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HomeOne of the most common questions that we are asked in our office is “Why is my dwelling coverage so high?”  We all know that the housing market is not where it used to be. This has been the case for some time and probably isn’t changing any time soon. So why does the insurance company insure your home for more than it’s worth?

Amongst other things, home insurance is there to protect you in event that there is a complete and total loss. Regardless of whether you would purchase a new home or rebuild your home, it doesn’t change the fact that the company who is insuring your home is just that….insuring your home. They aren’t necessarily insuring you to go out and purchase another home, but rather are insuring the home that you currently live in and the coverage is determined by how much it would cost to actually rebuild your home from the ground up.

Here are a few things to keep in mind when considering the differences between Replacement Cost and Market Value:

1. The Market Value for a home generally includes the value of the land on which the home sits. The Replacement Cost of a home does not include any land values, but is only concerned with the home itself.

2. The Market Value for a home is affected by changes in the real estate market. When homes in a particular area are in high demand the Market Value of a home in that area will generally go up. In the same way, when demand for homes in a particular area is low, the Market Value of homes in that area may remain level or even go down. Replacement Cost is not affected by the real estate market but is instead affected by the fluctuations in material and labor costs to build a home. For example, if the cost of material such as lumber, concrete, drywall, and carpet are higher in a particular area, then the Replacement Cost of a home in that area will be higher than the Replacement Cost of the same home in an area where materials are less expensive.

3. The Market Value of a new home generally factors in the cost that was required to build the home new. Replacement Cost, however, is looking at the cost to re-build the home, if it were completely destroyed, using all of the same materials and construction techniques originally used to build the home. The cost to build a new home can be quite different from the cost to re-build a pre-existing home due to access issues, labor efficiencies, economies of scale, debris removal and higher price of materials that may no longer be in common use (such as lath and plaster vs. drywall).

When insuring a home, we always use the Replacement Cost of the home to determine the amount of insurance required as this is what it will cost to replace or repair the home should it be damaged or destroyed. Understanding your coverage and what it means for you is just one of the many things that we offer here at Canyon Lands Insurance. If you are interested in a free quote, please visit our website at http://www.canyonlandsagency.com or give us a call at 480-288-5900. Hope to hear from you soon!

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More than 400,000 winter visitors migrate from their northern US and Canadian homes to Arizona each year, generally beginning in October.  Whether you are coming or going, there is preparation involved in regards to leaving your home unoccupied for several months.   No one wants to come home, whether it’s summer, winter, or fall to a disaster that could have been prevented by taking the time to create and execute a plan that will help protect your home while you are away. Here are just a few things to consider when leaving your seasonal home for an extended period of time.

Shut Off Main Water Supply

Imagine coming home after being on the road for hours or even days.  You finally arrive at 12:21am.  All you want to do is walk through the door, crawl into your own bed, and drift off to sleep.  Instead, you walk through the door and are stopped in your tracks by an overwhelming, musty scent in the air. Your carpet is filthy and each step you take leads you into a swamp that once used to be your living room.   Shutting down the main water valve before you leave your home can be one of the most crucial things that you can do in order to prevent water damage that can be caused by frozen pipes, a ruptured washer hose, leaking supply lines or a dripping water heater.  In addition to this, we also recommend draining your toilets and turning off your water heater.

Turn Off Breakers

Although a large number of fires that occur are associated with human activity, fires in vacant homes do happen.  Aside from your heating system, security system, or outside lighting,turn off all nonessential electrical circuit breakers in your home’s electrical box.  This can minimize the possibility of electrical fires.  Along with turning off your breakers, unplug all appliances both large and small.

Disconnect the Computer

In today’s world, identity theft is one of the fastest growing crimes.  If you have personal information stored on your computer, turning it off and disconnecting it from the internet is a must.

Lock Up  

Although this may sound elementary, be sure to lock all of your doors and windows.  If you have a security system, make sure that it is turned on before you leave.  You can also alert the local police department of your departure, leaving them your contact information and requesting that they add your home to their vacation watch list. If you have an interim caretaker, provide their information as well. You may also want to consider inviting a neighbor to park in your driveway during your time away.

