(5-2020) Why should I increase the “Bodily Injury Liability” coverage on my policy?Mainly because of the expected increase in lawsuits for Bodily Injury Liabillity coverage. Prior to July 2020, if you were in an accident where you injured someone and you were found to be negligent, there was never a need for the injured person to sue you to get medical coverage, because they had Unlimited PIP (Personal Injury Protection) on their policy. Now that people can select lower PIP limits, they might run out of PIP coverage on their policy depending on the limits chosen and the extent of their injuries. If they still need money for care due to the accident, they will be able to sue you for those dollars. Your policy will pay for those lawsuits out of your Bodily Injury Liability coverage. This new scenario means it’s more likely a claim will be made against you and coverage will be provided up to the limits you chose under the Bodily Injury Liability coverage.
Once your Bodily Injury Liability limits are exhausted, you will be responsible to pay any further damages awarded in a lawsuit from your personal assets (i.e. bank accounts, future wages, etc.). It’s a real possibility and a great reason to increase your Bodily Injury Liability limits now. You should also consider purchasing an Umbrella Liability policy to protect your assets.
Back to Top(2-2020) Do I need special insurance coverage if I operate a business from my home?Yes. Most people are under the impression that their homeowners insurance will provide complete coverage for any type of business they operate from their home. Nothing could be further from the truth. All homeowners policies either exclude business operations from coverage or they have very strict limitations and/or exclusions which apply to any type of claim they may have which could be related to a business exposure. Most for profit businesses will not qualify for coverage and if they do the level of coverage that may be provided will be inadequate to indemnify the business owner for their losses in most situations. The best advice I can give regarding a business which is operated at your home is to read your policy and have a serious conversation with your agent to discuss what coverage might be available to you. Contact your agent for more information or contact our office and someone here will be happy to help determine your insurance needs for your home or your business. Back to Top(12-2019) Will there be more forms to complete as a result of the new No-Fault Reform law which goes into effect on July 2, 2020?Yes. Forms for Bodily Injury liability, PIP choice and Medicare Opt-Out will be required. Our interpretation is that signed forms will be required at the time of purchase of a new auto policy and each and every policy renewal for PIP Choice and Medicare Opt-Out. It is also our interpretation that a signed Bodily Injury form will be required at the time of purchase of a new auto policy and each and every policy renewal if an insured chooses Bodily Injury limits less than $250,000/$500,000. If an insured has Bodily Injury limits at or above $250,000/$500,000, a Bodily Injury form will never need to be signed. The new minimum Bodily Injury liability limits required by this law will be $50,000 per person/$100,000 per occurrence. Currently minimum Bodily Injury liability limits stand at $20,000/$40,000.Back to Top(11-2019) What choices will be available when the No-Fault reform law goes into effect in July of 2020 for medical coverage under my auto policy?The choices indicated in the No-Fault Reform law for medical coverage (Personal Injury Protection (PIP)) are as follows;
1. Unlimited
2. $500,000
3. $250,000
4. $50,000 – Medicaid Other Restrictions &/or Exclusions Apply
5. Medicare Opt-Out Other Restrictions &/or Exclusions Apply
6. Coordination of Benefits Exclusion – All members in Household Other Restrictions &/or Exclusions Apply
7. Coordination of Benefits Exclusion – Some members in Household Other Restrictions &/or Exclusions Apply
This law requires signed PIP Choice forms at policy issuance and each renewal period. In addition to the PIP Choice forms, the company may require other documentation depending on your selections. Contact us if you have additional questions regarding these major changes to the Michigan No-Fault Law.
Back to Top(3-2019) Why aren't floods and earthquakes covered by my homeowners policy?Flood and earthquake are both listed as excluded perils in all standard home policies. Earthquake coverage can be added to most policies or purchased separately. Flood coverage cannot and coverage is only available by purchasing a separate flood policy.
Flood and earthquake activity is more widespread than many people realize. Nine out of ten Americans live in seismically active areas. Since 1900, earthquakes have occurred in 39 states and caused damage in all 50. And if your home is located in a flood-prone area, you are 26 times more likely to suffer flood damage than fire damage.
Talk to your agent or contact us about special catastrophic policies for normally excluded conditions like floods and earthquakes.
Back to Top(1-2019) I rent out my basement. Are my tenants covered by my homeowners policy?No. Your property and the structure (the basement) are covered by your policy, as is your personal liability. However, the tenants' possessions and liability are not covered by your policy. Therefore, they may wish to purchase their own renters insurance. Whether you lease or rent, you should check with your agent to make sure you have the coverage you need. Most Landlords now require their tenants to purchase Renter’s Insurance for the benefit of the tenants as well as the Landlord should a claim occur.Back to Top