Edited by author on 6/15/2011:

For whatever reason, this post has been the most popular of all my blogs. Here is my quick synopsis of basic, broad and special form coverage for those who come here via internet search:

Basic coverage, sometimes referred to a HO-A, is the most stripped down version of homeowner insurance coverage available. It includes coverage against damage from windstorm, hurricane and hail in addition to other named perils.

Broad coverage, sometimes called HO-B, takes the basic coverage and adds a few insured perils.

Special form, sometimes called HO-C, is the most comprehensive form and usually includes an open peril coverage, which means coverage is included for everything. UNLESS IT IS SPECIFICALLY EXCLUDED.

I hope this added information is helpful. However, my advice for all insurance consumers is summed up as thus: DO NOT DO IT YOURSELF. There is too much at risk to not know with certainty that you are covered. And trust me when I tell you that coverage varies widely, nearly on a house to house basis. Find an independent insurance agent in your community. Email or call me if you are confused. I am always eager to help. Give me a chance to show you!

END OF AUTHOR’S EDITS

In Texas, Homeowner insurance is limited in several ways. Your policy should have A, B, C, D, E and F limits. Has anyone ever explained to you what that means?

A – The limit of insurance on your physical home – The cost to replace and/or rebuild your home due to catastrophic loss
B – The limit of insurance on “other structures” – Usually includes sheds and other buildings but if you have an unattached garage, this is part of that limit
C – The limit on personal property – Basically everything from the studs in is included in this number, furniture, fixtures and clothing. It seems like a lot of money but you’ll burn through this money fast when you start to think about buying new clothes and furniture, appliances, etc. And you better hope that you have “Replacement Cost” coverage. Because if you don’t you’ll be getting $80 for the $1500 couch you bought 10 years ago.
D – Loss of use – The limit of what will be paid if you are unable to live in your house
E – Personal Liability – Did you know the average liability claim in Harris County, after jury trial, is $270,000?
F – Medical Payments – A coverage that can be used if you are not liable but still want to rectify the damaged parties.

Confusing, isn’t it? Has your agent ever explained this process to you? I bought insurance from different agents for 5 years and never understood any of this until I became an agent myself. I hope you’ll consider how much is at stake the next time you think about insurance because it’s a lot more than saving $100 here and there.

And furthermore, that doesn’t even scratch the surface of whether or not you have a broad form or special form coverage. It can be confusing. Don’t do it yourself, get an agent involved. DO IT!

Call or email if you would like to know more!

Warner Phelps
Your Independent Insurance Agent
281-450-6774
www.warnerphelps.net

Please remember that if you or your friends ever need any assistance with insurance related questions, I am here to help.

Which got me thinking..I wonder if anyone out there is prepared?

National Hurricane Center has some good advice here. I’ve attempted to summarize below.

 
“Preventing the loss of life and minimizing the damage to property from hurricanes are responsibilities that are shared by all.”

Disaster Prevention should include:

• Developing a Family Plan
• Creating a Disaster Supply Kit
• Having a Place to Go
• Securing your Home
• Having a Pet Plan

One of the most important decisions you will have to make is “Should I Evacuate?”

If you are asked to evacuate, you should do so without delay. But unless you live in a coastal or low-lying area, an area that floods frequently, or in manufactured housing, it is unlikely that emergency managers will ask you to evacuate. That means that it is important for you and your family to HAVE A PLAN that makes you as safe as possible in your home.

Disaster prevention includes modifying your home to strengthen it against storms so that you can be as safe as possible. It also includes having the supplies on hand to weather the storm. The suggestions provided here are only guides. You should use common sense in your disaster prevention.

• DEVELOP A FAMILY PLAN - Your family’s plan should be based on your vulnerability to the Hurricane Hazards. You should keep a written plan and share your plan with other friends or family.
• CREATE A DISASTER SUPPLY KIT - There are certain items you need to have regardless of where you ride out a hurricane. The disaster supply kit is a useful tool when you evacuate as well as making you as safe as possible in your home.
• SECURE YOUR HOME - There are things that you can do to make your home more secure and able to withstand stronger storms.
• ONLINE VULNERABILITY INFO - There are web sites that can give you information about your communities vulnerability to specific hazards. These include hurricanes as well as other weather related hazards.

