3 Things to Consider Before Buying Flood Insurance

Owning a home can be a wonderful accomplishment in life. Making sure that home is protected from danger and disaster is an important consideration. Homeowners want to know that in the event their home is damaged they can afford the repairs or replacement of their residence. Flood insurance is often an afterthought which falls behind regular home owner’s insurance. At Calhoun Risk Management, serving Minneapolis, MN, we know the importance of education on these topics. Keep reading to learn 3 things you should consider before buying flood insurance. 

Flood Insurance Is Not Included in Home Owner’s Insurance

Many homeowners are not aware that flood damage is often not included in their regular homeowner’s insurance policy. Flood insurance is almost always an additional policy. The reason flood insurance is not often included in regular home owner’s insurance is that flood risks vary greatly from state to state and even region to region within a state. This makes it difficult for insurance companies to create universal policies. 

Risk Factors

In order to get a flood insurance policy that is right for you, you will need to speak with an insurance representative knowledgeable in flood insurance. You do not want to purchase a policy that provides more coverage, and thus a higher premium than you actually need. Your flood risk can be assessed through tools that evaluate and record flood events for the entire country. Your location will be used to assess your risk and therefore estimate the amount of flood insurance you need. 

Pay Attention to What Is Not Covered

A flood can have a devastating impact on your home and property. Even with flood insurance in place, there can be damage that is not covered. Be sure to read your prospective policy carefully so that you understand what is and is not covered. 

If you would like to learn more about flood insurance, please contact our friendly staff at Calhoun Risk Management, serving Minneapolis, MN today. 

5 Reasons You Need Life Insurance

Our life is unpredictable and is changing all the time. We all get older, establish families, get married, and have children. This helps us to realize life insurance is a necessity rather than a luxury. If you are still thinking of skipping it, Calhoun Risk Management in Minneapolis, MN recommends you to take a look at these 5 reasons why getting life insurance is important

To Protect Your Loved Ones

If your family members depend on your financial support, then life insurance is a must because it will replace your income when you pass away. It is especially important for parents of younger children or those who have family members relying solely on their income. 

To Leave Inheritance

Life insurance allows you to leave an inheritance to your beneficiaries. It is a great way to leave your kids with a substantial amount of money after your death that they can use for paying for college, buying a house, or anything else. 

To Pay Off Your Debts

In addition to covering living expenses, like food and bills, your dependents might need financial support for paying off your debts, including car loans. mortgage, and credit cards. Life insurance is a guarantee that your loved ones will not have to struggle by paying off the debts after you die. 

To Pay for Your Funerals

Unfortunately, funerals are quite pricey,  even if it is a traditional and small ceremony. The average cost of funerals is between $7000 and $10,000. However, if you have life insurance, your family members do not have to worry because an insurance company will cover all these expenses.

To Provide You With Peace of Mind

Having life insurance provides you and your family members with peace of mind and protection for the unknown in life. It helps you to ensure that your heirs will be financially taken care of. It is great to be prepared and know that you have secured the future of those who you love. 

Before getting a life insurance policy, it is important to know which one is right for you depending on your financial goal, family situation, and your budget. If you need help and guidance, Calhoun Risk Management in Minneapolis, MN is here for you. Visit our website or give us a call to know more about life insurance options. 

How commercial insurance can save your business

As a business owner in Minnesota, you have lots of things to consider. You have to think about your employees and also about the financial state of your business. No matter how big or small your business is, you need a long term plan to make sure that your business can thrive and survive no matter what gets thrown at it. At Calhoun Risk Management in Minneapolis, MN our team understands businesses of all sizes and we will recommend the types of commercial insurance that make sense for your business. Every business has different commercial insurance needs. Three of the most popular types of commercial insurance are property, liability, and workers’ compensation. 

Property insurance is an important coverage option for every business.  If you own the building where your business is located then it covers the physical building but even if you are a renter, you still have lots of property that needs to be covered. You have your equipment, your inventory, and all the things that make it possible for you to do business. Things happen including fires, storms, and theft and without this coverage, you could lose your business. 

Liability insurance protects you from lawsuits and judgments against you. It could be a customer who was injured on your property or by a product that you produce. It can also protect you from cases brought by employees for wrongful termination or harassment. A judgment against you could cost you a lot of money that could damage your business beyond repair. 

Workers’ compensation is mandatory in Minnesota. It protects your employees in the event they are injured on the job and it is an important part of commercial insurance.  

When you are ready to discuss your commercial insurance needs Calhoun Risk Management in Minneapolis, MN  is here for you. Give us a call or stop by our office and let our team of agents work with you to create a perfect plan. 

What To Look For In A Home Insurance Policy?

As an expert in home insurance, we will advise you to look for a home insurance policy that gives you the most coverage, if you can afford it. Think of the cost of rebuilding your home and replacing your belongings. Any insurance that covers all these should be ideal for you. At Calhoun Risk Management in Minneapolis, MN, we offer three basic levels of home insurance coverage. 

