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Should You Consider Flood Insurance?

1/29/2020

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​Most homeowners understand the importance of homeowners insurance, but many have no idea that floods are not usually covered under their regular policy. Without separate flood insurance, you could lose everything if a flood destroys your home.

The National Flood Insurance Act of 1968 led to the creation of the National Flood Insurance Program (NFIP), which identifies areas of high flood hazard, establishes insurance rates, and helps provide insurance for structures and contents damaged in a flood.

As with all types of insurance, there are several different levels of protection. One option for many homeowners is the Preferred Risk Policy (PRP), which has a lower relative cost and is specifically for homeowners who reside in low to moderate flood risk areas. Even if you don't think that you are at a risk for flood damage, you might want to consider this type of policy. FEMA has estimated that ninety percent of all natural disasters in the United States involve flooding; and twenty-five to thirty percent of flood insurance claims are from areas that have been designated as "low risk."

Flood insurance is sold as a separate policy from your regular policy. If you don't think you have it - you probably don't. You should talk to your insurance agent or company about purchasing a policy to protect you against floods. Even if you don't live in a high-risk flood area, it is a practical decision to at least purchase the minimum coverage to protect you in case the unexpected happens.

When you purchase a policy, it is important to know exactly what it covers, how much it is worth, and the amount of the deductible. Many policies have a waiting period before it becomes active; make sure to find out for how long this waiting period, if any, lasts.

You may not think that a natural disaster such as a flood can happen to you, but no location is one hundred percent safe from a flood. The cost to replace your home or possessions is far too great for most people. Homeowners should remember the old age - it is better to have insurance and never need it than to not have insurance and need it!

Please contact our office for a no-obligation review of all your insurance needs.
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Home Insurance Considerations for Raising Grandchildren

1/27/2020

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A special challenge facing these grandparents is that state and local governments, communities and schools may not formally recognize their role in raising their grandchildren. While acquiring legal custody and guardianship of a grandchild may be financially and emotionally burdensome, grandparents should be aware that many benefits, including healthcare, emergency care, financial assistance and social security benefits, require proof of a legal relationship before they will help. Proof typically includes court guardianship papers or adoption papers.
To help grandparents raising grandchildren better understand their insurance needs, our agency offers tips and considerations regarding auto, home, health and life insurance.
​Home Insurance Considerations for Raising Grandchildren
  • When caring for a grandchild and his/her visiting friends, consider increasing your liability coverage through an umbrella policy in the event that someone is injured on your property. Remember that backyard items, such as a trampoline or pool, may require an increase in liability coverage.

  • Keep in mind that if your adult grandchild rents from you, he/she might not be covered under your standard homeowners policy. Contact our insurance agency to find out what is covered and if a renter’s insurance policy might be needed.
Take the Quiz and see how much you know about insurance considerations for raising grandchildren
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What You Need to Know About Renters Insurance

1/23/2020

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Renters insurance provides financial protection against the loss or destruction of your possessions when you rent a house or apartment. While your landlord may be sympathetic to a burglary you have experienced or a fire caused by your iron, destruction or loss of your possessions is not usually covered by your landlord’s insurance. Because in most cases, renters insurance covers only the value of your belongings, not the physical building, the premium is relatively inexpensive.

By purchasing renters insurance, your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods). Like homeowners insurance, renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.

Renters insurance covers your additional living expenses if you are unable to live in your apartment because of a fire or other covered peril. Most policies will reimburse you the difference between your additional living expenses and your normal living expenses but still may set limits as to the amount they will pay.

There are two types of renters insurance policies you may purchase:
  1. Actual Cash Value – pays to replace your possessions minus a deduction for depreciation up to the limit of your policy
  2. Replacement Cost – pays the actual cost of replacing your possessions (no deduction for depreciation) up to the limit of your policy
With either policy, you may want to consider purchasing a floater. A standard renters policy offers only limited coverage for items such as jewelry, silver, furs, etc. If you own property that exceeds these limits, it is recommended that you supplement your policy with a floater. A floater is a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss.
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The homeowner's severe cold weather survival guide: Outside the house

