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What You Should Know Before Becoming an Airbnb Host

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Becoming an Airbnb host is an exciting prospect, with a great financial upside. However, it is important to be aware that hosting others on your property comes with added risks. The visitors to your property are unknown to you, and you can’t be completely confident that they will treat your property with respect. You have invested in your property, adding all the features that attract visitors, including furniture, appliances, artwork, TVs, Wi-Fi systems, and a range of other features. Protecting your investment could not be more important.

Risks vs. Rewards

When planning to become an Airbnb host, consider what you are hoping to achieve. The added income you can gain must be balanced against the work you must perform to keep the property in good condition, and the time involved in being available to your visitors. Consider the time you devote to the property, along with the cost of maintenance against the income you earn.

Guest Quality

The guests you allow on your property are hopefully clean, friendly, and responsible. Unfortunately, some guests are a nightmare. They may invite others to visit and have a loud, raucous party, break valuables, start a fire, leave a faucet running that leads to a flood… and the list goes on. Even the best guests will not respect your property the way you do and may damage your property. Along with the cost of repair, the stress can be a little more than expected.

Protecting Against Losses with Insurance

The idea behind an Airbnb is added income, so protecting your property is of great concern. The types of insurance you have in place could save you from a financial disaster when something goes wrong. Your home insurance will not cover damage to the furniture, appliances, or technology you have in your Airbnb. Meet with a local insurance agent to discuss putting the right insurances in place, which could include business insurance, landlord insurance, liability insurance, add-ons to your homeowners insurance, as well as personal property insurance if you are a victim of theft or vandalism. Every insurance company offers different levels of protection.

Injuries on Your Property

A guest could be injured while staying in your property, and hold you liable for their medical bills, lost wages, and other losses. You need to ensure you are fully protected against this risk if you plan to offer an Airbnb to travelers to your region. Personal liability insurance provides protection in the event of an accident on your property, and the cost of defending against a lawsuit. Personal umbrella liability insurance adds an extra layer of protection. All these possibilities should be fully discussed with your insurance agent, and a plan put in place that is both affordable and covers a range of risks.

It’s All In the Fine Print

An insurance policy is a legal document, with pages of fine print. Few people read these policies or understand fully what is and isn’t covered. With assistance from an insurance agent, your choice of policies is much safer – far better than clicking a button on a website that offers fast, cheap coverage that may do nothing for you when you most need help.

Review Your Policy After These Major Life Changes

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If you have life insurance, you are in good shape. However, when major life changes occur, it is time to review your policy and update it to suit your new situation.

When to Review Your Life Insurance?

Several life events will significantly change your life insurance needs. These include:

    • Getting married: Once you are married, your lives are merged into one, sharing finances and personal possessions. Your spouse should be named as beneficiary of your life insurance policy, and the amount of coverage should reflect the purchases you have made, such as a mortgage or other bills that will need to be paid should you die unexpectedly.
    • You had a baby: If you had a baby, you want to ensure your child has the best possible future, no matter what happens to you. The cost of raising a child can include the cost of health insurance, education, recreational activities, and for children with special needs, added costs. Ensure your life insurance coverage will pay for everything your child needs in the future.
    • A divorce: After a divorce, many people change the beneficiary of a life insurance policy from the former spouse to a parent, to children, or other individuals. You may want to increase your coverage as you no longer have the shared income a spouse may have provided to the family.
    • You opened a business: Opening your own business is exciting and rewarding, but what would happen if you passed away prematurely? A life insurance policy can be purchased by your business, with the benefits paid to the business to keep it healthy if you unexpectedly pass away.
    • You are buying a new home: The cost of a mortgage is generally the highest monthly bill. If you are purchasing a home, you want to ensure your life insurance policy has a large enough payout to cover paying off the property mortgage. This allows your spouse or partner to avoid losing the property.

Can I Have More Than One Life Insurance Policy?

