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The Importance of Jewelry Insurance

November 17, 2016 Andrew Muller

If television commercials and store decorations are any indication, the holidays are upon us! This is a time when most of us spend our free time shopping for gifts for special people in our lives. Some of those gifts are sure to include jewelry, watches and engagement rings. In fact, according to Statista.com, at least 18% of annual jewelry sales occur during the month of December. That means there’s no time like the present to educate yourself on the importance of jewelry insurance coverage.

What should you know about jewelry insurance? Here’s a quick primer.

1. Jewelry insurance is not expensive.
The annual premium for a jewelry insurance policy usually falls between 1 and 3 percent of the value of the item(s) insured, which is a small amount for you to pay to fully protect your valuable jewelry.

2. Homeowner’s and renter’s policies are not enough.
If you have a homeowners or renters policy, you may assume your jewelry is already covered. These policies, however, usually impose caps on how much they will pay in the event of a loss. If the jewelry is worth more than a few thousand dollars, this type of policy would probably not be sufficient.

3. There’s a difference between riders and dedicated policies.
You may assume that the best or only way to insure their jewelry is to add a rider to their homeowner’s or renter’s policy. Riders may offer higher limits and broader coverage; however, they may not be designed specifically for jewelry. If an item is worth insuring, it makes more sense to go with a policy designed for that purpose.

4. Jewelry insurance is worth the investment.
Jewelry insurance can cover a wide range of partial and complete losses – from “mysterious disappearance” to chipped stones. It also provides a great deal of choice, allowing to have the piece recreated by a custom designer, or repaired by the jeweler of choice. Depending on your needs, there is an affordable policy that will fit the bill – and with a gift as precious and meaningful as jewelry often is, it’s well worth the effort.

Adapted from an article from Big I Markets.

Insurance Answers for First Time Home Buyers

November 16, 2016 Andrew Muller

Purchasing your first home is a daunting process. Not only do you have to find the right home (a feat in itself), go through the process of applying for a mortgage, but you also have to purchase insurance for the first time. If you haven’t owned a home before, you’ve probably never given a second thought to how a homeowner’s insurance policy works. As an insurance advisor, one of my favorite parts of my job is educating first time buyers on homeowner’s insurance and how their policy will respond in the event of a claim. Obviously, I could write an entire book about the “basics” of an insurance policy, but instead of touching on everything, I’m going to focus on the most commonly asked questions.

What is an insurance policy? An insurance policy provides coverage for your home, other structures on your property, personal property, and personal liability in the event of a claim. The insurance policy is broken into six parts:
1. Coverage A – Dwelling – This provides coverage for your home. You want to use the Replacement Cost Value for this coverage.
2. Coverage B – Other Structures – This provides coverage for other structures on your property. This can be a detached garage, pool, fence, shed, etc. Basically, anything that is a structure that is not attached to your dwelling. This is calculated as a percentage of your Dwelling Coverage.
3. Coverage C – Personal Property – This provides coverage for your personal property, such as clothing, furniture, decorations, etc. Again, this is a percentage (typically 50%) of your Dwelling Coverage.
4. Coverage D – Loss Of Use – This is coverage that provides you with money to live elsewhere if your home is rendered “unlivable” while a claim is being fixed.
5. Coverage E – Personal Liability – This provides coverage for you if you are found liable for bodily injury or property damage of a guest on your property.
6. Coverage F – Medical Payments – This is no-fault coverage that provides money to non-residents of a home in the event of bodily injury on the property.

What is replacement cost value? Replacement Cost Value is often confused with market value, when in fact they are completely different. We won’t get into the nuances of market value since that is not what we are concerned with. Replacement Cost Value is what it would cost to build the same home with today’s construction prices, without the land included. When deriving this value, we’re looking at the finishes of the home, square footage, materials used, age, etc. to compare with homes with the same characteristics as what is being built today. So, a home built in the 1950s might be on the market for $250,000 but we really need to insure it for $300,000. Whereas, a home built in 2016 may be on the market for $300,000 and we only need to insure it for $250,000. This can get extremely confusing, but we are here to help you with every step!

