If you own a home, you probably have home insurance. In fact, it’s likely that you’re required to have it. But do you have a home warranty? If you own a home, you probably have home insurance. In fact, it’s likely that you’re required to have it. But do you have a home warranty? You may be asking yourself what is a home warranty and do you even need one? The answer is yes!
A home warranty, like home insurance, is a crucial piece of protection for any homeowner. And it’s when you are covered by a home warranty and insurance that you have the most security and best coverage any homeowner can hope for. Below we’ll go into greater detail about each type of policy and why, most importantly, it’s crucial to have both.
Homeowner’s Insurance: Or Why You Need to Worry About What MIGHT Happen.
Theft, storms, fires, natural disasters – will any of these things definitely happen while you own a house?
For many people, probably not. But they might happen and that’s when you’ll be glad you have homeowner’s insurance. Of course, most people are actually required to have homeowner’s insurance. You’ll generally be required to have one before a bank will give you a mortgage on a home.
A home insurance policy covers four primary areas: the interior and exterior of a house, personal property in the case of theft, loss or damage, and general liability if someone is injured on your property. Policies are renewed yearly and have an average annual cost between $300 and $1000. Policies offer a deductible (the amount you're responsible for on a claim) and only after it’s been met do they take care of the additional costs.
Home Warranty: Or Why You’ll No Longer Need to Worry About What WILL Happen.
A home warranty is a service contract that covers repair or replacement of home systems and appliances that fail due to both age and standard wear and tear. HVAC, electrical, kitchen appliances, plumbing and washer/dryer may all be covered under a home warranty. For example, an AHS® home warranty covers up to 21 of your home’s major systems and appliances. Unlike home insurance, home warranties are not mandatory and are typically purchased as 12 month contract terms. They usually don’t require a deductible and you’re instead charged a moderate service fee.
In practice, a home warranty works like this: If your refrigerator stops working, a licensed and qualified service technician is dispatched to come out and evaluate the problem. Assuming the problem is because of wear and tear, age or another circumstance covered under the terms of your service contract, the technician will either make the repair or replace the appliance for only the cost of your service call. Each visit from a service technician typically costs between $75 to $125. Given the cost of a repair or potential replacement of the affected appliance or system, this can result in savings of hundreds or even thousands of dollars.
Homeowner’s Insurance and Home Warranties: Or Why It’s Time to Double Down on Protection For Your Home.
The best way to think about homeowner’s insurance and home warranties is as two different policies working together to give you maximum protection. Say you have a leaky pipe, depending on the nature of the leak it may be covered by one policy but not the other. The home warranty would cover the repair of the pipe but not the damage caused by the leak. On the other hand, homeowner’s insurance would cover the damage of a major leak but not necessarily the repair of the pipe.
With both policies you’re covered on both the repair and the damage caused by the leak. When it comes to home protection warranties and insurance are really two sides of the same coin. Home insurance protects you from the things that might happen. And with a home warranty, you no longer have to worry about the things that will happen. That’s coverage everyone can feel comfortable with.
Call Craig Pina at C. Pina Insurance Agency for your home warranty quote (508) 557-8224 or EMAIL
Wedding Insurance 101
What exactly is wedding insurance - and how does it work? Here's the inside scoop.
by Julie Komorn - The Knot
What Is Wedding Insurance?
Basically, wedding insurance protects a couple's investment from circumstances beyond their control, and reimburses expenses incurred. For example, what if your limo driver doesn't show up and you have to book another one the morning of the wedding—for three times the price? Or what if the groom's custom-made tuxedo is lost in airport baggage, and he has to buy a new one the day before the wedding? What if your reception space goes out of business a month before the wedding, and you lose your deposit and have to book another space? These are the types of wedding day financial losses that wedding insurance can help to protect.
Why Get Wedding Insurance?
Consider these scenarios:
How Much Does Wedding Insurance Cost?
