7 Things Every Homeowner Should Know

Let's just be honest – owning a home can be complicated! Whether you’re a first-time homebuyer (congrats!) or you've owned your home for years, there are likely things you should be doing to make sure you and your home are protected. Our goal at Charles Baker Insurance is to make homeownership a little less complicated and give you peace of mind. Let’s dive in to 7 things every homeowner should know about insurance and caring for your home.

1. Your homeowner's policy might not cover everything you think it does, make sure you are properly covered It’s true. With all the different types of plans out there today from hundreds of home insurance companies, there’s lots of fine print to read through. Most often, your policy doesn’t cover general wear and tear, plumbing issues, or disasters such as floods, earthquakes, or hurricanes. Between 2014 and 2018 more than 40% of flood insurance claims were filed outside of flood zones. These floods are caused by storms, broken water mains, poor drainage, and even local construction. According to floodsmart.gov the average damage caused by a single inch of water is more than $25,000. Some policies cover the full cost of replacement of your home in the event of a disaster, while others only cover a portion.

2. Smoke detectors should be replaced every 10 years
In new construction, the state of Texas requires smoke alarms to be installed. These are often wired directly into the home and all the detectors are linked. But what about in an older home? Prior to purchasing your home, your inspector should test all smoke alarms and make recommendations on placement. Your home should have smoke alarms on every level, in the hallways, and in all the bedrooms. These should be tested every month and batteries changed every year. According to Kidde, they should be vacuumed to prevent dust build-up. 

3. Know how to shut off the water to your home
As said earlier, a small amount of water can cause thousands of dollars worth of damage. Knowing where and how to shut off the water to your home is one of the easiest ways to protect from excessive damage. The main water valve is usually located on the outside of your home toward the front and should be easily turned by hand. If this is not the case, making sure you have the proper tools to turn the valve before an emergency can save you time and money in the long run. Another way to quickly identify a leak is to purchase flood sensors. These are small sensors placed on the floor in areas that are more likely to flood. Place these in laundry rooms, basements, around hot water heaters, dishwashers, and under sinks.

4. You can, and should, have your roof inspected
One of the biggest expenses in maintaining your home is having a roof replaced. It is recommended to have your roof inspected yearly, or every two years, if there is substantial tree coverage. It is a good idea to have your roof checked after any major weather events as well. This allows you to have minor repairs completed at a much lower cost to prolong the life of your roof. According to Allstate and Bobvila.com, the three main things to look for are loose or damaged flashings, loose or broken shingles in the gutters, droops in your roof. Always hire a professional to inspect your roof to ensure proper care and safety.

5. Damage from wind is the most common cause of homeowner’s insurance claims
More claims are filed for wind damage to homes than any other type of loss, including fire, water damage, and theft. Insurance policies generally cover multiple types of wind damage, including repairs or replacement of your roof, siding, and windows. Sometimes even additional structures on your property are covered. Be aware, there may be higher deductibles for events such as hurricanes. After a storm, be sure to contact your insurance agent prior to beginning any repairs to ensure appropriate reimbursement. 

6. Installing a security system could save you money on your home insurance
With an average savings of 2%-15% off your homeowner’s insurance, you might consider installing a security system. Some of your major insurance carriers, such as Progressive, Allstate, GEICO, and Liberty Mutual offer up to 20% off your policy. Not only does it qualify you for a discount, but it also provides you with peace of mind. Systems can range from self-installed to installed and monitored by a security company. Both can qualify you for a discount as long as your home is protected from break-ins. If installing a security system is not an option, there are a few simple things you can do to keep your home and family safe. Make sure that all doors have deadbolts and windows have locks. Keep bushes trimmed and minimize hiding spots around the outside of your home. Installing motion sensor lights is also a great way to ensure there are no dark hidden corners. 

7. According to Nationwide two-thirds of policyholders are underinsured
Nothing is worse than finding out after you’ve filed a claim that only a portion of the cost will be covered. With the cost of homes skyrocketing, it's easy to see how fast the value of your home and the cost of repairs can increase. According to a study by Nationwide, some homes are underinsured by 60%! That means in the event of a disaster, you could be out of pocket 60% of what it would cost to repair or replace your home. Home insurance is designed to protect you financially in the event of a disaster. 

Making sure that your home is covered and your insurance policy is up to date is the best way to protect your family financially and protect your home in the event of a disaster. Let Jenna at Charles Baker Insurance review your policy for free today and make sure that your insurance is working for you!

