How Credit Scores Affect Insurance Rates

Back in the good old days insurance rates were determined by the driver’s age, sex, driving record and the type of car.  At that time you paid for homeowners insurance based on the type of construction and you got a big discount if you lived within three miles of a fire station.

Those are still considerations today, but something else plays a bigger role in your rates than you might think – credit score.

According to Bankrate.com:

“A consumer with a bad credit score is going to pay 20 to 50 percent more in auto insurance premiums than a consumer with good credit. … On the other hand, having sparkling credit could land you lower insurance rates so you should shop around if you’ve got a glowing report.” [emphasis added]

Whether or not you think insurance companies should use credit score to determine risk and insurance rates, it’s a fact of life.

So what can you, as a consumer, do to get the lowest insurance rates?

If your credit is good, find out from your agent if you’re getting the best rates. If not, shop around. For you, it’s a buyer’s market.

However, if your credit is less than stellar and you’re currently insured, your best strategy may be to stay where you are while you improve your credit score.

If you’re denied insurance because of poor credit, or if you think your rates are higher than they should be because of your credit, ask what factors were considered and how you can improve your application.  Contact Insurance Land.  We can help.

Under the Fair Credit Reporting Act, you’re entitled to know who supplied the information to your insurance company and what it said. Remember that the credit reporting agency can tell you what they reported, but only the insurance company can tell you why they turned you down.

1. Ask the insurance company for the name, address and phone number of the credit agency that reported on you.
2. Contact them for a copy of the report. If you request it within 60 days of when your insurance was turned down, they must provide it to you free of charge.
3. Once you receive the credit report, review it carefully. If there are any inaccuracies, ask the agency to fix them.  The FTC (Federal Trade Commission) publishes guidelines on how to challenge credit report errors.

Sometimes a credit problem is fairly easy to fix. For example, if you are too near your credit limit on a credit card, pay down as much as you can, then re-apply for the insurance.

If you’ve had a history of good credit, but developed problems recently because of a specific situation – job loss or illness, for example – let the insurance company know about those circumstances.

If your credit is in the toilet, you’ll need to take drastic action. The FTC’s page on How to Repair Your Credit is a good place to start.

We live in a credit-driven society. Tying credit to insurance rates is just one more example of why it’s important to maintain a good credit score. In the long run, good credit will save you money.

If you’d like to re-evaluate your insurance, our experienced, licensed agents will be happy to provide a no-obligation consultation. Call us today at 407-330-3111.

Visit our website at www.insuranceland.org to see the types of insurance we can offer.

Protect Yourself From Holes in Your Boat Insurance Coverage

What would a Florida summer be like without exploring the waterways, water skiing, fishing and other boating activities?

July marks the middle of the boating season. As a boat owner, you probably spend more time on the water during June, July and August than all the rest of the year combined, even in Florida.

Naturally, you make sure you have adequate insurance coverage for your boat during these peak times, but what about the rest of the year? And, more importantly, do you have enough liability coverage?

Florida boat insurance covers more than just damage or theft, so it’s important to have a boat insurance policy that frees you to enjoy your watercraft.

Boat insurance has more in common with auto than homeowners insurance, an important fact to keep in mind when you’re shopping for boat coverage.

What Does Boat Insurance Cover?

A good boat insurance policy covers you against damage and theft, as well as fire and flood. It also covers liability, including environmental cleanup.

Liability Coverage

The liability portion of the policy includes bodily injury and property damage resulting from an accident you cause.

Bodily injury takes care of someone else’s medical bills if your boat harms someone. It can also pay for lost wages and legal costs of the claim.

Property damage liability pays for damage to someone else’s property, such as a dock or other structure, or another boat.

Damage Coverage

This pays for costs of damage to your own boat or property that you cause, for example, if you run into your own dock.

Optional Coverage

While most boat insurance policies include the basic liability and damage coverage, some additional coverages can reduce your financial liability considerably.

