The City of Greensboro and
surrounding areas within Guilford County have a number of waterways that may be
subject to flooding during and after heavy rains, as can be seen here on this
local area regulated flood plain map. Floods represent some of the most
damaging and costly disasters to which property owners can be exposed. Being
aware of potential risk areas and having proper protection in the way of flood
insurance are important aspects of having a home or business in affected areas. Here’s
an informative map put out by the NC Flood Risk Info System
that lets you click on your county and enter any address to determine specific
flood risk levels.
How Flood Insurance Works
Flood damage is a peril not
covered within a general homeowner’s insurance policy. Flood insurance coverage
must be purchased separately from your homeowner's policy. While this type of
insurance is sold through your insurance agent, it’s actually made available only
through the federal government’s National Flood Insurance Program (NFIP). It
cannot, however, be purchased directly from the government, but must be
obtained through an insurance company. Premiums do not change from one company
to the next, and the specific rates are determined by the NFIP in
accordance with certain factors such as flood risk level for a specific area
plus the date and type of building construction involved. In most cases,
there’s a 30-day waiting period after issuance before the coverage is active
and premium payments must be made for an entire year.
What’s Covered
Coverage provided by flood
insurance is spelled out on several government websites, including here. Coverage is applied to both buildings, and the personal
possessions found within them, with certain exclusions such as currency, most
valuable papers (such as stock certificates) and precious metals. Building and
personal possession coverage is treated separately, with each having its own
deductible amount.
Detached garages are covered (up
to 10% of building coverage), however, other detached structures require a
separate policy. Building coverage includes electrical, plumbing, major
appliances, window blinds and permanently installed carpets, paneling, cabinets
and bookcases.
Personal
possessions coverage includes:
- Clothing
- Furniture
- Electronic
equipment
- Washers
and dryers
- Portable
appliances
- Carpets
not covered under building coverage
- Freezers
(including food stored within)
- Original
artwork, up to a maximum value of $2,500
Items not covered include most
vehicles, items located outside the insured building like pools, fences, decks,
landscaping, etc.
There are plenty of valid reasons for
purchasing life insurance, all of which relate directly to providing funds in
the event of premature death of the insured. All that’s required in order to
obtain a policy is to be the named insured or have an “insurable interest” in that person and have the ability to pay the premium.
Term vs Whole Life
There are two main types of life insurance:
term and whole life. Term insurance has one single benefit, derived should the
insured die during the term of the policy. At this point, the beneficiary is
paid the face amount stated in the policy. Term insurance is issued for a
specific time period, or term, after which point it expires and must be renewed
to obtain continuing coverage. It is relatively inexpensive and easy to
purchase. Terms generally last between one and thirty years, during which time
the premium charged for the coverage remains level. At subsequent renewals,
premium amounts increase due to the increased age of the insured, which means
higher risk that the insurer will pay out on the policy.
Whole Life
Whole life coverage is usually more difficult
to obtain, requiring a medical examination, and it's also more expensive
initially. Its coverage is meant to last the insured his/her lifetime, during
which premium payments remain level. In addition to the death benefit, whole
life also has a cash accumulation feature that slowly builds up over the years.
This accumulation may be used to lower premiums, to increase face value or as a
source for borrowing. Some whole life policies may also pay annual dividends.
Which is Better?
Term life insurance is what’s typically sold
to cover the risk assumed when buying a vehicle or a home. In the event of
premature death, funds would be available to pay off the loans, leaving the
family of the insured unencumbered by these debts. Policies would be written to
cover the time frame (term) the loans are active. Because term life insurance
usually costs a fraction of what whole life costs initially, it allows young
families on a tight budget to obtain maximum coverage for an affordable monthly
premium.
For those able to afford higher premium
amounts, whole life insurance is worth considering because of the lifetime
coverage and the built-in cash accumulation feature. Your best bet is to
discuss the benefits of each with your professional life insurance agent.
If you have a business here in the Triad area
and you’re not carrying an adequate amount of quality business insurance,
you’re running a huge risk. No matter what your business, whether it’s a small,
home-based, one-person operation or a large enterprise employing lots of
people, obtaining the proper level of business insurance should be first and
foremost on your list of required items to ensure the health and success of
your business. The reason is simple.
A single, unfortunate occurrence involving
your business could literally wipe you out tomorrow and severely affect your
financial well-being for the rest of your life. This is especially true for
incidents involving a liability claim against your business, one of your employees
or against you personally. Even something as seemingly innocuous as a
slip-and-fall accident that ends up seriously injuring one of your customers –
even someone who's simply visiting your home office for a consultation – could
end up costing hundreds of thousands of dollars. Without adequate business
insurance coverage in force, your business and even all of your personal assets
are at risk.
Things to Consider
The first mistake you should avoid regarding
the purchase of business insurance, as already mentioned, is to think you don’t
need it or can’t afford it. Every business owner needs business insurance,
without exception, and affording it is a small price to pay in exchange for the
amount of protection against risk it provides. Here are some additional
mistakes to avoid:
- Don’t pick the wrong carrier. The best coverage will come from
a top-name, A-rated company with a history of financial stability and fair
claims payoffs..
- Get the right type of protection for your type of business. Your
business has unique needs and your policy should be custom designed to fit
these. A dentist, for example, has different risk priorities than a
retailer, although a certain overlap in some requirements will be present.
- Too much protection is better than
not enough. Your
protection needs to cover all of your assets. An umbrella policy is a good
option to ensure adequate protection.
- Once
a policy is in place don’t make the mistake of just leaving it as is
forever. Coverage needs to be
re-evaluated every year or two, or whenever major changes
occur in the business.
Business insurance is incredibly important to
have in place before something happens. If you wait, you’ll have waited too
long.
