Whose Insurance Does What during "DELAYED POSSESSION"?

Got this great question from Jennifer Allan, author of Sell With Soul today and thought the answer might be helpful.

Hey Dennis...

What's the deal when a home sells and closes, but there's a delayed possession - that is - the seller retains possession of the property for a few days past closing to move out?

If there's damage... which homeowners policy pays? The buyer's (who owns the property, but hasn't yet taken possession) or the seller's (who no longer owns the property)?

J

WOW! Great questions, Jennifer.

Homeowners insurance for the buyer goes into force to close escrow. After the closing, the BUYER owns and insures the house. Should there be damage to the home, it would fall on the BUYER'S insurance to cover the loss. The new owner would be responsible to pay the deductible. (there could be some stipulations in the RENT BACK AGREEMENT about that, but without some agreement to the contrary, that's how it would likely settle out.)

Loss to any contents of the SELLER (those items remaining while they move out) could be covered one of two ways.

1. Using the homeowners insurance for THEIR (the sellers) new home
2. Using Renters Insurance if they're moving to a rental

Most insurance companies offer at least 30 days of "EITHER PLACE" coverage. In other words, their stuff can be covered by their existing policy for up to 30 days in the old OR the new location. So if they're moving to another home, they will have homeowners insurance in place on that new home. If they're moving to a rental, they need to roll their old homeowners insurance over to RENTERS INSURANCE for the new residence at the close of escrow, In either case, the EITHER PLACE coverage still applies using the new insurance policies to cover their contents during moving.

If you have any questions, please call, write, email, signal flags, or smoke signals.... :)

p.s. My insurance company, which is available nationwide, offers additional location coverage without a time limit. In other words, your stuff is covered anywhere in the world -- PERIOD. Doesn't matter if you're moving, storing, vacationing, or stocking your Ski Chalet in Switzerland.

Point here being that not all insurance companies handle this situation exactly the same. Check with your local insurance professional to be sure.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:mailto:Dennis@DennisVolz.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

I've had a FIRE! What do I do now?

Fire can be one of the most traumatic and devastating losses anyone can experience.

If you've had a fire and there were injuries or a death, my sincere condolences. If you've experienced just loss to property, please take a moment to be thankful that there we no injuries or death.

You're probably still in shock that this has happened to you and bewildered by the seemingly endless task ahead of you. This is going to be a ONE DAY AT A TIME process. If you can settle into that thinking, this will be much easier. Every day that you make progress toward rebuilding your life is a WIN. Ask yourself at the start of each day, "What does WIN THE DAY look like TODAY?" Make a VERY SHORT list of a few things that will get you to that WIN THE DAY feeling and be happy with that.

FIRST THINGS FIRST
If your loss is a severe one (a total loss or one where SUBSTANTIAL work is required to get you back into your home) then you need to first think about some long-term living arrangements.

This should be your first priority. You might be put up with friends or in a hotel at first and you may need to get some basic items like clothing, personal items (toothbrush, etc) but don't get involved with any other stuff until you're settled into where you're going to live.
Your insurance company should be very generous here. You can usually rent a place similar to yours at their expense. They won't pay you any extra though.

For example, if you were renting a house or apartment, you won't be required to pay rent while you're out of your home, so you'll just be paying rent someplace else. The insurance company might make up the difference if there's nothing available similar to yours. The goal is to keep your monthly expense about the same.

If you owned a house, you'll still be responsible for your mortgage so the insurance company should pick up the entire cost of renting another place.

Just rent some furniture for now and then SLOWLY, replace it with items you purchase along the way. You'll have plenty of time to shop for furniture once the contractor gets busy rebuilding your home.

OK. So now you have a "home base" from which to rebuild your life. Its important to have this so you can focus on gathering, replacing, purchasing the things, memories and items necessary for daily living.

