The USDA Risk Management Agency (RMA) Pasture, Rangeland, and Forage Insurance (PRF) program is a risk management tool that producers can rely on to protect their operations from low forage production as a result of a lack of rain. If your farm produces hay or grazes livestock on pasture, then you are eligible for PRF insurance. 

PRF is a national program that offers policies in all 48 contiguous states. In contrast to single crop insurance, which reimburses producers for yield or revenue losses relative to their own production history, PRF compensates farmers for below-normal precipitation – including rain or snow – in their area. PRF is what is referred to as a genuine “single peril” insurance product because low precipitation is the only cause of loss that it insures. 

“The Risk Management Agency started the rainfall insurance program because – unlike crop producers – ranchers have historically not been able to insure their crops of forages for grazing and haying,” says Monte Vandeveer, an Agricultural Economist at Kansas State University. 

Vandeveer adds, “The insurance coverage is based on rainfall rather than yield because forage yields from haying and grazing are difficult to measure.  The intent of the program was to provide funds to producers to purchase replacement feed for livestock so cattle don’t need to be sold.” 

How Pasture, Rangeland, and Forage Insurance PRF is Applied

PRF employs a Rainfall Index to calculate precipitation levels for coverage purposes. For example, an index value of 100 indicates typical precipitation, which is based on a historical average. An index value more than 100 translates into conditions that are wetter than average. A value below 100 shows that conditions are dryer than normal. The Rainfall Index is a proxy for forage production, however, it doesn’t assess direct production or loss. Producers who use PRF are insuring a Rainfall Index, as opposed to their actual production. 

PRF coverage mandates the producer selects a coverage level, a productivity factor, and at least two index intervals. Each index interval constitutes a two-month period. Producers are required to choose two or more non-overlapping intervals. For the purpose of risk management, the intervals chosen should cover the duration when precipitation is most important to a producer’s operation. 

“The index values are published about six weeks after the end of each two-month time period,” says Vandeveer. “If the rainfall index for a given grid triggers an insurance loss for the level of coverage you have purchased, you typically receive a check soon after those index values are announced.” 

Policyholders have the option of selecting a coverage level from 70 percent to 90 percent. The coverage level determines the trigger point for an indemnity payment. Minimal precipitation will bring about an indemnity payment if the final Rainfall Index falls below the coverage level in any of the chosen intervals. The higher the coverage level, the greater the probability of an indemnity payment. 

While the Rainfall Index brings about an indemnity payment, the payment amount is based on several variables:  county base value, productivity factor, coverage level, final Rainfall Index value, and the total number of acres insured. RMA creates a base value for pasture and hay land in each county. In most cases, hay land has a higher base value than pastureland. 

Producers have the option of modifying the base value by choosing a productivity factor that falls between 60 percent and 150 percent. The dollar amount of coverage per acre is equal to the product of the county base value multiplied by the productivity factor multiplied by coverage level. 

It’s important to note that producers are required to distribute a percentage of their total coverage into each of their chosen index intervals. For example, if a producer selects two intervals, they can place 50 percent of coverage in each of the two intervals. They could also place 70 percent in one interval and 30 percent in the other. The percent of coverage in each interval has to add up to 100 percent for the year. 

Advantages of Using PRF 

PRF, while protecting your farm from production hazards having to do with low precipitation, also offers the following benefits that are helpful to farmers: 

  • Record-keeping is not required.
  • You never need to file a claim.
  • You have the option of working with a private crop insurance agent of your choosing.
  • The federal government shares in the cost of actuarially fair insurance premiums.  More than half of the PRF premium cost is subsidized. 
  • You choose the number of eligible acres that you would like to enroll.
  • Indemnity payments are typically made four months after the end of the index interval. 
  • Indemnity payments may help you purchase feed when forage yields are low.
  • If you receive an indemnity payment, the program will issue it automatically.  
  • You do not have to pay your insurance premium when you sign up. You will be billed in September of the following year. 
  • Lenders prefer to see farmers using crop insurance as part of an overall risk management strategy. 

Graybeal Group, Inc. Offers The Widest Range of Products and Pricing in Oregon

Graybeal Group, Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, The Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch. 

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business. At Graybeal Group, Inc., we are committed to providing an experience that empowers our clients so they are educated on their coverage and the value we provide above all others.

