Archives: 2019

December Client Newsletter: From Our Family to Yours

https://mailchi.mp/d630aefbf239/from-our-family-to-yours

Three Uncommon Life Insurance Scenarios

In most cases, when the insured on a life insurance policy dies, the proceeds are paid out to named beneficiaries without a hitch. However, you should be aware of certain unusual scenarios that could occur. Speak with our knowledgeable agent for professional help in avoiding potentially tricky situations with your life insurance policy.

Beneficiaries & Insured Persons Die At The Same Time

It is not uncommon for a husband and wife to each purchase a life insurance policy, naming the other as beneficiary. This makes sense because if one spouse dies, the death benefits will go to the surviving spouse and can be used to provide for any children and other needs.

But suppose the husband and wife are traveling together, and both die in the same fatal car accident. In this case, there would be no surviving beneficiary for either life insurance policy. Each spouse’s policy would become part of his or her estate and subject to probate.

A simple solution to this situation is for both the husband and wife to name secondary beneficiaries, or even final (third) beneficiaries for their life insurance policies. Then, in the event they both die in the same accident, the life insurance proceeds will be paid out to someone they themselves have chosen.

The Life Insurance Beneficiary Is A Minor

A divorced woman with a child may decide to purchase a life insurance policy. Naturally, she wants her child to be provided for in the event of her death, so she names her minor child as beneficiary on her policy. If the woman dies unexpectedly while the child is still a minor, the life insurance company will not pay the death benefits directly to the child. The matter will have to go to court, and the court will have to appoint a guardian to manage the proceeds until the child turns either 18 or 21, depending on the state.

This complication could be avoided by setting up a trust for the benefit of the child and naming the trust as the beneficiary on the life insurance policy. This arrangement would allow the mother to personally determine who would manage the funds for her child’s benefit by naming that person as trustee. Another option would be to name an adult custodian of the life insurance proceeds under the Uniform Transfers To Minors Act.

Someone Other Than The Insured’s Spouse Is Named As Beneficiary In A Community Property State

A person who buys a life insurance policy may choose to name someone other than his or her spouse as a beneficiary. Generally, a policyholder can name anyone he or she chooses as beneficiary, as insurance companies do not make moral judgements about who should get the money.

However, if the insured lives in a community property state, this could be a problem. In community property states, both spouses own equally any income earned during the marriage and any property, including life insurance, purchased with that income. If the life insurance policy was purchased with funds that are considered community property, the surviving spouse would have a right to a portion of the death benefits, no matter who was named as beneficiary.

Understanding Kidnap & Ransom Insurance

Kidnapping for ransom is a lucrative business for perpetrators and more prevalent than you may think. The Insurance Information Institute (III) reports that kidnapping for ransom is on the increase.

Prime targets are wealthy businesspeople and their families, professionals traveling abroad, journalists, and aid workers. Most kidnappings of Americans for ransom or extortion occur in Mexico, Columbia, Central or South American countries, parts of Africa, or the Middle East. As a result, kidnap and ransom insurance is becoming an increasingly popular product.

Who Needs Kidnap & Ransom Insurance?

Kidnap and ransom insurance is available as part of a comprehensive business insurance package, as a stand-alone policy for individuals, and as part of homeowners insurance policies issued by a few insurance companies. Corporate kidnap and ransom insurance is designed to help companies and organizations minimize the financial impact of kidnapping, extortion, and illegal detention. Organizations that may need this type of coverage include:

• Public companies
• Private companies
• Financial institutions
• Nonprofit organizations
• Missionary or human rights groups
• Schools and universities, particularly those with daycare facilities and study abroad programs
• Healthcare facilities
• Entertainment companies

Individuals traveling or doing business in an area of the world that is known as a hotspot for civil unrest, economic instability, or clashes between law enforcement or the military and citizens should consider kidnap and ransom insurance. This coverage is also recommended for individuals with a high profile or a high net worth.

Reasons To Consider Corporate Kidnap & Ransom Insurance

• Thousands of kidnappings occur worldwide every year.
• Expenses associated with kidnapping and extortion or illegal detention can significantly impact your organization.
• Even companies that do not have a global footprint and nonprofit organizations are at risk.
• Purchasing this coverage helps mitigate risk to your company’s most valuable asset – your employees.
• Preparation and preventative measures are part of the cost of doing business, and they provide peace of mind for your employees while also protecting your company’s financial stability.

What Types Of Coverage Does Kidnap & Ransom Insurance Provide?

Kidnap and ransom policies cover some of the expenses associated with dealing with kidnappers and their demands. Corporate policies typically cover hostage negotiation fees, lost wages, and the amount of the ransom. Individual kidnap and ransom policies help cover the cost of dealing with a kidnapping, but will not reimburse you for ransom payments. They generally cover the cost of emergency evacuation from remote or dangerous areas.

This type of policy will help pay for trained hostage negotiators. These professionals know how to secure proof of life, when to call the police and when not to (where corruption exists), how to negotiate with kidnappers and terrorists, and how to ensure the return of the captive goes smoothly.

