home owners policy

5 Home Renovation Projects for the best ROI

Posted on by Shield Insurance Agency

5 Home Improvement Renovation Projects That May Have the Biggest Return on Investment

Conventional wisdom has long held that kitchens and baths sell homes. Those are also two of the more expensive areas to tackle for home renovation, but if you make sound design decisions and choose the right materials, you could end up making your home more appealing to potential buyers – and a more enjoyable place for you to live. And, if you’re handy, some of these ideas may even be great DIY (do-it-yourself) home projects.

A study from the National Association of Realtors confirms that kitchens and baths still top the list of interior home improvement projects that appeal most to potential buyers. The survey ranked the projects by the percentage of the remodel cost that would likely be recovered based on the home’s resale value after the remodel. These five home improvements can potentially provide the biggest bang for your buck when it comes to ROI.

Complete Kitchen Renovation

  • National Association of the Remodeling Industry’s (NARI®) cost estimate for the project: $68,000
  • REALTORS® estimated cost recovered: $40,000
  • Percent of value recovered from the project: 59%

The look and feel of a kitchen can serve as shorthand for how up-to-date the owners have kept a house. Potential buyers have been known to rule out homes based on kitchens alone. Stainless steel appliances and granite countertops continue to be on many buyers’ checklists, especially those who want to move right in and start entertaining.

The top reason for renovating a kitchen, cited by 24% of homeowners, was to upgrade worn-out surfaces, finishes, and materials. According to the Remodeling Impact Report, 10% of realtors said a completely renovated kitchen most recently helped them clinch a deal, resulting in a closed sale.

Kitchen Upgrade

  • NARI’s cost estimate for the project: $38,300
  • REALTORS® estimated cost recovered: $20,000
  • Percent of value recovered from the project: 52%

A less expensive alternative to completely gutting a kitchen is an upgrade to the current design. Replacing dated appliances, refinishing cabinets, and changing out tile backsplashes are some cost-effective updates that can still modernize a kitchen and make it more appealing to buyers.

While 12% of realtors suggest that sellers completely remodel their kitchens, 57% have suggested a kitchen upgrade. Twenty percent of realtors have said a kitchen upgrade most recently helped complete a deal. In addition to the resale value, kitchen improvements can also help you enjoy your time in your home, with better functionality and livability cited by 29% of respondents as the most important result of their remodel.

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Bathroom Renovation

  • NARI’s cost estimate for the project: $35,000
  • REALTORS® estimated cost recovered: $20,000
  • Percent of value recovered from the project: 57%

Bathrooms are another place where a home can show its age, and potential buyers may hesitate at the cost and work involved in remodeling an outdated bathroom after buying a home. Still, while 33% of realtors have suggested sellers complete a bathroom renovation before completing a sale, only 4% said the project most recently helped them complete a deal.

New Bathroom

  • NARI’s cost estimate for the project: $60,000
  • REALTORS® estimated cost recovered: $30,000
  • Percent of value recovered from the project: 50%

A remodeling decision often driven by function rather than a desire to modernize, adding a new bathroom is nearly as expensive as completely remodeling a kitchen, but with less of a “wow factor” for potential buyers. With only 5% of realtors suggesting that sellers add a bathroom and only 1% saying the project most recently helped clinch a deal for them, this may be one project that makes more sense for homeowners planning to be in their homes for several years.

New Master Suite/Owners’ Suite

  • NARI’s cost estimate for the project: $150,000
  • REALTORS® estimated cost recovered: $75,000
  • Percent of value recovered from the project: 50%

The costliest project on the list, a new master suite or owner’s suite, is another project that may have greater value to you while living in the home rather than in making it attractive to future buyers. Sixty-five percent of respondents said they have a greater desire to be home since completing the project. Only 3% of realtors have suggested that sellers complete an owner’s suite before attempting to sell, and less than 1% said the project most recently helped clinch a deal for them.

Still deciding where to focus your budget for home improvement? Make a list of the reasons you’re considering each project, and be sure to consider the impact on your home insurance, too. Want to attract future buyers and increase the value of your home? Kitchens and bathrooms remain a good place to start. If you plan to remain in your home for a number of years, you may want to update a bedroom, add a bathroom, convert a basement to a living area or tackle any other project that will add to your own appreciation of where you live.

