Contractors Insurance Services

Homeowners Insurance for the First-time Homebuyer

Insurance policies can be hard for any consumer to fully comprehend, but first-time homebuyers are in a stickier circumstance than many after all, here you have a plan of insurance intended to protect your biggest asset, and it is not only difficult to comprehend but also has several caveats that, by not understanding them, could leave you dangerously exposed.

Homeowners Insurance Is Not Flood Insurance

The initial lesson for a first-time homebuyer is that home insurance is not the same as flood insurance. Flood insurance protects your home against the damage caused by a body of water that rises as a result of snow melt, rain, etc. Home insurance offers no protection to homeowners when this occurs. If you reside in a flood zone, then your mortgage lender will require you to have flood insurance. If you do not live in a flood zone, the coverage is voluntary.

Limits and Deductibles

Your policy likely has a deductible—and it may even have more than one. The deductible is the amount of money you must pay out of pocket for an insurable incident. Your insurance policy will offer no benefit payments unless the claim exceeds your deductible.

Limits are the maximum benefits that your insurance company will pay out. Your limits should be realistic for the value of your home and contents and potential liability claims exposure. If your limits are lower than you’d desire, you can consider an umbrella policy to include extra coverage.

Personal Property or Contents

In addition to offering monetary compensation for losses and damages to your home, home insurance also protects the value of your contents or personal property. This includes your furniture, electronics, digital software and music purchases, clothes and more. For jewelry, art or antiques, you may require additional coverage.

Liability Coverage

If someone is hurt in your home or on your property, you may be accountable for paying damages, medical expenses and lost wages, even if the injury was not a cause of your purposeful carelessness. Home insurance protects you from these liabilities so that you can actually enjoy having people over without worrying that it will later result in a huge liability.

Bed Bugs and Mold

It is a good idea to examine your home insurance policy and see what types of incidents are considered insurable and actually offer recompense. In the majority of policies, bed bugs, termites, mold and other home invaders are not considered insurable incidents, so you must pay out of pocket for their elimination.

As an Independent Agency we have access to various companies and products. Through this vast market we are able to offer you the professional protection you want and deserve. Call us today to get a free Austin home insurance quote at 512-518-6292.

Do You Need Personal Watercraft Insurance?

Do You Need Personal Watercraft Insurance?

Generally, personal watercraft (PWC) insurance, unlike auto insurance, will not be required by your state. State requirements should not determine whether you need this valuable protection. Before you make a decision, consider the following three important points about PWC insurance.

1. PWC insurance protects your investment.

It’s not cheap to purchase personal watercraft for your family and keep it properly maintained and stored. While you might be investing your time and money in the PWC for fun rather than value appreciation, you are investing assets that could be spent elsewhere. Without PWC insurance to reimburse you for physical damage or theft, you could be forced to spend your savings to replace your craft or to go without; this means you would be losing out on all the time and money spent on it in the first place. Since PWC insurance also provides valuable towing and environmental cleanup benefits, it can save you money in even more ways.

1. PWC insurance provides medical payments coverage.

If you or one of your passengers is injured while operating a personal watercraft your PWC policy (if it has medical payments coverage) will pay the medical expenses for treatment within deductibles and limits. This includes those injured while on water skis or wake boarders, unless operated after dark or, when one is required, without a license.

1. PWC protects against liabilities.

You and your family aren’t the only individuals who can be injured when you operate a personal watercraft. You could hurt someone else or damage their property in an accident. If you do, without insurance you must cover the entire cost of the liability. But with insurance, you have coverage for incidents that exceed your PWC deductibles and fall below your limits. This includes damage to a dock or another watercraft. 

Exclusions in PWC Insurance

Watercraft that has been modified in order to increase speed capabilities may be excluded from coverage on your policy. In addition, if you operate your watercraft without a driver’s license (when one is required) or at dark, your incident may be excluded.

Kick off your summer fun with the right Texas boat insurance policies at your side. Give us a call at 512-518-6292 to find out how we can help protect your family and your assets this summer, and all year round.

Insurance and Credit Ratings

As if you needed an additional incentive to have insurance, consider this: Insurance may help keep your credit rating intact after an insurable incident. Insurance can't necessarily fix a credit rating, but it can preserve it by preventing debt and creating cash flow. 