A basic insurance policy that covers loss of photos, videos, attire, presents, rings and deposits usually costs anywhere between $155 and $550, depending on the amount of coverage you want. General liability insurance, which covers up to $1,000,000 for accidents, costs around $185.
Do You Really Need Wedding Insurance?
Before you buy wedding insurance, check with your each of your vendors to see how well they're covered—your reception site or your caterer may already have their own insurance, so you wouldn't want to pay for overlapping coverage out of your own pocket. Ask your vendors for a copy of their policy, and then figure out where you aren't fully covered.
When Should You Get Wedding Insurance?
The sooner the better. Let's say you put a deposit on your wedding reception hall 12 months prior to your wedding date and then it burns to the ground a few weeks before the big day. With wedding insurance, you'll be sure to get your deposit back. But note: Most insurance companies have limitations on how far in advance you can purchase insurance.
What Does Wedding Insurance Cover?
Problems with the site, weather, vendors, key people, sickness or injury are the top concerns come wedding day. There's usually a specified maximum amount, which can be claimed under each section, and a deductible also applies. Be sure to find out the details of your insurance plan.
Wedding Insurance Doesn't Cover...
Couples can take out supplemental policies to defend against damages incurred by other wedding-related items such as photography, videography and gifts.
Things to Consider
Every insurance policy and every wedding scenario is different. Be sure to contact Craig Pina at C. Pina Insurance—and have him explain the nuts and bolts to you. You want to make sure you understand every detail of your policy.
Car Insurance for New Drivers
Ok, car insurance for new drivers – this can be a touchy subject – especially if you are letting the teen make the decision. It is your choice and there are many auto insurance companies to choose from.
In Massachusetts, teens driving on their learner’s permits with a licensed adult supervising them do not need to have their own auto insurance policies. Once they start driving on their own, however, teens need auto insurance, so you will want to explore options to keep these costs reasonable.
Because the risk of a crash is significantly higher for young drivers, particularly during the first year of driving, your teen’s insurance rate likely will be higher than your own. Here are a few strategies to help you reduce insurance costs both now and once you add your teen driver.
The best way to go with a new driver – a teen driver – is to get her, or him (or have them save for) a “beater” car – like a 2000 Honda Accord or a 1995 Honda Accord – you know – a beater.
Then have them get just Liability insurance – including Part 5 – just to get it on the road. We always recommend higher limits of Liability like 50/100 or 100/300 – but with times being tight – not everyone can afford this when they start out.
So that is the angle I would take. Car insurance for a new driver or teen driver is very expensive in cities like Brockton – a bit less in the surrounding towns – you are looking at a substantial premium either way. Other ways to save on their auto insurance may include things such as;
Have your teen take the approved Drivers Education course while they have their permit – this course can be expensive – costs can range up to about $700 but you get that money back in the form of a discount over the first three years they are driving. After your teen has been driving for 3 years – their price will drop. Massachusetts changes pricing after 3 years of driving and after 6 years of driving.
Should a teen get their own policy? Or be put on their parent’s policy? I have always felt it is best to keep the policies separate. If the kid is on your policy and they have an accident causing bodily injury to others – you don’t want the insurance company to be able to go after you, your home and your insurance policy.
This is why it is best to have the kid have their own insurance – then in an accident situation – the insurance company will only be dealing with the teen’s policy and not the parents.
Many parents realize that it is less expensive to have their kids on their policy. If you choose this route I always recommend increasing liability coverages to $250,000/$500,000 and adding an additional $2 million umbrella. This will help keep you safe in case something does happen.
Ask your agent about all the discounts available including – ask if there is a “good student” discount available for your teen. Any good agent will automatically give you every discount available – but be sure to ask anyway. Be sure to discuss the rules of the road with your teen. Absolutely NO SPEEDING! This is what causes all the other problems.
In addition – no texting while driving – not only is it very dangerous but in Massachusetts it is also against the law.
