Ezekeil Hudson's Insurance Podcast

Unlocking the Secrets of Home Insurance: From Coverage Essentials to Cost-Cutting Strategies

Henry Hudson Season 1 Episode 1

Ever wondered if your home insurance covers more than just fire and theft? Join us as we unpack the rich layers of home insurance with insights from Ezekiel Hudson's essential guide, "How to Buy Home Insurance." Discover how liability coverage can shield you from unexpected costs if a guest gets injured at your place, and why it’s crucial to insure your home based on rebuilding costs instead of market value. We'll also navigate through the importance of personal property appraisals and supplemental riders for those high-value items you cherish.

In our journey, we'll also reveal savvy ways to slash your home insurance premiums. Learn the perks of bundling policies, installing home security systems, and how your home's location influences your rates. We'll break down Additional Living Expenses (ALE) coverage, ensuring you understand how it supports you during major home repairs. Plus, get a grasp on maintaining and truly understanding your policy, so you're prepared for anything from everyday mishaps to those quirky, unexpected events. Tune in to arm yourself with the confidence and knowledge to navigate your home insurance effortlessly.

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Speaker 1:

Hey, everyone, welcome in. You know, sometimes it feels like you need a whole dictionary just to understand your home insurance policy, right?

Speaker 2:

Yeah, it's almost like that jump drawer everyone has right. You know it's important, but going through it all is kind of daunting.

Speaker 1:

Totally so. To help us through this home insurance maze, we're using excerpts from how to Buy Home Insurance.

Speaker 2:

By Ezekiel Hudson.

Speaker 1:

Exactly, super practical guide, really breaks things down.

Speaker 2:

And Hudson actually makes a really good point right at the beginning Home insurance. It covers so much more than most people think.

Speaker 1:

Really.

Speaker 2:

Yeah, everyone's always like, okay, fire, maybe theft, and that's it. But it gets way more interesting.

Speaker 1:

Okay, all right, hit me with the unexpected stuff. What kind of interesting are we talking?

Speaker 2:

Okay, picture this your friend's at your place. They're doing that like walk of shame past that pile of boxes you've been meaning to unpack.

Speaker 1:

Oh yeah, and bam, they trip, they take a tumble.

Speaker 2:

Oh no, I'd feel terrible. But wait, you're saying, my home insurance would actually like come into play there, Even if it wasn't some major accident.

Speaker 1:

Yeah, exactly that's liability coverage right there. So your friend might need their medical bills paid. Maybe they even miss work because of it and suddenly without insurance, you could be stuck paying those costs.

Speaker 2:

Wow, I never thought about it like that. It's like a safety net, not just for your actual house but for your bank account, if someone gets hurt.

Speaker 1:

Exactly, it's for your peace of mind, yeah, and it gets even. Exactly, it's for your peace of mind, yeah, and it gets even. Like wilder Say, someone breaks in and they're not just stealing stuff, but they decide to remodel your living room with a crowbar.

Speaker 2:

You know, oh, no, so rude.

Speaker 1:

Right. But the good news is, insurance could help you cover those repair costs too. Ok, so it sounds like home insurance is ready for pretty much anything.

Speaker 2:

We're talking like financial protection from lawsuits and stuff not just like replacing a stolen TV Exactly it's about knowing you're covered for those big things but then also the totally unexpected stuff that life throws your way.

Speaker 1:

That is definitely a relief. Okay, so we get why it matters, but how do we actually figure out how much coverage we need? Let's start with like dwelling coverage. That sounds pretty straightforward, right? Just how much coverage we need. Let's start with like dwelling coverage. That sounds pretty straightforward, right? Just how much the house is worth.

Speaker 2:

Not quite. So this is where that replacement cost thing comes in, and it's a big deal. Our guide Zekiel explains it like this it's not about what you bought the house for, but what it would cost to rebuild it today and I'm talking new materials, labor, the whole nine yards.

Speaker 1:

Oh okay. So like if I'd done that kitchen remodel during like the peak crazy lumber prices a while back, I'd actually be covered for that.

