First Community Financial Group, Inc. Blog |
It's important to know that most home policies don't cover flooding and just a few inches of water damage can cost thousands. Even those who don't live near water are at risk, because anywhere it rains, it can flood. Heavy rains, clogged or insufficient drainage systems, nearby construction projects, broken water mains and inadequate levees and dams can cause flooding that put your Home and belongings at risk. Your home is one of your greatest investments. It's important to prepare ahead in the instance that a disaster could occur. Here are three simple steps to help make sure you're ready in the event of a Flood.
Call our agency today if you need a flood quote or have questions about your coverage! (936) 327-4364
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Everyone needs health insurance, now more than ever. With the COVID-19 pandemic in its second year, there has never been a better reminder that taking care of your health is key to remaining well and safe. The right health insurance can help make certain you receive both routine and critical medical care affordably at the time you need it.
Though health insurance substantially reduces your out-of-pocket burden for medical expenses, it does not eliminate that burden. Most care requires some degree of cost-sharing, meaning you must cover a portion of the expenses yourself. One of these personal costs may be your deductible. A deductible is a specific cost burden that will accompany certain medical procedures or services. Here’s how it works. How Do Deductibles Work? A deductible is a fixed, yearly amount that you must pay for medical expenses before your health insurance will cover the remaining costs of care. Deductibles are designed to lessen the cost burden posed to medical insurers. By sharing some costs, insurers can continue to offer affordable premiums and more expansive coverage to all of their policyholders. For example, suppose that your health insurance plan has a $2,000 annual deductible. This means that you will have to pay up to $2,000 out of pocket in a single year before your insurance plan will cover certain costs of care. After you have paid off the deductible, then your plan will cover additional eligible expenses. In this example, if you received a $5,000 surgery bill, you’d pay $2,000 and your insurance would cover the rest. Once your plan renews, the deductible obligation starts over. When Do I Have to Pay It? Health insurance deductibles do not necessarily apply to every medical expense you might face. Some plans require you to pay 100% of the costs of care until you have met your deductible while others exempt certain care from the deductible obligation. Most plans exempt regular checkups, medically necessary services and preventative care from deductible rules. You may only have to pay the necessary copayment or coinsurance regardless of whether you still owe money on your deductible for a checkup, lab work, vaccination or other routine care. This enables you to still receive the care that is most necessary for you to stay well, without facing an undue cost burden. Your deductible will still often apply to certain care costs, such as inpatient care expenses, certain imaging services or other care that your insurer might not deem medically necessary. You can examine precisely how your plan outlines your own deductible obligations by reviewing your explanation of benefits document. This will outline exactly how and when the deductible will apply. For further information on your health insurance deductible, contact our agency today! When you insure yourself under a life insurance policy, you will name a beneficiary who will receive the policy’s payout in the event of your death. This settlement is called a death benefit, and it can ease your survivors’ financial burdens in numerous practical ways.
You might decide that leaving life insurance to family beneficiaries is the best way to enable them to settle your estate. However, a death benefit is different from other types of inheritance. Here’s what you should consider when you are choosing the death benefit for your life insurance policy. How Do Death Benefits Work? You buy life insurance while you are still alive, but it is only designed to pay out in the event of your death. You can choose the sum of the death benefit included within the plan, and you can also choose for how long you want the policy to cover you. Some plans only cover you for a certain term of years (term life insurance) and others last for the rest of your life (permanent life insurance). At the time of choosing the plan, you will also name the beneficiary to who you want to receive the policy funds. You cannot be both the insured and the beneficiary on the policy since you must die for the policy to pay out benefits. Should you die while the policy is in place, your beneficiary will receive the death benefit. Some life insurance plans allow you to name primary and contingent beneficiaries, and you can also instruct that each beneficiary receive a certain percentage of the death benefit. One positive aspect of life insurance death benefits is that they are not considered part of your estate. As a result, they will not go through the probate process. Therefore, your beneficiaries won’t automatically be obligated to repay creditors or others using this money. Still, if you want to put stipulations on how the death benefit money is to be used, then you have the option of placing the money into a trust. The trust will be the technical beneficiary on the policy, and you can set rules within the trust on how the named trustee is to distribute the money within. You should let your beneficiaries know that you are naming them on your life insurance policy. That way, they will know that, upon your death, they need to notify the life insurer and start the claims process. At that time, they should receive the money within a few weeks. However, they will have to provide proof of your death, and the insurer might take longer to pay out benefits (or even deny a claim) if there are suspicious circumstances surrounding your passing. If you are unsure your loved one will know what to do with your life insurance death benefit, you can let your will or attorney provide instruction to your beneficiary after your death. Additionally, your life insurance agent can help your loved one through this process. In 2014, almost 18 million people in the U.S. were victims of identity theft. Two-thirds of them said they suffered a direct financial loss because of it, according to the Bureau of Justice Statistics (BJS). During tax season, your personal information is particularly vulnerable. After all, your Social Security number (SSN) is on W-2 forms, your tax return and other financial documents being sent through the mail, transported to accountants and otherwise used to complete your annual IRS ritual. So it’s a good time of the year to be especially vigilant. To help, here are four things you should know about identity theft — from what thieves can do to how you can help protect yourself — from the Internal Revenue Service (IRS) and Federal Trade Commission: 1. Thieves won’t just open new accounts — they can (and will) file “your” taxes. Someone with access to your data could file a fraudulent tax return and claim a refund under your name. You may not know until you go to file your own return and it comes back rejected. If it happens, call the IRS Identity Protection Specialized Unit at 1-800-908-4490. 