Preventing Debt

If you were to experience an insurable incident that ruined your property, such as a fire or theft, then you need to pay out-of-pocket to replace your property unless you have insurance. Without insurance, you may have no choice but to rely on credit cards and loans to fix the damage, replace property or pay for a place to stay while your home is being repaired. And if you tap into retirement savings, you may be triggering hefty fees and penalties that reduce the amount of money you can take.

This will increase your debt which can hurt your credit rating—not to mention the affect it can have on your overall net worth. In addition, it creates new payment due dates to observe while you are struggling to get your life back together. This creates the perfect breeding ground for late payments that can hurt your credit rating even more.

 

Improving Cash Flow

Cash flow is not just important for businesses, it's also important for individuals. You need cash flow in order to pay your bills on time and avoid late fees. But cash flow doesn't just prevent late fees; it also prevents a mark against your credit report due to a late payments.

One of the most important ways for would-be lenders to assess your risk as a borrower is to look at your payment history with other lenders. For that reason, timely payments to your credit cards and loans weigh heavily on your credit score. When you have insurance, you can ensure that you have claims money to use for replacing property and you don't need to use your own. That way, you keep your cash available for paying bills, avoiding late fees, and protecting your credit.  

A good credit score is important, and it's also important to preserve your asset values by investing in insurance. Knowing that insurance can also keep your credit rating intact just makes it that much more powerful. When you are ready to build your financial armor through insurance, give us a call (512) 445-2727. Call us for an Austin insurance quote today.

How does Inflation affect your Commercial Insurance Coverage?

Everyone knows inflation makes products cost more, which means your dollars are less powerful. But have you ever stopped to consider how that affects your business insurance coverage?

Commercial Property Insurance

The limits on your commercial property insurance are meant to cover the rebuilding costs should you face the destruction of your building due to a covered peril. Inflation increases the cost of the materials that will be used to rebuild your commercial property thereby making it more expensive in future years to rebuild. That means, a few years from now, your current limits may not be sufficient to cover rebuilding costs. In order to keep pace with inflation you must complete an annual insurance review that analyzes your limits in relation to actual rebuilding costs and adjust your coverage accordingly.

Click to learn more about inflation, supplies and business continuation coverage. Give us a call at 512-518-6292 for a Austin Business Insurance quote.

Can a Hybrid Car Reduce Your Insurance Premiums?

There are many reasons one can decide to buy and drive a hybrid vehicle. It may be due to concern over climate change issues, or a means of reducing dependency on fuel.  It may also be a way to reduce overall gas costs or it could be that the driver doesn’t want to contribute to local pollution problems, regardless of climate change concerns. Another reason could be that drivers want to lower their insurance premiums.

Hybrid Drivers Less Risky

It is unlikely that a driver who chooses a hybrid vehicle does so to be flashy or to drive a car able to race down the highway at the speed of sound. Insurance companies generally see hybrid car drivers as a safer bet than drivers who have other types of vehicles, such as sports cars and other non-hybrids. If a driver’s actual record supports this impression, that driver could end up with significant discounts from insurers.

Less Hybrid Theft

Institutions that study stolen vehicle figures in the U.S. notice that a higher percentage of stolen vehicles are older because technology makes it more difficult to steal newer models. Hybrid cars, which are relatively new to the auto world, are definitely benefiting from this trend. Of the top 10 types of vehicles stolen in 2010, none were hybrid models.

Newer Cars, Newer Technology

As noted above, the newer your car is the more it benefits from new technology, but that can be a double-edged sword. When hybrids first hit the road, they were difficult and expensive to fix or replace, prompting higher insurance limits and premiums. Newer hybrid vehicles are more mainstream and not as costly to repair or buy.

The good side of the technology sword is that it introduces many more safety features than had previously been available. From back-up cameras to blind spot detection, discounts abound when insuring a new hybrid vehicle based on the safety-oriented technology.

Nothing matters as much as your own driving record when an insurer evaluates you for a policy. Luckily, you can control your driving record from this point forward by following traffic laws and driving your new hybrid vehicle with caution. If you have questions about other ways to reduce premiums or to get a free Austin auto insurance quote, give us a call at 512-518-6292.

