Home & Auto Industry Knowledge

All right, I'm going to go over knowing the industry on personal lines here just because knowing like how these homes are built and stuff can be a lot of help. So let's look at a house here. I'll look at my parents house, then we'll kind of look and see what this thing's all about. So let's say we are insuring my parents house here and you're like, gosh, I don't know what everything's looking like here. On my stories, this all is what everything's all looking like. Well, for the first thing here, you know we're going to look at just what this thing's made of and see we have some stone up front here. You can't really see this very well. I know there's better pictures here down the country, so it's a little tough to see street view. I actually just sold it. So here we go. Okay, we can't zoom in, which is not fun. So looking at this thing we know we've got this would be a very steep pitch roof. Most the roofs you're looking at, they ask if they're like low steep, me like medium or something. And then like steep roof pitch. This is 100% a steep roof pitch. This is extremely steep here you can see there's a detached the restaurant garage with a living space above it. So this would be considered other structures. This thing. If you're not quite sure how much insure for, I want to say this thing might be worth like, it might be worth like $200,000 because you got a big three stall garage, you got a thousand square feet of living space above it. I mean, yeah, you're probably, probably not far off of $200,000. Maybe, maybe around 150. I know the home itself appraised for 1.65 million. But again, you got a lot of stuff on here that you're not insuring this thing for 1.65 million. So if we're looking at it, I know it sold for a lot less than 1.65. But let's say, let's say you're talking to my dad for example, and you have no idea who he is and you're like, hey, what do you think this thing's worth? Well, I got appraised for 1.65 million for the whole property. All right, well if I go look on this thing and it's going to show me here that this thing has got lot size 5.4 acres, which that right there I want to say is about $250,000 maybe for you know, a plot of land for about five and a half acres there. So we know that's going to be taking part of it. If I get the bird's eye view, somewhere in here there's a shop. If it shows me anywhere in here there's a shop. And see there's a pond. Here's the upstairs of that, that man cave above the garage. Here's the back. Here's the shop right here. So that shop is I think 60 by 80. I believe it's about a hundred thousand dollar shop. So now we're taking off 350,000 and you got a $200,000 garage. So now we're taking a $550,000. So the home itself is probably worth about $1.1 million, which I know exactly what everything's all worth there. So yeah, that's pretty much exactly correct. So it's like well, how much I put dwelling a at. Well, even though it appraised for 560, you got to take in the other factors on it. So somebody lives on a golf course, their plot of land probably is worth about a hundred thousand dollars. So we, if it's worth appraised $1.1 million for the whole, whole plot of land to buy that, for the whole, you know, buy that location, we're nowhere. We're nowhere. We know we're probably not insuring it for 1.1 million. Probably insurer for a million. Right. And again it's going to be built based on the rebuild cost, not the actual, not the actual like value of it if you sold it. Right. So we see right here we've got a really nice deck in the back here. This right here is most likely hardboard. So a lot of the sidings is a big thing. So if I type in types of siding, a lot of siding is usually vinyl, hardwoods, hardboard, something like that. So here's wood shake, clapboard and hard border, basically the same thing. So here's clapboard, right. Basically what everybody's freaking got. Dutch lap. This is basically vinyl board and battery. Like this is what they have in that house here. You know, we're not looking at double four inch. That is my really like the make of it. A make of the siding, straight shake. So this is something that's very popular. Straight shake, cedar, treated wood, spent fiber, vinyl. Vinyl is usually going to have like really this thing like here's the straight shake right here. These are clapburger hardboard. And then you've got that one we're just talking about like board and battering or something. And then I'm trying to look for vinyl because vinyl is also not a very popular one. Straight shake again, like here's exactly my parents have. And then here, right here you can see there is the stone. So I think there's two types of stone. There's like, gosh, I haven't done a home in a little bit. It's like manufactured, like nice manufactured stone. And there's just like normal stone. This would probably be the normal stone. Whereas my parents have got. So you see right here, like this is maybe that. I can't think of the name, but it's not the normal stone. It's like the different, different type there, right? You have the straight shake right here, which is more expensive for siding. Here's that board and battern. Here's a. Here's that stone right here. And. And then you just look inside the house and then give your percentage. So you have to shake. Shake. I know there's shake on this side. You probably see it over there. So you get shake on probably 10 on the house. You got this or 5% of the house and the rest. But maybe not 10 because you got the whole other side over here too. So maybe like, maybe like 20. Probably 20 for that shake because you got this whole side and then all looping around. If you go see the back of it here is either the clapboard or hardwood masonite. So you'd want to see that. And the inside, they're gonna ask you like, oh, what kind of floor do you have? This I think is just vinyl sheeting because it's really thin there. Like this stuff