To increase the amount of the benefits paid to your loved ones if you should suddenly pass away, you may choose to purchase a second or third policy. You can own one, two, or more policies, from the same company or from different companies. You may have a whole life policy and choose to add a term life policy to ensure your loved ones are safe from serious financial and tax trouble in the event of a sudden death. Insurance companies will set a limit on the amount, which is typically at about 20 to 30 times of your yearly earnings.

How Often Should I Review My Life Insurance?

Once you have purchased life insurance, you may not think about it, but simply pay the premiums as a regular monthly bill. You may not realize that you should have your policy reviewed once a year. You may be paying more than you need to and could purchase a policy at a lower premium with more coverage, or you may gain more financial stability by converting your policy to whole life, or it may be time to add another policy.

Take advantage of the support of a local agent to schedule a yearly review of your life insurance policy to ensure you have the coverage you need to protect the people you love.

Home Maintenance Checklist: Step by Step Guide to Prepare Your Home for the Fall

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Your home is likely one of your most valuable assets and keeping it in good condition matters. Before the rainy, colder fall weather rolls in, taking certain steps to prepare your home can protect your home from sustaining damage during the fall and winter months.

Clear out Gutters

Spend a few hours clearing any debris out of home gutters and downspouts. Check the brackets holding the gutters in place and replace those that may allow water to flow onto the structure. This will help you avoid the risk of water incursions, wood rot, ice buildups, and pooling water that could affect the foundation.

Inspect Windows and Doors

To keep your family warm during the winter months, remove summer window screens and store them, and check all window frames and doors for damage. Install weather stripping on doors and replace any damage to the caulking around your windows.

Heating System Check

Have your heating system checked by a professional, who will replace filters, look for any problems and repair them when necessary, and clean the ducts in your home. Your indoor air will be healthier, cleaner, and your system will function better with yearly maintenance – and help you avoid more costly repairs and a heating system that stops functioning when you need it most.

Plumbing Check

Disconnect hoses from outdoor faucets and shut the valves for your outdoor water system if possible. Examine any visible pipes for drips or leaks and have them repaired. Insulate pipes in areas of your home that are unheated.

Yard Check

Check any trees close to your home to ensure that your home is protected in a windstorm. Call a tree specialist to remove any aging or rotting branches.

Chimney and Fireplace Check

Have your chimney cleaned by a professional so your fireplace is safe for use during the cooler fall and winter months.

When Something Goes Wrong – Your Insurance Matters.

No one can predict every future event. Even with the best planning, things can go very wrong. Frozen pipes, falling trees, serious wind events, flooding, vandalism, theft, or other incidents can lead to very costly repairs, or can leave your home uninhabitable. The typical home insurance policies protect the home itself, not your belongings.

The Right Insurance Policies – For You.

Having the right insurances in place can protect your financial health and pay for unexpected damage to your home. Special types of affordable add-on insurances are available that provide protection that goes beyond what your home insurance policy covers.

To find out more about the personal insurance available to homeowners, speak with one of our local agents. We can evaluate your current policies and advise you of your options for add-ons that are extremely affordable but can be a lifesaver when the unexpected occurs.

How to Determine the Right Amount of Coverage Needed

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Life insurance – everyone needs it, but how much coverage do you need? Every individual has a unique situation and choosing the amount of coverage requires calculating specific factors. These include the financial obligations that would be left should you suddenly pass away, including:

  • Income replacement: Your loved ones can be left in a dangerous financial condition without the income you bring to the family. Income replacement should be calculated for the number of years it will need to be replaced to provide for your loved ones.
  • The cost of your mortgage: A home mortgage is typically one of the largest expenses for a family. Without life insurance, your loved ones may be forced to sell the family home.
  • The cost to pay off any debts that will remain at your death: Credit card debt, student loans, outstanding taxes, and other debts will not disappear when you pass away, and your life insurance should cover paying off these obligations, or your family may be forced to pay them off.
  • The cost of college for your child or children: One of the highest expenses for parents is the cost of sending a child to college. Calculate this amount when buying life insurance.

