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4 Ways to Protect Your Rental Property

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Renting out a property is a great way to generate passive income, but there are always some risks involved. Those risks include liability for injuries sustained on the property, physical damage to the property itself, and non-paying tenants. Taking the following steps can help minimize your risk as a landlord.

Purchase Landlord Insurance

This is essential protection to cover common occurrences such as fire, lightning, wind, or hail, which can result in property damage. This insurance covers the building and other structures, such as fences or sheds, on the rental property. In addition, it covers personal property used to service the rental property, such as a lawnmower or a snowblower. Landlord insurance can also provide liability protection in case a tenant or visitor is injured on the property. It can help cover the injured party’s medical bills, plus your legal expenses and other costs in case of a lawsuit.

Buy an Umbrella Policy

Umbrella insurance can complement your landlord insurance to provide a higher level of protection. This makes sense for a property with a pool or trampoline, or for luxury properties with a risk of expensive damages and lawsuits. An umbrella policy can provide you with additional liability protection against business and owner liability and tenant, guest, or vendor injuries, as well as libel and slander.

Have a Home Warranty Plan in Place

A home warranty plan can help protect the contents of your rental property. This type of plan covers a variety of appliances and home systems in case of a breakdown. It could save you a huge repair or replacement bill in the event of equipment failure. Another advantage is that companies providing home warranties serve as intermediaries between property owners and contractors. This can save you time and help ensure the problem gets handled quickly.

Check Out Your Tenants Carefully

A basic mistake to avoid as a landlord is renting to bad tenants. The reliability of the people you rent to and how they treat your property are important factors to consider. Running background checks on applicants can help make this possible. You can pay a specialized service to do it for you or run the background check yourself. This may involve:

  • Using Equifax to learn the applicant’s credit score
  • Contacting the employer to get an idea of how reliable the applicant’s income is
  • Searching criminal conviction databases for your prospective tenant’s name

In addition to running a background check before you rent to a tenant, it is important to conduct regular inspections to ensure your rental property is in good condition. Occasional surprise inspections can give you a better idea of how your tenants behave. Make sure these inspections are written into the terms of your rental contract, including what constitutes an inspection.

When you rent out the property, you are operating a business, and it should be treated as such. Among other things, this means you need the right insurance coverage to protect your business. Our knowledgeable agent will be happy to review your landlord insurance policies with you.

Why Life Insurance Is Still Important If You’re Single

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Many single people believe they don’t need life insurance. With no one relying on their income to act as beneficiaries, why should they pay the monthly premiums? The truth is life insurance is not just for married people with children. It can have many benefits for single people as well.

When Can Single People Benefit from Life Insurance?

Life insurance can benefit single individuals in a number of different scenarios, including the following:

  • Building wealth: Life insurance is not only about providing for dependents after your death. You can use a permanent life insurance policy to build wealth while you are still living. This type of policy has a cash value that grows every month when you pay your premiums. You can access that money later on.
  • Protection in case of illness or injury: When you are single, you are on your own, without a spouse’s income to fall back on. Permanent life insurance can be accessed to provide protection in case of an unexpected illness or injury. This is particularly important later in life when the chances of contracting a critical illness or needing long-term care are greater.
  • Flexible savings for the future: Savings options are available with permanent life insurance. A variable universal life (VUL) policy has a built-in savings component that allows you to invest the cash value. An indexed universal life (IUL) policy allows you to decide how much cash value to assign to either a fixed account or an equity-indexed account. You can access these savings tax-free, either right away or after a 10-year vesting period.
  • Covering your debts: Many single Americans have student loans as high as six figures. Private student loans are not forgiven if you pass away. You may have car or home loans that were co-signed by family members. A life insurance policy can help you ensure that your loved ones are not saddled with your debts if something should happen to you.
  • Protecting your business: Many people are in business these days, and many business owners have partners. Life insurance may be required to get a business loan. It can also help protect your business and your partners if something should happen to you. Life insurance death benefits could help your business carry on.
  • Preparing for the future: You may not be single forever. The younger you are when you purchase a life insurance policy, the lower the cost is likely to be. If you buy a permanent life insurance policy now with a cash value that grows, you will be in a more favorable position if you should decide to start a family in the future then you would be starting from scratch when your children were born.