Actual cash value

This level of coverage will only cover the current value of your house and the current value of your belonging after deducting depreciation. If you bought your set of furniture two years ago at $250, its value would have depreciated. So, if the set of furniture is now valued at $170 after deducting depreciation, for this level of coverage, we will pay you $170 and not $250 for the destruction of that set of furniture.

Replace cost

For this level of coverage, we will pay you the cash value of your home and the actual amount you paid for your possessions without any deduction. With the settlement, you should be able to rebuild your home to the original level and you should also be able to repair or replace your damaged belongings. However, this level of coverage will cost you more than the one above. 

Guaranteed replacement cost

This coverage level is also known as the extended replacement cost. This is the best level of coverage. For this policy, we will pay you the actual amount it will cost you to rebuild your home and it is usually more than your policy limit. We have paid clients an amount that is about 20% higher than the limit of their policy. 

As far as we’re concerned, this is the best home insurance policy for everyone. Of course, it is the most expensive. But this is what you should consider when it comes to home insurance. The less you pay, the more risk you will bear and the less risk we will bear. If you pay more, you’ll bear little or no risk, and you will leave us with most of the risks. 

Why not consult us at Calhoun Risk Management in Minneapolis, MN for guidance in purchasing a new home insurance or in reviewing your existing insurance policy. 

How do insurance needs change once a vehicle has been paid off?

Owning a vehicle outright is a goal for many people in the greater Minneapolis, MN area. But something that you may not consider when striving for this goal is the impact that it will have on your auto insurance. The team at Calhoun Risk Management is here to support you in this goal and let you know the facts when it comes to insuring a vehicle that you own. If you’re getting close to paying off your car or truck, come talk to us and find out what changes you may need to make to your insurance policy.

Insurance Options for Your Non-Financed Vehicle

Many people drop their insurance to the lowest possible level once the vehicle is paid off. Financing companies typically require that a certain amount of coverage be assigned to the vehicle to protect their interests. While it may be tempting to drop below those levels and carry the minimum amount possible, it could be a decision that has future negative consequences. 

You will need to make sure that you have adequate insurance to repair or replace your vehicle should be involved in an accident. With minimum insurance coverage, you may have to replace your paid-for vehicle with something that is less reliable than what you currently have. Meeting with a knowledgeable agent can help you determine what policy types and levels are appropriate for your new situation. Paying off your car is an exciting event for everyone!

Have you reached your goal of paying off your vehicle? It’s important to review your policy and ensure that it contains the protection you need. If you’re in the greater Minneapolis, MN area, call or stop by Calhoun Risk Management today and learn more about the available options.

Three reasons why flood insurance is essential for you

As a homeowner, you might be unsure of what the best option to take is when it comes to flood insurance. When deciding whether to purchase flood insurance, you should be aware of the most important reasons for purchasing flood insurance.

At Calhoun Risk Management, we recommend flood insurance to residents of the Minneapolis, MN area for the following three reasons. 

Flood insurance is not included in a typical home insurance policy.

Homeowners need to be aware of the fact that a typical home insurance policy won’t provide coverage for flood damage. Flood insurance needs to be bought separately. 

Read the fine print of your home insurance policy. Flood insurance almost always requires at least an add-on to a home insurance policy if it is available from a home insurance provider. Fortunately, flood insurance is usually not excessively expensive and tends to be affordable for the vast majority of homeowners. 

Flood damage can completely destroy property.

Homeowners need to be aware of how thoroughly a severe flood can destroy a property. If a flood creates several inches of standing water within a home, the resulting water damage can be so devastating that the home cannot be safely lived in. In fact, a home could be condemned because of issues like black mold growth and structural damage that severely compromise safety and are often caused by floods.

Flood insurance is essential to protect one’s finances and the investment homeowners make in their properties. 

Floods are the most frequently seen natural disaster in the country.

Even those who don’t live in flood zones could still experience damage to their homes caused by floods. It’s important to realize just how common flood damage is. Flooding is the most common natural disaster in the United States. 

If you’d like to explore your options for flood insurance at Minneapolis, MN, contact us at Calhoun Risk Management to learn more. 

Smart Safety Tips for Cold Weather Driving

Holiday driving can be challenging enough without adding cold weather conditions to the mix. If you’re planning to travel this holiday season, these safety tips from Calhoun Risk Management in Minneapolis, MN can help keep you safe (and sane) on the road.

Service Your Vehicle

Service your vehicle for winter to make sure all systems are working properly. Check your fluids, wipers, battery, lights, brakes, and tires. Buy new tires, if needed, to keep you safe on the road.

Pack an Emergency Kit

Don’t leave home without a winter emergency kit in case you break down or are stuck in traffic during bad weather. Your kit should include warm blankets, first aid kit, jumper cables, flares, flashlight, cell phone charger, ice scraper, shovel, drinking water, and healthy snacks.

Inspect Mirrors before Traveling

If your outside mirrors are iced over, chances are the roads are as well. This gives you a heads-up on conditions for driving. If you can, you should wait until the weather warms up before hitting the road.

