Auto, Home, Vacation Home, or Personal belongings / Rental insurance.
Auto Insurance
What it Protects against:
The financial consequences of damage to a vehicle or property, theft, vandalism, injury to the insured or other people, personal liability, and/or accidents with uninsured or underinsured drivers.
How it Works:
Policies are carefully underwritten by insurers, who take into account your driving record, address, age and even your credit history. The kind of vehicle also matters as some vehicles are stolen more often than others, and some have better safety features. Among the coverage you can purchase are collision, comprehensive, which covers physical damage from fire, theft, vandalism or other non-collision damage, and liability, in case you are legally liable for bodily injury or property damage caused by an automobile.
Who needs it:
Only New Hampshire, Tennessee and Wisconsin do not require some kind of liability protection, but they have financial-responsibility laws. These laws require drivers to have sufficient assets to pay claims if they cause an accident. All other states require a variety of coverage. Insured's have wide latitude in how much and what kind of coverage to buy. For example, high annual deductible can greatly reduce premiums. Old vehicles may no longer warrant collision or comprehensive coverage. Lenders may require owners to insure for collision and comprehensive.
Who may not need it:
Even if you live in the few places that do not require auto insurance, you owe it to others, if not yourself, to have it. Before you start driving, consider annual or monthly premiums. Policies are generally renewable annually or semi-annually. Insurers charge interest on premiums paid less frequently than annually.
Recreational Vehicle/ Motorcycle Insurance
What it Protects against:
The same financial consequences as those covered in auto insurance policies: damage to a vehicle or property, theft, vandalism, injury to the insured or other people, personal liability, and/or accidents with uninsured or underinsured drivers.
How it Works:
Recreational vehicle policies cover more than what car insurance covers, primarily because owners keep more personal item, such as outdoor equipment, in large recreational vehicles. Motor homes may have cooking facilities, refrigeration and bathrooms. Motorcycles may be covered for custom parts and equipment. Most states require you carry liability insurance. Other kinds of coverage are optional.
Who needs it?
Only New Hampshire, Tennessee and Wisconsin do not require some kind of liability protection, but they have financial-responsibility laws. These laws require drivers to have sufficient assets to pay claims if they cause an accident. All other states require various coverage's. Insured's have wide latitude in how much and what kind of coverage to buy. Old vehicles may not warrant collision or comprehensive coverage. Affluent drivers may want to maximize liability coverage. Lenders may require collision and comprehensive insurance.
Who may not need it?
Even if you live in the few places that do not require auto insurance, you owe it to others, if not yourself, to have it. In northern states, insurers may offer special motorcycle policies that do not provide coverage during the winter months except for comprehensive.
When to buy it:
Before you start driving.
How you pay for it:
Annual or monthly premiums. Policies are generally renewable annually or semi-annually. Insurers charge interest on premiums paid less frequently than annually.
Homeowners Insurance
What it protects against:
Financial consequences of perils such as windstorms, fire and theft on a house, garage and other structures on the property. It does not cover the effects of floods or earthquakes. Homeowners insurance protects personal property inside the house and loss of personal property anywhere in the world. It covers the expenses of loss of use – the cost of living elsewhere while the property is restored. Liability coverage protects against injuries sustained by guests, and it covers damage you, your family members, and pets cause to other properties.
How it Works:
Insurers underwrite homeowners insurance through agents who visit a property and by responses from the homeowners, and increasingly with software that helps measure the value of buildings and quantify risks in an area. The amounts insurers will pay when a house is destroyed depends on the level of coverage the insured has chosen, from less than the cost of rebuilding to actual cost.
Who needs it?
Property owners, particularly those whose lenders require homeowners insurance. Government does not require homes be insured. Insurers suggest you buy enough insurance to rebuild your house at current construction costs, and that you inventory personal property to make sure you have proper coverage. Every mortgage company requires proof of homeowners insurance to the loan.
Who may not need it?
Do you really want to consider not insuring the building you call home?
When to buy it:
When you buy your home. You should periodically review coverage. Sometime, you can get discounts for items such as a burglar alarm or a new heating system. Affluent homeowners might consider an umbrella policy to add liability coverage beyond what their homeowners and auto policies provide.
How you pay for it:
Annual premiums.
Renters Insurance/ Personal Belongings
What it Protects against:
The financial consequences of a loss of personal property due to a broad range of perils. These are generally the same perils covered by homeowners policies. They do not include flood, earthquake, war, nuclear accident and other natural disasters excluded by policy language. Renters policies also provide liability coverage similar to that in homeowners policies, and they cover the extra expenses of having to live elsewhere if a dwelling becomes uninhabitable. Different kinds of policies cover mobile homes, condominiums and co-ops.