What is covered on my insurance policy? Most homeowner’s policies are written on an HO3 Policy Form. On an HO3 policy, unless a peril is specifically excluded, it is covered for your dwelling. It is important to note that flood is never covered under a homeowner’s insurance policy and is always a separate policy.

What is a deductible? A deductible is an amount of money that you are responsible for in the event of a claim. With coastal insurance, you typically will find a Hurricane or Wind & Hail Deductible and an All Other Perils (AOP) Deductible. So, let’s say you have a homeowner’s policy with $250,000 Dwelling Coverage with a $2500 AOP Deductible and 2% Hurricane Deductible. In the event of a claim due to a hurricane, you (the insured) are responsible for the first $5,000 (2% of $250,000) of repair/replacement. If the loss due to a covered peril that is not a hurricane, then you would be responsible for the first $2,500 of repair/replacement.

What is the difference in a Wind & Hail Deductible, Named Storm Deductible, and Hurricane Deductible? A wind and hail deductible applies in the event of ANY wind and/or hail damage. This could be anything from a strong gust that blows over a tree onto your roof to gale force winds from a hurricane. A named storm deductible only applies in the event of a named storm (tropical storm, tropical depression, hurricane, etc.). If a wind and hail claim occurs that is not part of a named storm event, then it would be covered under your AOP Deductible. A hurricane deductible only applies in the event of a hurricane. All other wind and hail related claims would be covered under the AOP Deductible.

What is the most important part of purchasing homeowner’s insurance? I can’t say what every individual’s decision making factor is going to be because everyone has different risk management techniques. My biggest advice to clients is don’t make a decision based on premium alone. Typically, when premiums are drastically lower, it is because there is less coverage and/or higher deductibles. As a consumer, you must decide how much risk you are willing to take on. Do you want to pay a little more each year and have a lower deductible? Or, do you want to pay less each year and have more personal exposure in the event of a claim?

We hope you have found this post helpful in your search for homeowner’s insurance whether it is your first home or fifth. If you would like to talk with one of our advisors call us today at 843.763.4200 or send in an online inquiry here.

How can I save money on car insurance?

November 10, 2016 Andrew Muller

As insurance agents, we get this question extremely often. After all, who doesn’t want to save money on their auto insurance? Rather than reducing coverage and putting you at risk for personal exposure in the event of an accident, we recommend that you increase your comprehensive and collision deductibles. By taking on those small dings and dents without filing a claim, your auto insurance premiums will decrease.

The other way to drastically decrease your auto insurance premiums is to enroll in Safeco’s RightTrack program. RightTrack can save you up to 30% on your insurance premium. How does it work? By enrolling in the program, you receive an automatic 5% discount on your auto insurance. Safeco then issues you a device that monitors your driving for the next 90 days. During those 90 days you can log in and see your driving stats. After those 90 days, Safeco will tell you how much of a discount you will receive. For more information on RightTrack, click here.

If you’re interested in this program, contact us today at 843.763.4200 or fill out an online inquiry on our website!

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Am I At Risk For an Earthquake?? YES!

October 25, 2016 Andrew Muller

When most people think of earthquakes, the first location they think of is not Charleston. They think of California, New Zealand, Asia and other places that have suffered recent major earthquakes. Because we haven’t had a major earthquake in 130 years, oftentimes people forget that Charleston sits on a major fault line.

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Image courtesy of Travelers Insurance

The last major earthquake that Charleston experienced completely devastated the city. There was $23 million of damage. That is $612 million when adjusted for inflation! With the growth that the Charleston area has seen since 1886 the fallout from an earthquake today would be even greater than the figure above.

Earthquake coverage is automatically excluded from standard homeowner’s policies, but coverage can be added back in by an earthquake endorsement or by buying a stand-alone earthquake policy. While Earthquake insurance isn’t required by most lenders, we do recommend this coverage. The nominal amount that the coverage adds to your annual premium is worth the savings you could see if we were to experience a major earthquake.

