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What Does Watercraft Insurance Cover?

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The U.S. Coast Guard’s 2020 Recreational Boating Statistics Report found that the total number of accidents increased by 26.3 percent, costing about $62.7 million dollars in property damage.

If you own a watercraft of any kind, you know accidents can happen. The question is: are you covered if they do?

Watercraft insurance is what can guarantee that you will get the help you need if an accident occurs. Let us take a closer look at what boat insurance is and what it covers.

What Is Watercraft Insurance?

Watercraft insurance is an umbrella term, under which you can find three different kinds of insurance: boat insurance, yacht insurance, and personal watercraft insurance.

Watercraft insurance covers damage to vessels that have a motor with a horsepower of at least 25 miles per hour.

Some policies might include watercraft liability coverage, which covers bodily injuries to people other than the boat’s owner and family. There are some insurance options that require you to purchase this liability coverage in addition to the regular boat insurance.

The size of your boat will dictate the coverage you purchase. Boat insurance is for vessels that are under 197 feet, while anything that is at least 30 feet long is a yacht. Personal watercraft insurance is for vehicles such as Jet Skis, Yamaha Wave-Runners, and other surface-skimming vehicles.

What Does Boat Insurance Cover?

If you have a vessel under 197 feet, you need boat insurance. There are two basic sections to the typical yacht or boat insurance policy: physical damage and liability.

Physical Damage

You can expect the physical damage part of the insurance to pay to repair the damage the accident caused on the boat. The kind of policy you want is one that provides coverage for all risks so that even if the exact cause of the damage is not listed, you will still have coverage.

Some common causes of damage that policies cover include:

  • Weather concerns like wind, lightning, rain, hail, and wave action
  • Damage or loss from vandalism or theft
  • Fire
  • Collisions with submerged objects, floating objects, docks, or other boats

On top of that, you want to consider policies that protect your boat while on land, as well. There are also personal property and towing coverage, which help cover any personal property damaged or lost in the accident. Towing coverage includes emergency assistance like the delivery of parts, oil, or fuel.

Liability

This is an equally important part of the boat insurance policy you choose. If you cause an accident that injures someone or that damages property, you need to have liability coverage.

Here is what it can cover:

  • Towing of vessel
  • Cleaning and containment of oil spills or other contaminants
  • Crew coverage

Keep in mind that if you want to borrow someone else’s boat, you should verify that your liability coverage extends to that other boat.

What Does Yacht Insurance Cover?

There are many similarities between boat and yacht insurance, but insurance for yachts is usually more specialized.

Yacht insurance does not cover standard wear and tear, natural deterioration, damage by marine life, denting, marring, scratching, osmosis, manufacturer’s defects, electrolysis, defects in design, ice damage, or blistering.

The main parts of yacht insurance cover: hull insurance, and protection and indemnity (P&I).

Hull Insurance

The first thing you need to know about this is that hull coverage will be based on agreed value or AV. This is an amount that you and the insurer agree on when you create the policy and it usually reflects the cost of the yacht.

Hull insurance and protection is an all-risk, direct damage coverage that will pay out in full if there is a total loss.

There are also replacement and partial coverage.

Protection and Indemnity

Protection and indemnity is the broadest liability option. Longshore and harbor workers’ coverage is included, as well as Jones Act coverage of the crew.

Protection and indemnity will also pay for defense in admiralty court and any judgments against you.

What Does Personal Watercraft Insurance Cover?

If you have a recreational vessel that is a surface-skimmer, like a Jet Ski, then you need this kind of insurance. They do not tend to have coverage under homeowners insurance, and even if they are, the coverage it offers is not enough.

You can expect personal watercraft insurance to cover the owner of the vehicle as well as anyone they allow to use it for:

  • Bodily harm to another person
  • Bodily injury caused by an uninsured watercraft
  • Property damage to a watercraft or a dock
  • Theft
  • Towing after an accident
  • Legal costs if you are sued for causing an accident

There will be deductibles and liability limits and these can vary from company to company. Be sure to check before deciding on the insurance you want.

If you want to include more coverage, you can find add-ons for trailers and accessories. If you own more than one personal watercraft, you may also want to see if you can bundle your insurances.

Do You Need Watercraft Insurance?

Most states do not require watercraft insurance, but keep in mind that if you want to get a boat loan, you do need it. Many marinas also require it in their rental agreements.

The risk of injury and property damage while on the water is high, making insurance something vital. Even if you are not at fault in a collision or other accident, the legal fees you will have to pay to defend yourself can be much higher than insurance payments.

Give Yourself Peace of Mind

Get watercraft insurance and allow yourself to enjoy your time out on the water knowing you will have coverage if an accident occurs.

Contact us right now to speak with one of our insurance advisors.

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7 Things to Consider When Buying Homeowners Insurance

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When it comes to feeling extreme excitement and tremendous fear at the same time, nothing gets as close to it as buying a new home. This is one massive investment, and well worth taking the time to get the right protection. Don’t buy a home without homeowners insurance.

Approximately 93% of homeowners in the U.S. have some type of home insurance policy. While it is not required by the government, mortgage loans will make it mandatory. One in 20 insured homes files a claim annually, and one in 40 will make a claim for wind and hail damage.

Don’t gamble with your home insurance. We will tell you what you need to consider when you purchase insurance. Now, let’s get to it.

What is Homeowners Insurance?

When you purchase a home, bad things can happen no matter what precautions you take. If you experience damage or a loss, or if you get sued because of an injury from your property, homeowner’s insurance protects you so that you do not incur financial hardship.

It is good to buy insurance because you want to safeguard your home and your finances. A standard homeowners insurance policy will include:

  • Protection for your dwelling
  • Protection for belongings
  • Liability coverage
  • Additional cost-of-living expenses, should your home be uninhabitable from a loss

Such policies do not cover wear and tear, earthquakes, floods, and high-value electronics or jewelry. You would need to buy insurance that covers these things.

Now that you have a quick background, let’s discuss the factors you must consider.

1. Decide What You Need

Here is where to start. You must know what you want to be covered. Such as:

  • Replacement cost of the home
  • The total value of belongings
  • The total value of your assets
  • Coverage for additional structures on the property like a shed or garage

For high-risk areas, you would need to add on earthquake and flood insurance. Mark that down as a “must have” if this affects you.

2. Calculate the Amount of Coverage Needed

First, you must find the replacement cost of the home. The Insurance Information Institute says that the two biggest factors are the size of the home and if it is new construction. You will also want to include interior and exterior construction materials.

Plus, include special features like a pool or garage to help you determine the cost of replacing your dwelling. You can have your insurer help you with an estimate or you can hire a third party to help you calculate it.

Second, perform a home inventory, including a list of your possessions. Once you record your inventory, decide if you want to ensure your personal property for a replacement cost coverage, or if you would rather have its actual value.

Third, if you need to rebuild your home and make an alternative living arrangement, decide how much you will need for additional living expenses.

Next, there is liability insurance. Most homeowner insurance policies have a minimum of $100,000. The Insurance Information Institute recommends you carry $300,000 to $500,000 in liability coverage.

