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“I got the exact same coverage for less.” Impossible, no two insurance policies are exactly the same.

What I feel like saying, “No way”. Over the years, I have read several insurance policies, some for carriers we represent some for our competition.  I can assure you that no two insurance policies are exactly the same.

Even if the declaration (Dec) page looks the same, when you start reading the policies side by side there are differences.

Years ago, the insurance industry followed a standard Insurance form either ISO or MSO forms.   But now, carriers are writing their own forms.  And most carriers have a proprietary enhancement endorsement.   When you get into the guts of the policy, the legal document that will pay or not pay when you have a loss, no two are exactly the same.

Why does that matter if the two insurance policies are not exactly not the same?

Generally what the carrier may give in one area they may take away in another.

For example, the carrier might give you $5000 for guns instead of $2500 on your homeowners insurance.   But only include $1000 for jewelry instead of $5000.

Depending on the person that may or may not matter.  But, if I have a lot of jewelry and no guns, I would be better suited with the 2^nd policy.  Whereas someone who likes to hunt might be better off with the 1^st policy.

But the declaration pages might look the same in this example because those limits are generally in the policy not on the declaration page.

The words and/or can make a huge difference.  For example, company A says that we will pay for claims for theft if you have an alarm or if there are signs of a physical damage.  Company B says, we will pay for claims for theft if you have an alarm and if there are signs of physical damage.      One-word change but a huge difference if there is a claim that needs to be paid.

So, what are you as a client to do?

First, make sure that you are working with an agent.

This way they can find out what is most important to you.   Like in the exampleabove, do you need more gun coverage or more coverage on your jewelry.

Take the time to read your policy.  Uou will know what coverage that you have and make a list of the top of coverages that you want to have in your new policy.  And discuss that with your agent to confirm if they are available or not.

Remember that true cost of your insurance is not just the premium you pay.   The total cost of  insurance includes your premium, your deductibles, and your uncovered claims.

I had a client call us after she moved her coverage and then proceeded to have an accident where she backed into her garage.

It was then that she discovered that her new insurance company increased her collision deductible from $250 to $1000.  And rather than having 1 deductible for the home and auto, like she had with us, she had 2 deductibles she had to pay.   Plus, they did not include first loss forgiveness, so on the renewal her premium took a huge jump.

Don’t let this be you.   

Do your research, review the coverage.  If anyone tells you that they are giving you the same coverage,  know that this is never the truth.   No two policies are exactly the same!

Did your business receive a loan from the Small Business Administration (SBA)?

If you get an SBA loan, you will need to provide them evidence that you have business personal property insurance, commonly referred to as contents coverage.

Business personal property is to cover the property and equipment that is used in your business.  It does not provide building coverage.

This includes things such as:

• Chairs
• Desks
• Computers
• Specialized equipment like restaurant cooking equipment or machinery used in the business.

COVID 19 has caused a lot of business owners to apply for special SBA loans to continue their business

We have had several clients that needed to obtain business personal property coverage in the last few months.  These clients elected to have general liability insurance for their business.

Does general liability insurance include business personal property coverage?

General liability insurance coverage only does not provide personal property coverage.  Property coverage could be added as another line of coverage to your general liability policy.  But it is not automatically provided.

How much business personal property coverage will you need?

There is no universal answer.  It depends on how much your business owns.  Think about everything you own for your business: equipment, fixtures, supplies, and inventory.

That is the amount of coverage that you need for your business personal property coverage.

If your SBA loan is $25,000 or greater, the SBA will require that the business personal property coverage be at lest 80% of the loan amount.

Why is the SBA loan requiring Business Personal Property Coverage?

They are providing you with a loan.  When someone loans someone money they want some type of collateral for the loan.  They are using your business property as the collateral.  The SBA will have to be added as a loss payee on your business personal property coverage.

I want the minimum amount of coverage.

Business personal property is generally not a huge cost in an insurance program.

Most carriers require your property to be 80% insured to value.  It it is not, they will penalize you if there is a claim.

Say that you have $10,000 in contents but decide to insure for $5,000.  There is a loss for a $2,500 claim.  The insurance company determines that you should have $10,000 in coverage.  But your limit is only $5,000.  So, of that $2,500 claim they will only pay 1/2 of the claim amount less your deductible.  Does not leave you in a good place.

