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 are home insurance premiums determined?

Your home is the talk of the town in Minneapolis, MN. There are a few minor repairs that your dwelling place needs, but you figure that these things can be addressed at a later time. Did you know, though, that the cost of your home insurance premium may rise or fall depending on the condition of your home? Suddenly, those minor repairs could cost you a significant amount of money. 

The agents at Calhoun Risk Management can help you understand how home insurance rates are calculated. Read on to get a general overview of what insurers consider when deciding how much to charge in premium rates. 

How are home insurance premiums determined?

Home insurance premiums are heavily influenced by the replacement cost of the home. Insurers estimate how much they would have to pay if your home were damaged beyond repair. They then decide whether to charge more or less depending on the figure upon which they settle. Large homes tend to cost more to insure because of the high replacement value. Meanwhile, smaller homes may cost less because of their limited square feet measurements. 

Another factor that insurers consider when determining premium rates is the age of the home. Newer homes tend to cost less to assure because of their recent construction. Meanwhile, older homes may cost more to insure because of the higher probability of total destruction when tragedy strikes. The number of occupants is also a factor that insurers consider as the likelihood of incidents arise when more people reside in the home. 

Many homeowners in Minneapolis, MN are not aware of the impact that their credit scores have on home insurance rates. The reality is that consumers with lower credit scores pose a higher risk of liability that those with higher credit numbers. 

Call Calhoun Risk Management today!

Our agents can give you a breakdown of what makes your home insurance premium rates rise and fall. Call us today to get started with a consultation and a quote!

Should You Update Your Home Insurance Coverage?

If you own a home, you should review your insurance annually to make sure you still have the coverage you need. If your home’s gone up in value, your current coverage may be insufficient to replace it if it’s destroyed in a disaster. An agent from Calhoun Risk Management in Minneapolis, MN can help you determine if and when you should update your coverage. Here are a few reasons why an update may be needed.

Major Renovations

If you made major renovations to your home last year, you need to add them to your insurance coverage so that they’re protected against unforeseen disasters. This requires an update to your policy.

Increased Home Value

Renovations like a new roof or kitchen remodel could raise the value of your home. If so, you may need to raise the limits on your coverage to fully protect your property. Ideally, you should have enough dwelling insurance coverage to replace your home, if necessary, due to a disaster. Without adequate coverage, you may need to dip into your savings to help cover home repair or replacement costs.

Pricey Gifts or Purchases

If you purchased expensive goods or received pricey gifts such as jewelry, fur coat or fine art over Christmas, you need to confirm that they’re fully covered under your personal property coverage. The value of these goods may go beyond the limits of your standard homeowner’s policy. If your current policy doesn’t provide sufficient coverage to replace these goods in the event of theft or loss, you can obtain an endorsement or floater to protect these valuables.

To ensure your home and personal goods have the protection they need, contact Calhoun Risk Management in Minneapolis, MN. We’ll provide you with quality home insurance coverage at a reasonable cost. 

Is A Detached Garage Included In Home Insurance Coverage?

When you buy home insurance coverage in Minneapolis, MN, it’s important to look at what is and is not included. The structure of your home is covered. However, anything that is detached would not be covered by the standard policy. By working closely with Calhoun Risk Management, you can learn how to cover everything on your property.

Things such as detached garages, sheds, and other structures on your property are not encompassed within the standard policy. However, that does not mean that you cannot get the coverage that you need. You will simply want to talk to an insurance agent about adding a rider to your policy.

It is always a good idea to review your home insurance coverage on an annual basis. For example, if you decided to add the detached garage several years after buying your home, your home insurance policy would not be written to include a detached garage. However, once you add it to your property, you want to make sure that it is covered along with everything else.

Riders will help you to have the necessary coverage. This way, if the detached garage is damaged as a result of a natural disaster, a fire, or something else, you can be sure that it is included within your claim. It can end up saving you a significant amount of money over time.

Whenever you have “additional” items on your property, you will want to talk to an independent insurance agent to protect your home in Minneapolis, MN.

At Calhoun Risk Management, we have professional, experienced independent insurance agents to help you find the right home insurance coverage for your property. We can help you conduct a home inventory and ensure that you have all of the necessary riders to go above and beyond a traditional policy.



Does My Homeowners Insurance Policy Cover My Dog?

A home is an asset and it needs to be protected. Homeowners insurance policies cover different policies depending on the needs of a home and its owner. Insurance agencies such as Calhoun Risk Management help you analyze different homeowners insurance policies and settle for those that suit your Minneapolis, MN home the best. Home insurance policies do not cover dogs or any pets but there are circumstances under which you may file a claim.

Homeowners Insurance When Your Dog Bites Someone

Your dogs can bite people out of agitation or provocation. If your dog bites a visitor without provocation, you as the dog owner have to pay for their medical charges. If the incident happens inside your property, and your home insurance coverage includes it, you may get compensation from your homeowner’s liability insurance coverage. The compensation will help you pay for the injured person’s medical charges, loss of wages, pain and pain and suffering. If they sue you, it may pay for the legal fees. However, the policy will only pay if the person is not you or a member of your household.

According to the laws of Minnesota, you are only liable if your dog attacks the injured party without provocation. The general behavior of your dog does not really matter. Even if your homeowner’s insurance covers dog bites to other people, you can only make a claim if you are legally liable.

Dog Injuries

Even though your homeowner’s insurance policy may pay for bodily injury liability, it does not help pay for injuries or illnesses of your dog whether or not it was injured in your property. You need to get a separate policy for that.

Contact Calhoun Risk Management in Minneapolis, MN at 952 746 2416 to discuss your new quote for homeowners insurance.

