Category: Insurance

Do Mortgage Lenders Require Flood Insurance?

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Decades ago, flood insurance was somewhat of an afterthought as most of the United States was seemingly safe from water intrusion. Climate change, the increased frequency of hurricanes, and home construction in waterlogged areas have all changed how we view flood risk. 

Nowadays, every homeowner should at least consider adding flood insurance. However, there is some confusion as to whether mortgage lenders in and around Scottsdale, AZ have a mandatory flood insurance requirement.

Flood Insurance for a Home Loan?

If you are buying a home in an area with a high flood risk, the lender will likely require that you obtain flood insurance. Home loan lenders require such insurance as it safeguards their investment.

Moreover, mortgage lenders mandate flood insurance for houses in spaces that FEMA has specifically designated as flood zones. If you aren’t sure if the house you are targeting is in a flood zone, contact the Homeowners Insurance Group for guidance.

Those buying a home in an area that is not at high risk of flooding during the year might not be required to obtain flood insurance. There’s no harm in asking. Reach out to potential mortgage providers and ask each if they add conditions to local mortgage agreements mandating flood insurance.

Flood Insurance Makes Financial Sense

In the end, it is often mutually beneficial for home buyers and mortgage lenders to coordinate the terms of flood insurance. Even if the area you are buying in hasn’t flooded at a high frequency, flood insurance provides invaluable peace of mind. Keep in mind, standard home insurance does not include coverage for flood damage.

Obtain flood insurance and you’ll sleep soundly, knowing your home and your possessions are protected in the event of a flood, hurricane or other water intrusion. Such insurance typically covers the home’s replacement cost, the mortgage’s unpaid balance or the max figure permitted by the National Flood Insurance Program.

Contact the Homeowners Insurance Group 

Are you in the market for flood insurance or other insurance in or around Scottsdale, AZ? Give us a call for a quote.

What Business interruption Insurance Provides

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Most business owners in Scottsdale, AZ, don’t anticipate having to close their companies due to unforeseen circumstances temporarily. However, unexpected events can occur, leading to a loss of income while the business remains closed. You may not realize that you can safeguard your company during such times with business interruption insurance from Homeowners Insurance Group.

Protecting Your Bottom Line

Business interruption insurance provides coverage for lost income, operating expenses, and additional costs that may arise when your business must close or temporarily relocate due to a covered event, such as a fire, severe storm, or other specified incidents. This insurance also covers expenses if a governmental authority restricts access to your business premises due to damage to property near your location. Coverage includes compensation for lost profits, mortgage or rent payments, and other financial obligations to help restore your company to its pre-loss financial condition. Commercial property insurance often includes this as a provision, and many business owners’ policies (BOPs) bundle it within their coverage.

Common Provisions

Business interruption insurance can be the deciding factor between continuing operations or losing your business. Here’s what it typically covers:

  • Lost net income
  • Operating expenses, such as payroll, rent, mortgage, and loan payments
  • Rent for temporary workspaces
  • Funds for acquiring new equipment
  • Relocation costs
  • Taxes and advertising expenses

You can enhance your coverage with several endorsements, including contingent business interruption (coverage for interruptions caused by a supplier), extended business interruption (coverage beyond the usual period), and coverage for non-operational utilities.

What Is Not Covered

Business insurance policies typically exclude the following:

  • Flood and earthquake damage
  • Pandemics or communicable diseases
  • Undocumented income
  • Broken items caused by a covered event

Gain a deeper understanding of business interruption insurance by discussing your needs with Homeowners Insurance Group, serving Scottsdale, AZ. Contact our office today to schedule an appointment with one of our agents.

How Often Should I Update a Life Insurance Policy?

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To get the most out of your life insurance policy, it’s important to update it periodically to ensure it meets your current needs. Failure to do so can make the difference between financial security and financial hardship for your loved ones after your passing.

How Often Should You Update Your Life Insurance Policy?

There’s no set schedule for updating a life insurance policy. Instead, you should make changes whenever there’s a significant change in your family situation. For example, if you have a new child, you’ll need to update your policy to add your son or daughter as a beneficiary. If you get divorced, you’ll want to remove your ex-spouse from the policy. Similarly, adding a new spouse after marriage is a good idea, especially if you want to ensure they are the primary beneficiary.

If your life insurance policy is sponsored by your employer and you’ve been laid off or expect to be, check the policy details to determine how long you have before you need to switch to a new policy. In some cases, you may be able to convert your group policy into an individual one, but this option is typically only available for 30 to 60 days after your employment ends.

Contact Homeowners Insurance Group in Scottsdale, AZ for Assistance

Homeowners Insurance Group in Scottsdale, AZ specializes in helping local residents find quality life insurance that meets their needs and budget. With over 20 years of experience, we offer a variety of policy options to help you secure the best coverage. Contact us today to learn more about our life insurance options or to request policy quotes.

What’s the Difference Between Umbrella Insurance and Home Insurance?

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If you have significant assets, you may be considering umbrella insurance. This type of insurance extends liability coverage beyond your home insurance policy. But how exactly is umbrella insurance different from home insurance? It’s a great question!