Speaker 2:

That's the idea your house could knock on wood, burn down tomorrow, and you would get enough to actually rebuild, even if those construction costs went way up since you first bought it. It's about you getting a new home, not just a check for what your old one was worth.

Speaker 1:

Okay, that's huge, so it's not about like the market value. It's about what it takes to actually rebuild and replace everything.

Speaker 2:

Exactly, and we'll get into how stuff like location can actually like change how much coverage you might need. But for now just remember, one size does not fit all.

Speaker 1:

Okay, good point. A beachfront bungalow definitely has different needs than like a mountain cabin and, speaking of things, that might need some specific coverage time to figure out how much all our stuff is worth. Anyone else get a little nervous, but also excited to put a price tag on everything.

Speaker 2:

Oh, it's a personal appraisal day, right.

Speaker 1:

Yeah.

Speaker 2:

But honestly, this is where a lot of people realize that basic coverage might not cut it. That amazing vintage record collection, you have grandma's antique jewelry, your fancy new espresso machine that you love those might need what Ezekiel calls writers.

Speaker 1:

Writers like add-ons to your insurance policy.

Speaker 2:

Exactly. It's like giving extra protection to those valuable items because you know standard coverage might not actually replace them fully if something bad happens. Trust me, in the middle of a fire or a break-in, the last thing you want to be doing is trying to remember every single thing you own and how much it's worth.

Speaker 1:

Oh for sure, Note to self. Actually do that home inventory thing. Okay, we'll link a good checklist in the show notes for everyone listening to. Now time to move on to the topic. I always dread Deductibles.

Speaker 2:

Ah yes, the dreaded deductible.

Speaker 1:

I know right.

Speaker 2:

It might not be the most fun part of this, but it's really important to understand how your coverage actually works in action.

Speaker 1:

OK, break it down for me. What do I need to know, without like making my head spin?

Speaker 2:

OK, think of it this way A higher deductible. It's kind of like betting on yourself that nothing too crazy is going to happen. You pay less up front for your insurance, but if something does go wrong, you're going to have to pay more out of pocket before your insurance actually kicks in.

Speaker 1:

So it's like this balancing act between maybe saving some money up front versus being totally covered if, like, disaster strikes.

Speaker 2:

That's exactly lower deductible, higher monthly payments, but you'll end up paying less if you actually have to, you know, file that claim. The best option really depends on how much risk you're comfortable with and your own financial situation.

Speaker 1:

Right, like maybe you're super cautious and you just want that peace of mind so you go with a lower deductible, or maybe you're good taking a little risk to keep those monthly costs down right.

Speaker 2:

Exactly no judgment here, but it's definitely worth chatting with your insurance agent maybe even a financially savvy friend, to see what makes sense for you.

Speaker 1:

Solid advice. Okay, let's end on something a little more fun. Are those home insurance discounts I always hear about actually real?

Speaker 2:

Oh yeah, they're definitely real. You just got to know what to look for, and being proactive really pays off here. For starters, you know, bundling your home and auto insurance with the same company that can lead to some big savings.

Speaker 1:

Yeah, bundling makes sense. What else you got Any other secret money saving tips?

Speaker 2:

Well, if you've got a home security system, which we talked about a little bit earlier tell your insurer. A lot of times they give discounts for that because it usually means lower risk for them, and you might even be surprised. Sometimes even just being a loyal customer with a good track record can actually get you some savings too.

Speaker 1:

Ooh, loyalty perks, Love it. It sounds like the big takeaway here is don't be afraid to ask about discounts. You'll never know unless you ask right.

Speaker 2:

Could agree more. The worst thing they can say is no, but who knows, you might just be surprised.

Speaker 1:

That's a great point to end this part of our deep dive on. We've covered so much ground today. It's clear Understanding home insurance is really important to protect you know what matters most.

Speaker 2:

And we're back for more home insurance fun. Okay, so far we've tackled what's actually covered those tricky deductibles and we even found some like secret discount codes, secret handshakes.

Speaker 1:

Right, but there's one big thing we haven't talked about yet.

Speaker 2:

Yeah, Location, location, location right.

