Also, you would Never be liable for the personal property of a tenant (except if you were completely negligent). However, as a landlord I would require your tenants to carry a renters policy simply for the Liability portion of the policy. Liability is the coverage that protects you from you tenants or your negligence. Like, if you were at your property one day to do some yard work & left the hose out on the sidewalk & the postman trips over it. He would probably sue you. Liability covers that. I would suggest no less than $300,000 per occurance. It’s usually pretty inexpensive (around $40.00 a year) to bump it up from $100,000.00 to $300,000.00.

FYI: The insurance company probably would not deny the claim but after the claim was closed they would most definitely set you up for non-renewal. That looks very bad when shopping for a new company. One of the questions will be: Have you ever been non-renewed & why?

What is “Insurance to Value”

Insurance to Value is a provision in most home insurance policies that states you must insure your home to a specified percentage of the value of the home. This requirement is normally 80%-100% of the cost to replace or rebuild the property (not the market value). In return to complying with this provision, the insurance company usually offers lower rates. However, if the Insurance to Value requirement is not met, you are considered “underinsured” and can be penalized when a property claim is filed. The penalty is calculated using the formula below.

Insurance Carried on Property

————————————–     X   Damage Amount  =  Amount Paid by Insurance

Insurance Required on Property

Let’s revisit our example to see why the Insurance to Value provision caused the insurance company to pay $20,000 less than the $100,000 of damage you suffered in the fire. After letting you blow off some serious steam, the adjuster explains that the amount of “Insurance Carried” on your home insurance policy was $200,000 but the “Insurance Required”, based on your 100% Insurance to Value provision, is $250,000. Thus, you are underinsured by $50,000 or 20% and your $100,000 of fire damage is only covered for $80,000*.

$200,000 (Carried)

—————————   X   $100,000 (Damage) = $80,000 (Paid by Insurance)

$250,000 (Required)

How Can I Protect Myself

I know this example may sound extreme but it can and does happen. It is estimated that 60% of homes are underinsured by as much as 20%. Here are some tips to protect yourself from being underinsured and from being disappointed if you have a home insurance claim.

1. Contact your agent to find out what your “Insurance to Value” requirement is on your home insurance policy. The impact can be significant if it is 80% or 100%.

2. Have your agent calculate the replacement cost value of your home and find out if you are underinsured. Even if you have to pay a few extra dollars to increase the coverage on your home insurance, it is much better than going through a claim that leaves you paying thousands of dollars out of pocket.

3. Make sure to contact your agent anytime you upgrade, improve or make an addition to your home because this may change the amount of insurance you are required to carry. See more on this subject in our prior blog post “Don’t Improve Your Home Without Improving Your Insurance”.

4. If you are shopping your home insurance, make sure to ask what the Insurance to Value requirement is and how a partial loss and total loss claim would be handled. Not all insurance companies handle this the same way and this is a great example why shopping insurance solely on price can be dangerous.

Were you aware of this important home insurance penalty? Please leave questions and comments below.

* This example assumes the actual cash value settlement option is less than the Insurance to Value option

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Technorati Tags: home insurance anoka, home insurance Blaine, home insurance coon rapids, home insurance elk river, home insurance minneapolis, home insurance MN, replacement cost

Home Insurance rates are going up again this year.  When your home insurance goes up – You need to call 763-390-4872

You don’t have to take your insurance companies nonsense any longer.   Drop a bomb on their high rates.   You have other options – like saving  a bunch of money on your home insurance here.  Many area residents have already switched over their insurance and saved a signifcant amount of money.

Some have saved over $1000 on all their insurance.    Maybe you can too.

Some people thought they already had a good deal - until they reviewed their insurance.  Many still can’t believe how much they saved.

It is possible they had good deal when they first started the policy.  However,  It only takes a couple double digit increases – like we’ve had in MN, to be way over paying.  Compound a bunch of little yearly increases and it adds up to paying way too much.

Did you notice how much your insurance went up last year?  How much has it gone up since you started the policy?

Last year over fifty percent of home insurance companies in Minnesota had double digit rate increases. Your insurance rates are likely not going down this year as more companies will have increases.

What could you do with an extra $1000 a year?  You don’t have to hope for a big tax return or another stimulus package to get a break.  It’s right here and easy for you to get your own home insurance stimulus.

This is not the first time you have seen an offer telling you how you can save on home insurance.  So, why is this one different?

Basically, We are not some big corporation trying to cater to the masses.  We specialize in just this area niche and it gives us an advantage.  We are experienced local expert agents - not some customer service rep’s in another state – just working for the company.  We are not captive agents working for just one company either. We represent many companies and work for you.

Our edge is we know this market and we have really good connections.  We know which companies are planning rate increases, which ones already had increases, and which ones have had rate reductions.   We compare policies and quotes everyday.  So, we know this market and the competition too.  We almost always have the best rates.  We actually have some competitors agents as clients.  They like to save money too.

Our experience combined with a  proprietary rating software system will give you a huge advantage you can’t get anywhere else.  We are local so it is much safer too. You can do it all online here, call, or stop in.  We have dozens of companies so you don’t have to shop all around. We are a short cut.

