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 For example, if a home has outdated features, it may not be worth as much as a newer home.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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3 Ways to Show You Care

Valentine’s Day is the perfect holiday to show your loved ones how much you care. This year, don’t just get flowers and chocolates. One gift that can truly last is insurance. It may not be as romantic as a dozen roses, but it can provide protection for life. 

  1. Protect Your Valuables

Home is where you usually feel safest and where you keep your most prized possessions. Whether you’re a homeowner or a renter, both insurance lines offer personal property coverage. Personal property coverage covers personal belongings inside a home in the event of damages or theft that may not be covered under a general Homeowners or Renters Insurance line. 

Personal property coverage can provide a sense of security and help in recuperating valuables. Reach out to your local OKFB Agent and see if the jewelry you have or are planning to give for Valentine’s Day is covered.

  1. Travel With Confidence

Planning a weekend getaway for the weekend of love? Whether you’re fishing at the lake, racing ATVs or cruising Route 66 in an RV, one way to protect your loved ones from the unexpected is with Recreational Insurance. We offer a wide range of coverage options that could help you when making new memories wherever your travels take you. 

  1. Support Your Employees

The COVID-19 pandemic has shown us that small businesses have to expect the unexpected and adapt quickly. Many Oklahoma businesses have suffered from lost revenue, staffing shortages or have had to close their doors completely. One way to show you care for your employees is to give the gift of insurance. Our fully-customizable Business Owners Insurance includes Loss of Income coverage that could help cover a loss of net income due to suspension of operations and help pay for continuing payroll expenses. 

BONUS – How We Care: Drive with Peace of Mind

One auto-related gift to offer a loved one, and no, we’re not talking about buying a car, is Roadside Rescue. As an OKFB member or policyholder, we give you the gift of Roadside Rescue. This is a free service that provides 24/7 assistance wherever you or your loved one is nationwide. Enjoy the gift of traveling with confidence and peace of mind wherever and whenever this Valentine’s Day.

Insurance coverage is a great way to show you care and to provide loved ones with protection and safety. Reach out to your local OKFB Insurance agent if you have questions about your existing plan or purchasing a new one. We’re here to help!

Top Insurance Questions Answered by Insurance Agents – Part 2

Insurance helps to ensure that your assets are covered from a range of incidents. To help you feel confident when shopping for insurance we have answered five common insurance questions our agents commonly receive.

1. Are home-based businesses covered under a homeowners policy?

A homeowners policy protects homes from unexpected incidents and damage. However, it can be difficult to know what exactly a homeowner’s policy will cover for a home-based business. For example, unlike a homeowners policy, a small business insurance policy would cover the inventory stored in a home, a vehicle that is used for business, etc.

2. Does my homeowners policy cover damage if my tree falls on my neighbors’ property because of a tornado or ice storm?

Typically, if a tree or part of it from your property falls on your neighbors’ property and causes damage because of a tornado or ice storm, you will not be held liable. Your neighbors would file a claim with their insurance company. Our claims reporting hotline is available 24/7 and is ready to help whenever you need.

3. When should I get Life Insurance?

Did you know obtaining Life Insurance while you’re young and healthy is usually the most optimal time to obtain it? This is the period of time where an individual will most likely benefit from lower rates. Use our life insurance calculator to determine how much Life Insurance coverage may be needed. Obtaining Life Insurance as soon as you are able is beneficial in the long-run. It can provide peace of mind when thinking about loved ones.

4. Does Auto Insurance cover a hit-and-run accident?

In most cases an Auto Insurance policy will cover vehicle damage, possible medical bills, etc. in the case that a car accident occurs and the individual at fault intentionally leaves without providing contact information.

5. What do I need to do to file an insurance claim? 

Don’t delay taking action after an event that damages your property if you suspect it may make you eligible to file a claim. Start by contacting your agent, or using your carrier’s online claims tool – we have several claims options to choose from. Make sure to have your contact information, policy number and detailed information of the incident ready when you file. 

If you have additional insurance questions, check out our FAQs. Also, you can always contact your local OKFB agent with any inquiries or questions about your policy or specific coverage needs.

Keeping Your Home Protected, Inside and Out

Whether you’re a new homeowner or are looking to protect additional items, you need a policy that covers your needs. Understanding what a basic homeowners policy does and does not include is important. That way, you know what additional coverage you should consider. Keep reading for tips and tricks on how to find the right fit for protecting your home, inside and out. 

What’s the difference between Homeowners Insurance and Personal Property Insurance? 

In areas where your homeowners policy may be lacking, additional personal property coverage can help ensure your high-dollar valuables are protected. 

Homeowners Insurance will cover various items inside and outside of your home. However, there are limitations to what items and under what circumstances they will be covered. This is where personal property coverage comes in handy. It protects personal belongings inside your home in the event of damages or theft. This includes specific, high-value items, like jewelry, firearms, furs, collectibles, silverware, gold, musical instruments and more. 

For what situations should I consider additional insurance beyond my homeowners policy?

  • Home-based businesses. If your business inventory got ruined or a customer fell in your home, your standard homeowners policy might not cover it. Be sure to talk to your agent about commercial coverage to keep your work and clients safe.
  • Outbuildings. The tree house you built for your kids or the shed you have for more storage are typically limited in standard home coverage. Check with your agent to see if you should get additional structure coverage to have your hard work and personal items protected. 

How do I ensure my home is protected in case of Earthquake and/or Flood?

You may assume you’re covered under your standard homeowners policy from these natural events, but that might not be the case. In reality, these natural disasters require their own policy additions. If you live in a flood or earthquake prone area, talk to your agent about these other insurance options. 

A good Home Insurance Policy coupled with the right amount of additional coverage can help ensure your home and valuable assets stay protected through the ups and downs. Contact an agent today to see how much coverage you may need.