How important are insurance reports?

There are several different reports insurance carriers will run before thy will insure you. There are credit reports, claims history reports, payment history reports, violations reports. Home and Auto insurance carriers will both utilize these reports. This is the part where your history will affect your rates!

Can I Lie About My Driving History?

You can try, but it won't work. All carriers run your history reports before (or sometimes after) they write your policy. Most run the reports before they will bind the policy. Your reports largely determine your rates so they can be very significant in your pricing.

The CLUE report provides a 7 year history of claims associated with the driver/car. It will show the date of the loss, the type of loss, the amount paid out and the driver and car associated with the claim. Your agent can send you your CLUE report and you can dispute any claims that are on your report in error. 

The Motor Vehicle Report (MVR) provides your driving history, your drivers license history (including suspension or cancellations), your traffic violations/citations and DUI convictions. The time frame of the MVR varies by state. 

Why Home Insurance Reports?

Home insurance claims are filed less frequently than auto claims of course. They will be different than the auto reports, but what they are looking at is the same;  your claims history. 


Catastrophe claims shouldn't affect your rates too much. These include tornadoes, hurricanes, hail storms. The industry decides if it is a CAT claim once the estimated claims from the "storm" reach a certain amount. 
Water Claims will affect your rates due to the price of repairs. It does not take long for water to cause expensive damage.
Liability claims will affect your rates. It shows a concerning lack of safety and upkeep at your home. 
Negligence claims will cost you , you may have a hard time finding a carrier who will insure you at all. And again, you can lie or not disclose, but the carrier will run reports and the claims (and their circumstances) will be found. 
Frequent claims filing will cost you in premium and by minimizing the number of carriers who will insure you. If you believe a claim should be filed, wait! Call out a certified contractor and get estimates! If you file a claim and it turns out the repairs will cost less than your deductible, the carrier will NOT pay out the claim. But you will still have the claim in your history. 

Why Do Carriers Use These Reports?

Home and Auto insurance carriers use these reports to decide how great the risk is to insure you.  The greater the risk (bad history), the higher the rates. So a clean driving or claims history will earn you better rates. Most carriers will look back 5 years. 

Your claims history is very important to your rates. You can lie all you want. We have had people tell us they have not had any claims and then we find out they do. "Oh I forgot about that" seems to be the common retort.  The reports will show your history, whether you have revealed it yourself or not and it will affect your rates. So be honest with your carrier for consistent rates. Carriers rate claims and violations differently, so where one carrier may choose to not insure you, another carrier may have decent rates for you. So don't lose heart and decide insurance is a luxury you cannot afford!

Have questions? Need a quote?    

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Do claims affect my premium?

   Do you get frustrated by increasing insurance rates? The truth is, costs increase each year. And insurance is included.
   Texas is the most volatile weather state in our country. We have hurricanes, hail storms, thunder storms, snow, flooding and even an occasional earthquake! Most states have one, maybe two, of these types of weather. But things are always bigger in Texas, so we have all of them. This volatile weather leads to the number one reason for insurance rate increases; Claims.
   "But I didn't file a claim!" you cry in frustration on the phone to your agent. To which your agent may reply, "But your neighbors did." And then you shake your head and think to yourself (or out loud), "So I have to pay for their claims?" Yes, yes you do.

        Why do I have to pay more?

   Insurance companies are not repairing your damages for free. They are in it to make money (like every other company out there). Insurance is big business. And like every other type of company, if a carrier has more expenses (usually claims expenses) than they budgeted for, they will have to raise their rates to cover those expenses. So if there are major hail storms in January, chances are many carriers are going to have to raise rates to pay for those claims by year's end. So even if you didn't file a claim, but others did in your area, the carrier will most likely raise premium for everyone in the area to cover costs.

I hear the carriers try to keep from paying out claims.

   Most of the carriers I have seen do try to take care of the customer in a fair and appropriate manner. Of course "fair and appropriate" means different things to different people. But what you might keep in mind is that the insurance carrier is the one taking the risk. If you had to pay someone $500,000, wouldn't you make pretty darn sure they are eligible recieve the money? I know would!
   Whether it is $5,000 or $500,000, there are rules and guidelines to paying out claims. These are supposed to guide the carriers in evaluating what claims to pay and to what extent. There are some carriers who are being sued in a class action lawsuit by the state for not paying out eligible claims. So we know there are watchdogs out there looking out for the consumer. If you have a carrier who did not take care of you for an eligible claim, I am very sorry. And I urge you to call the Texas Department of Insurance (TDI) at 1-800-252-3439 and report them or file a complaint online. Make sure the company takes care of you!

Wrap Up

   * So my point here is that claims are the #1 reason premiums are increasing almost every year. There is no way around that. All insurance carriers are not evil any more than all consumers are scam artists.
   You can counteract increases by shopping around. (Another good reason to go with an independent agency!) When it is renewal time, we can re-shop the client if the premium has increased quite a bit. We don't guarantee a lower rate, but at least we can see if we can find something better for them. In today's world, there are many options available to you!

Have questions? Need a quote?    

