ManagerJoe Kemp, CLF

Financial RepresentativeOffice:

Wood Village(503) 492-2228

• 11 Years Financial Planning Industry Experience

• Licensed Securities Representative

• Registered Principle

• Licensed Insurance professional

• Member NAIFA (National Association of Insurance and Financial advisors)

• Member GAMA (General Agency Managers Association)

• 2010 Regional Champion Agency Manager

• 2010 Agency of the Year

• 2010 Gama – Diamond International Management Award for excellence

Home Insurance and Your Home Insurance and Your Financial SecurityFinancial Security

Common Misconception’sCommon Misconception’s

• What my policy coversWhat my policy covers

Home Insurance Policy

We know this is not the caseWe know this is not the case

• What my policy isWhat my policy is

Everything is covered

Maintenance Policy

• Credit• Prior Claims (C.L.U.E. Reports) • Flood Zones• Distance to a Fire Department and Hydrant

•Fire Protection Class Code (From Fire Department)• Zip Code the Home is in• Age of the Home• Condition of the home• Solid Fuel Burning Units (wood stoves)• Alarm Discounts• Multi Policy Discounts• Deductible• Coverage selected

What can effect my insurance costs?

What are the Parts to a Home Insurance Policy

Liability (Bodily Injury, Property Damage and Medical Payments)

Dwelling Coverage Amount

Deductible

Perils Insured against

Additional Structures

Personal Property

Settlement Options

Loss of Use

Limitations

Exclusions

Discounts

Lets Start with LiabilityLets Start with Liability

Pop QuizPop QuizOne windy night your neighbors tree falls on your home causing massive damage. Can you go after his insurance?

Liability CoverageLiability Coverage

Personal Liability Personal Liability (Bodily Injury and Property Damage)(Bodily Injury and Property Damage)

• Coverage for you when you are on or off your premises and will cover you when you are legally responsible for an act that causes damage to someone else’s person or property• Covers cost of Defense if you are sued• Multiple Liability Limit Options = $50,000 to $1,000,000

Medical Payments LiabilityMedical Payments Liability• Covers medical expenses stemming from injuries that occur to others while they are on your premises regardless of fault• Multiple Medical Limits ($1000, $2000, $5000, $10,000, $25,000)

Extending Liability Extending Liability (not all companies allow this)(not all companies allow this)

• Allows you to extend the Liability coverage you have on your main home to other homes you own • Saves money as you don’t have to have liability on your rental insurance policy• Great for multi property owners

Liability Coverage (cont.)Liability Coverage (cont.)

Personal Injury Liability Personal Injury Liability (can be added to policy)(can be added to policy)

This endorsement provides liability coverage for personal injury from one or more of the following:

• false arrest, detention, imprisonment, or malicious prosecution, • libel, slander, defamation of character or a violation of a person’s right of privacy, or • wrongful entry, eviction, or the invasion of a person’s right to private occupancy

Business Related Liability Business Related Liability (limited exposures can be added)(limited exposures can be added)

• Not intended to be a business policy – can jeopardize coverage• Farming, Child Care, Wood Working, Barber or Beautician etc..

(check with your insurer)

Dwelling CoverageDwelling Coverage

DwellingDwelling• applies to the structure you inhabit. This would cover the dwelling, attached structures (garage, breezeway) and permanently installed property (wall to wall carpet, etc.)

How do you choose an amount?How do you choose an amount? • Don’t take this lightly• 2 out of every 3 homes are underinsured• Most Insurers cap coverage or provide an additional % (extended replacement)

• Trouble with Insuring to Market Value Article• Replacement cost calculators

**Additional Replacement Coverage****Additional Replacement Coverage**(Hard to find)(Hard to find)Pays full replacement cost of your home, even if the amount of loss is greater than the limits on your policy

Dwelling CoverageDwelling Coverage

Additional StructuresAdditional Structures

• Applies to other structures on your property, like tool shed, separate garage, green house, fencing etc.• 10% of what you insure the home for (can be increased if needed)

• Does not cover – Structures that are used in a business or farming etc.

What am I insured against?What am I insured against?

• You actually choose this coverage and it is called Peril coverage• Basic Form• Broad Form• Special Form Coverage (This is the premiere coverage)

Broad Form PerilsBroad Form Perils

Special Form PerilsSpecial Form Perils

Changes the policy language to:Changes the policy language to:

• Provides coverage for losses not specifically excluded in the policy• This is the premier coverage you should have

Normally Excluded Losses:Normally Excluded Losses:• Earthquake • Flood• Earth Movement• Sump Pump Failure• Sewer Backup• Seepage of water• Homes unoccupied for 60 days• Business related losses• Rule of thumb – It must be sudden and accidental

Additional Coverage'sAdditional Coverage's

Personal Property Personal Property

What's Covered:What's Covered:• The basic home insurance policy provides blanket coverage for personal property owned or used by the named insured and family members anywhere in the world.

• 10 percent of the amount (minimum of $1,000) to cover personal property located at another residence, like a seasonal dwelling. Does not apply to property in a rental dwelling.

Limit Varies by Company:Limit Varies by Company:

Usually 75% of what you insure the home for (200,000 home = 150,000 for the contents)

Limitations on Personal Property Limitations on Personal Property

How are claims settled on Dwelling How are claims settled on Dwelling and Personal Property and Personal Property

Again, you chooseAgain, you choose

Actual Cash Value:

• Pays Replacement cost minus Depreciation• This is one of the main causes of dissatisfaction when a claims are settled

Replacement Cost:• Pays cost of replacing the item at current market value

You get ACV until you actuallyreplace item (personal property)

Additional Types of Home policiesAdditional Types of Home policies

Condo’s:Condo’s:•Specifically designed to cover the interior of the home (“studs” in coverage)•Drywall, Light fixtures, cabinets, subfloor, carpet, railings, countertops, etc.

** LOSS ASSESSMENT**** LOSS ASSESSMENT**Condominium, townhouse and homeowner associations generally assess the unit owner for their share of any loss which isn’t fully covered by the association’s insurance policy, including liability and physical damage claims.

Additional Types of Home policiesAdditional Types of Home policies

Rental’s:Rental’s:•Insured like Owner Occupied•Does not provide personal property (some insurer’s provide up to $2500 to cover appliances)

•Home is limited to amount of coverage without extended % increase•Unlimited coverage not available•Most insurers only allow Broad form Peril coverage•Some property types need to go on a commercial policy (whole other animal)

What insurance is supposed to doWhat insurance is supposed to do

Take you from this

To this

What should you do?What should you do?Partner with your COUNTRY Financial Representative to review your current financial scenario.

Providing Financial Security since 1925