For a home with a $300,000 Replacement Cost, adding earthquake coverage to you insurance policy typically adds $300 or less to your premium (depending on the carrier). Starting a new stand-alone earthquake policy is usually around $325-350 for the same home. Earthquake coverage does come with its own earthquake deductible. In many cases, this is a 5% deductible, which means that for that $300,000 house, the deductible will be $15,000 (5% of the Replacement Cost). We have also seen deductibles as 2% and 3% with certain carriers.

Unlike hurricanes and tropical storms, there is no way to predict when the next earthquake will hit. So, we recommend adding earthquake coverage to your homeowners policy, and also taking steps to mitigate potential earthquake hazards. Things like strapping your water heaters to the wall or anchoring top heavy furniture to walls can prevent additional damage and bodily harm. As always, you should also have an earthquake plan for your family. This would include identifying the safest places in the house during an earthquake, as well as what to do if an earthquake strikes while you are elsewhere.

Check your policy to see if you have earthquake coverage. If you don’t, call us at 843.763.4200 to get an earthquake quote. Keep in mind, we do not write monoline earthquake coverage, so we will need to write the homeowner’s policy as well.

Am I In A Flood Zone???

October 24, 2016 Andrew Muller

Am I in a flood zone? This is one of the most often asked questions we get at Mappus Insurance. The answer is quite simple, yes. In fact, all properties are in flood zones. It is a matter of how high of a hazard zone one is. For easy understanding, there are three types of flood zones – X, A, and V. Many people get confused by saying “I am not in a flood zone”, but what they really mean is “I am in an X flood zone”.

What drives this confusion? Many people get confused by flood zones based on if they are “required” to carry flood insurance from their mortgage lender. When a lender says they do not require flood insurance, it is interpreted as the property is not in a flood zone, when in fact they are in an X flood zone. Just because a lender does not require you to carry flood insurance, does not mean you will not have a flood loss. Remember, flood insurance is never covered under a homeowners policy.

I am in an X flood zone, do I need flood insurance? This is a great question. If you ask us at Mappus Insurance, the answer is quite simple, YES, you need flood insurance…even in an X flood zone! Living on the coast in South Carolina presents many risk exposures – wind, hail, and flood being the many “acts of God” type of claims that we cannot predict or stop from occurring. Thus, we always recommend flood insurance.

But why do I need flood insurance? The statistics are clear, over 20% of all flood losses occur in X flood zones. The average flood loss is over $30,000. Flood coverage is always excluded under a homeowners policy so you cannot turn to coverage there. Over the past few years, many Mappus clients, in X flood zones, have experienced flood losses. Thankfully many (most) of them decided to purchase flood insurance and are very grateful they did. This can be a devastating loss to your family’s finances if you do not carry the proper coverage.

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What does flood insurance cost? Short answer: it depends. For x flood zones, it can be as little as $200 annually but is typically around $450 if full coverage limits are selected. If you are in an A or V flood zone, it is based on an elevation certificate. An elevation certificate provides data on a property’s elevation relative to what is called the “base flood elevation” also known as the BFE. Every property is different, meaning, your neighbor’s house can rate up differently than yours based on many factors, so do not assume anything.

Are there options? Yes. Unlike many insurance agencies, Mappus Insurance has many flood insurance options. While we represent the FEMA flood program, we also represent a number of private flood insurance carriers. Some of these carriers can provide better and more coverage than what is covered under the FEMA program, but again, every property is different and we recommend you consult with one of our insurance advisors to see what is best for you and your family.

Next steps? Contact Mappus Insurance and speak with a flood insurance advisor to discuss your specific needs. Remember that we do not write mono-line flood insurance, so we must write your homeowners insurance in order to write your flood insurance. Mappus has been in business since 1960 serving Lowcountry families. We are a full service agency, so in addition to flood and homeowners insurance, we can write your automobiles, valuable items, boats, personal umbrellas, golf carts, and more….give us a call or complete the form below.

8 Tips for Filing Claims

October 14, 2016 Andrew Muller

Insurance adjusters, catastrophe personnel and mobile claim centers have already been deployed to staging areas along the East Coast and are ready to respond to customers impacted by Hurricane Florence.

