Make Your Insurance Claim as Easy as PIE

How to Make Your Insurance Claim as Easy as PIE

There’s been an incident. You need to start the claims process. To many in this scenario, this responsibility not only looms large, but can feel intimidating. Whether the situation involves an employee injury, an auto accident, or property damage, follow this PIE recipe to make the process faster, easier, and less intimidating.

Photograph: Capture images of the scene. Photograph vehicle damage, physical injuries, and the location of the incident. Documenting everything when it happens will help provide accurate information for all parties involved.

Inscribe: In addition to taking photos, write down all the details. Things may seem crystal clear at the time, but memories fade. Create clear notes that cover who is involved, where it happened, what time, what the circumstances were, and any other pertinent data. This material will be helpful for insurance providers as well as for you when you review the situation later on.

Expedite: File the claim ASAP. The sooner you can get all the information to your insurance provider, the better. Fresh information is clearest. Supplying details right away also allows the carrier to provide quicker and more accurate service.

As you go through this process, keep in mind that your insurance provider is your partner, there to help you through every step. Like you, the insurer wants your claims process to be as efficient and painless as possible.

Contact your agent if you have questions, and respond as quickly as possible to your insurer’s requests. Providing additional documentation or statements in a timely way will help create a seamless process for your claim.

HOT BIZ TRENDS

GIGO Is Impacting Decision Making – and Not in a Good Way

Some decision makers will talk the talk about leveraging data to increase revenue and better serve their customers. But when it comes to walking the walk, they stumble.

Although the data ecosystem has spawned a dictionary of buzzwords such as “predictive analytics,” “Hadoop,” and even the term “Big Data” itself, many remain skeptical about the quality behind the buzzwords. It’s the GIGO syndrome – Garbage In, Garbage Out – and it’s affecting businesses both small and large.

In a study of more than 1,400 data professionals, conducted by information services company Experian, 84% of US respondents say Big Data is essential to successfully executing their business strategies.

But while they recognize the power of data, they lack confidence in their own information; the study noted that businesses believe 27% of their data is inaccurate.

To be reliable and valid, data input must be complete and linked across all input sources, as well as accurate, consistent, and timely.

Unfortunately, many businesses are hampered by legacy data collection methods or siloed corporate structures that undermine the confidence in the quality of the data they collect.

Obviously, conclusions based on faulty data are useless or even misleading, so strategists are reluctant to base new initiatives, fiscal decisions, or significant operating changes solely on their own data.

However, even with data of proven quality, many still rely on educated guesses or gut feelings when making critical decisions or planning future strategies.

The result: The GIGO syndrome is slowing or eliminating many business growth opportunities, and with that, success.

MANAGING

Desperately Seeking Leaders … for Today and Tomorrow

Real leadership requires two things: a vision of what’s possible, and a talent for motivating others to make that vision a reality.

But how do we recognize leadership when we see it? And more important, how can we build those all-important leaders of tomorrow, today?

In a recent Entrepreneur article, writer Nicolas Cole describes leadership as a set of steady-state personality traits: “It’s not something you choose to be one minute and then choose not to be the next.”

Cole believes leaders know what they don’t know, which inspires them to be good listeners, smart thinkers, and conscientious seekers of information. As he tells us, a leader doesn’t want to be the smartest person in the room; leaders prefer to surround themselves with those who are experts in their fields.

Cole identifies nine behaviors of real leaders, ranging from never acting on the spur of the moment to always doing what needs to be done to making criticism constructive rather than negative.

Of course, some of these behaviors are innate. But business leaders hope they are teachable, too. In an article for People Matters titled “Creating Tomorrow’s Leaders,” author Guillaume Gevrey describes the latest approach to building tomorrow’s leaders: “(Companies) are now looking at creating leadership incubators to impart the required leadership and management skills… . Leadership incubators, also popularly known as greenhouse (programs), are based on action learning.”

Convinced that action learning is the essential ingredient required for creating tomorrow’s leaders, Gevrey adds: “For participants, it is a more engaging way to develop critical skills that they will need as they grow in the organization but also a sign that their leadership trusts them to solve mission-critical problems.”

Positively visionary!

INSURANCE

Is Your Business Prepared for a Disaster?

You may have the best plans in place for marketing, customer service, and growth, but if your business isn’t prepared for a disaster, it could all be for nothing.

When disaster strikes, businesses that aren’t prepared often don’t survive. Whether it’s natural or man-made, a major catastrophic event could close your doors forever if you’re not ready for it. It’s essential to get up and running again quickly. And this is possible only if you plan ahead.

Help prepare your business for disaster (and prevent minor events from becoming disasters) with these suggestions:

Evaluate and rate your risks

Start by evaluating your business. What disasters are you most likely to encounter? Rate them in terms of probability and severity – would your business be more affected by a hail storm or by a data breach? Once you’ve determined where your biggest risks lie, you can focus your efforts on protecting your business.

Back up data safely

It doesn’t matter the type of business; in today’s marketplace, every company relies on the electronic files that are critical to its operations. Have you backed up this information somewhere safe? Cloud storage now makes this process fairly simple for small businesses. Make sure all your critical data is backed up daily, and ensure you and your employees know how to access backups in case of emergency. You should also verify regularly that your backup systems are functional and reliable.

Communications plan

Do you have an emergency communications plan? If your business flow is interrupted by disaster, you need to be able to communicate both internally and externally, even when regular means of communication are down. Establish backup communication channels now so they’re ready when you need them.

Employee involvement

You may need to protect some aspects of your disaster preparedness measures, but do share as much of your disaster preparedness plan as possible with employees, so they know what their roles are in an emergency. Conduct drills, and develop an emergency preparedness manual to discuss in employee meetings. Answer any questions your employees might have.

Available resources

You don’t have to make these preparations alone. In fact, you shouldn’t; you have important internal resources available. Enlist the help of key employees. Assign them roles to fill if your company is faced with a disaster.

As well as internal resources, you also have a number of external resources available to you. The Small Business Administration, for example, offers emergency preparedness resources, including a strong focus on disaster recovery options. The link is www.sba.gov

Your insurance provider is also a resource. Discuss with your agent whether you have sufficient insurance coverage in the event of a disaster.

In considering your company’s degree of disaster readiness, have you now identified areas where you may not be prepared? Don’t wait; deal with these gaps now. Disasters are rarely expected. You may not know when they are coming, but you can take the right steps to ensure your business is prepared – and can fully recover – when one hits.

Car Insurance When Crossing Borders

What Happens to Car Insurance When Crossing Borders?

