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Category: Risk Management

Risks to Ponder When Considering Insurance for Alarm Installers

Posted on by Jon Blankenship

Alarm installers, whether operating in residential or commercial markets, play a vital role in ensuring safety and security. However, the work they perform and the services they provide expose them to a wide range of risks. Without proper insurance for alarm installers, these risks can have significant financial and legal implications, potentially jeopardizing the long-term success of their business.

To safeguard their operations, alarm installers must understand the specific hazards associated with their profession and the coverage options available to mitigate them. Below, we explore critical risks to consider and why tailored coverage is a must for alarm installation professionals.

Common Risks Faced by Alarm Installers

Alarm installation professionals are exposed to numerous risks during day-to-day operations. These include both external exposures and potential liabilities arising from their own business activities. Here are the key challenges they face:

Liability Claims

Mistakes in installation or failure of installed systems can expose alarm installers to claims of negligence. For example, if an alarm system fails during a break-in due to improper installation, the client may hold the installer accountable. General liability insurance can help cover legal fees, settlements, and damages arising from such claims.

Property Damage

Whether on a customer’s premises or off-site, damage to property is a plausible risk. Accidentally damaging walls, electrical systems, or valuables while installing equipment can leave installers liable for the cost of repairs. Investing in property coverage protects against these incidents.

Employee Theft

While rare, cases of employees stealing from client premises can harm the installer’s reputation and finances. Third-party crime coverage specifically addresses this risk, protecting businesses from losses resulting from employee theft of client property.

Bodily Injury

Accidents can occur during installations, leading to injuries among employees or clients. An installer may drop heavy equipment causing harm, or a client may trip over tools on-site. Workers’ compensation insurance can cover employees, while general liability insurance addresses third-party bodily injury claims.

Cyber Liability

With alarm systems increasingly connected to online platforms, exposure to cyber threats is higher than ever. Hackers may target alarm systems to gain unauthorized access or disrupt operations. Cyber liability coverage can mitigate risks related to data breaches or cyberattacks, covering costs like regulatory fines, legal fees, and data recovery.

Commercial Auto

Alarm installation businesses often rely on vehicles to transport tools and equipment, making them vulnerable to auto-related incidents. Commercial auto insurance covers accidents, theft, and damage involving company vehicles, ensuring that transport-based operations remain uninterrupted.

Inland Marine

Protecting tools and equipment during transportation is critical for alarm installers. Inland marine insurance acts as a “floater” policy, covering items in transit or stored at off-site locations. This ensures that critical equipment is protected, whether being moved between job sites or stored temporarily.

Tailoring Alarm Installer Insurance for Residential and Commercial Installers

The risks and associated coverage needs may differ slightly between residential and commercial alarm installers.

  • Residential Installers face unique risks related to customer interaction within private homes, such as accidental property damage or liability claims arising from defective home installations.
  • Commercial Installers, on the other hand, may encounter larger-scale risks working in commercial properties, including advanced cybersecurity challenges or employee theft involving high-value assets.

It’s vital for alarm installers to consult with specialized insurance providers to tailor a plan that comprehensively addresses their specific needs.

Recommended Insurance Coverage for Alarm Installers

To manage these risks effectively, alarm installation businesses should consider the following insurance options:

  • General Liability Insurance to address claims of negligence, bodily injury, or property damage.
  • Property Insurance to protect business-owned tools, equipment, and inventory.
  • Third-Party Crime Coverage to safeguard against client property theft by employees.
  • Cyber Liability Insurance for protection against data breaches and other cyber threats.
  • Workers’ Compensation Insurance to cover employees in the event of workplace injuries.
  • Commercial Auto Insurance to ensure the safety and reliability of business vehicles.
  • Inland Marine Insurance to cover tools and equipment during transit or storage off-site.

By investing in the right mix of coverage, alarm contractors can mitigate financial uncertainties and focus on delivering exceptional services to their clients.

