Home Insurance

Should I Install a Home Security System?

Not so many years ago, a fail-safe home security system consisted of a good lock on the door, a large family dog, and perhaps a baseball bat propped up in the umbrella stand. Today, most locks can't keep experienced burglars out, fewer people can keep big dogs, and baseball bats provide little protection against well-armed intruders. More and more homeowners--and even apartment dwellers--are investing in home security systems to deter criminals, provide home protection, and give them peace of mind.

If you're wondering whether to install a home security system, then consider the following questions:

What are you trying to protect?

If you live alone with little more than a television and some furniture, and have little concern for your own personal safety (perhaps you have a black belt in karate), then your home security needs may be nil. If, however, you have children and/or other family to protect, you fear for your own personal well-being, and/or you own expensive antiques, art, jewelry, and other valuables, then your need for home security is probably much greater. The importance of what you are trying to protect should weigh heavily in your decision to install a home security system. You want to be able to sleep well at night knowing that both your loved ones and your valuable personal belongings are safe. If you can't do that now, then you may need some form of home security system.

Do you live in a high-crime area?

Another way to analyze your home security needs is to consider the likelihood that you will be the target of criminal activity. If you have lived in a neighborhood for a while, you probably already know whether it is safe to leave your doors unlocked at night, or whether you should barricade every window around the clock. If you live in a high-crime area, your need for home security is greater. If you are new in town, you might want to do a little research to find out about the level of crime where you live. The police station, local library, neighbors, and local real estate agents are all potential sources of information about the level of crime in your neighborhood. Use that information when making your decision.

Is your house a natural target for a burglar?

Even if you live in a low-crime area, be aware that there are certain types of homes that are more prone to burglary than others. For example, ground-level apartments are more likely to be targeted than apartments three or more stories up. Homes surrounded by thick bushes, plants, and trees are favored by prowlers because they offer plenty of places to hide. Old, weak, or cracked doors and windows are easier to break into. A house on a darkened street where the owners are seldom home is a very attractive target. In contrast, if your house has a wide-open lawn on a well-lit street that is posted with "Neighborhood Watch" signs, it is probably not the ideal spot for a burglar to ply his or her trade. Does your home invite or deter crime? The answer will help you make a decision about whether you need a home security system.

Does your homeowners insurance carrier offer discounts for home security systems?

Aside from safety, you may have a financial motive to beef up your home security. Most, if not all, insurers will give you a discount on your homeowners policy premium if you install a home security system. The available discount will vary from one insurer to another. It will also vary depending on what kind of security system you choose. Usually, insurers will give you a 5 percent discount merely for installing dead-bolt locks. A simple burglar alarm is likely to get you yet another 5 percent. If you decide to go with a more sophisticated home security system, complete with monitoring services, then you can expect a discount of up to 20 percent. (In addition to discounts for security devices, you can get discounts for installing safety devices such as smoke detectors or sprinkler systems.) Check with your insurance agent to make sure you're currently receiving any discounts you qualify for, and to see if you can save any more on premiums by installing additional security equipment.

Can you afford a system?

The price of a security system depends largely upon how sophisticated the system is. A typical higher tech solution is a full-perimeter system, which usually includes a series of sensors that, when armed, detect when a door or window is opened, broken, or tampered with. These systems typically operate on the principal that whenever one of the detectors is tripped, an alarm of some sort will sound. It may be a horn, bell, or beep and may be accompanied by flashing lights. If the system includes off-site monitoring, local police will be notified. Additionally, there are a host of other systems that can protect you if an intruder bypasses your perimeter system and succeeds in entering your home. Floor sensors can detect an intruder by the weight of his or her footsteps. Motion detectors sense any significant movements within their range.

The technology that goes into many modern systems is truly amazing, and if cost is not an object, very sophisticated systems are available. But don't let money discourage you until you have shopped around. There are many security systems to choose from, in a wide range of prices. Whatever you are trying to protect, you should be able to find something within your budget that will help you sleep better at night. Consult your local yellow pages, the Internet, or community newspapers for security system professionals and dealers.

