How do I find out what Insurance I need?
In order to find out what type of insurance you need, you must talk to a professional. Someone who understands risks and can assess your willingness to assume it. Someone who can tell you whether you have enough insurance based on your aversion to risk, or too much.
You talk to an insurance agent, someone who understands what coverage is out there and what is right for you. You talk to an agent who has expertise in the specific coverages you need and the risks you face.
How Much Is Enough? It Depends.
While itīs one thing to have insurance for specific risks, itīs quite another matter to have enough insurance. How much is enough? The answer is different for everybody. It depends on what you want to protect and how much risk you are willing to assume yourself.
Letīs say you have a net worth of $1 million. Thatīs the total value of your various possessions;home, car, furniture, art, stock and bonds,etc. One million dollars is also how much you have to loose.
Imagine this: Say this famous person you hit in the intersection sues you for loss of income the most this person can get from you is $1 million.
Letīs say your current auto insurance policy has a limit of liability that will pay a maximum of $250,000 to any one person involved in an accident with you. If you are sued for $1 million, your auto insurance will only pay $250,000 which leaves you owing $750,000.
Ideally, your liability insurance limits should come close to matching your net worth. After all, someone canīt sue for something you donīt have. you may be willing to assume some risk here, believing that youīre very unlikely to ever be sued for your net worth.
Tip: Remember that your net worth is basically a target for attorneys representing someone who has suffered injuries, lost wages, and had pain and suffering as a result of something you did. In addition, it can only cost a few hundred dollars more a year to have a liability limit of $1 million as opposed to $250,000.
In deciding what insurance to buy, you must consider what you have and what it costs to provide the level of coverage youīre comfortable with.
How Do You Find The Right Insurance Company For the Right Price?
Even if you know exactly how much insurance you want or need, there another crucial element in this process. You need to find a company that will provide the coverage you want at the right price.
An insurance agent can be invaluable in helping find the right company.
How do you find out what is best for you? You should call an independent agent who is not bound to just one, single company. They represent numerous companies which have broad ranges of product offerings.
Once they assess your insurance needs, they can find the company they represent that has the coverage that best suits you, at the price you are willing to pay.
AUTOMOBILE INSURANCE
There are several ways you can purchase insurance for you cars. You can buy it over the Internet at literally hundreds of different web sites. You can call an 800 number and buy it over the phone directly from an auto insurance company. You can call an insurance agent. In some cases, you can buy it at your bank or credit union.
Tip: Some people believe auto insurance is just a commodity. Itīs not.
NO INSURANCE COMPANY HAS THE LOWEST PRICE FOR EVERYONE
Be aware that prices fluctuate. Sometimes companies "buy the market" with low prices to gain new consumers, then their prices gradually- or not so gradually- sneak up.
They also have to change prices based on their profitability, losses and other factors.
Every company has a slightly different appetite for risks it wants to take on. Some insurers want only very good drivers who have no tickets or accidents. Some companies, believe it or not, actually want bad drivers. In fact, these companies specialize in insuring people with lousy driving records.
Some companies target drivers who live in certain areas. There are insurers that really like to do business in big cities, and there are others that would prefer to stay away from highly populated areas.
TIP: Remember that sometimes "you get what you pay for." The cheapest option may not provide you or your family with the best protection. The saying goes "you donīt need insurance until you have a claim." When you do have a claim- something that goes wrong- thatīs a terrible time to discover you donīt have adequate protection!
If you think auto insurance is a commodity, consider this:
A person with a good driving record will pay three, five even 10 times less than a driver with a couple of tickets, and accident or who has been cited and convicted of driving under the influence.
As you can see, it pays to shop around. Just be sure:
You really understand the different coverages in you policy, or, You have an agent you really trust who can examine coverage prices for you.
HOW MUCH AUTO INSURANCE SHOULD YOU BUY?
