Vacation Home Insurance

WHY YOU NEED TO INSURE YOUR

VACTION HOME

   After all, you aren't there all the time. You don't have nearly as much personal property there. Do you really need to insure it? Yes. Yes you do.

 You're right, you aren't there all the time. If no one is there, how will anyone notice a leak? Or catch a fire before it blazes out of control? What if you get burglarized? Chances are no one will be there to prevent or at least handle these situations on a timely basis. This means the damage could be much worse than it would have been if someone lived there full time. These are high risks you don't want to pay for on your own. 

   Many vacation homes are in rural or beach areas. Let's say you are there when one of those situations occurs, but the fire /police departments are miles away and they take 30 minutes to get there. A fire can destroy an entire home in that amount of time. A leak can destroy your entire flooring. A burglar can empty your home. These are a high risks you don't want to pay for on your own. 

   What if you rent it out or let friends/family stay there when you are not there?  Somone trips over a rug and breaks their leg. Or someone starts a fire in the kitchen and can't get it out. You can be liable for injuries and or damages, even if you are not there. These are high risks you don't want to pay for on your own.

   You have worked hard to buy that secondary home for your family to enjoy. If something happens, you want to make sure you have adequate coverage for that vacation home, just like you do for your primary home. 

Just like your primary home insurance, there are many optional coverages and many carriers to choose from. Talk to your agent and work through what you want and need in coverage. Most primary home policies will not extend much coverage to a secondary property. So you will need a separate policy for your vacation home.

There are few options I urge you to consider.

Personal Umbrella Policy (PUP): This is an extra Liability policy that will pick up where your home/auto policies stop. So if you have a liability claim of $500,000 and you only have $300,000 in Liability coverage on your secondary home policy, your PUP will kick in and cover the rest. The more properties, cars and toys (boats, motorcycles...) you have, the higher the premium will be for the PUP. But the added coverage can be a financial life saver.

Fair Rental Income: If you are renting out your secondary home, I highly recommend this coverage. If the home becomes uninhabitable (therefore un-rentable) due to a covered loss, you can be paid the rents you would lose during the time it takes to repair the damage. 

Coverge Amount: As I explained up above, you are more likely to have extensive damage from a fire, leak or burglary because you are not there full time. Make sure you have enough dwelling coverage to cover a total loss. Don't go cheap because you don't use the home as often. You need complete coverage because of the lack of time you spend there. 

Every carrier is a different in what they will/will not cover, what type of policies they will/will not write. So, I wouldn't get your heart set on "bundling" by trying to make sure your secondary home policy is with the same carrier as your primary home policy. That is not always an option (your primary home carrier may not even write secondary homes). Sometimes they won't have the best rate. So be open to the quotes your agent offers you. Of course, if you are with a captive carrier, you won't have many options. Again- I urge you to find an independent agent and see what they have to offer. 

Have other questions? Need a quote?

                

                                                                    

                 
         

* Visit brockmanpremierins.com

* Call  877-987-8683 

*Email  quote@brockmanpremier.com    

Home Based Business

Do You Need Insurance for Your Home Based 
Business?

 Many people are having to adjust to working at home right now. If you have been laid off, maybe you are considering starting a home-based business. Dog walker, free lance writer/photographer, consultant, stylist. If you are working from home for your employer, make sure you are still covered under their Liability policy. If you are going to work for yourself, you need to know how to protect yourself and your business. 



Do you need insurance from the start? 
      Do you need insurance at all? 
               What if you only do this part time?

Yes!   Yes!  and  Yes!

Many home-based business owners believe their Homeowners policy will cover their business. But homeowner's policies EXCLUDE business coverage. Commercial risk is different from personal risk, so the policies contain different types of coverage. You want an insurance policy built for your business needs. You want a policy built for your protection. 

The Business Owners Policy

There are many policy options in commercial insurance (too many to list in one blog post.) But the most common type of policy for small businesses is the Business Owners Policy (BOP). It usually combines  coverage a business would need into one policy.

Three types of coverage in the BOP.

General Liability:  This covers your company's legal responsibility for any harm it may cause to others. What you and your employees do or fail to do in your business operations may cause bodily injury or property damage due to defects in products, faulty installations and the errors in service you provide.  

Business Property:  This covers two types of business property.  It covers the buildings themselves (which you won't need much of if yours is a home-based business) and the contents owned by the company (Business Personal Property). This would be furniture, laptop and supplies, as well as other equipment you may use in your business. 