2. Scammers will try to reel you in. Ever get a call or email from someone asking you to verify your account information or SSN? Legitimate organizations, especially the IRS, won’t do that. If there’s a problem with your tax return, the IRS will contact you by mail. 3. Technology can help. If you send tax forms or other sensitive documents via email, password-protect them. Furthermore, security software can help keep your data safe, and password generators will help ensure your various login credentials aren’t easy for a thief to figure out. As for analog documents, such as tax records, store them in a locked desk or filing cabinet and don’t send them through the mail unless it’s certified. 4. Reporting the crime is a must. Ninety percent of identity-theft victims don’t alert the police, says BJS. But you should. A police report can help prove to financial institutions and businesses that someone stole your identity. It also allows you to place an extended fraud alert on your credit report, get inaccurate information removed, stop debt collectors from reporting fraudulent accounts and more. Because once criminals have your information, they may use it to perpetuate many types of fraud. Protecting your identity is, of course, something to be mindful of all year round – not just during tax season. For more tips, visit IdentityTheft.gov. And, to discuss adding identity protection coverage to your home insurance policy, contact us at First Community Financial Group today. Thinking about a DIY home improvement project? Maybe a new kitchen or bathroom makeover? If project excites you, you’re not alone. The Home Improvement Research Institute (HIRI) says do-it-yourselfers complete two-thirds of home improvement projects — and spend less than those who depend solely on contractors. While saving money is satisfying, the sense of accomplishment DIYers feel is even better. But before you pick up a hammer or grab a paintbrush, you’ll need to do some homework. As you draw plans, budget, purchase materials and secure permits, you also need to think about insurance. Talk to your Trusted Choice Independent Insurance Agent® at First Community Financial Group before you start work. Your agent can help you assess the unexpected risks of your project. Here are five common renovation projects that may require additional insurance: Kitchen renovation Maybe you’ve been dreaming of a new kitchen, one with quartz countertops and Wi-Fi-enabled appliances. Kitchen remodels can add convenience and significant value to your home, but there are a few insurance considerations: • Depending on your level of experience, you may need the help of a plumber or electrician. Make sure the contractors you hire are bonded and insured. Do they carry liability insurance? Ask to see their certificate of coverage. • Check with your agent to see if you should increase your homeowners coverage. If your renovation substantially increases the value of your house, you could be underinsured if you haven’t raised your limits. Generally, you need enough insurance to replace 80% of your home’s value. • Will friends be helping you? Ask your agent about adding no-fault coverage or raising your medical expenses coverage. Bathroom makeover You have visions of a soaking tub, new vanities and imported marble tile. Sounds delightful, but keep these points in mind: • You may need a plumber to help you move a water line or drain. Bear in mind that water damage caused by your faulty workmanship won’t be covered by your homeowners policy. On the other hand, if you use a contractor, their business insurance should cover the damage to your home. • Will that expensive marble be sitting in your driveway after it’s delivered? Costly materials have a way of walking away from a job site. Check to see if your policy covers theft or damage to your building materials. Home office You’ve decided to convert a spare bedroom into a home office. It’s an easy renovation, but here are some insurance considerations: • Most homeowners policies only provide limited coverage (up to about $2,500) for office equipment. If you have items that exceed that amount, you’ll need additional coverage. Your agent can recommend some options. • If you’re doing work for your firm at home, make sure you’re covered by the company’s business and workers’ compensation policies. If you’re self-employed, you may need a separate business policy, especially if clients visit your house. Sunroom You’ve always wanted a room off the kitchen to take advantage of the morning sun. Sunrooms can provide enjoyment year-round, but you do need to keep a few things in mind: • Talk to your agent about adding a new room to your homeowners policy. You may be able to get a discount if you install energy-efficient windows or heavy-duty locks on an exterior door. • Is the project insured against severe weather? Theft or vandalism? You may need a builders risk policy. Finished basement You’re planning to create extra living space in the basement for your growing family. You’ve contracted to have a French drain and a sump pump installed to prevent water from leaking in. You’ve also decided to live in a friend’s house while you work on the project. Other Considerations: •If your house is unoccupied during construction, you may need vacant home insurance. • Be sure to get a warranty on the French drain. Flooding isn’t covered by homeowners insurance. However, you can add water backup coverage to your policy to pay for damage if your sump pump fails. • Game room? Home theater? Extra bathroom? You may need to increase the limits on your homeowners policy. n the other hand, upgrading old wiring or installing a security system could lower your premiums. If you’ve got the home renovation bug, maybe it’s time you joined the ranks of millions of satisfied DIYers. Just remember to contact your Trusted Choice agent at First Community Financial Group to get your insurance needs squared away. Then you can hammer to your heart’s content. If you’re a small business owner who is looking for the best way to ensure your company, then a business owners policy—better known as a BOP—is a great way to start. It makes sense for many companies to carry this coverage because it offers several types of commercial insurance in one place. As a result, this single plan can often substantially reduce your overall cost for coverage.
