Credit and your Insurance premiums

2008-11-04T13:11:00.000-08:00

In today's insurance market, you can not underestimate the effect your credit score has on your insurance rates. In Ohio, that is the state I know, almost all of the insurance companies base thier premiums, to some degree on credit. As an independent insurance agent, I also get to see how much credit is considered with some companies. Here are a few interesting facts about your credit score and your insurance:

I write for companies that give a 40% - 55% discount on the base premium for a very good credit score.
Insurance companies have decided to include credit since most rating is done on line and can be pulled into the factors to determine a rate.
Different insurance comapnies look at credit differently, some weigh it as the number one factor and some only take it into consideration.
For youthful drivers, because the parent has good credit, could save you $1000's each year because of the credit score.
Insurance rating systems do not pull a "credit score" it is the insurance score and insurance history can influence the score as well.
The insurance score does not show as a hit on your credit report like shoppping for an auto loan will.
Never let you insurance lapse, even if you are canceling to buy another policy, this shows as a non-paid bill on your credit report.

I hope you find this information useful. Most consumers I speak with do not realize this is a part of their final premium rate for their auto and homeowners insurance. If you would like to know more about me or the agency I am with, go to www.mma4.net, or e-mail me at alicek@mma4.net. Thank you.

WHAT YOU NEED TO KNOW ABOUT YOUR HOMEOWNERS POLICY

2008-10-28T14:29:00.001-07:00

WHAT YOU NEED TO KNOW ABOUT YOUR HOMEOWNERS POLICY

By Alice Kramer, Insurance Agent

As a rule, the basic homeowner’s policy is the same wherever you go; the changes lie in the companies that write the policy. Most policies are “all risk” as opposed to “named peril”, and this is an important distinction. Along with all risk policies, there is coverage built into the policy for jewelry, furs, guns, collectibles money and securities. Additionally, water coverage is tightly defined in most policies and the general public, in my experience, is not aware of the differences. It is important to note, flooding is NEVER covered on a homeowners policy, no matter what. An insurance company, is obligated, to make you whole in the event of a loss, it is best to know what that means.

The homeowner’s policy in every state is basically the same, however the benefits are different with each company. An insurance company has the opportunity, in each state, to add or include whatever they are allowed, in their own policy. For example water and sewer back-up may be in the homeowners package for one company but not another. If your policy is a “named peril” policy, theft and vandalism are likely not covered. It is important to ask these questions. Also, most policies are written at “replacement cost”. Understand on older homes the replacement cost may be twice the market value because of plaster walls and hardwood floors. Have the discussion with your agent about how the replacement cost is determined, ask how your home would be replaced in the event of a fire. You may think the internet is a good place to get your insurance policy, I strongly encourage you to talk to you local independent agent about coverage.

The homeowner’s policy is very exact about personal property and types of water damage, here are a few simple items to help you understand. Personal property is written at replacement cost because of packages added to the policy, make certain possessions are covered at replacement value and not “actual cash value”. This is the difference in a new television or the value of the 10 year old television lost in the fire. The only water damage covered on a homeowners policy is a “spontaneous burst” in the pipes. If it is determined it is a maintenance issue, it isn’t covered. Water and sewer back-up, related to an electrical outage is covered, however if the motor wears out and you haven’t replaced it, this is not covered. Flooding is NEVER, EVER, covered on a homeowner’s policy. Not in anyway! Flooding is a separate policy that needs to be written.

The homeowner’s policy is designed to insure, most likely, your largest investment. If you have a loss related to a peril, it is the insurance company’s duty to make you whole, but that can only be done with the correct policy. To purchase the best policy for your home, talk to an independent insurance agent that has access to several companies for a comparison of companies and coverages. You will be surprised at the differences. Learn the limits and don’t automatically think that insurance will cover it, because if the policy is not written with the coverage needed, you will find out at the worst possible time.

Alice Kramer is a licensed insurance agent with Mark Matthews and Associates in Pickerington, Ohio. Alice specializes in property and casualty insurance. Mark Matthews and Associates is a full service independent insurance agency, striving to provide excellent customer service. If you have questions, or want to learn more, please contact Alice at alicek@mma4.net, or visit out web site at www.mma4.net.

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Credit and your Insurance premiums

WHAT YOU NEED TO KNOW ABOUT YOUR HOMEOWNERS POLICY