Term life insurance is less expensive, but permanent life insurance gives you more value for your money. With all the life insurance options available today, it may be difficult to determine which type of policy is best for you. Our friendly agents can review the options with you and help you find the best rates on a life insurance policy that suits your long-term goals.

What Is Cargo Insurance and Why Is It Important?

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Transporting goods carries risks. Any number of things can go wrong with goods in transit. That is what makes cargo insurance so important. It can help protect the value of your goods against losses in transit by sea, air, or rail.

Cargo insurance provides protection against financial loss for cargo that is lost or damaged due to a covered event. These typically include natural disasters, piracy, acts of war, vehicle accidents, cargo abandonment, and customs rejection. Cargo insurance is not always automatically included for all shipped goods. Shippers and consignees can purchase policies from a variety of sources, including our experienced agents.

What Are the Benefits of Cargo Insurance?

Like car insurance, cargo insurance protects you in case of the unexpected. Although it is not required, it is recommended to protect your goods from exposure to risk. Even when you can prove that a carrier is liable for damages, the limits of its liability may be extremely low. Without the right insurance coverage, you could lose a large portion of the value of your cargo. This type of insurance can help protect your business cash flow from unforeseen stoppages, allowing for profits to be generated.

What Are the Main Types of Cargo Insurance?

There are mainly two categories of cargo insurance:

  • Land cargo insurance: This type of insurance covers cargo carried by trucks, utility vehicles, and other types of land transportation. It is typically used for domestic cargo. Land cargo insurance covers collision damage, theft, and other risks involved in shipping freight by land.
  • Marine cargo insurance: This insurance is primarily for international shipping. It covers cargo shipped through the ocean and air freight. Coverage includes damage from weather conditions, piracy, loading or unloading, and other risks.

What Types of Marine Cargo Insurance Policies Are Available?

Different types of marine cargo insurance policies are available, depending on your shipping needs:

Open coverage policies cover freight for a specific period of time and may include multiple shipments under a single policy. This type of policy may be renewable after a shipment is delivered, or permanent, allowing for unlimited shipments within the term of the policy.

Single coverage policies cover cargo on a per shipment basis. This type of coverage may be suitable if you ship infrequently.

Contingency cargo insurance covers the seller in cases where the customer is responsible for insurance but refuses to accept goods that were damaged in transit.

What Is Not Covered by Cargo Insurance?

Cargo insurance will not cover risks over which the shipper has significant control. Generally, cargo insurance policies exclude:

  • Damage caused by improper packaging
  • Damage due to faulty products
  • Specific types of freight, including hazardous materials, certain electronic products, and valuable or fragile items
  • Freight moved by other modes of transportation than ship, plane, or truck

If your business ships freight, you need cargo insurance for protection against potential loss. Our knowledgeable agents can help you find the right cargo insurance coverage for your business circumstances at the best available rates.

Which Disasters Are Covered by Home Insurance?

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Natural disasters can wreak havoc on a home – or destroy it entirely. Homeowner’s insurance provides financial protection against covered damages to your home and personal belongings, and liability for injuries to others in certain circumstances. No home insurance policy covers all natural disasters. It is important to understand the type of policy you have and which disasters it covers.

What Does Standard Homeowners Insurance Cover?

