Up, up and away!
Have you checked your Home Insurance lately?
There are countless articles stating Insurance rates rose across the board in 2023, and the insurance agents I network with agree.
According to National Mortgage News homeowners insurance rates rose nearly 19% last year with no abatement so far in 2024.
Unfortunately, we know from personal experience that when we left our policies unchecked, and without an agent doing their due diligence, we were overpaying and underinsured. Although at one time, we were actually WAY over insured. After a review, an insurance agent asked ‘do you have a mansion?’ to which the answer, at age 25, was 'NO!' We were shocked how much we saved when we switched.
Despite my expertise in the mortgage industry, we still need a great agent to walk us through coverages, deductibles, umbrella policies, etc. As well as keep us updated with industry trends such as hail coverage, flood insurance, and the rising costs to rebuild.
Options
Not all agents are created equal
When I refer insurance agents to clients, there is one who always wins the business. That Agent is Katie Erlandson at Berlin Insurance Group. For business insurance, which is facing the same rising premium problems, Kimberly Walsh at Gaudette Insurance Agency goes above and beyond too.
Where else should you check?
Your Auto Insurance carrier! We have all seen the commercials that state you save money by bundling, and it is 100% true. New American also offers home insurance quotes. So far, my clients who have utilized this service have been satisfied.
Tip for home buyers
Some carriers offer a discount for home buyers if they start shopping for home insurance early.
It would be remiss of me to not also mention the many forms and names insurance takes on. We guide our clients through these and welcome questions along the way. Home Insurance is also know as Hazard Insurance or Property Insurance. H06 is the insurance term for an 'interior insurance policy' which is what is secured on a condominium/townhouse.
Have you heard of Owner's Title Insurance and Lender's Title Insurance? These are closing costs paid at closing and considered part of the Attorney's Fees. They are separate and distinct from home insurance.
Lastly, there is PMI - private mortgage insurance and MIP - mortgage insurance premium. PMI applies to Conventional loans where 20% equity is not met, and MIP applies to FHA, or Federal Housing Administration, loans. FHA has Up Front MIP, which at present is 1.75% of the loan amount on a purchase loan, that is then rolled on top of the loan AND FHA borrowers also pay that monthly MIP.
What's at risk?
For many folks starting out, taking the standard coverages is where they begin. Let's assume you have minimum basic coverages, standard deductibles, and your premium increases $100 each annual renewal. 5 years go by, and very quickly your $1,000 premium is at $1,500. The larger, national companies (think call center) are notorious for increasing annually regardless of market trends. In 2023, facing that 19% increase, the $1,500 premium now jumps to $1,785, all with only basic coverages.
What's are risk if you were sued, and the minimum coverages weren't sufficient? Would an umbrella coverage have helped?
What is at risk if you acquired valuable assets over time, and they weren't added to the policy?
What about with the changing weather patterns, is Hail Damage, Wind, or Flood covered?
What is at risk if your property experienced a fire, and with the rapidly increasing costs to rebuild, the policy wasn't sufficient? What is the cost per square foot to rebuild?
Now is the time to have your policies reviewed! An experienced insurance agent can advise what your risk is and make adjustments based on your needs.
Nicole's Closing Advice
Some great advice I once heard is to take a video camera around your home and document your assets. Be sure your insurance agent knows what you have and that you are properly insured. In the face of loss, it is difficult to remember everything. This video documentation can be very helpful.
Another added benefit to working with New American Funding is we offer NAF Concierge to our clients. From utilities to security, NAF Concierge helps homeowners get their new house connected, saving time and money. Too busy moving to contact your Utilities, including electricity, gas and water? Not enough time in the day to set up internet, smart home security, television, or phone services and moving services? The NAF Concierge Team is here for you.
Saving money along with five star service, that is what it is all about.