Drive Only When Necessary

Avoid driving when winter weather conditions are at their worst. Driving in a snowstorm to pick up a few things from the store could be a recipe for disaster. Check weather forecasts before heading out and stick to well-lit, well-traveled roads.  

Drive Defensively

Drive defensively and be prepared for delays. Give yourself plenty of time to reach your destination safely. Go the flow of traffic around you, not too slow and definitely not too fast. Keep a safe distance behind drivers in front of you to reduce the risk of rear-end collisions. Avoid distractions that take your eyes and mind off the road.

Update Auto Insurance

Update your auto insurance coverage to protect you against any eventuality on the road. Contact Calhoun Risk Management in Minneapolis, MN, today for all your auto insurance needs.

Do I Need Flood Insurance?

Floods are actually the most common natural disaster in the United States. At Calhoun Risk Management in Minneapolis, MN, we offer flood insurance so you can protect your investment.

What About My Homeowners Policy?

You may assume your homeowner’s policy will protect you from natural disasters, including floods. However, most homeowner’s policies do not cover floods. Even if you have regular homeowners or renters insurance, flood coverage is still a good idea.

Am I Required to Have Flood Insurance?

If you have a mortgage, your lender may require you to have a flood policy. This is often the case if you live in a high flood risk area. Some lenders may require flood insurance even if you live in a low flood risk area. 

Do I Really Need Flood Insurance?

A flood can happen anywhere, at any time. People often assume if they don’t live near a body of water, they aren’t at risk for flooding. However, spring thaws, heavy rains, storms, and hurricanes can all cause flooding. Floods are unpredictable and often unexpected. 

You should also keep in mind that a little water can do a lot of damage. According to FEMA, one inch of water can cause thousands of dollars worth of damage.

Why It’s Worth It

Your risk of flooding in these areas is much higher than most people realize. In fact, 20% of flood insurance claims come from homes in low to moderate risk areas. This means that one out of every five homes damaged by flooding is in an area where flooding is not an expected risk.

Flood insurance for low to moderate risk areas is relatively inexpensive. It is well worth the cost of a flood insurance policy for your peace of mind. 

Protect yourself from the potential financial damage that floods can bring. Contact Calhoun Risk Management in Minneapolis, MN today. 

5 Tips for Choosing a Beneficiary for Your Life Insurance

The next step after purchasing life insurance is choosing a beneficiary. Designating a beneficiary ensures your insurance benefits go to the individual(s) you want to help most after you’re gone. The following tips from Calhoun Risk Management in Minneapolis, MN can help you make wise decisions in this matter. 

Consider Your Immediate Family

If you have a spouse and children, consider how they would fare if you were to suddenly pass on. Life benefits can provide much-needed financial support for these loved ones, so they’ll be well taken care of after you’re gone.

Make Provision for Minor Children

Another way to make provision for your children is to set up a trust and have benefits placed in the trust specifically for your children’s needs. If you choose this route, you’ll need to name a guardian for the trust and specify how funds will be dispersed to meet your children’s immediate or future needs.

Review Your Options

If your spouse and children are well provided for, review your options for who else you can support after you’re gone. Younger siblings, aging parents, a business partner or a favorite charity all make good beneficiary options. You could even divide benefits among several of these options. 

Select a Backup Beneficiary

Choose a contingent beneficiary to receive policy benefits in case your primary choice passes on before you do. This saves you time and trouble in repeating the process.  

Update Your Beneficiary Choice When Necessary

Update your choice of a beneficiary to reflect major changes in your life. Singles may want to change their beneficiary from their parents to their spouse after getting married. A divorce could prompt you to change your beneficiary from your ex-wife to your children or another member (s) of your family.

For more information about life insurance coverage, choice of beneficiaries and cost, contact Calhoun Risk Management in Minneapolis, MN. 

The Number One Way to Protect Your Business

Running your own business requires a great deal of skill and creativity. But no matter how skilled or creative you are, there are things that are difficult to prepare for. These unexpected obstacles can be some of the most damaging to your business and to your profits. There are ways to protect yourself from these unforeseen events, though. At Calhoun Risk Management, we help business owners like you in Minneapolis, MN and surrounding areas, to better understand their risks. We also help those business owners better prepare for these risks so that they can protect their assets and future success. 

Commercial Insurance

Commercial insurance is one of the best ways that business owners can protect their investment. You have put a lot of time and money into your business. You can’t allow obstacles to ruin your success. Commercial insurance is there to make sure that you are protected during these obstacles. 

What Does Commercial Insurance Do?

Commercial insurance covers a variety of aspects of your business which can be at risk during regular operation. Commercial insurance can cover things like injuries on your property to both employees as well as customer or clients. Vehicles which are used in the course of your business can also be covered. Even things people do not often think of such as data breaches and the legal consequences of such can be protected under a comprehensive commercial insurance policy. 

The best way to ensure that you are getting the coverage you need is to speak with a trained insurance specialist at Calhoun Risk Management. We can look at your specific business needs and customize a commercial policy that will perfectly fit your specific business. We are now serving business owners in  Minneapolis, MN and in surrounding areas.