DON'T BE TOO HASTY TO "HIRE" THE SERVICES of a 'PUBLIC ADJUSTER'. This is someone who will show up EARLY. (like while the fire department is putting the hoses back on their truck) They will tell you that they will do all the negotiating with the "big bad" insurance company for you for a small fee. SAY NO FOR NOW.... (you can always go to them later and their "small fee" is THOUSANDS of dollars....) You're better of without them.

Your claim adjuster is going to be your new best friend. That's an important mind-set to adopt. Look to him as a source of information, encouragement and ideas to get the most out of your insurance policy. The company I'm with (and most companies) will look for ways to BE ABLE TO PAY YOU rather than looking for ways to get out of paying you. Remember, losses are calculated into what they charge and a good claim experience and positive results serve them much better than saving a couple thousand dollars by nickel and diming you to death.

GET ORGANIZED
TAKE NOTES. You should pick up a 3-ring binder w/ some paper. You might want to get some tabbed pages to keep track of THINGS TO DO, NOTES ON CALLS, CONTACT INFORMATION, etc. Remember think MARATHON not SPRINT. You're going to need a central location (the notebook and maybe a small file box) to keep track of your information.

They're going to start by giving you an overview of the entire process. There will be a contractor to find, plans to draw up, lists to create, receipts to keep, and plans to make. Take good notes and remember to keep thinking 'just one day at a time.'
KEEP YOUR PERSPECTIVE AND HAVE FUN! Yeah, I know that sounds a little off. But this is such a once-in-a-lifetime opportunity. You get to start all over. Fresh! New!

Make a decision to enjoy this process -- This curve ball that life has thrown your way. If you're married you can play 'newlyweds' all over again. If you're single you can make a substantial change in your lifestyle, your look, anything you want.

Decide to be BETTER not bitter because of it.

Yes.... Make a conscious decision that this is probably one of the most exciting adventures you'll ever have. Get just a few things and relish in how simple life can be. You'll "clutter back up" soon enough so just enjoy the spartan simplicity.

Buy a different brand of underwear, splurge on some really plush socks, or get a pair of just THE COOLEST JEANS EVER! Try out new ways of cooking with new dishes. Get back to enjoying the simple things in life. You'll be a bigger and better person because of it.

Don't forget to let your friends help you. You'll deepen your relationships and forge new friendships along the way. Just let it all happen.

THOUGHTS ON REBUILDING
There's way too many variations and possibilities to go into within the scope of this blog. But here's a few things to think about as you begin to work with your adjuster and contractor.

1. The insurance company will generally pay to build the house just like the one you lost but YOU DON'T HAVE TO BUILD IT THE SAME WAY. If you've always wanted a big picture window on the west side... then GET ONE!
   
2. Take your time with your architect or making your own sketches of how you want your house rebuilt. You might even be able to change the "footprint" of the slab (the basic shape and orientation of the house) One of my clients who lost their home in the San Diego fires of 2003 had always lamented that the side of the house with the best view had just one little tiny window. Well.... They fixed that w/ 4 huge picture windows and instead of having the bathroom there, it was their den and fireplace area. Turned out BEAUTIFULLY!
   
3. Have a plan to refurnish your home. Just slowly replace your rented furniture with your new stuff as the "building the home" process unfolds.

The process of rebuilding your home can be the most challenging event you've ever experienced. It can also (at the same time) be the most rewarding and life-changing! After all, if you can survive this, sitting in traffic or having to replace your refrigerator just won't phase you any more.

Contact me if you have any questions.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

A word about DEDUCTIBLES...

Simply stated: A deductible is the amount that you pay toward a loss or claim before the insurance company begins to pay. The higher your deductible, the lower your premium.

• The more you are willing to participate in your loss, the greater the savings on your premium.