Take Steps to Ensure Your Alarm Installer Insurance Coverage

Insurance is not just a safety net; it’s a fundamental part of running a resilient and professional alarm installation business. Understanding the array of risks inherent in the industry enables alarm contractors to proactively secure the right protection and safeguard their reputation and bottom line.

Why Fire Control Devices Are Essential for Property Protection

Posted on by Ownby Insurance Service

Fire hazards are an unfortunate reality for both homeowners and business owners with property. While many believe that fire emergencies are rare or unlikely, the truth is that fires can occur unexpectedly, leaving devastation in their wake. In fact, around half a million structure fires occur in the U.S. each year. The best way to lower risks, minimize damage, and protect lives is to prioritize fire control devices. These systems may provide advanced monitoring, control, and alert capabilities to mitigate risk and potentially prevent catastrophic losses.

Fires pose a threat not only to property but also to lives, making fire prevention and control a responsibility that cannot be overlooked. For homes, fires often start from kitchen mishaps, heating equipment, or electrical malfunctions, while businesses face additional risks from machinery, stored materials, or flammable chemicals.

The Role of Fire Control Devices

Fire control devices fall into three main categories – monitoring, control, and alert – and they work together as a comprehensive defense against fire emergencies. Below, we explore how each category operates to reduce the risk of fires in homes and commercial spaces.

1. Monitoring Fires with Detection Devices

Fire monitoring devices are designed to notice fire risks early so that action can be taken immediately.

  • Smoke Alarms are the most common monitoring system in homes and serve as a critical first line of defense. They detect smoke particles in the air and sound an alarm before a fire grows.
  • Fire Detection Systems in commercial settings are more sophisticated, incorporating sensors that detect temperature changes, smoke, and even gas leaks. Advanced systems send warnings directly to property managers or emergency services, allowing rapid response.

Early detection saves lives and reduces the damage caused by fire, giving firefighters and property owners a significant time advantage to address the issue.

2. Controlling Fires with Professional Systems

Once a fire starts, fire control systems work to suppress and manage it, aiming to prevent its spread and limit damage.

  • Fire Sprinkler Systems automatically activate and release water to control flames as soon as a fire is detected. These are effective in both homes and businesses and are proven to reduce fire fatalities and property loss.
  • Fire Suppression Systems are typically found in commercial spaces or facilities with expensive equipment at high risk of fire damage. They use agents like foam, gas, or chemicals instead of water to put out fires where water might cause additional harm (such as in data centers or kitchens).

Having systems like these installed ensures that fires can be quickly contained, preventing more extensive damage and keeping individuals safe. Some businesses – like restaurants – may have requirements around the installation, maintenance, and inspection of these systems.

3. Alert Systems for Enhanced Communication

An often overlooked but equally important aspect of fire safety is having reliable alert systems in place to notify the right people at the right time.

  • Wired Alarm Systems connect fire alarms throughout a building, making them effective in large properties where immediate evacuation is crucial.
  • Monitored Fire Alarm Systems provide the added benefit of direct communication with emergency responders. When triggered, these systems alert a monitoring service that can dispatch the fire department, even if no one is on-site to call for help.

Alert systems don’t just save lives – they also ensure faster emergency response, minimizing the risk of total loss.

Taking the Next Steps

Fires don’t make exceptions; they can affect residential and commercial properties alike. The proactive use of fire monitoring, controlling, and alerting devices not only provides a safeguard for what matters most but also ensures compliance with modern safety standards.

Take the time to assess your property and determine how fire control devices can be implemented or upgraded. Investing in these systems today can save lives, reduce property destruction, provide long-term peace of mind, and might even help reduce your costs for insurance coverage.

Personal Insurance Risks You May Be Overlooking

Posted on by Ownby Insurance Service

When it comes to protecting ourselves and our families, most of us believe we have everything covered. A homeowner’s or renter’s policy, car insurance, perhaps even life insurance – these plans are essential, but are they enough? Too often, people overlook personal risks that fall “above” or outside traditional policies, leaving them exposed in ways they aren’t even aware they could be.

