avant-garde insurance advisors – Avant-Garde Insurance Advisors

Do I need Other Structure coverage on my home insurance?

This is a common question which I often hear from my clients. This question often comes up when we are reviewing a policy to save money. This question may also occur when someone is buying their first home. While you may feel you don’t need the coverage it can be invaluable at the time of a claim.

In order to understand to important of this coverage it is worth looking at how we define what is the Dwelling and what is Other Structures.

A typical definition for dwelling is, “The dwelling on the “residence premises shown in the Declarations, including structures attached to the dwelling.”

The typical definition for Other Structures is, “We cover other structures on the “residence premises” set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection.”

Based on the above definitions, Other Structures could be a fence, garage, shed, pool, cabana, patio, etc.

You may feel you don’t have any structures on your property that meets the definition of Other Structures but here is the catch – Other Structures is automatic coverage on the policy and is already built into the price. It does not cost you additional money or added to the policy to bump up the cost.

The amount for Other Structures is based on a percentage of the Dwelling amount listed or primary structure value which may be 10%, 20% or 30% of the Dwelling amount listed based on the insurance company.

That being said you may want more coverage than is automatically provided. This is important to discuss if you have several Other Structures or Custom Structures on your property. This often is the case with farm properties which are no longer an active farm. Also, water front properties that have boat lifts, docks, boat houses, etc.

While you may feel you do not have anything that qualifies as Other Structures, you may in the future. You could build a pool, a garage, a fence that meets the definition of Other Structures. It is always best to have more coverage than you think you need than to not have enough coverage at the time of a claim. Other Structures is a valuable coverage which you should give careful consideration and be discussed with your insurance agent when reviewing your home insurance for adequate coverage.

9 home insurance coverages you should have and 2 you should discuss with your insurance agent

Homeowners insurance is kind of like cars. You have the base year, make, model and then you have add-ons. A car can come with a package or a group of features or you can add features a la carte. Homeowners insurance is similar, but more complex. A home insurance policy comes with the basics which I cover in this video. You should never purchase the basic policy without looking into the add-ons. If you are not sure what home insurance coverage you should have, here is a list of the top 9 coverages or endorsements you should have in your home insurance policy and 2 you should ask your insurance agent about.

Special Coverage for Dwelling –Insurance professionals may call this allrisks or open perils but it refers to the same coverage. A basic home insurance policy is typically written to include only 16 types of claims. However, if you add this coverage or endorsement it will open the policy to cover home claims, excluding 11 types of claims. Essentially you can have a policy that only covers claims that are listed or have a policy with 11 exclusions.

Special Coverage for Personal Property – Like the coverage for dwelling you can have either specific claims covered or specific claims excluded.

Replacement Cost for Dwelling – Without Replacement Cost coverage the policy would settle claims based on actual cash value. Most home owners want to be put back to their original home condition versus less. Furthermore when you have Replacement Cost coverage on your dwelling you should have an additional limit or cushion available should you need more than the dwelling amount for a total rebuild of your home. I recommend at least 150% to start.

Replacement Cost for Personal Property – Without this coverage claims would be settled on a depreciated value basis. Most people do not want to buy used personal items or shop at Good Will. If you want new for old then you will need this coverage.

Water Back-Up coverage – a homeowners policy does not include coverage for the back-up and overflow of drains inside your home without adding this coverage to the policy. Any drainage systems inside your home can back-up and overflow causing damage to not only the interior of your home but also to personal items. According to iPropertyManagement the average amount for a home water claim is $10,000.

Personal Injury – While many of us would not purposely attack another person you could be potentially accused or sued for it. This coverage may include slander, libel, defamation of character, invasion of privacy, mental anguish, assault, etc. Without this coverage you would be out of pocket for an attorney to defend you whether the accusations were true or not.

Identity Fraud – This type of event is so common place today that we are almost immune when it is announced that there was data breach. That being said such an event can be damaging to any one, with long term financial consequences. This coverage is minimal cost and worth having.

Service Line Coverage – Our homes are connected to an infrastructure of water lines. There are some areas of Baltimore and Maryland that are older and more susceptible to failure. A water line on your property that collapses causing water to back flow into your home can damage not only the inside of your home but personal items as well. The local community, city, and county will not fit the bill. Ultimately the home owner will if this coverage is not added to your home policy.

Equipment Breakdown – Homeowners insurance is not a warranty program. If an internal appliance, such as the HVAC system fails, the homeowners insurance will not pay to repair or replace the system. Insurance companies have gotten wise to the issues that come with home ownership and the cost of new appliances today. Without this valuable coverage you will be out of pocket to repair or replace your appliances should they fail.

Bonus Coverages:

Loss Assessment – It is very common for communities to have homeowners associations. If a severe weather event were to occur and damage portions of the community the by laws of the homeowners associations may allow them to charge back to home owners in the community an amount to cover damages. Without the appropriate amount of coverage you could be out of pocket thousands of dollars.

Ordinance & Law – Following on Loss Assessments homeowners associations may also require that your home have a certain esthetic look; roof type, siding, etc. This is common in golf communities. Also for homes located in coastal areas, mountainous terrain, etc. you may need to build to a certain code dictated by the city, county or state.

