The Blog ofLiving 48 Real Estate Team at Keller Williams Realty East Valley

What to Know About Homeowner’s Insurance


Erik Nesheim
Farmers Insurance 
1423 S Higley Rd Ste 125 
Mesa, AZ 85206-3450 
480-330-0081 (Office) 
480-330-0081 (Mobile) 
480-835-5031 (Fax) 
enesheim@farmersagent.com 
http://www.farmersagent.com/enesheim
So first, a HUGE thank you to my friend Erik Nesheim with Farmers Insurance for helping us out with this blog. Erik and I both serve in leadership positions with Network Together and that is where I met Erik. Erik was formerly an executive for 25 years with an extensive background in accounting and management. He has a business degree in accounting and a master’s degree in education. The masters was used for an additional educator career spanning ten years teaching business and math.
Erik has been an agent with Farmers Insurance for four years and continues to aggressively grow his business. He specializes in auto, home, life, and commercial insurance. He is an investment advisor as well. He uses his business skills to assist businesses and individuals to help them reduce their risk. By helping individuals and businesses transfer the risk to the insurance company, many businesses and individuals can spend their time on matters that are more relevant to their personal and business lives.
As you can see, Erik has the heart of a teacher – just like I do – and so he was an obvious choice to have help me share with you some important information about homeowners insurance. Beyond being a teacher at heart, Erik is one of the most fun people you will ever meet. I’ll share a few secrets I know about him. He’s a Karaoke King, a Roller Derby Star and seriously one of the nicest guys out there! If you have any questions in regard to your homeowners insurance or would like a free review of your insurance coverage and needs, I would HIGHLY recommend Erik to you as a resource!
Here’s Erik and my conversation about homeowners insurance….
Katie: So Erik, there are lots of types of insurance coverage, what type of coverage are we going to be talking about today and what all does it cover?
Erik: In this commentary I will talk about the primary coverages for homes. This includes dwelling coverage, property coverage, separate structures coverage, loss of use coverage, and personal liability coverage.
Katie: Perfect. What would be the most important things that you would want homeowners and potential homeowners to know about their coverage?
Erik: It is extremely important to have insurance on your home and property associated with it. Without it, you would stand to risk your most significant asset, your home, with no financial recovery. Fire and storm damage are the primary causes for destruction of your dwelling and personal property.
Katie: That’s totally true. I remember several years back, we had a HUGE hail storm here in Arizona where many homes and cars got really banged up and quite a lot of roofs specifically needed to be repaired/replaced. I also know of a few people who have suffered home fires and lost everything.
Erik: A total loss would require a rebuild, so the insured should make sure to have full replacement cost to ensure that there is minimum out of pocket cost.
A home can have many other unforeseen events take place resulting in personal property damage or loss. For instance, water damage from a broken pipe, even a broken pipe under the base slab (Farmers Insurance covers this) would contribute a significant amount of damage to property in the home.
Katie: If a homeowner has some kind of a catastrophe, like the ones we are talking about here, happen to their home or property, what should their next steps be?
Erik: Should this take place it is important to contact the agent as quickly as possible to see what the recommendation is for preferred vendors to receive excellent service. This will expedite the claim process as well. Some insurance companies provide pre-claims services that can estimate the potential claim before it is filed. If the claim is slightly over the deductible it would not make sense to file the claim, but instead it would be prudent to pay out of pocket for the damage. Separate structures (structures not attached to your house) such as swimming pools, block walls, and sheds, are covered.
Katie: Perfect. Is there anything else that you would want people to consider in their homeowners insurance coverage?
Erik: Yes, I think we should talk about personal liability coverage as well. Personal liability coverage protects the client up to the policy limit from an occurrence which the insured is legally liable to pay because of bodily injury or property damage covered by the policy. At the expense of the insurance company an insured is legally defended against any covered claim or suit. The insurance company may investigate and settle any claim or suit that it considers proper. It will not defend or make any payments after the policy limits for the occurrence have been reached, therefore, it important to have at least $500,000 in liability coverage.
Katie: I’ve heard stories about people listing their homes and someone coming to their property to see it and having an accident and then going after the homeowner for damages, so I can see how that coverage would be VERY important.
Erik, thank you so much for all this great information on homeowners insurance and some of the things we should consider. I would also add, that if you are a renter, you need good rental coverage, the homeowners coverage will NOT protect you and your belongings as a renter in most cases, so if you have any questions on your insurance coverage’s, be sure to reach out to Erik to get your questions and concerns addressed!
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