At least one insurance company offers kidnap and ransom insurance that covers:

• Injury, death, and funeral expenses resulting from a kidnapping incident
• Public relations services for high-profile kidnap cases
• Psychiatric treatment for victims
• Medical and legal advice
• Reward payments
• Unlimited expenses for a crisis response team certified by Homeland Security

Whether you are a business owner or an individual planning to travel abroad, our friendly agent can help you find the best quote on the right kidnap and ransom insurance to suit your needs.

Will My Homeowners Insurance Cover Damage To My Yard?

Each homeowners insurance policy is different. Our knowledgeable representative is ready to discuss your current coverage with you and help make sense of what you have. Generally, homeowners insurance covers a broad range of potential damages that includes the dwelling itself and other structures on the property, such as a fence, shed, or driveway. The following can give you an idea of what is – and is not – usually covered by homeowners insurance.

Homeowners Insurance Coverage For Damage To Structures On The Property

Your homeowners policy may help cover damage to structures on your property caused by a covered peril, such as a fallen tree or a storm. It may also cover structures external to the dwelling, including your:

• Fence
• Shed
• Detached garage

Wind damage to a fence or other insured structure is typically covered by homeowners insurance. If a healthy tree on your property falls and damages a structure, your homeowners insurance will likely pay to repair or replace the structure and remove tree debris. If a neighbor’s tree falls and causes damage on your property, you may still file a claim on your homeowners insurance policy. However, your insurance company may try to recover the costs from your neighbor’s insurance if there is evidence that the tree was weakened by disease or lack of basic maintenance.

Coverage For Landscaping Under Homeowners Insurance

Most standard homeowners policies will pay to replace trees, plants, and shrubs that are damaged by covered perils. These perils typically include:

• Fire
• Explosions
• Lightning
• Theft
• Vandalism
• Damage caused by someone else’s vehicle

However, certain common risks to landscaping are not generally covered by homeowner’s insurance. Perils that are typically not covered include damage from weather, such as wind, hail, and the weight of snow and ice, as well as damage from insects, pests, and diseases. Some insurance companies offer optional coverage to provide additional protection for landscaping.

When Structures Are Covered, But Not Landscaping Is Not

If a tree on your property blows over in a strong wind and damages a structure such as a fence or shed, homeowners insurance would not typically pay to replace the tree, although it may pay to repair the damaged structure. If a tree falls on your property and damages a structure, your homeowners policy will likely cover the cost of removing the tree. However, if a tree falls and no structure is damaged, your homeowners insurance will not cover the cost of having the tree removed.

How Negligence Factors Into Homeowners Insurance Coverage

Please note that if your own negligence led to structural damage on your property, your insurance is not likely to cover it. For example, if a tree on your property has started to rot and you fail to have it removed, your homeowners insurance will not cover the resulting damage if the tree falls and damages your house or another structure on your property. On the other hand, if a rotting tree in your neighbor’s yard falls and damages your home or structures in your yard, your insurance may help cover the damage.

5 Ways To Digitize Your Old Home Movies

Memories stay with you for life. But old tapes and film reels aren’t designed to hold them for nearly as long. It’s true that film, VHS tapes, and DVDs can preserve your home movies for years (or decades) in the right environment. But even if they’re stored in a cool, dry place, the materials can […]

Liquor Liability Insurance Vs. Brewery, Vineyard, and Distillery Insurance

Both the popularity and number of craft breweries, vineyards, wineries, and distilleries are on the rise in the U.S. However, these types of businesses can have complicated insurance needs. Any establishment that has a tasting room or serves alcohol needs liquor liability insurance, but that is only the beginning of the coverage you may need. Our knowledgeable agent can help ensure you have the right insurance at the best available rates.

What Does Liquor Liability Insurance Cover?

Liquor liability insurance can be tailored to suit your business needs. Standard coverage under this type of policy includes:

• Third-party bodily injury: If someone becomes intoxicated at your business and injures another person, this coverage can help pay for immediate medical expenses or legal expenses in the event the injured person sues your business.
• Third-party property damage: Liquor liability insurance can cover the cost of replacing or repairing property damaged by an individual who became intoxicated at your establishment.
• Legal costs: If a lawsuit is filed against your business as a result of an incident involving an intoxicated patron, your liquor liability insurance can help cover attorneys fees, court costs, and settlements.

