1. RAY DEPAOLI AMERICAN FAMILY AGENCY
RAY DEPAOLI, AGENT | AMERICAN FAMILY INSURANCE
3143 Western Row Rd | Maineville, OH 45039
Office: 513.234.6157 ext. 85219 | Mobile: 513.460.3594
Cincinnati Homeownership Center
Congratulations! Buying a home is exciting and a little nerve wracking at the same time.
The investment you’re making may be the biggest financial move you will ever make.
That’s why I’m here to help you understand how to properly protect your home and your
future financial wellbeing.
I will discuss what home insurance is, how it works, what and who it covers and share a
little history lesson with you.
It’s extremely important to work with a carrier and agent that truly understands your
needs and doesn’t look at you as a number. I know of carriers from firsthand experience
that will cancel a policy holder who has a claim during their first year. That can create
major problems for you if you are canceled early on as a new home owner.
Similar to a credit report you have already established an insurance history report
(CLUE) (Commercial/Consumer lines underwriting examination). How you handle your
home and auto insurance from claims filed (type and frequency), to policy lapses and
cancelations can and will affect your premium.
Working with the right agent will make all the difference. Selecting a policy can be
confusing. Working with an agent that asks the right questions could literally make the
difference between financial recovery and financial ruin.
My goal is to educate my clients so they don’t have to suffer any financial setbacks that
could simply be avoided with proper plan.

2. What is insurance? Insurance is a form of risk management in which the insured
transfers the cost of potential loss to another entity in exchange for monetary
compensation known as the premium. So basically when a person doesn’t have the
financial means to cover future losses to their property or other persons’ property and
physical wellbeing due to their negligence; they transfer the risk to a 3rd party (Insurer)
for a fee (premium).
Prior to the mid 1700’s home owners had to have the means to self-insure. If their house
or cabin in many cases burned down and they didn’t have the means financially to rebuild
they became homeless.
In 1752, the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire
became the first mutual fire insurance company in America. Much like London in the
1600s, houses at this time were made almost entirely out of wood. Worse yet, the
settlements that grew into the cities were built close together. This was originally done
for security reasons but as cities grew, developers built homes very close to each other for
the same reasons they do today - to fit as many homes as possible on their development
plots.
Property and Casualty Insurance is designed to bring the insured back to the state they
were in prior to the loss. It is not designed to improve one’s position financially.
Why is home insurance required by the lender? Simply to protect the risk they (bank)
took with the borrower. They want to ensure that if the property suffers a loss that it will
be repaired to the condition it was in when they lent the money. The lenders concern is
getting repaid their money lent plus interest. If the home is damaged they want it repaired
so if the borrower defaulted they can repossess the home and sell it to recoup the money
they originally lent.
In some cases when a borrower doesn’t maintain proper insurance coverage the lender
will apply their own coverage at cost that is quite a bit more than a traditional home
insurance policy and it will offer considerably less overall coverage.( Force placed hazard
coverage),
How home insurance protects you. If you don’t have millions of dollars set aside for
future losses; one catastrophe could ruin you financially for the rest of your life.
Transferring this risk for a small fee (premium) protects you from financial ruin. It’s a
smarter way to leverage your money.

3. Types of coverages
Dwelling (Coverage A)
Covers the structure inside and out and only the structure. The value will be based on
Estimated Replacement Cost or Actual Cash Value. Insurance companies calculate the
replacement cost using todays’ labor and material costs plus demolition and debris
removal. Many people make the assumption that the value is based on the market value;
which is what realtors use to value a home’s sale or purchase value. On average the cost
to rebuild is normally $100 to $150 per sq. ft. Factors such as materials, available labor
and demand will dictate the final cost.
Homes built prior to 1950 will often times be insured for just Actual Cash value. Some
insurers will offer a Functional Replacement cost value. The reason most insurers will not
insure older homes for replacement cost value is due to the older homes were built with a
heavier duty, less available materials than todays’ homes. Example, solid brick, 12” solid
heavy beam joists and solid stone foundations. To rebuild those homes today would be
unrealistically expensive and cost prohibitive.
Actual Cash value – Insurance carrier pays what the depreciated value is at the time of
the loss. Example: You have a roof claim and your roof is 15 yrs old. The insurance
carrier will settle with you for the value of a 15 yr old roof. Unfortunately for you, you
can’t buy a 15 yr old roof so you have to buy a new roof and the cost is a lot more than
what the insurance carrier gave you. Now you have to come up with the rest of the
money. Your bank wants that roof fixed and you are contractually bound to do so in a
timely manner per your mortgage that you signed.
See how things can get out of control quickly. Having the right plan in place could make
all the difference. Saving a few dollars now in most cases costs you a lot more in the
future.
Personal property- (Coverage B)
This covers all the normal, everyday contents in the home that are not attached to the
structure; appliances, furniture, clothes, electronics etc. This will not cover jewelry,
firearms, artwork and collectibles. These would need to be covered under an
endorsement.
Loss of use- (Coverage C)
This is very important. This coverage provides financial assistance if the homeowner
becomes displaced due to a loss. It’s designed to pick up expenses that are incurred while
staying off premises when the home is being repaired or rebuilt due to an insured loss.
These are expenses that wouldn’t normally happen while the home owner is living
normally in their home.
Always look for coverage on a sustained basis. Avoid dollar caps.