For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523

Wondering what crops you should be planting this spring? Plan on seeing higher corn and soybean production in 2021, according to the USDA (United States Department of Agriculture). This year’s planted acres and yield forecast call for a rise in USDA’s initial Grains and Oilseeds Outlook that was recently released. 

Corn production is expected to be 15.2 billion bushels (bb) for the 2021-22 crop, while soybean production is projected to be 4.5 bb. Higher demand forecasts for each of these crops will keep ending stocks comparatively low, that is especially the case for soybeans. 

As you prepare to plant corn and soybeans in the field, we will present you with a summary of some of the indicators and a general outlook for corn and soybeans this year. Hopefully, this will help you starting planting sooner rather than later!

Corn Outlook 

The USDA forecasted the 2021-22 crop year should lead to greater crop production, more domestic use, and exports, as well as somewhat higher ending stocks. 

The 2021-22 corn planting is forecasted to be 92 million acres (ma). With a yield projected at 179.5 bushels per acre (BPA), USDA predicts the corn crop production at 15.2 bb. USDA suggests that the higher yield is based on a weather-adjusted trend, assuming norming planting progress and summer growing-season weather. 

This compares to the previous year’s crop at 90.8 ma planted, a yield of 172 BPA, and production at 14.18 bb. 

The entire corn use for the 2021-22 crop is projected to increase by 3 percent, as well as on higher demand in both domestic uses and continued strength in exports. Additionally, feed, seed, and industrial use are forecasted to rise 4 percent to 6.6 bb. Corn that is used for ethanol is also predicted to rise 5 percent based on expectations of greater motor gasoline consumption over the next year which comes on the heels of a slowdown that occurred as a result of the COVID-19 pandemic.  Feed and residual use for corn in 2021-22 will jump
200 million bushels (MB) to 5.9 bb. 

What’s more, corn exports are anticipated to rise 50 MB to 2.7 bb, “reflecting expectations of global trade growth and continued robust demand from China.” 

Outlook for Soybeans

The USDA anticipates farmers to plant 90 ma of soybeans in 2021, representing an increase of 6.9 ma compared to last year.  The USDA stated that the gain is supported by “new-crop soybean futures prices relative to corn, supported by strong Chinese demand and the tightest stocks-to-use ratio since 2013-14.” 

Soybean production is pegged at 4.5 bb, an increase of 9 percent above 2020-21 production with the yield projected at 50.8 BPA. 

All of this is compared with production for the 2020-21 crop at 4.14 bb and a yield of 50.2 BPA. 

The USDA envisions ending stocks at 145 MB, an increase of 25 MB from its current estimate of 2020-21 ending stocks. Ending stocks to use, at 3.2 percent, is likely to remain historically low. In fact, it is calling for lower exports and higher crush. 

The USDA said, “Soybean crush margins remain relatively strong with soybean and soybean product prices near 2020-21 levels. Soybean meal prices are forecast at $390 per short ton. Domestic use of soybean oil is projected up 2 percent for 2021-22 on expected expansion in renewable diesel capacity and gains in edible oil.” 

Soybean exports are figured to be 2.2 bb, 50 MB less than in 2020-21, as a result of limited exportable supplies that will reduce U.S. market share. 

The season-average farm price is expected to be $11.25 per bu, “up slightly from 2020-21 as forward pricing opportunities for 2021-22 are expected to be higher than a year ago.” 

Will Higher Prices Result in More Acres in Production?

One year ago, it might have been prudent to hold back some acres from production, either because your fields were continuing to recover from flooding in 2019 or you were hedging your bets against the gloomy economic conditions that came as a result of the
COVID-19 pandemic, or both. 

This year, it would seem at least a portion of the acres is returning to production. And if that is the case, you are in good company. We are well-positioned to have the third-highest planted acreage on record, and that is based on the following projections:

  • 91.1 million acres of corn, slightly less than a 1 percent increase from 2020. 
  • 87.6 million acres of soybeans, which is 5 percent higher than in 2020. 

However, as Farm Doc Daily from the University of Illinois notes, the acreage totals in the Prospective Planting report are less than what analysts forecasted. The following circumstances are likely to push more acres into production in 2021:

  • Crop insurance guarantees for corn and soybeans are the highest since all the way back to 2013. 
  • Optimism that export sales will continue to get better, especially with China. 
  • More funding from the Coronavirus Food Assistance program. 