Calculating Your Coverage: The Process

To calculate your income, multiply your yearly income by 10 as a starting point. Many people may choose a longer period to replace the income you brought to provide for your family. Once you have calculated lost income, add in the balance of your home mortgage or mortgages on other properties. Now add the balance on your existing debts to the total, and finally, add the cost of sending a child through four years of college, along with the amount needed to pay for room and board during their education. You now have the basic grand total of the insurance coverage you need.

Buying Life Insurance

Many young families do not consider life insurance as a necessary expense, and this has led to many tragic situations. The family may be left in a very serious financial condition if you unexpectedly pass away. They have counted on your income to pay for food, housing, clothing, education, and other basic costs, which now disappears. Along with the devastation of losing a loved one, a sudden death may lead to very serious financial problems. For young families, life insurance is a must. Life insurance policies, when purchased by young, healthy people, are very affordable.

Term Life Insurance or Whole Life Insurance?

Term life insurance allows you to be covered at the lowest monthly cost but does not build up any equity. Many younger people buy term life initially, and then convert it to whole life insurance later when they are earning more. Whole life insurance creates an asset over time. It allows you to borrow from it in the future, and the coverage lasts a lifetime, but costs more than term life. If your whole life insurance matches your budget, it is always a better option. If not, buy a term life policy that can be converted to whole life when you are ready.

Need Life Insurance to Protect Your Family? Get Help.

We invite you to meet with our local insurance agent to help you find a policy that suits your budget and provides a death benefit that will protect your family should you pass away. The funds are paid out quickly and are not taxed – a very important benefit.

How Should I Budget for Business Insurance?

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Your business insurance should cover every possible risk for your operation. It may surprise you that as a basic calculation, the entire range of business insurances, including commercial liability, commercial property insurance, health insurance for employees, workers’ compensation, and other insurances should be budgeted at about 20 to 30 percent of expected gross sales. Smaller businesses can expect to budget far less.

Every industry, and every business is unique, and business insurance should be custom-tailored to suit the needs of the company.

Business Insurance Options

The type of business insurance you purchase will reflect the size of your activity, number of employees, your facilities, vehicles, and the value of all your business assets, along with the inherent risks in your industry. Smaller businesses can invest in a general business insurance policy. The right policy will cover a range of risks, including injuries to customers, vendors, or others, damage to another’s property, and pay the cost of defending against lawsuits, up to the policy limits. Larger operations will require a more comprehensive set of insurances, which could include:

  • General liability insurance: This insurance is usually ideal for small business owners, as it covers the cost of personal injury lawsuits, third-party property damage claims, lawsuits regarding defamation, copyright infringement, or false advertising.
  • Commercial property insurance: Your business assets are valuable, and must be protected against losses from theft, damage to inventory, equipment, or office furnishings.
  • Business interruption insurance: If your operation is shuttered due to storm damage, fire, or other incident, this insurance can help you avoid losing valuable employees and repairing the damage.
  • Data breach insurance: If a cyber incursion has stolen the private information of your customers, clients, patients, employees, or other, the costs involved can be astronomical. Many companies choose to invest in this insurance, as cyber crime is at an all-time high.
  • Commercial umbrella insurance: This insurance adds another layer of protection to your liability coverage.
  • Commercial auto insurance: If your business uses vehicles, commercial auto insurance can protect you should an employee be injured, cause an accident, or other incident.
  • Business owner’s policy: These policies are designed for small businesses, covering both property and liability insurance.
  • Employment practices liability insurance: This insurance protects businesses from lawsuits associated with the treatment of current or former employees, such as claims for discrimination, wrongful terminal, sexual harassment, etc.
  • Product liability insurance: If your business sells a product, this insurance protects against losses should your business be accused of a product that caused injury or damage to a consumer, including in manufacturing, design, marketing, and consumer use.

 

How to Choose the Right Business Insurances

When choosing your business insurances, the reputation of the insurance company is important. A great online offer may not be the best way to find a provider you can trust to come through when you need it. It is always advised that you work with an insurance agent who understands what you do and can advise you about the coverages you need. A professional can search for the most affordable business insurance policies on the market that offer the best coverage. Connect with our local agent for a customized approach to business insurance.

