Flood Insurance

Flood Insurance

WHAT IS FLOOD INSURANCE?

Flood insurance covers damages and losses caused by flooding. Flooding can be caused by a variety of factors, including heavy rain, snow melt, etc. Flooding can cause significant damage to homes, businesses, and other structures. It can be very costly to repair or replace damaged property. Flood insurance policies typically cover damages to the structure of the insured property, as well as damages to personal property and contents located inside the structure. Some policies may also cover additional living expenses if the insured property is uninhabitable due to flood damage.

WHY DO I NEED IT?

There are several reasons why it is important to have Flood Insurance.

  • Flooding is a common occurrence in North Carolina. The state is prone to heavy rainfall and is at risk for flooding from coastal storms and hurricanes, as well as river and flash flooding. This means that homes and businesses in the state are at risk of flood damage, even if they are not located in a designated flood zone.
  • Flood damage can be costly to repair. Flooding can cause significant damage to homes and businesses. This includes damage to the foundation, walls, and electrical and plumbing systems. Repairing this damage can be very expensive, and it may not be covered by a standard homeowner’s insurance policy.
  • It can protect your financial assets. If you do not have it and your home or business is damaged by a flood, you will be responsible for paying for the repairs out of pocket. This can be financially devastating, especially if you do not have the resources to cover the costs. Flood insurance can help protect your financial assets by covering the cost of repairing or replacing damaged property.
  • It is required by lenders in high-risk flood zones. If you have a mortgage from a federally regulated or insured lender and you live in a high-risk flood zone, you are required to have it. This requirement is in place to protect the lender’s investment in your property, as well as to protect you from the financial burden of flood damage.

WHERE CAN I BUY IT?

In North Carolina, it is typically purchased through the NFIP (National Flood Insurance Program), which is administered by the Federal Emergency Management Agency (FEMA), or through Private Flood Insurance carriers. Private carrier policies are typically more flexible than those offered by the NFIP. They may offer additional coverage options such as coverage for personal property, living expenses, and business interruption. Private carrier policies may also have more competitive premiums than those offered by the NFIP, particularly for properties that are located in high-risk flood zones.

It’s important to note that standard homeowner’s insurance policies do not cover flood damage. If you want protection against flood losses, you will need to purchase a separate flood insurance policy. If you are interested in purchasing flood insurance, please reach out to our agency directly. Here at Pegram Insurance, we represent multiple private carriers, as well as the NFIP. Contact one of our specialized agents and we will make sure you are properly covered for all necessary perils.

 

Rental Property Insurance

Rental Property Insurance

The cost of real estate has never been higher than it is now.  In times of the boom, we always kick ourselves for not buying more real estate in the past.  If you find yourself investing in properties to rent out then you may want to learn more about rental property insurance.  It is important that you purchase the right kind of policy so that you will be properly covered in the event of a claim. 

Depending on where you are in the process, the policy you need may vary.  We will discuss some of the more common policy types you may need. Make sure to be up front with your agent as much as possible and share your coverage concerns to make sure you get the policy that is right for you.

VACANT PROPERTY INSURANCE

If you purchase a property that is vacant with an intent to renovate it before you rent it out, you will want to make sure you have it insured as a vacant property.  The rate is higher for these types of risks but your claim can be denied if you don’t have it properly insured.  The good news is many carriers can offer short term policies for these types of properties.  You can do a term as short as 2 months and as long as 12 months with some carriers.  If you know that you will have the renovations completed in a couple of months then you can insure it that way for shorter term and rewrite when the occupancy changes. 

Builders risk policies should be chosen if you are building from the ground up or have major renovations.  If you are doing minor cosmetic renovations only then you can just choose a standard vacant policy.  

Keep in mind that vacant policies often have diminished coverage options so you will want to discuss any exclusions with your agent.  

SHORT TERM RENTAL INSURANCE

With the advent of Airbnb, VRBO and many other companies offering short term rentals, a new hybrid sort of policy was needed.  If you own a vacation home that you also rent out then you need to make sure you are covered while you are in the home and when you have it rented out.  Many carriers offer endorsements to your policy that will cover both instances.  You need to make sure your agent is aware so that the proper coverage can be put in place.  A short term rental policy is imperative to be properly covered.  

Liability is also important for these risks so max out the liability if you can so you can protect yourself from being sued.  Many times you can get a liability limit up to $1,000,000.

 

RESIDENTIAL PROPERTY RENTAL INSURANCE

Maybe you owned a home or condo that you held onto when you purchased another primary home instead of selling it.  Maybe you purposely bought a home with the intent to rent it out.  A home policy for this is very common.  Most of times you will see this policy form listed as DP1, DP2, or DP3.  Definitions of those policy forms are listed below.  The age of the property, among other reasons, may determine which policy form you may qualify for.  Typically these policies will require a tenant on an annual lease.

DP1

A DP1 policy is the most basic form of a rental policy.  It is also commonly referred to as a standard fire policy. These policies only cover the actual cash value as opposed to the replacement value of your property.  This accounts for depreciation and will not build the property back as it stands now.  The number of perils insured against is much less than the other policy forms. It covers only the perils listed which most often includes those listed below.  Keep in mind that you must have the Extended Coverage endorsement added to your DP1 policy to insured against all of these perils.

Perils Covered
  • Fire
  • Lightning
  • Explosion
  • Wind
  • Hail
  • Riot
  • Smoke
  • Aircraft
  • Vehicles
  • Volcanic explosion

DP2

This policy form is a little more comprehensive than the DP1 form.  It will cover the perils listed above for the DP1 form and also those listed below.