All the same, BOPs are not all-inclusive. In their standard forms, they generally only offer commercial property, general liability and business interruption coverage. As a result, the pragmatic policyholder should always consider expanding upon their benefits portfolio. Adding Benefits to Your BOP By adding coverage into your BOP, you’ll be able to account for the fact that you sometimes might face liabilities that are separate from those covered under standard BOP benefits. The following are four types of critical benefits to commonly added coverage to BOP plans. In most cases, workers’ compensation and commercial auto insurance benefits must be purchased separately from BOPs. However, EPLI and E&O benefits are sometimes available as BOP endorsements. 1. Professional Liability Insurance Often, professional service providers—lawyers, CPAs, doctors—need this benefit because it is their services themselves that might cause harm to clients. This benefit covers more than just someone slipping and falling in your store. Rather, it covers instances like one where a CPA makes a mistake on a client’s taxes and then gets sued over the resulting burden. This benefit is sometimes known as errors & omissions (E&O) insurance. 2. Employment Practices Liability Insurance Businesses are required to conduct their hiring, retention, review and termination practices in compliance with employment law. Failure to do so might result in allegations of harassment, discrimination, failure to hire or promote, or unfair termination. Should legal action arise as a result of these incidents, then an employment practices liability insurance (EPLI) policy, will help you defend against the claims. 3. Commercial Auto Insurance If your business owns or operates vehicles of any kind, then you will need to insure those vehicles in compliance with both state and interstate auto insurance laws. A commercial auto insurance policy will offer you the necessary liability, physical damage and related benefits for your needs. It will ensure that you will have protection if you ever face unexpected vehicle damage or losses. 4. Workers’ Compensation Insurance Another insurance benefit that most businesses are required by law to carry is workers’ compensation insurance. It will provide supplementary income, medical benefits and other assistance in the event that one of your employees gets injured or becomes ill as a result of their work. Our agents are happy to work with you to optimize your BOP’s benefits and your other policies in the most efficient ways. Comprehensive vs. Collison Auto Insurance
Auto insurance is designed to provide you with financial assistance in the event of an accident, theft or other instance of vehicle damage. After all, you shouldn’t have to bear the costs of an accident entirely on your own. There are a few separate benefits that the average policy will utilize to cover vehicle damage. Two of these are collision coverage and comprehensive coverage. You have to understand that these are equally essential, but still unique and separate benefits. Here’s how they work. Collision Coverage Collision insurance is often the type of physical damage insurance that is most familiar to policyholders. It will help you cover costs to repair or replace your vehicle following a wreck. You can use this benefit when an accident is your fault, since under the circumstances you won’t be able to file against another at-fault party’s liability insurance. Typically, your collision coverage will pay for the cost of your repairs, minus the cost of a deductible. If the vehicle is totaled in the accident, then the policy will often pay the cash value of the car at the time of the loss, minus the deductible cost. This might not be the full cost necessary to buy a new car, but it will represent a settlement for the value of the vehicle lost. Factors like your chosen deductible, the value of your vehicle and your driving habits will influence the cost of your collision coverage and your overall premium. Plus, if you have a tarnished driving record, then you are likely to pay a higher premium overall because you have a higher likelihood (in the eyes of the insurer) of filing a damage claim. Comprehensive Coverage Aside from collision coverage, comprehensive coverage is a separate physical damage benefit that is designed to cover vehicle damage from hazards other than collisions. Unlike its name might suggest, it does not include collision coverage as part of its benefit. You must purchase these two benefits separately in order to get full coverage. There are many cases in which comprehensive coverage can pay for vehicle damage. For example, if a tree falls on your car during a storm, then this is the benefit that will pay for the repairs. If your car were to catch on fire (even while you are driving it), then this is another circumstance in which your plan will cover you. Considerations Physical damage insurance is not a benefit that any driver should be without, and it’s easy to see just how much assistance this plan can provide you in the event of vehicle damage. This coverage is so essential that many vehicle lenders will require drivers to purchase this coverage if they finance their car purchases. By having this coverage, you can better guarantee that you won’t default on your loan payments just because of damage to or loss of your vehicle. Contact one of our agents today to get a free quote for your auto, ATV, boat or RV! When you drive recklessly, it impacts more people on the road than just yourself. In fact, other drivers, their passengers, your passengers and even pedestrians on the road can be affected by the decisions you make behind the wheel. Therefore, you have to treat driving as the potentially dangerous activity that it is.