While this is not an all-inclusive list these are the coverages or endorsements that are added and/or discussed with my clients when reviewing their home insurance policy or quoting alternative options. Some of these coverages are new and were created as a result of the changing times. Some of these coverages have always been available but not used by agents. Regardless, as a home owner you should be aware of the various options available and discuss with your insurance agent on the best ways to protect your home.

If you haven’t reviewed your home insurance policy recently its time to call your insurance agent. A good agent will not only review your current policy for coverage gaps but discuss ways to fill those gaps.

Googling homeowners insurance could spell disaster for you.

Have your ever Googled your symptoms even though you know you should’nt only to find out you are dying in the next five minutes?!?

I have done it. I was recently diagnosed with a difficult form of eczema but had convinced myself after Googling my symptoms that I had skin cancer. After hemming and hawing I decided to put on my big girl pants and talk to a professional – my dermatologist. She quickly settled my nerves and told me that greasy lotion was my new best friend and that feeling like a greased pig was a new way of life now.

That’s like Googling home insurance and going with the first website that promises you cheap home insurance. It may seem easier and less stressful to do it yourself but you don’t really know what you need or what’s available. Only an professional can do that.

According to a study completed by JD Power in 2016 74% of new insurance purchasers will begin the buying process online. Of those consumers 25% will purchase insurance online. The rest use other methods, such as insurance agents or insurance company call centers. Now consider that 60% of homes in the US are under insured as stated by Marshall & Swift/Boeckh, and per Insurance Information Institute 1 in 20 homes will have a home claim each year. Those are some scary statistics from my perspective.

I know asking for help is difficult sometimes. My husband easily comes to mind when it comes to asking for help, asking for directions, or visiting a doctor. Hearing, “Honey, you were right.” always feels good. There is a reason there are doctors and there is a reason why there are Insurance Agents. It’s because we need them.

You may think by Googling and searching through a couple options that you have the right insurance. You can’t tell from seeing a few websites what you are getting until you are knee deep in a claim and you are hearing the word “denial” from your claim adjustor when you realize you may need a professional.

You are not paying extra money by using an Insurance Agent. You are asking for some one to build a relationship and trust with you. You are asking for an Insurance Agent to help you insure your home and auto adequately and to educate you about what is available to you. So ask for help and don’t go it alone. You will be glad you have some one to call if and when something happens.

11 Reasons to Work with Avant-Garde Insurance Advisors

For 20 years I worked tirelessly for insurance agencies receiving little appreciation for my contribution to the agency or the industry. I dazzled their clients and bonded with their prospects like no insurance agent could. I aspired to continue to grow, improve, and give back while insurance agencies were unwilling to create necessary change within the agency and the industry. A year ago I struck out on my own to create an insurance agency different from others. An agency that challenges how people view insurance; as a commodity, as a necessary evil, as a conspiracy. Avant-Garde Insurance Advisors is not another insurance agent, we are an Insurance Advisor. Below is why Avant-Garde Insurance Advisors is not an insurance agent.

I will challenge the thought that insurance is a commodity every day. Insurance is not a one size fits all. Every policy is different. Each insurance company has its own appetite for the preferred policyholder. Reading an insurance policy requires an insurance and/or legal background. Not all insurance claims are covered and/or go smoothly.
I will continue to learn about insurance every day. Not because the state of Maryland says I must but because I want to give you the most up to date information that is available to me. Yes, continuing education sucks but it is a necessary evil in order to give you my best. The insurance industry constantly changes, and I want to be at the forefront on behalf of my clients.
I will share with you my insurance knowledge. I am not a gatekeeper of insurance knowledge but I do live and breathe insurance each day and I want to help you better understand insurance so you can make a more informed insurance decision.
I will provide consistent oversight over your account and make you aware as soon as possible of issues or concerns. I will also provide you options on how to handle your insurance needs. I will steward your account as if it were my own.
I will advocate on your behalf with the insurance company to treat you fairly. The insurance company needs to make a profit. You need to maintain your livelihood.
I will communicate the timeline for completing your request and I will stick to it. Insurance does not happen at the push of a button – if done right.
I will be honest with you. If I make a mistake, I will tell you. I will also tell you how I am working to correct it. I am only human, but I value you as a person.
I will tell you how it is and not sugar coat if you are jeopardizing your insurance future. It is not in your best interest or my best interest if we are not open with each other.
I will not bend rules or lie to another party for a client. I cannot in good conscious jeopardize my livelihood or my family for another person.
I will not offer you the cheapest insurance program just to beat your current insurance program. Any one can offer you a cheaper policy by cutting coverage or not give you all the information. My job is to give you the best coverage for you.
I will work to earn your business every day. Insurance is a relationship business, not a sales business. Tell me about your work, your spouse, your kids, your hobbies. I want to know who you are.

If you want more than an insurance agent, if you want more than an insurance transaction, if you want something different start working with an Insurance Advisor at Avant-Garde Insurance Advisors today!