All my stuff is old, so it is not worth much.

Most insurance policies offer replacement cost coverage for the business personal property.  This means that the company will pay the cost to replace the item with like quality new product.   So even though your desk is 10 years old, the insured value should be based on what it would cost to go and buy a similar desk today.

Business liability insurance has coverage for rented premises, is this all I need?

Again, this is a liability coverage which protects a 3^rd party and does nothing to indemnify you.   Damage to premises rented provides coverage if you are liable for fire damage to a place you are renting.  If you are in a temporary location for less than 2 weeks, this coverage provides broader causes of loss then just fire.

I work out of my home.  Will contents coverage from the homeowners insurance policy work as proof for the SBA loan?

A standard homeowner’s insurance policy may not provide the full contents value to your business personally property.  The coverage is limited to $2,500 on premises and $250 off premises.

The homeowner’s policy is written in your individual name and the loan from the SBA was written to your business.  The SBA is looking for the proof of business personal property to be in the name of the business.   Therefore, they may not accept the homeowner’s coverage as proof of coverage for the loan.

You should always review the terms and requirements of the loan before applying or accepting the loan.

Contact Huff Insurance

Feel free to contact us to go over your insurance requirements.  Be sure to have the appropriate coverage and the approximate cost.  If you do not, you may be left with unexpected additional costs.

Are you a contractor who does side jobs?

We know a lot of contractors who work for a company, but make extra money doing side jobs.  We know this is a common thing to do in the contractor trade.

But did you know that you could be risking everything if one of those side jobs goes bad?

We know side jobs happen all of the time.  We also know that the income from the side work can be pretty substantial.  There are contractors that we know who make as much money on the side as they do in their full time career.   The side work money is counted on in order to support their family.

All kind of contractors do side work, including:

• Electricians
• Plumbers
• HVAC Contractor
• Drywall contractors
• Roofers
• Painters
• Landscapers / Hardscapers
• Paving contractors
• etc.

But is your contractors side work insured?  

Most contractors do not even think about getting contractors insurance for their side work.  That is a mistake that can cost them everything they have worked so hard to earn.

For example: Say you are electrician who is working for a larger company or for a government entity.  You decide to start doing smaller jobs on the side to make some extra money.  A friend asks you do do some electrical work on their home.  You agree to a price for $1,000.  they agree because it would cost them $1,500 if they went through the electrical contracting company.

You do everything to your ability and finish the job.  A week later, something goes wrong with the work and causes your friends home to catch fire. The fire results in $25,000 in damages to their home.

This issue can even happen if you decide to do the work for free as a “favor”.  Once family members know what you do for a living, they will undoubtedly ask for the favor to fix something in their home.  So can you imagine a favor costing you your life savings?

Where do you think they will look to get paid for the damages? 

That’s right, they will be coming after you to pay for the damages that resulted from your work.  When it comes to money. sometimes friendship takes a second seat.  So even though it may have been a favor to do the side job, your friend will want their house repaired and they will expect you to pay for it.

How will you pay for this?

Since the work was done on the side, your company’s electrician’s insurance policy will not cover the claim.  So you will be responsible for the damages.

Will you have enough money in the bank to pay for the $25,000 in damages?
Will they file a lawsuit and force you to sell assets have your wages garnished?

How could you have protected yourself from for your side jobs?

You can buy contractors insurance for your side jobs.  For about $600 per year (maybe more for higher risk contractors such as roofers), you could get up to $1,000,000 in liability insurance fr your side work.  And for a a little more, you can get your tools and equipment insured as well.  And you may even be able to buy contractor’s E&O insurance that can c

For the cost of about one side job per year, you can have liability insurance for your side job work.  And for a little more, you can insure your tools and even add contractors professional liability coverage.

Contact Huff Insurance Today

Huff Insurance is a Trusted Choice™ independent insurance agency located in Pasadena, Maryland.  We can license to write insurance in Maryland, Pennsylvania, West Virginia, Delaware, Virginia and Washington DC.

Will homeowners insurance / renters insurance cover belongings in a storage unit?

Storage units are everywhere these days.  Homeowners and renters all around are storing some of their belongings in these storage units.  The question that comes up all of the time is: Are the belongings in the storage unit covered by homeowners insurance?   For renters, is the personal property in the storage unit covers by renters insurance?