Find more information at http://www.amainsure.com/maturedecisions/protectyourinvestment.html.  Taking these few steps can save you time, money and not to mention, a huge headache.  Be confident that your home is safe the moment you pull out of your driveway.  Peace of mind can be key to enjoying your spring, winter, summer or fall!

Remember as you’re having fun, be safe this summer (image via google)

When most of us think of summer, we don’t think of the increased safety risk associated with everyone’s favorite season.  Along with cloudless skies and outdoor fun, summer brings a new set of safety concerns and homeowners need to take specific steps to safeguard their family, friends, and property from these additional dangers.

Here are 7 tips sure to make your summer as safe as it is sunny.

1.     Secure Your Pool

If you have a pool, you have a problem – you must secure the pool and take serious measures to keep everyone with access to the pool safe.  According to the CDC, of the 3,400 people who drown each year, 20% of them are under the age of 14.  Make sure your pool is secure by erecting a solid barrier around the entire perimeter and installing alarms that will ensure no one can enter unsupervised or unattended.

2.     Supervise Children

Adults don’t realize that it only takes a few moments of inattention for a child’s life to be lost.  This is especially true when children are near a pool, lake, or other body of water.

3.     Don’t Mix Alcohol and Water

If you are doing something around water, like swimming, boating, fishing, or waterskiing, save the drinks for another day.  According to information gathered by the CDC, 70% of adolescent and adult deaths resulting from water recreation involved alcohol.

4.     Get Certified

From drowning to dehydration, the dangers of this season are present in almost every summertime activity.  The best way to protect your family is prevention.  The second best way is to be able to respond immediately in the right way to preserve life.  Becoming certified in basic first aid and CPR will give you the skills and knowledge you need if the worst happens.

5.     Mow with Care

According to the Insurance Information Institute, more than 75,000 people must be taken to the emergency room each year because of lawn mower related injuries.  Almost all of these are caused by human error.  Make sure you know how to use your mower properly and that you are vigilant in your attention while the mower is on.

6.     Dress Appropriately

This holds true no matter what you are doing.  If you are mowing the lawn, wear clothing that protects your legs from flying objects.  If you are hiking, wear layers.  If you are lounging by the pool, wear sunscreen and a hat.   If you are in a boat, wear a life jacket.  If you are using the grill, wear protective gloves and a heavy apron.

7.     Grill Responsibly

Grills present several possible dangers ranging from serious burns to starting house fires.   To protect your family and property, make sure that your grill is stored and used in a safe location.   Never use a gas or charcoal grill in the house and store all gas canisters outside and away from the house.  Check to make sure that all grill components are working properly before using the grill each time and keep a fire extinguisher close by in case there is an emergency.

Summer is supposed to be about having fun, being on vacation, and enjoying the best of what nature has to offer.  Keep your summer fun and carefree by paying attention, taking the right precautions, and eliminating those risks that you can control.

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Do you know where the hidden dangers in your home are located? (image via google)

When it comes to keeping our homes safe and secure, we all know the basics.  Don’t leave candles unattended, test your smoke detectors, and clean out the lint tray in the dryer.  But there are many other dangers lurking in our living rooms and cavorting in our kitchens that can be even more dangerous because we don’t think of them and therefore, don’t take the steps to protect against them.  June is Home Safety Month and to help you create the safest and most secure home possible, here are some of the most common hazards that may be hiding in your home.

Smoke Detectors without Batteries

It is great to have smoke detectors, but they need to be operational.  More than two-thirds of all home fire fatalities occur in homes without working smoke detectors according to the Consumer Product Safety Commission.   Note: this fact doesn’t say homes without smoke detectors; it says homes without working smoke detectors.  Check your smoke detectors to ensure that they contain batteries and that the batteries are working.

Clutter

Clutter can drive you crazy but it can also endanger your life.  It might sound strange but there are several ways that living in a cluttered environment can pose a danger.  First, you increase your risk of tripping and falling when the pathways through your home are not clear.  Second, clutter can provide a great source of fuel for home fires.   Third, clutter can make it difficult to navigate through your home in situations with poor visibility.  This can impede your ability to evacuate in the event of a fire or find a flashlight if the power goes out.