Are you planning a road trip? Does your adventure include crossing international borders? If so, make sure you have proper auto insurance before you hit the highway.

Most U.S. and Canadian insurance policies cover both countries. Insurance laws differ between the two, but your policy includes a provision for travel across the border. When you cross, your policy is still active. In addition to this documentation, you should also pack your proof of citizenship.

Traveling to Mexico is different. You must purchase a separate policy from a Mexican insurance provider. You may be able to purchase coverage as you cross, but having it in place before you start your trek is preferable.

Do you plan to leave your car at home and travel abroad? If you rent a car in another country, your insurance policy doesn’t provide coverage. You will need to purchase rental insurance. Check with your credit card company to see if they will pick up any CDW (Collision Damage Waiver) coverage if so you may only have to buy the liability coverage. Check on which countries they will cover.

Is Your Pet Trying to Tell You Something?

Pets can be loyal companions, but sometimes humans aren’t. You’re not mean; you just don’t always get it. So Reader’s Digest has compiled a list of things we furry family members would like you to understand, such as:

Teach us good behavior early, and be consistent.

We dogs wag our tails to show approval, but also when we’re afraid. Tail-wagging doesn’t always mean we want to be petted.

Cats are hunters – we want toys we can grab, not laser lights.

Soft Frisbees don’t hurt doggy gums so are better for playing fetch.

Don’t waste money on gluten-free pet food.

Treat us as you’d like to be treated if you were lucky enough to be a dog or a cat!

What Is the Best Exercise on the Planet? You Decide

It’s generally agreed that cycling is the best exercise on the planet – unless you ask walkers, who say nothing beats walking for a whole-body workout. And the debate goes on.

As it turns out, the workout you get depends on the modality you choose, and both activities are good forms of exercise – for different reasons.

Do you want to bulk up or slim down? Are you looking to increase endurance? Is your concern long-term cardiac fitness or short-term shaping?

Both biking and walking provide aerobic exercise, so they increase heart rate and are likely to improve cardiac function. They also exercise muscle and burn calories, which can be important if weight loss is your ultimate goal (although there’s debate on that, as well).

According to Jessica Martinez with Livestrong.com, “A 130-pound person, walking at a moderate pace…burns 60 to 70 calories per half-hour.” Martinez adds, “Walking can reduce belly fat, lower blood pressure, and raise your production of HDL, or ‘good’ cholesterol.”

But, in another Livestrong article, Deborah Green writes, “A person who weighs 160 pounds will burn about 288 calories in one hour of cycling at a leisurely pace.” And strenuous biking can make muscles work harder, so if you’re going for that “ripped” look, biking may beat walking.

John Metcalfe (sort of) sums it up in CityLab. “As efficient as walking is, biking is more efficient, having the lowest energy cost of all transportation options, including walking, swimming, driving, ride-sharing, taking the train, and trotting through a sun-dappled meadow on a horse.” Biking? Walking? The debate continues. Swimming, anyone?

How to Make Your Auto Insurance B.E.T.T.E.R.

For most of us, car insurance is not an expense we can avoid. The good news is, while we may not be able to eliminate the cost, we can make it B.E.T.T.E.R. Here’s how:

Buy a car with insurance in mind: When it comes to insurance, not every car is created equal. If you’re purchasing a car, consider how much the insurance will be. Vehicles with certain features and good safety records are cheaper to insure. Consult with your agent as you car shop to determine your best options.

Embrace a higher deductible: Many people get anxious at the thought of a higher deductible. Don’t be intimidated. It could actually save you in the long run. You may be able to reduce your premium by up to 40%.

Take teen discounts: Insuring your adolescent children can get pricey. Take advantage of any discounts available. Do they get good grades? Will they be away from home for college (and only need coverage during breaks)? Can you assign them to your least-expensive vehicle? Ask your agent what options are available.

Trim your coverage: Do you have an older vehicle? If you have full coverage, you may be over-insuring the car. Check its value. If it is less than 10 times the premium cost, it might be best to drop any coverage beyond liability.

Establish good credit: Research reveals that people with better credit scores make fewer insurance claims. As a result, many insurers use credit information to help determine insurance rates. Stay out of debt, pay bills on time, and check your credit score regularly to ensure all the information is correct.

Request other discounts: Talk to your insurance provider about additional discounts that might be offered. Common discounts include multipolicy, good driver, limited mileage, and antitheft devices.

Insurance gives us piece of mind, but by making it B.E.T.T.E.R., we can feel comfortable financially, too.

Is It A Suit Or A Claim?

Is Separate Coverage Required for Suits vs. Claims?

You’ve heard of employees filing a suit against their company. You’ve also heard of people making a claim against their employer to demand financial compensation. So what’s the difference? Are these the same? Do you need separate insurance policies to cover claims and suits?

Suit definition: A suit is a proceeding involving damages due to personal injury, property damage, or bodily injury. It is a civil action, not criminal. Suits also may involve arbitration proceedings and other forms of alternative dispute resolution.

Claim definition: A claim is a “demand” for damages. If a lawsuit involves demands for damages, it is considered a claim. However, not every claim is a lawsuit. Some claims are “requests” for damages, as occurs when an employee doesn’t file a lawsuit but has sent a letter with a complaint requesting money for specific damages. If the request is not met (or not met by a specified date), the employee may then file a lawsuit.

Insurance Coverage: Both claims and suits are typically covered by general liability policies. However, specific circumstances may require endorsements that protect against those particular scenarios.

It’s important to respond promptly to either a suit or a claim made against your company. If you are faced with one, it’s also essential to contact your insurance provider as soon as possible to determine your coverage. Often, providers must approve settlements, such as those made in arbitration, for coverage to kick in.

Ensure you have the proper policies in place by discussing options with your agent.

PRODUCTIVITY

It May Be “Borrrring,” but if It Boosts Creativity, Bring It On

For the chronically bored among us, here’s a news flash: we actually need (to a certain extent) that state of ennui. In fact, it’s good for us. Perhaps, like banging our heads against a wall, it feels good when we stop. It seems, after time spent being bored, we’re psyched to come up with creative ideas.

This is great news for employers, who sometimes find their employees (or themselves) procrastinate when asked to perform tedious but important tasks. Now science sees boredom as a phase that ushers us into a state of creativity, according to a recent article in Wired online.

As Wired writer Clive Thompson notes, separate experiments by researchers at the University of Central Lancashire and Pennsylvania State University suggest that boredom can actually be leveraged to enhance creativity and abstract thinking.

