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!

First-Time Car Insurance Buying Tips

When you are purchasing car insurance for the first time, you may have many questions. At Calhoun Risk Management, serving Minneapolis, MN, our agents can help. Here are a few first-time car insurance buying tips that can help you when it comes to purchasing your first policy. 

Take the Time to Get Quotes From Multiple Companies

Prior to purchasing any auto insurance policy, it is wise to get quotes from multiple companies. This helps you get a feel for how much auto insurance may cost and what types of auto insurance policies are out there. Pay close attention to not only the price but the reputation of the company who is issuing the auto insurance policy as well when you are comparing quotes. 

Educate Yourself on Auto Insurance Lingo

Auto insurance companies may use a lot of lingo that you may not be familiar with. Prior to shopping for auto insurance, take the time to read up on different auto insurance terms that are frequently used in the industry and what the meaning of these words are. This can be vital to helping you understand exactly what you are agreeing to and getting when buying a car insurance policy. 

Carefully Consider Deductible Amounts and Coverage Limits

Lastly, take the time to carefully consider the available deductible amounts and coverage limits. Every person has different needs, and as such, their deductible needs and coverage limits vary. You want to find a policy that works best for you and provides you with the coverage you need, so carefully consider these two important factors. 

Now is a great time to get started buying your car insurance policy. When you are ready to get started, we are here to help. Contact Calhoun Risk Management, serving Minneapolis, MN now. 

What is flood insurance and do I need it?

According to FEMA floods are the most common natural disasters in the United States and the most costly. Major flooding has occurred in all 50 states so if you are thinking you are safe, you may not be. Record flooding is occurring on a more regular basis and it may be time to start thinking about how a flood could affect you. If you live in the Minneapolis, MN area, the experienced staff at Calhoun Risk Management can help you to understand the coverage you need. 

Flooding can cause an extreme amount of damage to your home. You may be thinking that your home, condo or renters insurance provides coverage for flooding, you are wrong. Floods are not covered on any of these policies. Imagine the amount of damage that several feet of water pouring into your home can cause. Then ask yourself if you are willing to take that risk of not having insurance coverage. 

Flood insurance policies are issued by the federal government through the National Flood Insurance Program. While the program is federal, you can’t buy the policy from FEMA, you purchase it through your local insurance agent. It covers much of the damage that your home could receive from a flood. It doesn’t, however, cover everything and it is important that you read your policy carefully so that you understand what you can do to minimize your loss. 

Minneapolis, MN has some really great lakes and rivers. They offer the opportunity to enjoy the great outdoors but when they are running over their banks, they are a danger to you, your home and your possessions. Give the experienced agents at  Calhoun Risk Management a call at  952-746-2416 with any questions you may have. They will give you a no-obligation quote and some peace of mind. 

 

3 Tips for Buying Life Insurance in Minneapolis, MN

As a responsible adult, it’s essential for you to protect those who depend on you. While it may not be pleasant to think about your own mortality, it’s a fact of life. This means it’s a good idea to purchase a life insurance policy sooner rather than later. If you need some tips for buying life insurance in Minneapolis, MN, you should reach out to the team at Calhoun Risk Management who serves this area. You can also use the tips and information here to ensure you get the policy that’s right for you.

1. Compare Various Quotes

When shopping for life insurance, one of the first things you have to figure out is if you want term or whole life insurance.

  • Term insurance: Designed to last for a certain period of time, and once it expires the benefits are no longer available.

  • Whole life insurance: Designed to last your entire life, this insurance costs more because the benefits never expire as long as you pay your policy premium.

Once you determine the type of insurance you want to purchase, you should compare quotes to determine what option provides you with the most value.

2. Consider Bundling Your Policies

Buying life insurance can seem a bit overwhelming and expensive. A great way to save time and money is by working with your existing insurance company. They can help you get the right policy and for a lower price when you bundle your other insurance policies under the same insurance carrier– it’s a win-win situation.

3. Find a Reputable Agent for Help

Finding the right agent for help with your life insurance purchase is essential. Be sure to keep this in mind when shopping around.

Additional information about life insurance in Minneapolis, MN can be found by contacting the professional team at Calhoun Risk Management. Being informed and using the tips here is the best way to get the coverage needed.

 

Do Independent Contractors Need Commercial Insurance?

When starting out on your own as an independent contractor in Minneapolis, MN, it is important that you assess all of the risks that you might face as your own boss. It would be terrible if all of your blood, sweat, and tears were destroyed by an incident that could have been covered with the right type of insurance. As an independent contractor, the only person you will have to blame is yourself. If you are interested in protecting your business, you should seriously consider some form of commercial insurance.

In a nutshell, commercial insurance is designed to cover the business and the owner. Since there are different options available to you, it is important that you do some research to find out which policies are best for you. The process can be a bit overwhelming, so it might be a good idea to contact Calhoun Risk Management to get some insight on the path that best suits your needs. In the meantime, here is some basic information on commercial insurance for independent contractors. 