Homeowners insurance policy language

The following is the exact wording from the standard ISO form for HO3  (homeowners insurance) and (renters insurance).  This references the coverage of coverage for personal property.  This language has changed in the newest ISO form, but not all companies have adopted the new forms at this time.  We will discuss the change later in this blog.

C. Coverage C – Personal Property

1. Covered Property

We cover personal property owned or used by an “insured” while it is anywhere in the world. After a loss and at your request, we will cover personal property owned by:

a. Others while the property is on the part of the “residence premises” occupied by an “insured”; or
b. A guest or a “residence employee”, while the property is in any residence occupied by an “insured”.

2. Limit For Property At Other Residences

Our limit of liability for personal property usually located at an “insured’s” residence, other than the “residence premises”, is 10% of the limit of liability for Coverage C, or $1,000, whichever is greater. However, this limitation does not apply to personal property:

a. Moved from the “residence premises” because it is being repaired, renovated or rebuilt and is not fit to live in or store property in; or
b. In a newly acquired principal residence for 30 days from the time you begin to move the property there.

How does this apply to belongings in a storage unit?

For a policy with the wording above, the property in the storage unit will be covers as part of the total personal property limit shown on your declaration page.  The property would not be subject to the 10% of coverage c limitation.  The belongings would still only be insured against the covered perils in the policy form.

There is a misconception that homeowners insurance policies only would cover up to 10% of the value of the total personal property coverage on the policy. But per the above policy language, the 10% limitation applies when the personal property is located at an insured’s residence other than the residence premises listed on the policy.

Unless a storage unit is a residence, the storage unit would not be classified as another insured’s residence.  Therefore, the special 10% limit should not apply to property in a storage unit.

Does this apply to all homeowners insurance policies?

Not all policies are written using the standard ISO form with the policy language above.  Many insurance companies use the ISO form as a guide.  They will use large portions of the form and then make changes to specific areas.

Some company have place the 10% limit on property being kept in a storage unit on their policies.

There is also a newer version of the ISO form that also places the 10% limitation for property in a storage unit.

Sample wording from a Nationwide Insurance policy

b. Self-storage Facilities

Por limit of liability for personal property owned or used by an “insured” and located in a self-storage facility is 10% of the limit of liability for Coverage C or $1,000, whichever is greater.  However, this limitation does not apply to personal property:
(1) Moved from the “residence premises” because it is:
  (a) Being repaired, renovated, or rebuilt; and
(b) Not fit to live in or store property in; or
(2) Usually located in an “insured’s” residence, other than the “residence premises”.

Are belongings in a storage unit covered by homeowners insurance?

There is insurance coverage for property kept in a storage unit.  But, the amount of coverage can vary based on the specific policy form being used by the insurance company.  Whether there is 10% or 100% of coverage c limitation on the property at the storage unit depends on how the specific policy language.

If you have the 10% limit, you will have to know the value of the property in the storage unit to make sure you have enough coverage.

For example, have $100,000 personal property coverage on your home or renters insurance policy.  With this limit, you would only have coverage for $10,000 worth of property in the storage unit.  This could be enough for your situation.  Or it could not be enough based on the value of the items in storage.

Call Huff Insurance

Not sure of your coverage?  Give us a call at 410-647-1111. If you are a client, we will have access to your policy to see the coverage amounts.  If you are not a client, then we can still talk, but may not be able to give specific answers without see your actual insurance policy.

Should college roommates get their own renters insurance?

We get these questions dozens of times every year.  Does my child need renters insurance while living at college?  If so, should my child in college and their roommates each get their own renters insurance?  Can my child and their roommates all be on the same renters insurance policy?

We have a blog titled Roommates and Renters Insurance which covers a similar topic as the one discussed here.

Every year, we receive questions about college roommates and renters insurance. Let’s dive into those questions and focus on the details here.

Does my child need renters insurance while away at college?

This is one that we always answer the question with a question of our own.  Does you student live in on campus college housing or rent a place off campus?

Off Campus Apartment Or House Rental

If your child is renting an apartment off campus, then they should get their own renters insurance.  In fact, most landlords will require it as part of their lease.