The professionals at Homeowners Insurance Group, serving Scottsdale, AZ, are here to help. We assist our customers by answering their insurance-related questions and helping them choose the right umbrella insurance policy to meet their specific needs. Here’s what you need to know.

What Is Home Insurance?

Home insurance provides financial protection against covered events. For example, if events like fire or lightning strikes damage your home, home insurance can pay to repair or replace your home and belongings.

Home insurance also includes liability coverage. If someone is injured on your property or suffers property damage due to your actions while on your property, home insurance can cover medical bills, repair costs, and other expenses.

Home insurance is typically required for homeowners who have purchased their house with a mortgage.

What Is Umbrella Insurance?

Umbrella insurance extends the liability coverage provided by your home insurance policy. When your home insurance liability coverage is exhausted, your umbrella insurance policy kicks in to provide additional coverage, up to the limits of the umbrella policy.

Who Needs Umbrella Insurance?

Unlike home insurance, umbrella insurance is not typically required if you have a mortgage. However, it can be beneficial if you have assets that exceed the liability coverage limits of your home insurance policy. An insurance agent can help you determine whether umbrella insurance is a good option for your situation.

Contact Homeowners Insurance Group Today

Do you need umbrella insurance? If so, the Homeowners Insurance Group, serving Scottsdale, AZ, can help. Our insurance professionals are here to answer your questions and guide you through the process. Call us today to schedule an appointment and get started.

Three Disasters You Can Avoid with Flood Insurance Add-Ons

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Consider These Add-Ons if You Live in a Flood Area

At Homeowners Insurance Group, we have seen far too many Scottsdale, AZ homeowners be left with thousands of dollars in damages because they weren’t adequately covered against flood damage. People often underestimate the disastrous damage that can occur if their house floods. Flood recovery takes a lot of time and money. Consider these insurance riders if you want to protect yourself properly against the next flood in your area.

1. Replacement Cost Coverage

In most cases, the insurance company will pay you the actual value of an item that gets destroyed during a flood. This seems good, but the replacement cost is often more than the actual value of the belonging you are attempting to replace. Make sure you insure any valuable items in your house for the full replacement cost. It’s well worth it.

2. Temporary Living Expenses

You may have to move out of your house and into temporary housing if your home floods badly enough. You could be on the hook for the entirety of this cost if it isn’t reflected in your home insurance policy. If you live in an area with a high risk of flooding, be sure to include this add-on in your policy.

3. Sewer Backup

Flooding isn’t just caused by weather. It can also be caused by faulty plumbing or sewage backup. This isn’t just disgusting to think about. It’s also very costly. Make sure this is included in your flood insurance plan. If you don’t, you could be left with a very expensive mess in your basement.

At Homeowners Insurance Group, we strive to ensure that each of our Scottsdale, AZ clients is covered adequately against flooding in their homes. If you want to ensure you have the proper coverage, contact us today.

Does Customizing My Fleet Raise Commercial Auto Insurance?

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Modern technology offers significant benefits to today’s business fleets. By modifying your business vehicles, you can collect data to improve employee or vehicle performance, customize a vehicle to enhance its functionality, and more. Smaller customizations, such as adding a custom wrap or a custom paint job, can also enhance your vehicles without the need for technology. Customizing your fleet can offer a solid return on investment (ROI). However, when seeking commercial auto insurance to protect your vehicles, you might be concerned about potential increases in your premiums. Does customizing your fleet raise your commercial auto insurance costs? Here’s what you need to know about customizations and commercial auto insurance, and how we at Homeowners Insurance Group in Scottsdale, AZ can help you get the right coverage for your fleet.

Impact of Customizations on Commercial Auto Insurance Costs

In short, yes. Just as customizing your vehicle isn’t inherently covered by a traditional auto insurance policy, customizing your business fleet is likely not covered by your commercial auto insurance coverage. These types of auto insurance are designed to cover the replacement value of the vehicle itself. However, you’re not without options. You can purchase add-ons that cover these customizations, ensuring you receive the compensation you need to repair your cars beyond their replacement value. It’s important to consider this when purchasing commercial auto insurance to ensure you have comprehensive coverage.

Secure Commercial Auto Insurance with Homeowners Insurance Group

Ready to ensure your business fleet is adequately protected? Trust us at Homeowners Insurance Group in Scottsdale, AZ to secure the right auto policy and add-ons for your commercial needs. Compare quotes with us today!

The Different Types of Life Insurance: Which One Is Right for You?

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For those living in the Scottsdale, AZ area, considering life insurance is crucial as it provides financial support for your dependents if you pass away, among other benefits. When looking for life insurance protection here, there are different options available that you should consider. Understanding the benefits of each option can help you determine which is right for you.

Whole Life Coverage

A great option to consider when looking for life insurance is whole life coverage. This unique form of life insurance provides coverage for the rest of your life. One of the main benefits of this type of coverage is its investment benefits. Each month, when you make a premium payment, a portion of your payment builds in an account that grows with interest over time.