Types of Insurance Plans for Independent Contractors

Commercial insurance plans can consist of a variety of different types of insurances plans. In general, independent contractors carry the following:

  • Professional Liability Insurance (e.g., coverage for injuries while on the job or if your equipment breaks, etc.)
  • Commercial Auto Insurance (e.g., coverage for car accidents while driving on the job, etc.)
  • Disability Insurance (i.e., coverage if you are unable to work because of a disability)
  • Performance Bond (i.e., if you can’t finish a project or it is done poorly, the bond will be released to complete the job or fix it)

Contact Calhoun Risk Management in Minneapolis, MN

Be sure to contact Calhoun Risk Management, if you need any further help in choosing the right policy for you. The company’s trained professionals will be able to answer any questions you may have. It always helps to have a guiding hand throughout the process of purchasing a plan for those who are not quite sure how to go about it. 

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 full coverage better than liability only?

All drivers in Minneapolis, MN need to carry at least a certain amount of insurance. Every driver must be able to prove 

  • at least $30,000 per person and $60,000 per accident for Bodily Injury Liability and
  • at least $10,000 in Property Damage Liability

This means that if you are in an accident and it is deemed your fault, that is the maximum amount your insurance is required to pay on any claims. If you think about it, there are a lot of other losses you could suffer, and the damages could far exceed those minimal amounts.

When you got your original policy at Calhoun Risk Management, there are a lot of reasons you may have gotten the smallest amount of coverage. Maybe you were in a hurry or really didn’t have extra money at the time. Maybe you didn’t know the right questions to ask.

The "extras" you may get with full coverage

Depending on your policy, here are some of the extra kinds of protection you may get with full coverage:

  1. Collision coverage — This will cover your own vehicle’s damages after an accident. 
  2. Comprehension coverage — This adds extra coverage for your vehicle, for claims related to, for instance, weather or theft.
  3. Vehicle rental reimbursement — If you only have minimum coverage, you are on your own while you are waiting to have your car repaired after an accident. Coverage usually starts the next day.
  4. Roadside assistance — Being stuck because of car problems isn’t just inconvenient; it can be dangerous. Your vehicle insurance can provide roadside assistance, including towing, help with a flat and other important aid.

Driving in Minneapolis, MN comes with risks, but you can protect yourself with broader coverage. If you have any questions about the difference between full and liability coverage, please feel free to call Calhoun Risk Management today.

How Can Flood Insurance Help Me?

If you own a home, it is important that you make sure that your property is properly covered by insurance. One type of risk that you may need to consider getting additional coverage for is flood damage. If you live in an area that is prone to floods, you are running the risk that you’re properly could be significantly damaged if a flood occurs. Getting flood insurance in place could provide you with the protection that you need.

Gives Protection for Flood Damage

Having a property that is damaged by a flood could be a very significant loss. Between the costs of removing water, replacing damaged fixtures, and making all necessary repairs, you could easily spend tens of thousands of dollars to repair your home. If your base home insurance policy does not provide coverage for flood water damage, you will need to have additional flood insurance policies in place at all times. 

Ensures Loan Compliance

Another advantage of getting flood insurance is that it will help to ensure loan compliance for you. For people that live in a flood zone in the Minneapolis MN area, having flood insurance in place is often a requirement. This is especially true if you live in a FEMA-designated flood zone and have an FHA mortgage. In these situations, the lender will undoubtedly require that you carry flood insurance at all times.

When you are looking for flood insurance in the Minneapolis, MN area, meeting with the team at Calhoun Risk Management is a necessary first step. Determining what your exposure to flood damage risk is can be hard to do. The team at Calhoun Risk Management will have all of the most current information about flood risks and can help you to determine what your flood insurance needs are. 

How a Prompt Life Insurance Policy Payout Can Help Your Family

Life insurance provides your family with continued security after you have passed in more ways than one. In addition to the peace of mind that comes with knowing that they will be able to remain in the family home, it is another reminder of your love and dedication to providing a safe and secure lifestyle. Calhoun Risk Management is proud to serve the greater Minneapolis, MN area and help you provide your family with a happy and comfortable life, even after you are gone. The death of a parent or spouse is already a stressful event, and without the death benefit that your life insurance provides it can be even more so. Life insurance can help to ease their version and help them to adjust to life without you.

Life Insurance Helps Your Family Continue Living

When you are gone your family will feel an emotional loss from which you cannot protect them. However, by holding an appropriate life insurance policy you will be able to continue providing for them. If your life insurance has been in place for several years or has not been updated to reflect new family members or changes in your financial situation, now is the perfect time to review your policy. Your family will appreciate your care and thoughtfulness, and prompt payment of a death benefit can help them manage a heartbreaking situation with less stress.

Now is the perfect time for a life insurance policy review to ensure that your current level of coverage is sufficient to protect your family after you are gone. Contact the team at Calhoun Risk Management today and schedule an appointment with one of our professional agents; we are proud to serve the greater Minneapolis, MN and look forward to working with you.

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.