Standard home insurance policies cover a range of disasters:

HO-1

The most basic type of homeowners insurance is an HO-1 policy, which limits coverage to the home itself, appliances, and attached structures, for damage caused by:

  • Fire
  • Lightning
  • Windstorms and hail
  • Aircraft or vehicles
  • Smoke
  • Vandalism
  • Theft
  • Volcanic eruptions

HO-2

HO-2 policies, known as broad form homeowners insurance, cover personal belongings, as well as everything covered by HO-1 policies. In addition to the perils listed above, HO-2 policies typically cover:

  • Falling objects
  • Weight of snow, ice, or sleet
  • Accidental discharge or overflow of water or steam from plumbing, heating, air conditioning, or fire-protection sprinkler systems, or household appliances
  • Freezing of plumbing, heating, air conditioning, household appliances, or automatic fire-protection sprinkler systems
  • Sudden tearing apart, cracking, bulging, or burning of steam or hot water heating systems, or air conditioning or automatic fire protection systems
  • Sudden, accidental damage from artificially generated electrical current

HO-3

HO-3 is the most standard type of homeowners insurance. This type of policy covers everything covered by an HO-2 policy, plus additional living expenses and medical payments, and some liability coverage. These are usually open peril policies. This means the structure of the home is covered for any type of damage, except exclusions named in the policy. Typically, personal belongings are only covered for named perils with an HO-3 policy.

What Disasters Are Not Covered by Home Insurance?

A few natural disasters are not covered by homeowners insurance, including the following:

  • Floods: All types of homeowners insurance exclude coverage for floods. If you live in a flood zone, you can purchase separate flood insurance through an agent, or the National Flood Insurance Program (NFIP). The cost of flood insurance varies from state to state and according to how high the flood risk is based on the location of your home.
  • Earthquakes: Like floods, earthquakes are not covered under homeowners insurance policies. However, most insurers offer an earthquake endorsement you can add to your policy for an additional cost. Homes in nearly half the states in the U.S. are at risk for earthquake damage.
  • Tsunamis: These giant waves are typically caused by underwater volcanic eruptions or earthquakes. Although tsunamis are not a covered peril under homeowners policies, flood insurance can cover the damage they cause.
  • Nuclear event: A nuclear event or explosion could damage your home. Nuclear plants are required to carry liability coverage to protect the public in case of property damage or injury.

Your home is one of your largest financial investments. It is important to have the right homeowners insurance to protect that investment. Our friendly agent will be happy to help ensure you have the coverage you need.

Common Life Insurance Riders to Consider

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Life insurance can play a vital role in financial planning for your family’s future. It is primarily designed to provide for your loved ones when you are gone. You can also add supplemental benefits with riders – amendments to your life insurance policy. Riders make it possible to opt in for benefits not typically included in basic life insurance policies and to modify your policy to better suit your needs. The following are some popular riders, available with some life insurance policies.

  • Accidental death benefit: In case the insured dies in an accident, this rider secures an additional benefit amount. It is also known as double indemnity. It is important to note the insurance company’s specific definition of accidental death. Only accidents that fit the definition will be covered by accidental death benefits.
  • Accelerated death benefit: This rider is triggered by an event such as a terminal illness. It can pay out a portion of your death benefits before death to help you cover expenses such as long-term care. Accelerated death benefits can reduce the death benefit amount.
  • Waiver of premium: With this rider, your life insurance policy will be kept in place should you become disabled before a specified age and therefore unable to continue paying your premiums. A waiver of premium rider can pay up to a certain amount, allowing policy benefits to be maintained.
  • Guaranteed Insurability Rider: This rider allows you to buy additional coverage at specific time intervals up to a certain age (typically 40) without evidence of insurability. It gives you an opportunity to obtain extra coverage regardless of health or other factors, based only on your age. Guaranteed insurability riders may also contain triggers for life events, such as marriage or the birth of a child, at which times a policyholder may purchase more coverage.
  • Spouse and children riders: These riders provide term life insurance coverage on a spouse or children. They contain a conversion provision that allows a spouse or children to convert to a permanent life insurance policy without providing proof of insurability.
  • Term rider: If you need additional coverage for a limited time period, during your working career, for example, a term rider can be attached to an existing policy to adjust the level of coverage for a specific term.
  • Automatic premium loan provision rider: If you fail to make your premium payment by the end of the grace period, this rider will automatically take a loan from the cash value of your policy and use it to pay your premium. This can be very useful for anyone who may forget to make a payment.
  • Return of premium rider: With this rider, you can get your premiums back at the end of a term life insurance policy. This money is considered a refund and it is tax-free. The downside of a return of a premium rider is that it makes life insurance noticeably more expensive.