3. Have Personal Details and Home Information Handy

Now, it’s time for obtaining quotes.

Gathering insurance quotes can be an enormous task. You can make it easier by keeping your personal and home information close by. It will expedite the process.

For your personal information, have the following ready to go:

  • Name
  • Date of birth
  • Marital status
  • Contact information
  • For information on your home, have these items ready to share:
  • The address
  • How long you are living there
  • The type of home
  • If it is your primary residence
  • Is there a mortgage on the property?
  • The year they built it
  • Square footage
  • Number of bedrooms
  • Number of bathrooms
  • Number of stories
  • The material they made your building of (exterior wall and roof)
  • Heating or cooling systems
  • Type of foundation

Plus, it is good to tell a provider how far the home is located from a fire hydrant and fire station, besides any other home safety systems, when you buy insurance.

4. Compare Quotes

Many professionals highly recommend gathering three quotes at the least before deciding on the best insurance for you. Also, you want to ask for recommendations from relatives and friends. Your state insurance department can give you a provider’s complaint ratio if you call them.

Beyond the pricing, you want to compare what the policies will cover and decide on which is best for you. Check the deductibles and coverage amounts. They should be equal in all the quotes.

5. Check Discounts

You may qualify for a discount, so be sure to check that too. Here are some popular discounts:

  • Multi-policy discounts
  • New home buyer discounts
  • Paperless discounts
  • Automatic payment, electronic funds transfer, or pay-in-full
  • Claims-free discount
  • Loyalty discount
  • Home safety discount
  • Smoke-free discount
  • Home improvement discount

There may be a way to reduce your costs. A new home is an enormous expense, so take advantage of potential discounts!

6. Trustworthiness

Get the most value for your money. It helps to research the insurance provider and see that they are trustworthy. The insurance company’s financial strength can help you determine if they will pay a claim when you need it, which is graded by independent agencies.

AM Best is one agency where you can find ratings. They assign insurance providers letter grades which are from A+ to F. Customer satisfaction surveys will offer helpful insight too, like the one from J.D. Power.

7. Ensure Your Details are Correct

By now, you should have identified an insurance provider that you are ready to purchase from.

Before signing off, you will want to do one last check and make sure your details are correct. Also, just look over everything again and make sure that the policy is what you want.

Determine how you will pay your premiums. It may go through the mortgage lender into an escrow account.

At last, you can choose the date for the policy. If switching to a new policy, you will want to inform your mortgage lender.

The Right Homeowners Insurance for You

Your family and your possessions are important. You want the best insurance to protect them. With Gessel & Associates, we can advise you with homeowners insurance.

We have a strong passion for insurance, and we treat our customers like family. Experience the difference. Contact us today.

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What Is High Value Home Insurance?

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What Is High Value Home Insurance?

One in twenty homeowners submits a home insurance claim every year. Every home insurance plan is meant to address a variety of issues that may happen in the home. From fires to natural disasters, home insurance is there to support homeowners in times of crisis.

But, in order to take advantage of home insurance, you need to make sure that you have the right home insurance plan.

Specifically, you need to know whether or not you need high-value home insurance. These kinds of plans can offer more in terms of coverage because they are meant for pricier houses and higher net-worth families.

To learn more about high-value home insurance, keep reading. We have everything you need to know.

High-Value Home Insurance Definition

High-value home insurance is meant for homes that are worth $750,000 or more. If you have a million-dollar home or are close to it, you need to consider investing in high-value home insurance.

This kind of homeowners insurance also covers houses that are heritage homes or have special architecture. If the home has something unique or significant, it could be worth investing in high-value home insurance.

This kind of homeowners insurance can also apply to condos, townhomes, and other expensive properties, assuming that they meet the financial or historical guidelines.

Because it covers more expensive homes, high-value home insurance is comprehensive. This means that it provides more coverage than typical homeowners insurance.

Usually, more expensive properties also come with more expensive items in them. You probably wouldn’t find the same furniture in a $100,000 home that you would find in a $1,000,000 home.

Because of that, high-value home insurance has to consider all of the expensive items that may be in the home itself. To cover these items, you’re going to need an over-arching insurance plan that can take care of all of the items that you own.

How High-Value Home Insurance Works

High-value home insurance works differently than average homeowners insurance.

Standard homeowners insurance does the following:

  • Repairs or rebuilds the structure of your home if it’s damaged
  • Replaces any stolen or destroyed possessions, usually taking depreciation into account
  • Pays for any lawsuits that you may file as a result of bodily harm or property damage
  • Pays for potential living expenses you may have while living away from home during the time or repairs

This level of coverage is great. But, it’s usually not enough for high-value homes.

Standard insurance policies like these have limits. They will help with repairs and other expenses up to a certain amount.

Since more expensive houses require more expensive repairs, it’s likely that any damage done to a high-price home would be too expensive for a standard plan. This is why people with more expensive properties should invest in high-value home insurance.

High-value insurance provides the same coverage, but with higher limits. High-value plans also provide additional coverages for homeowners who have unique needs for their properties.

What High-Value Home Insurance Covers

High-value home insurance is a better choice for individuals who have a more expensive home, because of the higher coverage limits. Specifically, this kind of home insurance places higher limits on the following:

  • Structural repair or replacement
  • Personal possessions
  • Liability coverage
  • Living expenses

First is structural repairs and replacements. Standard coverage is usually limited to the cost of the home.

However, repairs can be more expensive than the price of the house. So, many people end up paying out of pocket if they have a more expensive home that goes beyond the coverage limit.

This is why high-value insurance has extended or guaranteed replacement cost coverage. With guaranteed coverage, the insurance will cover all costs for repairs and replacements even if those costs are higher than the limit. Extended coverage simply raises the limit that homeowners insurance places on costs.

Next is possessions. People with more expensive homes generally have more expensive possessions. With that being the case, higher limits and broader coverages are standard on high-value plans.

Similarly, there are higher liability coverage limits with high-value home insurance. This includes higher limits for personal liability, medical payments, and loss assessments.

Lastly, this kind of insurance will also provide more coverage when it comes to additional living expenses that you may have while you’re waiting on repairs. This allows you to find and afford a place that can match the standard of living you had in your home.

Special Coverage for High-Value Home Insurance

Some high-value insurance policies cover more than others. Commonly included are the following:

  • Vacation and/or second home coverage
  • “All Risks” coverage for personal possessions
  • Deductible waivers for large losses
  • Kidnapping, ransom, and extortion coverage
  • Risk management services

If you feel that you’d like to have these protections, it’s worth investing in a high-value home insurance plan.

These kinds of additional protections are not offered with traditional home insurance plans.

Investing in High-Value Home Insurance

Not everyone needs high-value home insurance. Even if your home is worth a million dollars, you may not need it.