Uninsured or Underinsured Boaters

Just as you probably carry car insurance against uninsured motorists, it’s a good idea to insure yourself against the financial consequences of an accident with an uninsured boater.

Medical

A medical rider will pay expenses for you or your passengers resulting from a boating accident.

Fishing Equipment

If you use your boat for fishing and carry expensive equipment, you can add a rider to cover it.

Personal Property

A personal property rider covers damage to other personal property while it’s on the boat, or being put onto or taken off the boat.

Evaluate Your Boat Insurance Needs

It’s wise to review your individual situation with an experienced agent who’s knowledgeable about boat insurance. Don’t make these five common mistakes:

1. Assume your homeowners policy adequately covers your boat. If you store your boat at home, your homeowners policy does provide some protection. However, coverage is limited, and may not provide liability coverage in all circumstances.
2. Assume your homeowners policy provides the least expensive coverage. You may be pleasantly surprised to find a specialized boat insurance policy can save substantial amounts while providing better coverage.
3. Risk your homeowners policy. If you make a claim against your homeowners insurance for a boat-related liability, it could affect your deductible or your rate. It’s a better financial strategy to keep them separate.
4. Cancel during the off season. About 20% of all boat claims occur during the fall and winter months, from Labor Day to Memorial Day. Even if your boat isn’t in the water, you risk theft and damage from vandalism, fire and flood. Make sure you’re covered during the off season.
5. Assume the marina’s insurance will cover you. If you store your boat at a marina or in dry dock, you’re still liable for certain damages. For example, if a hurricane blows in the roof of the building where your boat is stored, the marina’s insurance is unlikely to cover it. Or, if someone is injured by your boat – even if they are there illegally – it’s your liability, not the marina’s.

We’ll be happy to review your coverage and make recommendations for an affordable policy that will protect you during boating season and all year long. Call Insurance Land today for a no-obligation boat insurance consultation.

10 Ways to Protect Your Home Against Hurricane Damage

Hurricane season has begun, but you can still take steps to minimize the risk of damage to your home if a named storm swoops down on Central Florida this year.

Here are 10 ways you can beef up your home’s protection before a hurricane approaches – don’t wait until a storm is on its way!

Outside Your House

1. Check all trees and bushes around your house, and remove damaged or dead limbs. Encourage your neighbors to do the same – a flying branch from next door can cause just as much damage as a limb from one of your own trees, after all.
2. Replace loose gravel landscaping with bark.
3. Clean out gutters and downspouts so they drain properly.
4. Create a plan for securing lawn furniture, grills and children’s outdoor play equipment – you don’t want anything coming loose and flying around during the storm. Contrary to popular belief, It is not advisable to put lawn furniture into your swimming pool, although many Floridians do so.

The Structure Itself

Remember that windows, doors and your roof are all vulnerable to damage from hurricane-force winds, so you want them to be as strong as possible.

1. If you remodel, choose impact-resistant window systems, especially for sliding or patio doors.
2. Obtain shutters to protect your windows.  There are three types of shutters: accordion and roll-down shutters are permanently installed on your house, while storm panels are installed when needed. If your shutter system is certified impact resistant by Dade County Building Code you know it gives top protection. Plywood is not a good shutter choice and doesn’t meet current building code, but if you must use it make sure it’s at least ½” thick and has been treated for outdoor use. Note that window film and tape provide no protection against flying debris.
3. If you have older skylights, replace them with new products that meet current codes for wind resistance.
4. Make sure your garage door can resist high winds. All garage doors should have permanent stiffeners. Newer doors come with them, but if you can’t install stiffeners on your older door, contact the manufacturer for information about temporary center supports. You’d install them before a storm hits, and uninstall afterwards.
5. Outside doors should have a minimum of three hinges, and a deadbolt that extends a full inch. Make sure the doors are securely anchored to the framing.
6. Inspect your roof for missing or damaged shingles which could let in wind or rain. If the roof doesn’t meet current codes for wind resistance, upgrade at the first opportunity.