Is there anything you can do to minimize the need for a home security system?

There may be steps you can take to minimize your need for a high-tech home security system. If you want to make your home safer and can settle for low tech, there are a number of things you can do.

• In addition to installing dead-bolt locks, replace old, cracked, or hollow doors with doors made of metal or solid hard wood.
• Don't rely on a slide chain to protect you if you are opening a door to see who's knocking. Install a wide-angle peephole device in the door.
• Make sure your sliding glass doors have keyed locks and cannot be lifted out of their frames from the outside. A pole or rod cut to the proper length and laid in the track of the door can prevent it from being slid open, even if the locks are compromised.
• Install removable pins, nails, and/or rods to prevent windows from being opened, and replace old or cracked windows and panes.
• Cut back bushes and trees that surround your house and windows.

Finally, try to create the illusion that you are well protected. Whether or not you have a home security system, purchase adhesive labels that say you do, and affix them to every door and window. Post a "Beware of Dog" sign, whether you have one or not. The illusion that you are well protected may deter a would-be burglar. If you are going to be away from your home, purchase an inexpensive timer that turns a lamp or two on at dusk, and off again at bedtime. It may create the illusion that someone is at home and deter a burglar who is waiting to make his or her move when the home is vacant.

Hurricanes: Are You Protected?

Hurricanes can wreak tremendous damage, devastation and death on a community. If a hurricane warning is issued, homeowners can board-up their houses and try to minimize the damage. But what if a storm damages their home regardless?

The most common homeowners policy - called a homeowners-3 policy or HO-3 - covers damage caused by a hurricane except for exclusions specifically outlined in the policy. For example, damage caused by hurricane flooding is usually not covered. Since policies vary, Insurance.com suggests homeowners review their policies before a storm hits to determine what would be covered.

For anyone whose home may be damaged by a hurricane, Insurance.com offers the following tips to help get back on their feet.

Secure the building with temporary repairs - Fix whatever is needed to make the home habitable and prevent further damage. Be careful not to invest in extensive repairs at this time, as an adjuster must appraise the damage first. Save any receipts so that your insurance company can reimburse you later.

Call your insurance agent to report the loss - Get any information you may need from your agent at this time. If the disaster is widespread, keep in mind that the agent may be very busy. Be patient.

Save receipts - If temporary living arrangements are needed, be sure to save receipts for living expenses, such as food, temporary housing costs, storage, and furniture rentals. Your insurance company should advance you the money for these costs.

Make a list of the damaged property - Try to include makes, models, and serial numbers. Take pictures of the damaged items, if possible. Organize old bills and receipts, if they are available, to establish value and age. Work from memory, if necessary. Don't throw anything away until the adjuster has a chance to inspect and appraise it.

Identify structural damage - Don't forget the garage, sheds, and pool. Look for cracks and missing shingles or roof tiles. You may want to hire a licensed engineer to identify damage you can't see. Have an electrician inspect the electrical system and a plumber review the plumbing system (most policies cover these inspections). Get bids for the repair work.

Have an adjuster appraise the damage - Your insurance agent should arrange this, and there should be no charge. Or, you can hire a public adjuster for a fee. When your adjuster comes, ask for a complete inspection and appraisal. If it can't be completed at one time, arrange for a second look. Be sure to identify all damaged areas.

Fill out the forms - Complete the "proof of loss" forms, which will be sent to you by your insurance company. Return them as soon as possible and keep copies of all forms you send back. Send copies of lists and other documents as needed to prove your losses, making sure to keep the originals.

Thinking About Remodeling?

You may be looking for ways to improve your home. Perhaps you want to upgrade your heating system or replace a leaky roof. Or add on that sunroom you’ve always wanted. Before you get started, however, you'll want to know how that remodeling project can affect your insurance needs.

Update your homeowners insurance

Whether you're updating your kitchen or adding on another room, a remodeling project will likely add value to your home. As a result, you'll want to check the property coverage limits on your homeowners policy to make sure that they reflect any changes you make to your home, no matter how small or large the improvements may be.