Blocked or Permanently Closed Windows

Take a minute to look around your house from the perspective of having to get out of the house in the event of a fire.  Pay particular attention to the windows.  Could you get to at least one window in every room, get it open, and get out of it if there was a fire?  Blocked windows and windows that have been nailed or painted shut can pose a danger by blocking an intended evacuation route from a room. Make sure each room has an accessible window that provides an exit in the event of a fire or other emergency.

Frayed Cords on Electronic Equipment

When was the last time you routed around behind your entertainment center to ensure that all the cords coming out of your various pieces of electronic equipment are in good working order?  Odds are the only time you think about the cords plugged into your outlets is when you plug something in or unplug it.  Unfortunately, cords can become frayed over time which creates a very dangerous situation.  Add checking your cords to your annual safety check.

Combustible Kitchens

Stand facing your stove and look at what is within 3 feet of the heating sources.  If your house is like most houses, you will see paper towels, pot holders, recipe cards, magazines, papers from your child’s school, and several other combustible materials.  This may explain why almost half of all home fires start in the kitchen.  Keep a combustible free zone around the stove and oven to decrease your risk of becoming a fire statistic.

Dirty Dryers

Everyone knows that cleaning out the lint tray in the dryer helps prevent house fires.  However, just cleaning the lint tray isn’t enough.  Dirt and lint still builds up inside the machine increasing the risk of fire.  Clean this out at least once a year and have it professionally cleaned on a regular basis.

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Double check these items to make sure your home is safe (image via Arrow Fence Co)

June is National Home Safety Month and the National Safety Council, in conjunction with partners across the country, is encouraging everyone to participate by doing their part to make their home a safer place to live. 

Here are 8 things you can do this month to reduce the risk of preventable injuries and property damage.

1.     Check Your Smoke Alarms

This is something you are likely to hear several times a year, but there is a reason that it comes up so often – it is important.  According to the Consumer Product Safety Commission, two thirds of home fire fatalities occur in homes without working smoke alarms.  Check that each alarm has good batteries and that the alarm itself is in good working condition. Make sure you have enough smoke detectors to provide proper protection for all members of your family.

2.     Have a Fire Drill

Your family needs to practice escaping from a home fire for the same reason that children practice evacuating their school building in the event of a fire; practice makes it easier to do what you need to during a crisis.  The best way to protect your family in a fire is to make sure they know what to do and how to get out of the house.

3.     Make a List of Emergency Phone Numbers

We sometimes take for granted that everyone knows what to do and who to call when there is a crisis but this isn’t always the case.  Make a list of important phone numbers including the police and fire station, close family members, the poison center, neighbors, and family doctors and dentists.

4.     Create a Basic Emergency Plan

Make a plan for basic emergencies that lets all family members know what to do and where to go when something happens.  Your basic plan should include an outside meeting place, the location of basic emergency supplies like flashlights, and the process for shutting off utilities like water and electricity.

5.     Do More than Spring Clean

Clean all lint out of your dryer and exhaust hose.  Have your furnace cleaned and inspected.  Get your septic system pumped.

6.     Keep Things Grounded

Make sure all major appliances like refrigerators, dryers, washers, and dishwashers are grounded.  Locate and test all the GFCI outlets in your house and make sure other family members know where they are.  Don’t overload outlets.

7.     Place Emergency Supplies Throughout the House

You don’t just need a fire extinguisher in the kitchen or near the woodstove.  To be safe, put a fire extinguisher, carbon monoxide detector, flashlight, and first aid kit on each floor of the house.  Make sure all family members know where these supplies are located and how to use them.

8.     Eliminate  or Mitigate Risky Areas

If you have a swimming pool, make sure there is a solid fence around the pool that is locked when you are not paying attention to it.  If you have a hot tub, keep it covered when it is not in use.  Protect your family and your neighbors by making it difficult to use these things without you being present.

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