Insurance Protection For Breweries, Vineyards, & Distilleries

If you are the owner of a brewery, vineyard, or distillery, your exposure to risk can be wide ranging. Your brewery insurance, vineyard insurance, or distillery insurance package can be custom-tailored to suit your business needs, and may include any or all of the following types of coverage:

• Business income
• Contract cancellation
• Key employee replacement
• Processing water
• Food contamination
• Product recall
• Tank collapse or leakage
• Liquor liability

Your commercial property insurance can be designed to provide increased or expanded coverage, which may include:

• A restaurant property endorsement (for operations that include a restaurant)
• Product contamination or adulteration endorsement (protects you against accidental contamination of your beverage product while it is being processed)
• Equipment breakdown coverage (extends your property insurance to cover loss to real and business personal property caused by a sudden breakdown of machinery or equipment used in your business)
• Protection against loss from crime (including employee theft, computer fraud, funds transfer fraud, forgery and alteration, theft of money and securities, and losses from accepting money orders and counterfeit money in good faith)
• Liquor tax bonds, state and federal (enables you to meet requirements to ensure payment of taxes due to governmental entities as an establishment that sells alcoholic beverages)

Winery & Vineyard Insurance

Vineyard and winery owners face unique risks, including property exposure to extreme weather, wine spoilage and leakage, chemical drifts, and liability claims. If your business is a vineyard, you will need a standard business insurance package that includes:

• Commercial property insurance that covers your buildings, structures, barrels, equipment, tools, and wine products.
• Liability insurance that includes basic and comprehensive liability coverage for bodily injury and property damage, personal injury and advertising injury, product liability, fire legal liability, liquor liability, personal liability (for sole proprietors), and chemical drift liability.

A variety of optional coverages are also available to vineyard owners. These options include coverage for:

• Wine stored off premises or stored for others
• Special events
• Business income and extra expense
• Equipment breakdown
• Fine arts
• Computer/electronic data processing equipment

7 Safety Tips For Hanging Holiday Lights

The holidays are here, and all is merry and bright. Before you string the lights, consider these quick safety tips. Light check: Before hanging lights, check for frayed wires and throw them out if anything is exposed. Also replace any missing or burned out bulbs. Look for the “UL®” stamp: Red UL® stamps mean lights […]

Choosing, Transporting, & Caring For A Live Christmas Tree

There’s something about the experience of cutting down your family’s own Christmas tree that starts the holiday season. But did you know there’s a lot to know about live trees? From choosing one to transporting it home and keeping it fresh through the holiday season, there’s something we can all learn. That’s why we’ve called […]

Do I Need To Insure My Boat During The Winter When I’m Not Using It?

If you own a boat, you are not alone if you are wondering why you need boat insurance year round when you are only using your boat in the warmer months. In fact, some boat owners cancel their boat insurance after every boating season to save on premiums. However, this can actually be more costly in the long run. The following are some good reasons to carry boat insurance all year long.

You May Be Required By Your Lender To Carry Boat Insurance

Boats are expensive to buy. If you financed your boat, as opposed to paying cash, it is probably a requirement of your lender that you carry boat insurance year round. Lenders need their investment protected, even in the off season. If you dock your boat, the marina may also require that the boat be insured.

Coverage For Your Boat Under Your Homeowners Insurance Is Limited

Your homeowners insurance policy will only cover damage to your boat that occurs while the boat is on your property. Also, the amount of coverage provided under a homeowners policy is substantially less than boat insurance provides. The typical boat insurance policy covers:

• Collision damage: Repair or replacement of your boat if a collision occurs.
• Bodily injury liability: Protects you from liability for injuring another person in a boating accident.
• Property damage liability: Protects you from liability for damage to the boat, dock, or other related structures or property of another.
• Comprehensive: Covers you against theft, vandalism, or damage to your boat caused in an incident other than a collision.

There Is No Off Season For Natural Disasters

Your boat is still vulnerable to damage while it is in storage. Depending on where you live, there may be a risk of damage from fire, flooding, or hurricanes. In the event of a natural disaster, having boat insurance could save you many thousands of dollars.

Fire, Theft, & Vandalism Can Happen All Year Round

A boat is a major investment. You would be wise to protect it from potential risks, even when it is not in the water. Your boat insurance policy should provide protection against fire, theft, and vandalism, at a minimum. These events are even more likely to occur during the winter when boatyards may be unattended.

Carrying Boat Insurance Year Round Is More Cost Effective In The Long Run

Canceling your boat insurance for the winter months and starting it up again in the spring may actually increase your costs overall. Most insurance providers will reward policyholders for each claim-free year with a reduced deductible and give loyalty discounts for maintaining coverage and renewing policies annually. If you cancel your boat insurance policy at the end of every boating season, and you ever need to make a claim, you will have to pay the full deductible. You will also miss out on any loyalty discounts you might earn by continuing your coverage.

Speak With An Experienced Agent About Boat Insurance

No one wants to pay more for insurance than they have to, but not carrying boat insurance year round can cost you money in the long run. Our knowledgeable agent can help you find the most cost-effective approach to boat insurance and help ensure you have the coverage you need.

How To Shop Safely Online This Holiday Season

You’ve got your comfy pants and your credit card – now, it’s time to knock out your holiday shopping. There’s no doubt online shopping is convenient… but it does come with a fair share of risk, too. Identity theft can happen just as quickly as you can click, “Add to cart.” Fortunately, there are ways […]