Additional Perils Covered 
  • Vandalism and malicious mischief
  • Burglary
  • Weight of ice or snow
  • Glass
  • Falling objects
  • Freezing of your pipes
  • Electrical Damage
  • Collapse
  • Water (not flood)
  • Cracking or bulging

DP3

A DP3 policy is the broadest coverage of the 3 dwelling fire policy types.  It will cover the actual replacement cost of your home so you can rebuild the home as it stands today. You will want to make sure you insure the dwelling for that replacement amount though.  The perils covered is considered “all risk” unless specifically excluded so you don’t have to worry about being covered for certain perils unless they are specifically excluded on the policy.

COMMERCIAL PROPERTY RENTAL INSURANCE

If you own a property that will be leased out to a business then you will need to purchase what is called a lessor’s risk insurance policy.  This policy picks up the exposure of a business renting your property instead of someone renting it as their residence.  You can insure the property and liability on one of these policies as the owner renting it out to others. 

We strongly encourage you to make it part of your lease that the tenant carry their own insurance as well.  This can cover their contents as well as the liability. You will want their policy to cover any liability claim first. Don’t think you won’t be named in a suit as well as the owner of the property.  Proper lessor’s risk liability insurance should be in place to at least defend you in the event of a lawsuit.

These are all just the basics on insuring your investment properties.  We have specialized in insurance for rental properties for many years so feel free to call us at 704-494-9495 to discuss any specifics of your situation.  We are more than happy to help.

Local Insurance Agent

Local Insurance Agent

I want to emphasize the importance of having a local insurance agent. This matters now more than ever before. We all know the annoyance of having to navigate through an automated phone system in order to get to the right department for your needs. Even when you are lucky enough to get to the right department, what are the chances that you actually get a person that can handle your request or answer your questions?

A lot of people may not fully understand that local insurance agents still represent the largest insurance companies with the best coverages and premiums. The difference between dealing with the local agent and the company directly comes down to one major thing, SERVICE.

The bigger the company, the more likely they are to try to replace service from an actual person with automation. It almost never goes over well. Just yesterday I went to my mobile carrier’s website looking for a phone number to get assistance. There was no page that offered a phone number to call for them. An automated chat, FAQ page, and a multitude of other options were offered but none of these things could assist me with my problem. I was left to search the phone number on Google because I couldn’t find it on their own company website.

I can’t think of many other industries where talking with a local agent matters more than in insurance. Sometimes you just need to talk to a real live person that you know and trust to help you make a decision. That can be done by phone, email or text. You want them to meet you on your terms and not some 800# or virtual chat. I don’t care what kind of technology you have, it doesn’t compare to good, old fashioned customer service from a local agent who actually cares.

Many new entrants into the insurance market have tried to bypass the agent and allow you to get an insurance policy online. It may be easy to purchase but what happens when you have a question, or worse, a claim. Who will be there for you? A chat bot or an undertrained customer service rep will likely be your source of help. 

I believe there is a need for technology in insurance. We allow our clients to get quotes from our website for auto insurance, home insurance, and commercial insurance.  We allow them to request certificates of insurance online as well as many other service related items. We have a dedicated service page that allows all of the important common insurance requests shown below. We will also always be available for one on one service if needed though.

Online Insurance Service Options

  • Request certificates of insurance
  • File an insurance claim
  • Make a policy change request
  • Make an insurance payment
  • Request policy documents
  • Get an insurance quote
  • Schedule an insurance consultation
  • Contact an agent

These things are helpful and necessary for many day to day insurance needs and that is why we added them to our website. It doesn’t have to be one or the other though. You can have technology and service from a real local person. I made a promise long ago that I would always have a live person that can answer the phone every time in our agency. In most cases, that same person can handle whatever questions or request you have.

Ways Local Agents Excel at Service

  • You can gain rapport
  • They know your situation due to your history with them
  • You can reach them immediately by phone or email
  • You don’t have to start over with a new representative each time
  • You have an office you can actually visit if needed
  • A small business feel accentuates empathy for you

I am admittedly biased, but I truly believe that independent insurance agencies do service better than the big captive companies and online insurance companies. Local agents “have your back” more and really have a vested interest in you and your needs.

Of course you don’t have to take my word for it though.  Our website has a sample of some of our longtime, satisfied clients providing great survey responses. Our company Google page is also packed full of 5 star reviews by our satisfied clients as well. We take great pride in these and work hard to continually exceed client expectations because we are service obsessed.

In closing, we all want things fast today.  At times we may not want to talk to a person.  We choose, rather, to do certain things online. I am fully onboard with all of those things and use them myself whenever possible. When things go bad or when a website can’t answer my questions, I still want someone to talk to or email to assist me. Let us never get too big to take care of our clients the way they deserve. At least until the machines take over everything, like in the movie Terminator.

Insurance Rates Explained

Insurance Rates Explained

The insurance industry is in an unprecedented time lately with having to deal with the response to rising inflation.  Now more than ever, you should be watching what is happening to your insurance rates.  We will discuss in this article just why insurance rates seem to be increasing lately and what some of these driving factors are.

We are all experiencing a decrease in how far our dollar goes lately.  We feel it at the gas pump, in the grocery store, when we buy a car, heat our homes, and when we book that much needed vacation.  It is painful to to see what we can buy this year compared to last year.  Even Dollar Tree announced that they will now be selling their $1 products for $1.25. 

The news tells us that inflation is at the highest level (8.5% in March 2022) in 40 years.  I don’t know about you, but I feel like many things are way higher than 8%.  Some things yes, but others feels more like 20-30% higher.

The Consumer Price Index (CPI) measures inflation year over year on the average price paid for consumer goods and services.  This is an average across the nation and doesn’t account for regional differences in prices.  When you look closely at the breakdown of what is included in the CPI, you see a major variance in certain items against others.  For instance, as of the time of this writing, we see the rate for food up 7.9% which is the same as  the overall rate of inflation.  Gasoline for our vehicles, on the other hand, is up 38%.