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How to Handle 10 Common Home Emergencies

Posted on by Shield Insurance Agency

You love your home. Make sure you know how to keep it — and you and your loved ones — safe and sound. Here are 10 common home emergencies and how to handle them.

1. Kitchen fire.

The most common culprit of a kitchen fire is an inattentive cook. It’s never a good idea to leave your stovetop or oven unattended when food is cooking. Prevent kitchen fires by cooking during times when you won’t need to step away from the kitchen.

If a kitchen fire happens, take these steps:

  • For a small grease fire, try smothering it with baking soda or sliding a metal lid over the pan to suffocate the fire. Turn off the stove. Never use water to put out a grease fire; it can be dangerous and make the situation worse.
  • For an oven fire, keep the oven door closed and turn off the oven.
  • If the fire continues, help everyone to evacuate the house, close the door behind you and call 911 from a safe distance from your home.

Also, remember to regularly check your smoke detectors. Put a reminder on your calendar to test all the smoke detectors in your home monthly, and promptly replace batteries when needed. Consider replacing all your smoke detectors every 10 years.

2. Water leak.

Whether it’s a slow drip or a steady stream, the best thing you can do is know where your home’s main water valve is located — typically it’s in the basement or near the front of the house — which controls the flow of water into your home and learn how to turn off your water in an emergency to prevent water damage to your home. Then you will need to call a plumber for assistance.

If your ceiling is leaking, gather buckets or plastic sheets under the leak to help prevent water damage. Then try to track down the source of the leak. If it’s likely a roofing issue, it’s best to call a professional right away to assess the situation and help with repairs.

Finally, take steps to insulate your pipes before the weather turns cold to prevent pipes from freezing and bursting.

3. Water overflow.

Anything that holds a lot of water in your house can potentially overflow into the surrounding area. Here’s how to handle a water overflow

  • When a toilet overflows, find the valve behind the toilet near the wall and turn it off to stop the flow of water. Then, quickly mop up any standing water. Finally, try to determine the cause. Look for issues with the fill tube and float as well as for clogs or other issues that could be keeping the toilet from draining. If you’re still stumped, call your plumber for assistance.
  • When your bathtub or sink overflows, first stop the flow of water — whether it’s as simple as turning off the faucet or by shutting off the main water valve to your home if the faucet is broken. Then, quickly mop up standing water to prevent further damage. If the faucet is broken, make necessary repairs before using that sink or bathtub again.

4. Flooded basement.

Whatever the cause, if your basement is flooded with water, the most important thing is that you NEVER enter a flooded basement. For your own health and safety call your utility companies first, and stay away until they have turned off the electricity and gas. Then, it’s best to hire a professional to help you clean up, mitigate the damage to your home and help prevent you and your family from becoming sick. You will need to throw out anything the flood water reached unless it can be thoroughly cleaned and disinfected.

5. Power outage.


When the power goes out, check to see if nearby homes and streetlights still have power. If their lights are still on, check your breakers. If the neighborhood is dark too, then call your power company, or visit their website, to report the power outage and ask for an estimated repair time

Stay safe by following these steps:

  • Use flashlights. Don’t light candles. Keep your flashlights in an easy-to-find location, test them monthly, and keep spare batteries in a known and accessible location. If you don’t have a flashlight, your cell phone can help provide some light to help guide you safely through your home.
  • Keep your refrigerator door closed. Food can spoil in a refrigerator after the power has been out for more than 4 hours.
  • Turn off or unplug electronics. If the lights were on or you were using any electrical equipment, like a computer, when the power went out, switch your lights off and unplug your electronics.

If you anticipate having a power outage that lasts for days, such as after a hurricane, consider investing in a generator that can help provide electricity to essential things in your home, like a refrigerator or freezer. Be sure to follow all safety instructions while using it.

6. Carbon monoxide.

Carbon monoxide is a clear, odorless gas that can cause severe illness or even death. The symptoms are often like the flu without a fever. If you think you have carbon monoxide poisoning, call 911.