Whether reporting damage to your property over the phone or through your mobile device, we offer the following tips on how to file an insurance claim:

Have a home inventory. Before a claim happens, have an inventory of items in your home. This can be a traditional list or can be photos or video on your smartphone to help jog your memory of what is exactly is in each room. In the event of a claim, it is not likely that you’re going to be able to remember each item in the guest bedroom closet.
Save your insurer’s claims department phone number and your policy number in your phone. Again, this is most beneficial if done before a claim happens. This will help eliminate the hassle of trying to get back into your home to retrieve those documents.
Contact your insurer as soon as possible to begin the process. Provide your insurer with your policy number and the best phone number and email address at which to reach you. After a major storm, insurers visit those with the most severe damage first, so prepare to provide an accurate description of the extent of the property damage. Be sure to explain any special needs of your family, particularly if personal circumstances require that you get priority. Ask your insurer when you can expect to be contacted by an insurance adjuster so that you can be prepared for the visit. Since adjusters may be in areas in which cell phone towers are damaged, it is also a good idea to get the phone number of your adjuster’s supervisor so you have an additional contact. If you have a flood insurance claim, contact the agent or broker who sold you the policy to start the claims filing process.
Document your loss. The insurance adjuster most likely will inspect the damage to your home, auto and possessions in order to write a check to help you replace, repair and rebuild. It is a good idea to take photographs and document the details of damaged items, including the date of purchase and approximate value—and collect receipts, if you have them. Many companies will ask you to submit an inventory of the items. Make sure to take any photos and keep any receipts for supplies you purchase to mitigate further damage.
Check with your insurer before discarding damaged items and materials. You will generally need to show storm damaged items to your adjuster. If, however, you are required by your local municipality to discard them for safety reasons, take photographs to help with the claims process.
Sign up for SMS/text alerts. Many insurance companies use SMS/text message alerts that will notify you of the status of your claim. You will receive text messages on your phone when you first report your claim, when your estimate is available and when a payment has been sent.
Know what emergency services are available. In the event you need emergency services, such as removing water from your home, covering your roof, or boarding up windows or doors, many companies will dispatch an approved emergency services company to protect your home from further damage. If your home has sustained severe damage, making it unlivable, your homeowners insurer will provide you with a check for additional living expenses.
Keep a claim diary. Good recordkeeping is important when filing a claim. Make a list of everyone you speak to about your claim. Note their name, title and contact information. Also, keep track of the date, time and issues discussed. The better organized you are, the simpler and easier the claims process will be.

***Please note that by filing a claim below does not mean the claim has been filed with your insurance company. Once we review then we can help file it for you. We do recommend filing a claim directly with your insurance company. Click here to download our carrier claims contacts info

Report A Claim

Name
First Last
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Policy Number
Details of loss

FEMA Disaster Assistance

October 10, 2016 Andrew Muller

Please note that the federal government can provide disaster assistance and disaster loans to people that did not have proper or enough coverage. One can apply for disaster assistance by following this link: https://www.disasterassistance.gov/. You can also learn more about the assistance here:

https://www.disasterassistance.gov/get-assistance/forms-of-assistance/4471/0/D05
https://www.disasterassistance.gov/get-assistance/forms-of-assistance/4477/0/D10

FEMA (Federal Emergency Management Agency) will also be in the area this week and for the foreseeable future to help people apply for assistance. The location of their office is TBD, but please look for this information in local papers and news channels.

Mappus Insurance Agency

October 7, 2016 Andrew Muller

Mappus has the most options to get you the absolute best coverages, deductibles and pricing on your flood and homeowners insurance. Where most insurance agencies only have one flood option, at Mappus, we have five (four being private markets). Where most insurance agencies only have one homeowners option, we have over 20 direct markets that are designed to insure coastal properties. Best of all, we are local and a part of the community. Give Mappus an opportunity to review your current insurance program and provide you with real solutions and options, not just a “take it or leave it” mentality. We are not here to simply write your insurance, we are here to ride this journey with you and your family for many years to come and be there when you need us the most. Fill out the form to the right of this page for one of our advisor to contact you at your convenience, or call the office at 843.763.4200. We pray that you and your family stay safe during Hurricane Matthew and evacuate to seek safe shelter.

