I’m always looking for opportunities to get my kids out of the house. My two year old boy is really interested in trucks, tractors, trains, planes, police cars, and fire trucks. My three year old girl think’s they are pretty cool too. When my wife suggested a family outing to the airport I cringed. Any parent that’s been through the terminal with an obscene amount of luggage and a stroller know’s it isn’t exactly what we’d call “fun”. Not exactly what she had in mind.
Did you know, there’s an aircraft viewing area at the Minneapolis / St. Paul airport?
Yes, you can get out of your car in the open air and watch the planes take off and land. There are picnic tables, benches, and plenty of free parking. The pace was about a plane a minute, which could even keep my two year old’s attention. They each looked at incoming planes and shouted whether it was a “big one” or a “little one”. Of course, each thought they were always right (I wonder where they got that thought).
Here’s a link to the map.
Maybe your kids (or inner kid) will think it’s cool too!
Here's another, perhaps unexpected reason to pay close attention to your credit report. Insurance companies use a version of your credit score called your insurance score as a factor to determine your premiums.
What is an insurance score?
An insurance score is based on your credit history, and it is used by insurance companies to predict the potential for future losses. Insurance companies use your insurance score, along with a number of other factors, to determine your rate. Generally speaking, customers who have good insurance scores qualify for lower rates. It’s not the same as your FICO score. In my experience, the insurance score is more forgiving.
An insurance score includes:
Eight tips to help you improve your insurance score:
In some cases this score will have more of an impact than an accident or violation. I encourage you to set a date on your calendar each year to review your credit report and take action. If you’ve improved your credit score since the last time you took out insurance, you should shop. There are lower premiums waiting!
There are two common types of liability coverage offered on auto insurance policies. I’ll explain the differences so you can determine which coverage is best for you.
What is Combined Single Limit Liability Insurance?
Combined Single Limit (CSL) Liability Insurance is the maximum dollar limit the insurance company will pay including bodily injury liability and property damage coverage. Commonly offered at these limits:
$100,000 CSL
$300,000 CSL
$500,000 CSL
These are the total liability coverage limits (bodily injury and property damage) for a single accident. Here’s an example to help understand how combined single limit works:
Total liability in this scenario is $300,000.
If you selected a policy with $100,000 CSL, you exceeded the limit by $200,000.
If you selected $300,000 CSL you're at the limit.
If you selected $500,000 CSL you’re $200,000 under the limit.
How is Split Limit Liability Insurance different from Combined Single Limit?
Split Limit Liability is the more commonly used type of liability coverage. The limits are broken down differently than Combined Single Limit. With split limit coverage there are multiple limits that apply per accident. They are: per person bodily injury limit, per incident bodily injury limit, and property damage limit. Commonly offered at these limits (in thousands):
30/60/10 (Minnesota State Minimum Limit)
50/100/50
100/300/100
250/500/100
The first number is the bodily injury per person number, the second is the bodily injury per incident number, and the last is the property damage liability number. Let’s use the same example as above and assume you selected 100/300/100 liability coverage limits.
Total liability in this scenario is $300,000. However the per person limit of $100,000 is exceeded by $50,000 on the first occupant and the property damage limit of $100,000 is exceeded by $25,000. Policy limits are exceeded by $75,000.
Split limit coverage is more complicated than combined single limit. How much personal asset protection do you need? It’s important to know how your coverage limits work to make sure you choose the right amount of coverage.
College is expensive enough without finding out too late that an accident or theft isn’t covered under your current policies. So, as you get your children ready to head off to school in the fall, there’s one vital “to-do” to add to your list (other than writing that tuition check): a review of your insurance coverage.
It's important to keep in mind that policy language varies from state to state, and there are never "one-size-fits-all" situations, but below is a general guide. If you have questions, or want to go over your insurance needs, don’t hesitate to contact us!