Most states, more than 40 require you to have auto insurance. But they donīt require you to have much. In states that have so-called mandatory insurance laws, all you are required to buy is a little bit of liability coverage. This is so you can pay for some of the damage your car does to other cars and other people not in your car.
how much are you required to buy? In most states with mandatory auto insurance laws, the minimum needed is liability that provides 1.) 15,000 for any person involved in an accident with you, 2.)A maximum of 30,000 for all persons in an accident, and 3.)$10,000 for damage to the other vehicles involved. Thatīs not much. In fact, itīs next to nothing.
Tip: The minimum amount of insurance required by most states is not much. Seriously consider getting more protection in order to protect your financial health.
Note: Notice that the mandatory auto insurance laws do not require you to buy coverage for your own car, or coverage for your injuries, or coverage if you are hit by someone who doesnīt have injuries.
If you buy just the minimum coverage required by law, you are leaving your assets at a considerable risk. Your car, obviously. And your home, if you are at fault in an accident that causes serious injuries to the other parties.
LITTLE KNOWN FACT: THERE ARE SIX DISTINCT COVERAGES IN AN AUTO POLICY
The auto insurance "commodity" is actually a product with six coverages:
1.)Bodily Injury Liability- It pays the medical and other expenses of those people injured or even killed in accidents you cause. This is required by most states, usually with a minimum coverage of $15,000 for any person involved in an accident with you and no more than $30,000 for all the persons in the accident.
2.)Property Damage Liability-- It covers the damage your car causes to property. Usually, thatīs the other car or cars involved in the accident, but it also covers damage you do to any object you hit. This is also required in most states, usually with a minimum coverage of $10,000.
3.)Collision-- This is for damage done to your car when it collides with other vehicles (your fault) or other objects (again, your fault).
4.) Other than collision-- This covers damage to your car that results from something other than a collision with another vehicle. An example is damage caused by vandals or a wind-blown tree hitting your car. It also includes coverage for theft.
5.) Medical Payments-It pays medical, and even funeral, expenses for you as well as members of your family and passengers in your car if it is involved in a collision, regardless of who caused the accident. It also covers you as a pedestrian if you are hit by a vehicle.
6.)Uninsured/Underinsured Motorist--This pays for injuries to you and, in some policies, damage to your car if you are hit by a driver who doesnīt have insurance-- or by someone who doesnīt have enough insurance to cover your losses. In most states, more than 10% of the motorists donīt have any insurance. In some states, as many as three out of 10 drivers donīt have coverage.
Many of those who do have insurance donīt have enough to cover damages and injuries that would result in a major collision. If you donīt have this coverage, which is often referred to as UM/UIM, you are taking a risk. UM/UIM also provides coverage for any injuries you suffer if you are hit while walking or riding a bicycle by a driver with inadequate or no insurance.
We often think that uninsured drivers just donīt buy insurance. If you ever received a lapse notice on your insurance for just one day, you were an Uninsured Motorist!!
WHO IS COVERED WHEN YOU BUY AUTO INSURANCE?
All the coverages in your auto policy apply when you are driving, but they also apply when other people are driving your vehicle.
Note: However, if someone is going to be a regular user of your car, that personīs name needs to be added to the policy.
Your insurance company wants to know whoīs going to be using the car. That stands to reason. After all, you could be a great driver, but whoever else is driving your car could be a lousy driver. If you let these people drive your car without telling your insurer and these people keep getting in accident, your insurance company isnīt going to be very happy. In fact, the company will probably cancel your policy.
What wonīt be covered?
If you intentionally try to cause damage to your car or another vehicle. This includes liability coverage.If you are using the vehicle to transport other people for a fee. If you are using the vehicle for certain business activities. this does not include traveling to see clients or taking a standard business trip. For damage caused by normal wear and tear, freezing, mechanical or electrical breakdown or road damage to tires.If your car is damaged because of radioactive contamination, international or accidental discharge of nuclear weapons, war, insurrection, rebellion or revolution.
Homeowners Insurance
Fire insurance-- thatīs what this used to be called. But now, homeowners insurance covers more than that. the policy covers theft and burglaries. If a high wind blows off your roof, you have coverage. If someone comes to your home and slips on your floor or anywhere else in your house, you have coverage if this person decides to sue you.