In this article, we’ll walk through three key personal insurance risks, provide examples to illustrate their potential impact, and highlight coverage options that can offer peace of mind.

Personal Liability Risks

The Risk

Accidents happen, and when they do, personal liability can result in serious financial repercussions. For instance, if someone is injured on your property or if your child accidentally damages someone else’s property, you could be held personally responsible for medical expenses, legal fees, and compensation.

Real-Life Example

Imagine hosting a cookout where a guest trips on your patio or deck, resulting in a severe injury requiring surgery. Without adequate liability coverage, you might have to shoulder tens of thousands of dollars in medical bills and potential legal claims.

Coverage Options

Most homeowners or renters insurance policies offer liability coverage, but the limits might not be sufficient, especially in severe cases. Consider adding an umbrella insurance policy. This provides an extra layer of protection, typically in increments of $1 million, beyond your standard policy limits. Umbrella insurance not only helps with legal fees but covers claims that may not be included in your original policy.

Personal Cyber Risks

The Risk

The digital world offers convenience but also new and evolving risks. From identity theft to online scams, cyber risks can lead to significant financial and emotional distress. Cybersecurity concerns are not just a corporate issue; individuals and families are prime targets for hackers and cybercriminals.

Real-Life Example

Picture this scenario – your email is hacked, revealing sensitive details about your bank accounts. Armed with this information, cybercriminals drain your accounts and commit identity fraud. Worse, they use your information to apply for credit in your name, leaving you with financial chaos to untangle.

Coverage Options

To address personal cyber risks, several insurers are now offering personal cyber liability endorsements or even standalone policies. These policies may include coverage for identity theft restoration, reimbursement for financial losses from cyber fraud, and assistance in dealing with ransomware attacks. It’s worth consulting your provider to understand what is offered and ensure your digital life is safeguarded.

Losses That Exceed Policy Limits

The Risk

Standard policies, such as homeowners or auto insurance, come with specific limits. What many fail to realize is that an incident could quickly exceed these limits, leaving you personally responsible for the difference.

Real-Life Example

You’re involved in a multi-car accident where you’re found at fault, leading to significant damage and multiple injuries. If your auto insurance liability limit is $100,000 and the total claims amount to $250,000, you’re personally liable for the $150,000 gap.

Coverage Options

Again, this is where umbrella insurance comes into play. While it’s often associated with personal liability, it may also step in when existing policy limits for other types of coverage aren’t enough. Umbrella insurance is an affordable way to protect your assets and ensure you’re safeguarded against catastrophic financial loss.

Taking the Next Step

While these risks may seem unlikely, the reality is they’re becoming more common in today’s world. Personal liability lawsuits, cyber threats, and insufficient policy limits can affect anyone. Proactively addressing these risks can help safeguard your financial well-being and give you peace of mind for the future.

Not sure where to begin? Contact Brandon Patterson on our team at 865.453.1414 brandon@ownbyinsurance.com for information on your options.

Mitigate Risks and Save on Insurance Premiums

Posted on by Ownby Insurance Service

Risk is an inevitable part of running a business, but the way you manage it can greatly impact your financial stability and long-term success. For small businesses, risk mitigation can also lead to something even more desirable – save on insurance premiums.

Let’s explore four key strategies that every small business can implement to mitigate risks and potentially lower insurance costs.

1. A Comprehensive Safety Plan
A well-crafted safety plan is the foundation of any risk management strategy. Workplace safety should be prioritized, not just for the well-being of your employees but also to minimize potential liabilities.

Steps to develop a safety plan:

  • Identify Hazards: Walk through your workplace to identify hazards that could harm employees, customers, or visitors. Focus on common risks like slips, trips, falls, ergonomic injuries, or equipment failures.
  • Implement Training Programs: Train employees regularly on workplace safety procedures. Ensure they know how to use equipment, handle hazardous materials, and respond to emergencies effectively.
  • Regular Audits and Updates: Revisit your safety protocols to account for changes in your business operations. Conduct regular safety audits to protect all involved.

