Although owning a car is convenient, it can come with a lot of expenses. You have to buy gas, get the oil changed, buy new tires, perform other routine maintenance, buy windshield wipers and windshield washer fluid, and on and on…

If you’re looking for places to save money, you might start to wonder if you really need to pay for car insurance.

Auto insurance is incredibly important, and in most cases, it is required by law. Read on to learn more about all the benefits car insurance can provide and why it’s important to maintain it.

1. It’s Required by Law

One of the biggest reasons many of us have car insurance is that it’s required by law almost everywhere. In fact, there are just two states that don’t require drivers to have car insurance: New Hampshire and Virginia. And even in Virginia, there’s a $500 annual fee for not having car insurance.

As we’ll discuss more later, if you have a car loan, your lender might also require you to maintain car insurance. In both cases, this insurance is required as a way to protect both you and the state or lender. If you’re involved in an accident, any damage that results will be covered even if you can’t afford to pay those costs out of pocket. 

2. Damage to Your Car 

Other than legal requirements, it’s important to maintain car insurance in case your car gets damaged. Even minor car repairs can get expensive, and if you have to replace a major system in your car, it could throw you into financial havoc. In fact, most car repairs cost on average somewhere between $500 and $600.

If you get into an accident, the damage to your car could wind up being more than the actual value of the car. You could even have damage from a hit and run or vandalism that you have to pay to repair. Insurance will cover most of the costs of these repairs, even if you don’t know where the damage came from or the wreck was your fault.

3. Damage to Another Car

Of course, if you get into a car accident, your car isn’t the only one you have to worry about being damaged. If you caused the wreck, you could be on the hook for the damage done to the other driver’s car. So now not only are you having to pay for your car repairs, but you’re having to cover the cost of their repairs, too.

The financial impact of this damage can go up exponentially depending on what sort of car you hit. As you might imagine, hitting a Corvette is going to cost you more than hitting a Ford 500. Insurance can cover the costs for repairs to the other car, no matter what model you’re involved in the wreck with.

4. Natural Damage

Of course, car accidents aren’t the only way your car can get damaged. A strong wind storm could drop a tree branch on the roof of your car, or hail could dent the hood and crack the windshield. A flood could destroy your car entirely, or you could lose the vehicle in a wildfire or a tornado.

Car insurance also helps to cover damage and loss from these sorts of natural disasters, in addition to damage from accidents. In some cases, you may have to prove that the damage done to your car was as a result of the natural event and not, for instance, a neighborhood kid throwing a baseball. But when bad weather strikes, your car insurance company will have your back.

5. Liability 

One of the most potentially devastating parts of being involved in an accident is the possibility of liability. If you cause an accident that injures somebody, a judge could decide that you’re liable, or responsible, for their injuries. You may have to pay their medical bills, as well as damages for any emotional or mental harm you caused. 

Liability lawsuits can get extraordinarily expensive, and if you don’t have the money to pay for them, the court could take your car, your home, your retirement, and any other assets you may have. Car insurance protects you from these personal expenses and helps to cover some of the costs in these suits. 

6. Passenger Injuries

In addition to injuring the other driver in the wreck, a car accident could injure passengers in your car. Just like with liability suits, as the driver of the car that caused the accident, you’re the one responsible for those injuries. Depending on what action your passenger decides to take, you could have to pay for their medical bills and damages, too.

Luckily, in the case of passenger injuries, you won’t have to pay for car repair or replacement, but medical bills add up quickly. On average, it costs about $10,000 per day for someone to stay in the hospital. Car insurance will help to pay those costs if you are held liable for injuries to your passengers.

7. Driver Injuries

And, of course, the other person who could wind up injured in a car accident is you, the driver. Even minor fender benders could cause bruising, whiplash, and even a concussion. A more serious wreck could break bones, puncture lungs, or cause burns, internal bleeding, or worse, especially if you’re on a motorcycle.

In addition to the $10,000-per-day hospital bill, you could wind up needing physical, mental, or occupational therapy after your accident. It could take time for you to be able to get back to work, and you might lose income during that time. Your car insurance can help to cover those costs and keep this accident from being catastrophic for your finances.

8. Non-Owner Accidents 

In some cases, you may not even be in the car when the wreck that totals your ride happens. Let’s say you loan your car to a friend and they wrap it around a telephone pole on the way home in the rain. You’re still responsible for paying to repair your car, even if they were the ones driving it.

Car insurance is exactly what it says on the tin – insurance on your car, no matter who’s behind the wheel. Your insurance can help pay to repair or replace your car when it gets damaged in an accident, even if you weren’t driving it at the time. It can also help to cover your friend’s medical bills if they were hurt in the accident. 

9. It Supplements Health Insurance

In addition to protecting you against all sorts of liability and expenses, you might be surprised to learn that car insurance can actually act as a supplement to your health insurance. Oftentimes, there are expenses health insurance won’t cover for various reasons. For instance, if you don’t have dental insurance and you damage your teeth in an accident, your health insurance may not pay to have that damage fixed.

In certain cases, your car insurance can cover some of the costs related to medical treatment. Of course, most of the time, this treatment has to be related to a car accident or similar vehicle-related incident. Talk to your insurance agent about what medical coverage you can expect to see from your car insurance. 

10. It Protects Your Equity

If you have plenty of money, you may be looking at the costs we’re discussing and thinking, “I can afford that.” And after all, wouldn’t you save money by paying the $500 every five years or so to fix damage from a crash, rather than paying hundreds of dollars a year or more to insure your car? But getting those expenses covered by insurance is about more than just what you can afford. 

As you work to pay off and maintain your car, you build equity in that vehicle. If you keep it in good enough shape and sell it at the right time, you could make enough money to use as a decent down payment on your next car. But if you have to spend thousands repairing your car or if you total it entirely, all that equity goes down the drain.

11. It Protects Your Lender

If you get a loan to buy a new car, your lender will likely require you to maintain insurance on that car. During the time you’re paying off your loan, the car itself acts as the collateral that protects the lender’s investment. If you stop making payments, they can take the car back and sell it to recover the money they loaned you.