After engaging in a series of dull, mundane tasks, participants in both studies saw improvement in their creative output. In one, bored subjects came up with more and better ideas than a control group. The explanation may be that their minds were actually primed for the curiosity and creativity that comes after boredom.

These days we often escape boredom by turning to our devices. We seem frightened of being bored. Instead of seeking to escape through our phones and other diversions and activities, we should, as Thompson says, “lean into it,” and consciously experience the journey through boredom to curiosity, and ultimately, to creativity.

We need periods of ennui to come up with the creative ideas that employees welcome and employers value. But not the kind of boredom that disincentivizes us (lethargic boredom). Instead, call it “useful boredom” – acknowledged as valuable in its own right.

HOT BIZ TRENDS

Have You Considered Every Option to Grow Your Business?

You’re an entrepreneur with ambition, and the next step in your upward trajectory is deciding how to grow your small or medium-sized business.

One option you may not have considered is franchising. Does your product or service lend itself to this kind of business model?

If so, here are some things to consider when thinking through the franchise option.

Isaac Singer (of Singer sewing machines fame) became the first franchisor in 1851 when he contracted with other entrepreneurs to sell his products in different locations, ensuring a broader customer base for his sewing machines.

The franchise sector grew dramatically in the 1950s, when restaurants began to expand through franchises.

This year the International Franchise Association expects a 5.2% increase in the franchise industry’s gross domestic product, to a total of $426 billion.

Annual job growth in the sector has also been higher than that of other business categories for the past five years.

As a franchisor, you will be the parent company, and other entrepreneurs will purchase the right to operate a separate location of your business.

The contract between the franchisor and the franchisee defines the rules under which the new location will operate, but among other things, the franchisor will dictate quality control and management philosophy to ensure the new location maintains the same standards as the parent company.

Finally, realize that you’re putting on the line the “goodwill” you’ve built up over the years, and make certain that you and your franchisees are on the same page.

INSURANCE

FAQs on Employee Benefits Liability Coverage

A good benefits package can enhance your business by attracting employees and retaining current staff. But there’s a downside: errors in the administration of benefits can result in lawsuits against your company. If this happens, your employee benefits liability (EBL) policy will kick in. How? Here are some FAQs on this important coverage.

What is employee benefits liability coverage? Employee benefits liability insurance protects your company against suits that result from administrative errors. If someone managing your employee benefits makes a mistake and this error results in a lawsuit, EBL protects you from the associated costs. These types of suits are not covered by general liability policies, making this additional coverage a very important add-on; EBL coverage is typically added to your general liability policy as an endorsement.

What kinds of mistakes? Employee benefits packages can be extremely complex. From life insurance policies to maternity leave, these benefits involve minute details and significant administration. When an error is made, affected employees can suffer major financial losses. EBL is available to cover these situations, including:

Descriptions of benefits and eligibility. When explaining coverage to your employees, you or your benefits manager may convey incorrect information, and the employees are more than likely to make benefits choices based on this erroneous info. This decision could cost them down the road, and they may hold you liable for their financial burden. If a lawsuit is filed because of your error, EBL has you covered.
Losses of electronic and/or paper records. Maintaining records of all benefit information is essential. If your HR department accidentally loses a benefit file, the loss could prove costly. If your employee suffers because this information is missing and sues you, your EBL insurance covers the costs.
Enrollment, maintenance, and termination of employees and beneficiaries. If your benefit packages are complex, it can be easy to miss a detail. One mistake on a form could omit an employee’s beneficiary from that person’s plan. Mistakes such as these are covered by EBL insurance.

What plans are covered? EBL offers coverage for a full range of benefits. These include insurance benefits, financial benefits, disability and worker’s compensation benefits, and other fringe benefits such as tuition reimbursement and maternity leave.

Who needs EBL insurance? If your staff includes a large number of employees and you offer a full benefits package, it’s wise to have this policy in place. If you have few workers and offer few benefits, you may not need it, although it’s always wise to check.

As the goal is to provide coverage against large claims by employees or their dependents should they suffer financial loss due to your mismanagement of their benefits, the size of your risk will determine the coverage required. When in doubt, discuss EBL coverage with your agent, who will help you review your insurance policies and decide whether EBL coverage is necessary for your business.

Mistakes happen. If they do, EBL can provide you with peace of mind. And it may prevent the unthinkable: a suit that will sink your company.

What To Do If You Have A Water Claim

Moving? Don’t Forget to Pack Your Moving Insurance

Your belongings are boxed. Your closing is scheduled. You’ve filed dozens of change-of-address forms. What’s left to do for your move?

Have you thought about moving insurance? If you’re hiring professional movers, you may assume you’re covered. This might not be the case. All moving companies are liable for the property they transport. However, their basic liability falls under either “full value” or “released value.” If you pay the extra cost for “full value,” the mover has to repair, replace, or pay for any damaged items. Under “released value” obligations, the mover only has to pay 60 cents per pound per item. If they damage your solid wood bedroom set, those cents won’t add up for you.

Some moving companies offer insurance policies. These work like most coverages: you pay the premium up front as well as a deductible for any claims. If the price seems fair, this policy may be worthwhile. However, check your state regulations to ensure it’s legit. Not all states allow moving companies to sell insurance policies, and it’s not unheard of for moving companies to sell bogus coverage.

The better option may be to obtain your own coverage through your insurance provider. Your homeowners policy may include move coverage, or you may need to add it for a small additional premium. If you need a separate policy, rates are usually based on the value of your possessions.

Is it worth the cost? The answer may depend on how trustworthy your movers are. And how much you care about your belongings.

Symphony in F Flat: Ding, Click, Beep

You start your car. It dings repeatedly until you fasten your seatbelt. You open the door, and you hear an alerting chime. You might have hit that deer, but your car’s collision warning alarm shrieked at you.

Did you know car manufacturers invest significantly in choosing these sounds? They’re not simply random noises added to your vehicle. According to CBS News, it’s someone’s job to find just the right tick, click, or beep for each situation. These “vehicle harmony engineers” hope to ensure the noises you associate with their vehicles enhance their brand; if you find your car’s chirps annoying, your next vehicle may be from another manufacturer.

As cars become more complex, these noise engineers have their work cut out for them. Today’s vehicles require a lot more than turn signal clicks and horn honks. Advanced safety alerts and luxury climate systems all add new pings and pongs to the musical melody of your car’s interior, and manufacturers may spend up to a year trying for the perfect sound. They even consult Hollywood sound engineers to produce these ideal jingles and jangles. So remember, the next time your car clicks, time and money went into that noise.