2. Strengthen Cybersecurity Practices
Cybersecurity is critical, especially for small businesses where digital vulnerabilities can quickly escalate into expensive breaches. A single cyberattack can cost thousands in recovery efforts and permanently damage customer trust.

Effective cybersecurity practices include:

  • Update Software Regularly: Update all hardware, software, and firmware regularly to fix security flaws as soon as they’re discovered.
  • Implement Multi-Factor Authentication (MFA): Add an extra layer of security to your business accounts, making it harder for hackers to gain unauthorized access.
  • Educate Employees: Conduct regular training for employees on common cyber risks such as phishing and scams. Consider third-party “tests” of your team’s awareness.

3. Invest in Loss Prevention Programs
Proactively seeking to prevent losses before they happen can make your business more resilient. Loss prevention not only preserves your operational integrity but also makes you a lower-risk client in the eyes of insurers.

Examples of loss prevention measures include:

  • Install Security Systems: Use alarms, surveillance cameras, and access control systems to protect your physical assets.
    •Maintain Equipment Regularly: Stay on top of maintenance schedules to minimize accidents caused by faulty machinery or infrastructure.
    • Emergency Response Planning: Develop a clear plan for handling emergencies such as fires, floods, or natural disasters. Equip your workplace with emergency kits and conduct regular evacuation drills.

4. Assign Risk Management Responsibilities
Effective risk management often comes down to human oversight. Assigning dedicated personnel to identify and tackle risks ensures this critical area of operations doesn’t fall by the wayside.

Key tips for managing risk responsibilities:

  • Appoint a Risk Officer or Manager: Designate an employee or team responsible for observing and managing risks across your organization.
  • Document and Track Incidents: If a minor incident occurs, document the details. Tracking these enables proactive fixes before a pattern of larger risks emerge.
  • Use Risk Management Software: For smaller businesses without a full team, affordable tech solutions provide deeper insights into operational risks.

The Connection Between Risk Mitigation and Insurance Savings

Insurance companies assess the likelihood of a claim being made when assigning premium rates. By implementing robust safety measures, managing losses, and using technology to prevent risks, you’re actively reducing the probability of incidents. This lower risk profile directly translates into potential insurance savings.

Looking for more insights on how to protect your business? Talk with Brandon Patterson on our team about how these practices can go hand-in-hand with your insurance coverages and the resources that may be available to policyholders.

How Claims Impact Your Insurance Premiums

Posted on by Ownby Insurance Service

Your insurance premium is based on many factors, from the type of coverage you choose to your overall risk profile. But one aspect that often surprises policyholders is the impact of claims on their premiums. Whether you’ve recently filed a claim or you’re thinking about it, it’s important to understand how claims can influence the cost of your coverage.

Loss History: A Snapshot of Your Risk

Your loss history, or claims history, is a critical factor insurers use to determine your premium. This is essentially a record of all the claims you’ve filed in the past. Insurers view this as a representation of your risk level – policyholders who have filed multiple claims are generally seen as more likely to file additional claims in the future.

Each insurer has its own thresholds for how claims history impacts your premiums, but generally, past claims can lead to higher premiums.

Why Does Your Loss History Matter Impact Your Insurance Premiums?

Your loss history paints a picture for your insurer. For example:

  • If you’ve experienced multiple incidents, it could indicate a higher likelihood of future claims.
  • A long history of claims, even if they’re for relatively small amounts, can label you as a higher-risk policyholder.

While you can’t change your past claims, being aware of how your loss history is assessed can influence your approach to future claims.

Claim Frequency and Size Matter

Number of Claims

In insurance, the old saying “the fewer, the better” rings true. Filing multiple claims within a short time – even for small amounts – can signal a higher risk level to your insurer. Insurers often see frequent claims as an indicator of risk-prone behavior, even if the claims themselves are low-cost.

To manage your premium effectively:

  • Avoid filing claims for minor damages that fall close to or just above your deductible.
  • Consider whether the cost of repairing or replacing an item out-of-pocket is more affordable in the long run.

