UNDERSTANDING THOSE PESKY DEDUCTIBLES-BE AWARE AND BE COVERED

By
Services for Real Estate Pros with Liberty Mutual Insurance

Texas homeowner policies are not the same from company to company. 

Insurance companies used to have the same standard policy years ago, but that has now changed due to the significant losses Texas insurers have experienced.  I believe that MOST of you have already noticed, that some companies have more than 2 deductibles (Clause 1, Clause 2, and Clause 3).  They tend to use the wording such as "tropical cyclone" and what that means is that if a storm gets named (e.g., Hurricane Katrina, Rita, Tropical Storm Allison), it becomes a "tropical cyclone." And, usually the homeowners deductible is twice as high as the other deductibles. The rate may appear to be "cheaper" but in the event of a Hurricane (when a consumer really needs coverage) their out of pocket expense is higher.  This way the insurer has less risk in a Catastrophe.

Liberty Mutual is one of few insurers still offering a 1% deductible on ALL perils, including wind and hail. Is a 2% deductible ever acceptable? Sure, as long as the consumer understands that their out of pocket expense at the time of a loss is indeed higher. Granted, the average homeowner, does take 7 to 8 years to file a claim, thus at Liberty Mutual we do not hesitate to quote a 2% windstorm deductible to those that have done the math. Personally, I prefer and highly recommend a 1% deductible because reality IS, that there really ARE big bad storms that could do really bad damage.

What are the "other" perils? In no particular order, they are:

  • Fire,
  • Smoke,
  • Vandalism/Malicious Mischief,
  • Riot/Civil Commotion,
  • Aircraft/Vehicles,
  • Theft,
  • Explosion, 

Liberty Mutual, *also* covers sudden and accidental water damage (up to the dwelling limits), sewage back up within premises (up to dwelling limits), pipes that burst in foundation are covered at 5% of dwelling limits, $5,000 mold coverage, falling objects (trees, etc), freezing, collapse, glass breakage (we will fix your broken windows for free, without being subject to your deductible, if it costs $100 or less PER PANE to repair), weight of ice/sleet/snow, etc. Not every carrier covers this way.

If a person owns a computer, we can isolate the deductible to where if a covered peril occurs, there will only be a $100 deductible on a computer loss.

Liberty Mutual is the 5th largest insurer in the U.S. and we have the financial stability to pay our claims (even in catastrophic events). We are ranked A Excellent by AM Best. Our offices are linked up so you can go into any office to make changes, get proof of coverage, pay a bill, etc. Our policyholder retention is 92% (which is unheard of in our industry).  We strive to make our customers happy and this shows in our retention.

 David Vera, Agent, Liberty Mutual Insurance. Call me and I'll have you singing a new song. david.vera@LibertyMutual.com

Comments (13)

Lori Franks
Real Estate Consultant - Brookings, OR
Brookings, Oregon

Hello David, I just stopped by to welcome you to ActiveRain and congrats on your first post. Keep up the good work and have fun.

Aug 14, 2008 06:41 AM
Stefan Geyer
SOA Realty - Aurora, CO

Thanks for the informative post and welcome to Active Rain!

Aug 14, 2008 09:26 AM
Patricia Fisher
Keller Williams Realty - Spartanburg, SC

Welcome to the Active Rain Community!  This is a great site to network, learn, and share ideas with others.  Have a great day!

Aug 14, 2008 11:00 AM
Kevin Wood,
Keller Williams Southern Arizona - Tucson, AZ
Tucson, AZ Realtor

David,

Thank you for sharing your perspective. I wish you the best of luck and look forward to reading your future blogs. This is an awesome place to learn and grow.

 

 

Aug 14, 2008 12:49 PM
Scott Magaw
The Bill Kennedy Team - Keller Williams Realty - Spartanburg, SC

Hi! I wanted to welcome you to active rain! This is a great community for learning as well as sharing.  Join some groups, check out some blogs, and write whatever comes to mind.  Tip: Sometimes the best received blogs are the ones that have nothing to do with real estate!  Have a great week.

Aug 14, 2008 02:56 PM
Ron Martin
Keller Williams Realty - Spartanburg, SC
Ron Martin Team

Welcome to active Rain, This site is an wonderful marketing tool for all of us. have a great day!

Aug 15, 2008 12:33 AM
Ginger Ryals
Prudential C Dan Joyner and Young Realtors - Spartanburg, SC

Welcome to Active Rain!! This is a great site to network and share ideas!! Have fun with it!!

Aug 15, 2008 01:10 AM
Kirk Westervelt
Van West Realty - Greenville, SC Realtor -Short Sale Expert! - Greenville, SC
Kirk Westervelt, Broker In Charge, Van West Realty - CDPE - Short Sale Agent - Home for Sale - Greenville, Simpsonvil...

Hi, welcome to Active Rain! I hope to see more of your blogs in the future. Learn from others, share your knowledge and experiences and enjoy yourself! Take care! ---Kirk.

Aug 15, 2008 01:26 AM
Sasha Miletic - Windsor Real Estate
RE/MAX Preferred Realty Ltd. - Windsor, ON

Hi David, Welcome to AR, Be a Blogholic and start writing your own blog soon on AR. All the best for your RE business. This is the right place for customers, friends, realtionships etc.

Best - Sash 

PS: FREE blog traffic strategy video...Hope this will help you... click here

Aug 15, 2008 01:27 AM
Lori Isaacson
Credit Restoration Consultants - Plantation, FL

Hi David,

On behalf of Credit Restoration Consultants and the 103,000 plus members of ActiveRain, I wish to welcome you to the network.  Should you ever have a question as it relates to bad credit, credit repair, credit restoration, or identity theft, please do not hesitate to contact me at (954) 581-5050 or at my direct dial number of (954) 449-9987.

 Best wishes,

Lori Isaacson

Aug 15, 2008 02:20 AM
Carol Knott
RE/MAX The Woodlands & Spring - The Woodlands, TX

Hi, Dave,

Great first post! I will attest you are also a great insurance agent! Have a wonderful day! Carol

Aug 16, 2008 05:24 AM
Peg Gilliland
Charlottesville Solutions - Charlottesville, VA
Broker, GRI, CDPE

I see that you are new to Active Rain and I just wanted to welcome you. I hope that you enjoy it as much as I do and that you find it a great resource.

Aug 16, 2008 01:23 PM
Starstate Realty
Starstate Realty - Austin, TX

Hi David Happy New Year.  Welcome to ActiveRain. I look forward to networking with you and reading your future post. Have a great day!!!

Jan 09, 2009 04:04 PM