the companies and coverages available.  Seek professional guidance and utilize their ability to uncover the best protection at the fairest price available.

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.

What Is a Lienholder?

 

While some car buyers are able to pay cash for their automobiles, many others take out a car loan in order to purchase the vehicle they want. If you borrow money for this purpose, whether from a bank, a credit union, a car dealership or even a private party, the lender will hold a legal claim on the vehicle. This claim is known as a lien.

The lender, known as a lienholder, will have a legal interest in your vehicle until such time as the loan is completely paid off. Having this legal interest in your property, your lienholder has certain rights and may require you to fulfill certain obligations. These include having the lienholder named as co-owner on your title and on your insurance documents. They may also require you to carry a certain type and amount of car insurance on your vehicle.

Your Home Mortgage is a Lien

If you are buying your house with the aid of a mortgage loan provided by a financial institution, the company that provided the purchase funds automatically became a lienholder for your home. They have a legal claim on your property and will require that you have an appropriate amount of homeowner's insurance in force. This is to protect their financial interests in the event that your home becomes damaged or destroyed by some unforeseen event.

Certain debts owed in conjunction with your home may also become liens. These may include:

• Overdue taxes
• Unpaid construction costs
• Judgements
• Unpaid and overdue association fees

In actuality any property that you own that was bought with money from a loan can have a lien put against it until the loan is paid off. If the loan payments are not made as agreed on, the lienholder may have the legal right to repossess the property that has gone into default.

What a Lienholder Requires

Getting back to your vehicle purchase with borrowed money, whatever financial institution lent you the money to buy the car is the lienholder and will require some certainty that they have financial security regarding the transaction. While the State of NC requires all drivers carry a minimum amount of liability insurance in case they cause injury or property damage while driving, your lender will likely require you carry collision coverage, in case you're in a collision accident, and comprehensive coverage, for non-collision losses such as fire, theft, vandalism, extreme weather, etc.

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.

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.

What Can I Do to Lower My Homeowners Insurance Premiums?

If you're like most homeowners, your home and personal possessions represent your largest investment. You need to protect that investment, which is why you're willing to pay homeowners insurance premiums to an insurance company who will extend that financial protection to you for a price.

If you have a mortgage on your property, the mortgage company requires that you take out insurance coverage to protect their financial investment in your home. If your home is destroyed, they want to know they'll be paid back for the amount outstanding on your mortgage loan.

A Major Problem 

According to a recent survey by research firm Marshall & Swift, fewer than half the homes in the U.S. are covered by enough insurance to rebuild them after a major disaster occurs. They go on to say that approximately 60% of American homes are worth more than their insurance reflects (by 17%). This is an improvement, however, from 30 years ago when, according to the Insurance Information Institute, 73% of homes were underinsured by an average of 35%.

There's no doubt that a certain number of these homes are being underinsured for the purpose of lowering the homeowners insurance premiums. Another explanation is that many homeowners only carry as much homeowners insurance as is required by their mortgage lender, equal or greater than the current amount owing on their mortgage loans.

If you fall into this category, there's a good chance that your home is underinsured. The cost difference between the amount owed on your loan and the amount that would be required to rebuild your home, including construction materials and labor, is likely significant.

Saving on Premiums

Underinsuring your home in order to save on premium dollars is only smart if you know for a fact that you'll never need to make a major claim on your policy. And, of course, you couldn't know this absolutely. As the old saying goes regarding insurance: “It's better to have it and not need it than to need it and not have it!”

There are, however, other ways to lower your homeowners insurance premiums that are safe and make good sense. Consider these:

• Shop around for the best deal. Use a broker with multiple companies from which to choose
• Bundle your home, life and auto policies with the same company
• Explore every discount available
• Choose a higher deductible
• Improve your home's disaster resistance
• Add home security features

3 Answers to Uncommon Insurance Questions

The subject of insurance can be a confusing one, and for someone with little or no experience in this area, there may be countless questions to be answered. If you've ever heard the term “insurance poor” used by someone, it likely came from someone facing premium payments for:

• Homeowner's (or renter's) insurance
• Vehicle insurance
• Life insurance
• Health insurance
• Dental insurance
• Disability insurance
• Travel insurance
• Umbrella insurance
• Insurance on a car loan

For someone owning a business, you can add to this:

• Professional liability insurance
• Property insurance
• Workers' compensation insurance
• Product liability insurance
• Vehicle insurance
• Business interruption insurance
• Home-based business insurance if involved in a home business

Who Should You Ask For Info?

When faced with deciding what kinds of insurance you need and how much you should consider for each type, it's best to obtain the advice of a professional. Better than going to an agent representing a singular insurer, you would likely be better served by consulting with an independent insurance agent able to tap into coverage offered by multiple companies in order to get an unbiased idea regarding what's available and the ins and outs of each type of coverage. In asking questions, here are some uncommon questions to consider that don't often come up:

1. Q – If I allow someone else to drive my vehicle and they're involved in an accident, are they covered by my vehicle insurance?
   A – In most cases, anyone else driving your vehicle will be covered by your insurance if involved in an accident, provided they are determined to be at fault.

2. Q – The water pipes in my home burst and ruined many of my personal possessions. Will my homeowner's policy cover replacement?
   A – Such water damage is covered by most standard homeowner's policies with a few caveats. Valuable items such as expensive artwork, furs, collectibles (such as a baseball card or stamp collection), jewelry, etc., will have limits, often conservative amounts, on how much will be paid on a claim.

If you're away from home for seven days or longer during cold weather and the pipes freeze and rupture because you didn't make provisions to prevent this, you likely won't be covered.

3. Q – If a family of rodents gains entry to my attic space and causes significant damage, will my insurance pay for repairs?
   A – Unfortunately, critter damage caused to your home is not covered.