Insurance Is More Than A Warm Body Dishing Out Quotes!

Homeowners Insurance

Did you know that two out of every three homes in America are underinsured!

No one wants to discuss risk. Risk isn’t sexy. Price is sexy. I see it daily. Folks are mistakingly making price the sole focus of an insurance quote. If two out of every three homes in America are underinsured, where do you think you stand? Could it be that putting price first may have opened you up for financial destruction? 

Could your current policy sustain a major catastrophe?

Your home reflects the blood, sweat and tears you’ve shed to provide yourself and or your family a haven. I’m going to do my best to explain the foundational build blocks of a homeowners insurance policy. Understanding and crafting a Farmers homeowners insurance policy is where I excel. Looking forward to offering sound advice and guidance. If you’re looking for homeowner insurance in California… I’m confident I can help!

Property

Homeowners insurance covers various types of damage to your home and separate structures, like a detached garage, tool shed, and gazebo. Your basic policy will cover damage caused by things like wind, fire, and vandalism (subject to exclusions).It’s critical when purchasing coverage for the structure of your home, that buy enough coverage to rebuild your home.

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Pay attention to the wording “subject to exclusion”! For this particular reason, when shopping around, policies and pricing should not be compared apples to apples. Also, be aware that standard insurance policies do not cover flood, earthquake and routine wear and tear.

Content Replacement 

Off the top of your head, could you determine what all your personal possessions are worth? What’s that Sandy Koufax signed baseball worth that’s sitting in your home office? Do you know that value of the pearl necklace your mother wanted you to have? Content replacement is where you fall into gaps. You can’t customize your coverages properly without knowing what you possess. Shelly Elmblad, Financial Software Expert, has put together a list of the (7 Best Home Insurance Inventory Apps for iOS). Android users: click here.

Chose a Saturday or Sunday afternoon and make sure to do a home inventory. Any of these apps make the process MUCH easier. You will work from room to room, making a list, taking photos of what you have, and this will give you a better sense of the custom coverage that you need.

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Buy a policy that covers the replacement cost (new) of your personal belongings. Standard off-the-shelf policies may only cover cash value (used) which means you deal with deductions for depreciation. Also, remember coverage for high-end items like jewelry, furs, silverware, etc. are generally covered, but the basic coverage limits are not very high. Some policies will only cover $1,000- $2,000 total for jewelry and furs. Knowing the value of your possessions helps you properly cover your possessions.

Liability

Some insurance advisors consider liability protection one of the most important aspects of a homeowners policy.  The reason being: the liability portion of your policy will pay for the cost to defend you, AND any court appointed awards… BUT only up to the policies liability coverage limit.  If you didn’t purchase enough liability coverage, you would be stuck with the remainder of the costs, and that could lead to financial ruin. Can you now see why liability coverage is so important?
Let’s take a step back. Liability coverage protects against injuries, accidents, and damage that happens on your property OR ANYWHERE else.
Examples of possible claims:
An elderly woman is walking in your neighbored and is mowed down by your excitable family dog that accidentally gets off the leash. Woman is awarded a claim of $275,00.

You throw your 10-year old daughter a birthday bash and invite her best friends and family. One of the kids accidentally falls from the bouncy jump and breaks her arm. The parents want to sue to recover damages for neglect resulting in the accident.

It’s Halloween, and you decided to throw the Halloween Haunted House of the year. Little did you know an asthmatic girl would die from “artificial fog and sickly scents”.  The girls parents are now facing at least 1 million in medical bills.

Your neighbor asks you to watch her daughter because she’s forced to work overtime. Not a problem. The child gets hurt while she’s in your care.
You’re at your favorite golf course, you tee off, and your ball accidentally hits an innocent bystander in the face and brakes several of his facial bones. The man you hit happens to be a surgeon and is forced to be out of work for several months recovering.

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Don’t make the mistake of not buying enough liability coverage. Most folks take the off-the-shelf $100,000 of coverage and NEVER consider adding more coverage. Most financial and insurance advisors advocate a minimum of at least $300,000. You have no control if/when a lawsuit may strike. Also, if your net worth is more than $300,000 you MUST consider protecting your assets by adding an umbrella policy to your home and auto policies. The umbrella policy will kick in when the liability on the auto and home policies have been exhausted.

Medical Payments

Medical payments on your homeowners insurance kicks in when others are injured at your residence ( does not include residents of your household), regardless if you’re at fault or not.

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Most people you will invite to your home have health insurance. If they are seriously hurt, this is where the having liability insurance kicks in. We can get into more depth during the insurance review

Additional Living Expenses

Depending on the policy type you choose, additional living expenses are covered up to 24 months if you’re forced to live away from your home due to damage from a fire or other insured disaster.

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This coverage is extremely helpful! Additional living expenses have limits, be sure to ask what those limits are.

"Matthew... I'm Ready To Speak With An Insurance Advisor!"

"I have three homes with umbrella coverage with Farmers and for once I feel confident I'm in good hands with Matt as my insurance agent. "

~Gracie U.

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Contact Me


Matthew Dropulic
License #0125948

Matthew Dropulic Agency
1281 E La Habra Blvd STE 1
La Habra, CA 90631

626-445-7091

Mon-Friday: 9:00AM- 6:00PM
Sat: 10AM-2:00pm
*by appointment only

California Department of Insurance