Insurance Smyrna TN
Insurance Smyrna TN
Insurance Smyrna TN
Personal Insurance Smyrna TN
1. HO-1 — basic form – Insurance Smyrna TN
A basic form homeowners policy is just that — basic. It will usually financially safeguard against 10 named perils:
- Fire or smoke
- Hail and windstorms
- Damage from vehicles
- Damage from aircraft
- Riots and civil commotion
- Volcanic eruption
You can sometimes get coverage for the belongings inside your home in addition to the structure itself, but the items you want coverage for generally must be specified at the time you purchase your policy. Floods and earthquakes aren’t typically covered, and neither is your personal liability if you’re sued by someone who gets injured on your property.
HO-1 policies aren’t offered much anymore due to the affordability of other types of coverage that tend to offer more bang for their buck. Plus, mortgage companies don’t always consider this type of policy sufficient coverage for a home.
2. HO-2 — broad form – Insurance Smyrna TN
A broad form policy is a more common type of homeowners coverage. It covers all the perils in an HO-1 policy, plus:
- Falling objects
- Weight of ice, snow, or sleet
- Freezing of household systems like AC or heating
- Sudden and accidental tearing apart, cracking, burning, or bulging of pipes and other household systems
- Accidental discharge or overflow of water or steam
- Sudden and accidental damage from artificially generated electrical current
The HO-2 typically covers not only your home’s structure, but your belongings and sometimes even your personal liability as well. It’s important to note, though, that because the HO-2 is a “named peril” policy, any damage caused by events other than those listed on your policy will generally be excluded from coverage.
3. HO-3 — special form – Insurance Smyrna TN
The HO-3, or “special form,” policy is the most common type of homeowners insurance, namely because of its broad range of coverage and general affordability. It covers all the perils mentioned in the HO-2, or “broad form,” policy — but it also goes further than that.
Because an HO-3 doesn’t limit coverage only to named perils, it often can provide more financial protection than an HO-2. That means that your typical HO-3 form can financially protect you against any and all perils unless your policy specifically mentions them in the exclusions — and if it doesn’t, you’re covered.
The HO-3 policy typically insures your home and attached structures (like a garage or deck), as well as your belongings and your personal liability if you accidentally injure someone or damage their property.
What you are and aren’t covered for will depend on your specific policy, so it’s always wise to go over everything with your insurer. Earthquakes and floods are generally excluded from coverage on most HO-3 policies.
HO-3 versus HOB – Insurance Smyrna TN
During your homeowners insurance search, you may have come across something called an HOB policy. Nearly identical to the HO-3, a HOB form typically provides more coverage against water damage for coastal areas of the U.S.
A HOB policy may also cover things like garden tractors, boat and boat trailers, lawn mowers, and other similar accessories while they’re on your property.
4. HO-4 — tenant’s form – Insurance Smyrna TN
This policy type is specifically for renters, since it covers only belongings and personal liability — not the building structure, which the landlord buys insurance for. Belongings are typically covered against the same perils as an HO-2 broad form homeowners insurance policy.
An HO-4 policy, more commonly known as renters insurance, will also usually cover additional living expenses should you need to stay elsewhere temporarily while your apartment is getting fixed up.
5. HO-5 — comprehensive form – Insurance Smyrna TN
A comprehensive form policy is comprehensive, indeed, in that it often covers more perils than other types of policies. Just like a HO-3 form, a HO-5 is an open-peril policy form that can financially safeguard you against all perils unless your policy specifically excludes them in writing.
The following are typically excluded from coverage under a HO-5 policy:
- Earth movement (like an earthquake, landslide, or mudslide)
- Water damage
- Damage from or infestation of birds, vermin, rodents, and insects
- Neglect, deterioration, and general wear-and-tear
- Settling, shrinking, bulging, or expanding of your home’s foundation
- Your pets and other animals
- Mold, fungus, and rot
- Intentional loss
- War, government action, and nuclear hazard
- Ordinance or law
- Smog, rust, and corrosion
It’s important to note that you may still have coverage for some of these events if they happen suddenly and unexpectedly — that’s why we always advise that you speak with your insurer about your particular circumstances after a loss.
When it comes to your personal belongings, a HO-5 typically covers more perils than your average HO-3 policy, and your personal liability is covered up to the limits you choose. Even though an HO-5 policy is typically more expensive than a HO-3 (and may not be offered by as many insurers), it’s the broadest type of homeowners insurance coverage you can get.
6. HO-6 — condo form – Insurance Smyrna TN
This type of policy is designed specifically for condo owners and financially protects belongings and personal liability. An HO-6 policy, also known as condo insurance, also typically extends to the walls, floors, and ceiling of the unit too.
The same incidents covered under a typical homeowners insurance policy generally apply to HO-6 coverage too. The rest of the condo’s structure is usually covered by a policy purchased by the homeowner’s association.
7. HO-7 — mobile home form – Insurance Smyrna TN
The mobile home form is essentially the same as an HO-3, but is designed specifically for mobile or manufactured homes, which don’t fall under regular homeowners insurance coverage.
8. HO-8 — older home form – Insurance Smyrna TN
A HO-8 policy is designed to address specific concerns with coverage for older homes. The coverage details of a HO-8 are basically the same as a HO-3, but with special adaptations to better suit older homes, which may have different coverage needs than newer houses. Historic homes and registered landmarks usually carry this type of policy.
Auto Insurance Smyrna TN
Auto insurance is a contract between the policyholder and the insurance company. The policyholder agrees to pay the premium and the insurance company agrees to pay losses as defined in the policy.
Auto insurance provides property, liability and medical coverage:
- Property coverage pays for damage to, or theft of, the car.