Eat Veggies and Meat …. The Solution: Flexitarianism

More people, even foodies, are making a conscious effort to eat less meat. But not everyone has it in them – nor is it always easy – to be a vegetarian.

Enter flexitarianism – eating mainly, but not exclusively, as a vegetarian. Voted 2003’s most useful word by the American Dialect Society, flexitarianism offers an alternative to other, sometimes strident, anti-meat movements. The concept was also given a boost recently when Whole Foods, the well-known purveyor of healthy food, dubbed flexitarianism the top food trend of 2017.

This recent development has further fueled the popularity of a related phenomenon: Meatless Mondays. The meatless movement has roots stemming back to World War I, when North Americans were encouraged to participate in “Meatless Monday” and “Wheatless Wednesday” in order to conserve resources and reduce consumption. These conservation efforts proved highly successful.

However, it wasn’t until 2003 that Meatless Mondays became a certified movement with a simple message: once a week, don’t eat meat. It was reintroduced as a public health awareness campaign in an effort to combat the rising number of preventable illnesses linked to excessive meat consumption. (The Meatless Monday website says the average American eats “as much as 75 more pounds of meat each year than in generations past!”) Since this reinvention, Meatless Monday has become a global mainstay for menu planners, with participants ranging from individuals to hospitals to schools and even corporate cafeterias.

Meatless Mondays are popular with families, as reducing meat consumption is as beneficial to our wallets as to our bodies. And rather than pushing back, most family members are now enthusiastic when meatless dishes are added to the weekly meal plan. Why? Online, on-air and in-restaurant chefs are constantly devising and sharing new and delicious vegetable-based recipes.

Finally, the Meatless Monday concept ties in well with other eat-healthy initiatives, including grow-your-own food, shop local, and of course, the significant trend of this year – flexitarianism.

When Your Living Room Becomes a Lake …

Your home is underwater, and it’s not about its market value. Literally, your home has been consumed by floodwaters. Now what?

Whether the cause is a broken pipe, a storm, or a flooded river, take the following three steps in this order.

Stay safe: It may be tempting to rush in to salvage your belongings, but water can create hazardous conditions. Check for a weakened structure as well as damage to gas or electric lines. It might be extremely dangerous to walk on cracked floors or wade through standing water near electrical shorts. If you even suspect the property is unsafe, don’t enter. If you can safely turn off electrical sources and/or gas, do it before you go in.

Document everything: Take photos (or a video) of the damage before draining the water, removing items, or making repairs. For insurance purposes, it will help to have an accurate depiction of the extent of the damage.

Contact your insurance provider: Notify your agent as soon as possible. Some flood damage is not covered by typical homeowners insurance policies. Communicate with your provider to discover what, if any, coverage is available. Let them know of any repairs you intend to make. Your agent can advise you if you need to wait for an adjuster to inspect your property first. If you do make repairs, document the process with pictures and receipts.

Throughout this process, it’s important to stay in touch with your insurance provider, particularly if yours is not the only property impacted by a flood.

The insurance company can also provide contact information for the Federal Emergency Management Agency, which will be an important source of information if your flood is part of a wider problem. Should your region be declared an official “disaster area” by the government, you may receive additional financial assistance.

Check with your insurance company for information about these and other resources.

What To Do If You Are Being Sued

Speech to Computer Interface: Are “Robo-Butlers” Our Future?

Computer-dictating systems have been around for years, but until recently they were notoriously – and often laughably – inaccurate, imprecise, and prone to errors.

These days more people are interacting with technology using the spoken word. The newest generation of voice-enabled devices makes dictating memos, e-mails, and text messages reliable enough to be practical, and voice assistants, such as Apple’s Siri, are available on most smartphones. Voice-driven apps can control smart appliances, furnish directions, answer questions, and give instructions.

But voice is not ready to replace other forms of computer interface (i.e., keyboards and touchscreens), at least not for a while.

“Deep learning” is the technology that enables voice recognition software to recognize and decipher human speech. It “teaches” computers to identify and interpret human speech using complex algorithms. Using deep learning, machines are now able to transcribe more accurately, and sound more natural, less robotic.

However, despite their deep-learning algorithms, computers can’t carry on coherent conversations. They mostly can’t comprehend the nuances of languages or the context in which words are spoken, and usually only respond to simple, one-off voice commands.

Mark Zuckerberg’s “robo-butler,” Jarvis, may be as close as we now get to a bot that can interpret and respond to human speech; but according to his Facebook post, even Zuckerberg himself currently prefers texting Jarvis to giving it voice commands.

Still, in many situations, speaking would be more convenient, safer, and natural than other means of communication. You can talk while driving, working out, jogging, shopping, or doing chores. As well, voice interface is already extending the power of computing to people who are unable, for whatever reason, to use screens and keyboards.

It’s just not quite ready for prime time. Yet.

HOT BIZ TRENDS

Making a Difficult Decision? Maybe You Should Sleep on It

When you were young, making a difficult decision could be daunting. “Sleep on it,” your mother advised. And it turns out she was right.

In a LinkedIn article, Ryan Holmes, CEO at Hootsuite, writes: “There’s great merit to being a decisive leader and trusting your gut. … However, when it comes to making more complicated, high-impact decisions, it is crucial to take some time out – or to ‘sleep on it.'”

Referring to research by neuroscience professor Justin Davis, Holmes reports that our brains have two systems for decision making.

The first is useful for quick decisions and is often based on gut feelings. And while it works well for less important decisions, it can blind us to the facts or, worse yet, to our personal biases.

The second, says Holmes, is a “slower system – a ‘higher order’ network that allows us to objectively reason and make rational decisions.”

In New Scientist, Gaia Vince agrees: “Complex decisions are best left to your unconscious mind to work out … and over-thinking a problem could lead to expensive mistakes.”

Vince quotes Dutch social psychologist Ap Dijksterhuis: “At some point in our evolution, we started to make decisions consciously, and we’re not very good at it. We should learn to let our unconscious handle the complicated things.”

Suggests Holmes, “When you’re faced with an especially complicated or consequential decision at work, try not obsessing on it … instead, let it ‘spin’ in the back of your mind for a while.”

Big decision? Resist your gut reaction and take a breather. Why not sleep on it?

I’m Being Sued – Now What?

We live in a litigious society. The court system sees over a hundred million lawsuits every year.

If your business is involved in one, ensure you take proper steps to navigate the process. Some suits are easily dismissed, while others can cripple your company: the median cost for a business liability lawsuit is around $54,000, and contract disputes are typically closer to $91,000.