* Call us  877-987-8683  

* Visit brockmanpremierins.com

Do Home Inspections matter?

Do Not Ignore the Inspection!

There are two common types of home inspections. 

Presale Inspection: You should have one done before you buy a home. Do not let someone talk you out of this. They may "know" the home is in great condition, but you want to make sure it is. You should get the inspector yourself so you know they are working for you and not your realtor. Nothing against realtors, but their motivation is to get you to buy the house. Your motivation is to buy a home in good condition. I strongly urge you to go to the presale inspection and walk with the inspector. Listen to him/her. Ask questions as he/she walks. This is going to be your home. Make sure you know what you are getting into. Maybe you are a Do-It-Yourself kind of homeowner and you are looking forward to doing some repairs. Great! But if you are not, then it is a nightmare to buy a house and realize (after the closing) that there is major repair work to be done. There are some things you absolutely want to know about before you buy the house! The carrier doesn't want to insure a hazard they will most likely have to pay to repair/replace in the next few years. And you (as the homeowner) do not want to buy a house that will not protect you the way your home should.

Carrier Inspection: Most carriers will conduct a home inspection. They usually employ a third part inspection company to complete the inspection.  It is the carrier who will pay out the claims, so they want to make sure it is a good risk going in. One of the most common issues on a carrier inspection is roof condition. Often we get an Underwriting notice citing the roof condition from the inspection. When we reach out to the client, they tell us their home inspection said the roof was just fine. Many times the presale inspection didn't say the roof was fine. It might have said replacement was a good idea but the client didn't walk and talk to the inspector so they didn't read the inspection. Even if the presale inspection does say the roof is in fine condition, the carrier's inspection may disagree. Now, you can argue all you want, but the carrier can still cancel the policy if you do not make repairs. 

The best way to avoid a bad carrier inspection is to make sure you have a good presale inspection!

Things to Look for during a PreSale Home Inspection

Exterior of the Home

Windows: Depending on the age of the windows, you may need to replace them. At the very least, they need to be caulked once a year to keep them energy efficient.  
Tree Trimming: Tree limbs hitting the roof or side of the house will need to be trimmed back away from the house. If they are hitting the home, they will cause additional wear on the roof/siding. 
Termites: Hollowed or Damaged Wood. Wood damage can be found below and behind surfaces like walls, floors and windows.

Interior of the Home

Heating/Air: Filters need to be change twice a year. If they have not been, the buildup in the filters will make the system very inefficient, particularly for people with allergies. In some cases, the system will need to be replaced.
Water Heater: Most hot water heaters need to be replaced after 15 years. If your hot water heater breaks down, it is expensive and a royal pain to replace. 
Ventilation / Insulation: Ventilation and Insulation matter most in the attic. If either are in poor condition, you will have increased energy bills and possible increased damage to your roof (from the inside)

Roof: Carriers (and hopefully you!) would require the condition of the roof to last at least 5 years. With all of the wind/hail/storms we have here is Texas, roofs rarely last longer than 10 years. If you are looking at a house with a roof over 10 years old, it is a strong possibility the inspector will inspect the roof closely, looking for any indication the roof will not last. And many carriers will not insure a roof over 10 years old.
Electrical: Older homes may have quite a bit of electrical work to replace. Many carriers will not insure homes with fuse boxes so you may have to replace it with an updated breaker box. 

Presale Home Inspections look for issues that can be improved.  Carriers Inspections look for hazards that are more likely to cause a claim pay out  in the near future. They do not want to intentionally take on that risk. Since they are the ones that will pay out thousands or more, the carrier gets to decide if they want to take on the risk. You, as the homeowner, can disagree. But you will most likely NOT change their mind. So again, intentionally look at your home inspection before you buy the home.

Have questions? Need a quote?    

* Call us  877-987-8683  * Visit brockmanpremierins.com

Motorcycle Insurance Basics

Insurance Basics- Motorcycle Insurance  

Have you tried to read your insurance policy and just given up? Even your motorcycle policy can be very confusing! Let me make it a little easier for you with the coverage basics.

Every policy (regardless of type) should have a Declarations Page, commonly referred to as the “Dec Page”. This page “declares” who you are, what property you have insured, your coverage choices and how much you are paying for this policy period.

Similar to Auto insurance, there are 2 types of coverage on your Motorcycle insurance policy; Coverage that protects the other party and coverage that protects you.

COVERAGE THAT PROTECTS THE OTHER PARTY

Bodily Injury Liability: This protects you from having to pay medical costs, lost income and funeral expenses of other people involved in an accident that is your fault.

Property Damage Liability: This protects you from paying for the repair or replacement of the other person’s property.

There is no deductible for liability coverage. You have many amount options for this coverage. The state minimum in Texas is $30,000/$60,000/$30,000. This means you are covered for $30,000 per person/$60,000 per accident and $30,000 for property damage. I would suggest going with higher liability limits than the state minimum. If you cause an accident and the liability claim is 75,000, if you have state minimum coverage, you will pay the additional $15,000 out of pocket! It is not expensive to increase your liability limits. Ask your agent to explain your options.

