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Category: Home Insurance

Insuring Condos is Just Like Insuring Any Other Home – Right?

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Owning a condominium is a big investment, and it’s important that you take the necessary steps to protect it. And while condos do have many of the same risks as houses, there are also other risks you need to be aware of – and coverages that can protect you. There may also be less that needs to be covered than a traditional house, but it’s important to understand what that really means. Let’s take a look!

What Kind of Insurance Do I Need?
As you might expect when insuring a condo, there are three common types of coverage: dwelling, liability, and personal property. Dwelling coverage typically covers any repairs or replacements needed due to fire, theft, or specific natural disasters. Liability coverage is to help protect you from lawsuits that may arise from an accident in or around your condominium. And finally, personal property coverage is used to cover items inside your condo if they are damaged or stolen.

However, condos are typically insured on an “HO6” policy. The main difference in that and a “regular house” policy (typically covered by an “HO3” policy) is that condo owners are not usually responsible for the “common areas” around their condo. As examples, the hallways, land, parking areas, etc. are usually the responsibility of the company that owns or manages the condo – or the condo owners’ association.

So, as a condo owner with an HO6 policy, you may have “less” to cover. But that doesn’t mean you have less to protect. HO6 policies don’t typically protect you against losses from earthquakes, sinkholes, floods, and municipal water/sewers.

What Other Coverages Do I Need?
To fully protect your condo, you should discuss additional coverage options with your insurance agent. Coverages for flood, water backup, earthquake, and umbrella policies for additional liability may make sense depending on your specific risks.

Another coverage to review is “unit assessment” insurance, which can reimburse you for your share of an assessment charged to all unit owners as a result of a covered loss. For instance, if there is a fire in the lobby and all the unit owners are charged the cost of repairing the loss.

Insuring condos, like most property, is often unique to the risks you face. Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and let him help you determine your risks and understand your coverage options!

Would You be Covered if Santa’s Sleigh Damaged Your Roof?

Posted on by Ownby-Client-Login

Have you ever thought of the possibility that Santa’s sleigh might cause damage to your roof? It’s hypothetical of course (or is it?), but if a large sleigh filled with gifts and a crew of flying reindeer landed on your roof, it’s hard to believe they wouldn’t ever leave behind some damage. So, if some tiles were damaged – or worse, you have a Santa’s sleigh-shaped hole in your roof – what would you do?

Would Home Insurance Cover It? Maybe.

Homeowner’s insurance generally covers any damages caused by sudden and accidental events. This includes damages from storms, fires, theft, vandalism, accidents, and more. The key here is that the incident must be sudden and accidental. So, what does this mean for Santa’s sleigh? Well, if it suddenly crashes into your roof and causes damage then it would likely be covered by your homeowner’s insurance policy.

It is important to note, however, that most policies have exclusions for any kind of intentional or expected damage. That means if Santa was aware of the potential for his sleigh to crash into your home but decided to risk it anyway then your insurer may not cover the damage costs as they are expecting him to take reasonable precautions when travelling around homes on Christmas Eve! In addition, some policies also exclude all kinds of “acts of god” type events so in that case even if Santa was unaware of the potential for crashing into your home your insurer could still choose not to cover the costs associated with repairing the damages.

How Can You Protect Yourself?

The best way to protect yourself against any unexpected events like this is to make sure you have adequate coverage in place with a reliable insurer who will provide prompt service when needed. Make sure you are familiar with all of the exclusions listed in your policy so that there are no surprises should something happen. Additionally, always keep detailed records including photos and video footage just in case you need them down the line (Plus, we want to see the sleigh!).

Lastly don’t forget about preventive maintenance – if there are any issues with your roof make sure they get fixed before Christmas rolls around; after all it wouldn’t hurt for us all to do our part in helping out old Saint Nick!

Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and let us help you plan for any unexpected events.

Don’t Let ATV Risks Ruin Your ATV Fun

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Fall is a great season to get those 4-wheelers, UTVs, and other specialty off-road vehicles out to explore. And while all these types of vehicles can be fun, they also have risks that you need to be prepared to face. Having the right insurance in place is a big part of that preparation.

