When people buy insurance, they often feel they know enough about their policy, what’s insured, and its risk. However, like a wallflower at a high school dance, what’s excluded in an insurance policy is barely given attention. You may not want a dance with those exclusions, but you should know what they are. Once you do that, you’ll find yourself asking a lot of questions.
What if your grandmother’s antique sewing machine in mint condition is ruined in a flood? Will your homeowner’s insurance pay the full amount of the sewing machine’s prior value? If your car is stolen and you owe $5K on it, will your insurance cover the remainder of the loan? Such questions, along with other times you’re at risk for losses or damages — whether yours or another’s — have answers in the form of important insurance policies you didn’t even know you needed. Here’s a list of them:
1. Personal Electronic Equipment Insurance
Even 10 years ago, there’s a good chance the average household didn’t have many personal electronics. In a scan of just your living room today, many of you reading this can easily name 5-10. If your $5K computer is damaged by a volcanic eruption, explosion, or other named homeowner’s insurance peril, it will be covered. Unfortunately, the top three causes of loss for personal electronics are accidental damage, theft, and power surges. Although it sounds like some kind of far-fetched insurance product protecting your restroom habits, Personal Electronic Equipment (PEE) insurance can carry higher limits and cover a broader range of damage.
2. Renter’s Insurance
If you don’t own the home you live in but rent, why do you need insurance for it? Because you’re a renter — plain and simple. Renters insurance protects personal belongings and even your personal reputation. Liability coverage is one of the most important parts of this policy because even renters can be sued for losses or damages connected to rented properties. Imagine what would happen if you negligently burned your apartment building down, bringing down five other people’s homes and personal property along with it — or even lives. If you don’t have renters insurance, you probably can’t write checks to cover all of your neighbor’s losses and damages (on top of yours). It’s also highly unlikely that you could pay for personal injury and/or wrongful death lawsuits. Fortunately, it’s very affordable, yet only about 47% of renters carry it, even though the average cost is only $17 monthly. Get Renters Quote
3. Event Insurance
The average wedding in today’s society costs a whopping $26K and many brides plan for their day to be “princess” without safety nets. When that much money rests on one single event contained in a day, you need to think about protection, and the coverage it can offer is actually impressive. For example, if you need to postpone your wedding due to an unexpected illness, this policy can help. It can also protect expensive items like jewelry and wedding dresses depending on the policy. Did your wedding day become a rainy day? If so, event insurance can help pay for resulting losses or damages. If someone slips on that shiny dance floor, severely injuring themselves, they may come after the event organizer for medical bill coverage, and event planners would be the ones sued. Event insurance has a liability portion built in for that kind of protection. It can be purchased for all other event types as well, but weddings are one event when it’s definitely needed.
4. Burial Insurance
Many people say buying insurance is gambling, and that those playing are gambling on something bad happening. However, there’s one thing none of us can gamble on — death — and there’s insurance to help specifically cover part of its cost. Burial insurance, a form of whole life insurance not to be be confused with pre-paying for funerals at funeral homes, is one of the safest policies you can buy because you know it will be utilized one day. You won’t be around to see the payoff of burial insurance (literally), but loved ones left with final expenses would certainly appreciate your foresight. It helps covers final expenses in their truest form — burials, cremations, and funerals. If you aren’t sure how your funeral will be paid for, this is definitely worth looking into.
5. Flood Insurance
According to the National Flood Insurance Program (NFIP), flooding is the number one hazard in the U.S., yet many homeowners aren’t aware it’s not covered under standard insurance policies. You don’t have to live in a high-risk area to warrant buying a flood insurance policy either, as 20% to 30% of flood claims come from low- to moderate-risk areas. If you don’t have flood insurance, damage isn’t covered, and according to the NFIP, the average flood insurance claim is $30K. The NFIP reports average annual premiums of about $600, or rather, $50 a month. If you buy a home and plan on living in it for 30 years or the rest of your life, doesn’t spending $600 a year to protect your home seem logical given your long-term plans?
