Property Coverage Fluctuates With Inventory

Many businesses can pick an amount of inventory coverage at the beginning of the year and know that at any given time, their actual inventory values will be within a few dollars of that amount. This makes the choice easy; just pick an amount that will cover the most you’ll ever have on hand.

However, suppose your inventories vary widely from one month to another, depending on production, pricing, or marketing cycles. For example, a florist who specializes in having a large inventory of live flowers on hand for certain holidays might have very little inventory at other times of the year. Certain retailers might bring in a great deal of stock at the beginning of each sales cycle, and then sell it off gradually (with their merchandise on hand dropping steadily), only to restock and have their values shoot back up at the beginning of the next sales period.

Does your business inventory vary greatly over time? If so,  shouldn’t your Property insurance do the same? Otherwise, if you have a fixed amount of coverage, although your inventory values vary, there will be many times that your coverage will be out of sync with your needs. If your coverage is too low, a loss at a time of high inventory values can be devastating. On the other hand, a high fixed amount might mean that you’re paying for too much insurance during those periods when your inventory values are low.

Is there a way to provide adequate coverage at all times, yet with a cost structure that tracks the actual values you have at risk?

Yes! If your current policy doesn’t offer this valuable option, contact one of our Property insurance professionals today. If you have inventories that fluctuate, let us show you how a “value reporting form” can provide the coverage you need at all times.

Call us today and our Total Protection Team will be happy to help. 877-994-6787

What’s The True Value of Your Home?

In regards to the value of your home, the two most commonly cited sources are usually useless for insurance purposes.

Most people base the perceived value of their home from a benchmark of the original purchase price, and then adjust it over time based on current home sales or tax assessments. However, even realtors will tell you that such values are educated “guesstimates,” subject to wide variation.

For example, “appraised value” is an estimate of the property’s worth in the current marketplace derived from an analysis of the home, the community, and the recent sales prices of similar homes in the area. The local taxing authority determines “assessed value” to levy property taxes. To confuse the issue further, state and local laws and regulations often require capping or discounting taxable assessments well below the full value assessed by the authority.

However, neither of these values might be practical for insurance purposes. If your home is severely damaged or destroyed, the true value you need will be the cost to rebuild it, not what it might sell for or its tax assessment. Too many people have made the mistake of relying on assessed or appraised values to determine if they have enough Homeowners insurance only to find, much to their chagrin, that their coverage fell far short of true construction costs.

Give us a call today; we’re ready to help you develop a solid estimate of your reconstruction costs. 877-994-6787

Buying Commercial Auto Insurance

All vehicles used by a business needs to insured. Such coverage generally is more expensive than Personal Auto insurance, it makes sense to purchase a Commercial Auto policy that provides the best long-term value for your premium dollar. To make sure that you’re getting the right policy at the right price follow these guidelines:

    1. Determine which vehicles you need to insure. In addition to coverage on any vehicle your firm owns, leases, or rents, be sure to cover any personal vehicles that employees will be using on company business.


    1. Select the right type of policy. Although Personal Auto insurance will cover a vehicle used for business purpose as long as the title is in your name, if the company owns the vehicle you’ll need Commercial Auto coverage (which is more expensive).


    1. Choose the coverages you need. These should include Liability, Comprehensive, Collision, Uninsured/Underinsured Motorist and (in some states) Personal Injury Protection, which pays medical expenses for the insured driver, regardless of fault.


  1. Comparison shop. Because every Auto insurance company has its own way to calculate premiums, your cost, the amount that you will need to pay can vary widely from one carrier to another. As independent insurance agents, we’ll be happy to offer our professional advice on selecting the coverage and price that’s best suited to your needs.

Just give us a call at 877-99-INSURE today for a free quote!

Crackdown on Texting Drivers Could Raise Auto Premiums

Enforcement has been weak for drivers who have been texting behind the wheel but they will soon find that this is no longer the case, thanks to Uncle Sam – and getting caught might kick up their Auto insurance premiums.

Although 39 states prohibit texting while driving, these laws have been tough to enforce; many people have been able to scoff at the law unless they’re involved in an accident while texting.

To help state authorities catch texting drivers in the act, the National Highway Traffic Safety Administration has issued $550,000 in grants.

The impact of texting behind the wheel on Auto premiums varies by state. If a state penalizes these infractions as moving violations, a citation will add points to the driver’s record – which means that insurance companies could raise rates For example, according to an analysis of quotes from two leading Auto insurers, motorists in New York State who receive tickets for texting while driving will pay an annual premium penalty of $59 to $74 when they renew their policies. However, in states that don’t add driving points for this type of misbehavior insurers will not be able to hike premiums.

Let’s hope that the new federal grants, together with the pocketbook pain of higher Auto premiums, will help curb texting by thoughtless drivers – and make the nation’s streets and highways safer!