But if you get into a crash while you’re still paying off your car and the car is totaled, the lender no longer has that source of collateral. They can try to legally obligate you to pay what you owe them, but if you don’t have the money, they’re left holding the bill. A car insurance policy ensures that, even if you destroy the car and can’t afford to pay off the rest of the loan, their investment is safe.

12. It Provides an Intermediary

One aspect of car wrecks that many people don’t think about is the negotiations that have to happen afterward. Let’s say you don’t have insurance and you get into an accident with another person who doesn’t have insurance. You believe they should pay for the damage to your car, they believe you should pay for the damage to theirs, and you both wind up screaming at each other across a courtroom.

Car insurance companies act as intermediaries in negotiations over who’s responsible for paying what after an accident. Your agent knows all the laws surrounding your liability and can argue in your favor so you wind up paying the least possible amount. They can also handle disagreements between you and the other person in professional, productive ways that find the best solution for everyone involved.

Types of Car Insurance

Now that you know a little more about why car insurance is so important, let’s talk some about the different types of insurance. There are six basic types of insurance: liability, collision, comprehensive, personal injury protection, uninsured/underinsured motorist, and medical payments.

Liability insurance pays for any damages you might be held liable for, including injuries to the other driver in an accident. Collision car insurance pays to fix or replace your car after an accident, even if the crash was your fault. Comprehensive insurance covers all of the above and damage to your car that didn’t come from an accident, such as damage from a storm.

Personal injury protection insurance covers your medical expenses, both direct and indirect, after an accident. Uninsured/underinsured motorist insurance covers your expenses after an accident with a driver who doesn’t have insurance. Medical payment insurance pays only for your direct medical costs after an accident. 

Picking the Right Policy 

One of the biggest factors in deciding which car insurance policy is right for you is your budget. It should come as no surprise that more coverage is more expensive, and you may have limitations on what you can afford. Even basic liability insurance is better than no insurance at all, and those policies are relatively affordable.

You may also need to take a look at what coverage your state and/or lender require. For instance, two states require you to hold medical payment insurance, and twelve require personal injury protection coverage. In most cases, collision and comprehensive insurance are only required on financed cars.

Learn More About Auto Insurance 

Auto insurance is incredibly important for a number of reasons. For one, it may be required by either your state and/or your car financing lender. But insurance can also protect you from a variety of expenses, supplement your health insurance, provide an intermediary for negotiations, and more.

If you’d like to learn more about auto insurance, check out the rest of our site at Gessel and Associates. We believe in doing the right things for the right reasons, and we are your trusted source for insurance and competitive rates. Request a consultation today and discover smarter insurance that starts with experts who think a little differently.

Are you shortly to join 5 million other Americans living in a condo?

They can be a great choice for many people. You get shared amenities and a homeowners association (HOA) making sure everything is ship-shape!

It can be a little confusing though figuring out exactly what type of condo insurance you need to get. Is that covered in your monthly HOA payment? Or do I need to get something extra?

Let’s take a closer look at some common condo insurance questions – and their answers!

Do I Need Condominium Insurance?

Let’s clear this common question up straight away – yes, you almost always do. 

A condo is a home – usually an apartment-style home – that is owner-occupied. You have communal facilities that you own along with the other condo owners. A homeowners association is responsible for maintaining these shared amenities.

On a monthly basis, you will pay a fee to the homeowners association. They will use that fee to pay for cleaning, maintenance, upgrades, and importantly, insurance.

But that payment only covers shared areas of the condo. That includes the building structure and common areas. As a condo owner, you are responsible for insuring your unit. 

The homeowners association rules will usually outline the type of insurance you need to have in place. They want to ensure that every unit is fully insured at all times.

If you are buying your home with a mortgage, your lender will also have insurance requirements. You will likely need to have this insurance in place before closing on the purchase of the condo.

So, is condo insurance required? Absolutely!

What Does the HOA Policy Cover?

Insuring a condo is very different from insuring a house. 

When you insure a house, you need to buy a policy that covers the inside and outside of your home. It needs to provide protection for damage to the roof, walls, and siding, as well as the interior of the property.

However, when you live in a condo, much of this is covered by the HOA’s policy. This is also called a master policy.

They take responsibility for insuring the common areas. But that doesn’t mean that your financial liability is over.

Let’s look at an example. Imagine that the condo roof is damaged during a hurricane. The HOA makes a claim to the insurer and the repairs are carried out.

The deductible is $5,000. This may be split between the individual condo owners. So if there are 20 condos, each condo owner will have to pay $250 each.

It’s important to get familiar with your condo’s HOA rules and insurance agreements before you buy. This will help you to see exactly what you are liable for in the event of an insurance claim, and will help you to avoid any nasty surprises.

Three Types of HOA Insurance

Condo insurance laws vary from state to state. Generally, HOA management can choose one of three types of insurance:

All-in

This provides a high level of protection for the condo’s shared amenities and structures, as well as the fabric of your condo. It may even cover the changes you make to your condo, such as your wall coverings and tile.

Bare Walls

This type only covers the shared areas and the fabric of the building. It does not provide coverage for anything inside your condo.

Single Entity

This type of policy sits somewhere between an all-in and a bare walls policy. It gives you some insurance for the interior of your home and includes built-in cupboards and some fixtures.

When you are planning to purchase a condo, get familiar with their HOA insurance. This will help you to ascertain the right level of cover you need for your condo.

What Does Condominium Insurance Cover?

In insurance-speak, condo insurance is also known as an HO-6 policy.

Your HO-6 policy is there to cover everything that is not covered by the HOA’s master policy. Typically, this will include any non-standard fixtures in your home and all its contents.

It will also cover you in the event of injury to you or a guest in your condo.

If your condo gets damaged in a fire, the HOA policy will normally cover the building damage. But your clothes, personal belongings, and accommodation expenses? They’d come out of your HO-6 policy.

How Do I Work Out Liability?

One of the confusing things about condo insurance is that different parties are liable in different parts of your home.

