Is My Home Underinsured?

How do you know if your home is underinsured? In this blog post, we touch on some common signs that may indicate a need for increased Home Insurance coverage. Whether you just bought your first home or you’ve been a homeowner for years, keep reading to learn more!

How to Determine if Your Home is Underinsured

One of the most obvious signs that a home may be underinsured is if current coverage couldn’t cover the cost to rebuild if it was severely damaged. For example, if there was a major storm or fire. This is a major indication that you may need to review your policy and talk to an insurance agent to determine the best plan for your situation. 

There are other less obvious signs to keep in mind. For example, if a home has outdated features, it may not be worth as much as a newer home. This means that a homeowners insurance policy may not cover as much in the event of a claim. Additionally, consider increasing your coverage if you have expensive belongings to ensure they’re protected in case of damage or theft.

What Type of Coverage is Available?

The first step is to understand the different types of coverage available. There are a few types of coverage that homeowners should become familiar with: Cash Value coverage and Replacement Cost coverage.

Cash Value coverage is based on a home’s current condition and provides reimbursements for its monetary worth. Depreciation can happen over time, especially pertaining to older homes. It’s important to consider whether or not a home can be fully rebuilt based on today’s cost estimate, instead of the initial price when it was originally built.

Replacement Cost coverage is another type of coverage that homeowners can purchase. This type of coverage will provide a reimbursement for the cost of rebuilding a home using the same type of materials. This policy could require enough coverage to restore a home to new, so it’s important to consider how much it would actually cost, as opposed to covering market value. For example, the price of a home today may not be at the same rate as the rebuild.

Currently, there are issues surrounding the pandemic that may have led to the adjustment or change in the costs of goods and services across Oklahoma. Consider taking some time with your insurance agent to review your insurance policies to discuss if your coverage may be impacted. They can help you assess your home’s value and ensure you have the proper coverage.

If you have any other questions about insurance, connect with us today. We are happy to help you find the coverage that best meets your home, auto, commercial and life insurance needs.  

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Top Insurance Questions Answered by Insurance Agents – Part 3

Insurance can be confusing and that’s why some of our agents took the time to answer a few of the most frequently asked questions. If you have any other questions or need additional clarification, please do not hesitate to reach out and contact your local OKFB agent today!

What is Insurance?

Insurance is a contract between you and a provider. You pay your premiums (typically monthly or annually) and an insurance company agrees to pay for your covered losses. It can help protect you from the financial consequences of unexpected events, such as car accidents, fires, or theft.

What Does Homeowners Insurance Cover?

Homeowners Insurance can help protect your home and possessions from damage or loss due to covered perils. This can include fire, windstorm, hail, water damage and theft. It also offers personal liability coverage. It can also help financially protect you if you are sued for causing property damage or someone is severely injured at your home.

What Does It Not Cover?

Every home policy is unique to each individual, location, cost of a home, and past credit history. To cover other aspects, you may need extended coverage. Have an open conversation with your agent about which parts of your policy may need to be expanded (i.e. by-laws, earthquakes, floods, etc.). However, typical wear and tear is not covered and should be maintained over time.

What Does Auto Insurance Cover?

Auto coverage can help financially protect you if you are in covered accident. It may cover damage to a car, as well as potential medical expenses and property damage incurred by you or other people involved in the accident.

Does a Small Business Need Insurance?

A business that is run through your home by one or two people might not need workers’ compensation insurance, but it could need more coverage than your average homeowner’s policy. Make sure to double-check your home liability and property policy to see whether you are financially covered. Be sure to stay in touch with your OKFB agent about your business coverage needs.

What is the Difference Between Term Life and Whole Life Insurance?

Term life insurance provides coverage for a specific period of time, such as 20 years. Whole life insurance provides coverage for your entire life. Term life typically has lower premiums than whole life, but it does not build cash value. Whole life typically has higher premiums than term life policies, but it builds cash value over time.

We hope you found these questions and answers helpful! If you have any other questions, please do not hesitate to connect with us. We would be happy to help you find the coverage that best meets your home, auto, commercial, and life insurance needs.  

Don’t forget to follow us on social media! This kind of information and more is just a click away. You can find us on Facebook, Instagram, and LinkedIn.

Quiz: How Well Do You Know Your Insurance Policy?

Are you familiar with your Oklahoma Farm Bureau Insurance policy?

“Yeah, I practically have it memorized!”

“…well, kinda.”

 

Answer the following questions to test your OKFB insurance policy knowledge. The prize for a perfect score? Major bragging rights. (Scroll down to see the answers!) If your score isn’t what you expected and you have some questions, don’t worry! Your OKFB agent will be happy to answer any questions you have – no matter how big or how small. We’re here for you.