Some of those risks and coverages may be obvious, like collision coverage for accidents and comprehensive coverage for incidents of theft, fire, animal collisions, etc. But what about some of the less thought of risks you may face? Let’s take a look at a few:

Accessory Coverage
Many people add accessories to their ATV/UTV like trailer hitches, hunting equipment, custom seats, etc. This non-manufacturer-standard equipment may not be covered on your current policy. It may, however, be an option to be added or included in a different policy option. Even helmets, riding gear, radios, etc. may have the option to be covered if used exclusively for the insured vehicle.

Uninsured/Underinsured Motorist
Many people don’t insure their vehicles, especially if they are specialty vehicles like ATV/UTVs. If your vehicle is damaged in an accident with an uninsured or underinsured vehicle, you may not have coverage on a “standard” ATV/UTV policy. Adding this coverage, and/or potentially extending coverage to your ATV/UTV on a personal umbrella policy, may protect you from this type of liability.

Transport/Trailer Damage
Do you transport your ATV/UTV to other locations to ride? What about locations like trails, state/public parks, or hunting properties? If you do, you may have coverage limits, or a lack of coverage, that you’re not aware of having. Some state and public parks require ATV/UTV insurance for riders, meaning that if your vehicle is included under your home/auto policy, you may have coverage in these parks. In addition, the limits for damage to your ATV/UTV while it is trailered may not be enough to coverage damages in case of a severe accident.

As you can see, there is more to think about when covering these specialty vehicles. Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and he’ll be happy to discuss it and provide you info on the coverage you need.

It’s Fall! Are There More Risks in Store this Season?

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There is a large contingent of people that excitedly await the Fall season. In our region, the turning leaves, crisp weather, and seasonal décor make for a pretty sight. But this season also brings some risks for you and your property, and it’s a good time to prepare and avoid these potential issues.

Wild Animal Incidents
As the weather changes, the habitats for deer, bears, foxes, and more change. Their food may be scarcer, causing them to wander further than normal. This can lead to them walking on roadways and exploring more populated areas. In fact, statistics show that the majority of vehicle accidents involving animals occur between October and December. These are even more common at dawn and dusk, so be vigilant when you’re on the road this season.

Fire and Smoke-related Incident
We get it, a cozy fire can sound very nice when the evenings cool down. But fireplaces, candles, and wood stoves can lead to issues. Almost a third of smoke and fire claims occur during the Fall and Winter months, and Ready.gov stats show that over $7 billion per year of property is lost in house fires. Please make sure fireplaces and chimneys are clear, candles are kept in occupied areas, and wood stoves are monitored.

Leaves Can Be a Culprit
The colors of Fall can be beautiful, but they call it Fall for a reason. The leaves that collect on roofs, gutters, yards, sidewalks, and roads can cause damage – both directly and indirectly. Clogged gutters can lead to water damage, sidewalks and roads can be slick with wet leaves, and uncleared leaves on the ground can damage grass and landscaping. Be sure to clear your gutters, rake your yard, and be careful on those leaf-covered passages.

Have other questions about your seasonal risks? Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and he’ll be happy to discuss it and provide you info on the coverage you need.

Who Needs a Commercial Umbrella?

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You can probably guess pretty quickly that the “commercial umbrella” we’re referring to isn’t some industrial strength rain shield. In the case of insurance, a commercial umbrella can extend the protection your business has from certain limits of liability on other coverages.

For example, if you your business had a large legal claim against it, your businessowners policy might not cover all of the legal expenses, medical costs, damages, and/or legal judgements imposed. Most commonly, this is seen with general liability policies and commercial auto policies. And there must be an “underlying” policy to extend – you can’t just buy a commercial umbrella without base coverages. The reason for that is these policies are triggered by specific policy language. Something must occur with your other policy(ies) for this policy to “kick in”.

So, who needs one? While most businesses could benefit from having one in place, a commercial umbrella is especially needed for businesses that frequently interact with their customers in-person. This is especially so if equipment/machinery is involved – think of pest control, dry cleaning, restaurants, landscapers, and hardware stores as good examples. The key is to understand where you have the highest risk for a claim. As further examples – landscapers may cause property damage more frequently by flying debris, and a hardware store may be operating a forklift around walking patrons in risk of bodily injury.

The limits and costs of these policies vary of course, but they can be a very wise investment. You may be able to increase the amount of your “total” coverage by $1 to $15 million (more in some cases), allowing you to “customize” your business’s insurance plan.