So, you should consider investing in this kind of home insurance if one or more of the following apply:

  • The home that you’re insuring is worth $750,000 or more
  • The home that you’re insuring is a heritage home
  • The home that you’re insuring has unique construction features that are not commonly found today
  • You have expensive appliances, decorations, fixtures, and other design elements that you cannot easily replace
  • You own expensive items (jewelry, rugs, art, etc.) that you keep inside of the home that you’re insuring
  • The home that you’re insuring has unique design features (guest house, living area, swimming pool, landscaping, etc.)

When in doubt, it may be time to evaluate your options on high-value home insurance by contacting our office for a comprehensive review of your current coverage.

We can help you figure out if there’s a better policy out there for you. We can also take additional coverage recommendations into consideration if those apply to you.

Gathering more information about your insurance plan can’t hurt. It’s better to protect yourself now than wish you had in the future if something goes wrong.

The Cost of High-Value Home Insurance

High-value home insurance protects a great deal: your home, your belongings, and much more. The limits are high, and sometimes there are no limits on coverage.

As you’re shopping around for insurance, you should consider the limits of the policies that you’re looking at. Compare these to the worth of your belongings. As these policies have high limits, it’s likely that you’re covered.

If high-value home insurance protects expensive things, the cost of high-value home insurance has to be outrageous, right?

Luckily, this isn’t necessarily the case. Of course, high-value home insurance policies are more expensive than standard policies. If you own a high-end home, you should budget several thousand dollars per year for the annual premiums that come with high-end home insurance. The national average cost is between $3,564 and $5,550.

Lowering Home Insurance Costs for High-Value Home Insurance

The first price tag that you see doesn’t have to be the one that you go with. Just like all other insurance plans, you should consider multiple options.

This means that you need to shop around with insurers in your state. And that’s where we come in. At Gessel & Associates, we work with numerous highly rated insurance companies, and we are experts in getting you the best possible coverages for the best possible price.

A policy from a small company may be more expensive, but it may also be able to offer more coverage in return. You’ve got to find the sweet spot that gives you the coverage that you want at a reasonable price.

We also recommend that you consider going with a high deductible if you don’t think you’ll have to use your home insurance too frequently.

A policy with a high deductible will lower the amount of money that you’re paying to the insurance company annually. And, if a problem does come up, it’s likely that paying the deductible is still going to save you money overall since you’ve been paying less upfront.

You may also want to think about bundling your home and your auto insurance, as most high-value home insurance carriers will require you to insure your autos as well. It’s likely that you can save 5% to 15% on your premium.

Lastly, you should be looking for all available discounts. You may be able to get a discount if you’re a retiree, a veteran, a student, a healthcare worker, or belong to some other group or organization. Our agents are trained to inquire about and apply all available discounts.

Get High-Value Home Insurance

If you’ve read this far, it’s likely that you’re thinking about high-value homeowners insurance. You may have an expensive house, expensive belongings, or something else.

Whatever it is, we can help you protect it. Our team here at Gessel & Associates can help you find the insurance policy that’s right for you. Check out our insurance solutions today and find out what the best choice for you is. We can’t wait to get started!

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Your Guide to Understanding Business Insurance

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What happens when your business is faced with a lawsuit that comes out of nowhere? The key to protecting your business is to always have a plan in place should the unthinkable happen. This will be your business insurance.

There are plenty of business insurance plans out there, and your business will need a variety of them to remain protected. This guide will tell you all you need to know about insurance coverage for your business.

What Is Business Insurance?

Business insurance refers to a contract between your business and the insurance company. This agreement ensures that you are financially protected when unfortunate circumstances occur. The exact level of coverage will depend on the type of insurance you need and the terms of your policy.

Why Do You Need Business Insurance?

Business insurance can sometimes seem like an unnecessary expense. It may not be used very often and adds overhead expense, but the following reasons will show you why the costs are necessary.

They Protect Your Finances

It’s impossible for your business to be fully aware of the financial hit that can be caused by an unexpected event. How can you anticipate a slip and fall incident, or its’ costs, for example?

A lawsuit can come out of nowhere, and you may not have the financial wherewithal to deal with legal defense and investigative costs. If found liable, you may also have to bear the cost of compensating the affected party. These costs can add up and become quite damaging to your company.

A business can only function when it has consistent and full access to its’ financial resources. This enables the business entity to grow and pay the day-to-day operating expenses. If a loss were to occur without insurance coverage, you may end up having to shut your doors.

Proper insurance coverage prevents this from happening. The insurance company will bear most, if not all of the costs arising from these unfortunate events. This protection allows your company to continue operating and growing not if, but when, an unforeseen event occurs.

Protect Your Reputation

Lawsuits damage your company’s credibility, no matter what caused the legal dispute in the first place. If you don’t have insurance carrier legal defense to investigate, you will have to bear the brunt of a tarnished reputation with no way to recover from it. Even for those that might consider self insuring, do you really want to foot the bill for something out of your control, or would you prefer to mitigate the loss with proper coverage? With proper coverage, your clients’ interests will be protected as well.

With an insurance plan, you can rest well knowing that if legal claims arise, you will be defended in court and reach a suitable settlement. In cases of data breaches and lost client data, the insurance company can also provide the necessary financial compensation to provide data recovery help along with providing monitoring services for those affected.

Types of Business Insurance

There are plenty of business insurance plans out there that provide coverage for different aspects of business risk. These are some of the plans you should consider getting when running a business.

Public Liability Insurance

What happens if a customer visits your premises, slips on a wet area, and gets injured? Worst-case scenario, they can file a lawsuit against you.

Public liability insurance financially protects against property damage or physical injury caused by your products or services. This coverage extends to your employees as well.

This insurance policy will not just cover the financial compensation for damaged property or medical bills. It will also provide financial protection for your legal defense costs.

Professional Indemnity Insurance

Mistakes are part of everyday life. However, what happens if your mistake occurs in a professional setting and results in your clients losing money?

If your job or business involves providing professional advice to clients, these professional mistakes can cost a lot. As a result, your clients may pursue legal claims against you.

Professional indemnity insurance is a type of business insurance that covers professional services. This can include professions such as consultants, accountants, chiropractors, lawyers, and more.

The insurance compensates for cases where you have to defend yourself against claims regarding your professional service. This insurance, however, will exclude cases where your actions were a breach of your professional duties.

Holding this type of business insurance will be essential in reducing your firm’s vulnerability to legal disputes. It can also win you more clients because it shows that your firm takes the work that you do seriously and will attempt to prevent any damaging mistakes.

Cyber Liability Insurance

We live in an age where most business activities can take place online. While this arrangement is highly beneficial, it can also expose your business to different types of risks. One of them is cyber attacks.

Whether you are a large corporation or a small business, a cyber attack will be heavily damaging to your company. A data breach can result in ineffective computer systems and lost information.

This will interrupt your business proceedings. Even worse, they can result in the leakage of your customers’ sensitive information.

Protecting your business with cyber liability insurance has never been more important. This coverage provides financial support for costs arising from the following scenarios:

  • Loss or theft of important client information
  • Interrupted business proceedings
  • The investigation process
  • Recovery of data lost during the breach
  • Extortion compensation
  • Any fines and penalties
  • Costs incurred when trying to restore your business reputation
  • Legal costs because of any legal claims from your clients against you or your company

The costs of a cyber breach are high. Having an insurance policy that protects you can go a long way in ensuring your business can continue to run after this unfortunate event.

