Tego Venturi: Let’s transition over to your a, your homeowner. And just some things to think about when you haven’t, you know, your home and just, you know, I think a lot of people, they move into their home, they get their insurance. And that gets paid on their escrow through the mortgage, they never think about it again, rack. So what should they be thinking about?
William Tobin: Really changes it. If they put a new roof on, there could be a significant discount. If they add to their home, you know, a lot of people will add on a lot of people will improve their home. So I would say, you know, the industry says check every year. I’m probably guilty of not doing that myself. Because I know unless I make a big change, who cares? Yeah. But anytime, any type of change that would affect the value of your home, you add a pool, etc.
Tego Venturi: Add a garage trampoline.
William Tobin: Buy a trampoline,
Tego Venturi: A pit bull.
William Tobin: Yeah, yeah. buy a lot of pitbulls on trampolines into pools? Yeah. Yeah, don’t call me. Don’t call me if you do that. But those type of things. You know, you you want to make sure your liabilities high enough, especially on pools. And if you add on to your home, you may have an under insured.
Tego Venturi: Yeah. And that’s, that’s one thing is interesting. So so one of the you know, types of coverage you get on every homeowner’s policy is replacement costs. Yes, the house burns down.
William Tobin: The good ones all have replacement.
Tego Venturi: Yeah. But okay, we’re in this market right now, here in Albuquerque with real estate market where homes, you know, a lot of homes went up 10% in value in the last year? Yes. So how do you know, do they? Is there anything automatic about that? Or does the homeowner need to reach out to you and say, hey, let’s get our value?
William Tobin: That’s a good question. Our policies have inflation guard built in, you know, kind of trying to make it idiot proof. But personally, I always add, literally, almost almost to every policy, something called extended replacement cost.
Tego Venturi: I pulled out my policy before we got on here today, I wonder and I looked at and it says extended. I’m like, what does that mean? 125% or something like that.
William Tobin: I saw that we’ll cover in case the cost of construction goes up.
Tego Venturi: Did I see it? It went away? But it was I saw it before it says replacement costs? And it said 125%. Right? Is that what that means?
William Tobin: Yes, it means that let’s say your home’s insured for a million dollars. Okay. And construction costs go up significantly, which they have in the last year. Exactly, significantly significantly. So now the company will pay 1,250,000
Tego Venturi: Got it. Yeah, construction cost just on the side, no construction cost and the cost to build and new homes have gone up way faster than existing homes.
William Tobin: And that’s also been one of the things that have driven the price of homeowners insurance up.
Tego Venturi: Yeah. In what one other and that’s something I want to talk about is cost. So you’ve got your home, and something happens. And and we talked I just wanted to hit on this real quick. So I promised I would was you know hazard insurance versus on warranties, right? And so has an insurance again, you told me something one time years ago, and you said sudden catastrophic and that stuck with me. That’s what that’s what hazard insurance is for?
William Tobin: Yeah, that’s actually a great thumbnail description. Yeah. Home warranties and I you know, it’s mostly what I don’t usually I don’t sell them. However, those are things that wear out wear and tear one of the big exclusions on all homeowners policies, they do not want to cover wear and tear items. They want to cover stuff like lightning strikes, like you said, you know, sudden pipe burst fires, theft, stuff like that. Yeah, they don’t want to cover when your washing machine wears out. And so I think the home warranty is is for that fit.
Tego Venturi: Yeah, I think it’s simple example be like the furnace right? If the furnace stops that’s not that’s not a that’s not a homeowners insurance claim that is a home warranty claim or you’re just writing a check to TLC, you know, to get a new furnace right or Oh, I shouldn’t say axiom call axiom Home Services. Sorry, not TLC. axiom is Mario axiom. He’s the he’s the man. Anyway, I digress. So So that’s kind of just so people can understand the difference and we usually have to have that conversation with with homebuyers. When they’re looking at a home warranty. And they’re saying, Well, I’m getting insurance. So it’s like no two different two different animals here.
William Tobin: Yes. Okay. And the home warranties also tigo a lot of times have limits. Oh, they do where you know, the average home I think now is what about 260,000?
Tego Venturi: Yeah, very good. You must be paying attention My update
William Tobin: I do i listen.
Tego Venturi: Well, actually, is that median about 250? Right now? Yeah, average is like 260.
William Tobin: Right 270. And then you consider this stuff in somebody’s home. Yeah. And then you can add probably another 100,000. And also, we also have to pay if your home does burn down, we not only have to pay for the home, the stuff in the home, we also have to put you up and in and buy food and other stuff. So the home claim a lot of times is far more than just what the homes insured for.
Tego Venturi: Yeah, yeah, that that makes perfect sense. So when should a homeowner that has a problem, something comes up? When should they not file a claim? And you may want to plead the fifth, but I’m gonna put you on the spot anyway.
William Tobin: That that’s a question that I know the company hates us to answer. They always say always file a claim. On a personal level, I don’t believe that. There’s a lot of little things that happen. And we remember clew report. Yeah, I don’t want to see a clue report this as long as your arm. So there are a lot of little things that happen that may be covered under a home.
Tego Venturi: Yeah. So if you’re a frequent, frequent filer, that affect your future caught on
William Tobin: And you may not even be able to get insurance. Really, yeah, you might have to go through what’s called the New Mexico pool. And it is not near as good as a home policy from either me or my competitors. Yeah. So yeah, when you have a whole lot of clients to you go a is the thing for sure is your cost is going to be astronomical. And you may be uninsurable through normal markets, which means again, you have to go through the pool. You don’t want to be in that position.
Tego Venturi: Yeah, you know, I got to make good decisions. And, and I think, I think most insurance agents in town, and I think, you know, obviously, you I’ve actually called you on stuff and I went, Wow, should I file this or not? You’re like, yeah, you didn’t give me advice, but you just talk to me. How’s that?
William Tobin: Yeah, you didn’t tell me what to do. But you just talked, we are we’re really not allowed to say, I know, you don’t file a claim. But I can tell you even myself. There’s a lot of little things both on my home in my car that, you know, it’s just as life.
Tego Venturi: Yeah, yeah. Yeah, of course and in. And so just something to think about. It’s it’s not like a bank account. Your insurance policy. It’s really for the big stuff where, yeah, because it could affect your costs. Yeah, yeah.
William Tobin: Well, if you have hail damage a $20,000. roof, I’d say absolutely. Call me.
Tego Venturi: Yeah, yeah. Anyway, Bill, thank you so much. Bill Tobin, Farmers Insurance Agent, Albuquerque, New Mexico. What’s your number bill? How can somebody get ahold of you guys?
William Tobin: 899 9000
Tego Venturi: Awesome. Thanks, Bill.