Entries Tagged 'Personal Insurance' ↓

Have you moved to a new home, but the old one is still for sale? Is your rental property between tenants? Have you left temporarily during a remodel? And, most importantly, do you know that insurance requirements are different for vacant properties?

Although many property owners don’t realize there is a difference, it’s a fact that if your property is vacant for whatever reason, you need a special insurance policy. Your options usually depend on the amount of time the property will be vacant and the type of coverage you want.

Common vacancy policies include three, six and 12-month terms. They can cover “named perils,” meaning only the types of losses listed (lightning, hail, fire) will be covered, or they can be more comprehensive. If the vacancy is short, you may only need an endorsement to cover this time period. Note that during this time your regular policy won’t apply. Typical options include:

• Premises liability, in case someone is injured on your property
• Personal property, if you are leaving furniture or appliances in the home
• Vandalism, to cover damage or defacement
• Burglary, for coverage of doors or windows broken during unauthorized entry and the theft of your personal items
• Builder’s risk, to cover improvements and repairs during renovations

If you know you will soon have a vacant property, consult with my office immediately. Your provider will set up a policy to protect your home. After all, no one wants to leave their “home alone.”

Increasing numbers of businesses are striving to reduce the size of their carbon footprint. While these efforts to go green save valuable resources in the long run, their initial setup can be costly.

For example, under traditional commercial insurance coverage, replacing or repairing old equipment with more environmentally friendly parts is not fully covered. Reimbursement is based on the value of the original equipment, which is typically lower than that of its green counterparts.

However, in response to these growing green needs, many insurers are now offering green endorsements that businesses can add to commercial property policies.

Green materials and equipment endorsements cover the higher cost of environmentally certified materials and equipment. It includes coverage for the difference in cost if your previous equipment was not green certified. If you must rebuild, the policy can also allow you to elevate your building to green certification status.

Green construction endorsements cover all miscellaneous costs involved with green construction, including design, engineering, certification fees, and recycling. Additionally, some insurers offer discounts for hybrid and electric cars if used for commercial purposes.

Some aspects of going green may require business owners to increase their coverages. For example, because green construction typically takes longer than traditional construction, business owners may want to extend their business interruption coverage.

They may also wish to increase overall property coverage if new environmental features are added.

Exercise more. Eat better. Learn something new. It must be New Year’s resolution time again. As 2016 approaches, it’s a good opportunity to make New Year’s insurance resolutions by reviewing your coverage and deciding if changes are needed. As you examine your policies, consider making these resolutions for next year:

Update home inventory: Is your home inventory up to date? What have you sold, donated, or pitched in the past year? What devices will the family splurge on this Christmas? An up-to-date home inventory is essential to make the most of your coverage in case of theft or disaster. Include all items and their cost. Store this list off-site or in the cloud.

Assess car policies: Does your vehicle coverage accurately reflect your car’s value? As autos age, you may want to reduce coverage. Who drives the car? Are primary and occasional drivers designated properly?

Check for savings: Are you currently taking advantage of every savings opportunity? A call to my office will be worthwhile. Check for new programs, multiline discounts, and changes in policy requirements; they may save you a few bucks in the coming year.

Life changes: Be sure to discuss with my office any life changes, such as marriage, divorce, death, or births as well as home purchases, renovations, job changes, and health concerns. These can impact your insurance needs and may affect everything from your homeowner and life insurance policies to health insurance. You may even need commercial insurance if you’re starting your own company in the New Year.

Wherever you live, winter brings the possibilities of storms. In the northern part of the country, whether we welcome him or not, Jack Frost will find his way to our doorsteps, along with ice storms and snow drifts.

In other areas, hurricanes, tornados, and all manner of other nasty weather will cause floods and wind damage. It’s winter again. But it’s also time for seasonal insurance savings.

Two methods of savings are often overlooked by car owners:

Seasonal rides

If you own a car that you don’t intend to expose to the elements this winter, you can save money by reducing your coverage during winter months. Whether it’s a collector car or a sporty coupe with no business on the road in a gale or snowstorm, if it’s not leaving your garage all winter, you can benefit from these savings.

Of course, even in the garage your car remains at risk; you will want it protected against theft or a storm that collapses your garage. But you also don’t want to pay for unnecessary insurance. The solution: remove your liability and collision coverage and maintain your comprehensive coverage. This should reduce your rates and still provide the protection you continue to need.

Home from college

Your student is coming home for the holidays! Providing he or she is studying at a college that is more than 100 miles away, you may already have saved on premiums by removing him or her from your policy.

However, if he or she is now returning, you may want to check with your insurance agent.

If your student’s annual mileage is less than 25% of your car’s total annual mileage, you may be able to switch him or her to an occasional driver; your student remains on your policy but not as a primary driver, and you can save on your car insurance premiums.

Increasing numbers of homeowners are considering turning a second home into an investment property by renting it out. If you’re thinking about this alternative, depending on the type of rental you’re considering, you may need landlord insurance.

If you are planning to rent all or part of your primary residence for a short time (a week or less), you may not need a landlord policy. Often your homeowners policy will cover this situation. However, check with your insurance advisor to see if any additional endorsements are required.

If you want to start a bed & breakfast in your primary residence, you are then considered a business and will need a business insurance policy.

But when you decide to make a second home into an investment property to rent to tenants over the long term, you have become a landlord, and you will need landlord insurance. The policy may be customized to suit your needs and will provide the additional protection you will need as a landlord.