Here is a quick list of what to get together if a storm is coming, courtesy of NOAA:

Water - at least 1 gallon daily per person for 3 to 7 days

Food - at least enough for 3 to 7 days
— non-perishable packaged or canned food / juices
— foods for infants or the elderly
— snack foods
— non-electric can opener
— cooking tools / fuel
— paper plates / plastic utensils

Blankets / Pillows, etc.

Clothing - seasonal / rain gear/ sturdy shoes

First Aid Kit / Medicines / Prescription Drugs

Special Items - for babies and the elderly

Toiletries / Hygiene items / Moisture wipes

Flashlight / Batteries

Radio - Battery operated and NOAA weather radio

Telephones - Fully charged cell phone with extra battery and a traditional (not cordless) telephone set

Cash (with some small bills) and Credit Cards - Banks and ATMs may not be available for extended periods

Keys

Toys, Books and Games

Important documents - in a waterproof container or watertight resealable plastic bag
— insurance, medical records, bank account numbers, Social Security card, etc.

Tools - keep a set with you during the storm

Vehicle fuel tanks filled

Pet care items
— proper identification / immunization records / medications
— ample supply of food and water
— a carrier or cage
— muzzle and leash

—Tobie Stanger

Where is the coverage for liability arising out of serving alcohol in a social setting, including the liability imposed on social hosts by the Dram Shop Act? There is no liquor liability exclusion in the Texas or ISO homeowners policies. What about the intentional acts exclusion? The exclusion precludes coverage for BI or PD which is “caused intentionally by or at the direction of the insured” (Texas form) or “expected or intended by an insured” (ISO form). Texas courts have consistently ruled that this exclusion is effect-focused and not cause-focused, voiding coverage only when the resulting injury was intentional, not merely when the insured’s conduct was intentional.

What about a lawsuit involving an auto accident caused by an intoxicated guest after leaving the party? The auto exclusion on the Texas homeowners policy only applies to autos owned or operated by or rented or loaned to an insured, so the policy would defend the insured if he or she were sued by a third party for a liquor-related auto accident. The auto exclusion on the ISO homeowners policy is more restrictive and would not apply in the same case. Coverage may be available in the Texas or ISO personal auto policy. The PAP covers an insured’s liability arising out of an auto accident involving a nonowned auto – even if the auto is operated by someone else – subject to certain exclusions not relevant in this case.

The previous information was authored by David Surles of IIAT. Shared here for client and potential client information

It isn’t that I love talking to people about life insurance. It’s quite the opposite. The reason I continue to bring up the subject of life insurance with clients and potential clients is that there is an overabundance of bad information about life insurance.

The problem: The sage advice of “Buy term and invest the difference” has been around for much longer than most know. Dave Ramsey did not invent it. But what is the best method and what actually happens are two completely different things. I can tell you with 100% certainty that whole life insurance is the only investment that some people make. Because if they keep their term insurance for 20 years and then outlive it, but never took the time to ‘invest the difference’, what are they left with? Nothing.

I don’t categorically recommend whole life for everyone. I have clients who have whole, term and a combination of both. It depends on who you are, what your financial strategies are and how disciplined you are. Not everyone is as disciplined as they should be.

The solution: Get to know your independent insurance agent and discuss life insurance with them. A personal relationship with a competent financial and insurance advisor is and always will be the key to financial success!

For whatever reason, this post has been the most popular of all my blogs. Here is my quick synopsis of basic, broad and special form coverage for those who come here via internet search:

Basic coverage, sometimes referred to a HO-A, is the most stripped down version of homeowner insurance coverage available. It includes coverage against damage from windstorm, hurricane and hail in addition to other named perils.

Broad coverage, sometimes called HO-B, takes the basic coverage and adds a few insured perils.

