/ By Paul Nelson / Business Insurance • Commercial Insurance • General Liability • Home Insurance • Insurance • Renters Insurance • Uncategorized/ 0 Comments

Understanding Liability Coverage

What is liability coverage?

Liability coverage pays for costs you’re legally responsible for if you injure someone or damage their property. It’s one of the most important parts of most insurance policies.

How much liability coverage do I need?
There’s no single right answer, but here’s a simple framework to consider:

State minimums: Most states require a minimum amount — but minimums are often not enough
Your assets: The more you own, the more you could lose in a lawsuit
Your income: Future earnings can also be targeted in a judgment
Your risk tolerance: Higher limits cost more but offer greater protection

General rule: Buy as much liability coverage as you can reasonably afford, at least enough to cover the value of everything you own.

Are state minimum limits enough?
Usually not. State minimums set the floor — the least you’re legally allowed to carry. They’re rarely enough to cover a serious accident or lawsuit. If damages exceed your limit, you pay the difference out of pocket.

When should I consider higher limits?
Consider higher limits if you:

  • Own a home, savings, investments, or other significant assets
  • Have a high income or earning potential
  • Have teenage or new drivers on your policy
  • Own a pool, trampoline, or other “attractive hazard”
  • Frequently host guests at your home

What if I need even more protection?
An umbrella policy provides additional liability coverage beyond your standard policy limits — often $1 million or more — at a relatively low cost. It’s worth asking about if you have significant assets to protect.

Who can help me choose the right limits?
An insurance agent or advisor can review your specific situation — your assets, income, and risks — and recommend appropriate coverage limits. It’s worth having that conversation before assuming the default is enough.

/ By Paul Nelson / Home Insurance • Insurance • Renters Insurance/ 0 Comments

Replacement Cost vs. ACV

On your homeowners insurance policy, you’ll see either “replacement cost” or “actual cash value (ACV)” as the claim payout method for your home and belongings. If your home has been updated (roof, plumbing, heating, electrical) within the last 30 years it likely has replacement cost coverage as a default. With older homes or roofs in bad condition, it’s not uncommon to see ACV coverage.

Actual cash value takes depreciation into account, and is the lesser coverage. Take your 10 year old TV and try to sell it on your own today, and it’ll likely be worth pennies on the dollar compared to what you paid for it. Your 40 year old roof may be worth 10% of what it would cost you to replace with a brand new one.

Replacement cost doesn’t factor depreciation into account. That means your 10 year old tv gets replaced with a brand new equivalent, and your roof does as well.
If it’s an option, you want replacement cost every time on your home and personal property.

/ By Paul Nelson / Car Insurance • Commercial Insurance • Home Insurance • Insurance • Renters Insurance/ 0 Comments

How to Make Your Insurance Claim Go Smooth As Butter

 

Insurance claims suck! They’re stressful, slow, confusing, and worst of all you’re filing one because something bad happened. After being part of hundreds of claims, I wanted to put together some of the best practices that we and our clients have used to make them a LOT less painful for everyone.
Probably the biggest time saver of us all is utilizing your insurance company’s in-network companies. Whether that’s an approved auto body shop they work with, a restoration company for your home, or a physician network for workers comp., this is going to save massive time and headaches. Most policies allow you to fix your car or repair your house from whomever you choose, as long as your adjuster approves of the repairs. It can take a week or longer for that negotiation between the adjuster and body shop to get an approval. And that’s before the repairs can even start! When you go with a body shop in their network, the body shop acts as your adjuster, and can start repairs immediately. You’ve saved yourself a week +, and the work is now probably guaranteed for the life of you owning the car. Win-win.

Be flexible for your adjuster. Unless you’re doing something that can’t wait, pick up the phone if they call. They’re probably working on dozens of other claims besides yours, and getting them on the phone is usually pretty tough. They return calls when they have time, and 9/10 times you’re going to get their voicemail if you call them. If you miss their call it coule be hours or a day before you can get back in touch.

To piggyback on the last point; be organized. Have all your questions written down, and go into calls assuming this is your one chance for the day to speak with the adjuster. It might be hours or the next day before the adjuster can get back to you.