For example, if you have guests over and they injure themselves on a poorly maintained communal stairway. In that case, the HOA is liable.

But what if they slip and fall in your kitchen? That’s when you would be liable, and need HO-6 condo insurance to protect you.

A standard condo insurance policy will include personal liability coverage of up to $300,000. 

How Much Coverage Do I Need?

This will vary from home to home and person to person. 

Your insurance company will help you to calculate how much coverage you need. They base their calculations on the square footage of the condo and the cost of kitchen and bathroom finishes.

They will also help you to go through all your personal possessions and calculate the cost of replacing them. You may wish to purchase an additional cover that will pay out the cost of new replacements, rather than a depreciated value.

The Importance of Condo Insurance

We hope that this article has definitively answered the question, ‘Do I need condo insurance?’

Whether you want to protect your possessions, or yourself, condo insurance is essential. The master policy will usually only cover the shell of the building – everything inside is your responsibility. For your peace of mind, you need to get the right condo insurance policy.

At Gessel & Associates, we’ll help you to negotiate the tricky world of condo insurance. We’ll go through your HOA bylaws and talk to you about your needs. We’ll help you find the perfect policy for your family.

Contact us today to talk more about condo insurance.

More than five million American households live in condominiums or co-ops. Condo life offers some nice perks, like common areas that are maintained by the HOA. You’ll never have to mow a lawn again.

Condo owners also appreciate that those common areas and the building itself are likely insured through the condominium association’s master policy. But thinking this coverage applies to your personal property is a mistake.

Condominium insurance is like a homeowners policy for condo owners. It covers your personal belongings and so much more. The right policy will fill in the gaps left by your HOA’s master policy.

Here are 10 reasons why condo insurance is a necessity for every condo owner.

1. Coverage for Condo Contents Damaged By Fire or Natural Perils

Take a look around your condo at all of your personal belongings. Your electronics, your furniture, your room decor, your clothing, and everything else.

Now imagine that it’s all gone up in flame.

Condo insurance will help you bounce back from damages caused by fire, wind, and other incidents where your life was turned upside down by natural peril or Mother Nature.

2. Coverage for Damage to Your Individual Unit

While covering your personal belongings is likely your top priority, don’t forget that you are also responsible for physical damage to the interior of your individual condo unit. If a fire or storm causes damage to your interior walls, for example, the condominium association’s master insurance policy is not going to help you.

3. Coverage for Lost or Stolen Property

If thieves break into your condo unit and rob you, you might be out of luck if the local police can’t find the culprits and recover your items. But a condo insurance policy can protect you in this exact scenario by providing a payout for the approximate value of the stolen items.

Some insurance policies may also offer coverage for lost items as well.

4. Coverage for Personal Injury and Medical Expenses

If a resident slips and falls on the sidewalk outside the condominium, the condo association’s master policy may step in to assist with any medical bills due to personal injury.

But if an injury happens to you or a family member inside your own condo unit, you will be left to manage the situation on your own. Having your own condo insurance can help you pay any unexpected medical bills so you can pick yourself up and move on.

5. Coverage for Personal Liability

If a guest of a resident is injured while at a group event on the back patio or someone has personal property damaged near the community swimming pool, the HOA’s insurance policy may assist in the event of a lawsuit or legal settlement.

But if someone slips and falls inside your condo unit? You’re going to want personal liability coverage to keep the incident from setting you back or leaving you in financial ruin.

6. Coverage for Temporary Relocation

If your condominium becomes uninhabitable due to a major incident like a fire, you might need another place to live while the building is repaired.

But condo insurance, sometimes called HO-6 insurance, can be customized to include coverage for temporary loss of your living space. If you need to stay at a hotel until the repairs are done, your insurance provider may foot the bill or reimburse you for your expenses.

7. Coverage for Loss Assessment

Some insurance policies include a cap as to the maximum amount of damage the insurance provider will cover. It’s possible your HOA’s master insurance policy includes coverage with a cap like this.

If an incident happens where the total damage to the entire building exceeds the cap on the policy, some amount of damage may become the responsibility of the residents.

Your personal condo insurance policy can include coverage for loss assessment, which will be the amount you are responsible for paying in the event that the HOA’s insurance reaches its limit.

8. Coverage for Water Damage

Flood damage to the exterior of the building or to a common area may be covered by your association’s insurance, but if your condo is on the ground floor and the flood makes its way into your unit, you will once again want your own coverage.

You may also want to talk to your insurance provider about making sure other types of water damage within your unit will be covered, like damage from a leak or a clogged pipe.

9. Coverage for Betterments and Improvements

One of the great things about living in a condo compared with an apartment is that you have the ability to make alterations or improvements to the inside of your unit without having to talk to a landlord.

That new carpet you put down in the living room was a big investment. You may have also paid a pretty penny for those new light fixtures or kitchen appliances.

A good condo insurance policy will cover these additions so you can renovate with confidence.

10. Coverage to Protect Your Equity

When you first purchase a condominium, you’ll have a large mortgage or loan to pay off in most cases.

As you pay your loan down, you’ll gain more personal equity in the property over time. Eventually, the condo will be truly yours. Condo insurance protects against specific incidents but also ensures you won’t lose equity built up over years due to one bad event.

Secure Your Future With Condominium Insurance

As you can see, there are more than a few types of damages that your HOA’s master insurance policy will not cover. If you want to maintain your peace of mind and ensure you can bounce back after an unexpected event, you need to carry your own condo insurance.

Gessel & Associates offers comprehensive condominium insurance and homeowners insurance designed for your family and lifestyle. Contact us to discuss an appropriate solution.

More than 3.4 million homeowners in the US don’t have homeowner’s insurance. If you don’t have insurance, it’s up to you to cover the cost of any theft or damages when disaster strikes.

Are you wondering what the difference is between mortgage insurance and homeowners insurance? There are many coverage options for insurance, and it can sometimes get confusing. Here’s some helpful information about your coverage and protection options.

What Is Mortgage Insurance?