Claim Size

The size of the claim matters just as much as the number. Large claims require significant payouts from the insurer. When an insurer has to pay a big settlement for a loss, the chances are your premium will move upward to reflect the cost.

For instance, a single high-value claim – such as a major accident or property damage – might have a bigger impact on premiums than several smaller claims.

The Impact of Your Deductible Choice

Your insurance deductible – the amount you agree to pay out-of-pocket before your insurance kicks in – also plays a major role in claims and premiums. Filing claims for damages that barely exceed your deductible can lead to higher premiums in the future, meaning you’re left paying more overall.

The Value of a Claims-Free Credit

Insurance providers often reward policyholders who don’t file any claims over a certain period. This is commonly known as a claims-free discount or credit. Maintaining a claims-free record demonstrates a lower risk level, which insurers may reward with a reduced premium or special discounts.

Filing a claim could result in the loss of this credit, which can significantly increase your premiums in the long term. Depending on your provider, the impact of losing a claims-free credit can sometimes outweigh the benefit of filing a minor claim.

“Then Why Do I Even Have Insurance?”

All this doesn’t mean you should avoid filing claims entirely. Insurance exists to protect you in situations where the losses are too great to bear out-of-pocket. However, carefully evaluating the situation and considering the long-term implications can help you balance coverage with premium stability.

Smart Tips to Manage Insurance Claims and Premiums:

  1. Review Your Policy Carefully
    Understand your deductible amount, what types of incidents are covered, and how claims may impact things like claims-free discounts.
  2. Weigh Filing a Claim Against Out-of-Pocket Costs
    If the repair or replacement cost is close to your deductible, it may save you money long-term to pay out-of-pocket rather than file a claim.
  3. Keep Your Loss History in Mind
    Evaluate how additional claims could impact your overall risk profile and premiums.
  4. Focus on Preventative Measures
    Take steps to avoid future incidents, such as securing your home, maintaining your property, or installing safety features. Proactively reducing risks can help keep your premiums manageable over time.
  5. Bundle Your Insurance Policies
    Many insurers offer discounts for bundling, which can offset increased premiums due to claims.
  6. Ask About Claims Forgiveness
    Some insurers offer “claims forgiveness” features, where your first claim won’t impact your premium. Consider whether this add-on is available and worth adding to your policy.

When to File

Ultimately, balancing the cost of a claim versus the long-term implications for your premium is key. By thinking strategically and being proactive, you can ensure your insurance remains both effective and affordable. If you’re unsure, discuss the deductibles and potential impacts of filing the claim with our team and we’ll help you understand your options – but we won’t make the choice for you. That’s your decision!

Personal Umbrella Policies: Why You Absolutely Need One

Posted on by Ownby Insurance Service

We live in a world where personal risk exposures are higher than they’ve ever been. Whether you’re a homeowner or a renter, understanding the importance of a personal umbrella policy (PUP) can protect you from the unexpected.

The Growing Landscape of Personal Risks

Increased Lawsuits

The frequency of lawsuits has been steadily climbing, catching many off guard. Everyday situations like car accidents, slip-and-fall incidents, or even pet-related injuries can escalate into costly legal battles. Homeowners specifically face heightened risks as they balance the responsibilities of property ownership and increased exposures.

Higher Verdicts in Liability Cases

Courts are awarding higher verdicts, placing individuals’ finances at greater risk. In many cases, standard home or auto insurance policies may not provide sufficient coverage to protect personal assets. Imagine a scenario where an incident occurs on your property, leading to a lawsuit that results in a settlement exceeding your existing coverage limits. Without additional protection, your personal savings, investments, and future earnings could be at stake.

Increased Personal Risk Exposures

Today, personal risk exposures are everywhere, from social media interactions to hosting events at home. Homeowners, for instance, might host a neighborhood barbecue where an accident could lead to legal action. Parents, on the other hand, face unique risks associated with children’s activities, like sports or playdates, which can unexpectedly result in injuries or damages.