1/22/2020

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The weight of snow could damage your roof. Backed-up gutters might allow water to seep into your house. Vigilance is key during severe weather—stay ahead of the potential hazards outside your home.
  • Keep sidewalks and entrances to your home free from snow and ice. You don't want anyone to slip and fall.
  • Watch for ice dams near gutter downspouts. Ice dams can cause water to build up and seep into your house. Clear gutters of leaves and debris to allow runoff from melting snow and ice to flow freely.
  • Run your swimming pool pump at night when the temperatures are expected to go below freezing. This will keep the water flowing through the pipes.
  • Keep your garage doors closed. This will prevent weather damage to whatever's stored in there. Plus, if your garage is attached to your house, the home entrance door from the garage is probably not as well insulated as an exterior door so this will keep more heat in.
  • Double check for dead, damaged or dangerous tree branches and have them removed.Even if they looked sound earlier in the year, trees can be affected by ice, snow or wind. When stressed, branches can fall and damage your house or car, or injure someone on or near your property.
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In the event of a problem
Sometimes the unfortunate happens—but quick action can minimize the damage. And if you have a standard homeowners insurance policy, it’s likely you're covered for most deep freeze disasters.
  • Don't wait for frozen pipes to burst. If your pipes are frozen, take measures to thaw them immediately, or call a plumber for assistance.
  • If your pipes burst, first turn off the water. You know now where the main water shut off is, right? Cut off the flow, then attend to the mess and …
  • Properly dry and repair any water damage. This will help prevent any potential problems with mold.
  • Call your insurance professional as soon as possible. He or she will help you understand what's covered by your policy. And familiarize yourself with the claims filing process.
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AUTO INSURANCE MYTH – COLOR DETERMINES THE PRICE OF AUTO INSURANCE

1/21/2020

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  • It doesn’t matter if your car is red, green or purple. What does matter is the type of car you select. Before you buy a new or used car, check into insurance costs. Auto insurance premiums are based on make, model, body type, engine size, the age of the vehicle and the age, driving record and credit history of the driver. Premiums are also based, in part, on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. These include daytime running lights and anti-theft devices. 
  • For years there has been a notion that color plays a significant part in calculating insurance premium costs, many people believing that red cars cost more to insure because they are linked to aggressive driving or speeding. The fact is, insurers have no interest in the color of a car, but they are interested in knowing if you have had any previous car accidents, the number of miles you drive annually and where you live. 
  • When purchasing car insurance, it’s important to understand the factors that affect your car insurance premium rates and coverage. But how do you differentiate between truth and fiction? A good place to start is by dispelling some common myths about auto insurance during a visit to our office.
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Does your Homeowner Insurance cover your Home Business?

1/20/2020

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​It’s likely that you depend on your homeowner or residential insurance policy to handle losses connected to your hobby or activities. A homeowner (HO) policy usually includes a definition of “business.” A given policy may use a definition so broad that nearly any activity qualifies as a business. In such instances, a hobbyist or enthusiast should consider whether business insurance is necessary.

Let’s say you love photography and you take pictures at weddings and other events to finance this passion. While you consider this to be a hobby, your insurer may define your activities as a business. If your camera equipment is stolen or damaged, there may be as little as $250 protection under your HO policy. HO coverage for business property differs depending on whether it is located at or away from your residence.

Imagine the photography situation again. This time, you’re at a wedding job and have just set-up a perfect shot of the bridal party. As you are snapping a few shots, a large boom stand with hot lighting equipment tips over, injuring the maid of honor and the flower girl. A homeowner policy may exclude coverage if the injured women sue you since the injury is part of a business activity.

There are numerous types of sales and service jobs. These include cosmetics, clothing, kitchen supplies, home decorator items, computer repair, web site design, photography, music lessons, auto repair and many contractors. Each job involves some type of business property that is excluded or severely limited under the homeowner policy. Therefore, each situation may need to be covered by business insurance.

Although independent consultants are in business, too often they think their HO policy will provide coverage because they don't have special equipment or leave their home office to run their business. Office furnishings such as laptops, iPads, desks, chairs and file cabinets are subject to HO policy limitations. Without adjustments to the homeowner policy there may be little or no coverage for property used in a business.
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The legal form of the business may create a need for business insurance. If a limited liability company, corporation or partnership is formed, the related activity is a business and needs business coverage. Also, most HO policies will not provide coverage for employees or for any professional liability.
What can you do? First, determine if your activities qualify as a business. Then talk to one of our insurance professionals to determine what coverage is provided by the policies you currently have and what options are available to fill-in any gaps in protection.
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How to insure Garage Operations

1/17/2020

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The Auto Dealers Coverage Form contains premises liability, products liability, automobile liability and automobile physical damage coverage. Operations that should be protected by this policy include the following:
  • franchise and non-franchise auto dealers
  • truck dealers
  • motorcycle dealers
  • snowmobile and recreational vehicle dealers
  • new and/or used trailer dealers
  • vehicle repair shops
  • service stations
  • storage garages and
  • public parking places
The Auto Dealers Coverage Form is flexible, having the ability to cover a wide variety of automobile loss exposures. Besides covering vehicles that are owned by the covered business, it may also cover vehicles that are non-owned (rented or borrowed), trucks and other non-private passenger vehicles, trailers and mobile equipment. Coverage may even apply to vehicles that are privately owned by employees, but were involved in a work-related loss; say an employee who has a collision in his personal car while returning from picking up lunch for his boss and co-workers.