Most off campus apartments or houses involve having roommates.

The big question that comes up all of the time for this is:

Does each of the college roommates need their own separate renters insurance?

Our advice is always yes.  Have each college roommate get their own renters insurance.

We wrote a blog about titles Roommates and Renters insurance. In this blog, I go over the insurance coverage issues that can come up by having non married roommates on one renters insurance policy.

There are some companies that will allow 3 or 4 unrelated college roommates to be on the same renters insurance policy.

Many may be thinking that this is a great idea.  After all, one policy will be a lot cheaper for the group than all 4 of them buying their own policy.  And they can add up the value of all of their personal property to make sure everyone’s belongings are insured.

So why is this a bad idea?

Let’s talk about the liability insurance part of the renters insurance policy.

The roommates buy a policy to cover their belongings and buy the $300,000 liability limits that the landlord requires.  They should be OK right?

Well, maybe not.

Let’s say that the roommates decide to host a college party on Friday night.  Trust me, it happens.  And at that party, a guest drinks a little too much and falls down the front steps as they are leaving to go home.  They have a pretty serious injury you know the lawsuit is going to be on the way.

Three months later, the lawsuits comes in.  That’s right, it is a plural for lawsuits.  The injured party is suing each college roommate separately for $300,000.

The roommates think that everything is fine.  After all the renters insurance has a $300,000 liability limit, so each college roommate should be covered for the $300,000 right?

That would be wrong.  The $300,000 is a total per claim limit for the renters insurance policy.  It does not apply per named insured.  In essence, the total being sued for is $1,200,000, which is the $300,000 times 4.

Now if one of the college roommates decides to settle the lawsuit for $300,000 for themselves, then what is left for the others?  The answer is $0.  the liability limit for the claim is exhausted, so the other roommates would be responsible to pay for their own defense costs as well as any settlement that may be awarded.

Do you want to have your child in that position?

I know I would not.

We hear every year of a college student dying at a party due to drinking too much or experimenting with drugs.  Imagine what the amounts of those lawsuits are for the college roommates who hosted the party.

For a few hundred dollars per year, we recommend getting your college student their own renters insurance policy.

On Campus Dorm Room

If they live on campus in a dorm, then the answer is almost always no.  They probably do not need their own renters insurance policy.

A standard homeowners policy will provide their liability insurance as long as their permanent residence is still with you.  For their personal property, the homeowners insurance provides coverage for a limit of up to 10% of your personal property coverage that you have on your homeowners insurance.

If you have a homeowners insurance policy, it usually would be enough coverage.  If you have a renters insurance or condo insurance policy, you need to make sure that the 10% is enough to cover the value of property your child has at their dorm.   The personal property coverage limits on renters and condo policies are usually less than that of a homeowners insurance policy.

Since the college usually provides the furnishings for the dorm, 10% usually is enough to cover the child’s belongings in a dorm room.  But it is still always best to make sure.

If you do not have any of these policies, then we would recommend that you get a renters insurance policy for your child while at college.  This will protect their belongings and provide liability insurance for them.  A lot goes on at college, so you want to make sure they are properly protected.

There could be a couple of ways to save on your auto insurance that could help offset this cost as well.

1. Multi policy discount for renters insurance.  If your insurance company allows you to place it on the same insurance package, you could be eligible for a discount.
2. Good student discount.  If your child is still on your auto insurance and is making a B average for grades, there could be a good student discount for you.
3. Away at school discount.  If your child’s school is more than 100 miles away and they do NOT have a vehicle with them, then there could be a discount for you.
4. If they do have a vehicle with them, make sure the garaging address is updated with your auto insurance.  Sometimes this could result in a lower rate for that particular auto.  It could also cause the rate to go up if they are in a urban area.  But either way, let the company know so you do not face any issues should there be a claim.

Call Huff Insurance

Huff Insurance is a Trusted Choice® Independent Insurance Agency her to help you.   We understand everyone’s situation is different.

Fill out the quote form on this page or give us a call to discuss your situation.

Only pay for what you need is a dangerous concept for auto insurance?

We hear the auto insurance ads on TV and radio every day.  “Only pay for what you need.”

But is it even a possibility to make this happen?

The major issue we have wit this slogan is, can you really know how much insurance you really need?

