Author: Robin Easterlin

We are currently in what is known as a hard market, which impacts insurance companies and consumers in a variety of ways. While insurers fight to offset growing costs, policyholders across the country are experiencing higher insurance premiums and deductibles, more stringent underwriting criteria, and are even receiving nonrenewal notices due to factors outside of their control. While a hard insurance market presents a unique set of challenges, it is important to remember that you do not have to face them alone.

1. Why are we in a hard market?  

Supply chain issues are a leading cause as it takes longer to repair or replace damaged property, and the costs for materials continue to increase, driving the pricing even higher. Plus, larger catastrophic weather events put additional pressure on insurers, as we see an increase in both the quantity and cost of claims. Finally, social inflation, which is the willingness of jurors to award largely unexpected sums of money at trial is forcing insurers to settle claims they may have traditionally taken to trial. All of these factors have caused insurance rates to increase.

2. I have not filed any claims through my insurance. Why are my premiums increasing?

Premium increases are not just tied to a specific customer’s coverage, but to the overall insurance market. As a result of rapidly increasing catastrophic losses and larger jury awards, the cost of claims for insurers has risen. Also, there is less competition as several insurance companies have withdrawn from the market, limiting consumers’ ability to shop around. These factors contribute to rising insurance premiums.  

3. How long will this hard market last?

Hard markets are cyclical, though we do not know how long they will last. They vary in length and severity, depending on prevailing economic challenges, inflation rates, and the types of insurance affected. A hard market will begin to “soften” as premiums rise and bring more capital back to the insurance market.

4. How can my insurance advisor help me in a hard market?

The advisors at South Carolina Federal Insurance Solutions are experienced professionals. We strive to be a valuable, trusted resource, and can help you navigate the current market conditions. We have long-standing relationships with insurers and are well-positioned to help you select the right coverage for your unique situation. We can provide information on available coverage options and recommend risk management resources that may help mitigate your exposure.

5. How can I get a better rate on my policy?

It is always a good idea to review your policy with your advisor to better understand your coverage limits and deductible amounts. Sometimes, another insurance carrier may offer the same or better coverage for a more affordable rate. If you want to change insurers, be sure to ask your advisor how the switch may affect your ability to be fully covered in case of a large claim.

Investing in risk management strategies can reduce your exposure and make you more attractive to insurers. There are a variety of protection devices you could put into place to help mitigate claim exposures such as a central fire and home security system, a permanently installed backup generator, a temperature monitoring system, and/or a water leak detection system. Installing these systems could garner additional discounts to your policy.

Source: Trusted Choice Agent Toolkit: Navigating Client Communications in a Hard Market

While many people enjoy getting into the Halloween spirit, it’s important to prioritize your safety and the safety of trick-or-treaters. When decorating your house and preparing for visitors, it is a good idea to consider potential risks and take precautions to protect yourself, including:

• Be mindful of dangers that might not be visible during the night. Help trick-or-treaters stay safe by ensuring your yard is clear of debris and obstacles, and is well-lit.
• Decorate safely. Keep extension cords away from walkways, use battery operated candles or lighting, and tie down any inflatable decorations.
• Don’t forget about your furry friends. Keep candy, wires, and decorations out of your pets’ reach, don’t allow them near lit jack-o-lanterns, and have them in a quiet, safe area.
• Slow down and be vigilant. Whether you are planning to be on foot or in a vehicle, be patient and alert as trick-or-treaters make their way through local neighborhoods.
• Trick-or-treat safely. Make sure your little ones wear reflective tape, have flashlights, look both ways before crossing the street, and avoid dark homes.
• Protect your unattended home and vehicle. If you’re planning to be out, remember to lock up, set alarms, and make your home look occupied to avoid any uninvited guests. Take the necessary precautions to prevent against theft and vandalism.

Don’t be frightened by the risks. Our team of advisors can help you prepare for a safe and happy Halloween by reviewing your insurance policies. You may even want to consider purchasing an umbrella policy for added protection beyond existing limits and coverages of your other policies.

We look forward to helping you stay safe this spooky season!