Is General Liability Coverage Enough?

General liability insurance is the backbone of many contractors’ insurance portfolio, but it may provide too general a coverage option to really protect your business.

What Does General Liability Cover?

For third-party bodily injury and property damage claims, general liability insurance provides an important form of protection. The rest of the coverage offered by the policy is dependent on the additional endorsements and exclusions listed in an individual policy. Your general liability policy will have its own set of limits and deductibles and, no matter what is included or excluded, those limits alone might necessitate the presence of secondary coverage to pick up where your general liability limits leave off.
At no point will a general liability policy protect against purposeful damage, and it may not protect in the event of professional negligence. To fill gaps in your coverage, consider the following:

• Professional Liability Protection: You might consider adding professional liability protection if you are responsible for duties such as:

• Construction management
• Design delegation or in-house design
• Plumbing or electrical work 

• Pollution Liability: This coverage can generally be added as an endorsement to a general liability policy. It protects against damage caused by pollutants that are produced as a result of the job being conducted.
• Disability insurance: If you are injured at work, your general liability policy provides no protection. A short- and long-term disability policy will ensure that you have an income throughout your disability.
• Worker’s Compensation: If you have regular employees, then you need worker’s compensation insurance unless you are prepared to self-insure the claims of employees who are injured at work.
• Commercial auto: If you use a car to get to and from jobsites or to run errands for your business, then you need a commercial auto insurance policy. That will help cover liability claims that arise out of accidents while driving or after a client’s property is damaged by your vehicle or while it is held inside it.
• Umbrella liability: To supplement the limits of your general liability and commercial auto policies, you can add an umbrella policy. An umbrella policy might also protect you from damages caused by slander or libel.
• EIFS: If you or your subcontractors use a synthetic stucco system on your construction projects, then make sure you include an EIFS policy or that your general liability policy includes it.

The goal of insurance is to protect your business from loss. Work with an experienced agent who understands the issues that contractors face and can help you get full coverage through a family of policies, and you can conduct your business with confidence.

Contact us to discuss insurance coverage at 512-518-6292 or get a free Austin business insurance quote.

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Why is so much Commercial Property Insurance necessary?

This is a great question, and one that customers ask often.

Your policy includes what is called a co-insurance provision.  Co-insurance is basically an agreement between you and the insurance company.  In exchange for your agreement to insure the property for at least a specified percentage of its actual value, the company agrees to issue the policy for a lower premium than it would charge for a policy without a coinsurance provision.  

After a loss – even a small loss – if the amount of insurance on your property isn’t sufficient to satisfy your part of the agreement, then the insurance company can reduce the amount it would normally pay.  For instance, if your insurance policy contained an 80% coinsurance clause, then you would be responsible to carry an amount of insurance on your property at the very least 80% of the value.  If you had a claim, and it was determined you did not insure the property for at least 80% of the value, your insurance company would reduce the amount of your claim proportionately to the percentage you carried.  

For example, suppose your commercial building was valued at $100,000, but you choose to only insure it for $50,000, which is half the actual value of the property.  If you were to have a claim for $10,000, you would only be paid $5,000 (half the claim amount) less any applicable deductible.  

However, if you insured the commercial building for $80,000 (80% of the building’s value) you would not be penalized and would receive a claim check for $10,000 less any applicable deductible.

Do remember though, a coinsurance clause should not be an enticement to insure your property for less than the actual value.  In the event of a total loss, the maximum amount the policy will pay for your property is the amount you insured it for.

While it is your responsibility to establish the value of your property and select the amount of insurance for your policy, we can help with that decision and explain what you can do to avoid a loss penalty. Call us today for a Austin commercial insurance quote at 512-518-6292.

The Difference Between Replacement Cost and Actual Cash Value on a Home

Most people know that Insurance companies are good about reimbursing you when you have experienced a loss that falls within the parameters of your  home insurance policy. But how much do they know about the mechanics of that reimbursement? What you might not realize is that your insurance policy may entitle you to one of two different methods of calculating your insurance benefit. These methods include calculating for either replacement costs or actual cash value reimbursement, and there is a remarkable difference between the two.