Bottom line? You call the shots. Tell your teen the best way to go.
I see it all the time – teens wanting a real nice car right away – getting Full Coverage – insurance is can be upwards of $10,000 for the year – then they can’t afford both the car and the insurance – they effect their credit rating and on it goes.
Tell your teen the best way – and in the long run they will be happy you did! When looking for car insurance for new drivers call Craig Pina at C. Pina Insurance today!
A recent study conducted by the global consulting agency Accenture estimates that by the year 2020, 40% of America’s total workforce will consist of sole proprietor independent contractors. What this will equate to is more than one hundred million new “companies” with only one employee and each one will be required to have the same type of business insurance as larger businesses do. So, if you’re thinking about leaving the grid of your day job to pursue a career as an independent contractor, if you’re already running a sole proprietorship, or if you own a company that ever hires independent contractors, then the information that follows will help you understand the types of insurance policies that sole proprietors should have in place to operate protected.
If you own a company that regularly hires and depends on 1099 contractors, it’s highly recommended that you require those contractors to have at least some of commercial insurance described below in place for any products or services they provide to or on behalf of your organization. If you’re an independent contractor yourself, the policies that follow will properly protect you in the event that your actions give rise to a claim.
The Rise of the Extended Workforce
In many cases, contractors provide professional services like consulting or software development so they should carry some level of professional liability insurance. Typically, a $1,000,000 policy would be sufficient providing a substantial buffer between any claim that traces back to work performed by the contractor the company that hired them, and their insurance. It is also important to ensure that independent contractor’s purchase their own worker’s compensation insurance. This coverage will respond to pay any medical bills or disability payments injuries or illnesses they sustain while providing a client with their work and services. Because of the high costs associated with worker’s compensation claims, many companies opt to cover their contractors within their own worker’s compensation policy because the costs to the company are nominal. However, if you operate a business in an industry where the likelihood of injury to employees or contractors is high (construction, logistics, manufacturing), you likely want to avoid including contractors on your policy because their claims can adversely affect your rate for years. To round out a robust independent contractor insurance portfolio, consider carrying general liability insurance to protect against potential property damage or bodily injury and commercial automobile liability insurance if the contractor regularly uses their vehicle to perform services. Lastly, it’s never a bad idea to put in place an umbrella policy to provide additional limits over any underlying policies.
Verifying Business Insurance Coverage
Properly validating and tracking the coverage for independent contractors is critical. Companies should always keep updated certificates of insurance, or proof of insurance, on file which confirm that the contractors not only have the above-mentioned coverage in place but that they haven’t fallen behind on payments which can cause the insurance to lapse. Also, companies should require that their entity’s name is added as an additional insured to guarantee the contractor’s insurance responds first. Finally, businesses should also make sure that contractor policies provide their entity with a waiver of subrogation which will prevent the insurance company from subrogating (coming after) the company for claims filed by its contractors.
Keep in mind that there are other insurance policies that may be required and the requirements will vary from industry to industry. At the end of the day, as long as contractors have the coverages discussed above, both the contractor and their clients will be sufficiently protected against any potential claims.
At C. Pina Insurance Agency, we strive to make it simple, fast, and affordable for small businesses including independent contractors and sole proprietors to purchase and manage the commercial insurance they need to be effective. We will soon be announcing our self-service portal, available through our website, where contractors can produce proof of insurance instantly from any connected device and deliver the certificates directly to their customers. Keep an eye out for announcements regarding our self-service portal by following us on Facebook Here.
Insurance can be a complicated purchase. You’re not buying bread or milk. You’re buying a promise of protection that could potentially make or break your financial well-being. How do you know that you’re making the right choices about coverage? Are you sure you’re getting the best possible value for your dollar? The options can seem bewildering.
Various national and regional companies strongly value their relationships with independent agents. An agents' advocacy and advice tremendously benefit their policyholders. Here are seven reasons why the independent agency experience benefits you: