All-Risk vs. Named Peril: Which is Right for You?

Written By Charlotte Insurance on September 18, 2018. It has 0 comments.

what's the difference between named peril and all-risk insurance?

Are you convinced that all home insurance policies are the same? Think again. While the standard coverage that most homeowners buy is an all-risk policy, it’s not the only choice you have. The alternative option is named peril coverage. What’s the difference, and which is right for you?

Here’s what you need to know about all-risk and named peril insurance coverage.

What is All-Risk Coverage?

All-risk coverage is the type of standard home insurance that most people are familiar with. It’s a broader insurance policy that covers everything except what’s named as an exclusion in your policy. It’s a more expensive form of insurance because it’s more comprehensive. When you file a claim, the burden of proof is on the insurance company to figure out whether the peril is covered or not.

Common exclusions to an all-risk policy include war, earthquake, flood, boiler explosion, seepage or leakage of water over time, normal wear and tear, mechanical breakdown, and more. In some cases, like flood and earthquake, you can purchase additional coverage specifically for these perils.

What is Named Peril Coverage?

Named peril insurance is something that many homeowners are less familiar with for their general insurance policy. This form of coverage covers only what is specifically named and included in your insurance policy. Because of this it’s often less expensive, but when you file a claim, you have to prove that a named peril in your coverage caused the loss.

Most named peril insurance policies cover fire, windstorm, hail, aircraft accidents, riots, vandalism, explosion, and smoke damage. When purchasing this coverage, you may be able to include other specific named perils in your policy. The most important thing to remember is that if something happens to your home, and it’s not listed in your policy, your insurance claim won’t be paid.

Which is Right for You?

So when you’re buying home insurance, which should you choose? That depends on your circumstances. If you have a mortgage, your lender will likely require an all-risk policy until you’ve paid off the home loan. In that case, you won’t have a choice.

But if you do have a choice, which option you select depends on you.

  • How risk averse are you? If you’re willing to pay more to have broader coverage because it relieves some of your worry, then all-risk is likely best.
  • Is cost the biggest factor? Look into named peril coverage and compare it to an all-risk policy. There’s a chance you’ll see most of the common risks named — fire, windstorm, lightning, etc.

Ultimately, whichever you choose, it’s most important to understand exactly what your coverage includes and what it doesn’t. Read the fine print, ask lots of questions, and re-assess your risk on a regular basis to make sure you have the right home insurance.

Are you ready to look at new home insurance options? Do you feel like you’re paying too much but not receiving enough in return from your insurance policy? Contact Charlotte Insurance today and let us help you choose the right home insurance policy for your home and your life.

5 Risks for High Net Worth Families

Written By Charlotte Insurance on September 18, 2018. It has 0 comments.

a house belonging to a high net worth family in Charlotte

All families face certain risks from fire or theft to auto accidents and job losses. But high net worth families have additional risks that most people can’t imagine. Even moderately wealthy families who maintain thriving careers need to be aware of their additional risks.

Here are five risks to be aware of and tips on how to protect yourself.

Cyber Crime

Everyone is vulnerable to cyber crimes, from the smallest business to a single person with a modest bank balance. Thieves look for any chance they can to steal and the internet has made it almost too easy. Cyber crime and theft among high net worth individuals and families are on the rise, though. Email phishing, identity theft, ransomware, stolen credit card information, and unauthorized bank transfers are the most common forms.

To protect yourself: Secure your data and the way you connect to the internet. Consider purchasing credit monitoring services who can alert you to suspicious activity sooner rather than later.

Loss of Collections

From antique sports cars to fine art and antiquities, you may have a collection that you’ve worked hard to build over the years. Unfortunately, it takes very little to potentially lose it all. A large storm, bad fire, natural disaster, or robbery could decimate what you have. Many of these items are priceless and can’t simply be replaced.

To protect yourself: Do not rely on your home insurance policy to cover your loss. Work with your insurance agent to include a special rider for your collections. Depending on the size and worth of your collection, you make want scheduled coverage that identifies the value of each item in case of loss or damage later.