Term Life Coverage

You may also consider getting term life insurance. This type of insurance provides coverage for a limited period of time. However, term limits can be quite long, often reaching 25 years or more. While there are no specific investment benefits associated with this type of policy, coverage tends to be more affordable if you are looking for a larger policy amount. This also allows you to build a customized plan that meets your needs.

As you are looking for coverage in the Scottsdale, AZ area, you will want to call our team at the Homeowners Insurance Group. Our team of professionals can help you assess the different options and build a plan that is suited to meet your needs. This can ensure you are adequately educated and get into an ideal plan.

Does Umbrella Insurance Help Pay for Injuries Caused by Animals on My Property?

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Many homeowners in Scottsdale, AZ, have several acres of property. Some people have mini ranches with horse corrals and barns near their homes in areas where zoning allows horses and other livestock. The proximity of horses and other livestock near a residence can result in a higher risk of injury to visitors. Homeowners Insurance Group can advise you on measures to protect yourself if animals injure someone.

Homeowner’s Policies May Not Provide Enough Coverage

Although your homeowner’s policy provides liability protection, chances are, it’s not enough. Some policies no longer cover dog bites, as some breeds can cause severe injuries requiring extensive medical treatment. Livestock can cause more serious injuries, including broken bones, internal bleeding, and death if someone is kicked or stomped on by an enraged animal. Riding accidents are common and can result in months or years of rehab and sometimes paralysis. Without additional insurance, you’ll pay out of pocket and may even lose your property if a mishap occurs.

Additional Liability Coverage is Essential

If you own horses, it’s a good idea to have at least farm and ranch insurance, which can also pay for mishaps resulting from equipment used to maintain your animals. Sometimes, even a farm and ranch policy isn’t enough. High-worth individuals should also consider an umbrella policy to pay for medical expenses, legal representation, and more. Read all of your current policies to determine what, if any, coverage you may have from injuries caused by your animals. The same goes for any umbrella policy you may consider, as only some will cover injuries caused by large animals.

With the right umbrella policy, you can protect yourself and your property. Contact Homeowners Insurance Group, serving Scottsdale, AZ, and its environs, to learn more about your options.

Understanding the Claims Process for Flood Insurance

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Floods can cause significant damage to your home, and navigating the claims process can feel overwhelming. At Homeowners Insurance Group in Scottsdale, AZ, we’re here to help you understand the steps involved in filing a flood insurance claim.

Preparing for a Claim

When flood damage occurs, the first step is to ensure your safety and document the damage as soon as possible. Take photos and videos of affected areas and items to provide a detailed record. This documentation will be crucial when filing your claim and helps speed up the assessment process.

Filing Your Claim

Once you’ve documented the damage, contact your insurance provider to start the claims process. You’ll need to provide your policy number and details about the extent of the damage. An adjuster will be assigned to assess your home and determine the cost of repairs. Being prepared with your documentation can help make this process smoother and more efficient.

Working with Your Adjuster

When the adjuster visits your property, walk them through the damage you’ve recorded. This collaborative approach ensures nothing is overlooked and helps you understand the next steps. After the assessment, you’ll receive a detailed report outlining the coverage and compensation available to you.

Receiving Compensation

Once your claim is approved, you’ll receive funds to begin repairs. Reviewing the settlement carefully and asking questions if anything is unclear is important. This ensures you can restore your home effectively and without unnecessary delays.

Here to Help you Find Flood Insurance in Arizona

At Homeowners Insurance Group in Scottsdale, AZ, we understand how stressful flood damage can be. Our team is dedicated to guiding you through every step of the claims process. Contact us today to learn more about how we can support you before, during, and after a flood event.

Does Your Business Need Umbrella Insurance?

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Umbrella insurance isn’t a replacement for other forms of business insurance coverage. Instead, it increases policy limits to provide extra compensation should the need arise. Many Scottsdale, AZ, business owners can benefit from purchasing an umbrella insurance policy for a business.

Signs You Need Umbrella Insurance for Your Business

Umbrella insurance provides added liability coverage if someone sues you, and you must pay a judgment or a settlement. Companies in industries with a high incidence of lawsuits should always carry umbrella insurance. Such industries include construction, manufacturing, healthcare, and retail companies. However, these aren’t the only industries that need umbrella insurance. Any company open to the public is at risk of a high incidence of lawsuits. This is especially true if the company gets a lot of foot traffic.

If your business works on a client’s property, having umbrella insurance is a smart idea. It’s too easy for an employee or contractor to accidentally damage someone’s valuables when performing tasks such as cleaning, painting, landscaping, installing a new pool or fence, etc. Alternatively, it’s easy for someone to sue you for damage even if the item in question wasn’t in good condition or was broken before you arrived. While you could take the case to court, the bad publicity could wreak havoc on your business. This is why many business owners settle lawsuits out of court. 

Contact Homeowners Insurance Group for More Information

Homeowners Insurance Group takes pride in helping Scottsdale, AZ, business owners select the business insurance policies that best meet their needs and budget. Contact us to find out more or to get a policy quote.