I will discuss why the slogan ‘only pay for what you need” for auto insurance can be a dangerous concept.

Only pay for what you need for auto insurance

Is it possible to only pay for what you need for your car insurance?

There are several parts to an auto insurance policy.  There are actually some coverages on the policy that you can choose to pay for what you need.

Physical Damage portion of the auto insurance policy

For example, you can choose to have comprehensive and/or collision coverage.  This is often referred to as physical damage coverage and sometimes erroneously as “Full Coverage” (which really does not exist).  And within those coverages, you can choose the amount of the deductible that you want to carry.  The deductible is the portion that you would be responsible for paying should you file a claim.

So, if you have an older car, you may not need to carry collision coverage.  This is because the value of the car diminished so much, that it does not make sense to pay for the collision coverage.  So in this case, you can say that you do not need to pay for this coverage.

For physical damage coverage, the risk amount is known.  You know the value of your car (or at least the approximate value).  And you know the deductible amounts that you have chosen to pay for.  So if there is a claim, you know what you will be responsible for, whether or not you have physical damage coverage on your car insurance policy.

Liability portion of the auto insurance policy

Unlike the physical damage coverage above, liability coverage is a great unknown.  If you ask us how much liability insurance you need, we cannot give an amount as an answer.  Our answer to this question is “as much as you can afford to buy.”

In my opinion, it is impossible to only pay for what you need for liability insurance.

If you are at fault for an auto accident:

• Can you tell me the extent of the injuries to the other party before it happens?
• Can you tell me how much work they will miss or even if they will be able to work again?
• Are you able you tell me the value of the person’s life should loss of life occur?
• Can you tell me the amount of the lawsuit that you will be handed from the injured person’s attorney?

The short answer to all of the above questions is NO.  There is no way to know the answers to these questions ahead of time.

So therefore, how would it be possible to only pay for what you need for your auto liability insurance?

Are there auto insurance coverages that you can only pay for what you need?

There are some coverages on the auto insurance policy that you do not have to pay for if you do not need them.  They are usually the smaller add on coverages though.

These coverages can include:

• Roadside Assistance:  If you have AAA or another third party service for roadside assistance, then you do not need to pay for it on your auto insurance.
• Rental Reimbursement: If you have enough vehicles in your household, then you may not need to pay for rental reimbursement on your auto insurance.
• Identity Theft: If you have identity theft coverage on you home insurance or through a third party, then you do not have to pay for it on your car insurance.
• Original Equipment Manufacturer (OEM) Coverage: If you are Ok with using aftermarket parts for repairs to your vehicle, you do not need to pay for the OEM coverage on your auto insurance.

Call Huff Insurance at 410-647-1111

At Huff Insurance, we design insurance plans to fit your needs.  Call one of our experienced agents to help you today.

Do you have a toy that need insurance?

Do you have insurance for your motorized toy?

What do we mean by motorized toy?

In Maryland, these toys are very popular:

• Boats
• Jetskis/Waverunners
• E-Bikes (pedal assisted bicycles)
• Dirt bikes
• ATV’s
• Golf Carts
• Compact Tractors
• Etc.

Boats and Jetskis/Waverunners

Did you know that boat insurance is not required to register and operate a boat or jetski/waverunner in Maryland?  Although insurance is not required, this toy needs insurance.

A scary statistic is that around 40% of boats and 50% to 60% of  jetskis/waverunners and other personal watercrafts on the water do not have any insurance.

And in Maryland, boater safety courses are not required for people born prior to 6/1/1972.  So there is a possibility of having an untrained, uninsured boater right beside you on the water.

If you have a smaller boat, usually less than 20 feet long and less than 50 horsepower, may be covered for liability under your homeowners insurance policy.  Check with your insurance company to verify.

Protect yourself by make sure you have the proper insurance for your water toy.

Golf Carts, ATV’s and Dirt Bikes

This is another category of toy that is not required to have insurance in Maryland.  (Unless the toy is registered for street use)

Golf carts ATV’s and dirt bikes can usually be insured on a motorcycle insurance policy.  There may be some coverage under your homeowners insurance policies for certain circumstances.  Check with your policy, agent or company to confirm your specific coverage.

E-Bikes

E-bikes have zoomed into popularity for a bunch of cool reasons.

