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 wear