Everything You Need to Know About Personal Insurance

When you invest in an asset, you need protection against it being damaged. Insurance protects you and your assets. It is also required by mortgage banks and auto lenders.

• Homeowners
• Renters
• Farmowners and Farms
• Automobile
• Valuable or Personal Articles
• Boats, RVs, UTV’s and ATV’s
• Life Insurance
• And more

Our team will ask you thoughtful questions about your goals, your exposures to loss or accidents, your tolerance for risk and your financial needs. Together, we craft the proper program for your objectives.

Bundling is purchasing your home and auto insurance from the same insurance company. Sometimes, these are called multi-policy discounts. There are always reductions in premiums when you bundle – sometimes significant savings!

We are glad you asked. Every insurance company has its unique underwriting appetite. By working with an independent agency, they can match you with a carrier which aligns with your risk profile. For example, some insurance companies are comfortable insuring older homes. Some carriers only want to insure newer homes. Some will insure youthful drivers competitively and some will not. An independent insurance agency can help pair you with the company that provides the greatest value for your family.

There are countless variables that determine premiums, including your community’s fire protection rating, your distance from a fire department, your limits of insurance, your claims history, and (yes) your credit score. In addition, insurance companies have different “appetites.” For example, some are comfortable with a valuable home miles from a fire department and some are not.

No, all insurance companies are not the same. The best way to pick the right carrier is to work with a trusted, independent agent. A good independent insurance agent vets the insurance companies for you. For example, at Dominion Risk Advisors, we only partner with carriers that are rated A or better by A.M. Best (a financial rating company). We evaluate the quality of their policies and the effectiveness of their claims departments. We only work with carriers where we have a relationship built on years of trust. That ensures that you will be taken care of at your greatest time of need.

At a minimum, you and your agent should review your coverage annually. The Private Client practice at Dominion Risk Advisors will send you a letter before your renewal with questions about changes and to start a conversation about what is happening in your families’ lives. At any time that you have a major purchase or a change in life, you should call your agent. We are always here to help adjust your plan when you have a major life event.

A homeowners insurance policy is a package of coverages:

• It protects the structure, your contents, and outside structures.
• It protects against allegations of liability – an assertion that someone was hurt on your property, hurt by you and/or that you damaged someone’s property.
• If the home is damaged, it can cover your extra living expenses.
• There are additional protections available on the homeowners policy. That is why you need to work with a knowledgeable agent in whom you have great trust.

A typical homeowners policy does not include coverage for wear and tear, flood, and earthquake. There are other exclusions that you need to review with your agent. You can purchase flood on a separate policy and earthquake may be added to your home for an additional premium.

There are many considerations:

• For the home itself, you need to insure the cost to rebuild it today (not the market value nor the tax assessed value). Our Private Client practice will help you evaluate the cost to rebuild.
• The contents and other limits are usually calculated as a percentage of the value on the dwelling.
• For liability, we advise that you buy “the most you can afford and the least with which you are comfortable.” That may sound trite, but liability insurance protects your personal assets against lawsuits. We will not issue a homeowners policy with less than $500,000 liability limits. In addition, we recommend that all clients carry an umbrella liability policy.

Candidly, it depends. Coverage is typically excluded. If included, coverage is limited. We highly recommend you discuss this with your agent. We can help you get the right protection for your business.

Yes. The standard homeowners policy has sub-limits (specific, smaller limits) for certain types of valuables, such as jewelry, art, silver, and guns. Work with your agent to evaluate the limitations in your policy and “schedule” important valuables. The Private Client practice at Dominion Risk Advisors can help you with this.

No. When you have any change to your home or any major life event, contact your agent. We can help you modify your policy and evaluate the coverage that your contractor is providing.

You should always hire a contractor who has workers’ compensation and general liability insurance. We can help you through the process of getting a “certificate of insurance” from the contractor. In certain circumstances, your homeowners policy would be exposed to a claim if a contractor’s employee were injured at your home. We can advise you on how to manage that exposure.