Mortgage insurance might sound like something that will help you if you can’t make monthly payments, but it’s not. It protects your mortgage lender if you default on your mortgage. The lender also takes your property as collateral, as extra protection for them.

You must have this insurance coverage if you have a Federal Housing Administration (FHA) Loan. That’s a home mortgage insured by the government and issued by an approved lender. Mortgage insurance is also required if you have a high-ratio mortgage.

A high-ratio mortgage is when your down payment is lower than 20 percent of the total cost of your new home. In this situation, you need to pay for mortgage insurance because you are a risky client for the lender. The cost of your mortgage insurance takes your down payment and credit score into account.

It’s good to clean up your score before applying for a mortgage. With FHA loans, the insurance cost is a set amount. Otherwise, the rates can vary from 0.5 percent to 1.5 percent of the loan amount per year. 

If you become ill and can’t make your payments or lose your job, mortgage insurance doesn’t help you out. It doesn’t protect you if the value of your home drops.

If you want to avoid paying a mortgage insurance premium, there are two things you can do. You can sidestep the need for mortgage insurance by increasing your down payment. You can avoid this insurance cost if you qualify for a conventional, non-FHA mortgage.

How Does Homeowner’s Insurance Work?

When you compare mortgage insurance vs. home insurance, the main difference is who the insurance protects. Mortgage insurance protects the lender, but homeowner’s insurance protects you. It covers the value of your home in the event of a loss.

Your homeowner’s insurance will have some personal liability coverage which is financial protection. This insurance protects you if you’re sued for injury and/or property damage to another person. It also protects your personal property and the contents of your home. 

Your homeowner’s insurance also protects the lender. If you have a mortgage, your lender accepted your home as collateral. The lender will want you to have homeowner’s insurance, to protect their interest in your home.

If you own your home and don’t have a mortgage, you don’t need to get homeowner’s insurance, but you might lose your assets if catastrophe strikes. You would be exposed to personal financial risk and could lose everything if you’re successfully sued.

Coverage and Protection Options

The right insurance means the difference between losing everything or being covered. It’s important to take the time to do your research. Find a trusted independent insurance agency to help you get the coverage you want.

Here are some of the insurance categories to consider when you’re making your plan.

Personal

This broad category of insurance includes home and auto insurance. It also offers many other options to protect you and your personal property.

If you’re a renter, you’ll want a policy to protect your personal belongings from damage. The landlord’s insurance will only cover their assets. If you own a boat or a recreational vehicle, specialized coverage is available.

Your lender may want you to have hazard insurance if you have a mortgage. Generally, this coverage protects your home from damage or destruction by vandalism, fire, and natural disasters or hazards.

Business

You want to protect physical business assets and have liability coverage that protects your operations from various risks. There are many different business insurance products to select from. Each business is unique, and you want coverage tailored to your needs.

Directors and officers’ liability insurance protects them from decisions they make on behalf of your business. Workers’ compensation insurance protects your employees against losses from illness or injuries at work. It’s required in most states.

Farm

Insurance for farmers is complex because often, your farm is both your home and your livelihood. You can find policies that cover both. You can obtain homeowners insurance separate from the policy that insures your equipment and farm buildings. 

Farm liability coverage is financial protection against claims made by a third party for injury and/or property damage. Some insurance covers you against accidental environmental damage from chemical spills or runoff. Other coverage will ensure your livestock and contents, including grain or hay.

Life

When you want your family protected if the unexpected happens, life insurance provides the coverage you need. The three main types of life insurance are term life, whole life, and universal life. Discuss each option with your insurance agent to discover which type is best for you. 

Premiums will depend on your age and health at the time you apply. Life insurance is a major part of estate planning, so you might want to obtain advice from your financial advisor.

Health

Insurance coverage to protect your health varies, but it usually covers most doctor and hospital visits. You can obtain insurance that covers prescription drugs and wellness specialist visits and medical devices in some cases. 

Vision and dental policies cover routine examinations and treatments. They may cover the cost of new glasses and may have some contact lens coverage. You may obtain insurance for dental procedures and cleanings and some portion of major work you might need. 

Home Insurance Protects the Homeowner

If you’re looking for home or mortgage insurance, you’ll want to find a company that’s focused on your specific needs. As an independent insurance agency, we work for you, not the insurance company. That gives you the power of choice. 

Contact Gessel and Associates for the solutions you need with the quality service you deserve.

Did you know that a full coverage motorcycle insurance policy costs an average of $1 173 per year?

Despite the cost, a good motorcycle insurance plan is one of the most essential safety tools on the road. However, choosing the right insurance policy can be overwhelming due to the many options. Thus, before going for a specific provider, you need to analyze your options.

Motorists and their motorcycles are vulnerable to crashes or damages. But an insurance policy can help a rider and bike get back to normal quickly if the worst should happen. Read on this guide to learn everything about a good insurance policy.

Consider the Motorcycle Insurance Coverage

The primary aim of insurance policies is to minimize losses when unfortunate events covered by the policy occur. Thus, what motorcycle insurance coverages should be your top priorities?

In other terms, you need to do some analysis before choosing a motorcycle insurance policy. You need to know what a good insurance policy should include.

First, you should figure out the options available. Here are some of the motorcycle insurance coverages you can consider that can take care of third party liability as well as your own damages:

Liability Coverage

This is the insurance coverage that will cover all damages a motorcycle rider can cause to someone else’s body or property while riding their bike.

This insurance coverage is required for any type of vehicle on any paved road across the United States. However, each state has minimum coverage that every rider must buy. But due to ever-increasing vehicle prices, choosing appropriate coverage limits is essential.

Comprehensive and Collision Coverage

Comprehensive insurance coverage is designed to repair or replace your bike in the event of weather damage, theft, fire, and vandalism. Collision coverage, on the other hand, is intended to cover repair or replacement in case your bike is totalled by a crash.

The cost of a policy will depend on the motorcycle’s value, though every insurance company will have its own way of pricing. The comprehensive and collision coverage is usually cheaper for motorcycles since bikes generally cost less than larger passenger vehicles.

