myrtle beach insurance Archives - Home and Auto Insurance

3 Things You Should Check on Your Policy Today

Have you ever thought about what is most important in your homeowner’s insurance policy? If you want to understand your home insurance policy, it’s important to make sure you have the coverage you really need. There are three main areas of your policy to focus on for comprehensive protection for your property. Comprehensive protection in an insurance policy is when you are insured against a wide range of risks and unforeseen events, adequately.

# 1. Coverage Types

– Dwelling Coverage: Make 100% sure that your policy has the full replacement cost of your home as well as all structures on your property, even your fencing! Your agent can help you determine the cost to rebuild your home in today’s market by running a quick replacement cost estimate.

– Personal Property Coverage: Is your policy limit too low or too high? We see this a lot in today’s market, sometimes the limit is preset by companies you may be overinsured. Why pay for more than what you own? You may need a separate policy called an inland marine policy to schedule valuables such as jewelry, guns and collectibles. Never assume everything you own is covered, most policies have preset limitations on specific valuables.

– Liability Coverage: it is imperative to have enough liability protection/limits in case someone is injured on your property or if you accidentally cause damage to someone else’s property. No one likes getting sued, but it happens daily.

# 2. Deductibles

– Amounts: In coastal SC, almost every company sets a minimum amount on your wind/hail deductible and that is normally 2% of your dwelling coverage. All other peril deductibles (anything not related to wind/hail) can range from $1,000-$5,000 or a percentage of dwelling coverage. You can pick which deductible is most affordable to you. But remember, you pay those deductibles out-of-pocket before insurance kicks in. Choose an amount that fits your financial situation.

# 3. Exclusions and Limitations

– Specific Exclusions: In our area, flood damage is specifically excluded on property policies. Be aware of what is not covered under your policy and don’t just assume you have coverage. Read through your policy to see the exclusions.

– Coverage Limits: A lot of policies have caps on damages caused by water on older homes. See if your policy has any caps on specific types of claims, like theft or damage to personal property. This also ties back to valuables and realizing there are certain limits built into policies.

Our homes are our livelihoods. Please ensure that you understand your policy. No one thinks the unimaginable could happen to them, but we see it more than you know. In the event of a total loss, you will need the tools necessary to help yourself recover financially. Reviewing these three areas on your policy does just that!

Submitted by Mary Beth Morris

E-Bikes and E-Scooters: What you need to know

Electric bikes, electric scooters and low-speed vehicles (LSVs) are growing in popularity. Between 2018 and 2022, which is the latest available data, sales of e-bikes rose from approximately 250,000 per year to more than one million, while the rentals of both e-bikes and e-scooters also increased dramatically, according to the National Association of City Transportation Officials (NACTO).

As the use of these personal micromobility devices (PMDs)—defined as lightweight, micro-sized vehicles with limited power and speed, used over short distances—continues to grow and evolve, emergency rooms are seeing many more people injured while riding e-bikes and e-scooters.

While e-bikes and e-scooters offer a convenient and eco-friendly mode of transportation, there are downsides to their use, with more than 20,000 people injured each year while riding an e-bike and approximately 3,000 requiring hospitalization, according to the American College of Surgeons.

The growing popularity of these devices also presents carriers with liability challenges. “E-bikes and scooters are increasingly popular, and many models now reach speeds comparable to mopeds,” says Laurel Page, assistant vice president, recreational product management, American Modern, a Munich Re company. “These vehicles present unique risks, including severe accidents, theft and battery-related fires.”

Crucially, “most homeowners and renters policies exclude motorized vehicles, leaving significant coverage gaps,” she says. For agents, this presents an opportunity to work with carriers and clients to bridge the knowledge gap and ensure their clients have the necessary coverage or are aware of the exposure.

“Customers may not immediately think about e-bikes, dirt bikes or scooters when discussing their insurance needs, so, as a first step, agents should ask about ownership of any of these types of vehicles,” says Scott Hall, motorcycle product manager at Progressive Insurance. “That simple question can open the door to a meaningful conversation about why coverage matters, highlighting liability risks, potential financial impact from an accident and the protection insurance can provide if the vehicle is stolen or damaged.”

As usage increases, the concern is that many users are unaware of the risks and potential gaps in coverage. “In reality, homeowners policies often exclude motorized vehicles or provide limited coverage only while the vehicle is on the insured property, and the policy may indicate a sublimit for e-bikes,” Hall says. “Even when coverage does apply, homeowners should consider the potential impact to their premium if they file a claim related to an e-bike.”

“Consumer misunderstanding can lead to two problems: owners either go uninsured or mistakenly believe they’re protected, only to face unexpected gaps and financial consequences later,” Hall continues. “Agents can play an important role in educating consumers on available coverages under existing policies, any limitations and the benefits of a standalone policy.”

As trusted advisors, agents can explain why homeowners and auto policies don’t adequately protect e-bikes, scooters, golf carts and dirt bikes.

These include highlighting “the problems one might see on an endorsed homeowners policy, excluding guest passenger liability and uninsured or underinsured motorists’ coverage. These are auto coverages recreational vehicle owners might expect to have,” says Eric Uturo, product manager, Foremost – a Farmers Insurance Company. “A recreational vehicle insurance policy from an insurer specializing in this type of insurance can help customers avoid potential coverage gaps.”

Additionally, “these products have many small manufacturers and parts producers, which can cause complexity for non-specialized insurer claim departments,” Uturo says. They can also “promote standalone policies that offer dedicated protection for liability, damage and theft without impacting homeowner policy claims, as well as comparing multiple carriers to deliver the best combination of coverage and price, reinforcing their role as a trusted advisor,” Page says.

Additionally, by keeping up to date on technological changes within the market, as well as the changing rules and regulations around e-bikes, e-scooters and LSVs, agents can help alleviate carrier concerns when it comes to scenarios, such as “misclassification” by “treating motorized bikes or scooters as standard bicycles—leading to inconsistent underwriting and unrecognized risk,” Page says.

Identifying and highlighting risks, such as “high-speed models increasing injury severity, expensive components and lithium-ion batteries introducing fire hazards that require specialized coverage, as well as varying state regulations creating complexity and uncertainty in policy design,” Page says, can add to the valuable role agents play for both carriers and their clients.

Submitted by: Big I Independent Agents