The insurance company will offer your a lower premium if you take a higher deductible because your LOSS FREQUENCY and your LOSS SEVERITY will be lower. Consider if you have a $2000 deductible instead of a $500 deductible:

1. You'll make fewer claims because you won't be making claims for $600, $900 or $1995 losses. You'll simply pay those yourself. (FREQUENCY)
2. When you do submit a claim the insurance company will be paying $1500 LESS than if you had the $500 deductible. (SEVERITY)

There is no "correct" deductible to choose. It depends on what I like to call your personal LOSS THRESHOLD. So before we get too far ahead, lets take a moment to diagnose your "loss threshold."

Lets say you go out and buy a $3 picture to hang in your bathroom. Are you going to insure it? Of course not! Now you go out and buy a famous $252,000 masterpiece painting. Are you going to insure it? Unless you are a multi-millionaire, you certainly will. Somewhere in between the $3 print and the $252,000 masterpiece is your loss threshold. Your loss threshold is the amount of money you can stand to lose without doing any great harm to your daily lifestyle or your peace-of-mind. In the above example, different people will have different thresholds. There is no right or wrong answer here!

ANOTHER SIMPLE CALCULATION....

OK. Let's say you're ok with a loss threshold of $1000 or less. Now you can choose between a $1000 deductible or a $500 deductible. Here's all you have to do.

1. Find the premium difference between the two.
2. Let's say you save $80 a year in premium to take the $1000 deductible.
   
3. Now look at the DIFFERENCE between the 2 deductibles which is $500. It would take you over 6 years ($80/yr x 6 years = $480 ) to save the DIFFERENCE between the deductibles.
   
4. Now you simply ask yourself, "Do I think I'll have more than 1 claim in the next 6 years?"
   
5. If the answer is yes, you should probably take the lower ($500) deductible.
   
6. If the answer is no, then the higher deductible ($1000) probably makes more sense.

If you're still confused by this, just give me a call and I'll walk you through it....

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

One Picture is Worth a THOU$AND DOLLAR$

Yes, I know a picture is worth a thousand words, but it could also be worth a thousand (or THOUSANDS OF) dollars!

I can't tell you the number of times in my 30+ year career in the insurance business that I've listened to a distraught policyholder after a loss struggle to remember everything that was stolen or lost in a fire. Many times I'll get a call many months after the loss because the client just discovered that, "They got my Grandma's silver too. We didn't realize it until we were setting the table for Thanksgiving dinner."

The whole process wouldn't probably take you more than an hour. Just walk around your house and take pictures of everything you own. Well, you don't need to document your underwear drawer, but take pictures of almost everything else. Here's a short list to get you started...

(remember the purpose of the pictures is twofold:
a. To help you remember every thing you have.
b. To document (i.e. prove) to the insurance company) that you really did own all this stuff!)

So here we go...

1. Take a panoramic shot of every room in the house. Some rooms may need pictures from several different angles to get it all in.
2. Then open your cabinets in your kitchen and get pictures of all your dishes, cookware, etc.
3. Take a look in all the drawers and take pictures of any unique items you may have.
4. Get a black cloth or towel and spread it out on your floor or bed. Lay out any special or expensive items such as Jewelry, Silver, furs, CD collections, collectables, baseball cards, plates, dolls, etc for better close ups.
5. While you're at it, take pictures in the garage: Tools, cars, contents of your cars, file cabinets, lawn mowers, etc.
6. Take a picture of your back yard patio furniture, tool shed, etc.
7. Open your closets and take pictures of your clothing. Reminds you of the amount and some of the pieces.
8. Take close-ups of all the pictures, art and decorative items hanging on your walls.
9. Take pictures of your cars: Inside and Out. All the way around

I think you get the idea.

Now.... here's the important part..... ! ! ! !

If these are digital pictures, put them onto your computer and make a couple copies onto some CD's. Take one to your office and give one to a friend or mail one to your Uncle in Toledo, but GET IT OUT OF YOUR HOUSE. Last thing you want is to remember that all your "pictures" burned up in the fire... :)

Make a reminder to at least consider updating the pictures once a year AND whenever you make a major purchase like stove, refrigerator, art pieces, jewelry, etc.

This will make your life SO MUCH EASIER if you ever have a loss.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

The Miracle of Renters Insurance

Here's the secret -- Your Landlord's Insurance DOES NOT cover ANY of your stuff. Not your TV, clothes, stereo, iPod, Laptop, dishes, furniture, NOTHING! Please read on and see how inexpensively you can protect your valuable possessions for just pennies a day.

OK ! I know you�re thinking �What could possibly be so MIRACULOUS about Renters Insurance?

Well�. Here�s the inside scoop !

Here�s a little overview�.
(All policies are slightly different. These are examples of what a typical policy might have.)

• It protects your stuff at home
• It protects your stuff on vacation
• It protects your stuff in the USA
• It protects stuff you may have in a storage facility
• It protects your stuff all over the world !
• Yes, that�s right� you lose your stuff ANYWHERE on the planet�you�re covered just as you are in your own backyard.
• It protects your CHECKS & CREDIT CARDS if they�re stolen
• It gives you Liability protection....that�s when you get sued
• It gives you protection for stuff you�d never imagine. Here�s just a few examples
• For example:
• Money, Bank Notes, Coins (including collections) up to $200
• Property used or intended to be used in business
• On premises up to $1,000
• Off premises up to $250
• Watercraft and equipment - up to $1,000
• Securities, Checks, Traveler�s Checks - up to $1,000
• Trailers (not used with watercraft) - up to $1,000
• Stamps, trading cards, comic books (including collections) up to $2,500
• Theft loss of:
• Jewelry and Furs - up to $1,000
• Firearms - up to $2,500
• Silverware and Goldware - up to $2,500
• Rugs, tapestry, wall hangings
• Per Item - up to $5,000
• Aggregate - up to $10,000
• Home Computers - up to $5,000

WOW, you say!
That�s quite a list.
Yes it is�and there�s MORE�Yes, there�s a LOT more�
But before we get to that � the WHAT and HOW TO BUY Renters Insurance,
let�s talk about the WHY!!
Why would anyone need renters insurance�.

The answer is simply this�
Because you�ve got LOTS OF STUFF ! !

�No I don�t,� you say�

Well, imagine, JUST FOR SECOND, if you would please�..

You�re sitting outside on a cool October night. You have a warm wool blanket wrapped around you and around you is the sound of people working, cleaning, the hum of a diesel engine. The blanket was given to you by a firefighter, the people working are firefighters , and the hum of the diesel engine is the fire truck that�s just dumped 30,000 gallons of water on your, now black and flattened residence.

You�re just a little freaked out but you�re ok. So is everyone else who was in the house with you. All that is ok, but EVERYTHING YOU OWN is toasted to a crispy black residue that�s still smoldering from the heat of the fire. It�s all gone: your entire wardrobe, TV and DVD player, stereo system, all the dishes in your kitchen, furniture, bed linins, towels, silverware, blender, your Xbox, your digital camera and last, but not least�. your treasured iPod.

Here�s a typical list of the average single-person household. If there�s 2 or 3 or more of you, it�s even higher

Personal Property Replacement Value

Furniture $ 8,907
TV, VCR, Stereo, Tapes, and CDs $1,777
Home Computer $1,647
Microwave $151
Other Appliances $240
Clothing $3,700
Paintings, Prints, Photos $792
Glassware, China, and Silverware $612
Sports Equipment $600
Cameras and Photographer�s Equipment $795
Books $704
Jewelry $1,023
All Other Property $4,000

TOTAL PERSONAL PROPERTY $24,948

You see, here�s the problem with all that STUFF�. You bought it just a little at a time. You know, a CD here, a blender there, a couple of jackets somewhere else. Then, before you know it, it�s all there cluttering up your drawers, your closet and every other space in your place.
I know�You�re probably thinking that RENTERS INSURANCE is really expensive. Well here are the facts�.

For just pocket change a day, RENTERS
INSURANCE can provide affordable basic
protection for your personal property,
AND
in case of a liability lawsuit.