Have other questions about protecting your business with an umbrella? Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and he’ll be happy to discuss it and provide you info on the coverage you need.

Is Your Detached Garage Covered with the Right Insurance?

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In today’s world, garages are for a lot more than parking cars. People across the country have turned their garages into gyms, bars, apartments, workshops, and more. The value of those garages can change completely with these upgrades. And if your garage is “detached” from your home, the limits of your coverage may not be we you need.

Buildings that are not attached directly to the primary structure (home or “dwelling”) on your property are typically covered on homeowners insurance policies. However, many policies cover detached structures with only a percentage of the value of your home. As an example, your home may be covered for $500,000, but your detached garage may only be covered for 10% of that value – or $50,000. That may seem like a significant amount, but consider a total loss claim scenario for your detached garage. If you’ve upgraded that structure with flooring, finishing, or maybe even a sink, wet bar, or full bathroom – $50,000 isn’t going to go very far with today’s cost of building materials and labor.

Additional coverage for “Other Structures” (also known as Coverage B) is typically available to add to homeowners policies. If not, sometimes standalone coverage called Detached Structure Insurance can be purchased. You should also keep in mind that if you store property for “business use” in your Other Structure (e.g. tools, inventory, shipping materials, etc.), it likely would not be covered on your personal policies if you had a loss.

Detached garages and other structures often have more coverage needs than their owners have considered. Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and he’ll be happy to discuss your property and provide you info on the coverage you need.

Are You Protected as an HOA Board Member?

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In our previous article on this subject, we discussed the concerns homeowners face as they share risk in a Homeowners’ Association (HOA). In this article, we’ll take a look at the concerns that those on the Board of an HOA should have as they consider their own liability.

Professional Liability – Making decisions for a group can result in unforeseen liability. As an elected or appointed HOA board member, you are taking on the burden of determining some of actions for your community. If one of those decisions has a negative result, you may potentially be included in litigation.  If so, who will defend you, and who will potentially help you with any resulting financial liability? These answers will typically be addressed in the articles, rules, and/or bylaws that govern the association. This can help indemnify HOA board members. In order to provide this indemnification, the association’s assets and/or a Directors & Officers (D&O) insurance policy should be in place as financial protection.

A D&O policy typically protects the HOA board members if a legal challenge arising from their decisions or actions in a board capacity. Some areas this may come into play include:

  • Rules created by the Board
  • Election disputes
  • Actions taken by the Board such as evictions
  • Demands for allocation of HOA resources
  • Decisions on service providers and/or service offerings

There are often endorsements for D&O that may be included on package policies for an HOA. However, these may be insufficient when considering all the potential liabilities. A standalone D&O policy is often a more complete solution for protection, as it often addresses more coverage areas and may provide higher limits.

When making the decision to cover your HOA board with a D&O policy, talk with an insurance agent who has the experience and market options to adequately address your group’s needs. If you need a place to start, please reach out to Brandon Patterson at 865.453.1414 or brandon@ownbyinsurance.com for more information.

Your HOA is Watching You, Who’s Watching Their Liability?

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Chances are, if you live in a neighborhood or a condominium, or even if you own a timeshare or cooperative, there is a group that oversees the standards and covenant of that community. General known as homeowners associations (HOAs), this group may provide benefits such as common space and community upkeep, neighborhood events, shared amenities, and group guidelines. You likely pay dues to be part of this group, and you probably agreed to abide by the guidelines when you moved into the home. But with those benefits also comes some liabilities. Who is protecting you and your neighbors from those risks? Here are some of the most common:

Common Space Liability – If you share a common space with your neighbors, whether it be a dog park, greenway, playground, picnic area, or more, there may be shared liability for injuries that occur in those spaces.

Shared Property Damage – If your neighborhood or condo shares property or a building(s), an HOA policy may cover property damage to that shared risk should it occur. For example, if a fire destroys the community’s gym, an HOA policy would likely come into play for recovering on a claim.

These HOA policies are also called master policies, and there are different types commonly found. For single-home neighborhoods or subdivisions, the master policy typically does not extend the homeowners coverage, but rather covers the common areas and shared liability only. For condos, there are typically three types of master policies:

Bare Walls Coverage – Typically covers the basic structure of the condo.

