What Is Not Covered By Home Insurance?

Calhoun Risk Management in Minneapolis, MN are experts in homeowners insurance. Homeowner’s insurance protects both the owner and the lender from significant financial losses as a result of any damages and protects your homes’ value.  A mortgage lender will, in most cases, require home owner’s insurance policy.   The cost of a homeowners insurance policy is affected by the home’s age and any of its features or characteristics, its location, whether the home has devices for protection such as smoke detectors or sprinkler system, any personal factors such as credit history and any claim history.

The policies coverage under the standard HO2 broad coverage form includes:
a. damage to the home, any structures attached such as a garage, b. Loss of any living expenses, 
c. If the home needs repair, protection against lawsuits for any third party injuries on your property, 
d. Which includes medical expenses,  
e.  Protects against any property stolen, 
f.  Damage related to water backups such as discharges from a sump pump. 
g.  Damages caused by lightning
h.  Accidental losses

There are exclusions for damages that are not typically not covered such as:
a.  Floods
b.  Earthquakes
c.  Upgrades as a result of building codes
d.  Nuisance property such as a prison built in your area
e.  Radiation from a nuclear accident from a power plant.
f.  House falling down a cliff is considered earth movement
g. Sinkholes are recognized as earth movement
h. Landslides or mudflows 

Insurers will require additional hazard insurance covered by the HO3 form, to address the exclusions.  A lender will require additional hazard coverage for homes in areas prone to those types of disasters, especially in disaster zones.  Calhoun Risk Management in Minneapolis, MN will explain what is covered for all damages related to your home and property.  Please call!

Can I Have a Minor as My Life Insurance Beneficiary?

If you are a single parent or divorced, you may want to leave any life insurance money to your minor child. However, since the child is a minor, you may be unsure as to whether this is something you can do or whether you have to leave the money to the person who is in charge of caring for your minor child. This is a question that we are frequently asked at Calhoun Risk Management, serving Minneapolis, MN. Here is the answer to whether you can have a minor listed as the beneficiary for your life insurance policy. 

It is not recommended that you list a minor as the beneficiary to your life insurance policy. If you do list a child, they will be ineligible to receive the money until they reach the age of maturity, which is either 18 or 21, depending on local laws in the county and city you resided in at the time of your death or the city and county your child currently resides in. 

If you want to leave your life insurance proceeds to a child, it is strongly recommended that you create a trust or make other legal arrangements for the money and your child in the event you pass away before your child reaches adulthood. This helps to designate where the money goes, who looks after it, and when, if ever, your child will have access to it before they reach the age of maturity. 

If you are looking to obtain a new life insurance policy, contact Calhoun Risk Management, serving the greater Minneapolis, MN area. We can help you designate beneficiaries and set up the policy to benefit those who you want to benefit. 

How Whole Life Insurance Can Relieve the Burden of Final Arrangements

Most people are uncomfortable thinking about their own death. Whole life policies usually include death benefits that cover your burial costs. This is a great tool to protect your loved ones from a heavy financial burden while they are grieving your death. Talk to the knowledgeable agents at Calhoun Risk Management in Minneapolis, MN to find out more about your coverage options.

What is Burial Insurance?

Burial insurance is part of a comprehensive whole life policy that pays for funeral and final arrangement expenses. As its name implies, it covers your burial costs so that your family doesn’t have to. It doesn’t require a medical exam, just the answers to a few questions about your health.

You pay premiums monthly, or sometimes weekly, and they’re typically very reasonable. The death benefit is determined by your age when you get the policy and the amount of premium collected. Most burial policies are flexible and may even cover the whole family. Ask your representative at Calhoun Risk Management in Minneapolis, MN about plans that cover yourself and family members to make the policy even more affordable.

Other Options

Another approach is coverage that lets you pick out the funeral home, casket or cremation preferences and even the type of flowers. Your premium is adjusted to cover the actual costs. 

Don’t be paralyzed by a fear of the unknown. Let Calhoun Risk Management help you get the peace of mind that comes with knowing your final arrangements are taken care of in Minneapolis, MN. Call an experienced Calhoun agent today to set up an appointment for all your life insurance needs.

Who Should Have Flood Insurance?

The biggest asset that most people will ever own is their home. For those that are in the Minneapolis, MN area, making sure that they have adequate home insurance is extremely important. One type of additional home insurance that many people may need to have in the area is flood insurance. There are several situations in which you should have additional flood insurance on your home policy.

Those that are Required to Carry It

One situation in which you should have flood insurance is if it is required for your mortgage documents. If you have an FHA guaranteed loan, the federal government will require you to have flood insurance if you are home is situated in a designated area set forth by FEMA.  In these situations, your mortgage lender will likely require you to have your flood insurance payments escrowed each month to make sure there is not a lapse in coverage.  