�WHAT?!?!� you say. �Lawsuit ! !�
Yep, lawsuit. Could it happen to you? The answer is�

Of Course It Could ! !
But we�ll talk about that in a minute.

So�. For just about the cost of a DVD a month, you get protection for
ALL YOUR STUFF.

Protection for all your stuff ANYWHERE IN THE KNOWN UNIVERSE. Doesn�t matter if you�re in the good old US of A, Mexico, China or Australia�

If your stuff is stolen from your car,
IT�S COVERED!!!
There might be damage to your car though. THAT�S covered under your auto insurance. I�m sure you have car insurance !

Here�s all the kinds of things that your stuff could be covered for�

• Fire or lightning
• Weight of ice, snow or sleet
• Explosion
• Aircraft & vehicles
• Smoke
• Sudden and accidental tearing or bulging of heating or cooling systems
• Windstorm or hail
• Theft
• Riot or civil commotion
• Falling objects
• Vandalism or malicious mischief
• Sudden and accidental water discharge from plumbing or appliances
• Freezing of plumbing systems

So you can see that there�s coverage for many different circumstances. Realistically, the most likely ones you�ll need in your lifetime are FIRE, THEFT, SMOKE DAMAGE and maybe VANDALISM.

So for the price of a DVD A month you get all that�

And just like the TV commercials tell you�.
BUT WAIT ! ! ! ! THERE�S MORE!!!!!!!! (this WILL begin to sound like a Ginsu Knife Commercial!!!)

Remember we were talking about that LAWSUIT!?!?! Yes, it could happen to you and there�s ALSO coverage in your RENTERS INSURANCE for THAT !


Just this year a policyholder called me and told me that the tenant in their rental property was being sued because his girlfriend accidentally let his dog out of the back yard. The dog made a beeline across the street and kicked the stuffing out of the neighbor�s dog. The renter was being sued by the neighbor for veterinarian bills that exceeded $3000 and for mental anguish, stress, and� well, you know the drill. And yep, you guessed it� The tenant had NO RENTERS INSURANCE. And the LANDLORDS INSURANCE does not cover the tenant�s liability!!!! Here�s their problem�
The tenant will be paying off this �little problem� for years. He�s put both his current AND HIS FUTURE EARNINGS at risk by not having the foresight to get a little RENTERS INSURANCE policy.

For just pocket change a day, RENTERS INSURANCE can provide affordable basic protection for your personal property,
AND in case of a liability lawsuit.

Someone slips and falls in your place, breaks their leg, or cuts their hand.
(bummer if it�s a Plastic Surgeon)
Your policy will pay whatever you�re legally liable to pay. (up to the limit of the policy, of course) That�s why at least a $300,000 limit is important there (more if you live in California). Many offices will let you walk away with the standard $100,000. For just an extra $2/month, you get TRIPLE the coverage. Almost a crime not to take that.

BUT WAIT ! ! ! ! THERE�S EVEN MORE ! ! !
Medical Payment also pays for�. YOU GOT IT�. It pays for MEDICAL EXPENSES up to the limits of the policy for people who are on your premises with your permission and accidentally injured. And ALSO for people injured by your activities. Coverage doesn�t pay for medical expenses for you or members of your family that live with you.

BUT WAIT ! ! ! ! THERE�S MORE!!!!!!
You also get what�s called LOSS OF USE or ADDITIONAL LIVING EXPENSES coverage. Whenever your place is rendered UNINHABITABLE because of a covered loss, we�ll pay the cost to put you up someplace else while your place is being repaired. I�ve actually written checks to people sitting outside their burned residence to pay for a hotel. VERY COOL!!!!
This pays up to 24 MONTHS ! ! Hopefully you won�t be out that long, but it�s THERE IF YOU NEED IT ! ! ! !

BUT WAIT ! ! ! ! THERE�S SOME MORE!!!!!!! (see, I told you....)
You know how things just get more expensive every year. We�ll automatically increase the amount of your coverage every month FOR FREE until your next renewal to keep pace with inflation. When you renew your policy each year, it will be for the newer IMPROVED amount of coverage.