The best way to prevent a carbon monoxide emergency is to:

  • Use carbon monoxide detectors and test them once a month to make sure they’re in good working order. Check the manufacturer’s instructions to learn how often to replace your carbon monoxide detectors.
  • Have gas appliances inspected at least once a year.
  • Properly vent all gas furnaces, water heaters and fireplaces.
  • Follow all safety instructions for gas-powered appliances, such as space heaters and generators.

7. Gas leak.

When a natural gas line leaks, you may smell gas (it smells a lot like rotten eggs). While natural gas lines don’t leak often, you should always take it seriously if it does. A gas leak inside your home can make you sick or even lead to an explosion.

If you notice the smell of natural gas inside your home:

  • Go outside IMMEDIATELY and call the utility company and 911.
  • Don’t try to find the leak.
  • Don’t turn on or off any electrical appliances.
  • Don’t smoke or have any open flames nearby.

8. Broken glass.

Whether it’s a cracked window or a smashed dinner plate, broken glass can be a difficult mess to clean up. Whenever possible, take actions to prevent it, such as closing shutters, blinds and curtains ahead of severe weather or handling glass objects with care. But when it happens, here’s how to clean up broken glass safely:

  • Don’t handle glass with your bare hands. Put on thick or rubber gloves if you have them or use a tool like a piece of cardboard or stiff paper to help you scoop up the large pieces of glass.
  • Next, use large tape, like duct tape, to help you pick up smaller pieces of glass. Because broken glass can travel farther than you might expect, be sure to use your large tape on the surrounding area, too.
  • Finally, mop or wipe up the entire area with wet wipes or doubled-up paper towels. If the glass is in your carpet, thoroughly vacuum the area using a hose attachment and move it in different angles and directions to get as much glass out of the carpet fibers as possible.
  • If the window is broken, you can seal it temporarily by taking a trash bag and cutting it with scissors to fit the window. Tape several layers of this plastic bag to the window’s frame with duct tape. Then immediately schedule a window repair or replacement.

9. HVAC goes out.

When your air conditioning or heating decides to quit, your first call should be to a technician who can inspect it, and if needed, repair or replace it as soon as possible.

If your A/C goes out during warm weather, take steps to keep your body temperature stable to prevent heat stroke and stay comfortable. Here are some things you can do:

  • Drink ice water often and avoid drinking alcohol. Alcohol can raise your body temperature.
  • Eat foods that are easy to digest, like fruits and vegetables.
  • Take a washcloth and rinse it under cold water, then put it on your neck, wrists or behind your knees to help keep your body cool.
  • Consider living in the lower level of your home since heat rises. For example, it may be more comfortable to sleep downstairs instead of an upstairs bedroom.

If your furnace stops working during cold weather, stay warm and safe with these tips:

  • Add layers to your clothing.
  • Don’t use your oven for heating.
  • Find a small area inside your home that you can heat with a fireplace or electric space heater. However, someone should stay awake while either of these are used to make sure there aren’t any issues. Be sure that your fireplace has proper ventilation to prevent carbon monoxide poisoning.
  • Hang curtains, quilts or bedspreads over doors and windows.

10. Ant or rodent infestation.

If you have unwelcome house guests that have more than two legs, it’s time to assess the situation so you can send them packing.

  • After you’ve spotted a mouse, walk the perimeter of your home — both on the inside and outside — and look for any signs of mouse activity (for example, mouse droppings, chewing or nests) and look for any small hole or crevice where the mouse could be entering your home. Cover any entry points with sealant or wire mesh. Then, set a series of mouse traps. If you continue to have issues, call a professional right away.
  • When you’ve found a trail of ants, remove them and thoroughly clean anywhere you think they’ve been with a vinegar spray to help remove their ant trail scents. Look for tiny gaps or cracks near windows, doors and floorboards, where the ants may be entering your home. Set up ant traps and consider calling a professional who can determine if there’s an ant nest near your home. If you have large black carpenter ants, call a professional immediately since these ants can cause more damage to your home.

References:
– WebMD
– Familyhandyman.com

Contact your Shield Insurance Agency for complete details on your home insurance coverage and discounts.