For the sake of this article, we are looking at how inflation affects your insurance rates so we will be focusing on the main drivers of what impacts insurance.

Inflation Rates on Insurance Related Items

  • Used Cars and Trucks  41.2%
  • New Vehicles  12.4%
  • Motor Vehicle Maintenance and Repair  6.3%
  • Residential Construction  14.8%
  • Wage Offerings 6%

The cost of these mentioned items drive up the cost of your insurance rates directly.  Comparing these items to the 30-year average for inflation which is 2.49%, and you can see why things are out whack at this current moment.  Insurance was designed to spread the risk, so even if you have not had a claim recently, your insurance rates are impacted by those who have had losses.  When these losses occur, there is a much higher cost to the insurance company to put the insured back to where they were before they had the loss.

Some other factors that are driving up the costs of insurance carriers in settling claims are below.  These all play a factor in pricing and how carriers are forced to raise premiums so they can still make a profit.  After all, if insurance companies don’t make a profit, then they go out of business which lowers the amount of competition which in turn raises rates even higher.

Insurance companies pay close attention to their loss ratios.  That is the ratio of premiums taken in compared the claims paid out.  If this ratio goes up due to higher losses, they must make the difficult decision to raise premiums accordingly to bring the loss ratio back down.  In some cases companies can run with loss ratios above 100%, meaning they pay out more in claims than they take in from premiums.  Obviously they cannot sustain a loss ratio like this for long.

Additional Influences on the Cost of Settling Insurance Claims

  • The Wage-Price Spiral- This is an economic term that explains the increase in prices as a direct result of higher wages.  When workers make more money, they have a demand for more goods and services which in turn, causes an increase in prices.
  • Increased Wage Payouts for Workers- The more a company has to pay their workers to produce a given product or service, the more this increase gets passed down to the customer.
  • Level of Construction Activity- When construction activity is high, there is a greater opportunity to submit estimates for work and these bid margins tend to be higher.

Let’s give some examples of why insurance carriers see increased loss ratios and how they must respond to these increased costs.

Example 1:

George has an accident on the highway on his way to work.  He has not sustained any injuries but his vehicle is a total loss.  When his insurance company issued the policy he was under, they based the premium on the value of the vehicle at the time the policy was taken out.  Since that time, the value of his vehicle has shot up 40%.  The insurance company must take the hit and replace his vehicle per the terms of the policy.  The insurance company will take the financial hit for not taking enough in rate to cover the amount of the loss.

Example 2:

Anita has a fender bender in a parking lot and has to have her vehicle repaired.  She has called multiple body shops and the closest one is 3 weeks out in being able repair her car.  She will be forced to drive a rental car while the car is being repaired with a rental car company who just had to raise rates due to the cost of their inventory being so much higher.  The body shop has raised their pricing because of the cost of their labor going up 10%.  With so few body shops being able to repair the vehicle due to unusually high demand, she has no choice but to pay them what they are asking.  Her auto insurance company has to pay these inflated costs to settle the claim.

Example 3:

A burst water pipe has caused significant damage to Bob’s home.  He will have to replace his flooring and several walls.  Due to higher than normal demand and not enough contractors, the labor cost has increased 20% on all of the estimates to complete the work.  The flooring to match the rest of the home is on a 2 month back order and the cost of lumber is up 42%.  All of these items has taken a claim that would have settled for $32,000 a year ago cost $49,000 today.  The home insurance company has the dwelling limit down about 20% lower than it should be because inflation has risen drastically so quickly.  The insurance company will pay this price for not taking enough premium on this risk.

OK, so the bad news is insurance rates are higher.  You have a better understanding now of why they are.  That still doesn’t help you with how much money you see going out of your bank account to pay the premiums when you haven’t had any recent claims.  So what do you do about it?  The way I see it, you have 3 choices.

  1. Grin and bear it.  Break out that wallet and just pay the higher premiums, hoping that one day they will come back down when this whole inflation thing gets under control.
  2. Self Insure.  You can pay cash for your car and home so there are no bank requirements to insure them.  Then you pray really hard that nothing happens so you don’t end up in financial ruin if it does.
  3. Talk with your agent on what your choices are.

I’m going to guess that the best option for you is option 3.  I will tell you what we are doing for our clients and have done since we have been in business.  We have systems in place to track our client’s renewal rates.  When a threshold is met for increased premiums, it triggers an action for us to shop out all of the insurance companies to make sure they are still with the best insurance company for them.

We like to stay in contact with our clients to make sure that their needs are being met and that we are still getting them the best premium and coverage options available. 

Ways to Save on Insurance

  • Have your insurance agent shop out your policies to make sure the insurance company you are with is still giving you the best premium.
  • Consider raising your deductibles.
  • Bundle your home and auto insurance when possible.
  • Consider not filing small claims that may end up impacting your insurance rates later.
  • Make sure you are receiving every possible discount you can on your policies.
  • Lock in your auto rate for a year if possible.
  • Ask for a policy review to make sure your policy matches your needs.

I hope this article has helped explain the squeeze on the consumer lately on insurance and gives you an idea on some things you can do about it. Please feel free to reach out to us with any questions at 704-494-9495.

 

Cannabis Insurance

Cannabis Insurance

As more and more states are legalizing marijuana and marijuana related products, cannabis and hemp insurance is a growing need for many businesses.  I will discuss the different policy types for these different business types in this industry. 

The cannabis industry will still continue to grow as more US states begin to legalize it’s use.  As of this writing, only 4 states still hold a status of being fully illegal.  They include South Carolina, Kansas, Wyoming, and Idaho.  Two states have decriminalized it’s use including North Carolina and Nebraska, but have not legalized it in any other form.  Others have approved use for CBD, medicinal use, or have fully legalized it. 

There will likely be a time in the near future when federal legalization occurs which will completely open up this industry.  In the meantime, some states will start slow with allowing CBD and medical marijuana before going on to fully legalize it’s use.  Either way, insurance companies have readied themselves to offer businesses the kind of protection they need.

 

Some Common Cannabis Businesses Needing Insurance

  • Growing and Harvesting Centers
  • Liquid and Pill Processing Plants
  • Retail Sale Stores
  • Dispensaries
  • Edible Product Manufacturers
  • Bakeries

 

There are several insurance coverage types to consider if you are in any of these or similar industries. I will discuss the most common types and what types of losses would be covered.  You may only need some of these depending on your specific business type.

Types of Cannabis Insurance Policies

General Liability

General liability insurance is the most common type of coverage for business insurance.  This covers any bodily injury or property damage due to your negligence.   Most of the time you can add property insurance to this type of policy.  That can cover all of your business personal property and equipment.

Crop Insurance

Cannabis and hemp cultivators have to worry about various weather perils that can cause damage to their crop.  If any of these events occur, then the business will be left without any products to sell.  It is imperative that you have crop insurance if you will be growing or harvesting cannabis.  One loss can wipe out your business entirely.

Some common types of weather perils covered under parametric crop insurance include the following:

  • Wind
  • Hail
  • Drought
  • Frost
  • Wildfire
  • Tornado
  • Excessive Rain

Cyber Liability

Cyber liability is one of the fastest growing types of insurance policies for most businesses.  It seems we can’t go a month without hearing of some major business having a cyber situation occur.  You don’t hear about the small businesses but they are the ones who are more likely to have a cyber event.  

Workers Compensation

Workers compensation insurance covers employees from workplace accidents and illnesses.

Some common employees in the cannabis industry include:

  1. Cultivators
  2. Processors
  3. Manufacturers
  4. Dispensary employees
  5. Testing labs
  6. Retail Sales Associates

Product Liability

Product liability covers a business who sells a defective product.  The loss could be due to bodily injury or property damage as a direct result of the defective product.  It could also cover claims made against a product’s effectiveness.

This type of insurance policy can cover the the claimant’s medical bills, judgements made against the business to the claimant, and any legal fees incurred to defend the business.

Cargo Insurance

Cargo insurance covers your product while it is in delivery.  Cargo can cover things such as theft and damage.  If you aren’t hauling your own products, you will want to make sure that the company you contracted out to do so has this type of coverage so you will be protected.  You will also want to make sure that their cargo policy covers the types of products they are hauling for you.  Cannabis items are often excluded on many cargo insurance policies.

Excess Liability

Excess liability, often referred to as umbrella liability, covers above and beyond where any of the company’s underlying policies leave off.  If you purchase this policy type, you will want to make sure of two things when putting it in place.

  1. The excess liability policy shows which underlying policies it is over top of.  Make sure all of the policies you want excess coverage for are picked up under this policy.
  2. Make sure you have the correct underlying policy limits as required by the excess liability policy.  You must meet certain minimum limits on your other policies for your excess policy to kick in and pick up where they leave off.

 

I hope this article has helped give a glimpse into the world of cannabis business insurance and what types of policies are important to cover businesses in the marijuana industry.  Many insurance companies haven’t kept up with the demand in protecting these business types.  You want to make sure you are with an agency that can help you cover any gaps in insurance and explain the various types offered.  Please feel free to reach out to an agent at 704-494-9495 with any questions.  

NC Home Insurance Rate Increase

NC Home Insurance Rate Increase

The NC Insurance Commissioner, Mike Causey, announced on November 10, 2020 that the NC Rate Bureau (NCRB) has requested an increase on NC home insurance rates.  The requested increase is 24.5% statewide.  The proposed rate hike would go into effect on August 2021.  If accepted by the NC Department of Insurance (NCDOI) all NC home insurance writers would be obligated to comply and increase their rates.

Before you get too concerned, it is worth noting that the actual rate increase will probably be settled much lower.  The final rate increase cannot be implemented without the approval of the NC DOI.  Typically in these rate hike requests the NCDOI will negotiate the rates lower than suggested.  The last time this has taken place was in 2018 when the NCRB requested a rate increase of 17.4% and it was negotiated down to 4%.  

It is tough to say how much lower the 24.5% will be whittled down to.  I personally don’t see it going any lower than a 6% hike and it will likely be higher than that.  The primary factor in the need for a larger rate increase is due to the increased wind and hail claims in North Carolina.  Most notably the number of roof replacements stemming from such losses.  Some of these claims are from legitimate storms but most, I fear, are not.

I have been saying for a decade that there are entirely too many roofs being replaced on older roofs that are attributed to wind and hail losses.  The true cause of the damage to these roofs though is often just normal wear and tear.  In most cases, the claims come from roofs 15-20 years of age or older.  I often joke that wind and hail somehow never seems to find its way to newer neighborhoods with roofs less than 10 years old.  I suspect that we will only trend with higher rates until a decision is made on rectifying this problem.

Insurance companies and the NC DOI really need to determine their stance on this.  A distinction should really be made on the causation of the damage to a roof.  Is it wind and hail? (a covered peril) or is it normal wear and tear? (not a covered peril).  If we are using our home insurance policies as a form of warranty than we have to expect higher insurance rates.  

To put some perspective on this, you can compare it to needing to replace your hardwood floors.  If you have not updated them in 25 years, you can expect some wear and tear and when it comes time to replace them you wouldn’t expect to be able to file a claim for that loss.  

With continued rate increases on home insurance, there has never been a more important time to have an independent insurance agent working for you.  Aside from state mandated regulations raising home rates, you can expect carriers to have fluctuations in their rates over a several year span as well.  You need an agent that will keep a watchful eye on your policies and be there to step in and move it to another carrier if your current company gets out of line on their home insurance premiums.