Actual Cash Value

Actual cash value refers to the value of your property, generally acknowledged as fair market value. Fair market value is understood to be the amount that a fully knowledgeable buyer would pay for your property if he or she was given a reasonable period of time to decide to do so. It takes into consideration any depreciation, changes in property value, and upgrades you might have made to improve its value.
Receiving the actual cash value for your home (assuming your home insurance policy limits permit that) is great for making you financially whole again and keeping your net worth in stasis, but it might not be enough to rebuild your home on the current property because your actual cash value might not be equal to the costs of rebuilding. This means you would either need to buy a new home or pay for some of the rebuilding expenses out of your own pocket.

Replacement Costs

Replacement cost means that you will get the cost to rebuild your home after a total loss. In most cases, replacement costs can be paid when you’ve insured your dwelling for at least 80 percent of the full replacement cost of the property...

Continue reading "The Difference Between Replacement Cost and Actual Cash Value on a Home" or contact us at 512-518-6292 to get a free Austin home insurance quote.

Understanding Business Auto Insurance

Almost every business owner has asked him or herself—Do I need business auto insurance? Many try to justify not having a business insurance policy by thinking about the fact that their business doesn’t own a vehicle, even though their employees use their own automobile for business errands. Or, they assume that their personal insurance policy will suffice since they are the only people who drive the company vehicle.

The real answer to the question is actually very simple, is universally applied and has no caveats:

If you have a vehicle that you use for your business, or, if your employees use their own cars to do business for your company, then you need a business auto insurance policy.

 

Understanding Why You Need Commercial Auto Insurance

The whole point of auto insurance is to protect your financial future. If you have an auto insurance policy you have it because you want it to make you whole after an insurable event. But when you try to cover a business car on a personal policy and an insurable incident occurs you will not be made whole. Instead, it is likely that your claim will be denied and your policy dropped.
The result of having a denied claim can be devastating. Not only can this hurt your business when you lose the benefit of your vehicle but, depending on the insurable incident, you could have a larger financial liability than just lost vehicle use and repair bills. You could have damages from collision liability, bodily injury and even liability to your clients and their items in your possession.

Continue reading "Understanding Business Auto Insurance" or contact us at 512-518-6292 or fill out an online Austin business auto insurance quote.

Austin Home Insurance: Reducing Seasonal Liability Risks

Every season brings with it a unique weather pattern, an interesting affect on plant life, and liabilities that leave homeowners at risk for expensive property and injury claims. Let’s take a look at each season and the unique risks homeowners need to look out for.

Winter

In the winter, homeowners face frozen, icy driveways and walkways that create the perfect area for a neighbor to slip and fall.  Also during the winter snow can pile up on your favorite trees, the risk of falling branches injuring a visitor or a neighbor’s personal property increases. In order to reduce these risks, make sure you keep your driveway and walkway clear of snow and ice and you regularly shake your tree limbs to prevent snow from multiple storms from building up on the branches.

Spring

In the spring, as your grass, shrubs and flowers begin once again to bloom; you may find that you need the assistance of a lawn care company to get your yard into shape after the difficult winter season. When you hire a company to take care of your lawn on a one-time or recurring basis, make sure they have the proper Austin home insurance policies and licensing required for your area. Before they come to your home, check around your yard and remove any potential dangers including loose rocks or walkway stones.

Summer

Summer is the perfect time for pool parties and barbeques, but it’s also the time for risky poolside behavior and the liabilities that accompany it.  Make sure you have fencing around your pool to help prevent accidents and be sure to keep children away from the grill or smoker. Finally, make sure you don’t leave any flames or fires unattended.

Fall

With its orange leaves and cooler days, fall seems like the perfect season to many. But leaving fallen leaves on your sidewalk creates a slippery and dangerous surface that could result in a liability claim against your insurance policy. Make sure you keep your driveway and walkway clear of leaves by raking or blowing them regularly.

You should be able to enjoy your home year-round, and while each season has opportunities for liability that you need to be aware of—you can also work out a means to reducing those liabilities and the expenses that follow.

 

Contact Contractors Insurance Services to discuss insurance coverage at 512-518-6292 or fill out an online Austin homeowners insurance quote.