Monthly Archives: October 2017

Explaining Insurance to Value

Correct Insurance Valuation Prevents Claim Payment Penalties

Commercial Insurance is designed to protect your business from financial disaster.  Insuring your Value Price scale 3d word concept over whiteproperty with correct valuations is critical.

Two basic types of coverage on commercial policies are: 

Real property which includes the land, buildings, and permanently attached or installed machinery, equipment and outdoors fixtures.

Business Personal Property is a term used to describe property that can be easily moved, such office equipment and furniture.

Valuation of your property is determined by two different ways:

Replacement Cost as it sounds, is the amount needed to replace damaged or destroyed property. It is important to remember that replacement value is NOT the same as market value. The cost to restore your property to its condition prior to the loss is almost never the same as its purchase or sales price. Most commercial insurance policies protect commercial buildings for replacement cost. The valuation of the building is generally the amount needed to restore you property to its pre-loss status.

Actual Cash Value limits insurance loss payments to the amount your used item was worth if you were to sell it. Coverage on an ACV basis costs less because in the event of a claim, the cost to purchase all new furniture and office equipment is considerably more that the depreciated value of your old equipment.

Business Personal Property can be insured on a replacement OR Actual Cash Value basis, depending on your choice. It is important to note that the difference between replacement cost and actual cash value can present a huge financial difference in the event of a loss and need.

While many times, the valuation of the building is determined by size and construction material, there are additional choices concerning types of coverage and deductibles.

Let the experienced professionals at Cobb-Hall eliminate confusion and provide solutions designed specifically for your needs.

WAIT! Something Changed?

You Make Changes – Keep Your Insurance Up To Date

For your insurance to protect you properly, it may be important to update your coverage.Businessman trying to catch the train

Here is a list of  common changes that may require updating your insurance policies.  If you answer yes to any of the following questions, but have not made sure your policy has been updated, be sure to call your insurance agent.

  • Have you changed your address recently?
  • Is your home vacant or rented to someone else?
  • Have there been any changes to the name on your deed? (Trusts, Estates)
  • Have you improved, added on to your home or finished the basement?
  • Could there be over $5,000 in damage if water or sewer backed up in your basement?
  • Do you have items of value over $250? Special items may need to be listed “scheduled” on your policy. (jewelry, guns, camera, computer equipment, musical instruments, collectibles)
  • Do you own or rent property not listed on your policy?
  • Do you have a woodstove in your home?
  • Do you run a business or keep business property at your home?
  • Do you farm or sell produce/ livestock?
  • Are the liability limits on your policy adequate to protect all your assets?
  • Do you have vehicles or household residents not listed on your policy?
  • Do you have autos on your policy not titled to you?
  • Does your policy only list liability coverage, but you need coverage for damage to your vehicle?(Comprehensive, Collision)
  • Does your healthcare policy pay before your auto policy in case of injury due to an accident?
  • Do you have a company car?
  • Do you use your vehicle for business?
  • Do you choose NOT to wear a helmet when riding your motorcycle? (additional medical coverage required)
  • Do you own other vehicles not listed on your policy?(snowmobiles, golf carts, RV’s motorcycles, scooters, recreational vehicles, antique vehicles)
  • Is the amount of your life insurance less than double your annual salary?
  • Do you need life, health or disability coverage?

Contact the caring experts at Cobb-Hall Insurance for more details.

Cobb-Hall Insurance: Agency of the Year Award

Cobb-Hall Insurance is honored to be named Agency of the Year by National Underwriter Magazine.  Click link to read full article.    Cobb-Hall Insurance Agency of the Year

Coinsurance – What you don’t know CAN hurt you

Coinsurance Explained -What you need to know   

Most Business Insurance policies include a coinsurance clause for building and business personal Young man jumpingproperty coverage. Coinsurance creates an agreement between the policy owner and insurance company on the value of the insured property and the amount of insurance purchased.

The benefit is that coinsurance allows for lower insurance policy costs. But what you need to know is that IF the insurance purchased is less than the agreed percentage, the insured will be required to pay a portion of any losses.

Here is a simplified example: If a business is valued at $100,000 and there is an 80% coinsurance clause, the insured is required to purchase at least $80,000 of insurance.  If instead, the insured purchased $40,000, (half of what should have been purchased), the company will only pay half on losses.

Awareness of the percentage of your coinsurance clause, along with knowing the value of your building and property will provide the information needed to make the best decision to fit your needs.

Let the experienced professionals at Cobb-Hall eliminate confusion and provide solutions designed specifically for your needs.

 

Life Insurance Decision Guide

Life Insurance – How to Decide

Many people don’t know where they are going or how to get there when discussing life insurance.  yogi berra The following information can help you make decisions.

Basic Life Insurance Information

Whether you are married or single, a death can create financial hardship. Remember to consider expenses such as childcare, college, funeral expenses, and mortgage when determining your needs.

There are two basic types of life insurance: term life insurance and permanent life insurance. The type of life insurance policy that best suits you will depend on your unique needs.

Option #1: Term Life Insurance

Just as its name implies, term life insurance covers you for a specific period of time, or term, that you choose. Since it offers a death benefit but no cash value, term life insurance is an inexpensive way to protect your beneficiaries for a specified period of time.

Renewal term life insurance can be renewed at the end of the term, at the option of the policyholder for a limited number of successive terms. It can also be converted, or exchanged for a permanent insurance policy, down the road. It’s important to note that rates generally increase along with the insured’s age.

Option #2: Whole Life Insurance

Permanent life insurance is any form of life insurance other than term. Examples are whole life, universal life and variable life. These policies combine term life insurance with a long-term, tax-sheltered savings plan.

Whole life is the most basic type of permanent life insurance. It provides coverage that lasts a lifetime and builds up a cash value that you can borrow against, withdraw or use to pay future premiums.

A life insurance policy with a cash value is ideal for those who have a lifetime need for insurance protection, prefer stable premiums over the life of the policy, want a policy that allows them to build tax-deferred values, and value the high degree of coverage the policy affords. While rates for a whole life insurance policy remain stable over the life of the policy, premiums are initially more costly than for term insurance.

How Much Insurance Do I Need?

To find the right amount of coverage, it’s important to consider your dependents’ current lifestyle and needs against future sources of income and assets.

Contact the caring experts at Cobb-Hall Insurance for more details.