Management Liability Insurance

Business management is a difficult position to hold, and the decisions you make can expose you to a lot of risks. This is where management liability insurance can be helpful. This coverage is also known as Professional Liability, E & O or D & O for directors and officers coverage. This insurance coverage protects the leaders of your company, such as your managers, directors, and more. Mismanagement liability usually arises because of the following scenarios:

  • Defamation
  • Breach of professional duties
  • Claims regarding unfair dismissal
  • Sexual harassment claims
  • Employee theft and fraud

The insurance plan will typically cover costs regarding investigating, defending, and settling any claims with the opposing party.

Commercial Vehicle Insurance

What happens if an employee of yours is driving the company’s car and got into an accident? The legal claim can impact not just the employee but your company, which is why you should have a commercial vehicle insurance plan.

This insurance protects any liabilities that arise from accidents involving your business vehicles. This can include delivery trucks, forklifts, company cars, work vans, and more. It also includes personal vehicles if you were using them for a business purpose.

Your commercial vehicle insurance offers coverage for the damages to the vehicle and the drivers. This includes repairs, medical costs, lost wages, and personal injury legal claims against your company because of the accident. If the driver is uninsured, your insurance company can also provide financial compensation for them.

Business Interruption Insurance

What happens if your business is suddenly interrupted because of events that are out of control? For instance, your headquarters may be damaged in a natural disaster. Or, you are unable to provide your business services because of the COVID-19 pandemic.

This period of time shows how important it is to have business interruption insurance. This policy will provide financial coverage for the ongoing costs of your business.

These costs include the following:

  • Ongoing expenses such as electricity and rent
  • Expenses arising from the need to temporarily relocate to another location in order to operate your business
  • Having new training sessions because of business transitions or to operate replacement machinery
  • Closing your business under short notice
  • Damage to a supplier’s premises

The main purpose of the business interruption insurance plan is to maintain a business’s profit margins. Even when they cannot operate because of circumstances that are beyond their control, they won’t go bankrupt.

This is especially important in cases of prolonged business interruption. This is what is happening because of pandemic lockdowns. Without this insurance protection, a small business may find the ongoing costs too overwhelming and may have to close its doors permanently.

Business Insurance Is Essential to Run a Company Well

Some business leaders may consider business insurance as an optional thing, but it shouldn’t be. Different types of business insurance are essential in protecting your finances, your professional reputation, and the survival of your company.

It’s not enough to have one type of insurance plan. To be adequately protected, you have to consider the different risks your company is always exposed to and prepare for them.

Contact us today to find a suitable insurance policy.

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What You Need to Know About Contractors Insurance

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Whether you are a contractor or you’re hiring a contractor, no job should begin before contractors insurance is in place.

If the unexpected happens and someone gets injured or property is damaged, who pays? Keep reading to learn more about what you need to know about contractors insurance today.

Why Do Contractors Need Insurance?

No matter how great of a contractor you are, accidents can still happen. Working as a contractor involves managing many moving parts; there will always be factors beyond your control. And if an accident does happen, damages can add up quickly.

You don’t want to be stuck footing that bill out of your own pocket. This is where insurance comes in. When you have a contractors insurance policy, you don’t have to worry about whether you will go out of business if you make a mistake or something goes horribly wrong.

Contractors insurance also covers much more than you might think. To name one example, theft or damage of building materials, either in transit or at the job site.

If you don’t have insurance, you could end up be held personally liable and ultimately, your business could end up going bankrupt. Insurance policies for contractors offer protection for you and your business. Having insurance will make you appear more trustworthy in the eyes of potential customers, because they don’t have to take on a risk by hiring you.

Depending on where you live and what trade you work in, your state may require you to carry insurance. Contractors insurance is highly customizable, so you can find a policy that works with your business needs as well as your budget.

General Liability Insurance

Every party involved in a construction project, including sub-contractors, should have general liability insurance. This type of insurance covers you if you accidentally cause bodily injury or property damage to another party. If this happens and you don’t have insurance, you can be sued and your business/personal assets could end up at stake.

General liability insurance covers a number of different trades and contractor needs. But it does have clear and defined limits. If your business operations fall outside of those limits, you will additionally need more specialized coverage.

Insurance for Specific Trades

If you are a contractor who works in a specific trade, you might want to purchase a policy that covers the specific risks associated with your trade. Different trades have unique risks that might not be covered by a general policy. There are thousands of different general liability class codes, and it is important to recognize what is being covered under your policy.

Examples of trade-specific insurance include:

  • Window Installers
  • Siding Installers
  • Painting
  • Heating & Cooling
  • Plumbing
  • Electrical
  • Carpentry

These specific coverages can be added to your general liability insurance policy to provide extra security and protection.

Business Owners Insurance

If you own a contracting company you need coverage not just for yourself, but also for your business and your employees as well.

If this is the case, you might benefit from purchasing a business owners policy. This type of policy not only provides general liability coverage, but also provides protection for your business property such as tools and equipment.

Different insurance carriers offer different coverages under their business owners policies. Make a list of the needs specific to your business, then compare it against your policy options to make sure you get the coverages you need.

Builder’s Risk Insurance

Builder’s risk insurance is a type of property insurance. This insurance covers construction contractors, and is a short-term insurance option designed to cover the duration of a building project. This type of policy can be carried by either the owner of the property or the contractor themselves.

This type of insurance focuses on covering property damage, including damage to your tools, scaffolding, and other work materials. Local building codes often require contractors to carry this type of insurance when completing a job.

Business Auto Insurance

Contractors generally use a number of different vehicles to transport people, materials, and to do specific work. The use of vehicles introduces the potential for property damage and bodily injury as a result of auto accidents.

Contractors invest a lot of money into their vehicles. Business Auto insurance protects contractors and other parties in the event of a vehicle accident. Hired/Borrowed Auto and Non-Owned auto coverages are two common extensions of coverage often needed.

If you work in a trade that uses unique vehicles, you want to make sure your policy covers the right types of vehicles and their specific use cases.

Workers Compensation Insurance

General contractors are usually required by law to carry workers compensation insurance. This type of insurance offers protection for employees that are injured on the job.

It’s so important because construction is an injury-prone industry. If an accident occurs, your workers compensation policy will cover medical expenses and disability payments if the injured worker is unable to return to work or permanently disabled.

If you are a sole proprietor or a single member LLC, most states will allow you to opt out of workers compensation coverage.

Completed Operations Insurance

You might be wondering whether insurance covers you after your job is completed. If you have completed operations insurance (which is normally included in your general liability) the answer is yes.

Even if you do a great job, things can go wrong down the line with the work you completed and you could be held liable if your work causes injuries or property damage. If you have completed operations insurance, you and your clients will have peace of mind that you are both covered if something happens after the job is done.

Are You Looking to Purchase Contractors Insurance?