Over the years last 15 or so years I have seen the best rates shift from Farmers to Hartford to Bankers to Heritage and now to Homeowners of America.  That is a generalization of course.  These are the companies that have been the most competitive across the board during this timeframe.  We also see companies like Travelers, State Auto, Kemper, and Universal Property and Casualty win a good bit on premium too.  

It is so important to have an independent insurance agent as your advocate not only on rates, but also on making sure you are adequately covered.  You just can’t trust one individual insurance company to have your back year after year.  Let us know how we can help by reaching out to us at 704-494-9495 or by emailing us at contact@pegramonline.com.  You can always reach me directly at coreyi@pegramonline.com as well.  I would be happy to discuss this topic further with you or answer any other questions you may have.

Dump Truck Insurance in Charlotte, NC

Dump Truck Insurance in Charlotte, NC

Dump truck insurance is a common request here in Charlotte, NC.  Charlotte is one of the fastest growing cities in the nation and with that comes construction.  A lot of construction.  We know a lot about insuring dump trucks.  You will need to not only focus on NC state limits but Federal requirements as well.  Aside from those requirements, you will also see contract requirements for the company you are hired to drive for.  Finally, you should be concerned with not only requirements, but having proper coverage to protect yourself.

It is important to make sure that the registered owner of the vehicle is also the policyholder. Just as in personal auto insurance policies, the correct owner should be listed as the named insured. If your vehicle is registered in your business name, then you should also insure it in the business name instead of your personal name.

Next, you should determine what coverage you need. We will discuss the most important types here.

Physical Damage

Physical damage (comprehensive and collision) is required if you are making payments on the dump truck through a bank. Even if you own the vehicle free and clear and there is no bank, you should still strongly consider insuring the vehicle for comprehensive and collision losses. Most commercial companies will ask you for a stated amount for each vehicle requesting this coverage type. Stated amount is simply the value of the vehicle today. In the event of a loss, the insurance company will pay the value of the vehicle minus the deductible you choose on the policy.

Business Auto Liability

Liability coverage is the part of your insurance policy that is required by the state or the Federal Motor Carrier Safety Administration FMCSA before you can even get your tag. Most common limits of liability chosen on a dump truck policy would be either $750,000 or $1,000,000. The North Carolina Department of Motor Vehicles (NC DMV) will determine what limit of liability is required. To determine the required limit of liability you will need to provide them the following:

  • Gross vehicle weight(GVW) of the vehicle. This is the total weight of the vehicle when fully loaded to manufacturer’s recommendations.
  • Radius that the vehicle will be driven. This is the typical one-way mileage driven to each destination.
  • The items you will be hauling. For example dirt, sand, and gravel.
  • Whether or not you will be crossing state lines.

The minimum limits for most dump trucks not crossing NC state lines is $100,000/300,000/50,000.

Dump trucks crossing NC state lines will usually require limits of $750,000 combined single limit.

Here in NC there are many state and city projects that are calling heavily on dump truck operators. Here in Charlotte alone there is the light rail project, Interstate 485 expansion, Charlotte Douglas International Airport and the Independence Blvd expansion just to name a few.

To be on any of these projects will require a minimum auto liability of at least $1,000,000. This is higher than NC DMV and FMCSA requirements.  In addition to this, you will also likely be required to have many other additional policy types.

Medical Payments

Medical payments covers drivers or passengers.  Choose a limit here that will cover at the very least, a deductible of a health insurance claim made for an accident that causes bodily injury.  

Un/underinsured Motorist Coverage

Un/underinsured motorist coverage covers your bodily injury and property damage to your truck caused by an uninsured driver or under-insured driver.  You should consider the likelihood of your dump truck being hit by uninsured drivers or those who may only have state minimum liability.  The coverage you choose here should be enough to cover bodily injury to yourself or driver as well as your vehicle.

Workers Compensation

Any employee working for you should have workers compensation coverage.  This will not only cover the doctors bills in the event of an accident but also any loss of time at work.  

If you don’t have any employees but still have a contract requirement to have a workers compensation policy click here for some more information on that.  

Truckers General Liability

Certain contracts will require general liability.  This would cover claims outside of you or a driver being involved in an accident.  Negligence from a loss can cover both bodily injury and property damage losses.

Commercial Umbrella

A commercial umbrella policy is a form of a blanket limit that picks up and pays where your other underlying policies leave off.  To have an umbrella policy, you will be required by the insurance company to meet certain limits on those underlying policies.  It is very important to know what the umbrella policy is over.  If you have commercial auto, general liability, and workers compensation policies for your business, you should make sure the umbrella is over all of these policies for you to be adequately covered.

Dump Truck Liability

You don’t run your business like this so don’t let just anyone handle your insurance.

Rates for dump trucks are very affordable considering how often they are on the roads and how many miles are being driven each year.  A clean driving record will also help lower those rates even further. If we can help with any of your dump truck insurance questions please don’t hesitate to give us a call at 704-494-9495.

 

Charlotte Car Insurance

Charlotte Car Insurance

Comparing Car Insurance Rates in Charlotte, NC? 

 

Best Local Charlotte Insurance

I am going to tell you the best way to do it and how to get the best rates on your Charlotte car insurance.

Since we represent most of the insurance companies available in Charlotte, we know a thing or two about car insurance here.  Who has the best rates in Charlotte?  We will tell you. There are several factors that are considered when rating auto insurance.  We will discuss those and some ways you can save the most money on your car insurance rates.

comparing car insurance

Shopping Charlotte Auto Insurance Companies

You would need a crystal ball to know which insurance company is going to offer you the best rates.  The only way to truly know is to quote every single company that sells car insurance in NC.  We know you don’t have time for that.  So what is the next best option?  Your best bet is to find an independent insurance agency that represents the most companies.  We shop to find our clients the best rates.  In order to win more than 70% of the time, we have to represent the majority of insurance companies in Charlotte.  It is just the law of numbers.  