First off, they’re a blast to ride on trails and make getting around the city a breeze, especially when you’re trying to dodge traffic jams or save money on gas.

They’re like regular bikes but with a kick of power that helps you go faster and not get as tired.

But here’s something you might not know: even though they’re awesome, most home insurance policies give them a thumbs down for coverage. That means if your e-bike gets stolen or damaged, you might be out of luck unless you get a special insurance policy just for your e-bike. It’s a smart move to protect your ride and keep the good times rolling without any worries.

Why is toy insurance important for you?

Not having insurance on your toys can create a very dangerous weakness in your insurance protection plan.  Not only should you have insurance on your toy, but you should also add it to be covered by your umbrella insurance policy.  If you do not have the proper insurance, you could be putting all of your assets at risk.

Real Life Example

We have a friend in California who owned a Gator style ATV.  He had a get together and his teenage kids were operating the ATV with their friends as passengers.  Unfortunately there was a tragic accident and one of the friends lost their life.  Our friend did have insurance on the ATV and had it added to his umbrella insurance policy.  The total payout for the claim was in the 5 million dollar range.  Fortunately, between the ATV insurance and the umbrella insurance, he had enough coverage to pay the claim.  had he not had the insurance, he may have lost everything he owned and possibly had his future wages garnished.

Could you pay a $5,000,000 judgement without having the insurance?

We believe in having the proper toy insurance

When our son was 12, we bought him a Polaris ATV for Christmas.

When we bought it, we made sure to buy an ATV insurance policy.  The policy did list him as an operator, even at 12 years old.  We also added the ATV to our umbrella insurance policy.  We were unwilling to risk our assets should there have been a tragic ATV accident.

When our son was 12, we bought him a Polaris ATV for Christmas.

When we bought it, we made sure to buy an ATV insurance policy.  The policy did list him as an operator, even at 12 years old.  We also added the ATV to our umbrella insurance policy.  Not doing so would have risked our assets should there have been a tragic ATV accident.

We hear of tragic accidents every year involving go carts, ATV’s, boats, jetskis, etc.  These accidents can and have caused serious injury or death.

You buy these toys to have fun.  Don’t risk everything you own by not taking the step to buy the right insurance for them.

Call Huff Insurance at 410-647-1111

We are here to work with you.  We want to make sure that your desire to have fun does not cost you your life savings.

Can you get policy perks for homeowners insurance with Huff Insurance?

The answer is YES you can.  The TV and radio commercials lead you to believe that policy perks for homeowners insurance is only available through their company.

I’m here to tell you that most of these policy perks are available with our companies as well.

Policy perks for homeowners insurance can include:

Guaranteed replacement cost

This perk can be purchased alone or as part of an overall enhancement endorsement.  This perk guarantees that you will have full replacement cost for your home should a disaster strike.

There are times of disaster when the prices of labor and building materials can significantly spike.  This spike can actualy be big under certain circumstances.   It can cause the cost to rebuild your home to be more than the building coverage limit on your policy.   This policy perk will guarantee that the company will pay the full replacement cost to rebuild your home.

There are a some stipulations to the guaranteed replacement cost perk:

• Your home has to be insured to for the replacement cost value at the time of the policy effective date.  You cannot just gorssly under insure you home and expect the company to pay for the replacement cost.
• The ordinance and law limit may still be enforced.  The guaranteed replacement cost perk may not automatically increase the amount that the company will pay for added costs to rebuild up to current building codes.  Check out the blog and video by Nancy Nicklow titled Ordinance and Law Insurance- When Replacement Cost Is Not Enough.

Claim Forgiveness

If you go claim free with a company for a set number of years, the company will not directly charge you for the claim.  The time period for earning this perk for homeowners insurance is usually 5 years.  It can vary by company.  Keep in mind that although you may not be directly charged for the claim, you may still loss a claims free discount perk with some companies.

Claim Free Discount

Like claim forgiveness, the claim free discount perks can be earned.  The time period to earn this perk is usually 3 years with most companies.  As stated above, this discount can be removed even if the claim is forgiven with the claim forgiveness policy perk for homeowners insurance.

