Earthquake insurance rates are determined differently by each insurance
company and pricing can vary widely depending on several important factors
about your home and where you live. For instance, wood homes usually
survive earthquakes better than brick and therefore receive lower rates than
brick homes. In addition, homes located in areas more prone to earthquakes
see that reflected in their earthquake insurance rates. We can help you
weigh the costs and benefits of this coverage before you decide to purchase.
In addition to typical general questions involving your name, address,
gender, date of birth, drivers license #, social security #, etc., you will be
asked a number of other questions which will be used to determine what
rates you will qualify for.
Questions for auto insurance will always include your age, gender, driving
experience, make and model information, and how you use your vehicle.
For example, an SUV costs more to repair or replace than a compact and
someone who drives 60 miles round trip each day for work is more likely
to be in an accident than someone who works from home and primarily
only drives on weekends.
By using an insurance agent directly to purchase insurance, the
policyholder receives more personal service. An experienced insurance
agent can be vital when purchasing a coverage and absolutely necessary
when filing an insurance claim. A local insurance agent is able to deliver
quality insurance and local professional, personalized service you can't
receive otherwise.
Most states have insurance laws that require drivers to have at least a
miniumum amount of auto liability insurance. These laws were enacted
to ensure that victims of auto accidents receive compensation for the
negligent actions of others.
The cost of repairing the damages to an older car is often greater than its
value. In this situation, your insurance company will usually "just write
off" or "total" the car and give you a check for the car's current market
value less the auto insurance deductible you have in force. We can help
you weigh the costs and benefits of owning physical damage coverage
for an older car.
Collision physical damage is defined as losses you incur when your car
hits another car or object. For example, if you hit a car in a parking lot or a
sign post backing up, the damages to your car will be paid under your
auto insurance collision coverage.
Other than collision or comprehensive physical damage covers most
other direct physical damage losses you could incur. For example,
damage to your car from a hailstorm or theft will be covered under your
auto insurance "other than collision" comprehensive coverage.
Type of car (make, model, year)
Primary uses of the car
Where is car garaged
Your driving record
Marital status (married people have less accidents)
The typical homeowners policy has two primary sections: Section I covers
the property (house, condo, etc.) of the insured and Section II provides
personal liability coverage for the insured. Nearly everyone who owns or
leases property needs this type of insurance. Unless you are putting down a
large percentage of the purchase price as a down payment, your mortgage
lender will require homeowners or mortgage protection insurance as a way
to better safeguard their loan.
One way to lower the cost of your homeowners insurance is to raise your
deductible. Increasing your deductible from 1% to 2% can lower your
premium by 5% - 10%.
You can also lower the cost of homeowners insurance by qualifying for
some of the discounts available. For example, an insurance company will
offer a discount for placing both your auto and homeowners insurance
with them. Other discounts available are for a home security system or
deadbolt exterior locks on all your doors. These options can reduce your
premium by up to another 5% to 12%.
Covered losses under a homeowners insurance policy can be paid on
either a replacement cost basis or on an actual cash value basis. When
"actual cash value" is used, the policy owner is entitled to the depreciated
value of the damaged property. Therefore, the older the item is, the less
money you may receive for it. If you choose the "replacement cost"
coverage, the homeowners insurance policy will reinburse the amount it
costs to replace the property with something of a similar type and quality
at current prices.
Proper insurance to value is one of the most important considerations in insuring
property. A review of the estimated replacement cost of your home should be
done yearly.
The minimum estimated replacement cost is usually based on:
* Local Labor* Local Material Costs
* Square Footage of Dwelling* Construction Type
* Heating & AC Systems* Additional Features/Enhancements
* Potential Debris Removal* Foundation Excavation & Replacement
* Architect Fees* Structural Engineering Fees
To rebuild a substantially damaged home is much more expensive than to build
new because debris must be removed before repairs can be made. Where as
in new construction there is no debris removal to consider. The cost to remove
debris is considered in the estimated replacement cost estimate because it is
covered under the dwelling limit on your homeowner's insurance policy.
Comparing estimated replacement cost to current local new construction costs
is not a good comparison either because new homebuilders typically are
building many homes at once, which allow economies of scale. They purchase
large quantities of materials giving them discounts and share labor on several
homes, which allow for lower labor costs per home.
Many compare the value of their home to the current market value, or what you
could sell your home for in the current real estate market. This is not an
accurate comparison because if your home is substantially damaged the
repairs will be made at current labor rates and materials costs including debris
removal. Market value is what you can purchase a used home at in the current
real estate market, which is not an indicator of cost of neither new construction
nor reconstruction.
