Blog Archives

Will Home Insurance Cover Burst Pipes from Freezing?

11/21/2014

As freezing temperatures are expected to move across the state, Ralph Hudgens, Georgia Commissioner of Insurance, wants to remind people that houses damaged from high cold temperatures may seek financial relief using their homeowners insurance policy.

What Will a Policy Pay For?
A typical homeowners policy pays for damage caused by freezing. They might also pay for damage to carpets, possessions and furniture; however, damage that enters through an outside source such as a main water line might not be covered. Damage that comes from outside sources has sometimes been called seepage or flood, which standard homeowners insurance will not cover. Repairs to pipes on the property may not be covered if they were done outside.

Caution in the Cold Weather
When it comes to homeowner's insurance claims, water damage is one of the most commonly misunderstood claims, according to Insure.com. Insurance usually covers burst pipes. However, if the insurer decides that poor drainage caused the issue, a claim could be denied because this is a maintenance issue that is not covered.

How to Be Covered?
Most home insurance companies cover the damage of a burst pipe provided the homeowner can prove they took precautions to keep the pipe from freezing. Many companies will say that coverage applies if the individual shut off the water supply and drained their system. In addition, they need to have maintained the heating in their home, even when the house was unoccupied.

Insulating pipes reduces the chances of a frozen pipe system. When ice expands, combined with weakened pipes, the high pressure of flowing water can burst a pipe within seconds of operating a faucet. Keeping the water running during cold weather decreases the chances of burst pipes. Additionally, notifying the utility company that the water was left running to avoid bursting pipes may lead to a reduction of the water bill during the cold weather. However, always check ahead of time.

Call Pachuta Insurance Today @ 706-769-2262
Sources:
SfGate.com
WJBF News Channel 6

0 Comments

Why Car Insurance Rates Continue to Skyrocket

11/14/2014

0 Comments

Car crashes add a high price to auto insurance because of how much compensation is needed to cover the accident. The average bodily injury claim costs $14,653 while the average liability claim costs $3,073, which came from the Auto Injury Claims Study. According to the Association for Safe International Road Travel, 1.3 million people are killed in crashes every year, which results in an average 3,287 deaths every day. However, how much you pay depends on several factors.

Expensive Car Driven
Expensive cars cost more to replace and repair, so it will affect an individual's auto insurance rate. Luxury performance vehicles such as the Mercedes, Jaguar, Porsche, Maserati, Corvette and Ferrari cost more to repair even in minor accidents, which raises an individual's premium.

Most Frequently Stolen Vehicles
Aside from expensive cars, driving vehicles that were most likely to be stolen added to the price of car insurance. In 2013, the vehicles most frequently stolen included:

Honda Civic
Honda Accord
Chevrolet Pickups (full-size)
Ford Pickups (full-size)
Nissan Altima
Dodge Caravan

At the beginning of 2011, car insurance companies dropped their rates anticipating the government's LAPSO legislation. Companies hoped this legislature would reduce the number of fraudulent claims, particularly for whiplash. However, these reforms did not greatly impact the market, and did not result in a large reduction in insurer costs. Fraudulent claims add approximately, $141 to the average premium.

Finally, your credit score could impact the insurance rate. People who leave their social security number off their quote—which you can do—does not consider DUIs and speeding tickets, and the verified premium will cost more than the quoted price. To lower your auto insurance rates, practice safe driving and avoid moving violations. Avoid late payments and criminal convictions to favorably impact your rates.

Call Pachuta Insurance Today @ 706-769-2262

Sources:
Property Casualty 360
Daily Finance

0 Comments