If you are a contractor, you need to be sure you are covered in the event that something goes wrong.

You can protect yourself and others by purchasing a contractors insurance policy. As your business grows, you want to make sure that your current policy covers the changes your business goes through.

Having a good insurance policy will give you and your clients peace of mind. Contact us today to learn more about how contractors insurance can protect you and your business.

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Life Goals: 10 Key Things to Know About Life Insurance

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One of your life goals should be to get life insurance so you know you and your family will be taken care of. Keep reading to learn all about life insurance.

Less than 60% of Americans have life insurance and out of those that do, only half have enough coverage.

Why is this the case? Life insurance policies can get complicated and many people aren’t aware of the facts. Not everyone’s life goals include buying a life insurance policy, but it should be given very serious consideration.

The more you know about life insurance, the easier it is to find the right policy that adequately insures you. Read our guide on 10 things to know about life insurance.

1. It’s More Than Monetary Value

If one of your life goals is to get life insurance, you may already know that it adds more than monetary value to your life. If not, that’s okay, we’ll explain why.

Some consequences come with the loss of life, especially if that loss was unexpected. With a life insurance plan, the people you leave behind can cover the financial expenses they are left with, giving you the peace of mind that your loved ones will be protected.

2. It Helps Those Who Rely on You Financially

If you are a spouse or parent of dependent children, a life insurance policy can help upon your death. If someone relies on you financially, this policy is essential to have.

For example, life insurance can protect your family from your debts and mortgages, and other final expenses. It can also help cover planned educational expenses and the loss of income.

Yet, it doesn’t have to be for a family member’s sake. If you are an employer or business partner, a life insurance plan can fund a buy/sell agreement and help cover expenses when you are gone.

Dealing with the loss of a loved one is difficult, but a life insurance policy can leave your family without the added troubles of financial burdens.

3. It’s a Contract

A life insurance policy is actually a contract between you and an insurance company. It could also be used as a trust if the livelihood of someone else is important to you.

In the event of death, a life insurance company will pool the premiums of policyholders and pay out the claims. This is known as the death benefit.

The insurance company receives a profit based on the difference between the premiums and the claims paid.

4. There Are Four Primary Roles

There are four primary roles within a life insurance policy: the insurer, the owner, the beneficiary, and the insured.

You may have guessed it, but the insurer is the insurance company that is responsible for paying claims once the insured has passed on. The owner must pay premium payouts to the insurance company.

The life insurance policy is medically underwritten on the insured and the beneficiary is the person or trust that receives the claims or death benefit. Most times, the owner and the insured are the same people.

5. It’s Not Always an Investment

A life insurance policy can have an additional investment component, but that is not usually the case. Universal life, whole life, and variable life insurance policies are all investment types of plans. These investments offer some degree of tax privilege.

On the other hand, more common types of life insurance plans, like a term life policy for example, are risk management tools.

6. They Can Be Inexpensive

Most people are surprised when they come across an inexpensive life insurance policy. A term policy with plain terms is cheaper than others because it offers low premiums for only the specified term.

Applying for a permanent policy is the more expensive option because it covers you for your whole life. A term policy and a whole life policy (permanent policy) are the two most common plans out there.

Term Life Insurance Policies

A term life insurance policy is easy to understand and is relatively inexpensive compared to whole life policies. With this plan, you’ll have coverage for a fixed amount of time. Generally, between 10 and 30 years.

Some refer to term life as “pure life insurance” because it protects dependents if you die prematurely. If you die within the term, the beneficiaries receive a payout, otherwise known as the death benefit.

Major benefits of these policies include the cost and premium remaining the same during the term period. When you buy this type of policy, you choose the term period you want.

If you are shopping for term life insurance policies, there are a few things to keep in mind. One is finding a term that covers the amount your family would need if you could not provide for them any longer. The payout would replace your income, help with child care costs, etc.

Term Life is usually the best option for those that need life insurance until their kids are on their own and debt is paid off. It is also a good idea to save money during the term so that you’ll have a financial safety net when the term period expires.

Whole Life Insurance Policies

Whole life insurance is more expensive because it provides lifelong coverage. This type of insurance comes with an investment option known as cash value.

In a tax-deferred account, the cash value will slowly grow. You won’t pay taxes on these gains while they are building.

During the life of the policy, you can borrow money from the account or surrender the policy in exchange for cash. If you don’t repay these loans with interest after borrowing money, the death benefit will reduce.

If you surrender the policy, you won’t have coverage any longer.

This form of permanent life insurance is more straightforward than others even though it is more complicated than term life insurance. With whole life insurance, you can take advantage of:

  • Premiums remaining the same while you live
  • Guaranteed death benefit
  • The guaranteed rate of cash value growth

Specific types of whole life policies earn annual dividends meaning you’ll get some of the insurer’s profit back. You can use these dividends to:

  • Receive cash
  • Keep in your account and earn interest
  • Decrease premium payments
  • Repay policy loans
  • Buy more coverage

It is important to note that dividends are not guaranteed.

7. They Don’t Have to Be Complicated

Many avoid buying a life insurance plan because they think they are too complicated to understand. However, it is better to get a basic life insurance policy that you do comprehend than to not get one at all.

In most situations, getting a policy that can cover all or most of your income is good enough. You only need a policy for as long as you think your household will need your income.

If you do want to understand a more complicated policy, there are resources out there to help you. Feel free to reach out to our licensed life insurance agents here at Gessel & Associates, who can walk you through your options.

8. There Are Cancellation Methods

Most policies come with cancellation methods, but you need to proceed with caution if you plan on canceling.

The first rule of thumb is to only cancel once you have a replacement policy in place. You never know what the universe will throw at you in the short amount of time you don’t have a life insurance policy.

Term policies are less complicated to get out of. You can cease your premium payments and your coverage will lapse as a result.

If you have a cash value policy, be sure to analyze the potential value before cashing it in. You may be losing out on money by canceling. You can ask your insurance agent for a cost basis report before making a decision.

9. Additional Coverage Can Be Added

We’ve already touched on this fact, but we want to cover it further. A lot of times people buy a life insurance policy thinking they have enough coverage, only to find out they need more than they anticipated. Changing life circumstances can place additional demand on life insurance proceeds.

Because life insurance is more than a way to pay off debt or funeral expenses, having more is better. If someone depends on you, you’ll need your policy to cover the loss of your income as well.

Luckily, additional coverage can be added to most policies. It is also possible to have more than one life insurance policy at a time.

10. You Can Outlive Your Policy

If you opt for a term life insurance policy, you may outlive it and get your money back.

If you reach the end of your term policy without making a claim, the life insurance company will return all of your premiums. Yet, this is only the case if you pay extra for the return of premium option.

Accomplish Your Life Goals: Get a Life Insurance Policy Today!

We assume you are interested in life insurance if you have stumbled upon this article. If you are ready to achieve your life goals and get an insurance policy, you are already one step ahead of the game.

Now that you are more versed on life insurance facts, you can shop for a policy that is right for you. For more questions about life insurance or to sign up for a policy today, contact us.