Bonus Tip to Protect Your Home during a Hurricane

Now that you’ve done what you can to protect your home against hurricane damage, give yourself some financial peace of mind as well – review your hurricane insurance coverage. Damage from hurricanes, and the flooding that often accompanies them, can be extensive and expensive so be sure you have the right policy you need to protect your home and its contents from hurricane losses. Our highly trained agents will be happy to meet with you for a no-obligation insurance review.

Can you Afford to Rebulid After a Hurricane?

Every year, hurricanes cause millions of dollars worth of damage to Florida homes and businesses. Hurricane insurance can be complicated, and laws about it have changed several times during the past few years.

The important question to ask yourself is, “if a hurricane wallops my area, can I afford to rebuild my home?”

For most of us, that answer is “no,” so we need to be sure our hurricane insurance policies cover us properly.

Hurricanes cause property destruction in three basic ways: wind, wind-blown rain and flooding. Most hurricane policies cover damage from wind and wind-blown rain, while flood insurance is a separate coverage.

The amount of damage correlates directly with the fierceness of the storm. A Category 1 hurricane is the least damaging and a Category 5 storm is the worst.

Wind

During a hurricane, the soft breeze that cools you down on a warm evening becomes a giant child hurling missiles at your property.  Lawn furniture, tools, equipment, tree limbs, even cars and entire trees can pierce windows, doors, walls and roofs.

Broken windows are the most common type of hurricane damage, because even a Category 1 storm can toss anything that isn’t tied down through your expensive glass.

Missing roof tiles and lifted roofs are also common.

Additional types of wind damage include:

• Doors, including garage doors, blown in
• Damaged siding
• Missing roof turbines
• Loss or damage to personal items
• Sheds, porches, carports or other outbuildings blown over or damaged

Wind-Blown Rain

When rain has hurricane-force winds behind it, it can get into your house in unexpected ways. Holes in the roof, gaps in the chimney, windows or doors, and access along electrical, phone or cable TV lines are just a few of the ways rain can find its way inside.

Wind-blown rain can damage walls, ceilings, floors and personal property, and short-circuit your electrical system.

Flooding

Flooding refers to a “general and temporary … partial or complete inundation,” according to the NFIP (National Flood Insurance Program).

If a hurricane dumps enough rain onto the ground and into our rivers, streams, and storm runoff systems, flooding will occur.

After the storm ends, you can find your home inches deep in water and accompanying mud. If flooding and winds are severe enough, they can damage your home’s foundation and cause septic tank leakage.

Flooding also brings disease, vermin, snakes and insects.

It can ruin appliances and electronic equipment, furnishings, clothing, floors and floor coverings, and walls.

If the floodwaters mix with electricity, they can also cause fire.

What Will it Cost to Repair Your Home?

Construction costs are estimated using square footage so you need to know how big your house is. If you’re not sure, check your property tax records – the number of square feet under roof will be specified.

Once you know your home’s square footage, you can estimate rebuilding costs by multiplying that number by the average cost per square foot for building, remodeling or renovation in your area.

Building-Cost.net can give you an estimate for new construction based on specifications you provide. You might be shocked to find the cost of rebuilding to be more than your home is worth in today’s market!

And, of course, that amount doesn’t include the cost of cleanup and repairing or replacing personal property, or paying for you to live someplace else while cleanup and repairs are going on.

In a nutshell, that’s why you need to be sure your hurricane insurance provides adequate coverage to protect your home investment.

Our knowledgeable homeowners insurance agents can review your policy and make sure you have proper hurricane and flood insurance coverage. Don’t wait until a named storm is on its way – it will be too late to put a policy in place then.

What is Flood Insurance and Do I Need It?

Many Florida homeowners are confused about flood insurance, and for good reason.

