As September ushers in cooler weather and the beginning of fall, it also brings an important observance: Life Insurance Awareness Month. This annual campaign is dedicated to highlighting the significance of life insurance and ensuring that families are adequately protected for the future. Whether you’re revisiting your current policy or considering purchasing coverage for the first time, now is the perfect time to reflect on how life insurance can play a crucial role in securing your financial future.

Why Life Insurance Matters

Life insurance is more than just a financial product; it’s a vital tool for providing peace of mind and ensuring that your loved ones are taken care of in the event of the unexpected. Here’s why having a life insurance policy is so important:

1. Financial Security for Your Family: Life insurance can replace lost income, cover outstanding debts, and provide for daily living expenses, helping to maintain your family’s standard of living if you were no longer there to provide for them.

2. Peace of Mind: Knowing that your family is protected against financial hardship can offer tremendous peace of mind. It allows you to focus on living your life and achieving your goals without constantly worrying about what might happen in the future.

3. Flexible Benefits: Modern life insurance policies come with a variety of options and riders that can be tailored to fit your unique needs, whether it’s for education funding, estate planning, or charity contributions.

4. Affordable Protection: Many people overestimate the cost of life insurance, but there are affordable options available to fit almost any budget. The peace of mind that comes with having coverage is often well worth the investment.

Key Considerations When Choosing Life Insurance

If you’re considering life insurance or looking to update your current policy, here are a few key points to keep in mind:

1. Assess Your Needs: Consider your financial responsibilities, including mortgages, debts, and future expenses such as education costs. Your life insurance should be sufficient to cover these needs and provide for your family’s well-being.

2. Understand Policy Types: Familiarize yourself with the different types of life insurance available, such as term life, whole life, and universal life. Each type has its own benefits and limitations, so understanding these can help you choose the right policy.

3. Review Your Policy Regularly: Life changes, such as marriage, having children, or changes in income, may impact your insurance needs. Regularly reviewing and updating your policy ensures that it continues to meet your evolving needs.

4. Seek Professional Guidance: Consulting with an insurance professional can help you navigate the complexities of life insurance and select a policy that aligns with your goals and financial situation.

Taking Action This September

Life Insurance Awareness Month serves as a reminder to take control of your financial future and ensure your loved ones are protected. If you don’t currently have life insurance or if your existing policy needs an update, now is the ideal time to review your options. Our team at Murphy Insurance Agency is here to help guide you through the process and answer any questions you may have.

Don’t wait until it’s too late. Take action this September to ensure that your family’s future is secure and that you have the coverage you need. Contact us today to learn more about your life insurance options and how we can assist you in finding the right policy for your needs.

Your family’s security and peace of mind are worth every effort. Let’s work together to make sure you’re protected.

If you're a college student living in a dorm or apartment, or have a child who's away at school, you may need to update your insurance policy or make coverage changes. Here are some issues to consider and discuss with our Associates if you have questions. 

Update garaging location. 
Insurance companies require that they must be notified when the address where the car is being kept is different from the policy address. Also, if attending school in a different state, check that your policy meets the minimum requirements of that state.   

Student discounts. 
If you have a grade average of "B" or 3.0 or better, you may qualify for good student grade discount. Another discount may be available if you live at school more than 100 miles away from home and don't have regular access to a vehicle.

Other vehicle issues.
Even if you don't have a car, you might borrow a friends car or drive your parents' car occasionally. If you're still considered a legal resident of your parents' home, you should be listed on their policy, which should cover these situations. If you're no longer a household member and you don't already have your own car insurance, you should get a Nonowned Auto policy.

Student's possessions and liability. 
A parent's homeowner, condo or renter insurance policy generally covers a student's possessions in a dorm (up to 10% of the personal property limit on the policy). These policies also cover the student for a variety of potential personal liability situations.

Home policies may provide coverage in an off-campus apartment; however, factors such as length of residence, age and full-time status can affect coverage. If a parent's home insurance doesn't provide coverage, the student should get a renter's policy.

If the above topics have raised insurance coverage concerns for your own coverage or the coverage of a college student in your family, please reach out to us.  Our associates are glad to assist you. 