Dangerous Assumption? You MustNude
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Flooding? Landslides? Earthquakes? Most people donīt buy these coverages. In California about three-quarters of homeowners do not carry earthquake insurance. Landslide coverage is often hard to get, particularly if you live on a hill.
Make sure you are comfortable with the risks you are assuming. Ask your agent to find out how much these policies would cost you.
Limitations
There are limitations in the homeowners insurance policy. While there is coverage for the contents in your home, this coverage is limited for certain valuables: jewelry, art, computer equipment. For example, the standard policy will provide a maximum of $1,000 coverage for your jewelry if it is lost or stolen.
Tip: When you buy or renew your homeowners policy, talk to your agent about the coverage limitations for personal property. As a rule, if you have a collection or an individual item worth at least $2,500, you should discuss with your agent additional coverage options, because your homeowners policy may not reimburse you fully if the collection or item is damaged or stolen.
TIP: if you have something valuable you should consider purchasing a special personal property endorsement, or "floater", that is attached to your homeowners policy and provides the coverage you need.
On these floaters, you provide a list of items you have. The higher the value of your items, the more the added on coverage will cost. Your agent can recommend endorsements or the floater that can provide the coverage you need.
HOW TO INSURE THE STRUCTURE OF YOUR HOME ITSELF
Homeowners insurance covers both the structure of your residence and your personal property, including personal property that is not located in your home.
In insuring the structure, you want to make sure you have enough coverage to rebuild your home if it is destroyed. In other words, the limit on your policy should be equal tot he cost to replace your home.
HOW TO INSURE THE THINGS YOU CARE ABOUT THAT ARE INSIDE YOUR HOME.
There are two types of coverage for your possessions: replacement cost and actual cash value. Replacement cost is better got the homeowner.
Under replacement cost coverage, the insurance will cover the cost of replacing property that is damaged or stolen, up to a maximum dollar amount.Under the actual cash value, the insurance will cover the cost of replacing the property minus an allowance for depreciation. If you have older furniture, that allowance could be quite significant. Unless your policy specifically says it provides replacement cost coverage, the coverage is for actually cash value.
There are many other types of insurance designed to protect you and your family. We would be happy to help you, just WRITE US!
Business Insurance
If you own your own business or are a partner in one, youīre probably already familiar with risk. After all, few things in life are riskier than launching and running your own small business. Part of the risk of any small business is the loss of critical tools and property or liability to others. Either of which can cause loss of income or even force you to close your doors.
Large companies employ full-time risk managers to keep their risk-taking to a minimum. But chances are that as a small-business operator, you are your companyīs risk manager, along with its personnel director, office manager, and possibly the entire staff all rolled into one.
While juggling all the jobs that need to get done to make your firm a smooth-running and profitable operation, you may already be asking yourself, "Who has time to think about insurance?" You do! Keeping risks and losses to a minimum is a cornerstone of business success, especially for small businesses. Take a few minutes now to check your risk factors, find out your insurance needs and learn the many options available to you. And remember choosing the right agent is as important as choosing the right insurance.
We provide big business protection and attention for smaller businesses regardless of the size. Your business needs and concerns are actually the same as larger companies, regardless of your size. We provide the same quality coverage and service -- at the appropriate level for your company, customized for your needs and size.
We can help you save money on your Workers Comp including audits and return to work programs, property and liability coverages, business interruption coverages, and equipment breakdown coverages.
It doesnīt matter what your businessī size or needs are, you can get the same quality coverage and service -- at the appropriate level and best price for your company.
Benefits-
A Program Customized Just For You -- You expect coverage and advice just like the larger companies, even though your needs may be different. We have plans designed for retail, wholesale, office, and service businesses to respond with just the right level of protection and claim service you need and can afford.
Special Programs
Business Auto Workersī Compensation Professional Liability Crime Commercial Inland Marine Bonds
Iīm just getting my business started. Do I need insurance immediately?