Don’t focus on bundling with one company.  In most cases you can fall into a trap on that.  The reason is, it is unlikely that one company will offer you the best rate on your auto insurance, home insurance, business insurance and motorcycle insurance.  If a company is low on car insurance, they will likely be higher on one of those other lines.  They typically have to make up for low rates on one policy with higher rates on another.  

An independent insurance agency can spread your policies around to the best company on each line of business.  They can also offer bundle discounts, in many cases, just for having your other policies with the agency.  The end result is you save the most money on each policy.  That is what we do with our own policies and that is what we do with our clients as well.

Even if you could find one place online that you could quote all companies yourself (you can’t), you don’t always know everything you need to know regarding the insurance coverage.  That is why it is imperative to find an agent you can trust to do it for you.  One that has your best interests at heart and can provide all of the insurance discounts needed to offer you the best rate.

So you found an agent that can help you shop multiple companies.  What is next?  We will discuss what factors play a role in getting you the best rate in Charlotte, NC.

Charlotte Insurance Rates by Zip Code

In the past in NC, zip codes played a much smaller role in car insurance rates.  Today the rates can be vastly different.  There is a lot of data that is looked at to determine what zip codes should have higher rates and which should be lower.  They look at the chances of accidents and theft when making these determinations.  

I can’t say I agree with the actuaries completely on this.  I agree they should play small role, but we have seen rates go up as much as 30% when a client moves from a preferable zip code to one that is higher rated.  First of all, the zip codes in Charlotte are pretty large.  In many cases there are pockets where the accidents and thefts are occurring much more than other areas within the same zip code.  In addition, very few people work in the same zip code that they live in.  This work address isn’t picked up on the risk and we all spend a significant time at work which leads to our vehicles spending time there too.  It isn’t just the commute either.  If you go out for lunch or to run errands during a break, you may be more likely to have a loss around work than home.

For those that live outside of Charlotte, your rates are cheaper.  If you live in Concord, Harrisburg, Waxhaw, Matthews, etc then you will see a significant rate reduction then those living in Charlotte.  This is true even if you work in Charlotte.  Below is a breakdown of some of the higher and lower zip codes.

Cheapest Charlotte Zip Codes:  27277, 28227, 28226, 28210
Highest Charlotte Zip Codes:  28216, 28262, 28269, 28213

Charlotte Population

Charlotte, NC is the 16th largest city in the nation.  We are just above Indianapolis and just under San Francisco.  The estimated population as of 2019 is 872,500.  This is a 19% increase in just 9 years.  To say that Charlotte is growing is an understatement.  In fact, Charlotte, NC is the 5th fastest growing city in the US behind Phoenix, AZ; San Antonio, TX; Fort Worth, TX; and Seattle, WA.

With population increases like these, along come increases in crime and accidents as well.  These things will dramatically effect car insurance rates.  Each time companies take large losses, they will raise rates to incorporate their profit margins in what is called loss ratio.  Insurance companies are in the business of making money after all.  If they incur more losses, the only other option is to raise rates to lower their loss ratio and increase their profitability.

Charlotte Insurance Driving Experience Years

The number of years you have had your license has the largest impact on your rates.  The reason for this is statistics overwhelmingly show a correlation for new drivers and accidents.  Currently the inexperience rating factor is incremental starting with 0 years experience and phasing out at 3 years.  This means that you pay the highest when you have under 1 year of experience and your rates go down for each year you have been licensed.  

A lot of people believe car insurance is rated based on your age.  This isn’t true.  It is solely based on when you first obtained your license.  This means if you first got your license at the age of 40, you will still pay higher rates as if you were 16 years old.  

Keep a watchful eye on the House Bill HB 221 that is in the NC General Assembly currently.  If approved, this will increase the number of years that you can face higher inexperienced rates in addition to charging any violations of 4+ points for a longer number of years.

Charlotte Insurance with Tickets and Claims 

accidents and insurance

The quickest way to raise your insurance rates is to cause an accident or to get a speeding ticket.  Your car insurance rates can go up 30-40% just for one of those unfortunate events.  The more you get, the more your rate goes up.

Accidents are settled as either not-at-fault, 1 point, 2 points, or 3 points.  The more points an accident is, the higher surcharge on your auto insurance policy.  You need to weigh this when you decide whether to file a small claim or not.  Depending on the company’s underwriting guidelines, this can effect you for 3 years or as much 5 years.  

Other Discounts on your Charlotte Car Insurance

There are many factors that effect your rate on Charlotte car insurance other than your driving experience, zip code, vehicle and driving record.  Some may surprise you.  I will mention several with explanations

Credit Rating

Most companies will adjust rates depending on your credit rating.  If you have worked hard to maintain excellent credit, then this will be very pleasing to you.  If you haven’t, then not so much.  Either way most companies will rate based on this factor.  Favorable credit can save you hundreds of dollars per year so it pays to clean it up if your credit rating is less than stellar.

Marital Status

That’s right.  Your marital status can effect your rate as well.  Marriage is more than just blissful love and tax benefits.  It will also save you on your auto insurance as well.

Incident Free Discount

This one is relatively new.  It used to be that if you were involved in an accident that was not your fault, it would not impact your rate in any way.  Not so anymore.  A lot of companies will give you an additional discount if you have had no driving incidents.  This includes being free of not-at-fault accidents, waived speeding tickets and accidents, and even those improper equipment rulings you paid your attorney to get you out of that speeding ticket.  These items don’t vastly increase your rates but it will make a difference with many companies.  It is always helpful if your driving history is blemish free.

Gender

This one is new in NC as well.  Other states have rated males higher for quite some time now.  Yes even way back when I got my license this was the case.  NC did not base rates on gender at all for a long time.  They do now.  It isn’t excessive, but you pay a little more.  Females do typically mature faster than males and statistics don’t lie.

