4 Home Improvement Projects That Positively Impact Your Insurance Rates

Renovations make your home more comfortable while increasing its resale value. But did you know they can also lower your monthly insurance bill? Here are some remodeling projects homeowners in the Frederick, MD area can use to positively impact their homeowner’s insurance rates.

  • Working on your roof has a huge impact on your insurance liability. The roof is the most common source of moisture damage. Insurance providers are willing to cut you a deal for taking good care of your roof. Repairing or replacing your roof reduces the likelihood that you’ll need to make a claim in the first place.
  • Upgrade your plumbing to see some monthly insurance savings. Older homes with degrading water and septic systems are a hazard waiting to happen. Modernizing your waterworks lowers the possibility of catastrophe. Insurance companies show their appreciation by making you pay less for homeowner’s coverage.
  • Work from home to consolidate coverage costs. Self-employed persons and entrepreneurs who rent separate office space can save an extra monthly premium by creating a workspace in their home. Take note that inventory, equipment, and business supplies may not be covered by your existing homeowner’s policy. Talk to an agent at Wellspring Insurance Network Inc. for more information.
  • Another way to prolong the life of your home while lowering your insurance costs is to refurbish your electrical systems. Upgrading your electrical system reduces the chance of accidental fires. Insurance companies offer special perks and premiums to those willing to invest in new panels, wiring, and lighting.

Wellspring Insurance Network Inc. serves the insurance needs of residents and businesses in the Frederick, MD area. Contact us for more ways to reduce your monthly homeowner insurance premiums.

What Happens If Your Auto Insurance Lapses?

You always want to avoid any lapses in your auto insurance policy. Here at Wellspring Insurance Network Inc. serving the greater Frederick, MD area, we have found that many people do not fully understand what it means to have an auto insurance lapse and why this is a bad thing. Here is what you need to know about auto insurance lapses. 

What is an Auto Insurance Lapse?

An auto insurance lapse, also called an auto insurance gap, means that you did not have auto insurance coverage. Some people fail to pay their auto insurance policy and experience a lapse, while other people simply do not renew their policy or obtain a new one. A lapse can be a short period of time, such as a  day or a week, or a prolonged period of time, such as months or years. 

What Happens if Your Auto Insurance Lapses?

If your auto insurance lapses, you do not have any auto insurance coverage. By law, you are not legally allowed to be driving around with auto insurance. Your registration may also be revoked or suspended if your auto insurance lapses. 

In the long term, your auto insurance rates may increase if you have a lapse in your auto insurance coverage. You often get a discount for continuously having auto insurance coverage, so you lose this discount due to a lapse. 

Don’t let your auto insurance lapse. If your current auto insurance policy in the Frederick, MD area is set to be canceled, contact Wellspring Insurance Network Inc. today. We can help you to quickly get a new auto insurance policy so you do not have a lapse in auto insurance. 

Designating Life Insurance Beneficiaries: Who Gets the Money?

The beautiful thing about purchasing a whole or term life insurance policy from the Wellspring Insurance Network Inc. is that you have the power to decide who will receive the benefit of your foresight. Whether your family lives in Frederick, MD near you or across the globe, it is entirely up to you to make this decision.

Keeping It Simple with the One You Love

Many people do the simple thing and designate the beneficiary of their policy as their spouse or longtime roommate. This certainly speeds up the process of distributing funds upon your death, but in reality, choosing only one person is the easiest decision. It will enable that person to handle your final affairs with fewer distractions, but it can mean they are left to sort out the arguing relatives. You do have other choices.

Choose More than One

Maybe your kids are now in college or just starting out on their own. You want to help them with debt reduction or a down payment for a home. You can select multiple beneficiaries for your policy where each child gets a stipulated amount and the rest is left to your spouse. You can send the money to a trust and have it paid out over years or in a lump sum. You can send it to your military buddy that served with you.

Update Your Policy as Time Goes By

Once everybody is all grown up, you may be thinking about the next generation. Remember to revisit your life insurance policy after major life events such as retirement, promotions, graduations, marriages, and births.  Your agent at Wellspring Insurance Network Inc. is available to help you with the details, ensuring that all your life’s work in the Frederick, MD area leaves behind a positive legacy for your most valued people.

 

How to Avoid Common Problems with Commercial Insurance

It helps if business owners understand the common problems that arise with commercial insurance so that they can avoid them. Working with your agent at Wellspring Insurance Network Inc., serving Frederick, MD and the surrounding area, uncovers these problems with a commercial insurance review to make sure there is adequate coverage for the business.

Here are the common problems to consider:

  • Undervaluation of Property:  Adequate coverage for property uses the replacement value instead of the purchase price, depreciated price, or value if sold. For example, a ten-year-old piece of equipment may not be worth nearly as much as a new piece of the same equipment. Using the historical purchase price, the value after depreciation, or estimates of what it can be sold for, does not adequately protect the business if it needs this equipment to operate. It is better to use replacement value at a current price.
  • Not Covering Special Risks: Businesses may have unique risks because of how they operate, who their customers are, or what industry sector that they work in. In addition to general liability coverage, these special risks also need insurance coverage.
  • Misunderstanding Coverage: Business owners do not always have a clear understanding of the things that are covered by insurance. Reading insurance policies carefully is helpful as well as asking your agent questions about the coverage if you do not understand the policy terms.
  • Failure to Plan for the Worst-Case Scenario: Business owners need to think about the worst-case scenario in order to make sure the business does not fail when suffering a major setback. For example, cybersecurity insurance, insurance against the risk of terrorism, and business interruption insurance should be in place for most businesses.

Once each year, and at any time when businesses circumstances change, it is important to have a commercial insurance review with your agent from Wellspring Insurance Network Inc. in Frederick, MD to make sure coverage is adequate. Take this opportunity now to think about insurance coverage and give them a call to set up an appointment for an insurance review.

How to Protect All of the Structures on Your Property with One Home Insurance Policy

Does your property contain detached structures that will also require insurance coverage in the event of theft, fire, or a storm? Most home insurance policies are written in the greater Frederick, MD area contain a protection clause for other structures coverage. If you are uncertain if your current home insurance policy provides the protection that you need, the team at Wellspring Insurance Network Inc. can conduct a review for you. This will also be a good time to review your personal articles coverage and make sure that it is at the appropriate level to protect all of your items, no matter where they are located on or off of your property.

What Types of Buildings Does Other Structure Coverage Protect?

Have you improved your property with a gazebo or other free-standing structure? Do you have a detached garage or a privacy fence? Those are the types of structures that will be covered by the other structures clause in your homeowner policy. If you have a substantial structure and want to make sure that you have an adequate level of protection it is a good idea to thoroughly review your policy. The properties on your land are covered in the event that the peril that causes the loss is part of your home policy protection. The level of coverage is typically a percentage of the protection for your dwelling.

Now is a good time to review your home insurance policy to make sure that you have the coverage that you need for all of the buildings and structures on your property. Contact Wellspring Insurance Network Inc. today if you are in the greater Frederick, MD area and would like a policy review. Our team of professional agents is here to help!

How Does a Speeding Ticket Affect Car Insurance?

When a person purchases an auto insurance policy, it is extremely important to maintain a clean driving record. Any type of traffic violation may or may not impact a person’s monthly premium. Fortunately, there are certain steps a person can take to help mitigate the risk of a premium going up if a person gets a speeding ticket. Here at Wellspring Insurance Network Inc., we are all about making sure you can afford your auto insurance and we want to do everything we can to make your policy as affordable as possible. This is why we put together a helpful go-to guide to help you understand how a speeding ticket affects car insurance in Frederick, MD. 

Look for a Defensive Driving Course

A defensive driving course is also sometimes referred to as traffic school. As a driver, you want to make sure you are always going the speed limit, but it’s not uncommon for people to get at least one speeding ticket during their lifetime as a driver. If you happen to be one of these people, you should contact your insurance company and ask about a defensive driving course. You may find you are able to have your ticket dismissed. Typically, you can have one ticket dismissed per every 12 months. Even better, some of these courses are offered online, allowing you to complete them at your own convenience. 

Speeding Tickets Increase Your Rates

Here’s the truth of the matter. A speeding ticket is likely to increase your policy amount because it reveals you are not abiding by the law when behind the wheel of a car. Always go the speed limit.

To learn more about speeding tickets and how they impact car insurance, contact Wellspring Insurance Network Inc. serving Frederick, MD.

The Insurance Policy You May Not Know You Need: Landlord Insurance.

Whether you are a landlord of several properties or are simply renting your extra space for the summer, do not forget Landlord insurance. There is much at risk and elements that you may not have considered when it comes to liability and insurance requirements. Wellspring Insurance Network Inc. provides insurance for homeowners in various situations in and around Frederick, MD.

What Are You Responsible for as Landlord?

The question of your rights and responsibilities as a landlord clears up why insurance is so important. In short, you could end up responsible (liable) for just about any situation your tenant is involved in while they rent from you. Yes, they should have renters insurance but that only covers so much and it is not unheard of for lawyers to go after the landlord in different situations where a tenant cannot pay. Whether a tenants dog bit someone, or their guest injured themselves on the property no matter the situation the liability could fall right on your lap. Full coverage landlord insurance can give you peace of mind when it comes to renting out your properties.

Landlord insurance does not just protect you from lawsuit type situations, you need coverage for the event of a natural disaster or even a "disaster" renter who makes the home inhabitable until repairs are made, in some cases insurance can even cover the loss of income from that time lost. Also note that if you are simply relying on your established homeowner’s insurance policy, it may be voided by the fact that you no longer live in the home. Each situation varies and it is important to talk to a knowledgeable agent. 

