Jefferson County Mutual Insurance

ARE YOU COVERED?

With the current economic situation, many homeowners are looking for ways to trim their household budget, including insurance premiums. One of the ways you may be considering lowering that cost is by decreasing the coverage for your home. This may seem like an easy way to cut costs, especially when hearing reports of housing prices being as much as 30% lower than in recent years.

A common misconception is that your agent determines the level of coverage needed for your home by using market price as a guideline. In fact, what you as a homeowner need to be concerned with is the current replacement cost. A replacement-cost policy provides just that - sufficient coverage to rebuild your home if necessary. Market value and rebuilding cost are two completely separate considerations.

In fact, many people would be surprised to learn that while housing prices are down, the cost of construction materials is actually up 36% since January 2004 and increased 10% in 2008 alone according to the US Department of Labor's Producer Price Index.

To be safe, we would encourage you to contact your agent to review your current coverages to be sure they are adequate. If you have made any changes to your home, such as building an addition or installed hardwood floors, you should contact your agent, whether your policy is due for renewal or not. That way, shoud you suffer a major loss, you will be able to rebuild your home to the same specifications as you have now.

Many common homeowner claims are also easily preventable by performing routine maintenance and upkeep around the home and by using common sense practices in our daily activities:

Kitchen fire – The majority of fire losses originate in the kitchen due to food that is left unattended on the stove, or ignition of grease. Never put a grease fire out with water. Use baking soda or flour instead.

Careless smoking – Always pay attention to how cigarettes are discarded. Do not discard in trash cans where other debris can ignite.

Candles – Never leave a room with an unattended, lit candle.

Fireplace ashes – Never discard ashes in a combustible container or store in or around the house or garage. Ashes can remain active for days and combust when fuel and air are introduced. Store in yard away from your home, or introduce water into the container to insure that the embers are extinguished.

Dryer fire – Every year you should clean the lint build up from under your clothes dryer. The motor can ignite the lint when an accumulation occurs.

Washing machine hose – Annually check the washing machine hoses for dry rot, cracking and tightening. Hoses should be replaced every couple years. Water should be turned off to unit when not in use.

Refrigerator ice maker line – Often these lines become pinched and start to leak causing damage to the flooring material and cabinets. Check lines annually.

Valves to sinks and toilets – As your home ages, you should continue to check all plumbing fixtures and connections. Look for corrosion and rust around valves. If your home is over 20 years, consider having a plumber check and replace all connections and hoses.