Those with Flood Concerns

While you may not technically live in a designated flood zone, or you may not be required to have it under a mortgage document, you should still have flood insurance if you are concerned about floods in your area. If your area is susceptible to floods and water damage, you should have flood insurance as an extra precaution.  In many cases, your standard home insurance policy will not cover flood damage so an extra flood policy would be very beneficial.  

For those that are in the Minneapolis, MN area and may need to have flood insurance, meeting with the Calhoun Risk Management company will be a good idea.  The Calhoun Risk Management company will be able to provide you with insight into your flood insurance needs and make sure you get the right policy to provide you with necessary coverage.  

3 Reasons to Get Life Insurance

If you are like most people, the last thing you want to do is sit around and think about your own mortality. Unfortunately, death is one of those things that are guaranteed in life. If you fail to purchase life insurance from Calhoun Risk Management serving Minneapolis, MN then you may leave your family with a huge burden. 

The good news is, buying life insurance is actually a pretty easy and painless process. Find out three reasons why you should make this investment. 

Pay for Your Funeral    

Did you know that on average, a funeral costs between $7,000 and $10,000? Unfortunately, this is money that most people don’t have lying around. However, if you pass away with no life insurance, your family members are going to have to figure out how to cover these huge costs. While there may be some ways to reduce the cost some, this is something most people won’t want to do when lying a loved one to rest. If you have life insurance, you can ensure that your funeral costs are covered and that you don’t put this extra burden on your loved one’s shoulders. 

Pay off Outstanding Debt

Another reason to invest in life insurance is to pay off your outstanding debt. In some cases, if you don’t have any funds set aside to do this, creditors may petition the court to sell off parts of your estate to recoup their losses. This may leave your family members without items you wanted them to have. 

Help Family Members Cover Other Related Costs 

Unfortunately, it can cost quite a bit to die. Between unpaid medical bills, the loss of your income and more, many families face serious hardships after someone passes away. The funds provided by a life insurance policy can help to reduce this burden while a family grieves. 

If you are ready to buy life insurance, contact the staff at Calhoun Risk Management serving Minneapolis, MN to learn more about the life insurance policy options available. 

 

What Types of Coverage Do I Need to Protect My Business?

What Types of Coverage Do I Need to Protect My Business?

Businesses need to ensure that their operations, employees and equipment are adequately protected. It is important that business owners in the Minneapolis, MN area contact their agent at Calhoun Risk Management about their operations and discover the types of policies needed. There are several different types of coverage, some of which can be used individually or as part of a package.  

These are some of the potential policies your agent may discuss with you. Commercial General Liability coverage provides liability coverage in a variety of circumstances. If a consumer is injured while at your location or by your product, the policy may cover the business. It also may protect the business if there is a libel or slander case. Commercial auto insurance will provide protection for the business’ fleet. Talk with your agent for an appropriate coverage level for the type of vehicle and how it will be used. Commercial property insurance protects the business’ facility, as well as, products and materials. Some policies will also cover the equipment and tools. Workers compensation protects the business if employees are injured during the performance of their job. An additional employee practices liability policy protects the business in several legal situations such as wrongful termination or workplace discrimination cases. Legal costs and damages from these situations can significantly impact a business’ assets.  In recent years, cyber risk insurance has become more important. These policies protect if there is a breach of corporate or consumer information. Unfortunately, this happens frequently today.  The board of directors can also be protected with an appropriate policy.

Call the agents at Calhoun Risk Management to discuss the many types of commercial policies to protect your business. For businesses in the Minneapolis MN area, coverage is that important.

Can My Mortgage Company Require Me to Carry Flood Insurance?

One of the biggest misconceptions about flooding is that your home insurance policy will protect you if your home floods. Unfortunately, this is not true. The majority of homeowners insurance policies preclude flooding unless you carry a separate flood insurance policy. If you have recently purchased your home, or have refinanced it, you may wonder if the mortgage company can require you to carry flood insurance. This is a question that we at Calhoun Risk Management, serving the greater Minneapolis, MN area, are often asked. Here is the answer to that question. 

If you have a federally regulated mortgage, such as an FHA and/or you live in a high-risk flood zone, a mortgage lender can require you to purchase flood insurance as part of your loan agreement. However, this information has to be disclosed to you when you are taking out the loan. It can not be added onto the requirements later on. As such, you will have to read your loan documents to determine if this is required of you. 

If you do not have a federally regulated mortgage and you do not live in a high-risk flood zone, a lender cannot require you to obtain flood insurance. However, it is highly recommended you do. If you do not have flood insurance, and the home floods, you will be required to pay for the damage yourself. If you are unable to do so, or the home is gone, you can still be on the hook for the mortgage until it is paid off. 