HOMEOWNERS (may vary by state and individual policy)
AUTO (may vary by state)
Going away to school is an exciting time for both students and their parents. Making sure you’ve got the right insurance coverage can help you protect your assets as you invest in your child’s future. We’re happy to discuss your coverage and options — just give us a call or stop by!
... with Real World Examples - Series Part 1.
We’re bombarded with advertisements about saving money on our auto insurance. Click here to save 15% on your car insurance, I just double checked my discounts and saved $500, etc. We’re led to believe that auto insurance is a commodity where one size fits all. This isn’t the case. We’re a do it yourself culture. Selecting insurance coverage without educating yourself is dangerous.
This blog series takes a step by step approach through each component of the auto insurance policy. We will explain each coverage in everyday language and give an example of when you would use it. Our goal is for you to be educated to help make the best decision on your coverage. Once you find the right coverage, then find the right price.
To drive your auto on Minnesota roads, you need liability insurance. The Minnesota state minimum requirements are currently:
$30,000 bodily injury per person, $60,000 bodily injury per incident (accident), $10,000 property damage. We’ll call these state minimum going forward.
It your reaction isn’t “Wow, that’s not a lot,” it should be.
Bodily Injury liability protects you if you injure or kill someone while operating your automobile. If a party in the accident files a lawsuit against you, it also provides for a legal defense. Bodily injury liability covers injury to people, not your vehicle. Typical expenses covered include medical expenses, legal fees, loss of income, pain and suffering, and funeral costs. More on medical expenses and loss of income in our Personal Injury Protection (PIP) segment.
Example:
You’re driving and talking on your phone. You don’t see the traffic stopped for a lane closure until it’s too late. You hit a car. Inside are the driver and one passenger. Both are hauled off in an ambulance. The driver sustains minor injuries, $5,000. The passenger needs surgery, $40,000. With state minimum limits, you are responsible for $10,000. Your limit of $30,000 per person was exceeded, even though you were under the $60,000 per incident limit.
Property damage liability protects you if your automobile damages someone else's property. If a party in the accident files a lawsuit against you, it also provides for a legal defense. You should have enough property damage liability to protect you from the amount of damage your auto might inflict on another vehicle or object. Remember, property damage liability covers other people’s property, not your own.
Example:
Same accident as above. The car you hit is a 2015 Honda Accord with an MSRP of $22,105. With state minimum limits, you are responsible for $12,105. Your property damage limit of $10,000 was exceeded.
In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit without jeopardizing your personal assets. Don't wait until an accident to understand your policy. Contact us today to find the option that best meets your needs. We’ll talk about the different liability limits in our next segment. Remember – coverage can vary by policy type and state. Always refer to your policy for explanations of your coverage.
Photo Credit: https://www.flickr.com/photos/aaronpk/
It may sound surprising, but there are approximately 3,000 hailstorms in the United States each year. The size of hail can widely vary – from pea size to softball size. And when it starts building up size, hail can cause not just severe property and vehicle damage, but also bodily harm and even death. On average, hailstorms annually cause over $1 billion in damage to property, approximately 1,500 injuries and 80 deaths annually.
One of the most frightening places to be during a hailstorm is on the road in your car. Obviously your vehicle is at great risk of damage, but even more importantly, you are in danger in the event you can’t see well enough to drive or your windows are broken in by the power of the storm.
Safety at home begins with advance preparation.
When the storm is on the way:
At Novallus Insurance Brokers, we hope you stay hailstorm-free this season! Do you have storm preparation tips? Comment below.
Photo Credit: https://www.flickr.com/photos/dougww/
A house left empty can be an opportunity for burglars, so before you pack your bags, prepare to protect the stuff that’s staying at home in Minnesota.
At Novallus Insurance Brokers we want to make it a little easier for you to get out of town with peace of mind and return to everything you left behind, so here are some pointers for prepping your Minnesota home before you travel.
Lock it up. Check and double-check that you have locked all the doors and windows.
Check under the mat. If you store an extra key outside your house, remove it. Instead, give the key to a trusted friend or neighbor in case someone needs to enter in an emergency.