However, when going for a comprehensive and collision insurance policy, ensure that the coverage will pay out the exact replacement value for your bike.

Medical Coverage

This coverage is designed to cover medical bills on an injured motorcycle rider. The coverage does not count who is at fault as long as the rider is hurt.

Some states may require motorists to have this coverage. However, the insurance cover does not pay a considerable amount of money. Thus, you will still need personal insurances in case of severe injuries.

Full Coverage

This insurance policy will potentially cover everything, from liability to comprehensive and collision. It is thus essential to know what full coverage does before obtaining the cover. You also need to avoid the insurance companies that might use the term to sell a substandard policy.

Consider Motorcycle Insurance Price

Once you have determined the kind of insurance coverage you need, you need to proceed and find an insurance provider who matches your needs and budget.

The amount you pay for motorcycle insurance will depend on the type of coverage and the limits of coverage you have requested. The more coverage you get, the more the insurance will cost.

In addition to that, the insurance price will vary depending on the state. Some states will only require motorcycle riders to acquire minimum coverage.

The cost will also depend on the length of the riding season. For instance, riders with shorter riding seasons will pay a lower premium.

You need to do some research to determine which insurance provider matches your needs. However, you need to be cautious about the lowest-priced policy. The coverage shouldn’t be compensated for the price, as it would defy the original aim of insurance.

Select the Insurance Provider

Now that you have a price bracket in mind, it is time for you to select an insurance provider.

Since major insurance providers have an online presence, you can visit their site and purchase your insurance policy. It is simple, just like visiting an e-commerce store and buying your products.

However, the online presence of an insurance provider is only viable if the provider can offer pre-purchase and post-purchase support. But many providers have smoothened users’ journey, making the overall users’ experience comfortable.

However, the insurance sale is not like other products. An insurance provider should not focus on after-sale service but on a transparent, convenient, and hassle-free claim settlement process.

Thus, you should check users’ reviews to get an insight into the brand.

Insurance Purchase and Renewal

After purchasing your insurance cover, your policy document will be sent to your registered email. Also, remember to timely renew your policy and ensure you don’t go without coverage.

Finally, remember to review your requirement when renewing your coverage to satisfy your needs.

Choose the Best Motorcycle Insurance Policy Today

Motorcycle insurance, especially the liability portion, is a need and a requirement in the United States. Apart from obliging to the law, you need to stand out as a responsible owner and operator of a motorcycle.

Are you looking for motorcycle insurance?

At Gessel and Associate Insurance Agency, we are a trusted source for quality and affordable insurance covers. We offer consultative services to clients across multiple states in the US. Whether you need customized coverage for your business or family protection, we have the solutions you need.

Contact us today and request a free consultation.

According to survey results, 60% of millennials who rent or lease their homes don’t have renters insurance.

One of the reasons was survey participants didn’t understand how renters insurance works. Another factor was a majority of people thought their landlord’s insurance would cover them. 

Finally, 29% of respondents assumed renters insurance costs several hundred dollars more than it does. 

Have you yet to take out renters insurance? Maybe because you’re not sure how it works, whether it’s necessary, or what it costs?

If you’re wondering “what is renters insurance and do I need it?” Keep reading this guide to renters insurance to discover why it’s a vital insurance type to hold. 

What Is Renters Insurance For?

Wondering what is renters insurance? A renters insurance policy, also known as tenants insurance, offers some of the benefits of homeowners insurance, but without coverage for your dwelling.

The purpose of renters insurance is to cover you in a similar way to homeowners insurance. However, because you don’t own the dwelling you’re renting, coverage doesn’t extend to the physical structure.

What Does Renters Insurance Cover?

The exact coverage you’ll get will depend on the individual renters insurance policy. However, renters insurance usually covers three main areas. These are personal property, liability, and emergency/alternative accommodation expenses. 

Personal Property

Like homeowners insurance, a typical renters insurance policy usually covers personal property. 

This includes things like electronics, furniture, jewelry, and clothing. Some basic renters insurance policies won’t cover certain personal items if they are above a specific value. Such as highly valuable art, collectables, and jewellery.

In this situation, you can choose to add on additional coverage for these through a rider or floater. 

However, for a lot of people, a basic renters insurance policy is enough to cover their personal belongings. If unforeseen events damage your home’s contents, you should be able to claim for most of the lost items providing they are of standard value. 

Another big perk of renters insurance is it usually covers items even if they were stolen or damaged away from your home. For instance, if you take your laptop on a trip and it gets stolen, you might find that you can claim for it through your renters insurance policy. 

Liability

Another important area that a renters insurance policy covers is liability. The best renters insurance policies cover damage and injury to both third parties and property.

For instance, let’s say someone visits your rental home. They then trip on a cord across the hallway, fall, and break their ankle. You’ll be covered against any liability. 

This extends to any legal defense costs you incur up to the value of your policy.

The best renters insurance should also include no-fault medial coverage. This allows anyone who suffers injury on your rental property to send their medical bills directly to your insurer. Without having to open a lawsuit. 

If someone’s personal property is damaged in your home (ie. someone comes to stay and your dog chews up their $1,500 handbag) your renters insurance policy will usually provide coverage for that. 

A renters insurance policy can also cover you against damage to neighbors’ properties that you might accidentally incurr.

For instance, maybe one of your kids accidentally kicks a ball astray. It then breaks the neighbor’s window. The best renters insurance policies will cover you for that.

Additional Living Expenses (ALE)

Besides offering coverage for personal possesions and liability cases, renters insurance often includes additional living expenses (ALE) coverage. 

This gives you financial protection and coverage against expenses you might incur if an uninsured distaster requires you to seek alternative accommodation. For instance, if your rented home is flooded, or becomes unlivable through something like smoke damage, mold, etc, your renters insurance may cover costs associated with finding alternative accommodation while the rental is restored to a livable condition. 

This usually includes things like hotel bills, restaurant meals, and temporary rental costs. Most renters insurance policies will cover the full difference between your usual living expenses and temporarily inflated ones. 