With these figures in mind, your essential first step is to obtain proper insurance coverage and have it in place before a suit occurs. The policies that are most applicable in the event of a lawsuit include general liability insurance, workers’ compensation, and professional liability insurance. But if a suit exceeds your policy limitations, the addition of an umbrella policy may save large out-of-pocket expenses, and maybe your company.

Next steps

Supposing you have solid insurance coverage and are hit with a lawsuit. The next steps are:

Contact your attorney. If you don’t have an attorney already, get one, and review the lawsuit with him or her. Ensure your attorney has all the information needed to accurately and effectively represent you.

Contact your insurance provider. Do this right away, as many policies require you to forward suit papers promptly to your carrier. As you did with your attorney, ensure the details are clear. Verify what coverage you have to determine if the type of suit you are facing is covered under your policies.

If you are concerned your policies might not cover the suit, talk to your agent about the options available to you and to confirm whether the specific circumstances of your case will fall under your policy. Don’t make assumptions about coverage. Check dollar limits as well. This will help you develop a good understanding of how much, if anything, the suit will cost you out of pocket.

Typically, if the suit falls under your policies, the coverage will pay for attorneys’ fees and costs of any settlement.

Decide how to proceed. With professional advice from both your attorney and your insurance provider, determine how to respond to the complaint.

Respond to the complaint. Do this in a professional and timely manner.

Partner with your insurance carrier. Most suits, especially workers’ compensation cases, require investigation. Cooperate with all carriers involved to ensure the case moves along as smoothly as possible. You may need to provide documentation, employee files, or other information. If you receive requests, inform your insurance agent and attorney, who will take care of these requests as appropriate; don’t provide documents to anyone else.

Throughout the process, your insurance provider is a strong ally. Don’t miss out on the advantages this partnership offers. Keep your lines of communication open, and allow your carrier to assist you as you go through this difficult event.

If you are not currently facing a lawsuit, don’t wait until one occurs. Contact your agent to discuss your current policies.

Then make any changes necessary to ensure you’re solidly covered.

Spring Cleaning Your Insurance

Spring Cleaning: Remember to Dust Off Your Insurance

With the arrival of spring, many homeowners equip themselves with cleaning supplies and tackle the accumulated winter grime. If you’re making a checklist for spring chores this month, include a quick cleanup of your personal insurance policies. This yearly review of your coverage should include:

Top-to-bottom cleaning: Review your home from shingles to cellar. Have you made any renovations or improvements since last spring? Did you add a room or remodel a kitchen? Examine your policy to ensure it offers proper coverage to rebuild your home to its current state.

Asset organization: Go through your stuff. Did you receive expensive jewelry for Christmas or purchase any other valuable items in the past year? Check to see if their total value exceeds the limits on your homeowners policy. If so, consider a personal property endorsement or floater to get proper coverage.

Car detailing: What is the current value of your vehicle? You might be able to save money by lowering your coverage. Here’s a good rule of thumb: if your car is worth less than $1,000 or less than 10 times your premium, comprehensive coverage may no longer be cost-effective.

Rain forecast review: Do you need an umbrella? If your assets have increased, they might be at risk if you are showered with lawsuits. Consider an umbrella policy, which kicks in if you reach the liability limit of a standard homeowner or auto policy.

To complete your spring cleaning, consult with your agent to determine what changes, if any, are best for you this season.

Was This Year’s April Fools’ Day as Cyber-Pranky as Last’s?

While April Fools’ Day has always been a day dedicated to prank-playing, it was verging on an old, tired event for kids who pranked their parents. But with the Internet came new ways to prank – some good, some maybe not so good.

The jury’s out on whether this April Fools’ Day was better (worse?) than last year’s. In the meantime, we revisit some of 2016’s crazy cyber pranks:

Google mic drop

This “joke” was a mistake. Google celebrated the day by adding a working feature to Gmail that allowed users to end an e-mail thread with an instant GIF of a Minion character dropping a microphone. But people reported that, due to the button’s proximity to “Send,” they accidentally used the prank GIF for work e-mails. Google pulled it shortly after.

Netflix’s John Stamos documentary

Netflix partnered with the stars of TV’s Full House on this prank, which saw the entertainment company tweet about a trailer for an upcoming John Stamos documentary. The doc was supposed to highlight the actor’s other career as a musician, and was complemented by a video of a fake Stamos meltdown when he realizes Netflix was joking about the documentary. Or was the meltdown fake?

Trader Joe’s closes

The day before April Fools’, Yahoo ran a fake news article with a headline that read “Trader Joe’s to Close All Stores by 2017; Plans to Discontinue Products.” Fans were up in arms until the foodie grocery store denied involvement. Yahoo had to delete the item.

So, how did 2017 compare?

Winning Friends & Influencing People the 21st-Century Way

Dale Carnegie’s classic how-to book still makes a lot of sense: even in the 21st century, it’s human nature to want (and need) friends.

In a recent FastCompany article, Stephanie Vozza points to a Harvard University study that indicates making friends is important for good health: “A lack of strong relationships increases your risk of premature death from all causes by 50%.”

But finding new friends can be tricky.

Of course, we live in a digital world, and if making online friends is your goal, it’s a cinch. Mind you, some of those new digital friends may turn out to be bots or algorithms, but they can give the impression of friendship.

It’s different with real people. And if you want to know who would make a good friend and who would not, there’s lots of advice available. Notes Jon Levy in Speed, a pop-up blog from New York Magazine, “Don’t invest too much time engaging with the wrong people. When approaching someone, begin with a litmus test.” For example, “If you wave at someone from across the room and they wave back, they’re friendly, you can approach.”

Levy also says we are more likely to connect with someone with whom we have something in common. Just find out what, and connect.

Vozza, too, has suggestions for making new friends, including not waiting for others to make the first move, and following up on their overtures.

It seems the basic tenets of Dale Carnegie’s system still work. You can make real friends. Even in 2017.

Prevent Homeowner Claims with This Checklist

A few simple maintenance tasks can help prevent major liability insurance claims. The following tasks, completed annually, will help protect you from several types of homeowners insurance claims, such as:

Liability

Inspect your driveway and walkways. Are these areas safe and smooth? Repair any broken, cracked, or uneven areas. This helps prevent accidents on your property. And don’t forget to fix fences and gates.

Winter weather may have taken a toll on your home’s exterior. Check hinges, latches, and locks to ensure they work. If you have a pool, maintaining these deterrents is especially important to keep your own kids or neighboring children away from the pool area and out of danger.