An Auto Dealers policy may also be written to customize how coverage applies to different types of vehicles. For instance, Joe's Towing Service has a fleet of four tow trucks, as well as a sedan used by the owner. The towing service also does repairs and regularly has customer vehicles on their premises. Rather than having both liability and physical damage on all cars the services either owns or handles, Joe selects the following:
  • Liability and Physical Damage - for his two newer tow trucks and his sedan.
  • Liability only - for his two, older tow trucks
  • Physical Damage Liability only - for vehicles belonging to customers
Like other types of policies, an Auto Dealers coverage form also provides legal defense coverage. In other words, the policy handles the costs associated with defending the policy owner against claims and lawsuits. This protection does not affect the separate limits of insurance that are selected for the liability coverages.
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"Not So Risky" Business Insurance Tips

1/16/2020

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Entrepreneurs and business owners everywhere have questions about business insurance—and to answer queries about everything from business interruption to product liability and beyond, the Insurance Information Institute (I.I.I.) has released (Not So Risky) Business, the third installment of the popular I’s on Insurance series created to make insurance coverage simple to understand for consumers and business owners.

So much more goes into business insurance than getting the lowest business insurance quotes. It means understanding your business’s unique needs and the potential risks that can threaten its success, the video explains. For example, 25 percent of all businesses do not reopen after a disaster, the I.I.I. noted. Fortunately, business income insurance covers the revenue you would have earned, based on your financial records, had the disaster not occurred.
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When Will Home Insurance Companies Drop You?

1/14/2020

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​Assuming payments are made on time, it does happen from time to time that a home insurance provider chooses to drop one of their clients. This isn’t common, but is possible. Luckily, it's not that hard to stay in good standing with your insurer. Here are the most common causes for being dropped by a provider:
Too Many Claims
The average homeowner only files a claim around once a decade. That doesn't mean that filing twice in ten years will see you being dropped, but if you're filing on an annual basis, that's going to raise some red flags with your provider. Insurance is best reserved for severe damages that cannot easily be handled out of pocket.
Failing to Make Necessary Repairs
Your insurer may ask you to do some critical maintenance in order to remain covered. More times than not, this means the roof. An old roof can lead to cumulative water damage, and many insurers feel that someone who won't replace an old roof is too big of a risk to cover.
Pets
Your new pet is probably not going to have you looking for a new insurer, but some insurers will make exceptions for certain dog breeds and high-risk pets. And insurers will almost certainly drop you if multiple dog-bite liability claims have been filed. It's simply a legal risk that many insurers feel is not worth it.
  • Other reasons may simply be out of your hands. If your insurer goes out of business or decides not to cover your state anymore, you're going to need to go shopping for a new home insurance provider.
  • ​To avoid being dropped, your best course of action is to make sure that your home is in good shape, and to only rely on home insurance for disasters and major expenses. You don't need to file a claim every time a window breaks or a garage door is dented. Insurance isn't really a maintenance fund, it's a "just in case" safety net. So long as that's how you use your policy, you should have no problems staying covered.
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Will Car Insurance Cover Any Wear And Tear Issues?

1/13/2020

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If you're lucky, you might never need to make a major home repair. Cars, on the other hand, will eventually need some parts replaced. Tires don't last forever, and neither do spark plugs, brake pads or timing belts. So, it's worth asking whether auto insurance will cover those replacements when they need to be made.
The answer is no. Car insurance will not cover normal wear and tear. In fact, if you are in an accident because you failed to maintain your car, such as driving on bare brake pads, your auto insurance provider might not approve your claim.​
The reasoning is simple: Car insurance is designed to cover unexpected damages and losses. A smashed windshield, a stolen car, liability costs. Wear and tear damages are losses that we can plan for.
You can generally expect your provider to cover damages and losses relating to the following causes:
  • Theft
  • Vandalism
  • Traffic accidents
  • Damages suffered while parked (a falling tree, for instance)
You can generally not expect your insurer to cover damages and losses such as the following:
  • Bald tires
  • Worn brake pads
  • Exterior rust
  • Ripped or worn out upholstery
  • Electrical problems
  • Worn down axles
It is a general rule of thumb in insurance that you cannot expect the anticipated to be covered. Insurance will not cover the inevitable, only the possible. Even if damages or losses are common, there is a good chance that you can find a provider. If damages or losses are unavoidable, there's simply no motive for insurers to cover the risk.​
Further, insurers do expect you to take good care of whatever it is that you are insuring. A homeowner who discovers a leaky pipe and simply leaves it to drip will likely see their claim rejected when they file for the damages they've suffered as a result. The same goes for your car. If you want to make sure that you are covered in the event of an accident, make sure that anything that needs to be replaced is replaced. Also remember to take the vehicle in for regular maintenance.
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