In the world of insurance, it’s essential to understand key terms in order to navigate and make informed decisions about policies. One of these terms is insurance premium, which is the amount a policyholder must pay in exchange for coverage. Depending on the type of policy, an insurance premium must be paid monthly, twice a year, or annually. Each policy type will have a different premium amount based on the coverage and policyholder. It’s essential to understand how premiums are calculated so you can secure the best deal without sacrificing coverage.

Insurers use various factors to determine premiums based on the policyholder’s perceived risk level; this process is called underwriting. For example, younger drivers will typically have higher premiums because they are more likely to get in an accident due to inexperience. The cost of premiums is based on the insurer’s criteria, the type of insurance and the policyholder, which means rates can vary significantly from person to person.

Auto Insurance

Each insurance provider has specific standards used to determine the amount of risk a driver may have. The following are some of the most common factors that influence auto insurance premiums:

• Age—Younger drivers typically experience higher rates due to their lack of driving experience and increased statistical likelihood of getting into an accident.
• Driving record—People with driving violations will typically have a higher premium because they are perceived to be riskier to insure.
• Credit and payment history—Depending on the state you live in, individuals with higher credit scores may benefit from lower premiums because they are seen as less risky to insure. Payment history of your insurance policies can also impact premiums. A history of missed payments can result in higher premiums and reduce insurance companies willingness to write a policy.
• Location—Insurers may consider where you live and drive as a potential risk factor. For example, you may have higher premiums if you park on the street in a high-crime neighborhood.
• Vehicle type—Vehicle characteristics, such as the safety features, make, model and cost of repair, can impact premiums. Vehicles perceived as dangerous, expensive to fix or unsafe may result in higher premiums.

Homeowners Insurance

The following are some of the most common factors that influence homeowners insurance premiums:

• Location—If your home is in an area at a higher risk for severe weather or crime, it will typically have higher premiums.
• Rebuilding costs—The more expensive it is to rebuild or repair your home, the more expensive coverage typically will be.
• Claims history—Your insurance company will assess any claims you’ve made within a specific period, including at a previous residence. The types of claims and frequency may impact premiums.
• Home’s age and features—Older homes typically cost more to insure because they may have features that are harder and more expensive to replace. Additionally, older homes may be more vulnerable to potential issues.
• Credit and payment history—As with auto insurance, your insurance score and payment history can affect your premiums.

Why Premiums Change Over Time Even Without Submitting Claims

Irrespective of individual circumstances, insurance premiums can fluctuate based on external factors you cannot control, such as market trends. When claims increase in frequency or severity, a chain reaction reverberates throughout the industry. For example, when severe weather causes widespread damage, an insurer may need to pay for many claims simultaneously. If there are several large storms in a season, that can quickly impact an insurance company’s solvency. Insurers often adjust their pricing strategies to offset increased losses and maintain financial stability. This might involve raising premiums across the board or implementing targeted rate hikes for specific policyholders or coverage areas.

Inflation can also impact premiums. Due to inflation, the cost of goods and services tends to rise over time, including the cost of labor and materials to repair a car or rebuild a house. As these costs increase, insurance companies may raise premiums to combat these higher costs.

How to Lower Insurance Premiums

Although many factors can cause your premium to increase over, the following strategies may help manage costs:

• Comparing policy options from multiple carriers. At Murphy Insurance we work with more than 10 carriers and can do the work of shopping for you.
• Bundling policies. Putting your home and auto policies with the same carrier typically provides significant savings through discounts.
• Maintaining a clean driving record. While accidents happen, following the rules of the road, driving defensively, and avoiding distractions while driving can help you keep a clean record and keep premiums down.
• Paying your entire premium at once. Paying in full typically results in premium reduction and helps avoid monthly payment fees.
• Receiving documents online (i.e., paperless). Companies often will give a discount as being able to eliminate the cost of mailing documents saves them money.
• Mitigating risks (e.g., install security cameras, perform regular maintenance, take proper precautions before storms) Taking actions that can deter damage, damage and other claim situations can help keep your premiums lower through claims avoidance and possible discounts from insurers.

We’re Here to Help

Contact us for help understanding insurance premium calculations, including what you can do to cut costs without compromising coverage.