For instance, lets say you usually spend $4,000 on rent and groceries. But you have to suddenly spend double this because you’ve been displaced from your rental. If so, ALE will typically cover the difference. 

There is a cap on this however. Most policies have a either a total dollar value limit or a time limit on ALE payments. 

Do I Need Renter’s Insurance?

If you’re wondering “do I need renters insurance?” the answer is yes. Renters insurance provides you with a valuable safety net against unforeseen disasters. As well as liability cases and losses/damage to personal property. 

It provides the same security that homeowners insurance does, but at a fraction of the cost. What’s more, policies are tailored to suit renters. 

Speaking of costs, did you know that renters insurance costs far less than most people think? In Ohio, the average renters insurance premium is less than $170 per month. This is substantially lower than homeowners insurance premiums, which clock in at $875 on average.

At the same time, you will get a lot of the same benefits that you would if you were paying for homeowners insurance. 

The reason for the big price difference is that your renters insurance policy won’t have to cover the physical structure of your rented home. Thist is the landlord’s property and responsibility. 

Are You Looking to Buy Renters Insurance?

Renters insurance providers a high level of security and coverage for comparatively low premium costs. Unfortunately, a lot of people don’t really understand the answer to “what is renters insurance.” Because of this, they don’t realize how valuable and vital this insurance type is. 

Just because you’re renting doesn’t mean you shouldn’t have financial protection should things go wrong. 

After reading this guide to renters insurance, are you looking to buy renters insurance for yourself?

If so, we can help. Contact Gessels and Associates today to discuss your needs and we’ll help you find the best renters insurance for your needs and budget.

Condos have been growing in appeal to the point that Americans now own around 17 million condominiums. A variety of factors are driving the trend away from renting and toward condo ownership. The decision between renting an apartment or home and buying a condo, however, can be challenging. 

One of the most powerful but often overlooked considerations is the question of insurance. Renters insurance and condominium insurance are not the same. Understanding their differences can play a key role in helping you determine what living situation is best for you. 

Keep reading now to learn more about these types of insurance and what they can tell you about the benefits and drawbacks of renting vs getting a condominium.   

Renter’s Insurance: The Essentials

Put simply, insurance is protection against loss. Standard renters insurance policies protect you against:

• The loss of personal property
• Liability for injuries and the resulting medical bills
• The expenses you may incur if your apartment becomes unlivable 

Personal Property 

Renters insurance protects your belongings, whether they are with you, in your vehicle, or in your apartment or home. Coverage applies to everything from cash to furniture to clothing to appliances. 

So, for example, if your purse was stolen from your car or while you were on vacation, your insurance would typically cover the loss. If your upstairs neighbor floods their bathroom and the resulting water leak ruins your couch, that would also be covered. 

Renters can choose Actual Cash Value or Replacement Cost coverage for their policy. With an Actual Cash Value policy, your insurer will pay you whatever the value of the lost item was at the time it was lost, stolen, damaged, or destroyed. If you have a Replacement Cost coverage, your insurer will pay you what it costs to replace the item with a new item of equal quality. 

For instance, say your couch cost $1,500 new but had depreciated and was worth only $800 at the time of loss. A policy with Actual Cash Value coverage would pay you the $800 while Replacement Cost coverage would pay out the full $1,500. 

Liability

Liability coverage protects you if someone is injured while in your apartment or if you accidentally injure someone else while on their property. It will pay medical bills and may cover some legal costs. 

Loss of Use

In the event of a catastrophe, you may not be able to live in your apartment for some time while repairs or other arrangements are made. Your renters insurance will pay for your hotel room, some of your food, and other resulting expenses in the meantime. 

Landlord Coverage vs Renters Coverage

Renters coverage is often required by landlords when you rent or lease a unit. This is because landlords hold insurance on the overall property, but their coverage does not extend to personal belongings nor will they cover anything you may be held liable for either. 

Importantly, landlords’ insurance does cover the interior of your apartment or home. This includes:

• Fixtures
• Walls, floors, and ceilings
• Appliances

In the event that a disaster such as fire destroys your apartment, your landlord’s coverage will rebuild and repair your apartment. They will give it back to you in the same condition it was in when you moved in. Your insurance needs only to cover your personal belongings, furniture, and displacement expenses. 

Renters Insurance Cost

Renters insurance tends to be very affordable. A basic policy often costs between 50 cents and $1 per day. On average, that works out to between $15 and $30 per month or $180 to $360 per year. 

The exact cost of a policy varies, however. Actual costs can depend on:

• Your state, city, and neighborhood
• The size of your apartment complex or home
• What security features you have in place
• Your credit score
• Personal choices, such as owning dogs
• Your choice of a high-deductible or low-deductible plan

Your possessions can also influence your costs. If you own high-value items whose costs exceed standard coverage limits, you will need special riders to fully cover them. This can increase your overall cost.

Condominium Insurance: The Essentials

Like renters insurance, condominium insurance covers your personal belongings, basic liability, and loss of use expenses. Condo insurance is fundamentally different from renters insurance, however, in that it also covers some of the interior physical structure of your condo. This includes:

• Fixtures
• Walls, flooring, and ceilings
• Appliances

Renters can rely on their landlords’ insurance to cover these things. When you buy a condo, however, you assume responsibility for everything within the “box” of your condo. This can include electrical wiring, piping, and other facets that many condo owners overlook or take for granted. A typical condominium owners policy provides coverage for the “drywall in” although this is determined by the association bylaws, and will need to be reviewed by your agent.

HOA Coverage vs Condominium Insurance

Your Homeowners Association or condo management must hold a general insurance policy on the whole of your building or property. Many condo owners assume that this coverage is the equivalent of landlords’ insurance in a renting situation. That is, they assume it will pay to restore their condo to its initial or default state in the event of a disaster. 

This is not true. 