Fire damage

Change batteries in all your smoke detectors and ensure they’re functioning correctly. Also clean your dryer’s lint hose. Your lint trap doesn’t catch it all. You should clean the hose once each year to prevent fire. (And as a bonus, it also increases dryer efficiency.)

Moisture damage

Check the water heater, and if you notice any corrosion or leaks, get it repaired right away. As well, seams and caulking on doors and windows can crack over time and allow moisture to enter your home. This can cause further damage to its structure. Reseal or recaulk where needed.

You also should clean out your gutters and clear away all the debris left by winter storms. The gutter and downspout system protects your home from water damage by directing water away from your roof and foundation. When it’s clogged, it can’t do its job.

Theft

Overgrown bushes can block windows and create shelter for thieves. Trim the landscaping so everything (and everyone) is out in the open. Also check outdoor lighting for burned-out bulbs; ensure your home is well lit to discourage any unwelcome visitors.

If you’re worried about a homeowners insurance claim, this annual checkup can give you a safe home and peace of mind.

Watch Out For Storms

Storm Watch: Don’t Get Blown Away This Spring

During this “in like a lion, out like a lamb” month, the weather is nothing if not unpredictable. But the one thing you can usually count on is a storm; at some point this spring, your business will likely be pummeled by high winds and heavy rains. You might even be hit with hail.

Dangerous winds, flying branches, and large hailstones can wreak havoc on your property. Damages can add up quickly. To keep costs lower during storm season, try the following tips:

Keep a close weather watch: If the forecast calls for a storm, get your equipment inside. Don’t risk it. Ensure all your valuable equipment is safely stored before bad weather arrives.

Brace for impact: Keep everyone at your company safe. During inclement weather, avoid working outside or near windows. If you experience a significant storm, move everyone to a storm shelter or basement.

Inspect your building: Take inventory of the condition of your business at the start of spring. Reinspect after each storm to check for damage. Make repairs right away, even if they are minor, to prevent further damage during the next storm.

Get coverage: Two types of insurance policies are good for storm damage protection-commercial property insurance repairs or replaces property that is damaged by wind and hail; a business owner’s policy is tailored to small businesses and bundles your commercial property and general liability coverages together for an affordable rate.

Don’t get blown away; contact your agent to discuss the policies you’ll need to keep your company covered this spring.

MANAGING

Sadder but Wiser. You Can Move Past a Setback

A setback may result from something you did or failed to do. It may be due to something beyond your control. Or it may just come out of nowhere. Regardless of the cause, the first response to any sort of setback runs the gamut from denial, blame, shame, or guilt to finger-pointing.

Not only are these responses mentally, emotionally, and physically exhausting, they’re not productive. Here are some healthy coping mechanisms to help you recover from a setback:

Acknowledge the setback and the pain and frustration that goes along with it. Recognition and acceptance are key steps to finding a way forward.
End the pity party. It doesn’t do you any good, and the victim role can really turn off people.
Don’t blame others or dodge your own responsibility for what occurred.
Talk about the setback with a person you trust. Share your feelings with someone who will keep you honest and give you unbiased feedback.
Give yourself time. With the passage of time, you’ll gain fresh perspective, digest any lessons learned, and become more open to new approaches and opportunities. Defer critical decisions and refrain from doing anything impulsive.
Reflect and readjust. Think about what you might have done differently, or may do differently in the future, to avoid a recurrence of the setback or at least secure a better outcome.
Develop a concrete plan. This should list steps to take you to a single goal or a series of interim goals. Include a “Do by” date.

Above all, know that everyone experiences setbacks; they’re part of everyone’s life experience. And the good news: a setback can almost certainly make you wiser and more prepared to weather future storms.

HOT BIZ TRENDS

How to Stay Relevant in This Era of Disruption and Change

Sometimes it feels like technology is advancing so quickly it’s impossible to keep up. Unfortunately, anyone who doesn’t may risk becoming irrelevant.

According to the Miami Herald’s Cindy Krischer Goodman, a lot of people are intimidated by technology. Singer Cher was one of them. But in a determined effort to stay relevant, she mastered Twitter and now has 3.5 million followers.

Writes Goodman, “In an era of disruption, technological advances, new workplace trends, and constantly emerging communication styles, everyone needs to follow Cher’s example: embrace change to stay relevant and effective.”

Jobs have grown more technical in the past few years, and holding onto one requires staying on top of things.

If you want to protect (and advance) your career, you need to do more than simply maintain the status quo; you need to be relevant.

Relevance is about constantly adapting to changing conditions. It means being open to new ideas so you can relate to everyone, from your peers to your customers.

In a recent article titled “How to Stay Relevant in a Constantly Changing Marketplace,” author Michael Hyatt offers a list of essentials, including staying curious. He says, “To save yourself from obsolescence, keep asking questions and poking around the next corner.”

Other essentials on Hyatt’s list: read new books, meet new people, listen to podcasts, attend webinars and conferences, take courses, hire a coach …

In effect, stay relevant by continuously learning, embracing change, and constantly exposing yourself to new ideas. It’s an approach everyone can, and should, master. No one wants to be irrelevant.

INSURANCE

Reduce Liability Risk and Costs with These Tips

You’ve checked liability insurance off your list. Your policy is in place. You’re fully covered if you’re hit with a liability suit. That’s great news.

However, wouldn’t it be nice to avoid liability claims altogether? While it’s vital to have insurance to pay any liability expenses you incur, it’s even better to avoid the claims in the first place.

According to insurancejournal.com, reputation damage tops the list of the most costly small business insurance claims, and resolving these claims costs, on average, $50,000. Number four on the list is product liability, and number five is customer injury or damage.

However there is good news: You can take steps to avoid making a claim under your liability insurance simply by reducing your liability risks. Instituting a comprehensive risk-reduction program can save your company time, money, and damage to its good name. With the following suggestions, you can lower your risk and save significantly on liability costs:

Employee training: Do you have the proper safety training programs in place? Make sure your employees are well trained on general accident prevention and response as well as industry-specific safety issues. This can go a long way in stopping liability issues before they start.

Safe surroundings: Regularly inspect your workplace for safety issues. Ensure you have sufficient lighting in stairways and entrances. Repair tripping hazards on floors or stairways. Clean up spills or wet areas immediately. Regularly review outdoor areas and take action if issues are discovered. Repair parking lot potholes and clear trash, debris, and slipping hazards. Small fixes can have a huge positive impact.

Mindful marketing: In today’s world, advertising and marketing are essential. With the slew of social media and other digital options available, businesses can deliver a constant stream of advertising to customers and potential customers. But as you market yourself, take care to avoid liability issues. Don’t slander a competitor (or a client) and don’t make claims you can’t support.