Length of Prior Insurance

Having prior insurance will impact your rates.  Some companies won’t write your policy at all without prior insurance.  Others give larger discounts if you have had it.  Still others look at the length of prior insurance with your previous insurance company.  Call it a loyalty credit for how long you were with your prior company.  The new company hopes you will do the same with them.  Most insurance companies don’t make any money until you renew your policy after all.  This is due to the increasingly higher costs of doing business and the expenses of running motor vehicle reports.

 

10 Largest Auto Insurance Companies in NC

Top Charlotte Insurance Companies

Below is the list of the largest companies in NC by market share on written premium. Combined they make up over 86% of the market share in NC.  After these top 10, it is very much spread out from there.  

  1. State Farm
  2. Geico
  3. Nationwide
  4. National General
  5. NC Farm Bureau
  6. Allstate
  7. USAA
  8. Progressive
  9. Erie Insurance
  10. Liberty Mutual

Top Charlotte Insurance Companies by Risk Type

Charlotte car insurance has become more complicated to rate than ever before.  When shopping our clients in the past, we could very intuitively choose which company will win on a certain risk type.  Due to an increased number of rating factors, it is much harder to guess which companies will be the best with each risk type.  With that said we will give several scenarios along with the insurance company that would likely offer the best rates in Charlotte.  

Experienced drivers with excellent credit, prior insurance, and no prior driving incidents:

  • National General
  • Progressive
  • Geico

Driver with a DWI conviction:

  • National General
  • Dairyland
  • Progressive

Mom and Dad with a child in the household that is a new driver:

  • Travelers
  • National General

Driver with 3 or more accidents in the last 3 years:

  • Dairyland

Clean driver with previous military service:

  • USAA

NC Minimum Liability Requirements

North Carolina has minimum liability requirements of $30,000 bodily injury each person, $60,000 bodily injury each accident, and $25,000 property damage each accident.  These split limits are commonly referred to as 30/60/25 in shorthand. 

These limits have been the same for way too long.  In today’s dollars, these amounts don’t go too far.  We recommend having at least 100/300/100 on your policy.  A large percentage of vehicles purchased new are well over the $25,000 minimum property damage required.  That that means is if you hit a car over $25,000, you are responsible for the rest.  

At the very least you should purchase one step up from the minimum 30/60/25 limits and choose 50/100/50.  Some people will try to protect themselves with limits 250/500/100 and further protect themselves with an umbrella policy over top of that.  I believe the small change in premium is worth the peace of mind that you are covered if an accident occurs.  Also, companies increase your discount for having prior insurance if your limits were higher with your previous insurance company.

Charlotte Car Insurance Rate Compared to NC and the US

NC has some of the cheapest auto insurance rates in the nation.  In fact compared to the rest of the United States, we are the 5th lowest in the nation.  Charlotte just happens to have some of the highest rates in NC though.  As stated earlier, this becomes much more complicated when zip codes are taken into consideration.  Some of the lower zip codes in Charlotte may see lower rates than higher zip codes in other towns, even though that town itself offers lower overall rates than Charlotte does.  

To conclude, there are more factors used to rate an auto insurance policy today then ever before.  Insurance actuaries are always trying to find new ways at assessing risk.  This means that shopping for car insurance rates are harder now as well.  It is probably more important now than ever to have a knowledgeable agent as your advocate to ensure you are getting the best rates.  We have saved our customers hundreds and even thousands of dollars by using our vast knowledge and number of insurance companies to their advantage.  

If we can help you with your car insurance or answer any further questions, please don’t hesitate to reach out to us at 704-494-9495.

Does Your Business Need Cyber Insurance?

Does Your Business Need Cyber Insurance?

8 Questions Regarding Cyber Insurance and Your Business.

Cyber insurance is relatively new in comparison to other business insurance types.  It is increasingly being a necessity for many businesses today though.  Some industries require it while others simply want it to protect themselves.   

You have worked hard to build your business and maintain it.  It can only take one unfortunate situation to cost you a significant amount of money or even put you out of business. 

With cyber insurance being so new, many companies don’t fully know exactly what it is and if they have a need for it.  We have put together a handy questionnaire to help you assess your need for this valuable product.

Ask yourself these 8 questions when determining if cyber insurance is right for you.

      1.  Do you have employees? 

Most breaches come from mistakes made by your employees.  You may tell yourself that you wouldn’t make any mistakes that would cause a data breach.  The same may not be said for those who work for you. 

Even when an employee has the best of intentions, mistakes can be made.  Simply opening an email that is suspect could lead to someone accessing your customer’s or vendors information wreaking havoc on maintaining the success of your business. 

Also, keep in mind that we are all humans and even us as business owners can make a simple mistake.  Oftentimes you don’t even need to make a mistake.  You have just experienced bad luck in becoming the target.   

     2.  Does your business have a website? 

Your website could be hacked which could cause valuable information getting stolen.  You could also face business disruption due to your website being down.  Further, you could be at risk of defamation in printed word and copyright and trademark infringements. 

You should also make proper considerations to ensure your business website is ADA compliant.  Your cyber insurance policy may protect against some of that backlash.

     3.  Does your business accept credit or debit cards or other mobile friendly payments? 

Cyber criminals are most often trying to obtain customer credit card numbers in these data breach situations.  This can be especially detrimental if you store any payment information. 

In fact, 40% of all cyber crimes come from an attempt to steal client credit card information 

     4.  Does your business use email? 

A lot of information is delivered by email and could get into the wrong hands which can come back as a claim against your business. 

You could also have someone hack your email and send out phishing emails that could come back on your business. 

     5.  Does your business keep records of customer information? 

If you keep records of customer data than you could be at risk of this data being stolen. 

