Insurance to Value

Do You Have Enough Coverage to
Rebuild Your Home?

 

Imagine how devastating it would be to lose your home in a fire. Now imagine not being able to rebuild it completely because you didn’t have the correct amount of insurance.

 

Selecting the proper amount of coverage is the single most important decision you can make with your Homeowners policy. Without it, you may not have enough coverage to rebuild after a total loss. This is called “insurance to value.” Below are some explanations and tips to help you make the right choices for your needs — and remember, if you need help, we’re just a phone call away!

 

What is insurance to value?

Insurance to value is the relationship between the amount of coverage selected (typically listed as “Coverage A” or “Dwelling Coverage” on your policy declarations page) and the amount required to rebuild your home.  Insuring your home for anything less than 100% insurance to value could mean you wouldn’t have enough coverage to replace your home in the event of a total loss

 

Why is the cost to rebuild different from the market value?

A home’s market value reflects current economic conditions, taxes, school districts, the value of the land and location, and other factors unrelated to construction cost.  The cost to rebuild your home is based only on the cost of materials and labor in your area.  It is important that you insure your home based on its reconstruction cost, NOT its current market value

 

Why is reconstruction more expensive than new construction?

New-home builders typically build many homes at once, and solicit bids from various sub-contractors to receive the best pricing. Their business model is based on economies of scale. For example, they may purchase 20 bathtubs at once, securing a lower unit cost. These economies of scale don’t exist when building a single home.

 

How can I make sure I have the correct amount of insurance?

Work with your agent to provide detailed information at time of purchase to be sure that you receive a thorough and accurate quote.

Ask us about additional coverage options that may be available.

Review your insurance to value calculation on a regular basis with your agent.

Tell your agent about any changes or improvements that you make to your home.

IT’S NEVER BEEN EASIER: CHOOSE A SAFE

Selecting a safer new vehicle is a lot easier than it used to be. Most new cars, minivans, pickup trucks and SUVs earn high marks in front and side crash tests conducted by the Insurance Institute for Highway Safety (IIHS) and the National Highway Traffic Safety Administration (NHTSA). Some models still need improvement when it comes to protecting people in rollovers and rear crashes. So how is a safety-conscious buyer to choose?

According to the IIHS and NHTSA, whether you are in the market for a new or used vehicle, here are some important things to consider:

• Vehicle size and weight matter

Smaller, lighter vehicles generally offer less protection than larger, heavier ones. There is less structure to absorb crash energy, so deaths and injuries are more likely. People in lighter vehicles also experience higher crash forces when struck by heavier vehicles. If safety is a major consideration, pass up very small, light vehicles.

• A crashworthy design reduces death and injury risk

Structure and restraints help determine crashworthiness. Good structure means a strong occupant compartment, crumple zones to absorb the force of a serious crash, side structure to manage the force of a striking vehicle or struck object and a strong roof that won’t collapse in a rollover. Safety belts keep people in their seats and spread crash forces across the upper body’s stronger bony parts. Airbags protect people from hitting things inside the vehicle or objects outside it.

To get safety ratings on a variety of makes and models, please go to iihs.org/ratings.

The Insurance Institute for Highway Safety (IIHS) is an independent, nonprofit scientific and educational organization dedicated to reducing the losses — deaths, injuries and property damage — from crashes on the nation’s roads.

Winter Storms

Winter Storms Ahead:
Are You Ready?

 

We admit it: As insurance pros, our picture of winter isn’t exactly cozy. Winter storms mean traffic snarls, hillsides turning to sheets of ice, and cars sliding around like hockey pucks. Cold temperatures can cause pipes to burst, frost swells and other damage. Heating your home with fireplaces and holiday lighting can increase the risk of fire.

 

A picture-perfect winter requires a few precautions

Here are a few of our top tips to help reduce weather-related hassles this winter.

 

Winter-proof your car with good snow tires or chains, new wiper blades, antifreeze, and emergency road supplies.

 

Keep your attic cool to help prevent ice dams. Insulate the attic floor and make sure it is well-ventilated.

 

Do not overload circuits with holiday decorations.

 

When winter storms hit, be smart

If you do not have to drive, stay put. If you must drive, make sure you’ve winterized your car and have a full tank of gas.

 

When the air is cold, keep bath and kitchen cabinet doors open so warm air can circulate around pipes. If pipes do freeze, let them thaw normally—they’ll be less likely to burst.

 

And if the power is out, make sure you avoid leaving candles or fires burning unattended. If you use a portable generator, follow the instructions and do not use it indoors.

 

Know what your insurance covers

We want to help you rest easy.  You will be more relaxed when you know you have prepared your property to lessen the chance of winter storm damage. Your insurance policy covers repair or rebuilding costs. However, your deductible does apply. Check your policy to see what is covered and to confirm the deductible you have chosen.

 

If you have any questions at all about your coverage, call Mower Insurance at 715-723-5525 and we will help you review your options.

BOOST YOUR CREDIT SCORE AND LOWER YOUR CAR

Credit scores are an important measure of your financial health. It should be no surprise, then, that they are used to determine risk in everything from obtaining a mortgage to buying auto insurance.

In fact, improving your credit score is one of the best things you can do to lower your car insurance rate. Following are some ways to improve your credit scores:

Tread Carefully
Some credit cards routinely scan the items you buy and where you shop as part of their risk algorithms, with special attention to items that indicate future problems.

For example, you might want to think twice before buying retread tires, because it's likely to cost more in the long run and your credit card rates might go up and take those insurance fees with

them.
Due Dates
Ever wonder what the number one cause of high credit card fees and car insurance increases have in common? Late fees. Watch out for those due dates. Better yet, sign up for automatic payments to keep rates low and credit scores high.
Check Your Score
Verify the accuracy of information in your credit report at least once per year. Visit www.annualcreditreport.com, or call 877.322.8228. These are the only authorized sources under federal law.