Time slows down and scenic destinations become a picturesque surprise as you hit the road in your recreational vehicle. Whether you are planning an RV road trip to cheer on your favorite football team, explore different camp grounds, or enjoy the fall foliage, it’s important to make sure safety protocols are in place. It’s wise to start by reviewing your insurance coverage with your advisor to make sure your vehicle is adequately protected. Before you plan your next adventure, here are a few safety recommendations to consider:

• Take your vehicle for a test drive, especially if this is your first trip. RVs, especially when fully loaded, have a myriad of driving considerations that go far beyond those of a typical vehicle. Cornering, turn radius, braking distance, blind spots, towing, acceleration, and height are just a few of the operational considerations you should be comfortable with before beginning your trip.
• Be mindful of propane safety. Many RVs use propane for kitchen appliances, hot water systems, and heating systems. But the amount of propane stored can also pose a significant hazard. It’s important to properly inspect your equipment before traveling. You’ll also want to be knowledgeable of filling procedures, your maximum capacity, and what to do if you suspect or discover a leak.
• Treat your RV as you would your home or car. Consider installing deadbolt locks, ensure smoke alarms and fire extinguishers are operational, inspect headlights, turn signals, all belts and hoses, and check all other equipment to be sure it is defect-free.
• Assemble a safety kit with flashlights, batteries, road flares, repair tools, tape, jumper cables, and food and water. You never know what type of emergency or natural disaster you will encounter while on the road, so it’s best to be prepared.
• Buckle up when the RV is moving. This is particularly important since passengers often act as they would in a home — sitting around a table playing games, snacking, and cooking. Travelers are subject to being thrown about by a sudden stop or collision because they are in a moving vehicle, so it’s best to wear your seat belts.
• Understand the threat to your safety from overloading. While it may seem obvious that RVs are going to be far heavier, and thus more difficult to drive than a standard vehicle, don’t overlook the further complication of your own cargo and how you load it.

RVs can immeasurably add to the enjoyment of your road travel as long as you prepare beforehand and follow proper safety precautions during your trip. Our advisors stand ready to offer insights and advice to help you find the right insurance policy for your RV. Safe travels!

Source: Trusted Choice®

When you’re moving to a new house, it can seem as though your to do list is constantly growing. From packing, selling your current home, unpacking, and setting up your utilities, there is no shortage of work to be done. To help you check one item off of your list, our insurance advisors have answered a few questions to help you manage your homeowners insurance when moving:

• When should I tell my insurance advisor I’m moving? It’s best to give your advisor as much notice as possible to help them shop for new homeowners insurance. They can give you an estimate of how much homeowners insurance and flood insurance will cost on the property you’re planning to purchase. It’s important to consider these factors in the overall price of your home, as they can vary greatly from one home to the next.

• Who covers my belongings during a move? This type of coverage could be included in your current policy, but it’s best to check with your advisor to confirm. If you hire a professional moving company, they often offer coverage you can purchase to protect your belongings while in transit.

• How long should I keep homeowners insurance for my old house? You need to maintain coverage on your home until it is sold. If you don’t plan to sell your current home and intend to keep it as a rental or second home, you will need to contact your insurance advisor so they can update or rewrite your coverage.

• How do I update my homeowners insurance policy for my new house? Your insurance advisor can help you shop for new homeowners insurance. Having all of the information on hand, like home details and safety features, may help you qualify for discounts and will help us find coverage options to fit your needs.

• Will the rate for my homeowners insurance policy go up? It depends on multiple factors including the age, size, condition, and location of your new home. If your home has a much higher replacement cost, for example, it may result in a higher premium. Your insurance advisor can shop multiple companies to help find a policy to fit your needs and budget.

Working with our advisors can help you make managing your homeowners insurance during a move one of the easiest tasks on your list. Our team can help you understand your coverage and determine what changes you need to make as you settle into your new home. Call or email us today to learn more.

For many families, summer is a time to have fun, make memories and enjoy other’s company while school is out and organized activities are on hiatus. Whether your summer plans include road trips, pool parties or days spent on the water, hopefully your time will be spent making the most of the season.

As you prepare for summer, set aside some time to review your insurance policies. Since you’ll likely be welcoming more guests into your home and spending more time travelling, it’s important to make sure your policies cover your planned adventures and are sufficient to cover life’s unexpected moments, too. There are some specific steps you should take no matter how you’ll be enjoying your summer.

At home

Are you one of the lucky homeowners with a pool in your backyard? Having a pool helps you enjoy even the hottest summer days, but it also requires more extensive coverage in your homeowner’s insurance policy. Before you invite your neighbors over for a swim, review your current policy to make sure you are adequately protected.

If you live anywhere near the coast, you might also know summertime by another name – hurricane season. Though no amount of preparation can prevent a summer storm, you can make sure your family is covered before the spaghetti models take over your TV screens. Most homeowner’s insurance policies don’t include coverage for flooding as a result of a hurricane, so it’s important to understand what coverage you have. And remember, the best time to make sure you’re protected in the event of hurricane-related damage is before there’s a named system on record.

On the road

If you own a recreational vehicle (RV), make sure you revisit your coverage limit on stated amount policies as many owners are seeing appreciation in the value of their RV rather than depreciation. Additionally, consider maximum vacation liability limits and make sure the replacement cost on personal items that will be stowed on the RV is sufficient.