Your past experience with insurance audtis has probably set your opinion of whether they are routine or something that you dislike.  if you've found audits challenging, consider following these tips help your business avoid audit surprises and make the process smoother in the future.

Don’t underestimate revenues or payroll

Be as accurate as possible when estimating sales, payroll and subcontracted costs at the beginning of the policy term. The more accurate your estimates of these metrics; the less of an adjustment required at audit. Don’t overestimate and overpay because that can impact cash flows; however, don’t significantly underestimate either because it can result in large amount due when audited.  For example, a business estimates sales at $1,000,000 and the premium is $5,000. However, at policy term end, the audited sales are $2,000,000. The business now owes an additional $5,000 premium for the $1,000,000 in sales that was covered by the policy. This amount is due right away. 

Get certificates of insurance for all subcontractors

If your business hires subcontractors, collect a certificate of insurance up front. Subcontractors who are not adequately insured may become the responsibility of the individual who hires them. This can result in an additional charge to your general liability and/or workers’ compensation premiums. Review certificates to be sure that:

• your company is listed as the certificate holder;
• if your company is being listed as an additional insured... request a copy of the additional insured endorsement with the certificate;
• there is coverage for applicable general liability, auto liability, umbrella liability and workers’ compensation. For workers’ comp, if the subcontractor is a sole proprietor or partnership, be sure that owners aren’t excluded from coverage; otherwise, they will be rated on and covered by your policy;
• limits for applicable general liability, automobile liability and umbrella liability are at the per occurrence, aggregate and product/completed operations aggregate levels that you expect and/or that are outlined in any contracts;

It’s a good idea to set a follow-up procedure to obtain updated certificates prior to the expiration to ensure that coverage remains in place.

We recommend that certificates should only come from the insurance agency or company to ensure accuracy. Having certificate documentation will help prevent issues at the time of audit. Retain copies of certificates even after the job is done in case a situation arises at a later date and you need to provide evidence that the subcontractor had insurance at that time.

Communicate with your insurance agent

If you anticipate that your actuals will be significantly higher than the estimates used to set the policy premium, pick up the phone and talk with your agent. You may land a big client and have an unexpected increase in sales or need to hire more employees due to an expansion. By making an adjustment to your policy mid-term, it avoids getting a lump-sum due at the same time that the premium is due for your renewing policy. 

If you have questions about audits or your policies, please contact us for assistance.

The start of the school year is here. College students are moving back to school, and many are getting prepared for new living arrangements which may or may not require having a car on campus. With all the preparation, insurance coverage is an issue that can be overlooked. Even if a student has been away to college previously, it doesn't mean that their insurance needs haven't changed depending upon a variety of factors.  

does the student need renters insurance?

Many parents assume that if your child is a dependent then they are covered by a parent's home or renter insurance, but it can be more complicated than that. So, the real answer is “It depends”.  A home policy covers the personal property of any resident relative, so what you need to keep in mind is the issue “Is your child still considered a resident of your household?” Even, if you think they are, you can run into situations where they are no longer considered a legal resident even if you are still providing financial support.

For example, if your student lives in on-campus housing but then moves to an off-campus apartment, you may run into issues.  If the student still has a room at your home, where they have some of their stuff and continue to have their mailing address at home, and come home at the end of the school year, then it's relatively clear that they are a household resident. But, what if the student has a room at home, but is also staying at the apartment year-round, leaves their possessions at the apartment all year, and changes their legal mailing address?  Once they cross into that gray area where it can be argued that they have set up their own household, that’s when they need their own renter’s insurance policy. It’s important to be aware of when your child’s living situation or decisions can establish their legal status as no longer being a resident of your home, i.e. changing their mailing address. Insurance companies are usually good about providing coverage even when it’s a little gray, but when it becomes more clear that your child is legally emancipated, they need their own policy.

When it comes to students living away from home, it’s also important to note that some home insurance policies have different language that adds age or full-time status limitations. On some policies, the student living away from home must be under age 24. Once they hit 24, Happy Birthday…they are no longer covered. It may also be required that a student living away must be enrolled full-time, as defined by the school, to be covered by the policy. So, if a student drops a few classes, they may officially become part-time and then...no coverage.