Business Interruption: This covers the loss of income if your business operations are interrupted by a covered claim. It includes the extra expense of operating out of another space temporarily if your building is uninhabitable. (I am going to assume most carriers will not include this in policies written during the pandemic.) 

There is other coverage in a BOP, depending on the type of business. If you sell products there would be different coverage than if you sell insurance. But these are the main concerns for small business owners. Most BOPs are a minimum of $500 annually. They can be much more expensive depending on the business and the limits of coverage. But for a small home-based business that doesn't have high risk or high amounts of business personal property, they are generally inexpensive.

Other Types of Commercial Policies

Other Commercial policy types include Commercial Auto, Worker's Compensation and Professional Liability (Errors and Omissions). You can also get a General Liability or Commercial Property policy as a separate policy. They don't only come in the combination form of a BOP.

   Business owners looking for the the most cost effective way to protect their business should work with agents who have access to multiple insurance carriers. You can go through your area Chamber of Commerce or the Small Business Administration to find an agent near you. Or you can call us! 


Have questions? Need a quote?    
* Call us  877-987-8683  
* Visit brockmanpremierins.com

Home Insurance Basics

Back to Basics-Homeowners Insurance

   Have you tried to read your insurance policy and just given up? It can be very confusing! Our goal is to help you understand your insurance policy.

    Every policy (regardless of type) should have a Declarations Page, commonly referred to as the “Dec Page”. This page “declares” who you are, what property you have insured, your coverage choices and how much you are paying for this policy period. You will get a new one for each policy period.

There are 2 basic types of coverage on your Home insurance policy: Coverage that protects you and coverage that protects the other party.

Coverage that protects you:

Coverage A- Dwelling Value:  The dwelling value is set at or above the estimated replacement cost of the home. This includes the cost to haul away debris, the materials and contractor’s overhead & profits. This coverage can be written at Actual Cash Value (the value to rebuild the home minus depreciation based on the age of the home) or at Replacement Cost (value to rebuild the home at today’s quality and price). I suggest Replacement Cost policies. Many people ask us to match the coverage to what they bought the house for. Remember- Insurance is meant to make you whole again after a loss. The Dwelling Value isn't isn't based on how much it would cost to buy your home again. It is based on what your carrier is willing to pay out if you had to build your house from the ground up.

Coverage B- Other Structures: This covers buildings SEPARATE from the house, such as a pool, fence, storage shed, detached garage, etc. This usually defaults at 10% dwelling value. It can be lowered to save money or raised to increase coverage.

Coverage C- Personal Property:  Covers your contents of the home. This can also be written at ACV or Replacement cost coverage. If you have a total loss to the home, the carrier will write you a check for the total personal property, regardless of whether you have RC or ACV coverage. If you have a partial loss such as a small fire or theft, they will only give you the coverage you have paid for; meaning if you have ACV coverage, your 8 year old TV will only be covered for the value of an 8 year old TV. If you have Replacement Cost, your coverage will cover the cost of a new TV.

Loss of Use:  This provides reimbursement for reasonable increases in living expenses (such as a hotel room or apt) due to a covered loss, if your home is uninhabitable. There is usually a set amount as well as a set time period. Once the home is inhabitable again, you are expected to move back in (Regardless of how much you are enjoying the hotel!)

Deductibles:  This is the amount you pay out of pocket when you file a claim for a covered loss. There are 2 main types of deductibles;

            Wind/Hail Deductible: This covers your home in the case of high winds or hails, usually seen during severe storms. 

            All Other Perils Deductible: This covers your home for the remaining perils listed in your policy, such as fire or theft. Keep in mind, home insurance policies do not cover floods. You will have to buy a separate policy for flood insurance.

Coverage that protects the other party:

Personal Liability: This covers you if someone is injured on your property due to your negligence.  It can help pay for their injuries and any legal costs. We had a neighbors dog bite a visiting child once. The child is fine, but there were some medical costs and their Liability on their Home Insurance policy paid it in full.

Medical Payments: This will provide reasonable and necessary medical expenses to a guest on your property injured in an accident. If the UPS guy trips and falls and needs medical attention, this would cover minor needs, like ER and stitches.

Insurance coverage can be confusing, but it doesn't have to be!


Have other questions? Need a quote?

    * Call us  877-987-8683  

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