In insurance terms, “A flood is an excess of water (or mud) on land that is normally dry” according to the National Association of Insurance Commissioners:

The NFIP (National Flood Insurance Program) is even more specific.

“A flood is a general and temporary condition of partial or complete inundation of two or more acres or normally dry land area, or of two or more properties.”

That inundation can come from an overflow from a body of water, a “rapid and unusual” accumulation of surface runoff, a mudflow or the collapse of a shoreline.

Flooding does not include water entering the house through a damaged roof or wall, a backed up sewer or broken pipes inside the house.

Flooding can occur anywhere. In fact, nearly 25% of all flood insurance claims come from properties located outside a high-risk area for flooding. If you live in an area that gets rain, you can have a flood.

Spring thaws, ice jams and heavy rains all cause flooding. Even after a normal rainstorm, runoff from an area that’s been burned by a wild fire can cause flooding because the burned ground doesn’t absorb the water.

Fortunately, in Florida we don’t need to worry about the first two. But heavy rains, or even normal rains after a fire, cause a lot of damage to Florida homes – damage that isn’t covered unless you have flood insurance.

And flood damage is expensive – the average flood claim tops $33,000. (In comparison, the average flood insurance policy only costs about $500 each year. )

Floodsmart.gov provides information about flooding and flood insurance. Check out their Cost of Flooding calculator – you might be surprised at what you learn. For example, a small flood which brings only an inch of water into a 2,000 square foot home can cause over $20,000 in damage! Can you afford that risk?

Many homeowners believe – mistakenly – that their regular homeowners policy protects them from flood damage. It doesn’t.

Last year, the Insurance Information Institute found that about 26% of homeowners in the South incorrectly thought their regular homeowners policy covered flood damage from a hurricane.

So who really needs flood insurance?

Mortgagors require homeowners who live in designated floodplains to purchase flood insurance. FEMA (Federal Emergency Management Agency), not the bank, identifies these floodplains, also known as SFHA’s (Special Flood Hazard Area).

But, as previously mentioned, a quarter of the homes damaged by flooding every year are outside those high-risk areas. It only takes one hurricane or heavy storm to put you under water, literally and financially, so even if you don’t live in a floodplain you should have flood insurance.

Timing is important, too. Once you purchase flood insurance, there’s a 30-day wait before it goes into effect.

To assess your risk of flooding, contact Insurance Land and speak to one of our agents to see if your homeowners insurance policy includes flood insurance.

What is Renters Insurance and Do I need it

Everyone knows that when you own a home, you need to insure it. But what if you’re renting? Unless you own a lot of expensive furniture and household items, there’s no point, right?

Wrong!

Renters insurance does a lot more than just replace stolen items. Here are some common scenarios where renters insurance can save your financial hide:

1. Your girlfriend’s mother slips and falls on the stairs in your apartment. She doesn’t like you anyway, so she decides to sue. Your renters insurance pays for your lawyer and your visitor’s medical bills.
2. A big tree comes down in a storm and crashes through the roof. That’s not your responsibility, of course. But where do you live while your home is being repaired by the landlord? Renters insurance will cover it.And what about the damage to your big-screen TV and stereo from the ceiling caving in? That’s not the landlord’s responsibility! Renters insurance to the rescue – again.
3. After days of heavy rains, you come home and find three inches of water on the floor. Your landlord’s insurance may not cover it, but a good renter’s policy will cover the damage and pay for you to stay someplace else until the apartment is livable again.
4. The airline loses your luggage, including all the souvenirs you’re bringing back from your vacation. Your Renters insurance covers losses while you’re traveling.

A 2008 study found a lot of renters were confused about insurance, especially its cost. Most respondents estimated it would cost about three times more than it actually does.
Some other misconceptions about renters insurance:

• My landlord’s insurance will cover any problems. This is false. Your landlord’s insurance will cover structural damage to the building you live in, but it won’t cover the cost of repairing or replacing your possessions, or the cost of finding somewhere else to live while your unit is being repaired.
• I don’t own much so I don’t need liability coverage. This is also false. We live in a lawsuit-happy society. Even if you are not at fault, defending yourself can cost thousands – or even tens of thousands – of dollars. Your insurance can’t give you back the time and energy involved in a court case, but at least it will ease the financial burden.