HOA policies insure communal areas of a property. This includes areas like:

• Hallways
• Clubhouses
• Fitness or pool areas
• Parking lots

They also insure the shared exterior portions of condo buildings such as roofs. They do not cover any interior portion of individual condos. This means that they do not cover:

• Walls
• Ceilings
• Floors
• Anything attached to, behind, underneath, or above those areas

Condominium insurance, then, is more like homeowners insurance than renters insurance.

HOA Policy Shortfalls

Condo owners must also take into account the fact that HOA policies may experience shortfalls. In the event of a major disaster, HOA policies may top out at less than what it takes to fully restore a building. For example, total repair bills after a major storm may be $1.5 million dollars but the HOA’s policy may pay out only $1 million. 

When this happens, individual condo owners must make up the difference. To avoid paying this out of pocket, condo owners may need extra riders or other supplemental coverage.

Condominium Insurance Costs

Since condo insurance must cover so much more than renters insurance, it costs more to buy. As with renters policies, both location and policyholder attributes and choices can impact total cost. 

In general, basic policies start at around $400 per year and provide:

• $25,000 in personal belongings coverage
• $20,000 in walls and floors coverage
• $300,000 in liability coverage

Policies scale up from there, with many condo owners spending $450 to $600 annually on insurance. For large or high-end condos with expensive finishes and fixtures, you may need a policy in the $1,100 to $2,400 range to achieve full coverage. 

Condominium Insurance vs Renters Insurance  

The differences between condominium insurance and renters insurance underscore the key differences between condo ownership and renting. 

Renting is ideal for individuals and families:

• Who don’t plan to stay in the same area very long
• Looking for minimal responsibilities and costs 
• Who do not view their living situation as a long-term investment

As opposed to renting an apartment, getting a condo:

• Costs more upfront
• Costs more to maintain and insure 
• Places more demands on the resident
• Makes it less easy to pick up and move 

But, as their insurance requirements emphasize, condos do offer the opportunity for property ownership. They enable residents to enjoy many of the benefits of apartment living while also cashing in on the advantages of home equity that homebuyers have access to. 

Taking insurance issues and costs into account when choosing between an apartment and a condo can give you a clearer idea of your:

• Assets
• Priorities
• Best options 

How to Get the Best Insurance Quotes  

Make the best decisions by starting with the most accurate insurance quotes. First, look at the most common risks and insurance solutions to see where you may need extra coverage.

This can help you determine what you need in a policy. It can also make it easier to conduct apples-to-apples comparisons between condo and renters policies or between policies from different providers. 

Second, take a good look at the landlord and HOA policies for properties you are interested in. This can help you understand where there are coverage gaps and further inform your policy choices.  

Third, conduct an inventory of your belongings. This will show you:

• What you own that is not adequately covered under standard coverage limits
• How much additional coverage you need
• What kind of documentation you need to get that coverage (if any)  
• What items you own may need special storage or other considerations to properly protect them 

Fourth, talk to an experienced agent about your needs. While modern technology makes it easy to shop online, experienced agents can help you identify solutions and powerful options you may not be aware of or find on your own. Their guidance can help you get the best quotes, the best coverage, and the best results.  

Learn More

Learn more about renters insurance, condo insurance, and getting the protection you need today. Check out our blog for more great information on choosing the right insurance for your needs.

It’s time to finally kick back and relax and that means you’re planning your next vacation. No matter where your travel plans take you, traveling via RV is a great way to take in all of the beautiful scenery and spend quality time with friends and family. But before you pack up the RV and pile in, it’s important that you consider full-time RV insurance. 

Why is RV insurance so important? Unlike your regular vehicle, your RV also acts as your shelter and home for an extended period of time. For this reason, purchasing RV insurance is much more necessary than you might think. 

What does RV insurance cover? Although you can customize your coverage, RV insurance does cover a variety of things that you’ll want to consider. Continue reading below to learn all the essential reasons why you need RV insurance. 

It’s Required

The first, and most important, reason to purchase RV insurance is that it’s most likely required. This will depend on the state you live in, but like your vehicle, it could be required. Do keep in mind that each state is different, however, so you’ll want to check with your local DMV or RV insurance provider to determine if it’s required and if so, what type. 

In most states, a minimum of liability insurance is required. 

Towable RVs

It’s also important to note that towable RVs might have different insurance requirements. Because these RVs are towed and not driven, your state might not require you to have insurance. However, you need to contact your local DMV to confirm the insurance requirements before moving forward. 

Liability Insurance

If you were to be involved in an accident which is your fault, then you need to have liability insurance. Liability insurance will cover medical costs and costs of damages to the other person’s vehicle. As mentioned before, this is required in most states. 

If you’re driving an RV and don’t have this coverage, then you risk being sued by the other driver and having to pay for these costs out of pocket. 

Uninsured Motorists

If you’re involved in an accident and the other driver doesn’t have insurance, then this type of coverage will cover the cost of damages caused by the other driver without insurance. This type of insurance will also come in handy when the other driver’s insurance doesn’t cover all of the damages. 

Medical Payments

Your insurance isn’t only there to cover the medical costs of other drivers. Your insurance is there to protect you before anyone else. If you or any other passengers in your RV suffer from injuries while in the vehicle, then you’ll want to have insurance to cover medical bills and lost wages. 

Pet Coverage

Families love to take their pets with them on their RV trips. Bringing the entire family along is a great way to bond with one another, so why not take your pets! If you’re someone who loves to bring your pets on the RV with you, then you’ll want to consider adding pet coverage. 

If an accident of any kind were to happen and your pets were to become injured, this type of insurance will cover the medical costs.

Emergency Expense Coverage

Imagine this: you’re in another city or state riding in your RV, enjoying your vacation. It’s the last thing you expected to happen, but you’ve been involved in an accident and you’re far away from home. Your RV was your accommodations, but now it’s undrivable and must be towed. 

Where do you go? You’re now forced to pay out of pocket for hotel accommodations, but wait! You don’t have to. 

When you have emergency expense coverage, you’ll be reimbursed for emergency expenses such as transportation and hotel stays. 