Communicate. Inform a friend or neighbor that you will be away. Ask them to keep an eye on the house, and give them a way to reach you to report any suspicious activity. Wait to post those trip pictures until you return. Social media doesn’t need to know you are away.
Forego deliveries. Make sure to stop delivery of packages, mail, newspapers, and anything else that could pile up on your porch. Ask your trusted friend or neighbor to pick these items up every other day.
Shut the curtains. Expensive electronics and furnishings shouldn’t be visible in plain sight.
Get an alarm system. Let your insurance agent know and get a discount on your homeowners insurance!
Put a couple lamps on a timer. One less reason for a burglar to stop.
INSURANCE SIDEBAR:
If you are the victim of a theft this holiday season, your homeowners and umbrella policies may offer protection. To know for sure, review your insurance policies with us at Novallus Insurance Brokers.
Photo Credit: https://www.flickr.com/photos/springfieldhomer/
Guest Content provided by Ryan Fischer, RE/MAX Results
When the 75 year old man who had been widowed four times was asked why he was getting married again, he said “for the little bit that they eat, I wouldn’t want to be without one.”
In a torrential rainfall, you wouldn’t want to be without an umbrella. It is also understandable that when purchasing or selling a home, more and more people want an agent involved.
NAR’s Homebuyers and Sellers Profile states the trend in owners trying to sell their home themselves has declined over the past ten years from 14% in 2003 to only 9% in 2014. Similarly, the number of buyers purchasing directly through an owner has decreased from 2001 to 2014 from 15% to 5%.
It is natural to think that a seller wants to get the highest price for their property while the buyer wants to pay the least possible. Negotiations may be the most valuable service provided by an agent because of the clear conflicts of interest such as the price, terms and condition.
Other areas of contention that could affect a party without an agent:
Even when there are two licensed agents involved, there could be a question of representation. This is a discussion that buyers should have with a real estate professional before looking at houses.
*** Oh, and by the way, I am never too busy for your referrals ***
Many Thanks,
RYAN FISCHER
Realtor
Ryan@TwinCitiesPropertyFinder.com
Phone: 612.888.6127 | Fax: 763.416.2499
RyanFischerRealEstate.com | REMAX Results
Guest Blog Content from Ryan Fisher, ReMax
Low inventories resulting in multiple offers are contributing to what experienced agents are calling the most challenging market they’ve ever worked. While buyers with resources may find the market difficult, purchasers with minimum cash and credit are struggling to find and get into a home.
First-time buyers feel the impetus to purchase because they’re renting and are concerned about being priced out of the market with rapidly appreciating prices and rising interest rates.
Sellers may not feel the same urgency because they already own a home. While they might find it appealing to change homes, they may not feel a pressing motivation causing them to act.
In some cases, sellers are so attached to their low interest rate mortgage that instead of selling, they’re keeping the home for a rental property. This may be a good investment for people with additional cash resources for the down payment and closing costs on the replacement property.
Why now is a good time to sell:
Contact your real estate professional to evaluate the opportunities of making a move.
RYAN FISCHER
Realtor
Ryan@TwinCitiesPropertyFinder.com
Phone: 612.888.6127 | Fax: 763.416.2499
RyanFischerRealEstate.com | REMAX Results
Equity - Equity is created in two ways. First, appreciation. If you buy a home and the value increases (which is likely), the difference in the value over time becomes equity. Second, is principle reduction. When you make your payment each month, the balance of the mortgage goes down. When you sell the home, the difference between what you owe on the home and what it sells for is called equity.
Stability - While a landlord can increase rent, a mortgage payment does not change unless the owners voluntarily refinance, or unless there are changes to property taxes or insurance premiums.
Tax Breaks - Home owners may receive a myriad of tax deductions that renters do not. The interest within your monthly mortgage payment, as well as, your property taxes is almost always tax-deductible.