Preparing for Summer

We are quickly approaching that time of year when we catch ourselves itching to get outdoors, take time off, and spend time with family and friends. With summer, it seems like the possibilities are endless. Road trips, days on the lake, evenings outside. As the temperatures rise and you start to fill your bucket list of all the things you want to do this summer, there are a few things you can do to make sure that you are covered financially as well! 

It is pretty common to make sure the car is cleaned up, oil has been changed, and the gas tank is full, but we often forget to make sure that our auto policy is up to date as well. This is a great time to have your agent run your policy to make sure you have not only the best rate, but the best coverage as well. While most states do require a minimum standard of coverage, this does not always mean it covers everything you need it to. According to recent studies, it is more common for drivers to have an accident when they are in unfamiliar places. Distractions are increased when your car is loaded up and trying to navigate a new place can be more difficult. In the event of an accident you want to be sure that there is no extra stress by not having enough coverage and being liable for additional out of pocket expenses you weren’t planning for. Did you know that auto policies can cover rentals in the event of an accident? There isn’t anything worse than being stuck somewhere without a vehicle. This is one of those extra expenses that can make or break a trip, not only because of the lack of wheels but also due to the high cost of a rental. According to Kayak.com the average cost to rent a car in the state of Texas is up to $404 a week. Other states range as high as over $700. You can increase your coverage to include rental and provide peace of mind that you are covered as you set off on your adventures.

As you hit the road in your RV or motor home be sure that you have at least the state required insurance. In the state of Texas, we are required to have liability coverage just as we would with a car or truck. If you purchased an rv through a dealer and are making payments, your bank will have requested this coverage information. But if not, it is possible that this is not something you have considered. Like other things, you can add additional coverage for damages, replacement costs, roadside assistance, and even roof repairs. While we cannot always prevent incidents and damages from occurring, by reviewing your coverage and making changes early in the year and can protect yourself from unseen financial losses later on.

One of the things we most often forget about is insuring our toys that we pull out for summer. These include boats, motorcycles and dirt bikes, ATV’s, UTV’s, golf carts and 4 wheelers. While most of the time we choose not to worry about insurance coverage for things like this, there can be a benefit to taking a look at the options. While a boat can be very expensive to replace if damaged or totaled, the most important aspect of coverage for items like these is often not the replacement but the increased risk of liability. It is the owner’s responsibility to ensure routine maintenance is completed and that safety equipment such as life preservers, helmets, etc are worn. In the event that an accident does occur, the owner can be held liable for negligence. This can be for both medical expenses as well as damages to someone else’s property. There is a huge increase in lawsuits around ATV’s  over the last few years. Google “ATV Liability” and you will likely have a long list of attorneys pop up. Ensuring that your property is operated only by experienced and trained riders and opting for liability coverage will help limit the financial risk you may be exposed to.

We’ve talked a little bit about traveling and fun summer activities, but let's talk about weather changes as well. If you live in Texas, you completely understand how hot and dry it can become. Factor in wind, lightning, and campfires and you have a recipe for disaster. Unfortunately droughts are nothing new to Texas residents. In 1951, 1954, and 1956 it was recorded that it never rained. According to the Statesman.com the number of farms and ranches in the state were reduced from 345,000 to 247,000 and in 2011 the Texas economy lost $8.7 billion in livestock and agriculture due to drought. As of earlier this month according to drought.gov, 19% of our state was considered to be in extreme to exceptional drought conditions. One of the scariest parts of a severe drought is the risk of fires. While we do what we can to make smart decisions and protect our homes and land as much as possible, there is still very much a risk. One of the best ways to ensure you and your family are protected is to make sure your homeowners policy and/or your farm and ranch insurance is up to date. As our homes and land appreciate in value, the coverage we need increases as well. This is an excellent time to make sure that you have all the coverage you need to ensure you are not a risk. 

If you do not have an agent already, from the heat to our favorite activities, Jenna and her team are well qualified and extremely familiar with the Texas summers. They understand the risk that arises as we start to get outdoors and travel and are available to assist by answering any questions or concerns you may have, reviewing current policies, and looking at new policies. Jenna makes insurance easy by doing all the work for you. No need to spend hours scouring the internet and providing your phone number to a hundred different companies. Jenna and her team gather the information and will submit for quotes for you. They work with a number of insurance companies so they are able to find just the right fit for you and your family at the right price. Don’t let the Texas summer catch you off guard this year, be prepared in advance to ensure you have the best summer yet.