COVERAGE THAT PROTECTS YOU:

Uninsured/Underinsured Bodily Injury: This covers your injuries (or death) in case the responsible party has little or no insurance. It also covers anyone riding on your motorcycle.

Uninsured/Underinsured Damage: This covers damage to your motorcycle or property in case the responsible party has little or no insurance.  There is a state mandated $250 deductible in Texas for Uninsured/Underinsured motorist coverage.

Medical payments: This covers medical or funeral expenses if you or anyone on your motorcycle is injured in an accident.

Personal Injury payments: This covers medical or funeral expenses and possible lost wages if you or anyone riding on your motorcycle are injured in an accident.

Collision Coverage: This pays for damage to your motorcycle if you hit another car/motorcycle or something else (like a tree or a building).  You must pay a deductible. Deductible amounts determine the cost of this coverage. The higher the deductible, the lower the premium.

Comprehensive Coverage:  This pays for damage to your motorcycle if something other than a collision occurs. This could be fire, theft, hit by an animal (yes, the animal hit your motorcycle!) The same type of deductible rules apply to Comprehensive as they do to Collision. They are two different deductibles though. Comp coverage may also be listed as  Other than Collision.

Optional Coverages that protect your motorcycle:

            Towing: This pays for towing and some basic roadside assistance, depending on the carrier and towing option you choose.

            Trip Interruption: This pays for lodging, alternative transportation and food while the motorcycle is being repaired in the event of a breakdown or covered loss that is more than 100 miles from home.

            Rental Reimbursement: This pays for the cost of renting a car while yours is being repaired after an accident.

            Loan/Lease Gap Insurance: This pays the difference between what you owe and the total value of your motorcycle if it is totaled in a claim. 

            Accessory Coverage: This covers customer parts and equipment. You must have Collision and/or Comprehensive coverage as well.

             

While there are many factors in Motorcycle insurance, they do not have to overwhelm you. If you have any questions, please contact your agent. That is what they are there for. If they cannot answer your questions, please contact us. 

Have other questions? Need a quote?

    * Call us  877-987-8683  

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Dog Bite Liability

The Dog Days of Insurance

"What do you mean, they won't insure me because of my dog?" 
We hear this one often. "It's my dog. I take care of him/her. 
What business is it of the carrier? "

Why does my insurance carrier care what type of dog I have?

Dog Bites

Dog bites are why your carrier cares and why they get to decide what breeds they will/will not insure. 

These statistics might surprise you:
* Over 17,000 people were bitten by dogs in the US last year.
* The average cost per claim is $39,017.
* There were 39 dog bite fatalities in the US in 2017.
* Dog bites and other dog-related injuries accounted for more than 1/3 of all homeowners insurance liability claim dollars in 2018,  $675 million.   (Insurance information Institute)

Some dog breeds are considers higher risk dogs, such as Pit bulls and Rottweilers. This doesn't mean all Pit Bulls and Rottweilers are aggressive, risky dogs. But statistics show they are more likely to be aggressive than other breeds. Most Home insurance carriers have a list of "Aggressive" breeds they will not insure. Some carriers will not insure the home at all if there is an ineligible dog breed living in the residence. Others will exclude Liability on the dog. So if the dog bites someone, the carrier will not cover any of the claim payout. Most of us don't believe our dog could bite someone. And chances are your dog won't. But these are dogs and they are never fully rational or tame. So you need to plan accordingly and so do the carriers.

Personal Experience

Years ago, our next door neighbor had a Great Dane, Duke. Duke was an awesome dog. He got out one time and I went to pick him up for my neighbor. He walked straight up to me and laid his head on my shoulder. (Yes he was that tall and I am that short!) My point is, he was the sweetest dog. A gentle giant. One day their ten year old son was playing video games with a friend. The friend leaned down in front of Duke and Duke bit him. The child's head fit all the way in Duke's mouth. There were bite marks on his face and on the back of his head. The insurance carrier immediately put $100,000 in claims reserves in case the child needed surgery. The child didn't require surgery and the bites were taken care of with a few stitches and glue. Now the child is fine- no permanent damage, thank God. And we found out a little later than he had been taunting Duke by taking his chew toy away from him. The lesson here is that even the sweetest dog will defend himself (and his toys!). You never know what might set a dog off.  The Doctors said he had to be a very gentle dog who was not trying to hurt the child because a dog that size could have easily killed the child had he intended to hurt him.  It didn't cost our neighbors any money because they had the right coverage. But they had to get rid of Duke which broke all of our hearts. 

The Dog Owner is Responsible

As the home and dog owner, you are responsible. You can also be brought up on civil and criminal charges if your dog attacks someone and you are found to be liable.
If you look at the medical and court costs, the carrier can payout out thousands of dollars for a single claim. Be sure to let your insurance agent know about your dog. You want the dog listed on your policy so if there is ever a claim, you will be covered. Now if you have an "ineligible" dog breed, you may not be able to get liability coverage for your dog. But there are different options you should be able to discuss with your agent.

And that is why your carrier cares what type of dog you have.

Have more questions or want a quote?

* Visit brockmanpremierins.com

* Call us at 877-987-8683