6. Gap Insurance
In 2010, 737,142 cars were stolen, totaling a stunning $4.5 billion in personal property losses. It’s likely some of those car owners still owed on car loans originally used to purchase the cars. Without gap insurance, you’re responsible for paying off that loan even if the insurance company has written off your car. Regardless of the car, its sale price, or any other factors, anytime you take out a loan to buy a car — especially brand new or very expensive ones — you should purchase gap insurance.
7. Umbrella Insurance
Your homeowner and auto insurance policies offer liability coverage, but it’s normally only up to a certain amount. Have you ever considered what would happen if you got sued for more than your liability limits? You’d have to pay out of pocket and with the rest of any assets you have. An umbrella policy provides extra liability protection at an affordable cost — a $1 million policy will usually run anywhere from $200-$500 a year.
8. Accident Insurance
Did I do that? Whether it’s your fault or Steve Urkle’s, accidents happen and they can be financially devastating depending on the severity of the injuries you sustained from an accident. If you think bills from general practitioners are high, the costs of losses and damage incurred in an accident makes $180 seem like pocket change. According to the National Safety Council (NSC), the average hospital stay is five days, meaning lost income, extra daycare, bills for the cafeteria’s gourmet meals, and more. That’s a lot of money, especially when the cost of staying at the hospital is more than $22K on average. Accident insurance is what could help cover — to at least some degree — things like those previously mentioned — lost income, insurance deductibles, and childcare among other things.
9. Pet Insurance
If you love your four-legged friend, whether dog, cat, or something more exotic, you probably care for them like another human family member. If they get sick, treatment can cost thousands. According to the Americans Pets Products Association, $12.2 billion was spent on veterinary care in 2009 alone, and those statistics are rising. Procedures become increasingly expensive, and those formerly out of reach are now widely available. If you want to protect your pet, this insurance policy can help you save money in the long run, but do it now. Similarly to the underwriting guidelines of many insurance types, you want to obtain coverage as early as possible — don’t wait until your pet’s vision seems to be waning. Buy it when your pet is still healthy to help lock in premiums and discounts that may help if something drastic happened, causing rates to rise. Additionally, pet insurance is still a relatively new frontier, so it’s wise to purchase it before it catches on more, which would likely mean more premiums.
10. Private Medical Insurance
If you’re employed and still have health coverage, thank your lucky stars. As the costs of health care rise, some employers are considering dropping benefits altogether. Then you may find yourself in the sticky situation of searching for private insurance — along with 46 million others who are uninsured. According to a study by the National Institutes of Health, private medical insurance can cost up to $1K monthly, and the average cost of one ER visit is 40% more than the average U.S. rent amount at $1,233.
If you look at insurance as gambling, that’s fine. However, the irony of calling it gambling is that when you don’t “gamble” by not buying insurance, you’re gambling that nothing bad would happen, and that’s a gamble you want to lose
At Marshall Insurance, our team is happy to go far beyond being a simple North Carolina insurance agency, we aim to be the insurance leaders you trust to protect your most precious commodity- your life. From providing you with reliable North Carolina auto insurance, home and business coverage, we are prepared and awaiting the chance to take it to the next level by insuring your life.
We know that finding the right North Carolina life insurance program can get confusing and even a bit overwhelming at times. From having to weigh the pros and cons of term life insurance versus whole, universal and variable and beyond -it’s easy to get lost amongst the terminology and varying coverage options.
That’s exactly why we at Marshall Insurance want to be more than just your insurance provider, we want to be your trusted coverage all. By helping you navigate your way through one of the most valuable policy decisions you will ever have to make in your lifetime; we vow to secure you a tailored plan you can rely on.