Copyright warnings: In designing advertising, many companies have accidentally stepped into copyright issues. Be careful when quoting others or using images or logos, and get permission for testimonials before you publish them. It’s easy to repost or “borrow” content, but that can just as easily land you in a liability suit.

Property care: Do your operations involve customer property? Do you offer a service at their homes or provide customers with in-store repairs? If so, have policies in place that protect both you and your customers. The goal is to establish careful procedures for handling customers’ property. Two suggestions: consider having them sign a waiver before services are performed and/or document the condition of their property before and after services are rendered.

Customer service: Communication is key. When you’re open and honest and clearly communicate with customers, you’re more likely to have a healthy relationship with them. This may mean they’re less likely to sue. Make the extra effort to keep customers in the loop and follow up with them, and try always to exceed their expectations.

Raise My Insurance Deductible?

Why Would I Want to Raise My Insurance Deductible?

We’re all looking for ways to save a buck or two. When it comes to homeowners insurance, a great way to put more money in your wallet is to bump up your deductible.

“Won’t I have to pay more when I make a claim?” most people ask. Yes, but you’ll likely save in the long run.

If you’re like the average homeowner, you’ll make a claim only once every nine years (and often wait considerably longer). If you can save a little more than $100 a year in premiums by raising your deductible, the math typically works out in your favor.

Making this adjustment to your deductible results in a threefold benefit:

Lower premiums: A higher deductible reduces the cost of your insurance.

Increased cash flow: With less money flowing out of your account to cover insurance premiums, you have more on hand to cover other regular expenses (like groceries, the heating bill, and transportation expenses).

Reduced claims: If you have a small loss or theft, where costs will likely fall short of your deductible amount, you can opt to not file this claim and decide whether you want to replace the item. Fewer claims help keep your premiums lower.

If you decide to go this money-saving route, it is important to establish a savings “buffer” by creating an emergency fund that you can easily access if you need to cover the full deductible. Your insurance advisor can review deductible and premium options with you to determine the best fit for your financial needs.

Exercise = Weight Loss: It’s Not That Easy

For years we’ve been told that weight loss is a simple equation: the more you exercise, the more weight you lose.

Sadly, it’s not that simple. Exercise improves physical and mental health, lowers blood pressure, and reduces the risk of acquiring Type 2 diabetes and Alzheimer’s. It’s a stress reliever. But according to an article on Vox.com, some 60 studies have found that exercise’s impact on weight loss is not that significant.

It’s explained this way: We gain all our energy from food. But thanks to our basal metabolic rate (over which we basically have no control), we use 60% to 80% of that energy just to function. We use 10% in digestion, leaving only 10% to 30% of energy available to be burned in physical activity (which includes exercise).

What works then? Interestingly, researchers have found that those who are successful in losing weight “weigh themselves at least once a week. They restrict their calorie intake, stay away from high-fat foods, and watch their portion sizes. They also exercise regularly.”

Hey. We knew it all along.

Tech Devices Can Teach Your Kids Money Management

Our kids may be computer whizzes, but chances are they’re not very financially savvy. Money management is an essential life skill, and one that’s not usually taught in school. But perhaps it should be; the consequences of not knowing how to manage money as an adult can lead to a host of money mistakes. Hence the introduction of device-based programs to teach kids about managing money.

One British start-up, Osper, has been offering a mobile banking service for children as young as eight that is designed so parents and children can work together to manage the child’s money. It uses the technology that kids understand so well and offers parents the security of oversight.

The service functions like a prepaid credit card: The child is the cardholder and he or she can use it to make purchases in store, online, and for transactions at banking machines. Parents fund the card according to a budget they create with the child. An app helps them track spending, and parents can lock the card if it’s lost or stolen.

Bankaroo is a similar service and allows parents to keep track of their children’s earnings from chores and allowances, and to follow their spending. A multi-child family account permits money transfers and tracks the children’s individual financial goals. It’s available in different currencies and languages, as an app for iOS and Android, and on desktop.

Good news: Bankaroo is now being offered in some North American schools. So tech-focused money management courses may soon be available at a school near you.

Umbrellas Are Important on Sunny Days, Too

You have homeowners insurance. You have auto insurance. You’re covered, right? Your skies look clear. Why would you need an umbrella policy?

Picture this: You’re hosting a neighborhood barbeque. Bill from down the block slips on your deck and suffers serious injuries. Your homeowners policy liability coverage pays out $250,000. That’s great, but his total medical expenses, plus lost wages, create a grand total of $450,000. How will you come up with the additional $200,000?

This is where a personal umbrella policy comes into play. It’s designed to extend your liability coverage beyond your auto and homeowners policies. In a case like Bill’s, or if you encounter a similar situation with a car accident, your personal umbrella will cover you. Once you reach the limit of your standard policy, the umbrella coverage kicks in. This additional policy can make a huge impact when you face a large liability claim.

Million-dollar claims

Personal umbrella policies are typically available in million-dollar increments, and most personal umbrella policies cover between $2 million and $5 million. While this amount may seem high, keep in mind that 13% of personal injury liability awards and settlements total $1 million or more. With today’s higher health care costs and hefty litigation awards, one incident can become very costly.

Umbrella policies are helpful for those with considerable assets as well as for those without much money in the bank. If you have few savings, an umbrella policy will provide the much-needed funds to cover a large liability cost. If you’re wealthy, opportunists may be more likely to file lawsuits, knowing you have the funds to pay their settlement. With this extra coverage in place, both groups are fully protected; your savings and assets won’t be at risk if you have an umbrella policy in place.

Contact your insurance pro, who can help you determine how much additional coverage you may need.

Simple Life Insurance Buying Tips

Insider Tips Make Buying Insurance as Easy as 1-2-3

Without a knowledge of industry terms, buying life insurance can seem complex and confusing.

A little research (and some guidance from your agent) goes a long way toward finding the policy you need without a lot of hassle.

When looking into life insurance, consider the following key components.

1. Determine your need for life insurance

Different people need different amounts of life insurance for different reasons. Do you need to pay for a child’s college education? Do you need to pay off your mortgage to help a nonworking spouse? Remember, the primary purpose of life insurance is to provide financial support for your dependents in the event you are not able to do so. Understanding what your life insurance should cover, before you begin shopping, will help you choose the right policy.

