At our office meeting today we had Josh Barnett from American Family Insurance stop by and talk to us a little bit about Home Owners Insurance.
There has recently been some changes with the way American Family Insurance determines rates and risk. Now they use credit as a determination of insurance risk. This is for both homeowners insurance and auto insurance. If you have excellent credit it is assumed that you are more responsible.
American Family Insurance also offers a new purchase discount for the purchase of homes. Basically they treat new customers better than the old ones. There is also a discount for the purchase of new homes. New homes are less risky than older homes.
Earthquake Insurance is offered through American Family Insurance, after recent natural disasters, some insurance companies no longer offers this coverage. Josh claims that they can offer home and earthquake insurance for about the same price that other companies offer just home owners insurance. Earthquake insurance for a typical Cache Valley house would be about $12 a month.
When buying a condo, owners need condo insurance, not renters insurance. The difference is that renters insurance just covers personal property, condo insurance will also cover the interior of the condo in case of damage. A lot of people who have lived in Logan Condos for a long time just have renters insurance.
There are also factors regarding the condition of the home that may make it un-insurable. If the electrical wiring is old, a home owners insurance policy may be canceled after it is inspected. If there aren’t railings on front porches more than two feet high, your house may also be un insurable.