Speaker 1:

That's not just a catchy phrase. Our zip code can seriously impact our insurance.

Speaker 2:

It really can and, honestly, how much we end up paying too.

Speaker 1:

Makes sense. I mean a beach house facing hurricane season, probably a bit different than a cabin in the woods.

Speaker 2:

Exactly Areas that are more likely to have, like natural disasters, you know, hurricanes, wildfires, even earthquakes. They usually come with higher insurance premiums. It's all about risk, right Higher chance of something happening, higher the premium.

Speaker 1:

So it's not just about the house itself, but like where that house actually is on planet Earth.

Speaker 2:

Yeah, like your dream move to that cute coastal town. Those ocean views might mean some not so cute insurance rates.

Speaker 1:

Good point. It's all connected and it's not just like Mother Nature we got to think about.

Speaker 2:

Definitely not. Crime rates in the area, how good the fire department is, even how far away your house is from a fire hydrant All of that can change your insurance costs.

Speaker 1:

Wow, I had no idea it was that specific. So it's all about really understanding your location and those unique risks, right, like each house has its own insurance fingerprint.

Speaker 2:

Totally, and that's where having an insurance agent who knows their stuff is super helpful. They can guide you through all that, make sure you're covered properly without paying for things you don't need.

Speaker 1:

Because like no point in paying for earthquake insurance if you're living on solid rock somewhere, right?

Speaker 2:

Exactly. It's all about that custom fit. And speaking of customizing coverage, let's talk about something that often gets overlooked but can really make a difference Natural disasters and the aftermath.

Speaker 1:

Okay, now you've got my attention. Aftermath Like what. Give me an example.

Speaker 2:

Okay, imagine this Big storm hits and luckily, luckily. You've got great dwelling coverage so you can rebuild. But what if your home isn't livable for weeks, maybe even months? Well, those repairs are happening. Where do you stay? What do you eat? Those costs can pile up quickly.

Speaker 1:

Oh man, I hadn't even thought about that. That's where additional living expenses coverage comes in, right. I remember seeing that in Ezekiel's book, but didn't really get what it meant.

Speaker 2:

Yeah, ALE, a lot of people call it. It's like a safety net for those like uh-oh moments. It helps with those extra costs like temporary housing, meals, even like pet boarding, If you can't stay at your place because of something that's covered by your insurance.

Speaker 1:

So it's not just about like having a roof over your head, but also about like maintaining some normalcy when you're already stressed out. You shouldn't have to worry about your next meal on top of dealing with like the aftermath of a natural disaster.

Speaker 2:

Exactly. It takes some of that pressure off so you can actually focus on the important stuff for safety, your well-being. Figuring out how much ALE coverage you need though it's kind of like predicting the weather Depends on your situation, you know.

Speaker 1:

Okay, so how do I even start to figure out what's right for me?

Speaker 2:

Good question. It comes down to a few things how many people are in your household, your lifestyle and what things cost in your area. But a good rule of thumb think about how much it would cost you to live your normal life for like at least a few months if you couldn't stay at home.

Speaker 1:

Okay, that actually makes a lot of sense. It's not just about having a place to crash, but like all those little things transportation, laundry, everything.

Speaker 2:

Exactly, and this is definitely something to discuss with your insurance agent. They can walk you through different scenarios, you know, taking your needs and budget into account. It's about that peace of mind, knowing you're prepared if something does happen.

Speaker 1:

Absolutely.

Speaker 2:

Okay.

Speaker 1:

Okay, before we move on, we've got to talk about something else, kind of like the elephant in the room or the elephant that might show up in my living room. You know, we talked about someone tripping and getting hurt before. But what if it's actually my bad Like? What if I accidentally break something at my neighbor's?

Speaker 2:

So now we're getting into liability coverage, but specifically those times when you might be at fault, it happens.

Speaker 1:

Okay, say, I'm having a barbecue right and my famous potato salad don't judge, it's all about the paprika ends up with people making some unexpected trips to the bathroom. Would my insurance really cover that?

Speaker 2:

It could. If your guests get sick because of something you made and need a doctor, yeah, your liability coverage might help with those medical bills. It's about protecting you from those oops moments, even with friends.