Benefits of a Personal Umbrella Insurance Policy

Given these risks, a personal umbrella insurance policy offers peace of mind through several key benefits:

Expanded Coverage Limits

A personal umbrella policy provides an additional layer of liability coverage beyond the limits of your existing home, auto, or other personal insurance policies. This means that if you face a situation where damages exceed your standard coverage, your umbrella policy steps in to cover the difference. This can prevent significant out-of-pocket expenses and protect your assets.

Cost-Effective Protection

One of the most appealing aspects of a personal umbrella policy is its cost-effectiveness. For a relatively small increase – often as low as a few hundred dollars – in your overall insurance premium, you gain substantial additional coverage, offering a high level of protection for life’s unpredictable outcomes.

With personal risks more prevalent than ever, having a PUP is not just a luxury – it’s a necessity. By providing extended coverage limits and protection against significant liability claims, an umbrella policy is an essential addition to any comprehensive insurance strategy.

Contact Brandon Patterson on our team at brandon@ownbyinsurance.com about your PUP options.

Do You Know These 4 Often Overlooked Coverages for Property Managers?

Posted on by Ownby Insurance Service

When it comes to insurance, property managers and residential building owners often focus on general liability and property coverage. While these are crucial, there are additional risk exposures that need to be addressed. Here are four important types of coverage you might be overlooking:

  1. Errors & Omissions (E&O) Coverage

    What is it?

    Errors & Omissions insurance may help protect you against claims of negligence or inadequate work. If a tenant sues you for failing to perform your duties or for providing incorrect advice, E&O coverage might help with costly legal fees and settlements.Why you need it:
    Property management is a complex field where mistakes can happen despite best efforts. Whether it’s a clerical error that leads to financial loss or a misstep in tenant placement, E&O insurance provides vital protection.

  2. Tenant Discrimination Coverage

    What is it?

    This coverage offers protection if a tenant (or prospective tenant) alleges discrimination based on race, religion, gender, etc., during the rental process or tenancy.

    Why you need it:

    Even with the best intentions, discrimination claims can arise and lead to expensive lawsuits. Tenant discrimination coverage can help manage the financial burden of legal defense costs and settlements.

  3. Workers’ Compensation Coverage

    What is it?

    Workers’ compensation insurance can help cover medical expenses and lost wages for employees who get injured while working on your property.

    Why you need it:

    If you employ staff such as maintenance workers, cleaners, or security personnel, workers’ compensation is often legally required. But even office staff may have risk exposures such as moving large packages or injuries during on-site work. It can also protect you in lawsuits brought by employees for workplace injuries.

  4. Cyber Liability Coverage

    What is it?

    Cyber liability insurance protects against data breaches and cyber attacks, covering costs like legal fees, notification expenses, and compensation to affected parties.

    Why you need it:

    Property managers handle sensitive data, from tenant applications to payment information. A breach can not only damage your reputation but also lead to significant financial consequences. Cyber liability coverage helps mitigate these risks.Have you considered these overlooked coverages? We’re here to help you better protect your business and assets. For more detailed advice tailored to your needs, contact Brandon Patterson on our team at brandon@ownbyinsurance.com

On the Horizon: Cabin and Vacation Rental Insurance Trends as 2025 Draws Near

Posted on by Ownby Insurance Service

If you are a vacation rental owner, cabin rental owner, or rental property owner, understanding the current trends in the insurance market is essential to managing and protecting your investment. The landscape in 2023 is shaped by a series of challenges and shifts that are important to consider when evaluating your insurance options. Here’s a detailed look at the trends and challenges facing the cabin and vacation rental insurance market today.

The Market Trends

We’ve all heard talk of inflations impact on our economy, and although it is down from a peak of 9% in mid-2022, its effects continue, including homeowner and vacation rental insurance markets. Elevated prices for building materials and construction labor have persisted along with the timeframes for that works completion. This adds up to make rebuilding or repairing properties a costly endeavor. For rental property owners, this means higher expected costs and the need for adequate insurance coverage to mitigate potential financial impacts.