In a reaction to the Prospective Plantings report, corn futures have increased. These indicators could prompt more farmers to bring more acreage into production. However, that may or may not happen, as the USDA releases its revised acreage estimates on June 30 of this year. 

Growers and Producers Are Feeling More Hopeful 

Farmers seem to be quite optimistic about the future. One indication that tells us this is in March 2021, the U.S. Ag Economy Barometer skyrocketed to 177 based on its monthly survey of farmers. The survey asked farmers if they anticipated their farm’s financial performance will be better or worse than a year ago. Considering that the Ag Economy Barometer was a lukewarm 55 in April 2020, it is clear that farmers are going into the planting season feeling quite positive. 

Graybeal Group, Inc. Offers The Widest Range of Products and Pricing

Graybeal Group Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch. 

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business.

For more information, we invite you to call Graybeal Group Inc. at (541) 567-5523. 

ADDITIONAL HOMEOWNERS INSURANCE OPTIONS 

There are different “options” or endorsements you may choose to add to your Homeowners Policy here in Oregon. One of the most important extensions of coverage for your home is increasing the limit on Water back up and Sump overflow. Additionally in extension options is Fungus, Wet Rot, Dry Rot, and Bacteria. Normally, policies exclude coverage for the presence, growth, spread of any of these things. 

Water Backup and Sump Overflow

What is the Water Backup and Sump Overflow Endorsement? This endorsement provides coverage for damage resulting from water which backs up through sewers or drains or which overflows from a sump, french drain or sump pump, even if the sump pump fails.

An HO3 Homeowners Policy automatically comes with a $5,000 limit for these instances; However, we find that typically isn’t enough. Here at Graybeal Group, every Policy that we write includes a Water Backup and Sump Overflow Endorsement, increasing your limit/coverage to $10,000.

Why should I add this Endorsement?

Depending on the location and age of your home, oftentimes when sewer pipes age and fail it can cause water to reverse course and flow back into your drain, causing damage. Alternatively, sump pumps can fail or become inundated with water from a storm run off, resulting in a damaged foundation or flooded basement.

Water backup can create costly damage to drywall, floors, floor coverings, furniture, personal items, curtains, etc. In the event of this type of claim, we want to ensure that you are not having to pay out of pocket for water remediation.

flood insurance graybeal group

Loss of Use Coverage

Sump failure typically doesn’t make your home unlivable – in other words, despite the damage, you are still able to live in your home while repairs and cleaning take place. However, in the rare occasion that the damage is too extensive and it makes your home uninhabitable, having water backup coverage would qualify you for Loss of Use coverage.

For example:

A storm flooded your basement, causing water damage to your furnace. It is 27 degrees outside and you are unable to heat your home. Now is a bad time to search for flood insurance, or additional homeowners insurance options.

Loss of Use covers additional living expenses, above and beyond a person’s normal living expenses, as well as loss of rent, if that’s the case. If approved by your claims adjuster, this coverage would allow you to occupy a hotel that is paid for by your insurance until the home becomes livable.

How to best prevent water backups

  • Restrain from pouring cooking grease or oils down your drain.
  • Don’t flush paper towels, feminine products, etc.
  • Check your Sump Pump regularly and look for pre-existing drainage issues.
  • If you live in an older home, install a backwater prevention valve.

Fungus, Wet Rot, Dry Rot, and Bacteria

The limits listed are the aggregate limit. Meaning, that limit is the max amount that the insurance company will pay out during a policy period – regardless of how many claims are made, the number of additional locations insured under this endorsement, or the number of occurrences.

Section I Property Coverage limit of liability for the Additional Coverage Fungi, Wet Rot, Dry Rot, or Bacteria $10,000
Section II Coverage E aggregate sub-limit of liability (damages others) for Fungi, Wet Rot, Dry Rot, or Bacteria $50,000

 

Fungi is classified as any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents or by-products produced or released by fungi. 

What is covered if fungi, wet/dry rot or bacteria is found? 

Often times there is extensive damage that is unseen. When filing a claim for fungi, wet/dry rot or bacteria damage, the cost of removal is covered. Additionally covered, is the cost to tear out and replace any part of the building or other covered property as needed to gain access to the fungi, wet/dry rot, or bacteria.