Riders allow you to tailor life insurance policies to suit your needs. If you are shopping for life insurance, our experienced agents can help.

Do I Need Business Insurance to Rent an Office Space?

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A business insurance policy is a must if you are renting an office space. It is your landlord’s responsibility to carry insurance for the physical building itself. Business insurance can help protect your business property and provide liability or financial protection in case of certain mishaps or events.

Why Do You Need Business Insurance for a Rented Office Space?

There are several important reasons to have a business insurance policy when you are renting office space:

  • The landlord may require it: Many commercial landlords require proof of insurance coverage – a certificate of liability — before they will rent to or enter into a lease with a tenant. Generally, commercial property owners require you to have commercial general liability insurance to cover potential damage to the building or the property of other tenants. Typically, this type of policy will also cover theft committed by people you invite into the building.
  • Protection for your belongings: The landlord’s insurance coverage protects the physical structure, but not for your business property located within a rented office space. Property coverage included in your business insurance policy can protect you against accidental damage or theft of business valuables, such as computers, equipment, furniture, inventory, and files.
  • Additional responsibilities under the lease: Read your lease carefully to find out what types of building damage you may be responsible for. Some landlords may require tenants to be responsible for modifications they have made to the interior of the space, building glass, and even air conditioning or heating units.
  • Accidental damage: If you or an employee accidentally starts a fire, it could do severe damage, not only to your business property but to other businesses and the building itself. The property owner and the other businesses could sue you for damages. They could also sue you for business interruption caused by the fire.
  • Personal injury: A client or someone visiting your office could slip or trip and fall, or otherwise sustain an injury on your business premises. The injured party may sue you for damages. Liability coverage can help with your legal fees and any settlement or award. If the accident or injury occurred in a shared area of the building, the property owner may be responsible. If it occurred within your office space, your business may be responsible for the injured person’s medical bills and other damages.
  • Business interruption: This type of insurance provides financial protection in case an incident prevents your business from operating as usual. For example, a fire in the building could force you to relocate, which could lead to lost business and profits. Business interruption insurance can help cover the losses.

Insurance protection for a business is more important than ever today. If you are renting an office space, you will need insurance coverage to protect your business property and to protect your business against liability and financial losses. Speak with our knowledgeable agent. We can advise you on the types of coverage you need and help you find the best available rates.

How to Keep Your Backyard Campfires Safe

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There is nothing like a campfire to create a cozy atmosphere when friends and family get together under the stars. A fire draws the gaze and lets you keep warm while socializing in the cool of the evening. A campfire can even be used to cook a meal if you have the right type of fire and accessories. But where there is fire, there is extreme heat. It is important to take precautions to keep everyone safe around a backyard campfire.

Risk of Injury With Backyard Fire Pits

The popularity of backyard fire pits is on the rise, and so is the risk of injury, particularly for children. Fire pits and outdoor heaters injured 5,300 or more people who were treated in emergency rooms in a recent year, as reported by NBC News. Approximately 25% of the people injured were under the age of five. Many burn injuries occur the day after a backyard campfire and are caused by still hot coals.

Safety Tips for Backyard Campfires

Backyard campfires are fun, but they come with a risk of injury. The following tips can help minimize the risk for your family and guests:

  • Check with local authorities to make sure burning is allowed: Rules can change depending on wind, lack of precipitation, and other factors.
  • Build your fire in a safe area: It should be in an enclosed area, such as a fire pit or bowl, where the fire can be contained. The spot you choose for your campfire should be in the open, away from structures and trees. Make sure no tree branches are overhanging the fire, as flying sparks could set a tree on fire.
  • Clear the fire pit area: Clean out any fallen leaves or debris before you start a campfire. Remove old ashes from the pit, and make sure you have fire extinguishing supplies nearby.
  • Use only the right fuel for your fire pit: If it is designed to burn wood, use seasoned, dry wood, which burns hotter and cleaner. Do not burn old pieces of furniture or anything painted, stained, or chemically treated. Start small and build your fire up gradually. Avoid using lighter fluid to start a fire, as this can lead to dangerous flare-ups.
  • Do not take your eyes off young children while a fire is burning: Instruct them to stay 10 feet back from the fire and remind them of all the safety rules. It takes only a few seconds for a serious accident to occur.
  • Extinguish the fire properly when the night is over: Check manufacturer guidelines and ensure you have all the necessary tools. All embers should be out and should not be emanating heat. A campfire that is still smoldering has the potential to spark and start a fire on your property. Children should be supervised until the temperature returns to normal.

It is important to have homeowners insurance in case someone is injured through a campfire or otherwise on your property. Our knowledgeable agent can help you find a policy that suits your needs at the best available rates.

New Year, New Life Insurance Review

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It is a good policy to review your life insurance every year. If you have paid your premiums on time, the policy will still be there, most likely without any material changes since you purchased it. However, if major changes have occurred in your life, your life insurance policy may need adjustments or no longer suit your needs.

Why Review Life Insurance Annually?

Conducting a thorough review of your life insurance every year helps you keep your policies up to date and gives you an opportunity to add additional coverage if needed. The following are some important reasons for a life insurance annual review.

Beneficiary Checkup

Your beneficiaries are the people who will receive the death benefits from your life insurance. If major changes have occurred in your life during the past year, such as marriage, divorce, or the birth of a child, you may want to change how your life insurance proceeds will be distributed. For example, if you named a sibling as your beneficiary, then later got married and neglected to change the beneficiary, your sibling would receive the life insurance benefits in the event of your death instead of your spouse.

Health Changes for the Better

If you have quit smoking and are now nicotine-free, your smoker’s rates can be changed to non-smoker rates in most cases. This can result in substantially lower premiums. If you have lost a significant amount of weight and kept it off for at least a year, you may also qualify for lower premiums. In some cases, it may be to your advantage to purchase a new policy after significant health changes for the better.

Health Changes for the Worse

If your health has deteriorated, the life insurance company cannot raise the premiums on an existing policy. If you have term life, however, it may be a good time to look at the policy’s conversion feature which allows you to convert a term policy to a whole life or universal life permanent policy without changing your health class. Term life insurance expires after a certain period of time. Major health issues could make purchasing a new policy more expensive.

Growing Family

The main purpose of life insurance is to provide for the loved ones who depend on you in case of your death. When children are born, the number of people you want to provide for increases. You may want to replace your existing life insurance policy with a new policy that has a higher benefit amount or supplement your current life insurance with an additional new policy.

Income Changes

If your income has increased significantly, you may want to buy more life insurance to ensure the death benefits are sufficient to replace your income for a certain period of time. For the same reason, if your income has decreased significantly and will probably not recover, you may want to decrease the coverage on your current policy.

Our agent will be happy to review your life insurance policies with you and assist you in making any changes needed.

4 Winter Risks and How to Protect Your Business From Them

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Consumer spending increases for the holidays and business picks up during the winter months. But winter weather also brings certain risks for businesses. The following are some top winter risks and how to protect your business from them.

Slip or Trip and Fall Accidents

Icy walkways and slippery floors from melting snow can lead to slip or trip and fall accidents on your business premises. Customers, employees, and other visitors can suffer serious injuries, including fractured bones and back and head trauma. To help prevent slip or trip and fall accidents:

  • Promptly remove snow from parking lots and walkways. If you outsource snow removal, make sure the company is reliable and can provide proof of liability insurance.
  • Keep plenty of ice melt or sand on hand for use on sidewalks and steps.
  • Make any necessary repairs to parking lot potholes, handrails, and outdoor steps.
  • Placemats with non-skid backing that absorb water inside doorways to keep ice and snow from being tracked indoors.
  • Inspect floors regularly and promptly mop up any puddles caused by melting snow. Use “wet floor” signs as needed.