Term life insurance, whole life insurance, universal life insurance, variable life insurance, survivorship insurance… the list and combinations seem endless. At Marshall Insurance we want to help you determine which type of Carolina insurance policy is right for you! Our dedicated team of life insurance experts understands both North and South Carolina’s market and regulations and can find the right plan – or mixture of options – that fit your individual needs. Term Life Insurance Basics:
Coverage for a “term” or period of your life.
Lower premiums for higher coverage.
Rates can change after specific terms expire.
No equity – cannot be used as cash value.
Whole Life Insurance Basics:
Exactly like it says – permanent, not for a specific period.
Protection carries with you your whole life.
Can build equity and have cash value.
Higher premiums than term life, but can be more valuable in the long run.
Term and Whole Life Combined:
Build lifelong base of whole live coverage.
Supplement specific times of your life with term insurance.
When to choose term life? Most people choosing term life have a strategy for long term net worth. They need specific coverage for a period of their lives to protect debt, loved ones, and children. For a homeowner with children it may make more sense to have a term life policy that covers the mortgage and living requirements until their children are old enough to provide for themselves – in this case the term would expire around the time your children move out. When to choose whole life? Whole life can be used in the retirement years as cash assets. It can provide equity for loans and have fixed payments that do not increase with time. Often times whole life policies will pay dividends, although not always.
With a variety of alternatives and policy possibilities it’s understandable that you may feel a bit anxious. But remember, life insurance is all about you, and you are certainly worth insuring!
Give us a call or complete our online quote form and let one of our expert life insurance specialists get you started on the right path. Contact Marshall Insurance for more information and get a free North Carolina life insurance quote today!
Workers' compensation is a mandatory business insurance. You cannot do business legally in North Carolina (with employees) if you do not have workers' compensation insurance or your business is not legally qualified as "self-insured."
There are some exceptions for some family businesses, agriculture, some maritime or federally regulated business, but the exceptions are so few that, for purposes of this post, assume your business needs workers' compensation insurance!
As a necessary cost, it is critical to control and lower that cost if possible. Doing so requires an understanding of how your premium is established and what can be done to lower certain factors affecting that rate.
Understanding how Premiums are Calculated Premiums for workers compensation ares calculated by the following formula:
There are two critical variables in the equation: rate and experience modifier.
Understanding Your Rate Every year, NC will categorize your industry. The state will assess risk based upon actuarial calculations. Typically, states follow the National Council on Compensation Insurance (NCCI) in determining the classification and rate. The rate is based on a myriad of factors. The NCCI classification for clerical work, 8810, is usually the lowest, while the classification for the construction trades (especially carpentry, 5645) is usually the highest. Why? Carpenters get hurt on the job and secretaries do not.
Understanding Your MOD The experience modifier is also a critical part of the calculation. It is typically referred to as your MOD. The MOD is a numeric representation of your business's loss and claim history. It is calculated differently by states. In general, a brand new business will have a MOD of 1.00. But, look how this is used in the formula. It is a multiplier on the premium. If your claims history is low it will decrease. If your claims history is high it will increase. For example, a MOD of .90 acts as a 10% discount on the premium while a MOD of 1.10 acts as a 10% increase.
Premium Based on Every $100 in Payroll The final premium is a multiple value to be applied to every $100 of payroll. For example, a rate of .08 with a MOD of 1.00 results in $8.00 of annual premium for each $100 of payroll or $8,000 on $100,000 in payroll.
Control and Lower MOD to Lower Premiums Your business will have little control over the broad industry it is in and little effect on the Rate assigned by the state. But, your business can dramatically affect premiums by lowering its MOD.
Make Safety a First Priority - A safe workplace (onsite and offsite) lowers the number of worker injuries. If possible, budget for an outside safety evaluation and implement the changes suggested. Mandate employee safety training. Show employees what an amputation or electrical burn looks like to reinforce safety. Because the MOD variable in the premium equation is a multiple, every small reduction leads to big savings.
