Times Have Changed...Has Your Insurance Kept Up?

Sponsored by 3000 Insurance Group

As a CPA, you likely spend most of your time working to meet your clients’ needs and may not spend time evaluating your own insurance needs. It’s easy to get stuck in the habit of letting your policy renew year after year without re-evaluating your current needs, exposures and budget. As Oklahoma’s turbulent weather period approaches, I urge you to consider reaching out to an agent to evaluate your home and auto insurance.

Below are answers to some common coverage questions. 

My house is held in a trust or LLC. How do I cover it?
If any of your property is not owned in your name, discuss the details with your agent to make sure the policy is set up properly.

Why does the insurance company want to know what kind of dog I have?
Accidents involving dog bites cost the insurance industry over $1 billion annually, and as a result, many breeds are considered “uninsurable” or may require increased premiums.

I just bought my house for $305,000 – why is the insured dwelling amount $421,000?
When your home is insured for replacement cost, it needs to be insured at the amount it would take to rebuild your home with like kind and quality materials. Market value does not come into play – instead, it is a reconstruction value considering the size, materials and features of your home, such as the type of flooring, number of bathrooms, etc.

Does my homeowner’s policy protect my home-based business?
Homeowner policies are designed to cover personal exposures. Your best bet is going to be an in-home business policy or business owner policy.

I’m considering remodeling part or all of my home – will this affect my insurance?
Most policies require insuring 100% of the home’s replacement cost, so it’s important to raise your home’s policy limit before your project begins. If you’re working with a General Contractor, request a Certificate of Insurance for their Workers Comp and General Liability Insurance. DIY’ers, beware that you may be personally liable for friends or relatives that are injured while helping out as a favor to you.

Do I need a Personal Umbrella?
Yes! A Personal Umbrella is an affordable way to extend additional liability limits should you exhaust your underlying home or auto liability limits. For additional coverage, ask your agent about excess uninsured/underinsured motorist liability.

During a storm, a tree from my neighbor’s yard fell and destroyed my fence. Who pays for the loss?
Generally, your policy should cover the loss. The carrier might be able to recover the amount paid for the loss from the neighbor’s homeowners insurance if the loss occurred as a result of your neighbor’s negligence.

If I have water damage from a rainstorm, am I covered?
No, a separate flood policy is needed to cover losses to your property caused by flooding.

How do I collect for my personal property?
Whether your policy pays for the replacement or just the actual cash value of your possessions, you’ll be paid for personal property that you can show you owned at the time of loss. It is a very good idea to keep an up-to-date inventory, including pictures or videos, in a secure place.

A complete review of your policy is the only way to determine what property is covered and what perils are insured against. If you have questions or would like a quote from the OSCPA’s endorsed vendor, 3000 Insurance Group, call 405.521.1600 or visit 3000ig.com.