Loss to Weather

Everyone is subject to damage from a hurricane or flood. But in your position, your risk may be greater than you realize. How many of your homes are located on the coast, in tropical locations, or in mountainous regions? These areas are beautiful, but they are also prone to catastrophic weather events like hurricanes, typhoons, blizzards, mudslides, and more. One big storm could wipe out your entire property, leaving you to rebuild from the ground up.

To protect yourself: Talk to your insurance agent about your insurance coverage options. A robust home insurance policy, flood insurance, and other additional forms of coverage can help you rebuild when the storm hits.

Home and Personal Security

Having a higher net worth often means one of two things — living in a nicer home and, potentially, having a higher public profile. Either situation can make you vulnerable to security problems. From home invasion and theft to stalking, your personal security is at risk as your net worth climbs.

To protect yourself: Invest in a high-quality home security system. You need a professional company that understands your specific needs. You may also want to consult with a security professional to tighten any security gaps you’re not aware of beyond adding cameras and an alarm.

Hiring Employees

You may have plenty of experiencing hiring employees for your company. It’s something you take very seriously because the success of your business depends on hiring good people. The same is true when you hire employees to help you at home. Nannies, housekeepers, caretakers, assistants, and others should be hired with risk and safety in mind.

To protect yourself: Hire as you would for a corporation — interviews, background checks, and references. You also may need more liability coverage or workers compensation coverage to protect against potential accidents and losses later.

Do you recognize potential risk for yourself in this list? Are you worried about your home or your family? Contact Charlotte Insurance today, and our private client services agent will assess your risk and offer solutions that fit your unique needs.

The Best Time to Buy Flood Insurance was Yesterday

Written By Charlotte Insurance on September 18, 2018. It has 0 comments.

homes in need of Charlotte flood insurance

The sooner you can buy a flood insurance policy, the better off you’ll be. If heavy rains or rising rivers and lakes don’t make you nervous, Hurricane Florence might have been a wake-up call. It’s easy to think of flooding as a waterfront property or coastal problem (and it is), but anywhere it can rain, a flood is possible.

If this hurricane season, which runs to November, gave you pause now is the perfect time to buy a flood insurance policy. Here’s what you need to know.

National Flood Insurance Program

The vast majority of flood insurance policies are written by the National Flood Insurance Program (NFIP) — a government-backed insurance program that’s administered by the Federal Emergency Management Agency (FEMA). They have written more than five million insurance policies for property owners. To select and purchase flood insurance, you can still work with your preferred insurance agent.

NFIP policies only cover your property up to certain levels:

  • Up to $250,000 in damage to your home’s structure
  • Up to $100,000 in damage to the contents of your home
  • Living expenses, like temporary housing, aren’t covered.

While they’re still rare, there are private insurance carriers who offer flood insurance. You can purchase a single policy through these providers or supplement your NFIP policy with additional coverage.

Why You Need Flood Insurance Right Now

Unlike some other forms of insurance, waiting to buy flood insurance only puts you and your home at greater risk of a catastrophe. Why? Because there’s a 30 day waiting period before your flood insurance policy will be in effect. While you’re in that waiting period, your policy won’t cover flood damage.

Waiting until there’s a storm headed our way isn’t a good option either. Most insurance carriers won’t write policies while a storm is “in the box.” This means that it’s within about 48 hours of landfall and it’s expected to be anywhere near Charlotte or the surrounding area.

You might think that since you don’t live close to water that you’re safe and don’t need flood insurance. In fact, nearly 20 percent of all claims come from areas that are designated lower risk for flooding. All it takes is one flash flood or a 500-year storm, and your usually bone-dry neighborhood might fill with water and ruin your home.

Don’t Rely on Your Home Insurance

Home insurance policies don’t cover flooding. A standard policy may cover water damage from a burst pipe or a hole in the ceiling. But it’s not going to pay for the damage when water come into your home from a storm, cresting river, or any other flooding. Only flood insurance can help you repair and rebuild your home.

If Florence made you nervous or you’re no longer willing to play roulette with storms and rising waters, contact Charlotte Insurance today. We’re able to sell flood insurance policies through NFIP and will let you know what your policy options are. Protect your home with a flood insurance policy today.