4. Liability – (Coverage D)
This protects the homeowner and those residing in the home from lawsuits stemming
from an act of negligence or perceived negligence on their part. This includes legal
defense costs and damages paid.
Medpay- (Coverage E)
This covers any guest’s medical expenses from injuries suffered on your property.
Endorsements- These are extra coverages you can add to your policy to provide the
extra protection you may need. Basically allows you to tailor a plan for your specific
situation.
Here are the most common endorsements offered today.
Back up sewer and drain – Will provide coverage for any water or sewer backups in
your basement. This is not part of your dwelling coverage and is not standard policy
coverage.
Earthquake – Will provide coverage for your structure if a loss results from an
earthquake. The typical deductible is a % of your dwelling limit; normally 5-10%.
Example – your dwelling is $200,000 so your earthquake deductible at 10% would be
$20,000.
Jewelry – Provides coverage for valuable individual and pair/sets of jewelry.
Documented appraisals are normally needed.
Fire arms – Provides protection for weapons, arms, collectible and functional.
Artwork/ collectibles – All pieces must be professionally appraised. Wall art, tapestries,
rugs, statues, figurines, books etc.
Home business- Will provide coverage if your home based business involves face to face
client interaction or storage of sensitive client data/ information.
Cost influences
Deductibles – This is the portion of risk you are willing or required to assume as part of
the contract for insurance.
Example - you have a $1000 deductible. You have a roof claim that comes out to
$10,000. You would be responsible for the first $1000 of repairs and the insurance
company would pick up the other $9,000.
Neighborhood – Claims history within a close radius will affect pricing.

5. Structure – Age of construction, materials used are major influencers. Most homes built
after 1978 are less expensive than pre 1978 build. Older homes were built with more
expensive materials.
Endorsements – additional coverages not built into the standard policy.
Coverage limits
Prior personal claims history
Never assume that just because you buy a policy that everything is protected. Not all
policies are created equal just like not all agents are thorough and ask the right
questions.
Every home and client is different. One size does not fit all.
Professional Bio
With over 17 yrs experience in the financial services arena; I have an extensive lending
background in residential and commercial real estate, along with equipment and
automotive finance. My strengths are risk management, problem solving and planning.
My leadership style is servant minded; heavily influenced by time spent in the Army
Reserve. I believe you need to give before you can receive.
My architectural education, Army engineering experience coupled with my real estate
banking background and property insurance knowledge provides me a solid foundation to
assist my clients in putting together property and casualty and life insurance programs
that meet their needs and provide much appreciated peace of mind.
I’m an active member of the Mason/Deerfield Chamber of Commerce. I also volunteer at
the Cincinnati Homeownership center teaching prospective new home buyers the basics
about home insurance.
American Family Insurance agency: August 2014 – present.
Specializing in home, auto, life and business insurance programs
State Farm Insurance:April 2012- August 2014
Auto,home, life, banking, investments and health insurance programs
US Bank: Oct. 2001 – July 2011
District Manager- focusing on branch consumer and small business banking operations.
Beneficial Finance: April 1998 – Oct. 2001
Consumer finance manager
US Army Reserves: 1990- 1996
Specialist E-4 Combat Engineer
ETI Technical College – AAS Architectural Drafting 1991-1993