For motorcycle owners, considering underinsured motorist coverage could be the smartest move you make this summer. Many riders opt out of this coverage due to the cost, but the reason it can be pricey is because it’s one of the most utilized coverages in the event of a bad accident. For example, a motorcycle rider is hit by a driver with state minimum liability. The accident results in $200,000 in medical bills and $50,000 in lost wages for the rider. The at-fault driver’s policy with minimum liability limits will only cover $25,000, leaving the insured biker with $225,000 of expenses that aren’t covered. An extra $300-$400/year for underinsured motorist coverage might seem expensive at first, but when you consider the potential costs of opting out, it seems like a bargain.

On the water

Is your family’s idea of summer fun a day spent on the water? Make sure anyone who will operate your boat this summer has taken a boating safety course, especially new drivers who don’t have much experience. Boat owners should also review their insurance policies and consider high liability limits and maximum med-pay limits, which can help avoid litigation after an accident. Smart boaters know that safety comes first, and having insurance coverage is a crucial step in protecting your family’s summer fun.

Insurance policies can be confusing, and it can be difficult to know what to look for when evaluating coverage. But we’re here to help! Our team of advisors can provide a complimentary review to help you select coverages that meet the needs of your family. Give us a call at 833-359-0725 or email us to get started.

Congratulations! Your child (technically, now an adult) just graduated college and is embarking on the transition into real adult life. For new college graduates, it’s an exciting time filled with many “firsts.” They are starting to search for their first professional job, look for their first place, and maybe purchase their first new vehicle.

In all the transitions, it’s easy to overlook an important detail—insurance. While considering insurance is certainly not as thrilling as those other significant “firsts,” it is a necessary step to help manage financial losses.

Here are three insurance coverages your new college graduate should explore:

#1 – Renter’s Insurance

Until now, your college graduate may have lived in a dorm room or shared housing with other students. Now, it’s time for them to consider making a home in their first apartment.

New renters often don’t understand that the landlord’s insurance does not cover their belongings. Should they experience an unforeseen situation – like a burglary, stormy weather that causes a leaky roof to destroy their furnishings, or small fire that creates smoke damage – they need to be protected. Renter’s insurance protects them from losing everything they are working so hard to obtain.

It’s a good idea for them to create a list of their belongings inside the apartment, placing an approximate value on each item. From electronics to linens and clothing to dishes, every piece adds up—and fast, if it all needs to be replaced. The total is the suggested amount of renter’s insurance they should purchase.

#2 – Auto Insurance

Many college graduates reward themselves for their diligent work throughout the past years—and for landing a fantastic job—with the purchase of a new car. And, why not? Purchasing that first brand new car is a significant milestone for a young adult. With a new car comes personal auto insurance, a package policy that includes coverage for liability and physical damage.  

Liability insurance pays when your graduate injures another person or damages their property (such as their car) in an at-fault accident. Every state requires drivers to carry a minimum amount of liability coverage. While some coverage is better than none, minimum limits are not nearly enough to protect them following an accident where they are at-fault. Contact an Insurance Solutions advisor to help you understand available how higher limits may be an option to help them have adequate coverage.

Physical damage covers the cost to repair the damage to your own car. Prepare them for the increase in premium that will accompany the new vehicle when compared to that of the old hand-me-down they were driving.

Even if the cost seems scary, don’t let your new graduate skimp on coverage – advise them to purchase guaranteed asset protection (GAP) coverage. This type of insurance covers the difference of the loan payoff amount on a new or pre-owned vehicle and the actual cash value (ACV) of the vehicle, when an insurance carrier, due to theft or an accident, deems it a total loss.

Remember, liability pays the other person, physical damage is required to cover damages to your car. Both coverages are too important to go with the “minimums.”

#3 – Life Insurance

Most college graduates see the standard life insurance included in their employee benefits as sufficient coverage. For many, that could be the case. Like every rule, there’s an exception or two to consider:

• Exception #1 – Your young adult has a child who will need to be raised, fed, clothed, and educated in the unlikely situation of his or her premature death.

• Exception #2 – Your college graduate has student loans along with a co-signer. In the even the primary borrower on the student loan passes away, Sallie Mae will call upon that co-signer to pay off the debt. In fact, the debt often becomes immediately due in full in that circumstance. Life insurance protects the co-signer in this case.

College graduation is the beginning of the next chapter in life and it’s important to help your graduate understand now is the time to plan for the future. While it may not be the most exciting discussion, having insurance will help prepare them for unforeseen circumstances.

Still have questions on how much coverage your graduate needs? Give us a call at 833-359-0725 or email us to schedule an appointment with a South Carolina Federal Insurance Solutions advisor. We can help you feel confident they have the protection they need.

Source: Trusted Choice®

What is Umbrella Insurance?