BUT WAIT ! ! ! ! THERE�S STILL MORE!!!!!!!!
I mentioned this up above but you might have missed it. If someone steals your checks or credit cards and you suffer loss cuz they�re out there spending YOUR MONEY, you�ll have coverage for that up to $1000.

�WOW�, you say!
And all for about the price of a DVD a month.
Hey, Let�s talk about Deductibles for a second�.
The deductible is the portion of a covered loss that is your responsibility. They are typically available in amounts such as $250, $500, $750, or $1000.
For example, if you had a $500 deductible, you would need to pay the first $500 of the covered loss and we�d pay the rest.
Generally speaking, higher deductibles lower your premium, but increase the amount you must pay out of your own pocket if a covered loss occurs. Ask yourself how much you are willing to pay in order to save on premium.

SO what�s the best way to buy this Miraculous RENTERS INSURANCE???

RULE #1 � Don�t over-insure and don�t under-insure. Get the right amount of coverage. Yes, you�ll have to estimate how much stuff you have.

RULE #2 � Take the biggest deductible you can afford. (within reason). What does THAT mean????? Well, don�t increase your deductible from say $500 to $1000 if is only saves you $13/year.

RULE #3 � Get at least $300,000 of liability coverage (especially if you live in CALIFORNIA!) People just love to sue in good old CaliforNyeYay.

RULE #4 � Only get policies with REPLACEMENT COST coverage. (all of the policies we offer in our agency have this provision.) This is a cool one. Provision sez that if you suffer loss to your stuff, and you replace it, we�ll pay you what it costs to get a brand new one rather than what your old one was worth.
Looks like this. Someone steals your 8 year old TV set that�s worth $75 and a new one is $350, we�ll pay you based on the $350 rather than the $75! VERY COOL!

RULE #5 � Take the PERSONAL LIABILITY option in the LIABILITY SECTION of your policy. That gives you coverage for things like slander and libel. Californian�s, for some crazy reason, get all bent out of shape if you talk to them or about them the wrong way.

RULE #6 � Don�t forget to check out things like Special insurance for your baseball card or Precious Moments collections. There�s limits on those kinds of things. You might also need to look into waterbed liability, or business liability (if you run any kind of business out of your home.) And don�t forget EARTHQUAKE coverage.
We�ll walk you thru a checklist of all those things just to make sure we don�t forget anything. You may not need any of them, but we just want to be sure.

This is so simple and easy to do.
We do all the work for you and in less than 30 minutes, you�ll have protected your stuff, your current assets and your future earnings.

Why somebody wouldn�t have RENTERS INSURANCE is simply beyond me.

So, here�s what you get�

Coverage for your stuff: TV, stereo, blender, dishes, clothes, etc.
Coverage at REPLACEMENT COST (as I explained above)
Liability Protection. (assets AND your future earnings)
A place to live while we put your place back together
We�ll walk you thru the whole process (probably will take less than 30 minutes)
Confidence that you're buying the insuance you need: NOTHING MORE, NOTHING LESS.

Yep, you guessed it�
All for about the price of a DVD A month�

No insurance product offers you more BANG FOR YOUR BUCK than simple, but oh so powerful RENTERS INSURANCE�.

It's a Good Life !

Dennis Volz Insurance Agency
10783 Jamacha Bl, Suite 1, Spring Valley, CA 91978
OFFICE: (619) 670-1000 - FAX: (619) 670-1121

eMail:Dennis@DennisVolzInsurance.com

Websites: Company Site: DennisVolzInsurance.com

Client Convenience Site: 6701000.com

My 'Other Blogs'
Working by Referral
Musings from California

This post contains only a general description of coverages and is not your insurance contract. Details of coverage or limits can vary. All coverages are determined by the terms, provisions, exclusions and conditions of your policy along with any endorsements.
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