And if you're adding on to your house, you'll want the addition specifically mentioned in your policy. If it's not, your insurance company may not provide coverage for damages that occur to the new room.

If you hire someone to do the remodeling . . .

If you hire someone to do the remodeling, you'll want to make sure that he or she is properly insured. Any contractor that you hire should have a certificate of coverage for both workers' compensation and contractor's liability insurance.

Workers' compensation coverage protects you from liability claims that can result from a contractor (or his or her employees) getting hurt on the job. Contractor's liability insurance provides coverage for damages to your property caused by the contractor during remodeling.

If you hire a general contractor who is planning on handing off some of the work to a subcontractor (or if you plan on acting as a general contractor yourself), you'll also want to get a copy of the subcontractor's proof of insurance.

For the do-it-yourself remodeling project . . .

Before jumping into a home improvement project, make sure that you're prepared in case an accident occurs. If someone helping you on a remodeling project is hurt, his or her injuries will be covered under the liability portion of your homeowners policy. You may also want to look into a personal umbrella liability policy, which provides coverage above and beyond your regular homeowners insurance and is especially important if you have significant assets that you need to protect.

Other tips

• Some additional remodeling tips:
• Before you get started, make sure that your remodeling project meets local building codes--otherwise, damages may not be covered by insurance
• Check with your local Better Business Bureau to find out if any complaints have been filed against any contractor you are hiring, and ask to see the contractor's license
• Get copies of the contractor's insurance coverage--have the insurance agency or company send the certificate directly to you
• Check your homeowners policy (or your contractor's insurance policy) to make sure that building materials and other uninstalled items (e.g., carpet, tile, cabinets) stored on your property are covered against theft and vandalism
• Keep your insurance agent up-to-date about any improvements to your home--he or she can help make sure that you are adequately covered at all times

Insuring Your Wedding Ring

It's more than just a fashion statement. A wedding ring is a symbol of everlasting love and commitment. So it goes without saying that insurance is probably not the first thing that comes to mind when you glance down at the wedding ring on your finger. But while insurance can never replace the sentimental value of a wedding ring, it can give you some peace of mind in knowing that it would be covered if something ever happened to it.

Making sure you have proper coverage

Your homeowners/renters insurance policy won't cover your wedding ring if it is lost. However, it will probably cover your wedding ring to some extent if it is stolen. Keep in mind that you'll need to check your policy, since a coverage limit may apply for certain types of personal property (in this case, your ring). If you want to make sure that your wedding ring is covered for loss, or if the value of your wedding ring exceeds the coverage limits on your homeowners/renters insurance policy, you may want to look into purchasing either a floater or a stand-alone policy.

A floater provides you with a specific amount of coverage for your ring based on its appraised value. With a floater, the insurance company has the option of paying the appraised amount or replacing the ring. Keep in mind that more often than not, your insurer will replace the ring.

A stand-alone policy is a type of insurance that is specially designed to protect valuable items. If you purchase a floater or stand-alone policy, however, your insurance company will probably require you to have your ring appraised by a certified jeweler.

Finally, while you're at it, now may be a good time to review the adequacy of your insurance coverage for all of your valuable items (e.g., your engagement ring, china, silver, or crystal). If you need help finding out if your valuables are properly insured, contact your insurance agent or insurance company for more information.

Keeping your ring safe

• Have a jeweler periodically check your ring for loose prongs, worn mountings, etc.
• Whenever you take off your ring, always put it in the same place. That way, you won't ever forget where you put it!
• If you remove your ring when you wash your hands, be careful not to leave it by the sink where it can accidentally fall down the drain.
• Be careful while cleaning or doing household chores. Harsh chemicals can damage precious stones and metals, and a rough blow can easily dislodge a stone from its setting.
• Be careful not to lose your ring when you go for a swim, especially if your fingers are slippery from tanning lotion or sunscreen.