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Your Complete Guide to Auto Insurance: Everything You Need to Know

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We all need auto insurance but how much do you really know about it? Read on as we take a look at everything you need to know about auto insurance.

Approximately 13% or 1 in 8 drivers in the United States have no auto insurance. This serious mistake can leave them with major legal, medical, and/or repair bills to pay if an accident or other incident occurs.

Almost every state has its own set of laws about how much and which types of auto insurance drivers need to maintain. Knowing these ahead of time helps you keep your vehicle on the road and avoid penalties like fees and license suspensions.

Auto insurance costs continue to rise, but there are ways to fight back. Experienced, knowledgeable drivers get the best insurance at the most affordable price. Read our guide for all the auto insurance facts you need to know.

Getting Auto Insurance

Every vehicle on the road today, whether it’s used for commercial or personal purposes, needs to have an auto insurance policy connected to it. Each state has its own minimum required policy amounts, which you should know before making a purchase, but doesn’t offer much protection.

If you get into an accident you’ll need to show the officers that you have the required minimum policy. This is why you must provide proof of insurance when registering any motor vehicle. It must include:

  • Policy Holder’s name & address
  • Description of the insured vehicle
  • Effective dates of coverage
  • Liability limits
  • Insurance Company & Agent contact information

This documents prove that you have the required amount of insurance in your state.

Types of Auto Insurance

There are a couple different types of car insurance policies, personal or commercial auto. Coverage will vary greatly depending on which type of policy is needed.

Personal vs. Commercial

An important distinction to make is the difference between personal and commercial auto insurance. They cover different  vehicle usage and are therefore rarely interchangeable.

Personal auto insurance is typically for vehicles you drive every day, whether commuting to and from work or school, or used for pleasure and running errands.

Commercial auto insurance covers vehicles used to complete business functions. This can include delivery trucks, or even vehicles with business advertising on them. If you run a business, you likely need a commercial auto insurance policy.

Your agent will be able to determine when a commercial auto policy is necessary.

Required Coverages

Most states require bodily injury liability coverage. This type of insurance is so important because of what it covers. It pays for almost all costs related to car accidents, including:

  • Medical treatment
  • Rehabilitation
  • Funeral costs
  • Lawyer’s fees
  • Losses for pain and suffering

This coverage applies to injury to others as a result of an accident. There are usually minimum amounts you must purchase in each state, but obtaining higher limits is often a good move. The average bodily injury coverage is $100,000 for every person injured, with a maximum bodily injury limit of $300,000 per accident.

Property damage liability handles the costs of other people’s property, whether their vehicle, home or business. It helps cover the cost of repair and, or replacement. The average state limit for property damage is $15,000, but $35,000 is closer to the actual cost of the average new car. Your liability for damage to property adds up quickly after an accident.

Uninsured or underinsured motorist insurance covers most of the same things your bodily injury liability to others does. The difference is that it applies when you get in an accident with a driver who has no insurance, or your damages exceed their limits of coverage. Your limit of coverage should equal the amount of your bodily injury to others.

Potentially Required Coverages

PIP or personal injury protection is also known as no-fault insurance. It covers medical, rehab, and funeral costs for anyone in your household when an accident occurs. It also includes lost wages and in-home care. It is a requirement in some states, and an optional add-on in others.

States with no-fault insurance include:

  • Delaware
  • Florida
  • Hawaii
  • Kansas
  • Kentucky
  • Maryland
  • Delaware
  • Florida
  • Hawaii
  • Kansas
  • Kentucky
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • New Jersey
  • New York
  • North Dakota
  • Oregon
  • Texas
  • Utah
  • Washington

While some states require PIP, other states use a tort system of liability where the amount you’ll pay after an accident depends on who the court of law determines is most at fault in an accident.

Collision and comprehensive coverage are only required if you’ve bought your car with a loan. However, they are beneficial to anyone who has monetary value in their vehicle.

Collision coverage pays for the cost of repairing or replacing a vehicle after an accident. Comprehensive coverage handles other types of damage such as theft, fire, water, or natural disasters/ weather.

78% of drivers purchase comprehensive coverage, and 74% get collision coverage. This makes them the most popular non-required coverages in existence.

You can choose your deductible for both collision and comprehensive coverage depending on what is available. Deductibles range from $250 to over $1,000. The lower your deductible, the higher your premium.

Non-Required Coverages

There are types of auto insurance coverage that your state may not require, but still offer valuable protection. They include medical payments, towing and labor, rental reimbursement, and glass coverage.

Medical payments coverage covers medical costs from a car accident, including funeral and rehabilitation costs. This is a no-fault, no deductible coverage, and is often used to help offset incurred expenses after an accident.

Towing and labor coverage pays for tow trucks if your car is undrivable after a covered accident, but is also used in traditional roadside assistance scenarios (fuel, fluid, lockout etc).

Rental reimbursement provides a temporary substitute until your vehicle is repaired or replaced.

Glass coverage is another optional but valuable coverage. Full glass coverage is used for headlights and taillights, or any other glass surface on your vehicle.

What Do I Need?

The type of coverage you’ll need to include as part of your auto insurance policy depends on your unique situation. This will be addressed as part of your personal consultation with our agency.

Cost of Auto Insurance

The national average for full coverage car insurance is $1,738 per year. Several factors can drive the prices up or down, including state regulations of coverage and competition amongst auto insurance companies

One of the most expensive places to get a policy is Detroit, Michigan. Where the average premium is well north of $5,000 for the year. One of the least expensive places is Bridgewater, Maine, with an average premium of $993 per year.

Auto policy prices are determined by underwriting and rating. Auto insurance companies assess a driver’s level of risk based on factors such as location, age, gender, vehicle make and model, and driving and credit history. Actuarial Science is very exact, and is how insurance companies determine what rates to file with the state regulatory board.

There are also ways to reduce your costs. Combining your homeowners and auto insurance policies can reduce premiums by 15%. Other ways to save include:

  • Reducing the number of claims you file
  • Driving safely
  • Purchasing a vehicle that’s affordable to insure
  • Maintaining positive driving and credit records
  • Record all possible information when accidents occur

One of the best ways to ensure you get the most affordable and complete policy is working with an independent agent representing multiple companies.

Finding Auto Insurance

Purchasing any type of insurance is a complex process, and this applies to auto insurance as well.

Each state has minimum requirements, and while maintaining the minimum level of coverage will keep your vehicle legal, you should consider more than the minimum. Our agency will help guide you through this process.

Gessel & Associates Insurance provides coverage for all of your auto, home, or business needs. Contact Us to get the best auto insurance policy for your needs today.

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Home Insurance 101: How to Find the Best Insurance Plan for You

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When buying your first home, it’s important to purchase home insurance, but knowing what to buy can be a challenge. Here’s how to decide…

For first time homeowners, going through the process of searching for, choosing, and closing on a house is stressful enough. But even after all of that, there’s still more work to be done.

You probably already know that you need a home insurance policy, but do you know where to start? There are so many options, and each insurance company has a different set of offerings. What kind of coverage do you need, and how much?