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!

Preparing Your Home for Winter in Minneapolis, MN

There are many things that you should keep in mind in terms of home insurance in Minneapolis, MN. Because this is an area where it gets very cold in the winter, and the seasonal changes are fairly extreme, you should keep in mind the effects that that could have on your home and potentially your home insurance. However, you can minimize any negative effects by taking care of your home appropriately for each seasonal change. The following are a few of the things that you can do to prepare your home for the autumn and winter seasons in the state of Minnesota.

One thing you should do is make sure to get rid of any accumulated leaves and other dead vegetation. This could end up clogging your drainage systems if you have a rainy autumn, and it can be a risk for fire if you have a dry autumn. You should also prepare for pest control, considering that with the cooler months, insects and animals from outside will be looking for warm places of shelter. These are both things that could cause serious damage in your home that could actually end up not being covered by your home insurance policy. Preventing the damage from occurring in the first place could end up saving you a lot of money.

If you have any questions about what you should be doing to prepare your home for fall or any other season, you can contact the professionals at Calhoun Risk Management LLC. The agents at Calhoun Risk Management LLC can advise you as to how you should be taking care of your home in the fall in Minnesota. As such, if you are a resident of Minneapolis, MN, you can expect these agents to be able to tell you what you need to know in order to be as safe as possible financially when it comes to hazards in the home.

Checklist for Homes in the Fall

Here at Calhoun Risk Management in Minneapolis, MN, we know how important it is to get your home ready for winter.  For that reason, we have put together this short checklist for you so that you won’t forget anything.

If you have any window air conditioning units, go ahead and take them out of the windows.  If you have to leave them in the windows, it is important to remember to cover the entirety of the outside of the unit to keep the internal components from freezing.  You also might want to vacuum out the interior of the unit.

Clean out your dryer vents.  Lint can and does get built up in dryer vents…it is a fact of life.  Not only can this lead to your dryer working less efficiently, it can also cause fires…especially in the winter because cooler weather causes an increase in static electricity…which can spark those fires.  You can do this on your own or hire a professional to do it for you.

Clean out the down spouts and gutters.  While you are doing this, check them for any issues.  Repair the issues or replace the equipment as necessary.

This is also a great time to give your kitchen a good deep clean.  This not only makes it look great, it also keeps everything working efficiently.  You can degrease your range filter and hood, clean out the over, clean the small appliances, vacuum your refrigerator coils, wash the recycling and garbage cans, scrub the grout and tile, wash the backsplash and walls, and even clean the light fixtures.

Conduct an audit of energy.  You can call in a trained auditor who can assess the energy efficiency of your home.  Once they do this, they will provide you with a list of improvements to make that can include anything from getting new Energy Star appliances to beefing up your weather stripping or insulating the attic.

Wind Damage to Minnesota Roof

In Minnesota, we can get hit by a violent storm at any given time of the year. Lightning, wind and precipitation in one form or another can cause some significant roof damage in an instant. Large amounts of water can leak into your house, making it a soggy mess and damaging ceilings, walls, floors and personal property. That’s just one reason why you want to be assured that you have the proper homeowners insurance coverage.

That homeowners insurance needs to adequately cover your personal property too. If there are any particularly valuable items in the house like furs, artwork, or a baby grand, you’ll probably want special endorsements covering those because the standard homeowners policy won’t insure them up to their full value.

We’re independent insurance agents, and we live and work in the fabulous State of Minnesota. We’re established and trusted members of our communities, who will give you objective and unbiased information about your insurance needs. Because we work with a variety of insurers, we’re in a position to offer you choices of who insures you, what type of coverage you’ll have, and how your premiums will be paid. Agents for the mega insurers can’t do that. They’re not permitted to.

Because we’re not tied to any single insurance company, we’re not unduly influenced. When you work with us, you can make your own selections for custom fitted and tailored coverage for your home and personal property.

Whether you’re buying your first home, or shopping for less expensive but better coverage, don’t hesitate to give us a call. We’re happy to talk with you. We’ll make the time for that, and we’ll be pleased to show you the variety of choices you have along with what we can do for you.

Why Renter’s Insurance Should Be On Your “Must Have” List

It seems that every time you turn around there are new clothes on the runway, new clubs at the sporting goods store, or a new kitchen gadget that does it all. Some of these items will likely make your “must have” list. One thing that should rise to the top of your list, however, is renter’s insurance. Calhoun Risk Management knows how hard you work for those special purchases, and our agents want to help you protect them.

Who Should Have Renters Insurance?

Every Minnesota resident that resides on rental property should think about obtaining a renter’s insurance policy. Renter’s insurance can protect you and your belongings in case of loss or damage. Some policies also provide liability protection.

…But My Landlord Has Insurance on the Home

Most landlords carry an insurance policy which protects against loss to the structure of a rental property. These types of policies usually do not provide any type of protection to the tenant or the tenant’s belongings in the case of fire, water, smoke, or other catastrophic damages.

What Does Renter’s Insurance Cover?

Renter’s insurance policies will vary depending on the coverage level that is right for your situation. Most policies provide coverage which will pay for the replacement of your damaged or stolen personal possessions. Other policies might pay the actual cash value of these items. Some policies might also pay for the cost of living while your rental is being repaired or rebuilt.

Will a Renter’s Insurance Policy Pay for My Fur, Jewels, or Gold-Plated Golf Clubs?

Policy limits will determine the maximum coverage per occurrence. If you are concerned about very valuable items, Calhoun Risk Management can discuss the possibility of adding a rider to your policy.

Calhoun Risk Management wants to be sure that your “must haves” stay protected. Contact us today for a free quote on renter’s insurance.