  1. What is “umbrella coverage”?
    a. Coverage that only goes into effect during inclement weather
    b. Coverage that provides higher limits of protection
    c. Coverage that protects your umbrella against damage and/or theft
  2. Which of the following is NOT considered a ‘dwelling?’
    a. A home
    b. A mobile home
    c. Any shop that sells food or drink items
  3. If you want to contact your local agent, what do you do?
    a. Visit the Find An Agent page on the OKFB website
    b. Holler real loud
    c. Call the operator
  4. What is a CD?
    a. One of those tiny records kids are listening to these days
    b. Celine Dion’s initials, of course
    c. A certificate of deposit – a low-risk money management tool that provides you with a fixed interest rate
  5. Can a jet ski be placed on a boat insurance policy?
    a. Yes
    b. No
    c. Yes, but only if it’s really cool
  6. I’m building a home. Can I insure a home that’s under construction at any time throughout the construction process?
    a. Yes, as long it doesn’t have more than 5 bedrooms
    b. No, the policy must be put into effect before construction of the home begins above ground level
    c. Maybe. Your contractor will decide
  7. How many Oklahoma counties have OKFB Insurance offices?
    a. 5
    b. All 77
    c. 56
  8. What animals can be insured on the 4H/FFA policy?
    a. All animals, excluding dolphins
    b. Any animal that walks on 4 legs is eligible
    c. Show animals belonging to club members of the insured 4H or FFA club
  9. Does General Liability cover me if my employees are injured?
    a. No, you will need a Workers Compensation policy to cover your employees
    b. Yes.
    c. Only if you’re at fault
  10. Are my farm employees allowed to drive my insured farm automobiles?
    a. Only if they drive under 10 miles per hour
    b. Yes, if their driving record is acceptable
    c. Yes, but off-road vehicles are excluded

 

ANSWERS

  1. What is “umbrella coverage” anyway?
    Answer: B. Umbrella coverage provides higher limits of protection against bodily injury or property damage claims by a third party.
  2. Which of the following is NOT considered a ‘dwelling?’
    Answer: C. A dwelling is a house, apartment or other place where you live.
  3. If you want to contact your local agent, what do you do?
    Answer: A. Visit the Find An Agent page on the OKFB website.
  4. What is a CD?
    Answer: C. A certificate of deposit – a low-risk money management tool that provides you with a fixed interest rate. When you deposit your money into the account, you agree not to make any withdrawals for a certain period of time. At the end of that time, you get your money plus whatever was earned in interest back.
  5. Can a jet ski be placed on a boat insurance policy?
    Answer: A. Yes. Boat Insurance options and features include:
    Liability
    Medical payments
    Physical damage
    Ask your OKFB agent about insuring your jet skis on a Boat Insurance policy.
  6. I’m building a custom home. Can I insure my home at any time throughout the construction process?
    Answer: B. No, the policy must be put into effect before construction of the building begins above ground level. If you’re a builder, check out available coverage options for builders.
  7. How many Oklahoma counties have OKFB offices?
    Answer: B. You can find OKFB agents in all 77 Oklahoma counties. Use the Find An Agent tool to locate an agent in your area.
  8. What animals can be insured on the 4H/FFA policy?
    Answer: C. You may insure show animals belonging to club members of the insured 4H or FFA club. Raising a lamb, pig or other farm animal for 4-H or FFA club exhibitions or contests requires skill, hard work and lots of dedication. Consider insuring your animals with 4-H and FFA insurance from a company that understands the effort you put into your show animals.
  9. Does General Liability cover me if my employees are injured?
    Answer: A. You will need a Workers Compensation policy to cover your employees. If you don’t know what kind, or how much coverage you need, contact your OKFB agent. We’re happy to help!
  10. Are my farm employees allowed to drive my insured farm automobiles?
    Answer: B. Yes, farm employees may drive your insured farm automobiles if their driving record is acceptable. You can easily provide their driver’s license information to your OKFB agent to add them as approved drivers.

 

 

4 Changes That Affect Life Insurance

If you’re like most, your world can change very quickly. Growing up can lead to major life events, and you’ll want to have the right policy to match. Whether you already have coverage or are thinking about getting it, check out these four life changes that could impact how much coverage is needed. 

Marriage/Divorce

Getting married is exciting, but it can also prompt changes to a your policy. For example, you may decide to designate your spouse as the beneficiary. Having Life Insurance in place is a way to economically protect each other’s future. Additionally, going through a divorce can be a difficult time and can also prompt changes. You might consider changing the beneficiary on the policy or designating the policy to cover child support payments.

Children

As a family grows, there are many changes that could affect a Life Insurance policy. Consider adjusting the policy to pay for daycare, save for college or other child care expenses. Updating or obtaining Life Insurance when having children could ensure your family has the resources to maintain a home, costs of child care, schooling and more. Additionally, if your child is now an adult and financially independent, a reduction in coverage may be possible.

Mortgage 

Paying off a mortgage can lead to a decrease in living costs and thus may reduce the amount of Life Insurance needed. Alternatively, a higher mortgage on a new home could mean an increase in the policy is needed. Adjusting this coverage can ensure your family has financial help to maintain mortgage payments should you no longer be able to provide your source of income due to death.

New Job/Promotion

A new job or promotion could mean an increase in salary. You may want to reevaluate Life Insurance coverage to ensure your family can afford the lifestyle they’ve become accustomed to. If you were depending on a policy through a former employer, you may be able to keep that plan or replace it with one from a new workplace.

If you have Life Insurance or are thinking about obtaining it, contact an OKFB agent to talk through options. Our Life Insurance calculator can be a great tool to help understand the amount of coverage that is right for you! Remember, Life Insurance is about ensuring your loved ones are financially secure.