Insurance

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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