How A Traffic Ticket Can Affect Your Life Insurance

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No one is perfect, and most people get a traffic ticket at least one in their lifetimes. But the truth is, your driving record can significantly affect your life insurance. If you have a current life insurance policy and you get a speeding ticket, it will not affect your rates. On the other hand, if you are applying for a new policy or additional coverage, you can be sure that your driving record is one of the factors the insurance company will consider.

How Do Life Insurance Companies Look At Your Driving Record?

Life insurance underwriters are thinking in terms of numbers and percentages. They are tying to determine the odds that you will have an early death. This is something they want to avoid, as it means paying out death benefits before the company can collect a substantial amount in premiums. For this reason, insurers charge higher rates when they determine there is more risk involved.

In reviewing your driving records, life insurance companies will look at the following:

  • DUI on your record: This factor should be obvious. The National Highway Traffic Safety Administration (NHTSA) reports that 10,874 people died in drunk driving crashes in the U.S. in 2017, the most recent year for which statistics are available. This amounts to one alcohol related traffic death every 48 minutes. A recent DUI or multiple DUIs will be more problematic for life insurance purposes.
  • License revocation or suspension: This is considered high risk. The reasoning is that your license was probably taken away for a good reason. In some cases, a license is suspended simply because you forgot to pay a fine or have a health condition that has nothing to do with your driving record. If this is the case, our experienced agent can work with you to try to minimize the impact of the suspension.
  • Reckless driving: This term means driving in a way that shows irreverence or indifference to the safety and property of others. In some states, certain driving behaviors are considered reckless, including racing, swerving, passing on blind curves, and high mph speeding. This type of violation adds considerable risk to your profile and increases your life insurance premiums.
  • Moving violations: To life insurance companies, moving violations show a disregard for safety and increase your risk profile. These violations include speeding, texting while driving, running red lights or stop signs, tailgating, improper lane changes, and failing to wear a seat belt.
  • Parking tickets: The good news is that parking tickets do not affect your life insurance rates. Insurance companies ignore them.

What Is An MVR & How Does It Affect Your Life Insurance Rates?

“MVR” is an abbreviation for motor vehicle report. It is the report on your driving record maintained by the state and submitted to insurance carriers upon request. You authorize this as part of your application for life insurance.

To qualify for the best rate class (Preferred Plus) you must have no major infractions in your MVR for the past five years. Major infractions include DUI, reckless driving, and license suspension or revocation. Too many moving violations can also increase your life insurance premiums. Most insurers will not care about one or two speeding tickets, but if you have more than two violations in the past three years, your rates will go up. If you have more than four in the past three years, your application is likely to be declined.

How Small Businesses Can Avoid Insurance Mistakes

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It takes hard work, dedication, creativity, and tenacity to get a small business up and running successfully, so it makes sense to have the right insurance coverage in place to protect it. In fact, purchasing business insurance may be one of the most important decisions you make. The right coverage can help prevent unforeseen events from ruining all you have worked so hard to build.

Small business owners often make mistakes in the area of insurance. To help you avoid them, some common insurance mistakes business owners make are listed below:

  • Thinking that two insurance agents are better than one: This is simply not so. When you use more than one agent, you are setting your business up for lost discounts (higher premiums) and potential gaps in coverage. It is better to use one agent for all your business insurance needs.
  • Buying unneeded insurance policies: This is one of the most common mistakes of small business owners – paying for coverage they don’t need. Our insurance agency can help you determine the coverage you need and the most economical way to obtain it.
  • Only buying general liability insurance: This could be a serious mistake. While general liability insurance can protect you from many business risks, it does not cover everything. Work with our knowledgeable insurance agent to evaluate your risks and determine what additional coverage you need.
  • Not buying loss of income coverage: Also known as business interruption insurance, this covers loss of business income in the event of a disaster. Property insurance only covers physical damage should a disaster require you to shutter your operations. Loss-of-income coverage can be added as a rider to your business owner’s policy or business property insurance policy.
  • Not keeping policies updated: Successful small businesses are continually expanding and evolving. It is essential to review with your agent and update business insurance policies accordingly at least once annually, if not more frequently.
  • Paying too much for business insurance: Always shop the coverage offered to find the best rates available. Our agent will work hard to help ensure that you have the right business insurance coverage for the lowest available premiums.