Increased Costs Due to Natural Disasters

Natural disasters and severe weather have become a prominent concern in the cabin and vacation rental insurance market. In 2023 alone, there were 28 severe weather events with estimated costs ranging from $1 billion to $10.5 billion. Unfortunately, vacation and cabin rental properties are frequently in areas with higher risk for natural disasters because of the correlating natural beauty of those areas. Forests, mountains, and coasts are amazing, but can also be inherently risky. Rental property owners, particularly those in high-risk areas, should assess their policies to ensure sufficient protection against these increasingly common events.

Challenges in the Insurance Marketplace

Insurance companies’ willingness to provide property insurance remains low, especially in regions with a history of significant losses. This cautious stance has led many insurers to exit markets deemed too risky, leaving property owners with fewer options. Consequently, those remaining in the market may face increased premiums or restricted coverage terms.

Growth of the Excess & Surplus Insurance Market

With traditional insurers pulling back, the excess & surplus (E&S) insurance market has expanded to fill the gap. While E&S insurers can offer more specialized coverage options, they often come with higher rates and/or reduced coverage compared to standard insurance policies. Additionally, different regulations governing E&S insurance can complicate decision-making for property owners unfamiliar with these policies and their restrictions or language.

What Rental Property Owners Can Do

Given these trends and challenges, vacation and cabin rental owners should take proactive steps to safeguard their assets:

  • Regularly Review Insurance Policies: Ensure that your coverage is up-to-date and accounts for current rebuilding costs and potential natural disaster risks.
  • Explore Additional Coverage Options: Consider E&S policies if traditional insurance is unavailable, but be mindful of the potential trade-offs in terms of cost and coverage.
  • Stay Informed About Market Changes: Keep abreast of news and developments in the insurance sector to anticipate and adapt to changes that may affect your coverage needs.

Talk with those that understand this market and can help guide you. Brandon Patterson and our experienced team can help you navigate the cabin and vacation rental insurance market. With knowledge, property owners can better position themselves to protect their investments and maintain financial resilience in the face of unforeseen events.

Reach out to Brandon today at brandon@ownbyinsurance.com for help with your coverage needs!

Steps Property Owners Can Take to Mitigate Natural Disaster Risks

Posted on by Ownby Insurance Service

Natural disasters can strike without warning, causing immense damage and disruption. For homeowners, commercial building owners, property managers, and real estate investors, understanding how to reduce risks and prepare for potential impacts is not only important for your investment – it’s important for safety. And while they can’t be completely prevented, the impacts from disasters may be lessened with the right measures.

Fire Prevention and Protection

Regular maintenance plays a crucial role in fire prevention. Ensure that electrical systems, heating equipment, and other potential fire hazards (e.g., fireplaces and chimneys) are routinely inspected by qualified professionals. Clear your property of debris, dead vegetation, and any flammable materials.

Your smoke alarms are your first line of defense in detecting a fire. Test them frequently to ensure they work properly and replace batteries at least once a year. Consider installing interconnected smoke alarms for enhanced safety.

Fire extinguishers should be accessible, fully charged, and inspected annually. Make sure everyone on the property knows how to use them effectively. Choose extinguishers that are suitable for different types of fires (e.g., electrical, grease) and placed in the spaces where these issues would be more likely to occur.

For commercial buildings, understand where sprinklers are required – but also where they could do the most good. A sprinkler protection system could mean the difference between fire damage and a total loss in a fire. Have them regularly inspected and tested by professionals. You might even save on your insurance premium if these measures are in place.

Understand Your Risks

Identify the specific natural disasters that could impact your property. Are you in a flood plain? The Federal Emergency Management Agency (FEMA) has flood maps available that identify zones of flood risk. Are you in a higher risk area for wildfires? FEMA has risk zone maps for that as well. What about earthquakes? Check out the info from the U.S. Geological Survey for that risk information.