Section I - Insurance coverage for your property
as follows in items A through D:
Coverage A - Dwelling - covers you dwelling (home), attached
structures, built in appliances and fixtures and permanently installed floor
covering. Most home insurance companies will require you insure your
home to the current estimated replacement cost of the home as calculated
by nationally recognized experts in this field.
Coverage B - Other Structures - covers other structures on you premises
not permanently attached to your dwelling such as a detached garage, dog
house, perimeter fence, storage building, etc.
Coverage C - Personal property - covers your personal property, (e.g.
furniture, CDs, stereo and clothes). You choose a dollar amount limit (what
you think your possessions are worth) when you purchase a homeowners
insurance policy.
Coverage D - Loss of use - covers the additional living expenses you incur
when your home can't be used due to an insured loss. This is usually a
percentage of the dwelling limit.
Section II - Personal liability coverage as follows in items E and F:
Coverage E - Personal Liability - covers your personal liability claims
and suits for bodily injury or property damage you are libel for due to
unintentional acts committed by you or qualified family members and your
pets (if not excluded). You choose this limit when you purchase the
homeowners insurance policy.

Coverage F - Medical payments - covers medical expenses for minor
injuries to others even if you were not at fault if they incur injuries on your
property. The policy normally includes limits of up to $5,000 per person.
The dwelling and other structures on the premises are protected on an
"all risks" basis up to the insurance policy limits. "All risks" means that
unless the insurance policy specifically excludes the manner in which
your home is damaged or destroyed, there is coverage. The policy limit
for other structures is usually equal to 10% of the policy limit for the
dwelling.
Losses to your personal property are covered on a "named perils" basis.
"Named perils" means that you have coverage only when your property is
damaged or destroyed in the manner described in the homeowners
insurance policy. The personal property policy contents limit on the
coverage is usually equal to 50% - 70% of the policy limit on the dwelling.
Limits on coverage for any additional expenses that the policy owner may
have when the home can't be used because of an insured loss is usually
20% of the insurance policy limit on the dwelling and often times higher.
The coverage limit on personal liability is determined by the policy owner
at the time the insurance policy is issued and we would typically
recommend a minimum of $300,000 or if you have a swimming pool a
minimum of $500,000. The coverage limit on medical payments to others
is usually set at $5,000 per injured person.
Typically an amount of life insurance equal to 6 - 8 times your annual
earnings. That is a long held suggested amount, but several life factors
should be taken into account when determining the adequate amount of
life insurance for you and your family.
* Marriage status: if married what is your spouse's earning capacity
* How many people are financially dependent upon you
* Income sources other than salary
* Death benefits payable from social security or from other life insurance
* Life insurance needs for mortgage, college fund, estate planning, etc.
It's most important that the primary wage earner be fully protected
through the purchase of an adequate amount of life insurance for your
family. In a dual-wage earning household, it's important to protect both
spouses.
A standard renters insurance policy protects your personal property in
many cases of theft or damage, and may pay for temporary living
expenses if your apartment or rented house is damaged significantly.
Having renters insurance can also shield you from personal liability. If you
live in an apartment or a rented house, renters insurance provides valued
coverage for both you and your possessions. Renters insurance provides
named perils coverage. This means that the policy only pays when your
property is damaged or destroyed by any of the ways noted in the renters
insurance policy. These usually include:
* Fire or lightning
* Windstorm or hail
* Explosions
* Riots
* Aircraft
* Vehicles
* Smoke
* Vandalism or malicious mischief
* Theft
* Falling objects
* Weight of ice, snow, or sleet
* Accidental discharge or overflow of water or steam
* Freezing
* Sudden and accidental damage from artificially generated electrical current
* Volcanic eruptions (but this doesn't include earthquake or tremors)
Unfortunately, in our all too litigious society, even individuals with modest
incomes and assets can be targets of large lawsuits. A single umbrella
insurance policy provides a higher personal liability insurance limit than
homeowner, auto, boat, motorcycle, and RV policies can offer.
ED MOORE
& Associates, Inc.
Always here when you need us. Protecting
hundreds of North Carolina families and businesses.
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As an independent insurance agency we work for you.
We find the best, most affordable insurance products
from our wide range of insurance carrier options.
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Whether you are searching for better commercial insurance
options or just starting your small business, we can help.
Ed Moore & Associates, Inc.
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Ed Moore & Associates, Inc.
103-B Kilmayne Drive
Cary, North Carolina 27511
Wake County, NC
Office: (919) 467-6339
Fax: (919) 467-6434