Options typically include:

• Standard structure protection. The home, any other structures on the property, and any owned items on the premises, such as appliances, are covered.
• Liability. As a landlord, you will need greater liability coverage to protect against claims for injuries on the property.
• Fair rental value coverage. This option reimburses you in the event of a disaster where tenants can no longer live in the home and aren’t paying rent. Your loss of rental income is covered while the home is being repaired or rebuilt.
• Some companies offer extra coverage options such as lock replacement and emergency repair service.

Because landlord policies provide the higher coverage you need, they typically cost about 25% more than a standard homeowners policy. However, discounts such as multipolicy and new/renovated home discounts may be available. Contact my office for the option that’s best for you.

Have stuff you need to store? You’re not alone. According to the Self Storage Association, 10% of American households currently rent some type of storage unit. And many of them overlook a very important factor in storing their possessions. Insurance. Here are some important questions to ask:

Does the storage facility offer coverage?

Most do offer some type of coverage, but ask what damages will be covered (such as floods or fire.) Also be sure to check limits and the type of reimbursement offered. (Is it actual cash value or replacement cost?)

Does my homeowners policy cover my items in storage? Check with your insurance professional on the terms of your policy. Some will cover items stored off your premises, but ensure you check the limits. Damage from mold, mildew, and animals often isn’t covered.

Will I be storing particularly valuable items? If so, you may need to add a floater to your policy to cover items beyond the limits of your coverage. You may also want to consider specialized storage for them, such as a safety deposit box.

Does the facility include the following?

• Proper security: Fencing, 24-hour video surveillance, fire and flood procedures.
• Climate control: Protection against extreme temperatures, dampness, and precipitation.
• Thorough maintenance: Well-kept facility and grounds and a pest extermination contract.
• Insurance: Your current policy may provide the protection you need, or you can purchase additional coverage from the storage facility.

It’s hurricane season, but the next tropical storm is not the only water threat to your business. Flooding is frequently caused by snowmelt, rainstorms, inadequate drainage systems, and broken levees or dams. In fact, FEMA’s National Flood Insurance Program (NFIP) works on the assumption that everyone lives in a flood zone. The only question is whether it’s a low-, moderate-, or high-risk area. In fact, you’re not protected even if your building is built on a hill; although your company may be located in a low-risk area such as this, you still need flood insurance.

Depending on your mortgage program, many lenders require flood insurance. However, even if they don’t, insurance is still recommended and advisable to protect your business; roughly 20% of NFIP claims and 33% of disaster assistance for flooding involve areas considered at low or moderate risk.

So for the most part, you do need flood insurance. The good news is that low-risk-area businesses will pay less for coverage.

Flood insurance coverage is purchased through an insurance agent, and most insurance companies can obtain coverage through the NFIP, a federal program that offers set rates. The rate for your particular business will depend on factors such as the date of construction, building design, amount of coverage requested, and the area’s risk level.

Twenty-five percent of businesses that close after a flood event never reopen. Be one of the 75% that do. And don’t delay. A 30-day waiting period from the day of purchase is standard.

Your child is leaving the nest. The car is packed to the hilt and pointed toward campus. Among your concerns about tuition, courses, and when you will see your child next, have you considered the contents of your car? Will your student’s belongings be insured in his or her dorm?

While the contents of a dorm room often include secondhand furniture and repurposed thrift store items, among these there will probably be a few pricey electronic devices, gadgets, and gear. Chances are you (and your departing student) have been too busy to consider the importance of insuring these possessions. Homeowners or renters insurance policies usually cover your student’s belongings in the dorm, but here are a few things you may not have thought of:

• Check your policy. Confirm your student’s possessions are covered as part of your homeowners policy.
• Check your limits. Policies sometimes limit dorm coverage to 10% of the total, meaning a policy providing $150,000 coverage for possessions at your residence may only provide dorm room coverage up to $15,000. That may seem like a lot, but consider the replacement cost.
• Take inventory. Before it’s all crammed into the dorm room, make a detailed list, including values. Create a file including receipts for electronics and other high-end items in case you have to make a claim.
• Consider options and alternatives. While your homeowners policy may cover your student’s laptop from theft, it won’t replace it if it’s shorted out by a spilled Frappuccino. For individual items, consider riders or special warranties that protect against such accidental damage. And, of course, items such as heirlooms and expensive jewelry are better left at home.

When your child leaves home for college, the experience can be wrenching, exciting, busy, and frustrating. Make sure it’s not a bad one by insuring your student’s personal possessions before you start packing the car.

Ever wonder why others pay so much less for insurance than you do? It could be they’ve gone green. By making environmentally focused choices, you can save money on car insurance and feel good about it too. Here are some suggestions for green savings:

Car sharing programs are becoming increasingly popular. Those who don’t want the responsibility of being a car owner but occasionally need to drive can participate in a car-share program and save up to 50% with nonowners insurance.

Buying hybrid cars means discounts. Many insurers provide instant discounts for eco-vehicles, as they score high on safety tests. Usually compact and lightweight, they cause less damage in accidents, so insurers pay out less in claims-all meaning lowered risks to insurers and cheaper premiums for policyholders. Statistics also indicate the majority of eco-car owners are safe drivers, and hybrids are statistically less likely to be stolen.

Cut back on your driving. Try taking public transit or walking or biking to work. This allows you to change your vehicle’s use on your policy to “pleasure.” Pleasure-rated vehicles reduce claims risks, since they’re not on the road as much, meaning lower rates. And that alone can mean a discount of 10%-15%.

Green-minded drivers who drive less also make great candidates for pay-as-you-drive insurance (PAYD) policies. Also called usage-based insurance, this can reduce premiums. Almost two-thirds of hybrid owners, for example, drive 40 miles or less daily; PAYD may make sense for them.