Frozen Pipes and Water Damage

When temperatures drop below freezing, the water in your pipes can freeze, causing them to burst. Water from burst pipes can cause hundreds of thousands of dollars in structural damage. To help prevent this type of damage:

  • Maintain a consistent temperature in the building. Set the thermostat to keep the temperature even when the business is closed, for example in the evenings, on weekends, or during holidays. Consider installing a system to alert you if the temperature falls below a certain point.
  • Stop pressure from building up in pipes. If the forecast predicts a winter storm or extreme cold, leave faucets in the building slightly open to a steady drip to help prevent freezing.
  • Install a backup power source, such as a generator, to warm your building in case of a winter storm power outage.
  • Seal the building. Hire a contractor to repair or caulk cracks or holes in the building exterior. Cover pipes at risk of freezing and ensure your building is properly insulated.

Roof Collapse From Heavy Snow Buildup

An accumulation of heavy snow can cause a building roof to cave in. Too much snow on the roof can exert tremendous pressure on the structure. To help prevent snow damage to your building, do not let more than two feet of snow accumulate. Hire a licensed, bonded, insured contractor to remove it from your roof.

Business Interruption from Winter Storms

A major winter storm could shut down your business for days or weeks. Snowstorms can cause power outages and prevent you and your employees from showing up for work. If your employees can work from home, it may be wise to have a telecommuting policy in place. It is also important to have business interruption insurance coverage.

For protection against winter risks, your business may need several types of insurance coverage, including general liability, workers’ compensation, property, and business interruption policies. Our agent can help you find the best rates for the insurance protection your business needs.

Comprehensive vs. Collision Auto Insurance

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Comprehensive and collision are two different types of auto insurance coverage. You may want to bundle them together for added protection. Comprehensive may cover situations that collision does not, and vice versa.

What Is Comprehensive Auto Insurance?

Comprehensive pays for damage to your vehicle caused by non-collision-related covered events. These events may include vandalism, theft, hail, or fire. Comprehensive may also cover a collision with an animal, such as a deer, or damage caused by an object, such as a tree or a rock, falling on your car.

What Does Collision Cover?

Collision covers damage to your automobile in case of a covered accident involving a crash with another vehicle. Depending on the extent of the damage, this insurance may cover repairs or full replacement of your vehicle. Collision covers damage to your vehicle if you hit an object, such as a tree. It can also cover damage caused by a rollover accident or hitting a pothole in the road.

Why Buy Collison and Comprehensive Auto Insurance?

We all need liability auto insurance. Every state in the U.S. has mandatory minimum liability auto insurance laws. This coverage, which is considered part of the social responsibility of driving, pays for damage you cause to others in case of a crash. Comprehensive and collision coverage is designed to do what liability coverage will not do – pay for damage to or loss of your car. If you have liability, collision and comprehensive insurance, you have what is considered full coverage on your vehicle.

Do You Need Both Comprehensive and Collision Coverage?

You may need both collision and comprehensive coverage if:

  • Your car is newer or of higher value: This means you have more to protect and may not want to risk paying out of pocket for repairs or replacement.
  • You commute or frequently put a lot of miles on your vehicle: The more you drive, the greater the risk of an accident.
  • You live in an area where damage is more likely to occur: If the area where you live or frequently drive has wildlife, such as deer or elk, a greater possibility of falling tree branches, or a greater likelihood of other types of damage, added protection may be a wise choice.

How Do Collision and Comprehensive Insurance Work?

Comprehensive and collision insurance are often sold together as a package. Both types of coverage typically come with a deductible. Common deductible amounts are $250, $500, or $1,000. If you make a claim on your collision or comprehensive coverage, the payout amount will be reduced by the amount of your deductible. Some insurance companies reward policyholders for safe driving with diminishing deductibles that go down over time if certain types of claims are not made against the policy.

The types and amount of auto insurance coverage you need can depend on several factors, including the age and value of your automobile, how much you drive and where, and the area where you live. Our friendly agent can advise you on the right types of car insurance to provide the protection you need.