The goal here isn’t to delve into the details of policy language because every situation is different. But, these finer points are ones that parents often misunderstand. So, it’s important to read your policy and think about your situation. If you think perhaps your situation could be crossing that line of emancipation, then you need to talk to your agent. Don’t assume anything.  Ask your agent for clarification and if necessary confirm coverage with your insurance carrier.

As for what’s protected, a home policy covers personal property of any resident relative anywhere in the world for the same types of disaster situations covering the home. But, when personal property is kept at another residence, i.e. a dorm or off-campus apartment, the amount of coverage is generally limited to 10% of the Coverage C- personal property limit. So, if your Coverage C limit is $150,000, then you’ve got $15,000.

Generally speaking that should be enough, but these days with expensive electronics, name brand clothes, designer accessories, bikes, etc., you really need to look at what’s going to be at school. We recommend creating a “dorm inventory” listing all the items going to school and their estimated value. Check out some information that we've shared about creating an inventory that includes sample forms and links to an App. If your child has expensive jewelry, it’s probably wise to leave it at home, but if it is going to school, then you might want to consider specifically listing any high value pieces on your home policy.

car insurance concerns

You purchase homeowner insurance to financially protect your home and possessions in case of damage. When bad weather causes damage, home insurance coverage for a storm-related loss can depend on the situation as well as the type of coverage you’ve purchased.

Typical homeowner policies (HO3 policy form) include coverage for a variety of causes of loss (aka perils); however, certain causes of loss may be excluded, which helps to keep policies affordable. You may be able to expand your coverage by:

• Purchasing an endorsement to your homeowner policy; i.e. sewer back-up, service line coverage, and broader coverage for contents
• Purchasing a separate policy, i.e. flood insurance because floods are not covered by homeowner insurance.

Check your policy details about what causes of loss are covered by your policy and what is excluded. Speak with your agent if you have questions or want to explore options for enhancing coverage. Below are some general rules for common weather-related loss situations. Keep in mind that coverage limits and deductibles apply to covered losses.

wind, hail & fallen trees

Wind and hail that damages roofing or shingles, and wind-driven rain, hail or snow that causes internal damage due to wind are generally covered by homeowner policies. If a storm or weight of snow, sleet, or ice causes a tree to hit your home or another insured structure such as a detached garage or shed, a typical home insurance policy covers damage the tree causes to the structure and contents inside (when the damage causes a hole in the building). It also provides limited tree debris removal coverage ($500 or slightly more) when a tree hits your home or a covered structure. But, if a tree just falls in your yard, it’s generally not covered. In the winter, if the power goes out for an extended period of time, you may experience frozen pipes that could break/leak when the power comes back on. Home insurance typically covers resulting damage.

lightning 

If your home is struck by lightning, the damage to the structure is covered by typical homeowner insurance. Generally, damage to appliances and electronics due to power surges related to a lightning strike on your property are covered. However, if a power surge results from an off-property electrical issue, homeowner policies typically don’t provide coverage unless you have purchased expanded coverage on personal property. Also, the amount of coverage for appliances or electronics depends on the specifics of your policy such as the coverage limit amount, deductible and whether you’ve chosen personal property replacement cost or actual cash value protection. It’s always a good idea to use quality surge protectors and test them to make sure they are working properly to help prevent a claim situation.

water, floods & ice damage

Water from rainstorms or ice can cause significant damage to a home. Homeowner insurance typically covers damage from hail and ice; however, when it comes to water, coverage depends on the cause of the loss. Wind-driven rain or a frozen pipe bursting are typically covered by home insurance; however floods from rain or a body of water overflowing are not covered by home insurance and require a separate flood policy, which has its own coverage limitations regarding definitions of a flood and coverage availability.

Sewer back-ups, which can happen after a heavy rain storm, are often excluded from home coverage unless you specifically purchase the coverage by adding an endorsement. However, seepage, where water enters due to saturated ground or poor drainage, is not covered by homeowner policies or flood policies.

