SEARCHING FOR A SECOND HOME
Items to Consider
- Where is the home?
– Near water? (Elevation Certificate)
– Higher Hazard Area: Wildfire or Hurricane?
– Is it near Fire Department infrastructure? (protection class)
– Construction (not a homeowner’s product)
Does it need work?
Hiring GC or not?
– To be purchased by – LLC, Trust, Personal name?
Congratulations! You Bought a Home – What’s Next?
- Set up a team to care for the home (All should give COI with AI)
– Care Taker / Property Manager
– Emergency Contacts
– Plumber, Electrician, Etc.
- Prepare for a natural disaster
– Boards for windows and doors
– Hurricane / Wildfire Protection from Insurance Company
– Tree Removal
- Purchase Insurance: Evaluate Economics of Scale with Insurance Policies
– High net Worth vs. Standard Market
– Increase your Umbrella Liability Limits.
High Net Worth (HNW) Versus Standard Market (SM)
- HNW offers Guaranteed Replacement Costs.
- HNW has dedicated Claims infrastructure with teams offering white glove service, SM will hire a 3rd party. They are good but will not be as seamless.
- In the event of a total loss HNW offers a Cash out option – you could take the money. SM makes you rebuild (Jewelry is the same).
- HNW will cover water / sewer and backup at the full amount of the claim – SM generally is limited at $7,500.
- Loss of use – supplemental payments for charges incurred if you were displaces from you were displaced from your home: HNW will cover this for reasonable expenses and SM has a cap to this coverage (20% of dwelling coverage).
- Versus Surplus Market there is a greater discrepancy.
Recommended Steps to Lower Risk
- Top 5:
– Central Station Burglar.
– Central Station Fire.
– Low Temp Monitor.
– Water Flo System – Closes and shuts off the master plumbing valve with Alarm.
– Personal Property Inventory (video or spreadsheet).
- Utilize your Insurance Company:
– Property Manger after storm.
– Wildfire protection – spray fire retardant on home.
– Inspection – Complete the recommendations.
Risk Management Steps
- Guard / Gated Community
- External Perimeter Security – 24-hour monitor through TV cameras / detection system or 24 hour security guard.
- 24-hour signal continuity – communicates with Central Station in the event communication is interrupted.
- Full-Time Caretaker – for Primary Residence – Caretaker living at residence year-round.
- Part-Time Caretaker – for Secondary Residence.
- Lightning Protection
- Perimeter Protection Gate – House is protected by gate that is controlled by lock or electronic gate.
- Seismic Shut-Off Valve – Automatic shut off valve to gas lines in the event of an earthquake.
- Shutters – Shutter or Impact glass on all exterior openings.
- Back-Up Generator
- Gas Leak Detector
- Residential Sprinkler
- Sprinkler Water Flow Alarm.
Selling the Home!
- Transfer within the Family
– Make sure Named Insureds are correct (Trusts, LLC, etc.)
– Flood Insurance (grandfathering policy).
- Other Notes
– Airbnb is excluded from most insurance policies.
– Renting is not recommended.
Providing Peace of Mind Through Proactive Service
Deland, Gibson: a Trusted Choice, Five Star Accredited independent insurance agency. Established in Massachusetts in 1900, Deland, Gibson is a 4th generation family-run insurance agency that has thrived working as a trusted advisor for its client base. We work with individuals and businesses to lower their Total Cost of Risk. We analyze a client’s direct and indirect costs and implement risk reduction plans to address areas of business, hazard, or strategic risk.