Your ability to drive safely directly relates to your insurance rates and the continued validity of your driver’s license. The better you avoid hazards, the better you can avoid higher insurance rates and other driving penalties. To prevent a license suspension or auto insurance rate increases, practice the following 10 safe driving tips:
If you need a little assistance getting through a rough patch with your auto insurance rates, contact us for more information. Most small business owners choose to invest in business owners policies—also known as BOPs. Put simply, BOPs can help business owners easily optimize their commercial insurance. BOPs usually contain several types of insurance, including commercial property coverage. This is an important form of coverage, as it can protect your business assets and possessions when damaging incidents occur.
Why BOPs Are Valuable BOPs generally cater to the needs of small businesses. Through BOPs, business owners can obtain several types of coverage all in one package, thus ensuring cohesive insurance. BOPs are usually more affordable than separate policies. To start, most BOPs usually offer commercial property, general liability and business interruption insurance. However, policyholders can usually add extra coverage to work in conjunction with their BOPs. Doing so can allow them to properly expand their business insurance benefits. Commercial Property Coverage in a BOP The commercial property insurance within a BOP can help protect any property owned by your business. Some items this policy might cover include:
Should a hazard damage or destroy this property, your BOP’s commercial property coverage can pay to help you rebuild, restock or replace lost items. A variety of hazards might qualify for claims under your coverage, such as:
Commercial property insurance can then indemnify you for the costs caused by the lost property. This means you won’t have to spend hard-earned income trying to recover from a loss. That way, you can easily get your business back on its feet. Limits, Exclusions and Deductibles Keep in mind that your BOP’s commercial property insurance won’t cover every type of property from all potential losses. Consider these policy limitations: Policy limits—When you sign up for your BOP, you can choose the value of commercial property coverage that you want to carry. This reflects the maximum amount that your policy will pay for your physical property losses. It’s important that you choose a value that reflects the cost of the property you own—including buildings, inventory and equipment, among others. Be sure to verify the cost and value of your property through appraisal or research. Exclusions—Commercial property insurance will not extend to all property-related losses. For example, this coverage might not insure certain specialty equipment or outdoor items. Such a policy also won’t cover damage from certain hazards, such as floods or any intentional damage you may cause. Deductibles—Most commercial property coverage comes with a deductible. The deductible is a flat amount that your business agrees to pay for property damage before your insurance pays out for a claim. If the damage falls below the cost of your deductible, then you will not receive coverage for your losses. When putting together your BOP, remember to talk to one of our agents about how to optimize your commercial property coverage. By carefully crafting your policy, your business will receive maximum financial benefits. Health insurance can be expensive, and as of 2021, there is no longer a federal requirement that you have to buy health insurance. You will not face fines for not carrying coverage.
Choosing to go uninsured isn’t recommended—and for a good reason. The average cost of health insurance for a single person in the U.S. is around $495 a year (about $41.25 a month), while the average cost for an American family is around $1,779 a year (about $148.25 a month). This may seem expensive, but it’s critical to compare health insurance premiums to the cost benefits you will receive from buying a policy. The True Cost of Health Care Getting health insurance is encouraged due to the expensive nature of health care services today. A single hospital stay can cost an average of more than $15,000, this is an expense many are not ready to pay for. While you may be able to schedule payments for expensive medical bills, it isn’t always feasible—especially when added to other everyday medical costs such as medications, check-ups, doctor visits, etc. Consider just a few of the average costs of common health care services (without insurance):
For example, a single person gets into a car wreck and needs emergency services. They’re transported by ambulance to a hospital and rushed into immediate spinal fusion surgery. Once out of surgery, they not only need to stay in the hospital for a few days to recover, but they will also need prescription medication and physical therapy. On the low side, the victim could be facing a bill of at least $35,000 (on top of recovering physically and emotionally from the incident). Growing Health Care Costs Unfortunately, these prices only seem to be growing due to a few factors, such as:
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