When it comes to your home’s contents, it’s also important to understand your coverage. For example, a typical home policy covers damage to the structure from water damage due to ice dams; however, your personal property is often covered on a “named perils” basis and may not be covered for ice dams unless you choose to purchase extended coverage. Your agent can help you to understand your current coverage and options.

earthquakes

Earthquakes and earth movement are not covered by homeowners insurance. However, earthquake insurance is available either through an endorsement. You don’t have to live in a high risk area like California to face a risk of earthquake. New England has historically experienced severe earthquakes and it could happen again.

plan ahead

Before you have a claim is the time to understand storm damage coverage and what may or may not be covered by insurance. This will allow you to either purchase additional insurance protection if available and transfer the risk, or understand what may not be covered so that you can take preventative measures in advance. 

To stay safe in a storm, know the truth about lightning dangers

“When thunder roars, go indoors!” is a truism that actually holds up. But much of what we think we know about lightning is fiction. Here are some common myths, along with the facts that will keep you and your loved ones safe in a storm.

At any given time on our planet Earth, there are 1,800 thunderstorms in progress—and with them comes lightning. Property damage from lightning is covered by standard homeowners insurance for your home, and the comprehensive portion of an auto policy for your car—but bodily harm from lightning isn't easily remedied.

During a thunderstorm, it's best to take shelter in a house, other structure or a hard-topped, fully enclosed vehicle. But as one of these options may not be available to you, your safety and wellbeing may depend on knowing the difference between these lightning myths and the facts.

Myth #1 – Lightning never strikes twice in the same place.

Fact: Lightning often strikes the same place repeatedly, especially if it’s a tall, pointy, isolated object. The Empire State Building was once used as a lightning laboratory because it is hit nearly 25 times per year, and has been known to have been hit up to a dozen times during a single storm.

Myth #2 – Lightning only strikes the tallest objects.

Fact: Lightning is indiscriminate and it can find you anywhere. Lightning may hit the ground instead of a tree, cars instead of nearby telephone poles, and parking lots instead of buildings.

Myth #3 – If you're stuck in a thunderstorm, being under a tree is better than no shelter at all.

Fact: Sheltering under a tree is just about the worst thing you can do. If lightning does hit the tree, there’s the chance that a “ground charge” will spread out from the tree in all directions. Being underneath a tree is the second leading cause of lightning casualties.

Myth #4 – If you don't see rain or clouds, you're safe.

Fact: Lightning often strikes more than three miles from the thunderstorm, far outside the rain or even the thunderstorm cloud. Though infrequent, “bolts from the blue” have been known to strike areas as distant as 10 miles from their thunderstorm origins, where the skies appear clear.

Myth #5 – A car's rubber tires will protect you from lightning

Fact: True, being in a car will likely protect you. But most vehicles are actually safe because the metal roof and sides divert lightning around you—the rubber tires have little to do with keeping you safe. Convertibles, motorcycles, bikes, open shelled outdoor recreation vehicles and cars with plastic or fiberglass shells offer no lightning protection at all.

Myth #6 – If you're outside in a storm, lie flat on the ground.

Fact: Lying flat on the ground makes you more vulnerable to electrocution, not less. Lightning generates potentially deadly electrical currents along the ground in all directions—by lying down, you're providing more potential points on your body to hit.

Myth #7 – If you touch a lightning victim, you'll be electrocuted.

Fact: The human body doesn’t store electricity. It is perfectly safe to touch a lightning victim to give them first aid.

Myth #8 – Wearing metal on your body attracts lightning.

Fact: The presence of metal makes very little difference in determining where lightning will strike. Height, pointy shape and isolation are the dominant factors in whether lightning will strike an object (including you). However, touching or being near metal objects, such as a fence, can be unsafe when thunderstorms are nearby. If lightning does happen to hit one area of the fence—even a long distance away—the metal can conduct the electricity and electrocute you.

Myth #9 – A house will always keep you safe from lightning.

Fact: While a house is the safest place you can be during a storm, just going inside isn’t enough. You must avoid any conducting path leading outside, such as electrical appliances, wires, TV cables, plumbing, metal doors or metal window frames. Don’t stand near a window to watch the lightning. An inside room is generally safe, but a home equipped with a professionally installed lightning protection system is the safest shelter available.

Myth #10 – Surge suppressors can protect a home against lightning.