Here are some of the reasons why people are overpaying:

• Some never review their insurance and do not realize how much rates have gone up.
• They tried comparing  once and it was a hassle – so they don’t bother to try.
• People don’t like change.
• People are really busy.
• They don’t know who to trust.
• Insurance is boring – that is until you save money here and get a big refund from your current carrier.
• They really like their agent.
• Some people are just way too lazy.
• Some people have lazy agents.  Most of them won’t offer to review or go after all the discounts available.
• Whatever reason you may have - you should let us review your insurance.

Here is why you should…..

You could use the money saved for something else.

You will know for sure you are not over paying.

We represent all the top companies in this area from AAA to West Bend Mutual.  So, your going to have a solid company.

There are some companies – not many - that actually had rate reductions in Minnesota.   We know which ones had reductions and how to get their lowest rates.

We take the time to get you all the discounts available and it can really add up. We have some of the easiest quote forms.  It won’t take much time.  It will be easy.  You can do it all online, call, or stop by one of our offices.

It’s easy!

Here is what you’ll have:

You will have an experienced local agent who knows the competiton, this local market, and one that is really tough to beat.  You will have periodic reviews to ensure your rates are always good and you are properly insured.

Let other fools spend hours shopping around trying to figure it all out, who to trust, or  keep over paying, etc..   You can take a short cut, have all the advantages without all the hassles, by just calling us or filling out a simple form.  You’ll have more money with equal or better coverage and no hassles.

I am going to make it even easier for you to take a look and put the risk on me.  I want you to review your insurance now – no excuses.  So here is the offer.  It is not only free to see if you can save money – If we can’t beat your current rates for this years policy in 2011 – we will give you a $25.00 gas card for letting us try.  No strings attached. So take action now.   You can’t lose unless you do nothing.  In which case you are likley to lose a lot each year by over paying.  I know you will get busy and we will too.  I am also afraid we are going to run out of gas cards.  So, this offer will end 08/15/2011.  Call or click now.

You also need to know this offer is not for everyone…..   If you are known as uncle “ Cheap Skate Charlie” and you are the type of person who does not care what kind of coverage you have and only have insurance because the bank is forcing you to have insurance….then we are not right for you.  We offer only the best coverage at the lowest cost here.

If you don’t mind paying hundreds more than you need to each year…then you will probably not be interested.

If you are an agent or your brother in law is your agent  - we are probably not right for you.  Unless you really need to save money.

If you are not getting up right now gathering your insurance papers – we are probably not right for you.

However, if you are the type of person who takes action and takes their finances serious and you are not one of those other people listed above… then you really going to like it here.  Click on the home button or call 763-390-4872 and start saving now.

-This offer is only for Anoka and Sherburne county residents. I will try to post some recent home insurance quotes as proof later.  Please don’t wait.  Your insurance company does not need any more of your money.  Take action now before your rates go up again.  You are going to be really surprised.

What people are saying about Tim Peddycoart, BlainehomeInsurance.com and The insurance Specialists Team

” We have had our insurance with Tim for four years now and I figured it has saved us over three thousand dollars so far.  I am glad we reviewed our insurance and switch from American Family.  “  – Mark Beilke

“Our mortgage peron said our insurance looked really high and referred us to Tim.  We were paying close to $1200.00 a year with our old company and now our insurance is less than $600 a year. I had no idea we could save that much.  Awesome”  – Frank Thibault

” I have known Tim for many years.  I’ve been meaning to call him for years.  I finally did when my rates when up again with Nationwide.  Man,  I wish I had called Tim sooner.  I saved over $400. ”  – Robert McMahon  - St. Louis Park, MN

Please ask questions or post your comments and how much you saved below.  Thank you!

Technorati Tags: home insurance, home insurance Blaine, Home insurance Quote, save on insurance

Homeowners insurance prices can vary depending on which insurance company you choose. You should review your insurance policies every few years – at least – to ensure you have the correct coverage and pricing.  Now – with the rates up - would be a good time to review your policy and compare rates.

The best way or at least the most efficient way is to contact a local independent agent in your area. They will have the most options and you won’t have to shop all around trying to figure out which quote is best and who you can trust. They will likely represent the best companies for the area and know the correct coverage for your area. Ask them if they do periodic reviews. If they do that could save you a lot of hassle too.

You do not want to get a quote online unless it is from a local agency. Here’s why – most online quote sites just collect your details and sell your information over and over.  Many of these companies are out of the state and their agents or rep’s may or may not have experience, they may or may not know the correct coverages for the state. You can get your best quotes with the least amount of hassle by sticking local.

Use www.HomeInsuranceMN.com to receive quotes for Blaine and the surrounding Anoka county cities. They are local and specialize in serving Anoka county. You can get a quote online, call, or stop by their office. 763-390-4872

Use www.istmn.com for all other lines auto, bus, life and health. Call 763-441-0291 now and start saving today. When you call have your insurance papers handy for the most accurate and quickest quotes.

Technorati Tags: home insurance info, Home insurance Quote