is very nice. You see, it's a thinner board. It's got the nice grooves in it. Like this is like, this is hardboard right here. Hardboard flooring, which is expensive. So we'll make sure we get that in there. You can see the high ceilings. I mean these are normally a normal house has got anywhere about 8 foot CD ceilings. If it's a nicer house, you're looking at 10 to 12. You can see right here drops down. So it's all 10 foot. This is 12 foot to give you guys kind of an idea here. And then you get the upstairs. Supposed to be a two story house. And then you check to see the basement's finished. If you don't see pictures, the basement's probably not finished. And if you go through this thing, you're going to see there is no basement. So it's, it's not finished there. This right here, I don't remember. I think this maybe be like nine. It looks a little higher than normal, but nine foot ceilings. You see right here, it's all that hardboard they have treated. It's like treat, like treated vinyl or something. It's not a cedar. Cedar is going to look like raw wood. Like that's a lot of what these nice decks are made out of because cedar is going to last forever and it's going to get rained on and it's going to be just fine. This is something that's like treated. So I wanted to say this deck alone costs about $50,000 so that you can get an idea of the construction costs there. They've got not a nice trees and shrubs. So if we have something in the policy to, you know, make sure that stuff's covered, that'd be nice. So we got all this. And again, looking at this thing, it doesn't look like there's any tree houses, any pools, anything like that. So it probably said good. Like, you know, see here a lot of the patio decks. No tree or. No, no pools or anything. So there's the siding and then how to tell if it's hail resistant for the roof. There really is no way to tell if a roof is hail resistant. This one I can tell you is. But like there's no way really of telling. This is what's a composition. Architect composition. Asphalt shingle roof. This is like what 99% of people have. So we can see that right there. I'll show you the other types of roofs here. Types of roofs, homes. So honestly, a lot of this stuff you can just figure out here. So here's a hip roof versus a gable roof. So this is one thing. See right here how it's got this stuff coming out? Yeah. Supposed to be gable opening, opening, opening, opening, opening, opening right here. You know, that's a gable rough. Let's say this thing was a little more square and you got rid of these little pitches right here, these little openings. If it went down like this the whole way around, no openings. That's a hip roof. Now. Okay, so it's hip roof versus a gable roof. And you can see right here, open gable and flat obviously. And hip right here. You know, like this stuff. I mean, sure, if you don't have. Look at it like nobody's got a freaking butterfly row for a shed rough on their house. So just hip and gable are the main two right there. I should be looking at types of shingles. That's what I'm looking for here. That's not a lot I want to show you guys. So here's this one. I can't remember what this is called, but you're gonna see this like Arizona, you're not gonna see this in the Midwest or anything. The other one you guys are going to run into is wood shake shingles. So here's a metal roof obviously. Here we go. Cedar single or shingle roof, wood shake, whatever. Same thing. This is really tough to insure. You have to note this obviously when you're insuring a home. We did have somebody like this. I think that left us because we didn't have really good options. Those really tough to ensure this type of stuff. So know, you know what kind of roof they have, what kind of shingles. Again, almost everybody's got this asphalt shingle, the composition shingle, basically the exact same thing. But if they have these cedar shake or wood shake or cedar shingle, whatever the heck you want to call them. That's another one metal. That's interesting. And then the last one there was like that tile roof, you know, that you see in Arizona. And those things will last like 50 years. So you know, that's kind of a good point too. If, if somebody's got a metal roof, they're probably not replace something 50 years. If they got a tile roof like that, like that one we saw that was like in Arizona, like this thing right here, this stuff never ever gets replaced. Like it's, it's lasting 50 so years, you know, I mean it's, it's, it's on there. So somebody's got an ACV roof that's probably not the end of the world. Obviously I'll explain it to them still. But in that situation it's been just fine. Whereas an asphalt shingle roof, honestly, they're usually getting replaced for 15, 20 years, if not, if not sooner. With all the hailstorms that came through. A lot of people have had their roofs replaced in 2014 and 2022 with all the hail storms. But hair resistant shingle or asphalt shingle response last 30 years. So to give you guys kind of idea there, you know, if somebody's like oh Yeah, I got 25 year old rough, like it's, it's at the end of its Life and it's ACV, they're gonna get a payout of like freaking 5, 10, 20 of that thing. You know, I think actually, I think the, I think it usually caps out of 30 as the lowest will go. But know that stuff for the types of roof There you're gonna see construction type on this stuff. This is all frame. I, I think 99 of the homes you guys are gonna see are frame construction. I don't know if I'll be able to show you here, but like there's, it's. It's like the other times are masonry. Right? Masonry. Non combustible. Whatever the deal is, there's no brick, no concrete blocks, nothing here they have wood framing as a skeleton of this house. So does 99 of other people and Zillow honestly usually show you. But this thing right here is wood framing. And then it's going to say what's the siding type? What's