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8 Lesser-Known Home Insurance Facts

Posted on by Shield Insurance Agency

8 lesser known home insurance facts: what you should know

Having home insurance can help keep you financially sound when disaster strikes. It covers damages to your abode, protects your belongings, and safeguards your liability — but there are more obscure areas of coverage you may not be aware of. That’s why we’ve compiled a list of 8 lesser-known (but nevertheless crucial) home insurance facts you should know about.

1. an insurer cannot cancel your home insurance policy without a good reason

If your policy has been active for more than 60 days, your insurer cannot legally cancel it, unless you fail to pay your premium, lie on your application, or commit fraud.

Your insurance company can, however, decide not to renew your policy — typically around the one-year anniversary of its start date. In most states, a homeowners insurance company has to give at least 30 days’ notice to the insured as well as an explanation for why the policy has been non-renewed.

If you receive a notice of non-renewal, don’t fret! It doesn’t necessarily mean you did anything wrong, nor does it mean you won’t be able to find insurance elsewhere. It could be that coverage is simply no longer available in your region, or your property no longer fits your insurer’s guidelines. In any case, there are options at your disposal and ways to bounce back if your home insurer decides not to renew your policy.

2. certain dog breeds can make it difficult to buy home insurance

No one knows how slobbery and cuddly your wolf-coyote hybrid is better than you. But you might run into complications when trying to find adequate homeowners coverage for your beloved pooch’s breed. The average homeowner’s insurance policy includes liability coverage for all household members, which is why insurance companies are on guard when it comes to particular dog breeds they’re willing to insure — especially when you consider the fact that dog bites account for a third of all liability claims, each averaging $30,000. For this reason, most home insurers won’t provide coverage if you have a pit bull or the aforesaid wolf hybrid. Other blacklisted breeds typically include:

  • Rottweilers
  • German Shepherds
  • Akitas
  • Staffordshire terriers
  • A cross-mix of any of the above breeds

Rules for how insurers can regard certain dog breeds vary by state. In Michigan, for instance, an insurance company cannot deny coverage based on your canine’s breed alone, but you may see a higher premium.

3. your credit may have an influence on your premium

As you may already know, your credit history wields influence in various venues of your financial life — from apartment rentals to the interest rate on your leased car. But did you know it could also affect your home insurance premium?

Roughly 85 percent of home insurers use certain attributes of your credit score to create what is called a “credit-based insurance score” (CBI). That’s because studies show a strong correlation between someone’s financial risk and the likelihood that he or she will file a claim.

This isn’t necessarily a bad thing though. According to the Property Casualty Insurers Association of America, studies have shown that most policyholders get a better deal when CBI scores are used to determine a premium since there’s greater accuracy.

However, there are a few states, including California, Massachusetts, and Maryland, that prohibit insurance companies from factoring in a credit history to set policy rates. If you live in a state where the practice is permitted, you have the right to obtain your score through LexisNexis, and learn how different factors were used to determine your policy rate.

4. your lender can restrict the size of your deductible

The deductible is the amount you agree to pay for a loss before your insurance coverage kicks in. Many homeowners try to earn savings on their premiums by raising their deductible. But mortgage lenders typically won’t allow you to set your deductible at more than $1,200. That’s because your lender has a stake in your property too, and should anything happen to it, they want to have the peace of mind (much like you do) that the necessary repairs will be covered.

Moreover, they will likely require that they be listed as the “loss payee” on your homeowner’s policy — which means that if disaster rears its ugly head, the reimbursement would go to them, where they’ll ensure it’s used to repair the damage or pay off the loan.

5. maintaining a home inventory is paramount

Taking stock of all your belongings (that’s right, all your belongings) is very important. Not only does a home inventory give you an idea of how valuable your belongings are, but it’s also a helpful way to determine a sufficient personal property coverage amount. Additionally, having a record of your stuff can be very useful during the claims process if you ever experience a loss.

Recording the details of your items — from brand and model, to purchase price and serial number — is no simple task. But following some useful home inventory guidelines could mean the difference between financial hardship and quickly getting back on your feet if you ever need to file a claim.

6. you can reopen a claim after you’ve received reimbursement

If your home is damaged by a windstorm or fire, your homeowner’s insurance company will assess the loss, and reimburse you to repair or replace the damaged portion. But sometimes you may discover additional damage that had gone previously unnoticed. Luckily, you may be able to reopen the claim so that any supplementary damage can be addressed.