Explaining Uninsured & Underinsured Motorist Coverage and Why You Need It

August 26, 2016 Andrew Muller

“If you’re buying an umbrella policy so that you can cover the injuries of strangers, wouldn’t you want to do the same for your family, instead of blindly relying on someone else to cover your injuries…”

Let’s face it: Auto insurance can seem complicated. Most states require you to have at least some coverage (typically a certain amount of liability), but then there’s a whole slew of other coverages to consider, too – comprehensive, collision, roadside assistance, rental reimbursement.

Then there’s uninsured motorist coverage and underinsured motorist coverage. In my experience, these are the most misunderstood auto insurance coverages of all. However, they can make a big difference in some key situations.

What Is Uninsured & Underinsured Motorist Coverage?

This coverage protects you (the insured) from owners or drivers of vehicles who do not have insurance or the assets to compensate people who suffer a loss through their negligent ownership, maintenance, or use of an “uninsured motor vehicle.”

Why You May Need Uninsured Motorist or Underinsured Motorist Coverage

Another driver causes an accident, damaging your vehicle and perhaps injuring you, but doesn’t carry any insurance coverage.
The driver responsible for the accident doesn’t carry enough insurance to pay for all of the damage you incur. Hence your would have to pay the remaining car repair and medical costs.
The at-fault driver has insurance, but the carrier is financially unable to pay the claim.
You’re involved in a hit-and-run accident (state laws vary here).

So, you see, uninsured motorist and underinsured motorist coverage can come to your aid in many instances. Yet, given the chance, many drivers still bypass the coverage, and their reasons for doing so are oftentimes based on some common misconceptions. So, let’s clear those up.

Misconception 1
“Uninsured motorist and/or underinsured motorist coverage will make my car insurance too expensive.”

Yes, you will save money by not purchasing these coverages. But, for how long? If you encounter one of the above scenarios and find yourself paying for medical bills and car repairs out of your own pocket, you’re no longer saving money. If it’s a serious accident, your costs could be catastrophic.

Misconception 2
“I have health insurance, so I don’t need uninsured or underinsured motorist coverage.”

Great – it’s important to have health insurance. But, will it pay for lost wages and long-term care stemming from an auto accident? Likely not. In fact, your carrier may prohibit your health insurance from being used as primary coverage in the case of an auto accident. If so, you may need to first exhaust your auto insurance coverage before you’re eligible for benefits from your health insurer. Your health insurance deductible is also something to consider. If it’s high, you could elect to pay your auto deductible and use your uninsured motorist or underinsured motorist coverage, when applicable, instead.

Misconception 3
“I don’t want to be over-insured. I’ll just purchase the minimum car insurance my state requires.”

When you follow state requirements for purchasing car insurance, you typically end up only buying coverage to pay for other people’s injuries and car repairs, not your own. So, in many instances, only buying the minimum can leave you underinsured.

Misconception 4
“If the other driver is at-fault, I can rely on his/her insurance carrier to cover my costs.”

Ideally, yes. Unless you’re involved in one of the four scenarios outlined above. Then you may only have your insurance to rely on. That’s why it’s important to make sure it’s enough.

How much does home insurance cost in Mount Pleasant and Charleston?

August 1, 2016 Andrew Muller

As a local homeowners insurance agent in Charleston and Mount Pleasant, South Carolina I get asked every single day “How much will my homeowners insurance cost” or “I pay $XXX for my homeowners insurance, what can you do?”. While I wish I could give you an immediate and exact answer to this question, I am afraid I cannot. Before you click away, read a little more to learn some valuable information that you can apply…

Now, no one can actually answer this question upfront, and you should be cautious if someone does, because there are just too many variables that go into pricing homeowners insurance here in coastal South Carolina, specifically in the Charleston and Mount Pleasant areas. What I want to do for you is give some examples and explain what you can do to reduce your homeowners insurance premiums. Keep reading if you want to reduce your homeowners insurance premium.