Enroll in State Sponsored Programs - Every state sponsors programs to improve safety in return for a deduction in the MOD rating. In my state, Ohio, employers can get a deduction for participating in the Drug-Free Workplace Program. There are deductions for allowing inspections or focusing on certain injuries. The programs are available and you need to research them. The programs are not easy and compliance can be difficult, but not to the business that puts safety as its first priority.
Become Part of a Group for Group Rating - Most states offer large discounts to recognized groups. This is called group rating. Technically, this discount is a rate discount, but I put it under MOD because in order to qualify for most groups, your business must have a better than average safety history. New businesses may not qualify. Start now to implement a safety first mentality with the goal of becoming group rated.
Review Your NCCI Classification - Accountants will tell you that most workers compensation programs have a 30-35% error rating when it comes to business classification. Do not use one classification for your business and have a professional prepare your classification paperwork. Classify all of the employees individually and demand proper classification. In the example above, a secretary in your business classified as a carpenter (because she works at a carpentry contractor) can cost thousands in premium dollars. This is because a carpenter's rate is two or three times as much as a secretary's premium rate.
Review Payroll Figures - Like NCCI classifications, payroll calculations are frequently wrong or not estimated correctly. A professional review of payroll history can result in a lower estimated payroll and lower resulting premium.
At Marshall Insurance Services, we understand the needs and concerns of your parishioners take precedence over your own needs and the needs of your church.
While you’re tending to your flock, allow us to help you tend to the mundane matters of insuring your grounds, staff, and any other risk concerns you may have.
Our insurance solutions for churches include coverages for:
•General Liability
•Employee Benefits
•Property
•Workers Compensation
•Umbrella
Let peace of mind translate to a more peaceful spirit.
Contact us to learn more.
The National Realtors Association reports that there are more than six
million second or vacation homes in the United States. Many people who seek
escape from the cold, dark, icy days of winter head to second homes in warmer
climates during the winter months.
Others leave their homes to enjoy summer
vacations at the beach, or winter ski and snowboarding adventures in the
mountains. No matter what your destination, here are a few things you should do
to protect your primary residence while you're away.
Give It That Lived-in Look
When you're going away for an extended period of time, you should try to make
your home look like it is still occupied. If there is the appearance of activity
at your home, there is less chance that the house will be burglarized. Here are
a few ways to make it seem like you're home:
Set lights and a radio or television on timers so they'll go on
and off at different times of the day.
Use call forwarding to have your calls sent to your vacation
home's phone line or cell phone. You can also turn off or lower the ringer
volume on your phone so that it can't be heard from outside. If you are going to
leave a greeting on your answering machine, be sure you don't leave any
information about being away from home. Rather, leave a generic message like "we
can't come to the phone right now, please leave a message."
Arrange for landscaping services while you're away. Have
someone mow the lawn, rake the leaves and shovel the snow.
If you're leaving a car at your house and you don't have a
garage, have someone move your car periodically or ask a neighbor to park their
car in your driveway or in front of your house every so often.
Have your mail held at the post office and suspend delivery of
your newspaper. Or ask a neighbor to pick up your mail and newspaper daily.
Have an Expected Visitor
When you're going to be away, it's a good idea to ask someone to check on
your home on a regular basis. Ask a friend or family member to stop by about
once a week so that if there is a problem it can be taken care of quickly. They
should check that doors and windows are secure and open and close curtains and
shades every now and then to help make your house looked occupied. Be sure to
give your "home checker" a spare key-don't hide a key anywhere near or around
your house because thieves know where to look. Also, if you have a home security
system, be sure that your expected visitor knows how to set and disarm the
alarm.
Avoid Frozen Pipes in Winter
Frozen pipes are not only frustrating to deal with but they can also cause a
great deal of damage to your home. So, before you leave this winter, be sure
that your heating system is checked for proper operation and make any necessary
arrangements for continued fuel delivery. Also make sure that any pipes in crawl
spaces and attic spaces are well insulated and set your thermostats to at least
55 degrees so that your home is kept warm enough to prevent pipes from freezing.