Yes, because the chance of suffering a loss begins with the first day of business. You canīt get help after the fact. If you suffer a loss and have no insurance or have improper or insufficient coverage, there is very little, if anything, your insurance agent can do to help you. You must be prepared for the risks that are inherent in any business and the losses, sometimes catastrophic, that they can cause.
Also, many states and local jurisdictions require that businesses be insured to begin operating. And if you rent space for your business, your landlord probably requires that you be adequately insured as well.
I donīt have any major business assets. Why do I need insurance?
Every business has some property. And, when you think about it, your business is your property. Just like your home and your car, your business needs to be protected from loss, damage and liability. In addition, your business is your source of income, so you need protection from the potential loss of that income.
Generally, there are two types of insurance - property and liability. Property insurance covers damage to or loss of the policyholderīs property. And if somebody sued for damages caused by you or your possessions (other than a vehicle covered by your insurance policy), the cost of the suit -- both defending it and settling it if necessary -- would be covered by your liability insurance.
Does insurance coverage vary for different businesses?
Does insurance coverage vary for different businesses?
It can. Many small businesses are now insured under package policies that cover the major property and liability exposures as well as loss of income. A common package policy used by many small businesses is called the Business owners Policy (BOP).
Generally, these package policies provide the small-business owner more complete coverage at a lower price than separate policies for each type of insurance needed. Your agent can help you decide which policy or policies are right for your business. Additional coverage for property, liability or perils or conditions otherwise excluded (e.g., flood protection) can be purchased as endorsements to a standard policy or as a separate, second policy called a difference-in-conditions (DIC) policy.
Because businesses vary, it is impossible to have a standard policy to cover all contingencies. Also, some businesses, regardless of their size, do not fit the profile of a standard business owners policy. For example, restaurants, wholesalers and garages have special liability needs that are not met in the standard business owners policy. Your insurance agent can advise you of the best policy (or policies) to protect you and your business.
Will I need to protect my employees in the event they are injured on the job?
Yes, and in most states there are legal requirements that must be met, and for which you may be responsible. State laws vary, but most states require that you carry some form of workers compensation insurance. This protects the employee and also offers you the business owner a degree of immunity from lawsuit by an injured employee.
As a retailer, do I need to worry about product liability?
As long as you do not alter the products you receive from manufacturers for resale, you have only a secondary liability. The product manufacturer is the first liable party. General liability insurance usually covers this secondary liability, but you should check with your agent to be sure your business is adequately covered. Recognize, too, that your liability policy will pay defense costs, whether or not a judgment is rendered against you.
Life Insurance
Life insurance provides financial protection for you and your family. It can be used to cover a shortfall in your other assets, to protect your family and business, to cover a mortgage, or to help fund your retirement of a college education.
We can provide a wide selection of term and permanent life insurance policies to meet your needs and those of your family. We also offer policies that provide discounted rates for nonsmokers and people with good health histories.
Term Life Insurance
Protection for a specified time period Lower initial cost Ideal for covering a specific need May be convertible to permanent life insurance Permanent Life Insurance
Protection for your entire lifeFlexible premiums and coverage amountsCompetitive interest rates in a tax deferred environment Accessibility to cash values Policy guarantees.
Claims
WHAT DO YOU DO IF YOU HAVE A CLAIM?
The only reason you buy insurance is to protect you when you have a loss.
The insurance companyīs obligation is to try to put you back in the same place you were before the loss occurred.
NOT A PENNY MORE, NOT A PENNY LESS.
If you have a loss, you can report it several ways;
1.) You can call us at 888-727-0909 during normal business hours and we will start to work on the claim right away. If it is after hours, please call our office and leave a message on our claims hotline and we will be paged and get back to you as soon as possible.
2.) If you are insured with either Grange Mutual, Progressive, Hartford or SAFECO you can call their claims office direct and report the loss 24 hours per day
Grange Mutual 1-800-445-3030
SAFECO 1-888-557-5010
Progressive 1-800-274-4499
Hartford 1-800-448-5462
For more info on how to file a claim, check out our Services Page.