It is important to be thorough in setting up business insurance policies and keeping them updated. Work with only one agent to avoid gaps in coverage and to benefit from multiple-policy discounts. Regularly, at least once a year, meet with your insurance agent and review your business policies carefully.

If your business is expanding, you may be purchasing equipment, setting up new facilities, hiring employees, or adding to your product or service lines. To protect all you have invested in your business, it is crucial for your insurance coverage to keep pace with the changes. Our agency has the knowledge, experience, and affiliations to advise you on the coverage you need, shop the policies for the best rates, and help you make the right business insurance decisions.

Does Your Auto Insurance Cover Air Conditioning?

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Driving a car with no A/C can be miserable during the hot summer months, particularly during a heatwave. As important as it is to your comfort and that of your passengers, automotive air conditioning can be expensive to repair or replace when it breaks down or malfunctions.

In many cases, when the A/C malfunctions it is considered normal wear-and-tear and not covered by auto insurance policies. However, there are certain situations in which insurance coverage may be available for air conditioning damage.

Mechanical Breakdown Insurance

This coverage option is available when you buy a new car. It works in a similar manner as a warranty or extended warranty, although it covers repairs outside the scope of a warranty. The air conditioning system is a mechanical component of the vehicle. Although wear-and-tear in the air conditioning system is not covered by mechanical breakdown insurance, it is likely that manufacturer defects would be covered.

Comprehensive Coverage for A/C Damage

Comprehensive coverage applies to losses other than those incurred in an accident or collision. It covers situations such as theft, vandalism, fire, and floods. If your air conditioning system has been damaged or destroyed as a result of a fire or another event covered under your comprehensive auto insurance, repairs to your A/C may well be covered.

Coverage for Air Conditioning Damage in an Accident

Auto accidents can happen in any number of ways and cause a wide variety of damage to the vehicles involved. Like other mechanical components of an automobile, the air conditioning system can be severely damaged in a collision.

When A/C damage is caused by an accident, it may be possible to file a claim to cover the cost of repairs. The types of auto insurance that cover vehicle damage resulting from an accident include collision, liability, and uninsured/underinsured motorist coverage.

Liability claims are filed against the driver who caused the accident. If collision or uninsured/underinsured motorist coverage is used, you will file a claim with your own insurance company, in which case there is typically a deductible. If the accident has caused significant damage to your auto A/C exceeding the deductible, it may be well worth filing a claim.

Review Auto Insurance Coverage with Your Insurance Agent

We carry auto insurance to protect ourselves against liability, injuries, and property damage to our vehicles. To ensure you have the adequate coverage for all possible types of losses, it is important to discuss your auto insurance policy with an experienced agent.

Our local agency will be happy to review your auto insurance policy with you. We can help ensure that you have the coverage and policy limits to provide the comprehensive protection you need.

Many different factors affect auto insurance premiums, including age, gender, profession, marital status, location, vehicle age and size, and your driving record. Our agent can help you find the auto insurance coverage you need at the lowest available rates.

How To Control Workers’ Compensation Costs

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Workers’ compensation has become a major contributing factor to the cost of business insurance. Premiums are high for many types of businesses, and the additional costs associated with employee injuries can be staggering.

However, business owners are not as helpless as they may feel in controlling the cost of workers’ compensation insurance. Our knowledgeable agency is available to assist with loss control in several different ways. The following strategies can effectively help you keep your workers’ compensation costs to a minimum.

Implement a Formal Safety Program

A formal safety program will qualify your company for a discount on workers’ compensation premiums. It will also help create a safety culture within your organization. A safety culture promotes teamwork, rewards results, and increases awareness of safety hazards. If you implement a Drug Free Workplace program, it can provide an additional premium credit.