Multi Policy Discount Perk

This is a policy perk that can provide a great savings on your homeowners insurance policy.  The most common bundle discount is the auto insurance policy bundled with a home insurance policy. Combining these two policies can save you up to 20% on your insurance rates!

If you bundle more policies, the multi policy discount gets bigger.  Other policies that you can bundle for the discount include: Umbrella insurance, Motorcycle Insurance, Boat Insurance, Dwelling Fire Insurance (for rental properties), etc.

Call Huff Insurance at 410-647-1111

Call our office to discuss the policy perks that are available for your homeowners insurance.

**Not all policy perks are available from all insurance companies.  To see what perks are available to you, check with your specific auto insurance company.

Can you get auto insurance policy perks with Huff Insurance?

YES you can.  We know there is a national insurance company touting their policy perks on TV and radio on a daily basis.

Did you know that these same policy perks are available to you with most of our top rated insurance companies.

Perks for auto insurance policies can include:

Accident Forgiveness Perk 

Accident forgiveness is a perk where your car insurance rates will not be increased at your renewal due to being charged with an accident.

The insurance companies we represent make this per available in two different ways:

1. You can purchase this policy perk as part of an auto insurance enhancement endorsement.  Most companies have an enhancement endorsement available on their car insurance policies that add one or more perks or additional coverages to the policy.
2. The policy perk can be earned over a period of time.  So if you go three years without having an accident with that  company, they will add a first accident forgiveness perk to your auto insurance policy.  Depending on the time period of being accident free, you could have a minor accident forgiveness or any accident forgiveness perk.  For minor accident forgiveness, the insurance company sets a dollar threshold for the claim in order for it not to affect your rates at renewal.  For example, a claim under $5,000 may be used by some companies.

Keep in mind that this accident forgiveness only applies to the insurance policy that you have with that company.  If you decide to move your insurance, and the forgiven accident is within 3 or 5 years, it will be rated for with your new auto insurance company.

Some companies offer a claims free discount.  You may not get charged directly for the accident on your renewal with your carrier.  But you may lose the claims free discount that you have earned.

Insurance Bundle Discount Perk

This is a policy perk that can provide a great savings on your auto insurance policy.  The most common bundle discount is the auto insurance policy bundled with a home insurance or renters insurance policy. Combining these two policies can save you up to 20% on your car insurance rates!

If you bundle more policies, the multi policy discount gets bigger.  Other policies that you can bundle for the discount include: Umbrella insurance, Motorcycle Insurance, Boat Insurance, Dwelling Fire Insurance (for rental properties), etc.

New Car Replacement Perk

This policy perk is available to new cars that you may have on your policy.  Most companies have an age limit on the age of the cars to be eligible for this perk.  Usually 2 or 3 model years old. Therefore, if you buy this perk and your car is deemed a total loss due to a covered accident.  Your insurance company will replace your car with an new car of the same make and model.

You can purchase this perk as an option on an auto insurance policy.  Some companies include it on their enhancement endorsement packages.

Telematics Discount Perk

The telematics perk can provide a significant discount for your car insurance policy.  Most of our companies offer an up front discount for just signing up for their telematics program.  The up front discount can be 5% to 10%.  Based on your diving habits, you can earn a discount on your next renewal of up to 50%!   This is a great way for you to get a huge discount on your auto insurance for your safe driving habits.

Most companies now use a smartphone app for their telematics tracking.   They make it simple for you to sign up and register for their program.

Here is our blog that goes into the details of how the telematics program works.  This blog also contains a short video on the topic.

What is usage based auto insurance?

Safe Driver Discount Perk

Just like the telematics perk above, the safe driver discount, you earn this policy perk based on your safe driving habits.  Most auto insurance companies offer a discount if you do not file a claim in the past 3 to 5 years.  And some companies refer to this as their claims free discount.

Even if you have accident forgiveness, you can still lose this discount for having the accident.

Diminishing deductible perk

If you buy this perk, your comprehensive and collision deductibles can be decreased by an amount for each year that you go without having an accident.  For example, you start your policy with a $1,000 collision deductible.  Some companies will reduce your deductible by $100 for each year you go without a claim.  Co if you stay with them for 4 years and have no claims, your collision deductible will go down by $400, to $600.  If you have a collision claim in year 5, your deductible will be $600 for that claim and not $1000.

