Rates do not always increase after a claim, but claims do factor into your risk score and can result in premium increases. Rate increases after a claim are typically due to the insured being seen as a higher risk to the insurance company and a high loss ratio on the account. The effect of claims on your premium will decrease over time, and paying higher premiums allows for more claims without a premium increase. We proactively work with our clients to prevent claims from occurring in the first place.

A loss ratio is calculated by dividing the premium paid for the last 3 or 5 years by the amount of money paid out in claims. A higher loss ratio leads to higher insurance costs. For example, if you pay $2,000 per year for insurance and have a claim of $3,000 in the 2nd year of coverage within the past 3 years, your 3-year loss ratio would be 75%. Over time, as you have no more claims, your loss ratio decreases. The effect of claims on your premium typically decreases over time.

The farm insurance policy we offer covers both the farm and the residence. It is packaged together in one policy for streamlined billing and less paperwork. If you own multiple residences on or off the farm, we can include those residences on the farm policy as well.

Flood damage is not covered by any farm, homeowners, or business insurance policies. To obtain coverage for flooding, you will need to purchase a separate flood insurance policy. We can assist you in finding the necessary coverage for your property. However, natural disasters such as wind, hail, and tornadoes can be covered by the farm insurance policy.

Our life insurance products are underwritten on a case-by-case basis. While some cases may be issued without a medical exam, others require one. Our goal is to offer the best pricing with the lowest level of inconvenience. If we can secure the best rates without a medical exam, then no medical will be required. Medical exams are only necessary when we cannot obtain the best rate without one.

Term life insurance is purchased for a set time period or “term” of your life, while whole life insurance is purchased to cover your entire life. Term life insurance is typically used to protect loved ones from debts or loss of income for a specific period, such as a mortgage, car loans, or income replacement for dependents. Whole life insurance provides coverage for your entire life, ensuring that your beneficiaries receive the benefit upon your passing, without leaving a financial burden.

The contestable period is the time during which the insurance company can investigate if there was any fraud or willful withholding of information on a life insurance application. If fraud is discovered during this period, the company will not pay the death benefit and will refund the premium. The contestable period typically lasts for 2 years and restarts with a new policy or lapse in coverage.

The requirement for business insurance depends on permits, licenses, and industry regulations. Some types of business insurance are legally required, while others are not. To determine if you have the necessary coverage as mandated by law, please consult with our licensed professionals.

Yes, business insurance expenses are generally tax-deductible. Your business insurance premiums can be considered as deductible business expenses.

Business insurance serves to protect you against unexpected catastrophic events. It reduces the need for excessive cash reserves by transferring the risk to an insurance company. This enables you to invest your money back into your business, promoting growth and reducing the financial burden of potential losses.

Self-insurance is the practice of not having an insurance policy in place to cover the risk of loss. It involves paying for all expenses associated with repairing, fixing, or replacing damaged property. While it is not financially reasonable to insure against every risk, most insurance plans consist of a combination of self-insurance and insurance policies tailored to specific business needs.

Homeowners insurance has six major coverage parts:

1. Dwelling: Covers the structure of the house, including walls, roof, and permanently affixed equipment or furniture.
2. Other Structures: Covers detached garages, sheds, and similar buildings on the property.
3. Personal Property: Covers the contents of the house. Think of it as everything that would fall out if you flipped the house over.
4. Loss of Use: Pays for alternative accommodations if the house becomes uninhabitable due to covered damage.
5. Personal Liability: Provides coverage in case you are personally sued for damages caused by you or your family members.
6. Medical Payments: Covers medical expenses for injuries that occur on your property, regardless of fault, as long as the injured party agrees not to sue.

A renters policy includes all of these coverages except for dwelling and other structures since the renter does not own the building or structures.

Auto insurance has five major coverage parts:

• Liability Insurance: Covers the damage you cause to others if you are at fault or caused the accident.
• Collision: Covers damage to your vehicle in a collision, minus the deductible.
• Comprehensive: Covers damage to your vehicle from fire, vandalism, falling objects, etc., minus the deductible. Comprehensive coverage also includes glass coverage without a deductible.
• Personal Injury Protection (PIP): Also known as No-Fault insurance, it helps pay for medical bills, lost wages, and funeral expenses for individuals in your vehicle, regardless of fault.
• Uninsured/Underinsured Motorist Protection: Covers individuals in your vehicle if you are in an accident caused by someone without insurance or with insufficient coverage. This coverage cannot exceed your liability limits but should match your liability limit.

We strongly encourage you to check your Uninsured/Underinsured Motorist Protection and ensure it matches your Liability limits to adequately protect yourself in the event of an accident.

Personal property insurance on a homeowners or renters insurance policy covers your home or apartment contents. It includes furniture, electronics, appliances, and personal belongings. Policy limitations may exist for certain high-value items like jewelry, furs, cash, firearms, collectibles, etc. It’s important to review your policy with your agent to understand your coverage details.

A deductible is the amount you are responsible for paying in the event of a claim. It is a form of self-insurance where you take on a portion of the risk. A higher deductible reduces insurance premiums but requires you to have more cash on hand to cover potential claims. Selecting the correct deductible is crucial to ensuring an insurance plan that works effectively for you during a claim.