Finally, leave kitchen cabinet doors and bathroom vanity doors open so that heat
can circulate to pipes under the sinks.
Most home fire deaths happen in the middle of the night between 10 p.m. and 6 a.m. A smoke detector can save your life by waking you and giving you time to escape. When purchasing a smoke alarm, look for one that is accepted by an independent testing facility such as Underwriters Laboratories or Factory Mutual.
Location, Testing and Maintenance!
The best place for your smoke alarms:
•On every level of your home, including the basement and workshop.
•Outside every bedroom.
•On the ceiling or on the wall, 6 to 12 inches below the ceiling. Keep detectors away from air vents.
Check the alarm batteries once a month by pressing the test button with your finger. The batteries should be replaced once a year.
You should clean the alarm by following the manufacturer’s instructions. The grillwork on the detector should be vacuumed periodically to keep it dust-free.
Preventing Nuisance Alarms
To prevent false alarms, move the detector away from a kitchen or bathroom. You may also want to consider purchasing a smoke alarm, like a photoelectric, that’s less sensitive to common causes of false alarms. Some smoke alarms also are equipped with a silencing feature, so that nuisance alarms can be stopped quickly and easily
Owning an older home can be a dream for many people. These homes were built in prime locations, contain larger rooms than many newer homes, and have loads of charm. But people who own homes 50 or 100 years old or more may find themselves running up against some nightmares with insurance that they didn’t bargain for when they fell in love with the house.
The majority of mortgage lenders require home owners to have home insurance as a condition of their mortgage, but older homes have many problems that make them a bigger risk to insure. Many times, elements of the house may be so worn out that insurance companies will refuse to insure the house without some repairs or replacements. “Depending on the age of a home, most insurance company require the parts of the home to be updated,” says Brian Boak, an underwriter who has worked in personal insurance for 25 years and works for Singer Nelson Charlmers. “Depending on the company, if these are not updated, they may not insure the location due to the additional risk.”
Even if insurance companies don’t outright refuse to cover your home, insurance premiums for older homes can shoot through that outdated roof. With an older home comes an increased chance for damages caused by parts not functioning properly, and insurance companies don’t take on these risks without charging you more.
Replacement costs for homes that are considered antique or historic are also higher since specialized materials and labor are required to restore the home to historical accuracy. A home inspection can help reveal the age of components of your home, whether you’ve just put in an offer or have lived in your home for years. Many insurers will perform their own inspections to determine if the home is insurable, particularly if the house has a high replacement cost.
“Some companies rely on their agent to provide the replacement cost; some companies hire an outside inspection service to do either an exterior inspection or a full interior inspection. Some companies do the inspections themselves,” Boak says. “The higher the replacement cost the more likely (and desired) that you will get a comprehensive inspection inside and out.”
Biggest problems for insuring older homes
Older homes across the country face many of the same problems that scare insurers away. Inspectors will be looking for these issues and fixing them will likely bring your premium down significantly.
The roof: Roofs typically have a life expectancy of about 25 years, according to Boak, so if you have a roof older than that, your chance of a leak is greater. And with water damage being so serious, old roofs can be a sign to insurers that your premium should be raised.
The electrical system: Most older homes were originally outfitted with small circuit breaker boxes. This combined with old fuses and old wiring can become a problem when faced with the demands of today’s home, Boak says. Air conditioning, electric heat, microwaves, and electric ovens and stoves weren’t used when the home was built, so the extra workload on the electrical system can increase the chance of a fire.
The plumbing system: Besides plumbing problems being unpleasant to live with, they can also cause leaks and water damage. The invasive nature of repairing water damage makes old plumbing systems costly to insure.