That includes but is not limited to the following: 

  • Social Security Numbers 
  • Date of Birth 
  • Drivers License Numbers 
  • Credit Card Info 
  • Bank Account Info 
  • Addresses 
  • Email Addresses 
  • Medical Records 
  • Company Tax ID Numbers 

     6.  Do your employees use personal devices? 

Stolen phones, laptops, and tablets could contain valuable customer data that could be detrimental if it got into the wrong hands. 

Even if a hacker can’t get into your network, they may have a much easier time getting into your employee’s devices. 

     7.  Does your business have a social media presence? 

I don’t have to tell you that we live in very sensitive times.  If you or an employee posts a comment on Facebook, Instagram, Next Door, etc, and it is seen as discriminatory or harmful to another person it can be very damaging to your business.   

Remember, the intentions of your comments don’t even matter these days.  Only how someone received your comments. 

    8.  Do you know exactly how to react if you had a cyber breach? 

Let’s say the worst thing happens, and you are a victim of a data breach.  There are certain things that need to happen immediately.  If you have cyber insurance, the company will immediately go to work to rectify the situation and acting quickly can be the difference between an unfortunate situation and something that may put you out of business. 

Let’s discuss some of those common claims paid by cyber insurance companies. 

Common Claims Paid by Cyber Insurance 

  1. Paying ransomware. 
  2. Covering fraudulent funds transfer from your bank. 
  3. Reimburse you for lost income from a network or website interruption. 
  4. Cover legal fees in suits made against your company from a data breach. 
  5. Pays legal fees for slanderous comments made by your company on social media. 

I hope this has helped shed some light on the world of cyber insurance and how it can be useful to your business. 

If you have any questions or would like a quote on this valuable coverage, please don’t hesitate to reach out to us at 704-494-9495.  We directly represent the best companies and the most competitive premiums in the industry.   You can also click here for my previous article on this topic.

Special Event Insurance

Special Event Insurance

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If you are hosting a special event, you will likely be considering a general liability policy. This is a policy put in place to protect yourself and any liability against yourself or your organization if you are sued during the event.

Even if you don’t desire the insurance to protect yourself, you are likely going to be obligated to have it if you are holding your event on city, county, or even privately owned property. Many entities require you to have special event insurance policies to protect them from any lawsuits that may arise.

The most common limits that are required are $1,000,000 per occurrence and $2,000,000 aggregate. Aggregate means the maximum limit the policy will pay out for that term. Lesser limits are available if that is all that is required.

These policies generally have shorter terms which would cover only that event for it’s duration. There are longer terms available, up to 1 full year, if you plan on having multiple events throughout the year. In many cases each event does not need to be specifically scheduled. You should definitely check with your agent to ensure that you will be covered though.

Additional Insureds

You will likely be required to list the city, county, or individual company that owns the venue or property where the event is being held as additional insured. By listing these entities as additional insureds, they receive additional rights on the policy and they are typically notified in writing if your policy is ever to cancel.

Common Additional Insured Types

Below is a list of common entities that may require you to have general liability insurance for your hosted event.

  • Venue owners (convention centers, concert halls, playhouses,etc.)
  • City of Charlotte (or other city, county, state)
  • Charlotte Mecklenburg Police Department or other county police force
  • Neighborhood condo or home association
  • Apartment complex owner
  • Church
  • School district

What exactly are we talking about when we discuss special event liability insurance? Below is a list of some common events that may require liability insurance.

Common Types of Events Requiring Insurance

  1. Concerts
  2. Sports tournaments
  3. Beauty shows
  4. Auto shows
  5. Conventions
  6. Dog shows
  7. Fairs
  8. Flea markets
  9. Food tastings
  10. Hay rides
  11. Parades
  12. Poker runs
  13. Walkathons
  14. Races
  15. Music festivals
  16. Wedding receptions
  17. Religious meetings
  18. Craft fairs
  19. Festivals
  20. Dances
  21. Sports camps or clinics
  22. Christmas tree farms

When you call to request a quote for insurance on your event you will need to have certain information available. This type of policy can be quoted and issued very easy. In fact, it is much easier than most commercial general liability policies. You will need to provide some basic information though. In order to quote and issue your event insurance policy the company would need to know the following:

Items needed for quoting

  • The event type
  • Date and times of event
  • Location of event
  • Number of attendees
  • How long the event will last
  • Number of set-up and take-down days
  • If there will be any beer, wine, or liquor served
  • If there is private security at the event
  • If there are amusement rides
  • If there will be fireworks
  • If there have been any prior losses or claims

Two common occurrences that are not covered under your special event liability insurance policy are liquor liability and workers compensation. We will discuss both briefly below. If you have a need for either you should discuss this with your insurance agent.

Liquor Liability

Liquor liability coverage is required when you sell, serve, or furnish alcoholic beverages to customers. Any liability that arises from over-serving patrons or selling to minors would be covered under a liquor liability policy. Your special event liability policy would limit or exclude such losses so make sure you have a liquor liability policy in place if you plan to sell alcohol at your event.

Workers Compensation

Workers compensation, also referred to as employers liability insurance, is an insurance policy that will cover your employees or subcontractors for any lost wages or medical payments from losses while they are hurt on the job. NC law requires that any business with 3 or more employees have a workers compensation policy in force. This includes independent contractors if they don’t have current coverage themselves. If you want to protect yourself for any employees injured while working at your event, you should purchase a workers comp policy to protect yourself since these losses will also be excluded from your special event liability policy.

I hope that this article has answered many of your questions regarding special event insurance.  Please call us at 704-494-9495 to discuss any other questions you may have or to clarify anything that we have not discussed. We specialize in special event policies of all kinds throughout Charlotte and all areas of North Carolina.

We also have a limited market offering online quotes.  If it doesn’t fit the target market of the companies on this rater, feel free to give us a call so we can shop our other markets. 

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