- Liability coverage pays for the policyholder’s legal responsibility to others for bodily injury or property damage.
- Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
Most states require drivers to have auto liability insurance before they can legally drive a car. (Liability insurance pays the other driver’s medical, car repair and other costs when the policyholder is at fault in an auto accident.) All states have laws that set the minimum amounts of insurance or other financial security drivers have to pay for the harm caused by their negligence behind the wheel if an accident occurs. Most auto policies are for six months to a year. A basic auto insurance policy is comprised of six different kinds of coverage, each of which is priced separately (see below).
1. Bodily Injury Liability
This coverage applies to injuries that the policyholder and family members listed on the policy cause to someone else. These individuals are also covered when driving other peoples’ cars with permission. As motorists in serious accidents may be sued for large amounts, drivers can opt to buy more than the state-required minimum to protect personal assets such as homes and savings.
2. Medical Payments or Personal Injury Protection (PIP)
This coverage pays for the treatment of injuries to the driver and passengers of the policyholder’s car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.
3. Property Damage Liability
This coverage pays for damage policyholders (or someone driving the car with their permission) may cause to someone else’s property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures hit in an accident.
This coverage pays for damage to the policyholder’s car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $1,000—the higher the deductible, the lower the premium. Even if policyholders are at fault for an accident, collision coverage will reimburse them for the costs of repairing the car, minus the deductible. If the policyholder is not at fault, the insurance company may try to recover the amount it paid from the other driver’s insurance company. If the company is successful, policyholders will also be reimbursed for the deductible.
This coverage reimburses for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosions, earthquakes, windstorms, hail, flood, vandalism and riots, or contact with animals such as birds or deer. Comprehensive insurance is usually sold with a $100 to $300 deductible, though policyholders may opt for a higher deductible as a way of lowering their premium. Comprehensive insurance may also reimburse the policyholder if a windshield is cracked or shattered. Some companies offer separate glass coverage with or without a deductible. States do not require the purchase of collision or comprehensive coverage, but lenders may insist borrowers carry it until a car loan is paid off.
6. Uninsured and Underinsured Motorist Coverage
Uninsured motorist coverage will reimburse the policyholder, a member of the family or a designated driver if one of them is hit by an uninsured or a hit-and-run driver. Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for the other driver’s total loss. This coverage will also protect a policyholder who is hit while a pedestrian.
Business Insurance Smyrna TN
Starting a business is risky. About 20 percent of small businesses fail in their first year, and half don’t make it to a fifth year, according to data from the U.S. Bureau of Labor Statistics. You need help with your insurance Smyrna TN.
After starting a company, entrepreneurs face other risks that are important to the long-term health of their business. These include employees injured on the job, company cars damaged in accidents, damaged property, and other mishaps.
Here are seven types of property and casualty insurance a new business may want to look into. Some are required by law and others are optional:
Employees who are injured at work or suffer an occupational disease can receive insurance payments for their medical care and lost income through workers’ compensation insurance. Each state has different laws and requirements, so check with officials in your state for the workers’ compensation requirements in your state.
This type of insurance is normally paid through employee payroll deductions. It provides temporary cash benefits to workers who are disabled by illness or injury that happens outside of work, or because they became disabled through pregnancy.
Only five states offer state-funded disability programs: California, Hawaii, New Jersey, New York and Rhode Island. Qualification requirements vary by state, with some providing only short-term help for periods of disability, such as surgical recovery. New York requires employers to provide disability benefits to all eligible employees. Other states rely on the Social Security Administration, and employer or private disability programs.
BUSINESS OWNERS POLICY
Called BOP for short, a business owners policy bundles property and general liability coverage into one policy. The cost is typically lower than buying each form of coverage separately, and can be tailored to a company’s needs.
Package policies are created for businesses that face the same kind and degree or risk. Mid-sized businesses can get one type of BOP, while small businesses can get another.
They can include:
- Property insurance for buildings and contents owned by the company.
- Business interruption insurance for the loss of income from fire or other catastrophe that disrupts a business. It can include the expense of operating out of a temporary location.
- Liability protection to cover a company’s legal responsibility for the harm it may cause others. These can include causing bodily injury or property damage with defective products, faulty installations and errors in services provided.
BOPs don’t cover professional liability, auto insurance, workers’ compensation or health and disability insurance.
If your company provides vehicles for employees to use on the job, or they use their personal vehicles on company business, then you’ll need commercial auto insurance. It includes liability and physical damage insurance that covers both types of vehicle use at work and protects your business.
INSURANCE SMYRNA TN UNIQUE ISSUES
Along with a basic policy to cover fire and some weather-related damage to commercial property, you may live in a flood zone or area where hurricanes, tornadoes and earthquakes can occur.
For these you may want specific types of insurance, such as flood insurance. These can be expensive, and some states may require a minimum amount of coverage. Speak with a commercial insurance agent to learn more about what they’d recommend for your type of business and what is required in your area.
An umbrella insurance policy provides extra financial coverage for liability claims beyond the limits on existing policies. These include business, auto and an employer’s liability insurance policies.
Check with an insurance agent for advice on buying an umbrella policy. It may be more expensive than our next type of insurance policy to consider.
Excess insurance is a policy that provides extra financial coverage for liability claims beyond a stated limit on another policy. It can insure against certain hazards and is similar to an umbrella policy.
However, excess insurance can be cheaper than umbrella insurance. Before buying either, check with an insurance agent to see if the liability limits of your existing coverage are adequate.
Owning your own small business can be exciting and rewarding, but it can also be risky. Commercial insurance helps you manage the risks your business may face so you can focus on getting the job done.