If you are required by your lender to purchase flood insurance, it is important to understand that you are able to purchase any flood insurance policy of your choosing. You do not have to purchase the flood insurance they offer you. When you are in this situation, let Calhoun Risk Management, serving the greater Minneapolis, MN area help. Call us today to get a free estimate. 

Multiple Life Insurance Policies: Pros and Cons

It is possible to have more than one active life insurance policy. But is it worth it? Here are the pros and cons of having multiple life insurance policies.

Advantages

  • People with higher incomes may need more than one policy to ensure their families are fully covered.
  • Accounts can be designated to go to different beneficiaries, so you can know everyone has what they need. Policies can be used to fund your child’s education, pay off mortgages and loans, or to care for a surviving spouse.
  • Entrepreneurs and other business owners benefit from having a policy to protect their business investments and a separate policy for their dependents.
  • There are different types of life insurance policies, each with its unique advantages. If you live in the Minneapolis, MN area, the insurance pros at Calhoun Risk Management can help you secure your family’s financial future with a carefully planned insurance strategy.
  • Younger people just starting out may not be able to afford all the insurance they need. Multiple policies make it possible to build walls of protection as income increases.

Disadvantages

  • Multiple insurance policies mean multiple premium payments, which can strain monthly finances. If you experience financial troubles, you may not be able to pay all of your premiums.
  • If beneficiaries for each account are not clearly spelled out, having multiple policies can cause competition amongst survivors.
  • Many policy companies have minimum and maximum coverage amounts. You may not be able to buy all the insurance you want from one company.

The right combination of life insurance policies can keep your family, business, and property safe after you’re gone. Contact the insurance pros at Calhoun Risk Management, who proudly serve the insurance needs of residents in the Minneapolis, MN area. They will help you develop an insurance strategy that fits your lifestyle, needs, and budget.

Popular Misconceptions About Commercial Insurance

In the business world, there is no such thing as being "too small" to get sued by any other entity or individual. Small business owners face lawsuits from former employees, contractors, subcontractors and the list goes on. Small business owners also need worker’s compensation insurance that many commercial policies offer.

Small Companies Don’t Need Commercial Policies to Cover Their Assets

A common misconception among some business owners is their assets aren’t worth much, so they don’t need a commercial policy. Although the value of each asset might be low, the value of those assets combined could be enormous. If each asset needs replacing due to a catastrophic event all at once, the financial consequences could be devastating to any business owner without a commercial insurance policy. By having the right commercial property insurance in place, both small and large business owners receive the help they need with the high-cost of replacing lost, stolen or damaged assets.

Commercial Policies Cost Too Much

The right commercial policy pays for itself in the long run, whether it is a small or large business. Commercial insurance isn’t free, and in most cases, it isn’t cheap. However, insuring equipment, property and most importantly employees is a worthy investment. The value of insuring any company in the event of a catastrophe could be the difference between staying in business or facing a permanent shutdown of operations. Additionally, business owners can bundle commercial insurance policies together as a cost-effective approach to maximize savings on premiums.

For the most comprehensive commercial insurance coverage for your business in Minneapolis, MN, Calhoun Risk Management is the one to contact. Let us help you debunk the most common misconceptions regarding commercial insurance policies and how one of our policies will help you protect your most treasured asset, your business.

 

Vehicle Upgrades that Save You on Your Insurance

After purchasing your current vehicle, you do not need to let it simply sit as-is. There are plenty of after market features you can install on your vehicle. This doesn’t mean you need to trick it out or anything of that nature, but you can save some money on some of these improvements. At Calhoun Risk Management, we are all about helping you save money on insurance while living in Minneapolis, MN, so take advantage of these upgrades that may help you save on auto insurance. 

Car Alarm

Have an older vehicle without a car alarm, or maybe the model trim you purchase didn’t come with the feature? Have one installed. A car alarm reduces the chances of someone stealing the vehicle, which cuts down on insurance costs. 

GPS Tracking System

A GPS tracking system within the vehicle will make it easy to monitor any movements of the vehicle, should it be stolen. This way, the vehicle can be located before it is chopped or stripped of parts. With this feature insurance companies will have less of a chance of paying for a replacement vehicle, which in turn saves you money. 

Rim Locks

One of the areas of a vehicle most commonly stolen is the rims. Pristine rims can go for hundreds, if not thousands of dollars on the secondary market. In order to prevent your vehicle from being such a target, rim locks are a must. With a rim lock, the only way the wheel can be removed is with a special, dedicated key used with the lug nuts on the wheel. Without the key it is impossible to remove the wheel without damaging it, rendering it worthless to those stealing it. 

From a GPS system to rim locks, we at Calhoun Risk Management want to help you save money on your Minneapolis, MN auto insurance.