When buying your first home, the answers to these kinds of questions may not be readily apparent.

Fortunately, Gessel & Associates Insurance Agency can guide you to the perfect policy for your new home. Keep reading to get the lowdown on how to choose the right home insurance policy for you.

Home Insurance 101: What’s in a Standard Policy?

If you’re a complete novice when it comes to homeowners’ insurance, keep reading. We’ll give you a primer on what a typical home insurance policy should cover.

The most common home insurance policy is called HO-3 (Special Form), with more coverage being HO-5 (Comprehensive Form) and less coverage being HO-1 (Basic Form) or HO-2 (Broad Form). In short, a standard HO-3 policy will cover most natural disasters, theft, and accidents.

A standard policy includes dwelling coverage, which means damage to the physical structure of your home. If a hurricane causes a tree to fall on your roof, the insurance company will replace it. It also covers damage by accidental house fires, even if a fire is due to negligence on your part.

Dwelling coverage also extends to damage caused by others, in certain situations. If a thief breaks in through your windows, a standard policy will pay to replace them and whatever else was damaged due to their entry.

Depending on your policy, insurance may not cover damage that could have been prevented with regular maintenance. For example, if you don’t have your furnace maintained for 10 years, and then it causes harm to your property, that may not be covered.

If your home becomes unlivable due to covered damage, a typical insurance policy will pay for you to stay in a hotel.

A good rule of thumb to keep in mind is that you should purchase enough insurance to rebuild your home if, for some reason, it was razed to the ground. This is referred to as replacement cost coverage.

Besides the physical structures of your house, a standard policy also covers personal property, also known as contents coverage. If a burglar nabs some of your electronics, your insurance will pay to replace them, or reimburse you for their value. The value will be established as part of the claim process.

Finally, standard home insurance will protect you from liability if someone is injured on your property. If a guest falls down the stairs and breaks their legs, they may sue you to recoup the cost of their medical bills.

Depending on the details, the insurance company will either arrange a payout or will defend you legally. This is an especially important facet of home insurance that you should consider when choosing a policy.

Home Insurance and Personal Liability

Insurance doesn’t just pay medical bills. If someone alleges that they were injured on your property, they may sue you. Insurance will shield you from assuming personal liability in these lawsuits.

The threshold for filing a personal injury lawsuit against someone else is low. New homeowners should be aware of this when they invite guests into their home, they are taking on some risk. The laws that say what you are and aren’t responsible for can differ by state, so you should speak to your agent about that.

Homeowners can be sued for many types of injuries – a dog bite, a slip and fall on ice, or even damage to someone’s personal property, like their phone. Outside of bodily harm or injury, there are number of other ways liability can come into play, your agent can advise you of these other exposures to risk. Having the right liability insurance protects you from paying for someone else’s medical bills, or other damages.

Adding Additional Coverage Beyond a Standard Policy

You should consider additional coverage for your policy if you store a large amount of valuable items in your home, or if you collect expensive goods, such as rare coins.

To protect them from theft or damage, you can add a rider to your insurance policy for specific items, often called a policy endorsement. It’s like a mini-insurance policy backpacked onto your regular insurance that’s only for the item named within it.

There a few different types of riders, with the most common being for expensive jewelry, antiques and art, furs, or rugs. If you own any items like this, be sure to ask your insurance agent to go over your options to add a rider to your policy.

Another type of insurance policy with extra coverage is called an umbrella policy. This type of policy extends beyond paying for damages. It covers the homeowner to a greater extent with regards to lawsuits and can add extra coverage if you have additional liability at home, such as a pool or trampoline.

You should also consider whether you have any increased liability with regards to guests. Some breeds of animals and some kinds of exotic pets are not covered under normal policies. If you’re worried about your pet injuring someone in your home, you should discuss this with your agent, and possibly add extra insurance to cover that animal specifically.

Finally, consider the area in which you live. Some climates are more prone to a certain type of natural disaster, such as sinkholes or tornadoes. You may also want to consider adding extra coverage to mitigate damages by specific events that are common in your locale.

What Isn’t Covered By Home Insurance

Although home insurance can be quite customizable to fit your needs, there are limitations to what you can insure.

Standard policies won’t cover certain natural disasters such as earthquakes or floods, so if you think you may need that coverage, discuss it with your agent and consider adding a rider, as discussed above.

Insurance won’t cover standard maintenance, like having an HVAC technician come out to inspect your furnace and A/C unit. Routine upkeep and maintenance is considered the owner’s responsibility, and is done at your discretion. However, if you let routine maintenance fall by the wayside and there’s an incident as a result, your insurance may not cover that. This is because the problem was likely preventable and may have been caused by your neglect, rather than an accident.

Under this same principle, most policies won’t cover incidents like a termite infestation, rust, mold, and other issues covered under what would be considered general home upkeep or maintenance.

Finally, other large-scale disasters such as war or nuclear incidents are typically not covered under most policies.

What Does Home Insurance Cost?

Home insurance works similarly to healthcare in that you have a deductible that you must meet before the policy will kick in and pay for any further costs. This could be a stated dollar amount, such as $1000, or a percentage of your home’s total coverage, usually around 1 or 2%.

The average homeowner pays about $1000-$2000 per year for their insurance, but different levels of coverage can cost more or less than that. Price is also highly variable by state due to different regulations and risks.

For non-standard policies and riders, the costs will vary. Specific coverage such as floods may have a higher deductible, such as 10% of the total insurance amount.

Choosing Your Insurance Agency

Your home is your sanctuary, and for new homeowners, choosing the right home insurance policy is crucial. Where to buy home insurance is one of the most important decisions you’ll make as you embark on this new part of your life.

Gessel & Associates Insurance Agency knows that this process can be highly complicated. There’s no one insurance policy that ticks the boxes for everyone. We take your needs seriously and have a wide range of policies available to meet your unique needs.

Gessel & Associates is an independent agency, meaning we represent many different insurance companies. Because of this, our agents are knowledgeable about the entire insurance field, not just about one company’s policies.

Even if you’re not sure where to start, Gessel & Associates can help steer you towards the perfect policy for your home. Reach out today to schedule a consultation with Gessel & Associates today so you can protect what is most important.

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11 Crucial Questions to Ask About Your Homeowners Insurance Policy

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Before investing in a homeowners insurance policy, you need to make sure it fits your needs. Ask these important questions before making a decision.

5.7% of homes that were insured had a claim in 2018.

Whether you’re required to purchase homeowners insurance by your mortgage lender, or you just want to buy insurance for the home you own outright, choosing a homeowners insurance policy can be overwhelming.

If you don’t get your policy right, you could end up not having enough coverage in the event that your property is damaged.

To avoid that outcome, check out this list of 11 crucial questions to ask about your homeowners insurance policy, and discuss them with your agent before signing your policy contract.