Purchasing a home can be a daunting task for a first time buyer, but I'm here to help. Give me a call and let me put my knowledge and expertise to work for you.
Julie Hadges
Sales Development
Summit Mortgage Corporation
…………………………………………………………………………
P: 952.224.2060 | C: 612.590.1879 | F: 952.224.2065
jhadges@summit-mortgage.com | www.MortgagesDiversified.net
With summer drawing near and the weather warming up, Twin City neighborhoods come
alive with the sights and sounds of the season: lawnmowers, power tools and backyard
barbecues, to name a few.
For many people, those things all bring to mind one specific person: Dad. And since Father’s Day is just around the corner so, thought we’d give you some gift ideas - and some fun history trivia, too!
Marked on the third Sunday of June in the United States (and in many other countries),
Father’s Day was first celebrated in 1910 to complement Mother’s Day. According to
Wikipedia, the day was created by Sonora Smart Dodd of Spokane, Wash., who wanted
to honor her father, Civil War veteran William Jackson Smart.
Although Dodd originally suggested her father’s birthday in early June, she had not
provided organizers with enough time to arrange the event - and the celebration was
delayed until the third Sunday of the month.
Although Mother’s Day has been an official national holiday since 1914, Father’s Day
had a tougher road. Congress refused to make the celebration official in the years
immediately following Dodd’s first observance, fearing that the day would become
commercialized. (Some would say those fears were well-founded; the creator of
Mother’s Day later came to regret the commercialization of that holiday.)
It wasn’t until 1966 that Father’s Day received an official proclamation, thanks to
President Lyndon B. Johnson. And six years later, President Richard Nixon signed a law
making the day a national holiday.
Once you’re past the age of, say, 10, the “Old Spice and a tie” routine probably won’t cut it anymore when it comes to getting a gift for your father. Here are some better ideas from AskMen.com:
Aside from ties and cheap cologne, you’ll probably want to avoid the most clichéd gifts, especially “World’s Best Dad” items (even if it’s true!) and socks.
As with all gifts, though, it’s the thought that counts. And we’re sure your dad will appreciate simply being appreciated. And if you’re a dad yourself – Happy Father’s Day!
We hope you’ll enjoy your day. Now, go mow the yard.
We recently got a call and the first thing out of the caller's mouth was "I’m borrowing my friend’s car … am I covered?"
Great question. So, I thought I'd answer it here.
Now that summer is here, and you might be looking to borrow your neighbor’s truck for a home-improvement project or a trip to the local landfill, we thought it was a great time to provide a little more information.
Generally, insurance coverage follows the vehicle rather than the driver. So in most instances, as long as the owner of the car has insurance, it’s covered even if someone other than the owner is driving it — as long as they have the owner’s permission.
The borrower’s insurance is considered secondary, meaning that in the event of an accident, it could apply if the owner’s insurance is insufficient to fully cover the damage.
It’s important to note that there are some exceptions to what is called “permissive use” coverage. For example, permission must be given by the owner, unless the borrower has a reasonable belief that they are allowed to use the car. However, the borrower cannot give permission to someone else. So if your teenager allows one of his or her friends to drive your car to Duluth (kind of a hike) your coverage likely won’t apply.
Coverage might also be denied if the borrower operates the vehicle in a negligent or criminal manner. And if the borrower is using your car for business purposes, your personal auto policy likely won’t cover that.
If you have a regular long-term arrangement to either borrow or lend a car, the borrower should probably be added to the owner’s personal auto policy. Those who don’t own a car, but often borrow one, might also consider “named non-owner coverage,” an endorsement that provides bodily injury and property damage liability, uninsured motorists coverage and more.
Ultimately, it’s usually safe to loan your friend your car for occasional errands or projects. And the same goes for borrowing a car. Just make sure it’s for “normal” use. You’ll want to confirm that the car has coverage and that your insurance, whether you’re the owner or borrower, will apply.
Feel free to give us a call if you have any questions — after all, you don’t want to wait until after an accident to get answers!