Umbrella insurance can cover the extra costs if you exhaust coverage from your other liability policies. This type of coverage is different from other primary forms of insurance because it does not cover your own property. Rather, it protects you financially from claims of damage to others’ property; it also protects you financially if you are found legally responsible for a bodily injury to another person.

There are two types of umbrella insurance — commercial and personal — and both are considered supplementary to primary, or underlying, policies. A personal umbrella is designed to protect your personal assets from liability claims, particularly in scenarios where you may be held liable for damages. A commercial umbrella is designed to protect your business from liability risks related to its operation.

For example, if you’re at fault in an auto accident, or a neighbor is injured in your home, a liability claim against you could exhaust the limits (maximum reimbursement) provided by your underlying policy. That policy would usually be your homeowners, auto, renters or condo insurance, whichever is applicable. This is when you can turn to your umbrella policy for additional coverage or what’s called “excess liability coverage.” Without this additional coverage, you will pay out of pocket for anything your underlying policy doesn’t cover.

What If I Don’t Have Umbrella Insurance?

If a claim is brought against you and you do not have sufficient coverage from your underlying policies, anything you own can be seized to cover costs — that can include your house, your car, your investments, your retirement accounts, and your checking and saving accounts. Your future income can also be considered as an asset, causing your wages to be garnished.

How Does Umbrella Insurance Work?

Usually, you won’t turn to your umbrella policy unless a claim has been made against you, the policyholder, by someone who believes you have wronged them in some way. First your underlying policy — most likely your homeowners, renters, condo or auto insurance — will pay out its maximum reimbursement, then your umbrella insurance coverage will kick in. The umbrella insurance company will pay the remaining settlement amount up to the limits of your umbrella coverage. Once you have exhausted both your underlying policy and your umbrella limits, you are responsible for any remaining amount due.

How Much Does Umbrella Insurance Cost?

The cost of coverage — or premium — for a personal umbrella policy typically starts at around $150 to $400 annually for a $1 million policy. Commercial umbrella insurance for smaller companies can range from $500 to $1,000. Your annual premium will increase if you decide to purchase more coverage — but it’s often possible to double the amount of your coverage and increase the policy limit to $2 million with only a 50% increase in your premium.

Whether you need personal or commercial umbrella coverage, we can analyze your complete liability picture — including the inherent geographical risks you face — and recommend an individualized insurance plan for you. Give us a call at 833-359-0725 or email us to learn more.

Source: Trusted Choice®

In a previous post, we addressed why insurance premiums are rising across the board. When insurance companies suffer losses due to an increase in claims from auto accidents or damage to homes from catastrophic storms, they typically increase premiums to offset the costs.

Due to hardening property markets and rapidly increasing catastrophic losses, we are seeing some homeowners insurance companies withdraw from the market and others are going out of business. Although this doesn’t happen very often, it is possible if they run into financial trouble. As a result, homeowners are finding insurance options to be limited and rather pricey.

While we proactively shop our clients’ policies when we see abnormal rate increases, it’s important to inform us of any updates to your home and/or auto(s), as it may help lower your premiums. For example, did you recently install a new roof or windows or renovate your home? Have you taken a defensive driving course within the last year? Would you consider utilizing a telematics device to track your driving habits for a period of time? Have you bundled all of your insurance policies with us? As a South Carolina Federal Insurance Solutions client, you may be eligible for a multi-policy discount, even if your policies are with different carriers.

We monitor insurance carriers to better help our clients should one become financially unstable or insolvent. We will continue to take a critical look as we bring on new carriers, focusing on ratings, financial size, and strength to offer our clients a broad selection of products.

Do you have questions about your policies? Give us a call at 833-359-0725 or email us for information.

South Carolina has experienced nearly 50 earthquakes since January 2021¹. Although only a few of these have been felt, this is a significant increase over our normal average – just 10 to 15 per year².

Despite the fact that approximately 70% of earthquakes in South Carolina occur in the Coastal Plain and most are centered around three areas west and north of Charleston (Ravenel-Adams Run-Hollywood, Middleton Place-Summerville, and Bowman), a major earthquake anywhere in the eastern United States could adversely affect us³.

While purchasing earthquake insurance might not be at the top of your to-do list, it might be time to start researching your options. At South Carolina Federal Insurance Solutions, we have carriers with deductibles as low as 2 – 5%. Some carriers will include earthquake coverage as part of your homeowners insurance, and others offer standalone policies. Interested in learning more about earthquake insurance? Give us a call at 833-359-0725 or email us.

¹ https://earthquake.usgs.gov/earthquakes/search/
² https://www.scemd.org/prepare/types-of-disasters/earthquakes/
³ https://www.dnr.sc.gov/geology/earthquake-info.html