How it Works:
Landlords are responsible for insuring their buildings. Renters insurance does not cover the actual building, but it does cover changes made to the inside structure, such as carpeting, kitchen appliances and built-in bookshelves. Like homeowners, renters can choose whether to insure up to the full replacement cost.
Who needs it? :
Tenants who want to protect the value of their possessions or insure against liability or the extra costs of living elsewhere if their rental unit is damaged or destroyed.
Who may not need it?
While some renters may not need this insurance in the technical sense of the word, most would probably want to have it.
When to buy it:
When you begin renting.
How you pay for it:
Annual premiums.
Insuring Business Property:
Business Property Protection
What it Protects against: Let's say the worst happens: a fire breaks out and you lose your inventory; a hurricane sends a tree smashing down onto your office; your business is burglarized. Your ability to recover from any one of these disasters is heavily dependent on your property insurance. Business owners get comprehensive protection for buildings, business personal property, loss of income, and business liability. You can also purchase protection for business personal property that is located off-site.
How it Works: Property insurance protects your business against physical damage to, or loss of, your assets. Assets, broadly defined, include the area in which your business operates and the property housed there. In the case of catastrophes like fire, explosion, theft, or vandalism, property insurance helps cover your costs - whether it's to repair damaged property or replace what you've lost.
Who needs it? : Professionals and owners of office buildings, self-employed contractors, home business owners, farmers and ranchers, community churches, and commercial office buildings.
Who may not need it: Businesses that qualify for a Business Owner's Policy (BOP), which lumps property insurance together with liability insurance.
When to buy it: When you have a business or business property to protect.
How you pay for it: The primary factors in setting property insurance premiums include the type of building structure, the presence or absence of protective safety measures, and the proximity of your property to other high-risk areas. This basic rate is then further adjusted at the discretion of the insurer, who credits or debits based on claims history or specific loss-control measures. In states where rates cannot be adjusted, dividends are commonly used as a way to reduce premiums. Take note, however, that dividends are not guaranteed and should not be counted upon until you have the check in your hand.
Business Auto Insurance
What it Protects against: Liability, Medical Payments Coverage, Personal Injury Protection, Comprehensive Collision, Emergency Road Service, Loss of Earnings, Death, Dismemberment & Loss of Sight, Uninsured/Underinsured Motorist, and Car Rental and Travel Expenses.
How it Works: Commercial auto insurance works much like personal auto insurance, only it protects against work-related incidents.
Who needs it: When you buy a car, it's second nature to insure it by purchasing a personal auto insurance policy. But is this personal coverage sufficient if you drive around for business purposes? Even if your company doesn't own a fleet of delivery vehicles, that doesn't mean you can pass on commercial auto insurance.
How you pay for it: Like any auto insurance, the cost of a business auto policy will depend on how much coverage you decide to get. Liability will be the most expensive part of the policy, followed by the location of your business (state as well as neighborhood), number of employees driving, whether you are insuring a company car or employees' cars, and the driving records of your employees. Once you have a policy in place, the number of claims you file could raise your premium.
Special Business Liability Insurance
What it Protects against: Essentially, liability insurance is there to clean up after your business's mistakes, providing coverage for claims related to negligent business activities (injury related to the use of your product, for example) or the failure to use reasonable care. The insurer typically pays damages and legal defense fees as well as case-settlement charges.
How it Works: Most companies obtain basic liability coverage through a commercial general liability (CGL) form. The CGL covers four types of injuries: bodily injury that results in actual physical damage or loss, property damage or loss, personal injury, and advertising injury. Most companies will need to supplement their CGL with at least two other types of coverage: automobile insurance (aka fleet insurance) and workers' compensation. Also, if your company risks facing particular types of claims - if, for example, you sell or serve alcohol, pose an environmental threat, or produce goods that could be subject to product recall - you may have to obtain special coverage.
Who needs it? : Any business that wants coverage against possible service or product liability problems.
How you pay for it: To determine costs, a business decides whether a claim will be covered by a policy that was in effect at the time the incident occurred, or at the time the claim was filed.
Worker's Compensation
What it protects against: As a business owner, you may need workers' compensation insurance to protect employees who are injured on the job and to comply with workers' compensation laws.
How it Works: Workers' comp offers many benefits to employees injured on the job. While the specifics vary from state to state, most policies provide employees with Compensation for a percentage of lost wages, Reimbursement of medical expenses, Recovery and rehabilitation services, and Death benefits for families
Who needs it? : Every business- it's required by law.
How you pay for it: The most common way to purchase workers' compensation coverage is through your insurance company. It will review your business and create a policy based on your industry and prior claims history.
If you are interested in discussing how I can help, please call us at
4456132 or send us an email.