Establish a Return-to-Work Program

When a work-related injury causes an employee to miss work, it impacts the employer with both direct and indirect costs. Direct costs include medical and indemnity benefits, premium increases, and wages or overtime for replacement workers. Indirect costs involve time spent on crisis management, retraining replacements, decreased production, and lower morale.

A formal return-to-work program makes it possible for the employer to reduce workers’ compensation benefits payments and gain the production of injured employees, even when they have medical restrictions. Employers that use a return-to-work program may also benefit with significant additional credit on the value of a claim.

Use Medical Providers That Are In Network

Using in-network medical providers can result in significant savings on the cost of medical treatment over out-of-network providers. Keep a directory, by specialty, of all workers’ compensation providers and direct treatment to providers who help you control costs.

Complete the Annual Workers’ Compensation Experience Mod Audit

A large percentage of workers’ compensation Experience Mod Rates (EMR) contain errors. Ensuring accuracy of the EMR is critical, as it has a direct impact on your workers’ compensation insurance premiums. Inaccuracies are a common occurrence in class codes, claim status, claim codes, claim values, and payroll.

Choose the Right Rating Plan

There are many workers’ compensation plans, many of which reward employers for minimizing claims and maintaining a safety culture. Participating in risk sharing plans, such as Deductible and Retrospective, can provide the best payoff for good performance. These plans often include cash flow incentives in premium and claims payments.

Be Sure to Get Value for Your Premium Commission

Agent commissions on workers’ compensation policies can range from 5% to 15% of the premiums. Commensurate with the amount of commission, insurance agents can provide a variety of services in addition to placing the policy, including safety and loss control services, claims reviews, Experience Mod Audits, and statistical analysis of claims. When you work with an experienced agency, you will never have to pay a third party to provide what is covered by your premium commission.

Save Money During The Hot Summer Months

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We all want to save money on home expenses and have more to spend on the finer things in life. When the seasons change, so do the money-saving strategies. The following are some tips on how to save money during the hot summer months.

Replace AC Filters Regularly

Filters for air conditioning units are inexpensive, and it makes sense to replace them frequently. Dirty air filters restrict airflow and decrease the efficiency of your AC. This translates into more AC running time and higher cooling costs.

Turn Off the AC in the Cooler Hours

When temperatures are cooler in the evening and early morning, turn off the air conditioning and open some windows. Use a fan to pull warmer air out of the house and cooler air in.

Dry Your Laundry on a Line Outside

If you have the option to put up a clothes line outside, hang your clothes and bedding instead of using the dryer. This prevents you from adding extra heat to the house from the dryer and saves on your electric or gas bill to run the dryer. It also gives your clothes, towels, and bedding a delightful, fresh smell when they are dried by sun and summer breezes.

Get Outdoors in the Long Summer Evenings

Extended daylight hours in the summertime give you more time to enjoy outdoor activities. Whether you are out playing softball or tennis or simply walking around the neighborhood, you are saving on your electric bill if you are not indoors using the lights and running electronics. As a bonus, the exercise is good for your health and state of mind.

Cook Outside in Hot Weather

Using the oven or the range can heat up your house and make the AC work harder. The hot summer months are a great time to use the barbecue grill outside. This has the added advantage of turning summer meals into an outdoor picnic or party. Millions of Americans grill outdoors with no mishaps, but accidents do happen occasionally. Most grill fires on residential properties are caused by malfunctioning gas grills. In the rare occurrence of a grill fire, homeowners insurance can provide protection against damage to the house, personal possessions, and insured structures on the property, as well as injuries to guests as a result of the fire. Our agency can help you save money on homeowners insurance by finding the coverage you need at the best available rates. Many different factors can affect the cost of homeowners insurance, including:

  • Amount of coverage
  • Location
  • Neighborhood crime
  • Condition, materials, and age of home
  • Fire safeguards
  • Bundling with other policies, such as auto insurance

Shop for Summer Projects at the End of the Season

The best time to buy tools, outdoor plants, and summer project materials is at the end of the season. These items tend to go on sale when the summer is winding down and people are spending less time outdoors.