Speaker 1:

That's good to know. I'm definitely starting to understand why this liability coverage is so important. It's like having a friend who always has your back, no matter how messy things get.

Speaker 2:

I love that, but remember it goes beyond. Just like someone getting hurt, property damage too.

Speaker 1:

Okay, now you're making me nervous, like what.

Speaker 2:

So let's say you're playing catch with your neighbor's kid Totally friendly, right, Nope? And suddenly you throw this rogue ball smashes right through their living room window. Oh no, and not just any window, we're talking a beautiful antique stained glass masterpiece.

Speaker 1:

Ouch, I can feel my wallet crying. But you're saying my insurance would actually help pay to replace that.

Speaker 2:

Possibly. That's the point of liability coverage it can help smooth over those awkward situations. Make sure you're not stuck paying for a mistake.

Speaker 1:

Wow, this is eye-opening. Never really thought about how much peace of mind comes with the right liability coverage. It's like having a financial guardian angel for those oops moments in life.

Speaker 2:

Totally. It's one of the ways home insurance protects not just your stuff but your relationships and, honestly, your bank account.

Speaker 1:

That's a good way to put it. Now I have a feeling we've just scratched the surface of this liability thing. What else can you tell us about this unsung hero of home insurance? All right, welcome back. We are in the homestretch of our home insurance deep dive and, I'm not going to lie, my brain is kind of full of all these insurance scenarios.

Speaker 2:

You got all that written down. Don't want to forget anything, oh yeah.

Speaker 1:

My notebook's bursting.

Speaker 2:

Yeah.

Speaker 1:

But seriously, what's really stuck with me is how important it is to be ready for like anything, even stuff you can't plan for.

Speaker 2:

Absolutely. It's about more than just you know the policy itself. You got to have a plan right, but it's the little things that make all the difference. Ezekiel Hudson in the book. He makes a really good point.

Speaker 1:

Insurance is great, don't get me wrong but it can't be the only thing you're relying on. Okay, so like should I be practicing my fire extinguisher skills right now, or maybe getting one of those escape ladders from my upstairs window?

Speaker 2:

Hey, those aren't bad ideas. But it starts even simpler than that. Think about basic upkeep around your house, you know, like if your roof's already a little worse for wear, a small leak can turn into a huge problem fast. And your insurance? They might not pay for all of it if they think you just weren't taking care of things.

Speaker 1:

Right, it's like preventative care, but for your house.

Speaker 2:

Exactly, and it goes beyond just fixing stuff too. Think about security. How sturdy are your locks really? Is it bright enough outside at night to discourage, you know, any unwanted visitors? Little things like that can really change how likely you are to unfortunately have something stolen so it's like taking charge.

Speaker 1:

You know, don't just expect insurance to save the day if things go wrong exactly be aware of potential problems and do something about them.

Speaker 2:

Like, if you're in a wildfire prone area, are you clearing brush away from your house? Do you have an escape plan ready to go?

Speaker 1:

Oh wow, good questions. I haven't really thought about those specifics. It's easy to just assume oh, I have insurance, I'm good. But it's more than that.

Speaker 2:

Right. It's a team effort. You do what you can to prevent things and your insurance is there to back you up if those unexpected things actually happen. It's about making smart choices. You're not always living in that what-if headspace, you know.

Speaker 1:

Yeah, totally Finding that balance between being prepared and not freaking out. So, to sum it all up for our listeners, what's the one thing you want them to remember?

Speaker 2:

Don't just buy a policy and forget about it. Really take the time to understand what it covers, know what your risks are and take those steps to protect your home. Insurance is a huge help, but it's not the whole picture.

Speaker 1:

Well said. And that is a wrap on our home insurance deep dive. We covered a lot, from fires and break-ins to even those questionable potato salads.

Speaker 2:

Don't forget the baseballs.

Speaker 1:

Right, but hey, knowledge is power folks. Now that you're all home insurance experts, you can face your policies with confidence. We'll be back next week with a whole new topic, so make sure to join us then.