the exterior? If it look like while we've got some stone siding, we got this, we got the shakes, we got the, the shingle on the outside here and then like the board of battern. And then you know, a lot of it's hardwood or clapboard, whatever. So understand that stuff. If they're asking you, you know what was last time H Vac was repaired was the last time this was repaired. We just went over rough. We don't ask for H Vac stuff. But you're going to take your best guess on it on a house. If it's what travelers I think traverse the one that really asks that and then we'll obviously need to confirm it before we sell it. Usually your H vac system was replaced over 15 years. So if you got something that's built 25 years ago, we know it's probably around 10 years old. Right. You know, it's 45 years ago. It's either right at about 15 years old or it was probably just replaced. So and you get kind of an idea based what the house looks like, you know. Right. So then you know that's, that's what you do for H Vac. I want to see if this thing talks about the heating in here. Lot size heating. Geothermal. So our house or my parents house is geothermal heating. Okay. That means is it's these little, these little like pex tubes that are in the concrete. They're laid down in the concrete before the concrete is poured for the found we're not the foundation but like the, the floor, the baseline floor of the home. So the basement floor or if it was obviously slab on gray to be the slab right there. But it's poured in there and then it runs hot water through and then the, the heat rises. Okay. So that's, that's the heating type there. So we need to know that this thing is not Natural gas for, for the heating. Most people have a furnace. You know, like the furnace, it kicks on, makes it loud. It's got the vents in it. That's usually natural gas either through propane or whatever the case is. Right. These guys have geothermals, understand that stuff. There's oil, I think I believe oil heating is old stuff. That's like a boiler system typically. So if you got a boiler system, you know, obviously know that stuff. You can have an elect. Electric is definitely like the electrical panels down at the bottom. Like I don't know if you guys are here, like on the trim right here, there would be a little, little heating deal on the bottom there. And that might be electrical. So just so you guys know what, what to look out for in that sense. They got a fireplace. So you know, you get a look at that deal. Some companies can ask how many fireplaces I have. So look at that build. 2018. Stone veneer. That's what it is. Stone veneer, not the manufactured. So stone veneer is the nice looking stuff like this. There's also a lot of brick and brick veneer. Typically it's brick veneer. Okay, says one and a half story. That's because the. I think that's because the upstairs does not go across the whole upstairs you're gonna see right here's a window right here. But if you go look at the upstairs pictures, it's literally just big enough for this. This window was my bedroom when I looked at the home. And it was just a 19 foot ceiling. So just to give you guys kind of idea there, that's what. That's a one and a half. That's the Ms. A shingle part there. But you know, I got that. So that'll give you guys kind of an idea on the homes there. If it was like masonry, it would look like stone blocks or brick the whole way up. But again it's gonna be a smaller house or like it's gonna be really thick blocks. I mean think about just something that's like usually like commercial buildings. Imagine it's. It's stone blocks on the outside or concrete blocks on the outside. Then you walk inside, it's still concrete blocks, right? That's. That's masonry. That's not. That's extremely rare on homes. So there's that stuff. That's how long H vac. All that stuff usually lasts. Knob and tube wiring is. Let me just find a picture of this. This is for really old homes. Like usually the 50s are past. That's what it looks like. Right There. And you can see this is a really freaking old home. You have the plaster lamp right here. So this is inside the wall. There's plaster. This is the, the lath. There's plaster on the outside. So that's would be like the drywall. Like what? Instead of having drywall, like we do plaster. Laugh with knob and tube wiring. Knob and tube wiring is extremely a fire hazard. So it is again in very, very old homes, usually have plaster on last. So it gives you kind of an idea. It's probably even older than the 50s. Typically. I bought a home back. It was built in the 90s or not. I'm sorry, not 90s, 1900, exactly. And it had knobbit tube. But it was not, it was not still active. So ask the insurer, they have it, they might have it in the home. But if there's an electricity running through it, then it's obviously fine. But as you can see, all this stuff here, plaster and laugh. Plaster and laugh. Plaster and laugh. Plaster and laugh. I mean it's like everything here has got plaster on that for it. Let me look at this electrical system. This thing's like a hundred years old. So knob and tube is extremely old. Galvanized plumbing is kind of the same deal as knob and tube. If you guys see that. Galvanized plumbing I think was what a road with the water going through it. So it's really, again, it's a very old deal. I don't know if it was a liability hazard or what the deal was maybe in a road and water would buttered in, which happen often. Again, almost nobody's using galvanized plumbing. But again, if it's a old home, like older than 1950, go in there and ask about it. Right? We don't wanna, we don't want to know for sure. We don't wanna want to be wrong. Let's look at PEX plumbing. This is what, this what most people are using nowadays. So you got the red and blue tubes, obviously very flexible. PEX plumbing is what most people have. If it's not pex, usually pvc, then this is the second most popular one