Fire, Theft, Leak Coverage

Here are a few things you might not think about when considering insurance for your RV. You also have the option to purchase add-ons for fire, theft, and leak protection. Remember, your RV has many more electrical components to it than your regular vehicle and requires a lot more maintenance. 

Fire Protection

Not only do RVs have a large engine, but they also have a hot water heater, an electrical system for the appliances, and more. For this reason, it’s beneficial to have fire protection. You’ll also be inside your RV much more than you would inside a regular vehicle. 

Whether you’re cooking or charging your phone, you’ll be using the electrical system on a daily basis, so don’t forget to protect yourself.

Theft Protection

Your RV also holds much more personal items than your normal car would. Inside your RV, you’ll have your luggage full of clothes and other personal belongings. 

You might have a television and other expensive electronics. For this reason, it’s also important to consider adding in theft protection. When you’re away from the RV site for the day, protect your family from a possible break-in. 

Leak Protection

The last thing to consider is add-on protection for possible leaks. Again, your RV has many more possibilities for leaks than a car. Your RV most likely has a shower, a toilet, sinks, and an entire plumbing system. 

Just like you might get a leak in your home, you could get a leak in your RV too. Protect yourself with the right type of insurance. 

Could You Benefit From RV Insurance?

Do you believe you could benefit from RV insurance? After reading through this guide, we hope you now know how important it is to protect your RV and your entire family. At Gessel and Associates Insurance Agency LLC, we’re an insurance company that understands your needs.

To learn more about RV insurance coverage, contact us today. 

The U.S. Coast Guard’s 2020 Recreational Boating Statistics Report found that the total number of accidents increased by 26.3 percent, costing about $62.7 million dollars in property damage.

If you own a watercraft of any kind, you know accidents can happen. The question is: are you covered if they do?

Watercraft insurance is what can guarantee that you will get the help you need if an accident occurs. Let us take a closer look at what boat insurance is and what it covers.

What Is Watercraft Insurance?

Watercraft insurance is an umbrella term, under which you can find three different kinds of insurance: boat insurance, yacht insurance, and personal watercraft insurance.

Watercraft insurance covers damage to vessels that have a motor with a horsepower of at least 25 miles per hour.

Some policies might include watercraft liability coverage, which covers bodily injuries to people other than the boat’s owner and family. There are some insurance options that require you to purchase this liability coverage in addition to the regular boat insurance.

The size of your boat will dictate the coverage you purchase. Boat insurance is for vessels that are under 197 feet, while anything that is at least 30 feet long is a yacht. Personal watercraft insurance is for vehicles such as Jet Skis, Yamaha Wave-Runners, and other surface-skimming vehicles.

What Does Boat Insurance Cover?

If you have a vessel under 197 feet, you need boat insurance. There are two basic sections to the typical yacht or boat insurance policy: physical damage and liability.

Physical Damage

You can expect the physical damage part of the insurance to pay to repair the damage the accident caused on the boat. The kind of policy you want is one that provides coverage for all risks so that even if the exact cause of the damage is not listed, you will still have coverage.

Some common causes of damage that policies cover include:

• Weather concerns like wind, lightning, rain, hail, and wave action
• Damage or loss from vandalism or theft
• Fire
• Collisions with submerged objects, floating objects, docks, or other boats

On top of that, you want to consider policies that protect your boat while on land, as well. There are also personal property and towing coverage, which help cover any personal property damaged or lost in the accident. Towing coverage includes emergency assistance like the delivery of parts, oil, or fuel.

Liability

This is an equally important part of the boat insurance policy you choose. If you cause an accident that injures someone or that damages property, you need to have liability coverage.

Here is what it can cover:

• Towing of vessel
• Cleaning and containment of oil spills or other contaminants
• Crew coverage

Keep in mind that if you want to borrow someone else’s boat, you should verify that your liability coverage extends to that other boat.

What Does Yacht Insurance Cover?

There are many similarities between boat and yacht insurance, but insurance for yachts is usually more specialized.

Yacht insurance does not cover standard wear and tear, natural deterioration, damage by marine life, denting, marring, scratching, osmosis, manufacturer’s defects, electrolysis, defects in design, ice damage, or blistering.

The main parts of yacht insurance cover: hull insurance, and protection and indemnity (P&I).

Hull Insurance

The first thing you need to know about this is that hull coverage will be based on agreed value or AV. This is an amount that you and the insurer agree on when you create the policy and it usually reflects the cost of the yacht.

Hull insurance and protection is an all-risk, direct damage coverage that will pay out in full if there is a total loss.

There are also replacement and partial coverage.

Protection and Indemnity

Protection and indemnity is the broadest liability option. Longshore and harbor workers’ coverage is included, as well as Jones Act coverage of the crew.

Protection and indemnity will also pay for defense in admiralty court and any judgments against you.

What Does Personal Watercraft Insurance Cover?

If you have a recreational vessel that is a surface-skimmer, like a Jet Ski, then you need this kind of insurance. They do not tend to have coverage under homeowners insurance, and even if they are, the coverage it offers is not enough.

You can expect personal watercraft insurance to cover the owner of the vehicle as well as anyone they allow to use it for:

• Bodily harm to another person
• Bodily injury caused by an uninsured watercraft
• Property damage to a watercraft or a dock
• Theft
• Towing after an accident
• Legal costs if you are sued for causing an accident

There will be deductibles and liability limits and these can vary from company to company. Be sure to check before deciding on the insurance you want.

If you want to include more coverage, you can find add-ons for trailers and accessories. If you own more than one personal watercraft, you may also want to see if you can bundle your insurances.

Do You Need Watercraft Insurance?

Most states do not require watercraft insurance, but keep in mind that if you want to get a boat loan, you do need it. Many marinas also require it in their rental agreements.

The risk of injury and property damage while on the water is high, making insurance something vital. Even if you are not at fault in a collision or other accident, the legal fees you will have to pay to defend yourself can be much higher than insurance payments.

Give Yourself Peace of Mind

Get watercraft insurance and allow yourself to enjoy your time out on the water knowing you will have coverage if an accident occurs.

Contact us right now to speak with one of our insurance advisors.