Single Entity Coverage – Typically covers the basic structure plus entire walls, cabinets, and fixtures.

All-in Coverage – Typically covers everything a single-entity master policy covers, but also extends to built-in appliances.

It’s also important to note that with a master HOA policy, the adjusting of claims is based off how the master deed and bylaws of the association are written. Members of the HOA should read these very carefully to be sure that their individual units are insured correctly.

In addition to these coverages, there is liability for the Board of the HOA and other risks that may need to be addressed. We’ll review those in a future article, but if you need to learn more about HOA risks and policies, please contact our specialist Brandon Patterson at 865-453-1414.

Log Cabin Risks That Impact Rate

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They’re beautiful to look at and often fit right in with the natural landscape that surrounds them. But did you know that log cabins have some very specific risks when it comes to insurance? You’ll still find many of the factors that impact a non-log home’s insurance pricing, but here are some other factors you may not have realized impact log cabin insurance:

Properties of Wood
The wood used in construction of your log home is a factor that insurance underwriters take into account. Using larger logs (thicker than 8 inches in diameter) actually reduces your risk, as they are more resistant to wind, fire, and other damage. However, their replacement cost is higher. The wood’s resistance to fire is actually measured by a “fire resistance rating”, which actually estimates, “the period of time a building element, component or assembly maintains the ability to confine a fire, continues to perform a given structural function, or both…”

Damage and Protection of Wood
Speaking of the wood, there are obviously some traits about the material that make it more susceptible to certain kinds of damage. One of the most obvious is damage from wood-destroying insects and birds, including termites, carpenter bees, woodpeckers, and more. Typically, homeowners insurance will not cover insect or pest damage. Many people don’t find this out until they have a claim – often an expensive one – that gets denied. In addition, caring for the wood on your log home is important, as rotting wood is often excluded and “lack of homeowner maintenance” can cause claims to be denied. Staining and sealing the wood on your log cabin on a regular basis is a key piece of that maintenance.

Foundation
Log cabins have various foundation types, from concrete slabs to strips to pads (or tiers). The reason this matters is because of the potential for subsidence (gradual caving in or sinking). The sturdier your foundation, the less risk will be factored into your cost for insurance.

Roofing Material
Although many log homes now use asphalt shingle or even metal roof materials, some people like the look of a more traditional wood shingle. Unfortunately, these materials may be more susceptible to risks like fire, wind, and water damage. This will result in higher insurance rates.

What other factors will your log home encounter in the insurance underwriting process? Contact us at 865.453.1414 and we’ll discuss your specific risks and how you can find the best policy for your property.

Vacant Versus Vacation Rental – Why it Matters

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Having a Homeowners insurance policy is crucial when you own a home, but what if you don’t live in the home? Homes that are left vacant for 30-60 days or more may be considered as “vacant” by the standards of your policy and may leave you with coverage gaps. Here are a few situations to consider for your properties’ insurance coverages:

Unoccupied Homes
Having a property that is completely unoccupied or rarely occupied can increase risks. Small problems that would normally be noticed by those on the property (e.g. leaks, non-working devices, etc.) can go for days or weeks without attention. These can lead to big issues, and that is why a standard homeowners policy is unlikely to provide coverage. In addition, you may have liability for accidents that occur on the unmonitored property. Not to mention, standard perils like fire, wind, and hail may occur without immediate attention.

Vacation Rentals
Properties being used as vacation rentals are likely monitored more frequently than unoccupied homes. However, they still likely have periods of being unoccupied, and they also have larger liability risks with various guests using the property. Regular homeowners policies generally exclude “business activities” like earning rental income. Have a homeowners policy with a “rental rider” or other similar endorsement? Make sure the policy covers you for the amount of times you’ll be renting. More frequent rentals are often excluded by the language in these policy additions.

Determine or Estimate Total Use
Try to determine or estimate the total use of your property for the year, whether it be unoccupied for a certain amount of time, rented for a certain amount of time, and/or owner-occupied for a certain amount of time. This will give you the information to discuss with an insurance agent so that they can help you determine the coverages you will need to adequately protect your property. Otherwise, a claim scenario may leave you with an exclusion you weren’t aware you had.

Don’t let the wrong insurance leave you with a vacancy on coverage. Contact us at 865.453.1414 to discuss the right coverages for your property.