Know Your Coverage

Ensure your insurance policies cover the natural disasters that pose the greatest risk to your property. Typically, property insurance policies do not include coverage for floods, earthquakes, or sinkholes, so additional policies might be necessary. Work with our agents to tailor your coverage to the specific risks associated with your property. Regularly review your policies to ensure they align with any changes in risk or property value.

Taking proactive steps to mitigate disaster risks can save property owners significant time, money, and stress. Implementing fire prevention measures, understanding specific risks, and ensuring adequate insurance coverage are key strategies for safeguarding your investments. By staying informed and prepared, you can strengthen your property’s resilience against natural disasters.

Contact Brandon Patterson on our team at brandon@ownbyinsurance.com for more information on risk reduction for your property.

Why Aren’t all Insurance Policies the Same?

Posted on by Ownby Insurance Service

It’s a reasonable question to ask. If I am looking at a home insurance policy with insurance company A versus one with company B – shouldn’t they offer the same coverage? Isn’t cost the determining factor in the difference? The answer, however, is much more complicated.

Insurance companies in Tennessee file policies and rates with the Department of Insurance. These policies contain the specifics of what they’re going to offer, and the rate schedule for what they intend to charge. They are based on specific calculations for each company, and are often very different. While many use “forms” from the Insurance Service Office (ISO) that are the same, changes and even proprietary forms are use across the industry. So, what do you need to know about how and why they’re different? Let’s review it.

The Key Policy Differences You Should Know

1. Limits on Amounts of Coverage

One of the fundamental differences between insurance policies is the limit on the amounts of coverage they provide. Coverage limits dictate the maximum amount an insurer will pay for a covered loss. For example, a homeowners’ policy may have different limits for dwelling, personal property, and liability coverages. It’s essential to review these limits and ensure they align with your needs and financial situation. Insufficient coverage can leave you vulnerable, while excessive coverage might result in higher premiums than necessary.

2. Policy Exclusions

Policy exclusions are specific conditions or circumstances under which the insurance company will not provide coverage. These exclusions vary widely between policies and can significantly impact the protection you receive. Common exclusions include natural disasters, acts of war, and certain high-risk activities. Understanding these exclusions is critical, as they can affect your claims process and financial recovery in the event of a loss.

3. Named Perils vs. “Open” Perils Coverage

Insurance policies generally fall into two categories regarding covered perils:

  • Named Perils: This type of policy only covers losses caused by perils explicitly listed in the policy, such as fire, theft, or vandalism. If a peril is not named, it is not covered.
  • Open Perils (or All-Risk): These policies provide broader coverage, protecting against all perils unless specifically excluded in the policy. While typically more expensive, all-risk policies offer broader protection.

Choosing between named perils and all-risk coverage depends on your specific needs, risk exposure, and budget considerations.

4. Options for Endorsements

Endorsements, also known as riders or add-ons, allow policyholders to customize their insurance policies by adding specific coverages or modifying existing ones. These options enable you to tailor your policy to better fit your unique circumstances. Common endorsements include:

  • Extended Replacement Cost: Provides additional coverage for rebuilding costs that exceed the policy’s stated limits.
  • Personal Property Replacement Cost: Ensures that lost or damaged personal property is replaced at current market value rather than depreciated value.
  • Water Backup Coverage: Covers damage caused by water backing up through sewers or drains.

Reviewing available endorsements and selecting those that address your particular needs can enhance your overall protection and peace of mind.

Why Do These Policies Change Over Time?

Insurance companies continually adapt their policies to address evolving risks and limit their exposure. These changes are often based on extensive data analysis, loss history, and actuarial studies. For instance, following a surge in natural disasters, insurers may revise coverage terms, exclusions, or premium rates to reflect the increased risk. Staying informed about these adaptations is essential, as they can impact your coverage and the affordability of your policy.

Navigating the world of insurance can be complex, but understanding the key differences between policies is crucial for making informed decisions. By considering coverage limits, policy exclusions, types of coverage, and available endorsements, you can select a policy that provides the protection you need. An agent can help you understand the coverages and options available to you. Contact Brandon Patterson on our team at brandon@ownbyinsurance.com to get the support you need today!