There are many variables that go into your homeowners insurance premium. These variables include, but are not limited to:

Replacement cost: how much money you need to rebuild your home?
Type of construction: do you have brick, hardi-plank, wood, or vinyl siding?
Year built: how old is your home? You can get a large discount for a brand new home.
Updates: when did you replace your roof, your heating unit, your plumbing, and the wiring in your home?
Deductible: how much you do you want to pay out of your own pocket before the insurance company will pay?
With/without earthquake coverage: do you want your home covered if there’s an earthquake?
Prior loss history: have you had any claims in the past three to five years? Prior losses, at your current or prior home can have a major impact on pricing.
Credit score: the higher your credit score the lower your homeowners insurance premium will be. **Note that there is never a “hit” on your credit and not all companies use this for underwriting
Wind pool: if you live in coastal South Carolina, are you in the wind pool zone one, two or not at all?

Whew…you probably thought it was a lot easier than that, right?

All of those variables drive the cost, or premium, on the flip side, if you are working with a smart and pro-active agent as your advisor then they are going to help find all the discounts you qualify for. These discounts include, but are not limited to:

Multi-policy: do you have your auto, home, etc. with the same agency and/or company?
New home: is it brand new or less than 25 years old?
Alarm system: do you have a monitored alarm for the police and fire departments?
Gated community: do you live in a gated community?
Loss free: in the past three to five years have you had zero claims?
Excellent credit: the better your credit the less you pay
Mature homeowner discount: depending upon your age and if you’re retired you can get an extra discount
Home improvements: do you have a HIP roof, hurricane shutters and/or hurricane laminated glass, just to name a few

All these items can be major money savers, so you can put money back in your pocket. On board yet?

As you can see, there is not a clear answer as to what your homeowners insurance premium should be. Now before I leave you, I want to give you some real life examples of policies that I’ve recently written. All the examples below include wind/hail or hurricane coverage and also include a slew of “Bells and Whistles” to help protect beyond the basics. Remember that flood insurance is not included below and is always on its own policy. Also keep in mind that the various endorsements and credit could be impacting these final premiums.

New construction in Mount Pleasant: Replacement cost of $450,000. Insurance premium of $1,600.
Historic downtown Charleston home built in 1850: Replacement cost of $900,000. Insurance premium of $4,800.
Home on Isle of Palms built in 2008: Replacement cost of $700,000. Insurance premium of $4,500.
New construction on Johns Island: Replacement cost of $500,000. Insurance premium of $1,100.
Front Beach home on Sullivan’s Island built in 1974: Replacement cost of $949,000. Insurance premium of $6,750.

Some of the biggest impacts that can help reduce your homeowners premium are: getting out of the wind pool insurance plan (SCWHUA), but most importantly, working with a local Trusted Choice independent insurance agency that understands the current homeowners insurance market and see how they can assist you with re-marketing your new or current plan.

To bring things back around…If you are asking the question of “How much does homeowners insurance cost?” and you live in the Charleston, Mount Pleasant or the Tri-County area then give us a call (843.763.4200) or complete the quick quote form on our website and one of our agency’s advisors will contact you at your convenience. At Mappus Insurance Agency, we help families with their “everyday risks”.

The Importance of Jewelry Insurance

Insurance Answers for First Time Home Buyers

How can I save money on car insurance?

Am I At Risk For an Earthquake?? YES!

Am I In A Flood Zone???

Website Quote

8 Tips for Filing Claims

Report A Claim

FEMA Disaster Assistance

Mappus Insurance Agency

Explaining Uninsured & Underinsured Motorist Coverage and Why You Need It

How much does home insurance cost in Mount Pleasant and Charleston?

Mappus Insurance protects Charleston, Mount Pleasant, and the entire state of South Carolina

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Mappus Insurance protects Charleston, Mount Pleasant, and the entire state of South Carolina

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