The cost of testing for air quality or property to confirm the absence, presence or level of fungi, wet/dry rot or bacteria may be provided only to the extent that there is a reason to believe that there is the presence of any of it. This testing may be performed prior to, during or after removal, repair, restoration, or replacement. 

Loss payable Section I- Property Coverage

Things to be aware of with this endorsement: the coverage only applies when such loss or costs are a result of a peril insured against and only if all reasonable means were used to save and preserve the property from further damage at and after the time of loss. Also, if there is a constant or repeated seepage or leakage of water or the presence or condensation of humidity, moisture or vapor, over a period of weeks, months or years unless such seepage or leakage and the resulting damage is unknown to all insureds and is hidden within walls, ceilings, or under floors.

For more resources regarding home flood insurance!

Graybeal Group, Inc. Offers A Wide Range of Products and Pricing

Graybeal Group, Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, The Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch.

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business. At Graybeal Group, Inc., we are committed to providing an experience that empowers our clients so they are educated on their coverage and the value we provide above all others.

For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523.

Homeowners Insurance: What is it and how am I covered?

Does my homeowners insurance cover this? The question that many insurance agents receive every day from their customers. In the next few paragraphs we are going to provide a quick overview of what your Homeowners Insurance Policy covers, and what may be excluded. 

There are four parts to your homeowner’s policy.

    1. Coverage A- Dwelling
    2. Coverage B- Other Structures
    3. Coverage C- Personal Property
    4. Coverage D- Loss of Use.
COVERAGE A- Dwelling

Dwelling coverage provides coverage for the physical home itself. Coverage A can also provide coverage for supplies and materials that are used in construction, repair, or to alter the dwelling and/or other structures located on the insured’s premises, these materials must be located on or next to the premises.

COVERAGE B- Other Structures

Other structures on the insured’s premises that are apart from the main dwelling, defined by a clear space between – ei: shop, shed, barn, or free standing garage. If the structure is attached to the main dwelling via utility line or fence, etc it’s considered detached and will be covered under Coverage B. You may wonder what is my limit and how is it calculated? Other Structures limit is 10% of your Coverage A (Dwelling) limit. In other words, if your Dwelling(Coverage A) is insured at $300K, your Other Structures (Coverage B) limit would be $30k.

Coverage A: $300,000.00 x 10% = Coverage B $30,000.00

There are exclusions for Coverage B and it is important to understand what they are. If you are unsure if your property may not be covered, ask your agent. If your “Other Structures” are being used for business purposes, being rented or held for rent to someone who does not reside in your home, coverage on this structure is excluded. One exception is if the structure is being used as a private garage only. If it’s being used as a private garage only, the renter does not have to reside on the premises for this “other structure” to be covered. 

COVERAGE C- Personal Property

Personal Property can cover your property while being physically at your home or anywhere in the world. Personal Property can range from furniture, electronics and clothing, camping gear and at times the property of a house guest if applied to your policy upon issue. This type of coverage helps pay to repair or replace your belongings after a covered loss, such as theft or fire.

The limit of coverage for Personal Property is 50% of your Dwelling limit (Coverage A). If your Dwelling limit(Coverage A) is $300K, your Personal Property limit (Coverage C) is $150K. 

Coverage A: $300,000.00 x 50% = Coverage C $150,000.00

Personal property away from the premises coverage limit is 10% or $1,000.00 of your Dwelling (Coverage A), whichever is more. Coverage away from the premise is strictly for the insured’s property, this does not apply to guests.  

In your homeowners’ policy, there are special limits of insurance. In other words, maximum limits that are designated for certain items. 

See table below: 

Maximum Limit of Coverage Amount   Items included 
$2500 Business personal property at the residence
$1500 Personal records, deeds, securities, passports, stamps, letters of credit, notes (other than bank notes), accounts, proofs of debt, tickets, and manuscripts. Also included is the cost to replace, research, or restore the lost/damaged information
$1500 Trailers not used with watercraft
$1500 Watercraft, including trailers, equipment, and outboard motors (an outboard motor is a propulsion system for boats, consisting of a self-contained unit that includes engine, gearbox and propeller or jet drive, designed to be affixed to the outside of the transom)
$1500 Electronic apparatus while in, on, or away from a motor vehicle, as long as it can be operated from the motor vehicle power source and retains its ability to be operated from a power source other than the motor vehicle. Includes tapes, wires, disks, records, and other media 
$500 Business property away from the insured premises
$200 Bank notes, money, gold (not goldware), silver (not silverware), coins, platinum, medals, and bullion (Bullion is gold, silver, or other precious metals in the form of bars or ingots.