Bear in mind that, depending on the state in which you live, claims for damage usually have to be filed within a year of the loss date. If you’re ever unsure, your best bet is to contact your insurer or your state’s department of insurance.

7. your home remodeling project isn’t automatically covered

Thinking of building a front porch or constructing an in-ground swimming pool? If so, it’s always wise to notify your homeowner’s insurance company before you begin your project.

That’s because you’ll likely need to update your home insurance policy to reflect the additions and determine whether you’ll need financial protection during the course of the project. If you fail to do so and the project is damaged in the process, your renovation may not be covered. Additionally, you run the risk of getting dropped by your home insurance company. For this reason, it’s best to be totally up front with your insurer.

And before you commence the remodel, make sure all contractors and subcontractors involved carry their own insurance and ask to see physical copies of it. That should include both worker’s compensation and general liability policies. If they don’t have sufficient coverage, a worker could sue you if he or she gets hurt on the job.

8. adding home safety features could lower your premium

Many home insurance companies (including Esurance) offer discounts if you outfit your pad with security features, such as burglar alarms, smoke and carbon monoxide detectors, and water safety systems. That’s because these safety devices help safeguard the home against common perils, thus reducing the likelihood that you’ll have to file a claim.

In addition, you could earn savings if no one on your policy smokes, if your roof has hail-resistant shingles, or if you install storm shutters on your windows’ exteriors. The fewer risks there are, the more affordable your insurance rate is likely to be.

And at Esurance, the perks don’t just end there. For starters, you could earn savings the moment you purchase a policy with us, and if you go just one year without filing a claim, you’ll see your premium continue to go down. Plus, if you do have to file a claim (hey, it happens), our claim forgiveness program will prevent your premium from hiking up.

Get a fast, free homeowners quote today and learn about our other myriad discounts as well as wide-ranging coverages customized to fit your lifestyle.

Have questions or concerns about homeowners insurance? Feel free to give us a ring at 616-896-4600, where our agents are here to help you along the way.

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Unveiling the Secrets to Getting the Best Coverage for Your RV

Posted on by Shield Insurance Agency

Shield Insurance Blog | Recreation Vehicle | Start A Quote Today!

ATVs, snowmobiles, dirt bikes, etc… All of these recreational vehicles can be risky to operate for the riders, passengers, and those around them. They are also very fun and one of the perks of living in a state where it snows!!! Thankfully, you can insure these recreation vehicles as you would an automobile.

Just like an auto insurance policy, on a recreational vehicle policy, you would receive:

  • Bodily Injury Liability
  • Uninsured/Underinsured motorist
  • Either Medical pay or Medical benefits coverage
  • Physical damage (comprehensive & collision) — optional
  • Roadside – optional
  • Carried contents and Accessories – optional

A lot of these coverages are only available on an ATV or RV policy. For instance, if you decide to not insure your snowmobile in the summer with at least storage coverage, and the garage that it is in burns down, your homeowner’s policy will not cover it! OR, what if you or your passenger are hurt after having an accident on your ATV, you may have NO coverage for those medical bills!

Recreational vehicles aren’t always covered

Did you know that not every insurance company will allow you to insure recreational vehicles such as ATVs, snowmobiles, dirt bikes, etc… on your homeowner’s policy? Did you also know that coverage on a homeowner’s policy is very much lacking in comparison to a separate ATV/RV policy?

Lately, I have been hearing that quite a few banks have been suggesting clients insure their newly purchased recreational vehicles on their homeowner’s policy so they don’t have to purchase another separate policy. Not only may that person be out of luck depending on the company, but most companies only offer liability coverage and/or physical damage coverage. No roadside, no uninsured/underinsured motorist, no medical coverage if injured in an accident, and there tend to be more exclusions than your typical ATV/RV policy.

Generally speaking, depending on driving history and what type of recreational vehicle is owned, insurance policies for them tend to run cheaper and they are always worth the money.

It can get confusing, but give our office a call. We are here to help and will make it all seem pretty simple. 616.896.4600

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