Special form, sometimes called HO-C, is the most comprehensive form and usually includes an open peril coverage, which means coverage is included for everything. UNLESS IT IS SPECIFICALLY EXCLUDED.

I hope this added information is helpful. However, my advice for all insurance consumers is summed up as thus: DO NOT DO IT YOURSELF. There is too much at risk to not know with certainty that you are covered. And trust me when I tell you that coverage varies widely, nearly on a house to house basis. Find an independent insurance agent in your community. Email or call me if you are confused. I am always eager to help. Give me a chance to show you!

END OF AUTHOR’S EDITS

In Texas, Homeowner insurance is limited in several ways. Your policy should have A, B, C, D, E and F limits. Has anyone ever explained to you what that means?

A – The limit of insurance on your physical home – The cost to replace and/or rebuild your home due to catastrophic loss
B – The limit of insurance on “other structures” – Usually includes sheds and other buildings but if you have an unattached garage, this is part of that limit
C – The limit on personal property – Basically everything from the studs in is included in this number, furniture, fixtures and clothing. It seems like a lot of money but you’ll burn through this money fast when you start to think about buying new clothes and furniture, appliances, etc. And you better hope that you have “Replacement Cost” coverage. Because if you don’t you’ll be getting $80 for the $1500 couch you bought 10 years ago.
D – Loss of use – The limit of what will be paid if you are unable to live in your house
E – Personal Liability – Did you know the average liability claim in Harris County, after jury trial, is $270,000?
F – Medical Payments – A coverage that can be used if you are not liable but still want to rectify the damaged parties.

Confusing, isn’t it? Has your agent ever explained this process to you? I bought insurance from different agents for 5 years and never understood any of this until I became an agent myself. I hope you’ll consider how much is at stake the next time you think about insurance because it’s a lot more than saving $100 here and there.

And furthermore, that doesn’t even scratch the surface of whether or not you have a broad form or special form coverage. It can be confusing. Don’t do it yourself, get an agent involved. DO IT!

Call or email if you would like to know more!

Warner Phelps
Your Independent Insurance Agent
281-796-9798
www.warnerphelps.net

Please remember that if you or your friends ever need any assistance with insurance related questions, I am here to help.

How do I know? Because I used to believe the exact same thing. “It’s just insurance”, I would tell myself. “You gotta shop around every couple of years to keep those dudes honest”. That’s another gem from the Warner Phelps vault of insurance misinformation.

The truth is that your insurance coverage is complex and even after almost 3 years in the insurance business, I still learn something new every day. There is so much going on behind the scenes that the typical consumer would never know, much less understand.

For that reason alone, I advocate always using an insurance agent you believe, like and trust. I’m not the only one. There are many more out there. I may not even be the best fit for you. But I will tell you that and I will give you honest and free advice regarding your insurance coverage. At the irreducible minimum, you’re at least able to have someone confirm what you think you know. Can’t beat that!

Call me..Warner Phelps…281 796 9798.

The presenter was a highly qualified attorney talking about different ways to use life insurance as trusts. Because, under current laws, any amount of money paid upon death by life insurance is NOT subject to income tax. Even in cases of payments as low as $50,000, that makes a REALLY big difference.  Having to pay income tax on the proceeds can mean the difference between a family funeral and a pauper’s burial.  And for that matter, having NO life insurance can really magnify that problem.

This presenter was very informed and well educated. I think he had 8 different sets of “letters” after his name. But he was speaking a language of law and idiomatic expressions that confused even me. And I do this kind of stuff for a living!

The part where the clouds opened up and I saw the light: There is a lot of bad information out there regarding life insurance and there is a lot of confusing terminology and insurance jargon and legalese.  It’s kind of like this clip from one of my favorite tv shows ever.

The reality is that everyone needs a professional who approaches them where they are and explains insurance to them in a language they understand. That’s where Warner Phelps, Your Independent Insurance Agent comes in! I’d love to speak with you or your friends about any life insurance questions you have and answer them in a way that leaves you feeling like you actually understand the answer.