 

There are also types of property that are subject to a max amount of coverage if they are stolen. See table below for those items and their max coverage amounts.

Maximum amount of coverage Type of Property
$2500 Firearms
$2500 Gold-ware, Silverware, and Pewter-ware
$1500 Furs, watches, jewelry, precious and semi-precious stones

Jewelry, Firearms, Antiques, or my Watercraft Trailer… Is this covered? In continuance of your Homeowners’ Policy’s Personal Property section, you have the option to have Scheduled vs Non-Scheduled property. Scheduled Personal Property can be a great benefit for those who have higher amounts of assets. Scheduled personal property is a supplemental insurance policy that extends coverage beyond the standard protection provided in a homeowners’ insurance policy. By purchasing a scheduled personal property policy, owners can ensure full coverage of expensive items, such as jewelry or firearms, in the event of a claim.

For example,  Steve has a Non-Scheduled policy and has a collection of firearms amounting to a retail total of $7,200. In the event that his home was broken into and all firearms were stolen, only $2,500 of this property would be covered/paid out. If Steve had Scheduled this Personal Property, these items would be covered and replace on a Replacement Cost valuation. (The limit you insured each item for)

COVERAGE D- Loss of Use

What exactly does this mean? Loss of use coverage is applicable when a residence or dwelling becomes uninhabitable due to damage that has been caused by a covered cause of loss. 

There are few different scenarios that would cause this coverage to kick in: 

1) Cost of Living Expenses: If the dwelling suffers a covered loss and is uninhabitable, the insurance company will reimburse the insured for the (necessary) increased cost of living expenses to keep a normal standard of living – while the property is being restored/repaired. This is referred to as Additional Living Expense. 

2) Fair Rental Value: If the loss occurred on the part of the residence premises that is rented out to others, the insurance company will pay the fair rental value while the building is repaired. Payments will be for the shortest time to repair/replace. 

Lastly, if civil authority doesn’t allow you to access your dwelling/premises because of damage to a neighboring dwelling, the insurance company will pay Fair Rental Value or Additional Living Expenses for up to two weeks. 

Understand your insurance and what it covers! Let our team of experts at Graybeal Group Inc. review your current coverage and create an Insurance Protection Plan that’s suited just for you at a price you can afford!

If you have any questions or would like further explanation, call our office at 541-567-5523, or email our Lead – Home and Auto Agent  Ana@graybealgroup.com

I’m pretty confident that if you asked anyone who has ever owned a rental property you would get an overwhelming response that it’s not as lucrative or easy as they thought it would be. In fact, owning a rental property can be a major pain, and end up costing you a ton of money!

I certainly don’t mean to be a “Debbie Downer”, and I know that if it’s done right it can be lucrative, but from an insurance agent’s perspective, I don’t see a lot of people doing it right.

So you’re probably thinking, “Well Chris, you are an insurance agent. What do you know about real estate or rental properties? Why should I take advice from you?”

I’m not a real estate agent, and I don’t own a rental property. However, several of my friends/family/clients/co-workers own rentals, and because I insure a bunch of their properties, I’ve had a first-hand account of the process, and I’ve learned what to do, and what not to do.

1.) Do your due diligence on the rental property

This is undoubtedly the biggest mistake I see landlords make. They are in such a rush to make money, they don’t pay enough attention to the property. I get it–you want to buy the cheapest property possible so you can turn the biggest profit. The problem with that is, the property is cheap for a reason. It has problems–lots of problems.

Many people buy properties in low income areas, with hopes of re-painting the walls every 5 years and making some rent money. The problem is, that’s the exact type of property that insurance companies don’t want to take a risk on.

Be very careful with the “as-is” property too. Unless you have money to burn, stay away. You are almost always going to spend more money than you think. Most “as-is” properties are either forecloser’s or properties that have been vacant/abandoned.

If you don’t know what to look for in a rental, hire a trusted 3rd party home inspector and make sure everything, and I mean everything checks out. Don’t leave any stone unturned.

