 In the past, homeowners who occasionally rented their properties for local events often relied on their standard homeowners insurance.
But with the rise of short-term vacation rentals, insurance policies have changed - making it essential to reassess your coverage. Here are five critical areas to review:  As with other industries, the insurance market is cyclical, and we're currently in what's called a "hard market."
A hard market is when political, societal, climate, and other factors cause insurers' profits to fall. Over the past several years, the impact of these factors have combined to a point where insurers have experienced greater losses and have had to make adjustments to maintain profitability. Insurers have become more conservative in what they are underwriting causing their portfolios to shrink and clients' premiums to rise. Historically, hard markets haven't lasted as long as "soft markets," which is when market conditions are just the opposite. In soft markets, insurers' revenue reserves are higher and they are able to be less strict in the risk they underwrite. This allows them to increase their client portfolios, there is more competition among companies, and premiums are very stable over time. SO, what can you do while we're in a hard market to soften its impact?  With the proliferation of cyber attacks, businesses have been warned to bolster their digital security...but do all businesses really need cyber security insurance?
Both cybersecurity and insurance experts agree that a business that stores any form of digital data should consider carrying cybersecurity insurance, even if it's low coverage limits. This kind of insurance covers the financial impact of hacking, ransomware extortion, data breaches, and data theft. The amount of coverage a business needs depends on a number of factors including:  Are you among the many side hustlers renting out your backyard and pool (or other property) by the hour?
In addition to bringing in some extra money, it can also create additional liability issues for you.  If you rent your home out only once a year for a local event, can you rely on your standard homeowners insurance and umbrella policies to cover any possible incidents that require filing a claim? Or do you need to add a different policy for that one-time rental?
 An independent insurance agent is not tied to any specific insurance company. They represent multiple insurance companies and can provide a variety of options to their clients.
This is compared to a captive agent who works for only one insurance company and can only offer you the products that company offers. Advantages of using an independent insurance agent include having:  At a minimum, evaluate your policies once a year to ensure they still meet your current needs and to take advantage of any potential cost savings. Plus, certain life events or changes in circumstances may require an immediate review of your policies.
Examples of situations that may require a review of your insurance policies include: |
AuthorDennis Lam Archives
July 2024
Categories
All
|
RSS Feed