right here. I mean it's like you know what people typically got, right? So these are the two most common types of plumbing. If they're going to ask you. So let's see, the major, the four major utilities are like utilities that people want to know, insurance companies want to know about is roof, electrical, plumbing, H vac and then H vac. And I already kind of went over that too. So that's a Lot of the property side home and auto or auto I didn't shoot like people typically drive, I don't know, 10, 000 miles a year. So they drive, you know for their work a lot. You're 15,000 miles a year. If they work from home, probably 5,000 miles a year. Right. So that's kind of what people are typically driving. You know how many vehicles are going to commute versus personal. Like if you've got a sports car, they're probably not driving out of work every day. That's probably their personal vehicle. Or if they got two, if they got a truck and then two other vehicles, there's two drivers. You know the truck I mean very well could be. Could be the commute one. But it's probably probably pleasure in my thought. You know it's mid probably probably use for projects. You're not typically having multiple vehicles used for commute like per driver. Right. So there's usually one that's left for pleasure. Oh, almost nobody's got that safe driving course that you take when you're like 65. I've never talked to anybody with it obviously go nas that stuff. I mean that's really get to mostly here. I'm gonna pause this video just see if I can think of anything else here. I suppose the other thing too is like an umbrella and stuff. You know, an umbrella. You typically want to have an umbrella or enough liability to cover people's net worth. So people own land. Probably a very good idea to have an umbrella because land is worth a lot right now. Farmland is worth probably about $15,000 an acre right around. So you know, we know people with a couple hundred acres of farmland and yeah, they got, they got high umbrellas. Now we have one person who's worth like $50 million. So does he have a $50 million umbrella? No. Because you know, you also got to take in the fact well how are they going to sue you for $50 million? Right. You know, and I think he's got a $5 million umbrella with million dollar limits. So you got 6 million that's literally be sued for if you kill one person and you know somebody gets a really good lawyer or you kill a couple people or you get accident, you hurt a couple people. What's probably worse is if you get an accident, you paralyze somebody and now they can't work. Now they're spend the rest of their life in a wheelchair. I know a lawsuit that drug out to $5 million from that. So you know, that makes more sense. But at that Point you just got to kind of look at the like odds there, right? Like okay, I'm worth fifty million dollars. Do I really need a fifty million dollar umbrella? Do people really gonna have the ammo to go and sue me for that much? Most likely not. But if you're worth five and under, yeah, I'd get an umbrella that covers that. Very least you're not worth. So you gotta be farmland. It could be savings, could be. I own other real estate. Obviously if you own a lot of real estate and llc, you might not need that umbrella quite as much as where the LLC might need it more. Right. So I own all my properties in my llc. I frankly don't have much to my name honestly. I've got a car and shoot, that's about it. So I have a one million dollar umbrella, but then I've got a one or two million dollar umbrella on my LLC for the properties. And then I've got a two million dollar limit on my GL policy, a three million dollar little for, you know, policy for the agency. So it's kind of spread out there, right. To give an idea of how it is also, I'm just letting you guys know I am not worth, what did I say, like $6 million? I wish. But no, not worth $6 million. But you know, I wanted to be safe there. So there's an idea of that. You know, if you get a camper or a motorhome, you can park those things permanently. And some of the companies like American Modern will ensure the thing as a mobile home instead of motorhome because it's parked permanently. So knowing that the mobile home is parked permanently or not. Romly will ensure motorhomes that are rented out to others. So it's good to know if they're rented out to others or not. You know, if you got any like toys like go kart or motorcycle, I mean usually motorcycles or street use or like a golf cart or an atv. Got to know if they're street, street legal, you know, so that's a big deal because they're street legal versus you know, riding around in the cornfield. Well, shoot, there's a lot more risk being on the, on the road. So yeah, I mean there's, there's majority of, you know, construction and stuff like that. Last thing I say for construction here real quick is like, like, like a builder's risk. This kind of applies to all property, you know, commercial property, builders risk homeowners policies. You know, construction usually takes about eight months, seven months maybe. It's like anywhere for like six to nine months for construction to give you guys kind of an idea, obviously asking insured how long it's going to take for the project. And you know, if they're talking about structural work that's on the frame, that's the construction type, are they doing anything, are adding to, you know, the masonry, if it's masonry, are they adding to the frame? If it's a frame building, you know, are they just going in there and ripping up the floor and putting new flooring in, new carpet, or are they going in there and adding an addition on there? Right. Are they knocking down walls? They do anything on those lines? So there's an idea there and that's yeah, it's majority of how how this stuff works, how construction looks that knowing the industry of home and autos. So yeah, go and complete the activity and see the next deal.