2. Know when to choose permanent vs. term life insurance

Term life insurance provides coverage for a limited period of time, such as ten, fifteen, or twenty years. This is different from permanent life insurance, which provides coverage for your entire life. Typically, term life insurance is less expensive than permanent life insurance. Depending on how long your dependents will rely on you financially, a term life policy may be the best option. For example, children eventually move out of the house and get jobs.

3. Know how much life insurance to buy

Finally, you’ll need to understand the needs of your beneficiaries. How much money do each of your dependents need, and for how long will they need it? Keep in mind that your spouse and children will likely have different needs. Additionally, if your children are different ages, each of them might have different needs.

It might help to calculate the life-insurance needs of each dependent, then add them together to determine your total coverage amount.

Health Care Infected with Medical Identity Theft

One consulting firm predicted health care spending would hit $5 trillion or more by 2022. These funds are simply irresistible to identity thieves.

In a recent report on patient privacy published in 2014, cyber-attacks on health care facilities increased 100 percent over a four-year period.

Your health care record may no longer be safe. Health care identity theft can take several forms. Imposter patients may use your health care information to obtain treatment or expensive procedures.

In one instance, a health insurer billed a man for a $19,000 medical helicopter evacuation. The problem was, this man never took that ride.

Many times, thieves perpetrate these frauds against Medicare recipients with stolen Social Security numbers. Alternatively, if your provider has an employee who illegally shares your medical information, that information can end up almost anywhere. Additionally, medical facilities are frequent victims of data breaches, and your medical information may become available on the black market.

With these facts in mind, take the following steps to protect your medical information.

Always review each Explanation of Benefits (EOB) you receive.
Watch for any inconsistent information in your medical record.
If you believe thieves may have compromised your medical history, order copies of your medical records. Dispute any inconsistency. Immediately file a written challenge of any charges you do not understand or any procedure you did not undergo. Copy your health insurer.
Request a copy of the “accounting of disclosures” from your health care providers. This discloses who received copies of your records from that provider. Your provider should provide you one free copy every year.
Access the Federal Trade Commission’s website for more information about access to your medical records and your rights as a patient.

Identity Theft Issues

Only Superheroes Need Alter Egos: Keep Your Identity Safe

If Superman used Clark Kent’s credit card to buy a new cape, Clark wouldn’t mind. If Joe bought a new jacket with your credit card, you would definitely mind. You would mind even more if Joe decided to assume your identity and not only use your credit card but steal from your bank account, open an unauthorized credit line, and establish phony policies in your name. This is identity theft. Joe isn’t your alter ego. He’s a thief.

How can you protect yourself from Joe Thief?

Insurance: Your homeowners or renters policy may provide coverage for theft. However, this coverage typically has a fairly low limit. Identity theft must be listed specifically in your policy for you to get the proper coverage for the scope that the situation may entail. You can also obtain a stand-alone policy or an add-on to your homeowners or renters policy. This coverage will reimburse you for the cost of repairing your credit score and restoring your identity. Expenses might include lost wages, mailing costs, phone bills, and attorney fees.

Caution: Recovering from identity theft can take years. While insurance will help, it’s best to avoid the situation entirely. Try these tips:

Don’t carry credit cards, your Social Security card, or your passport with you unless they’re necessary.
Never throw credit card or ATM receipts in public trash receptacles.
When shopping online, use only authenticated websites.
Never give out passwords or personal information via e-mail.
Install antivirus and firewall programs on all devices.
Check your credit report annually.
Use strong passwords for all accounts.
Shred documents that contain sensitive information.
Keep an eye on all accounts and report suspicious activity immediately.
Contact your insurance provider for proper coverage, in case tips 1-9 fail to stop Joe Thief.

Quick Cacao Facts for Chocolate Lovers

Did you know February isn’t chocolate’s biggest month for sales? Close to 90 million pounds are purchased the week before Halloween. That’s nearly double the 48 million pounds sold during the week of February 14.

If you plan to be part of that 48 million, you can further impress your sweetheart with the following knowledge about your Valentine’s Day gift. The alluring treat has a history both dark and sweet:

– The Latin name for cacao trees means “food of the gods.”
– The word chocolate comes from a Mayan term that means “bitter water.”
– Mayans used it in baptisms and marriages.
– Mayans also sacrificed children to ensure a good cacao crop.
– Between 40 and 50 million people are involved in cocoa farming and production.
– The Industrial Revolution made chocolate available to the masses.
– Chocolate drinks can boost energy more than sports drinks.
– Dark chocolate’s benefits include increasing memory and attention span.
– The “buzz” from eating chocolate can outlast the highs produced by kissing.
– To get the benefits of dark chocolate, make sure the top ingredient isn’t sugar.

What Meaning Is Hiding Behind Your Bouquet?

Roses don’t just smell sweet; their colors also communicate messages. Most people know the basics. Red means love. White means purity. Yellow means friendship. However, those meanings change depending on the flowers. A red carnation means flashy. A red chrysanthemum means sharing. Yellow carnations stand for cheerfulness, but secret admirers should send yellow chrysanthemums. Red tulips may declare love, but yellow ones show the sender is hopelessly in love.

It takes more than the proper petal hue to send the best message. Different flowers have their own meanings. Gardenias express joy. Jasmine stands for grace and elegance. Ivy expresses fidelity. Use lilacs for your first love. Be cautious about sending orange blossoms; they stand for fertility.

Keep in mind: bouquets aren’t just for romantic lovers. Zinnias, for example, express thoughts of friends.

Condo vs. Townhome: What Insurance Do You Need?

When you think “condo,” what comes to mind? Many people envision an apartment-style building with multiple floors and units. “Townhome,” on the other hand, conjures up images of a two-story home attached to two or three other homes in a row.

These pictures aren’t entirely inaccurate: the exterior style of your home is not what determines its status as a condo or townhome. The determining factor is ownership. In a condo, you own the inside of your home. The exterior, land, and common areas are owned by an association. In a townhome, you own the land beneath your unit.

This distinction becomes significant when selecting insurance coverage. Because you only own the interior of a condo, this is all you need to insure. Coverage may vary depending on your association bylaws, but you typically do not need insurance for anything beyond your four walls. With townhome ownership, you need coverage for the structure and the land it is on.

Generally, condo insurance covers items such as carpeting, plumbing, counters, and cabinets. Townhome coverage extends beyond these items to include the roof, frames, exterior walls, foundation, floor, and property.

In either situation, you need insurance for your personal belongings. You should also obtain liability coverage in both settings.

As you set up your policy, confirm with your association which types of disasters, theft, etc., are covered by their policy. With this information established, your insurance agent can help you determine what you should include in your own coverage.

Archives: 2017