Fact: Surge arresters and suppressors are important components of a complete lightning protection system, but can do nothing to protect a structure against a direct lightning strike. These items must be installed in conjunction with a lightning protection system to provide whole house protection.

Source:  Insurance Information Institute

There are four events that should trigger a review of your policy:

1. When your policy comes up for renewal

Don’t just automatically send a check to your insurance company. Take the time to review your coverage and call your agent with any questions or concerns that you may have regarding your homeowners insurance. Ask yourself the following questions:

• Has the company made any changes in coverage since last year?
• Does my policy now include a separate deductible for risks like hurricane or hail?
• Should I raise the deductible to save money?
• Am I taking advantage of all available discounts?
• Do I need to raise the amount of coverage for liability, personal possessions or the structure?
• Should I comparison shop for a cheaper rate?
• Do I need flood, earthquake or an umbrella policy?

2. When you've made major purchases or home improvements

If you have made any major purchases, make sure that you have the proper coverage. And, don’t forget about gifts. If you have received a diamond engagement ring or if a member of your family has bought you expensive artwork or a computer, talk to your agent about either increasing the amount of insurance you have for your personal possessions or purchasing a floater/endorsement for these items. A floater will give you higher and broader coverage for these items than you have under your homeowners policy.

If you have made major improvements to your home, such as adding a new room, enclosing a porch or expanding a kitchen or bathroom, you risk being underinsured if you don't report the increase in square footage to your insurance company. Don’t forget about new structures outside of your home. If you have built a gazebo, a new shed for your tools or installed a pool or hot tub, you need to speak to your agent. Keep receipts and records in case you need to forward copies to your company.

3. When you've made your home safer

If you have installed a state-of-the art fire/burglar alarm system or upgraded your heating, plumbing or electrical system, make sure that your insurance company knows about these improvements. You may qualify for a discount.

4. When you experience major lifestyle changes

Marriage, divorce, or adult children who move back into the family home, can all affect your homeowners insurance. When people move in or move out, they take their belongings with them. And you may need additional coverage if there is a sizable increase in the value of the belongings in your home.

Starting a home-based business can also trigger changes in your coverage. You will need to get additional coverage for business liability and equipment. If the business is your primary source of income, you may need a Businessowners Package Policy (BOP). You may also need professional liability coverage, which is excluded under in-home business and businessowners policies. For more information, see Business Insurance.

Source: Insurance Information Institute

You may be considering renting out your home for extra income while you’re away for an extended period. Or, if you have a second home, you may consider renting it as a short-term rental through a service such as Airbnb, Vrbo, etc. While this may be a worthwhile endeavor for homeowners with extra room to spare, it can also create significant liabilities. If you are thinking about renting out your home, here are some considerations that can help minimize your risks.

• Ask for references from potential renters—especially those that are looking to stay for an extended period.
• Establish a rental agreement that defines the terms of the rental, including restrictions, liabilities, and occupancy guidelines.
• Request a security deposit that is only to be refunded if there is no damage to your home.
• Consider hiring a property manager to look out for your home if you are renting out your property for a long period of time and/or can't check on it yourself.
• Set aside a secure and protected place in your home to store personal items, such as clothing and valuables.
• Take pictures of all areas of your home before the rental takes place as documented evidence in case damage occurs while you are away.
• Have your mail forwarded or held until you return to keep guests from having to handle any letters or packages that get delivered during their stay.
• Provide your contact information to both the renters and your neighbors in case of an emergency.

Secure Adequate Coverage

In addition to taking these precautions, be sure to advise your insurance agent, in advance, that you plan to rent out your home and investigate how this may affect your current coverage, so that you can make informed decisions.

 Keep in mind that standard homeowners insurance policies typically don’t cover losses related to renting out your property. In order for your home to be covered, you may need to secure additional, specialized insurance protection before renting out your home depending on your situation.

 The term cohabitation most commonly refers to unmarried couples living together, but it also applies to roommates and other living situations. If you choose to cohabitate, take care to obtain the right coverage for your situation. The general overview below highlights key concerns; however, it doesn’t address every circumstance. Talk with our Associates about your specific situation, so that we may offer you appropriate guidance.