Finding the right policy
If you care about preserving the original features of your home, you’ll want to make sure your policy will pay for the materials that are no longer standard. Lath and plaster: Older homes often had walls of lath and plaster instead of sheetrock. “Depending on your insurance company they may not pay to replace your lath and plaster walls as they may say that sheetrock is equivalent (and less expensive for them),” Boak says. “Lath and plaster is much more expensive and if you want to keep your old home accurate, you want lath and plaster. Ask your broker what your company will do.” Lumber measurements: Another consideration to make is your home’s lumber. Today, two-by-fours are actually only 1.5 by 3.5. If you have an old home with “full dimensional” lumber, Boak says, many insurance companies may want to replace it with the cheaper “equivalent,” but you’ll want the original dimensions if you’re trying to preserve the home’s accuracy.
Other added costs to consider are custom molding, solid core doors, and trim that must be custom-made. Anyone with a historic home should make sure they find a company who will insure them for the full replacement value for original features. “You want to make sure you have a true guaranteed replacement cost,” Boak says. “Many companies have replacement cost but it is capped at 20% or 25% above the insured value. You want a company that will rebuild the home exactly how it was with all the quality you had, regardless of the cost.” Watch out for any cash value policies. These will only pay for what’s damaged including depreciation, so you could be covered for much, much less than you need or even realized with one of these policies.
Buying an old home So what do you do if you’re house hunting and have fallen in love with an old house? Don’t rush into anything!
Call us before closing on your mortgage. By giving yourself and us time to shop around for home insurance before closing, we can work together to see what you can reasonably expect to pay in premiums, find the best prices, and maybe even stumble on some discounts. You may find that the replacement cost is going to be significantly higher than what you’re paying for the house and that the house isn’t affordable for you because of insurance costs.
Getting quotes from insurance companies will probably also help you find the problems with the house. If you find a few small problems during an inspection, you can budget for it. And if you discover that the whole electrical system and plumbing system need to be replaced, you can walk away.
If you do decide to go ahead with buying a house that needs repairs to make it insurable or bring down your premiums, consider asking the current owner to make the fixes. “If items are old and you are buying the home, you would either want to have the current owner discount the price of the home or update the items for these improvements you will need to make ,” Boak says. “Or expect to add that cost into your budget.”
Tips for home owners If you already own an old house, you may worry about your insurer raising your premiums significantly or even dropping your coverage altogether. Many insurance companies change the status of your coverage if you file a big claim or several claims in a row. So if your roof gives out and you file a claim, you could be hurting your chances of continuing to be insured.
To avoid this problem, it’s best to try to stay ahead of all repairs and updates if you can. They can certainly be costly, so keep an eye out for warning signs of problems so you can choose what absolutely needs to be fixed first.
Roof: Roofs really aren’t made to last more than 20 or 25 years, but even younger roofs might need replacing. Check for several shingles lifting up, broken, or gone, and then go into your attic to see if you can see any pinholes of light or new water stains. Electrical system: Look out for flickering lights when you turn on an appliance, switches and plates that are hot to the touch, two-prong outlets, burning plastic smell at switches and outlets, and improper fuses. Plumbing system: Check out any exposed pipe in your house and look for discoloration, dimpling, stains, and flaking, which could mean your pipes are corroding. It’s a good idea to also look at the color of your water, especially after it’s been sitting in the pipes for a while — try filling your bathtub after a vacation. If it’s brown or yellow, there is probably rust in your pipes.
Old homes can be beautiful investments if you’re prepared to take care of them and keep them up to modern safety standards. If you don’t have the time and money to dedicate to updating your systems, you could find yourself buried under insurance premiums that may cost as much as the repairs in the long run.
When people buy insurance, they often feel they know enough about their policy, what’s insured, and its risk. However, like a wallflower at a high school dance, what’s excluded in an insurance policy is barely given attention. You may not want a dance with those exclusions, but you should know what they are. Once you do that, you’ll find yourself asking a lot of questions. 