Contact us to discuss your Landlord Insurance needs. At Wellspring Insurance Network Inc. we proudly provide insurance to residents in and around Frederick, MD.

Do I Need Renters Insurance for an Isolated Home?

If you have rented a vacation home or condo, you need to ensure it just like your primary home. Your possessions will be at high risk because you aren’t available all the time. However, many factors go into setting the price for your renter’s insurance plan, and in most times, the cost of protecting a secondary home is always higher than that of a primary residence. This is because having someone around the property protects it against perils and keeps burglars away. So, whether you have just rented your new second home or you already have one, this guide will assist you to know the importance of having enough insurance coverage for your isolated Frederick, MD home. 

Cost of insuring a vacation home

To protect your isolated home, you simply need to buy an independent renters insurance plan. The insurance company, like Wellspring Insurance Network Inc., will consider some factors before setting the premium price. Usually, the factors include the deductible you choose, replacement cost limit, as well as other applicable risks.

Why is ensuring an isolated home more expensive?

The residence is inhabited most of the time, so the probability of filing for claims is higher. For instance, if a vacation home catches fire, no one will be there to contact the fire department, meaning that the loss will be catastrophic, especially if the residence is located in a remote place.

Make sure you don’t mislead your carrier to think that your isolated home is your primary home just to reduce the cost of premiums. The savings you will make on the renter’s insurance plan are not worth the risks.  Your insurer will not offer the protection you need if you file a claim for your vacation home and they realize you lied about its status.

For more information on renters insurance for your isolated Frederick, MD home, contact Wellspring Insurance Network Inc.

 

Buying a Condo? What You Should Know about Condo Insurance

Like any other home investment, condos need to be protected with insurance coverage. Most condos come with master insurance policies that protect the outside of the building plus common areas. This leaves condo owners with the responsibility of protecting the interior of their unit and personal belongings. Here’s what you need to know to make wise condo insurance decisions.

Check Master Policy

Before selecting condo insurance, review what your master policy has to offer. Some policies offer “bare bones” protection, i.e. exterior damage to your building only, while others cover both interior and exterior structural damage. Once you know what your master insurance covers, you can take measures to protect your unit. A Wellspring Insurance Network Inc. agent can guide you in choosing the right coverage for your Frederick, MD condo.

If your master insurance policy only offers exterior coverage, you’ll need to protect your interior structures such as cabinets, lighting, floors, etc., against the risk of damage from fire or another catastrophe. Ensuring the interior of your condo can save you thousands of dollars in replacing these structures if you suffer loss. Your coverage should also extend to home improvements or renovations made to your property.

Personal Goods

Valuable personal goods such as furniture, appliances, electronics, clothing, etc., should have insurance protection as well. By making a home inventory, you can keep track of what you own and its value to simplify making a claim. With replacement cost coverage, you won’t have to pay to replace these goods out of pocket.

Liability Coverage

Liability insurance protects you against lawsuits if a visitor gets hurt while on your property. If you entertain often or have people staying with you on a regular basis, liability protection is a must.

For more information on condo insurance coverage and costs, contact us at Wellspring Insurance Network Inc. in Frederick, MD.

Is motorcycle insurance mandatory?

Though a motorcycle is a substantial investment, it comes with other financial obligations you need to take care of. Most people in Frederick, MD always ask themselves whether motorcycle insurance is mandatory. Others think that they don’t require motorcycle insurance when they have car insurance.

Do you need motorbike insurance in Maryland?

Of course, you do! According to Maryland law, all motorcycles must be registered and should carry the mandatory minimum amount of liability insurance. Insurance companies like Wellspring Insurance Network Inc. should offer the essential information you require on motorcycle insurance, particularly on the minimum compulsory liability coverage.

Personal injury protection isn’t mandatory for motorcycles

PIP is a component of car insurance coverage that only applies on a no-fault basis. Note that PIP rules for motorcycles in Maryland differ from those of vehicle coverage. Actually, it is not mandatory for a motorcycle policy. Due to this, PIP is rarely offered for motorcycle insurance policies. Unfortunately, this does not favor you as a motorbike user because PIP gives you some protection from injuries after a motorcycle accident even if you were at fault.

Are there penalties for failing to get motorcycle insurance?

Penalties and rules for failing to get motorcycle insurance in Maryland are the same as those for auto insurance. In Maryland, you are required to show proof of insurance if you want to register a motorcycle. This means that you won’t even get a Maryland license plate for your motorbike if you don’t have proper insurance. In case you terminate your motorbike insurance, you are required by law to surrender your tags to the Motor Vehicles Administration in Maryland before your coverage ends. Your insurer will notify the MVA in case your cover lapses as a result of non-payment or is canceled. Note that the penalties and fines for riding without an insurance cover are significant.

Be sure to contact Wellspring Insurance Network Inc. in Frederick, MD for more information on motorcycle insurance.