The answer is that it depends. It always depends on what coverage you have and if you don’t know, you need to have an agent who does know.

There are many different ways a policy can be written in Texas and some policies may exclude damages like a frozen pipe. This is when it’s good to have an independent insurance agent who reviews your coverage every year and keeps an eye out for problems like this.

Here is some additional information from the IIAT:

Frozen Pipes and Resulting Water Damage
David Surles, IIAT Insurance Agency

The freezing temperatures last week affected the entire state – from Brownsville to Dalhart – but the unusually low temperatures in some areas caused water to freeze in unprotected pipes. The frozen water expanded pipes to the breaking point, resulting in the sudden release of water when the temperatures warmed up. This will be a significant loss event for Texas insurers, with damages in the hundreds of millions of dollars. The losses will include the costs to access and then repair or replace broken plumbing, in addition to damage to buildings and personal property caused by the water. Is it all covered? If the policy covers freezing, the cost to access and repair or replace the plumbing will generally be covered. If the policy covers water damage, the water damage losses will be covered. As usual, however, actual coverage depends on what kind of policy the insured has purchased and how insurers interpret certain causes of loss and exclusions. We’ll take a quick look at covered causes of loss on different policies first, and then look at some exclusions that may be troublesome.

Commercial Property Policies. The ISO commercial property program includes three causes of loss forms – Basic, Broad and Special. The insured may purchase one cause of loss form on building items (such as the special form) and a different form on the personal property (such as the basic or broad form). Basic form: no coverage for water damage or freezing. Broad form: covers water damage but not freezing. Special form: covers open causes of loss (“risks of direct physical loss”), including freezing and water damage.

Residential Property Policies. Texas HO-A: No coverage for water damage or freezing. Texas HO-A with enhancing endorsement (HO-470T or equivalent): covers freezing and water damage (unless the origination point for the break is below the surface of the ground or within or below the slab or foundation). All other Texas and ISO forms: cover freezing and water damage.

Troublesome Exclusions. All of the policies that cover freezing and/or water damage contain exclusions that may be trouble for some policyholders, depending on the insurer’s interpretation of these exclusions. Changes in or extremes of temperature: The exclusion for “changes in temperature” (found in policies providing open causes of loss) was interpreted in one court decision (Aetna vs. Fritz New, 1995, Dallas Court of Appeals) as having “no relationship to what the temperature is at any one time. It only refers to the difference between a temperature at a given moment and the temperature at a subsequent given moment… Hence, the exclusion must refer to damages caused by a difference in temperatures.” When freezing is clearly covered by the policy, the exclusion can’t refer to loss caused by freezing. Likewise, freezing can’t be considered “extremes of temperature” unless perhaps recorded weather data indicates the temperature that caused the loss was not subject to regular recurrence over a number of years (see Blaylock vs. American Guarantee, Texas Supreme Court, 1982). Reasonable precautions: Policies exclude loss caused by freezing (including resulting water damage) if the insured did not take reasonable precautions to (1) maintain heat in the building, or (2) drain the equipment and shut of the supply if the heat is not maintained. “Reasonable precautions” may be interpreted differently, depending on circumstances. If someone left home for a Caribbean cruise on Jan. 30 when the temperature was 81 degrees, was it unreasonable if they forgot to turn on the heat before leaving? Most insurers will not use this exclusion to deny coverage except in the most extreme circumstances evidencing a policyholder’s conscious neglect to prevent a loss.

Here is a helpful checklist:
1. STOP immediately, but do not obstruct traffic, if possible.
2. Assist injured, Have someone call the police
3. Secure names, phone numbers, addresses of other drivers, witnesses and injured persons
4. Secure make, model and license numbers of all cars involved
5. Make a rough sketch of the scene showing position of cars and other details.
6. Don’t hastily accept claim settlements at the scene of an accident.
7. Remain calm, courteous and consistent in your version of the accident.
8. Notify your insurance agent as soon as possible.

This list is intended as general advice for all consumers and is in no way guaranteed or implied to be the 100% accurate version of what you should do. No legal advice is implied, construed or offered.