Like your homeowners policy, the auto policy is a package of coverage for harm to your property (vehicles in this case) and for harm you may cause to others:

• Liability is the most important coverage. All your assets are at risk if you cause serious bodily harm to others while driving your car. You need good liability coverage.
• Medical Payments – covers injuries sustained by passengers without admitting faut.
• Physical Damage – if your vehicle is valuable, you need coverage against damage to it, which we call comprehensive and collision coverage.
• Uninsured Motorist – protects you when you are hit by someone without insurance or with inadequate limits.
• Other coverage options are available and should be discussed with your agent.

Like the homeowners liability, you should buy “the most you can afford and the least with which you are comfortable.” We will not issue an auto policy with less than $250,000/500,000/$100,000 liability limits. In addition, we recommend that all clients carry a personal umbrella liability policy.

Our general philosophy is for you to purchase high limits of insurance and retain as much risk as you can afford. We know that this strategy does not work for all. However, insurance carriers will hold claims frequency against you. You do not want to use your “good will” with the insurance industry with minor claims. With that context, we recommend that you choose the highest deductibles with which you are comfortable. This applies to both home and auto. For vehicles with lower values, consider dropping comprehensive and collision coverage altogether.

Insurance premiums are driven by your driving record, the value of your vehicles, the costs of injuries and inflationary pressure on repair costs. There are many strategies to control insurance costs. Some are quick and some take time:

• Bundle your home and auto,
• Drive safely and avoid accidents and tickets,
• Maintain a good credit score,
• Before buying a car, evaluate which vehicles cost the least to insure,
• Consider telematics that monitor harsh braking, speeding etc.,
• Get your student who drives to keep a good grade point average,
• Use common sense.

• In most states and cases, your liability coverage will automatically extend for liability.
• If you have comprehensive and collision coverage on your policy, you likely have coverage for damage to the vehicle.
• However, most auto policies do not cover the rental companies “loss of use.” If they cannot rent the car while it is being repaired, you will be charged the rental each day. Consider –
  • Using a credit card that includes loss of use.
  • Purchasing the collision damage waiver insurance from the rental company.
• Always call your agent about your coverage before you rent a car.

Uninsured motorist coverage protects you when you are hit by someone without insurance or with inadequate limits.

There are many optional coverages. Your risk appetite and philosophy will help guide whether we recommend the coverages. We need to talk about each one to advise what fits your situation. Here are some optional coverages:

• Roadside assistance
• Rental Reimbursement
• New car replacement
• OEM parts
• Gap Coverage
• Customized equipment

Insurance for your child (whom the insurance industry calls a “youthful driver”) will increase your premium. You should contact your agent months before your child gets his/her learner’s permit. This will allow you to budget for the expected increase in premium. In addition, the agent will have time to evaluate if another of the carriers with whom we work can offer you more cost-effective coverage. Some insurance companies are more competitive than others with youthful drivers.

It is highly unlikely and problematic. Be careful before you get into the ridesharing or food delivery business. Please call your agent to discuss.

We always recommend a personal umbrella policy. With the cost of medical care and the typical earning power today, the limits on the primary policy are not adequate for the potential financial damage that any of us could accidentally cause. Buy the highest limits that you can afford. Please call us to discuss.

Life insurance provides financial protection and security for your loved ones upon your death. Like all insurance, the need for life insurance depends upon your situation.

• How old are you?
• Do you have dependents?
• Do you have debt?
• Who would satisfy your obligations in the event of your death?
• How much savings do you have?

After answering those questions and more, we can determine if you need life insurance, the type that is the best and what is the ideal limit of insurance. Like our other coverages, we represent many quality, life insurance companies which allow us to find the right solution.

We are eager to help you find the best protection at the greatest value for you and your family. We are confident that you will get the advice you need from us and the coverage you deserve from your insurance company.

We have spent decades building relationships with insurance underwriters and claims adjustors. We are offering protection for you in what could be your greatest hour of need. The effectiveness of the insurance company is a key consideration. With that said, we prefer to offer valuable protection and advice – beyond just offering a quote.