1. What Does a Standard Homeowners Policy Cover?

When shopping around for homeowners insurance, the first thing you’ll want to understand is what is covered under a standard policy. Typically, standard homeowners insurance policies will include several primary kinds of coverage, which are:

  • Dwelling coverage (covers the physical structure of your home)
  • Other Structures coverage (covers any structure not attached to your home)
  • Personal Property coverage (covers your personal possessions inside the home)
  • Loss of Use coverage (covers other living expenses that might come up if you’ve been displaced from your home)
  • Liability coverage (covers the costs that are related to injury or damage you are legally responsible for)
  • Medical Payments coverage (covers medical expenses related to injury on your property)

Homeowners insurance companies offer additional options when it comes to homeowners insurance policies, so you can add what you need on top of the average policy. It is important to discuss optional coverage available with your agent.

2. Do I Need Flood or Earthquake Insurance?

It’s important to know when you’re looking for homeowners insurance that flood insurance is only very rarely included in a standard homeowners insurance policy. It is almost always necessary to purchase a separate policy.

If you live in a region or area where you’re at a high flood risk, it’s a good idea to buy a flood insurance policy. It’s possible that your mortgage lender will actually require you to buy one.

Flood insurance isn’t the same thing as hazard insurance. Although the term hazard insurance does generally refer to the section of your policy that protects your home from fire, severe storms, or other natural disasters.

Earthquakes are also not typically covered under your hazard insurance coverage. That means that if you live in an area where you’re at high risk to experience earthquakes, you might want to buy a separate earthquake insurance policy. Other disasters that aren’t typically covered in a standard policy include nuclear explosion, sinkhole and mine subsidence, or volcanic eruption.

3. How Much Does Homeowners Insurance Cost?

How much your home insurance policy costs is going to depend on a number of different factors. The average amount that Americans pay annually for their premium is $1,200.

One of the factors that impacts your insurance rate will be your location. In some states, the average annual cost is much higher than in others. In Oklahoma, for example, the average is $1,885, while in Hawaii the average is only $1,135.

The cost of your home insurance will also depend on how much coverage you need.

4. How Much Insurance Do I Need?

How much insurance you need is going to depend on the type of house you are buying.

It’s important, however, that you buy the right amount of coverage. If you buy too much, you’re wasting your money. If you buy too little, then you might not have enough to cover the cost of potential damage to your home.

There are different levels of protection when it comes to insurance plans. One is actual cash value. This covers the value of your house and the belongings inside it, with depreciation for the age and condition of your house.

Replacement Cost is the next level of coverage. This means that it covers the value of your house without taking depreciation into account. This is, therefore, a more robust coverage type, since your home will be totally rebuilt like it was prior to the loss.

During the process of securing homeowners insurance, your agent will be personally and professionally responsible for advising you on how much coverage is needed for your situation.

5. How Much Liability Protection Do I Need?

If someone else gets injured on your property, it could mean that you’re on the hook for legal payments or medical bills. Personal Liability coverage will pay for your legal defense costs, and for the cost of damage or injury when you are held responsible.

Standard liability coverage is included within your homeowners policy, and it is not necessary to buy it separately. A typical limit of liability under your policy is $300,000, but you can always raise this amount for more protection.

A Personal Umbrella policy would provide additional liability coverage beyond what is available through your standard homeowners policy, and is yet another important consideration to discuss with your agent.

6. Will My Homeowners Insurance Go Up After a Claim?

This is something that will depend on the circumstance. Your premium might go up after you make a claim, but the increase might not occur immediately. Sometimes, your homeowners insurance will stay the same.

Since policies are full-year contracts, your rates stay the same for the extent of the policy. If you make a claim at the beginning of your policy’s year, then you won’t see an increase until at least your next policy year starts.

There is a lot of varied information that insurers look at when determining how much your rates should be.

It’s important to consider the fact that your rates could go up when making a claim. If a claim is small and barely exceeds your deductible, it might not be worth making a claim about it. Contacting your insurer directly to discuss a claim, or make a claim inquiry at all, can also often affect your premium whether anything is even paid out. Your agent should always be your first point of contact for a claim consultation.

7. How Can I Save on My Homeowners Insurance?

There are a number of ways you can save on your homeowners insurance policy.

One way that people do this is by minimizing risk. For example, regardless of where you live, installing a deadbolt or security system will typically lower your rates as it helps to lessen your risk of theft or break-in.

There are also often discounts available when buying insurance. One way that people commonly save money is by bundling both their auto insurance and home insurance together with the same insurance company. This also means that you only have to deal with one insurer instead of two.

Your agent will make certain you are maximizing all available discounts on your coverage.

8. What Are the Policy Limits?

Also known as the coverage limit, the policy limit refers to the total maximum amount that your insurer will shell out for a claim. For example, if your mortgaged home costs $300,000 to rebuild, your dwelling policy limit will be equal to that replacement cost. And again, replacement cost is how much it would be to rebuild your home, based on the cost of labor and materials in your area.

Other policy limits are typically determined in relation to the dwelling cost. For instance, your personal property coverage limit is frequently half of your dwelling coverage limit.

9. Will I Need a Home Inspection Before Getting Home Insurance?

Home inspections are typically done by your insurance company after your homeowners insurance purchase. This is a way for homeowners insurance companies to accurately assess the risks of your home, as well as verifying the accuracy of what has been reported on your application for coverage.

Before you have a home inspection by the insurer, you’ll want to make sure that any debris on your property that could get in the way of the inspection is removed.

If unrepaired damage or risks are found, you will typically be given a fair period of time to resolve any issues the insurer found with your home.

10. How Much of a Deductible Should I Pay?

A deductible is the amount of money that you are responsible for covering before the insurance company will pay the rest of your repair costs or claim. For example, if your deductible is $1,000, then you’ll have to pay $1,000 towards any damage before your insurer will cover the rest of your expenses (up to your coverage limit).

Your annual premiums can be lower if you set a higher deductible. This can be nice as it means you pay less money for your policy each year. However, if your home gets damaged, you’ll be responsible for shelling out more money than if you kept your deductible low and had higher premiums.

11. How Do I Pay My Premium?

Homeowners insurance premiums are often included in your mortgage payment. This is a nice way of making it so all your bills are handled in one place. In this instance, an escrow account is set up by your mortgage lender to handle your homeowners insurance premium.

Otherwise, monthly and other billing options are typically available if you are not paying your premium in full.

Homeowners Insurance Policy: Do You Have the Right Policy For Your Property?

No one ever wants to have to make a homeowners insurance claim, but sometimes the unexpected happens. As the old saying goes, it’s important to hope for the best, but always plan for the worst.

No one likes to spend an evening thinking about or dealing with their insurance. However, it’s important to assess your existing policy with a professional, and make sure that you have the coverage you need. Otherwise, you could very easily get caught without the protection you assumed you were purchasing all along.

Remember, don’t be hesitant to speak with your agent and ask them questions about your policy. While policies can read like a foreign language, it’s important that you understand the basics of your coverage, and work with an expert agent. This can make it so you sleep easier, knowing that you’re covered if something unexpected and unfortunate were to occur.

Is it time for you to review your homeowners insurance? Schedule a consultation with Gessel & Associates today!

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