Renters insurance is also surprisingly affordable – many of the study respondents estimated it would cost three times more than it really does!  Before you contact a licensed agent for a renters insurance quote, you’ll need to gather some information.

Inventory your furnishings, appliances, electronics, clothing, books, DVDs and other items. Your insurance agent can help you figure out what it’s all worth – you may be surprised at the total!

Make a separate list of jewelry, computers, musical instruments and art. You’ll need a policy rider to cover them. Don’t forget to take photos of all your valuables.

Decide whether you want to insure your belongings for their replacement value or actual value. If you choose actual value coverage, you won’t get much for that five-year-old TV. Replacement value will cover the cost to buy a comparable new one.

As with any insurance policy, there will be a deductible. The higher the deductible, the lower the monthly or annual premium will be.

Every renter’s needs are different. A licensed, local agent can help you find the best policy for your circumstances.

Contact insurance Land today for a no-obligation consultation and Florida renters insurance quote. You deserve the peace of mind.

Eight Questions to Ask Your Agent About Hurricane Insurance

Hurricane season in Florida began June 1. Are you ready?

No, I’m not asking about your hurricane kit or family evacuation plan, although you should have both in place.

I’m asking about your family’s biggest asset, your home. Are you covered for hurricane-related damage to your property? If a hurricane happens to you, will your existing insurance cover it?

Now is the time to find out – especially since most insurance policies require a 30-day waiting period before new coverage for hurricane or flood damage goes into effect. (No insurer will write a new policy when a named storm is on its way, either.)

After 2004, the year that Hurricanes Charley, Frances and Jeanne slammed Central Florida (and Ivan devastated other parts of the state), hurricane insurance became more expensive, more complex and harder to obtain.

The Legislature stepped in and created the Hurricane Insurance Affordability and Availability Act. This gives Florida homeowners a wider choice of deductibles to help them control their coverage costs.

Following that lousy 2004 hurricane season, the legislature stepped in with another change. Some homeowners, who suffered damage from more than one storm, were expected to pony up more than one deductible! Now they’re liable for only one deductible per calendar year for hurricane claims.

Here are a few of the questions you should ask when choosing homeowners insurance coverage to protect you from financial losses:

1. What is wind damage, and is it covered by my homeowners policy?
2. Is all water damage covered?
3. Do I need to purchase separate flood insurance for my home?
4. Is mold damage following a hurricane covered?
5. Will my hurricane deductible be a percentage or a flat dollar amount?
6. Will this coverage pay the actual cost to repair or rebuild after hurricane damage?
7. Will it pay for me to live somewhere else if my home is uninhabitable for a period of time?
8. If yes, is that amount realistic, given the actual cost of hotels or rentals in my area?

After a hurricane, the last thing you need is to be hung out to dry financially because your homeowners policy didn’t cover what you thought it did. To avoid that, get help from an insurance agent to determine the homeowners insurance coverage you need and the options that work best for your home and your budget.

And remember, everyone’s situation is different. Homes are built from different materials, located in different places. The best hurricane insurance policy for your friend or relative might not be exactly what you need. Perhaps your home is older, or maybe sits in a low-lying area while yours is halfway up a hill. A newer roof can withstand high winds better than an old one can. There are many factors that make a difference in the hurricane coverage you need and its cost.

Find the help you need by sitting down with a Florida insurance agent who can help you determine your needs, answer your questions, offer advice, and shop around for the best policy for you.

Contact Insurance Land today for a no-cost review to make sure you have the hurricane coverage you need now. Because once that named storm is on its way to Florida, it’s too late.