Everything must be up to code before you have a tenant in the house. Period. If it’s not, make it up to code.

In particular, you need to make sure the wiring, plumbing, heating, and roof are all “problem-free”, and that they’ve been upgraded or updated within the past 10 years. I’ve seen more problems with those three things than anything else, and you are putting yourself (lawsuit), and your tenant at risk if they aren’t in good working condition.

And whatever you do, make sure there are no mold problems. Don’t just assume there isn’t. You need to test the house and document it. Mold can kill–literally.

Of course, you may want to walk away from a property because it might be cost-prohibitive to bring everything up to code, and that’s something that only you can decide, but before you buy a rental property and put get a tenant, do your due diligence on the home.

It’s worth the time and effort.

2.) Have written contracts in place

Find a lawyer and pay his/her fee. Trust me it’s worth it. You can’t just tell your tenant, “You break it, you buy it”. You need to have a written rental contract and lease in place.

If at all possible, don’t sign less than a 12-month lease, and make sure your tenant thoroughly understands the terms of the contract. Don’t be lazy and just have them sign it without explaining everything first.

You can save yourself a lot of time, money, and hassle if you do this, and it will show the tenant that you are serious and that they will be held accountable for the property.

rental property insurance

3.) Thoroughly screen your tenants

Rarely have I seen someone screen their tenant(s). Most landlords are so worried about getting someone in the property to pay rent, that they fail to check the people/person out.

At the very least, you need to make sure your tenant is carrying their own renter’s insurance (HO4 policy). Let the tenant know that your insurance doesn’t cover them whatsoever.

Really what you should be doing is checking their credit and also checking for any criminal activity. These are reports that cost very little upfront and will give you great peace of mind knowing that you have a trustworthy, reliable tenant.

Whether you allow pets and/or smoking is up to you, but I’d be careful with both, because, in the end, they could cost you money if you have to repaint, replace carpeting, etc. They could also potentially result in liability exposure with dog bites, and house fires.

4.) Make sure you have rental property insurance

Having the correct type of insurance for your rental property is paramount. The problem is, most people don’t know that they need a certain type of policy.

You can not buy traditional homeowners insurance for a rental property. What you need is called a “Dwelling Fire” policy, or sometimes it’s referred to as a “Landlord” policy.

Keep in mind that the underwriting for rental properties is generally a little tighter, and the coverage isn’t as broad as what you would find in a traditional homeowners policy. As I mentioned before, many people buy properties in low-income areas, with hopes of re-painting the walls every 5 years and making some rent money.

The problem is, that’s the exact type of property that insurance companies don’t want to take a risk on.

Still, you must buy this type of policy for a rental. Do not buy regular homeowners insurance because it is not designed to insure a non-owner-occupied home, and your claim would almost certainly be denied if you had the wrong policy.

Another thing you need to be aware of is that most Dwelling Fire/Landlord policies state that if a property is vacant/un-rented for more than 30 consecutive days (with some companies it’s 60 days), coverage can be severely reduced and even eliminated, so make sure if it’s a rental property, don’t let it sit vacant too long.

If you think it will be vacant for more than 30-60 days, you need to let your insurance carrier know that, because that situation would most likely call for a different type of Dwelling Fire policy.

5.) Keep tabs on your rental property

I’ve had people call me for quotes for their rental properties, and when I begin to probe them on the construction information, they know absolutely nothing about the house.

Some people don’t know whether the house is brick, siding, or what it’s made of. They don’t know how old the roof is, or the last time the heating was updated.

Folks, if you own a rental property, you need to know all of these things.

I had someone one time who had purchased a home from a contractor who had flipped it and hadn’t even seen the house once. He bought it on the word of the contractor and knew nothing about it except that he wanted to rent it out as soon as possible. That is well, not very smart. You shouldn’t be trying to get insurance on a house you haven’t seen yet.

You need to keep tabs on your property.

Keep records of all repairs, and make sure you physically visit or at least drive by the property every 3-6 months or so to make sure everything is in good working order. Remember, this is an investment. You need to maintain and take care of the property just as if it was your primary residence.

Owning a rental property can be a lucrative business that can generate a lot of passive income, however, if you don’t abide by these 5 rules, it could end up being a royal pain, and cost you a lot of money in the process.

