Personal Insurance

In terms of homeowners’ coverage, Liability coverage protects the insured against the financial consequences of liability to others for bodily injury (BI) and property damage (PD). The cost to defend is generally outside of the limit of the policy.

The National Flood Insurance Program (NFIP) has established that a flood is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow. Anywhere it rains it can flood.

Since the homeowners policy contains a water exclusion that precludes coverage for losses involving water that (a) backs up through sewers or drains or (b) overflows or is discharged from a sump, sump pump, or related equipment, an endorsement can be added to provide water back-up and sump discharge or overflow. It allows the insured to designate a specified limit to cover a water-related loss (not caused by negligence). The limit of liability is specified within the endorsement, generally with a basic limit of $5,000. Higher limits are available.

Note that with this endorsement, there is no coverage to direct physical loss to the sump pump or related equipment that is caused by mechanical breakdown or power failure.

Under a personal automobile policy, comprehensive coverage insures against loss or damage to the covered auto resulting from fire, theft, windstorm, flood, and vandalism, generally; but not loss by collision or upset. This coverage is sometimes referred to as “other than collision” (OTC). In addition, think of broken windshields and animal collisions as incidents that would typically fall under this coverage.

Life Insurance

There is no way to provide a solid one-size-fits all answer to this question. Our approach is to assess your current outstanding financial obligations in addition to the future that you are planning to provide for your children or loved ones. We conduct this exercise with you free of charge to help you begin to determine the amount that’s right for you.

We’ve at times referred to this as renting a policy versus buying one. What? Well, what we mean is this:

Term Life Whole Life
Provides its benefit if you pass away during the policy period (typically 10, 20, or 30 years)

Premium payments are generally fixed during the time period

Premiums are lower (on average about 10% of the cost of a whole life policy)

Provides its benefit when you pass away (not if)

May have a cash value or annuity component that is available for loan or withdrawal

Generally more expensive than term insurance by a factor of 10 or more

Some carriers do provide an optional conversion rider, where the policy holder can, during any time throughout the policy period, convert from term to whole life without new underwriting. These options must be reviewed in full, as offer vary among carriers and limitations apply.

Your age, health, and lifestyle are among the biggest factors that contribute to the going rate for your life insurance policy. The fact remains that the younger you are when you invest in a life insurance product, the lower the cost. And, if you are a non-smoker, within a normal weight range for your height, and generally in good health, you can expect even lower premiums.

Certainly your lifestyle will play a big part in underwriting your policy. We can’t say without a thorough review of your typical activities, but it generally boils down to how dangerous the sport or activity is; and how often you partake.

In our line of work we don’t typically give tax advice, but we do have local partners who we would recommend you connect with. What we can say is that death benefits are often received income-tax free by beneficiaries, but there are many variables. We are happy to connect you with one of the local professionals that we trust to handle your concerns.

Key Person Life Insurance is a policy that a business may purchase in order to guard against the fallout related to the sudden loss of a key player in the company. It allows for small businesses to perpetuate beyond its founders or integral c-suite officers. The benefit is intended to cover the expenses incurred in replacing the individual, as well as paying off debts or distributing money to investors. There are a wide range of variables that we can help business owners and decision makers to navigate.

Other Questions

A renter’s policy provides some of the benefits found in a homeowner’s policy, but does not provide coverage for the structure of the dwelling itself. It can provide third-party coverages such as property damage and bodily injury. A renter’s policy is generally very affordable, so for more information, reach out to us!

EPLI provides coverage for wrongful acts arising from the employment process. The most frequent types of EPLI claims are: wrongful termination, discrimination, sexual harassment, and retaliation. Other types of inappropriate workplace conduct, such as employment-related defamation, invasion of privacy, failure to promote, deprivation of a career opportunity, and negligent evaluation, may be covered under the policy.

In lieu of a dollar deductible, the business interruption waiting period is the amount of days or hours (duration) that the insurer is not responsible for loss suffered following the direct damage loss.