You can purchased this perk at the time of the policy inception.  You can buy it by itself or as a part of a car insurance company’s coverage enhancement endorsement.

Claims Free Cash Back Perk

You can get money back from your insurance company for not having a claim.  We have a couple of companies that will pay you back for safe driving.  If you buy this perk, you will get a percentage of your premium back for every year that you do not have a claim.

Call Huff Insurance at 410-647-1111

We are a Maryland independent insurance agency here to help you with your insurance protection needs.  We represent many insurance companies so we can find you the best policy with the best policy perks that fit your needs.

**Not all policy perks are available from all insurance companies.  To see what perks are available to you, check with your specific auto insurance company.

Are you changing home insurance companies?

If you are changing home insurance companies, besides comparing the coverage, here are a couple of things to keep in mind.

1. How is the new policy getting paid? Who pays for your home insurance premiums?
2. When do you cancel the old home insurance policy?

Who pays your home insurance premiums?

• You
• Your lender through mortgage escrow

Are you are paying your insurance premium directly?

If so, then there is no question about who is paying the new premiums when you are changing home insurance companies.  You would send a request to cancel the old policy and then pay the bill for the new insurance policy.

Does your bank or lender pay for your home insurance premiums?

If so, then when you change home insurance companies can determine who is paying for the new policy.

What if your bank does not pay for the new policy mid term?

If you are changing home insurance policies mid term, then you may be responsible to pay for the premiums for the new policy.  Most lenders set up the escrow account to pay home insurance premiums once per year.  So if they already paid for your home insurance policy at inception, they may not be willing to also pay for the new policy premium.  The good news is that when you cancel your old home insurance policy, any refund will come directly to you.

What happens if your bank does pay for the new policy mid term?

When changing home insurance policies, we have seen some banks that will pay for the new policy mid term.  Some banks will pay for the home insurance when they receive the new invoice.  In this case, they have essentially paid for two insurance policies in a single year’s time.  Doing so, may cause your escrow balance to fall below their acceptable threshold.  So when you cancel the old policy and get the refund, we usually advise our clients to send that refund to their bank and apply it all to their escrow account.  This will help ensure that the escrow account is not shorted and that their monthly payment will stay in line upon the annual escrow account review.

Are you changing your home insurance company at your policy renewal date?

If you are changing your home insurance at the policy renewal, there are some important time frames to keep in mind.

Insurance companies can send the policy renewal offer and invoice out up to 60 days prior to the renewal date.

So, if you are changing home insurance companies within 60 days of your renewal date, you need to do a couple of things.

Notify your lender right away that you are changing companies

• If they have not yet paid the home insurance renewal, let them know that you are changing companies and to not pay the old company.  Get them a copy of the new policy and invoice to pay the new company.  They may also want to see the cancellation form for the old policy.
• What if they already paid the old policy?  If the bank has already paid the old policy, then contact them to see how they want to handle paying for the new policy.  They can handle is a couple of different ways:

1. 1. 1. They will pay for the new policy.  Some banks will do this to make sure that the new policy is actually paid for.  If they do this then you need to see how they want to handle the refund for the old policy.  Odds are that they will want you to send the refund back to them so they can apply it to your escrow account balance.  Doing this will help prevent a deficiency in your escrow account like we described above.
      2. They will not pay for the new policy.  In this case, you will have to pay for the new policy yourself.  But, like we described above, when you cancel your old insurance policy, the refund will come directly to you to keep.

Some of the direct or online insurance companies that may not have this conversation with you when you are changing your home insurance policy.  This can cause unwanted stress and confusion.  

Call Huff Insurance today to discuss this or any other insurance issues.

Your insurance agent should let you know of these scenarios when talking to you about changing your home insurance company.  If they are not, then do not hesitate to call one of our agents to help you.

Huff Insurance is an independent insurance agent that can handle all of your insurance needs.  We offer a wide variety of solutions for personal insurance and business insurance.

Need to find a lender to refinance your home?

Check out our blog on home refinancing with the link below and use the form on that page to request a lender referral.  We know several top local lenders that can help you with your refinance.  We do not receive any fees or renumerations for referring them.  Huff Insurance refers them because we trust them to handle your business.

Things to do with homeowners insurance when refinancing your mortgage?