 

Graybeal Group, Inc. Offers A Wide Range of Products and Pricing

Graybeal Group Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch. 

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business.

For more information, we invite you to call Graybeal Group Inc. at (541) 567-5523. 

I was recently asked this question by one of our Graybeal Group, Inc. clients, and thought I would share the answer here for our readers.

There are a lot of things that go into homeowners and auto insurance rates, one of them being credit. I’ve heard a lot of complaints from people who don’t like the fact that insurance companies use credit in their underwriting.

Some people have absolutely no idea that it’s used in the rate at all.

At the end of the day, there’s not much we can do about it though. Insurance companies have been using credit in their rates for decades, and that’s not likely to change.

By the way, insurance companies don’t pull your credit like a mortgage company or credit card company does. There is no negative impact on your credit as a result of an insurance company looking at it.

When I say “pull” what I mean is that the insurance company is doing what’s called a soft inquiry, which is not the same thing as having your credit pulled (hard inquiry).

When does credit play a role in insurance rates?
It’s important to understand that insurance companies don’t continuously check or monitor your credit. Usually, they only check it when you first get a quote and/or sign up with them in the very beginning.

This means that if your credit score increases (or decreases) your insurance company does not automatically know about it.

So, to my customers question of whether or not his increased credit score will lower his rates, the answer is not automatically.

What has to be done on our side as the agent is contact the carrier the insurance and ask them to do what’s commonly referred to as a “re-score”. This is when the insurance company can re-run the person’s credit (soft inquiry) to see if there is any positive bearing on the rate.

This isn’t something that the insurance company is going to let the agency do every single year, so it’s not worth even asking unless there has been a significant change in your credit score, and only you as the customer would know if that was the case.

If you’d like to get a better handle on your credit rating, it could be helpful to setup credit monitoring. We hope this was helpful! As always, leave us comment below if you have any questions.

 

Graybeal Group, Inc. Offers A Wide Range of Products and Pricing

Graybeal Group Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch. 

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business.

For more information, we invite you to call Graybeal Group Inc. at (541) 567-5523. 

Why do my auto insurance rates keep going up even though my car is getting older?  At Graybeal Group, Inc., many of our clients ask this question so I would like to address it from a couple of angles.

First things first, even though it’s called car/auto insurance, it covers more than just your car. It should technically be called “auto-owners” insurance, similarly to how home insurance is actually called “homeowners insurance”.

It’s important to understand that there are a lot of variables that go into insurance premiums, and with auto insurance, it’s no different.

The insurance company is much more concerned with you crashing into someone and causing them (or yourself) bodily harm, or death than they are about your car. A car is a material possession that can be replaced.

Human life is not.

auto insurance graybeal group

When is the last time you looked at your auto insurance policy?
If you look at it you’ll notice there are a lot of different coverages on your auto policy.

Bodily injury
Property damage
Un-insured motorist
Under-insured motorist
Medical Payments
Loss of Income
Funeral Expense
Loss of use
Rental Reimbursement

These are all things that you are covered for on your auto policy. How many of them have to do with your car?

None.

How many of them have a price next to them on your policy?

All of them.

Your car isn’t the only thing you’re being charged for on your policy
That’s because auto insurance covers far more important things than your car as mentioned above.

Let me re-phrase that: your car insurance rate isn’t just based on your car.

You’re not the only one…
It’s also important to understand that you are not the only person your insurance company insures. You are one fish in an ocean of other fish, sharks, and sea creatures, all of who have different characteristics and risk profiles.

Insurance is all about spreading costs over a large number (risk pool) of people, which each person paying their fare share. That risk pool is constantly changing and is impacted by a ton of different things, including the overall economic climate.

This means that you are sharing in the cost of millions of other people, many of whom may have poor loss history and/or credit.

That’s what insurance is though — sharing in the cost.

The next time your auto insurance rates go up, take a look at the big picture. Make sure you’re looking at ALL of the coverages, and corresponding rates.

Hope this helps!  If you would like to know more about Car Insurance be sure to visit our page dedicated to it.

 

Graybeal Group, Inc. Offers A Wide Range of Products and Pricing

Graybeal Group Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch. 

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business.

For more information, we invite you to call Graybeal Group Inc. at (541) 567-5523.