Do You Need Flood Insurance?

Michigan, the Great Lakes State, is known for its prolific water resources: lakes, rivers, and abundant waterways. Water is undeniably beautiful. Many people choose to live on the water because it’s both calming and great for boating and other water sports. Unfortunately, it can also pose a significant risk of flooding to both homeowners and renters. Despite this risk, many overlook the necessity of flood insurance, assuming their standard homeowners or renters insurance policy will cover flood damage. In this blog we will talk about why flood insurance is a safeguard for Michigan residents, what the risks of forgoing this coverage are, and how to obtain it.

Understanding Michigan's Flood Risk

If you live in Michigan, you know that water is a regular part of life here. We get plenty of rain and snow. Michigan's unique geographical features also create various types of flooding, including:

Spring Flooding from Snow Melt - Runoff from snow melt at any time, even in the middle of winter, can overwhelm rivers and drainage systems, leading to flooding.

Heavy Rainfall - Intense or prolonged rain storms can lead to flash floods, especially in areas with poor drainage or near rising rivers.

Ice Jams - During the colder months, chunks of ice can block the flow of rivers, causing water to spill out of the riverbanks and flood surrounding areas.

Many Michiganders are unaware of their potential vulnerability to flooding, especially those who do not live in designated high-risk flood zones.

The Gap in Standard Insurance Policies

A common misconception that homeowners and renters have is that standard insurance policies cover flood damage. The reality is that most policies typically exclude flood damage, leaving residents without protection when a flood strikes. This gap in coverage can lead to significant financial pain. Repairing the damage to your home and replacing belongings after a flood can be very, very costly.

The Value of Flood Insurance

Flood insurance provides homeowners and renters with a crucial safety net, offering them peace of mind and financial protection. Here are some key reasons to consider adding flood coverage:

• Comprehensive Protection: Flood insurance covers damage to your home's structure and belongings caused by flooding, giving you much more protection than standard policies offer.

• Affordability: While the cost of flood insurance varies based on your location and the level of coverage, the National Flood Insurance Program (NFIP) offers affordable policies for both homeowners and renters. 

• Recovery Support: Beyond financial compensation, having flood insurance means support during the recovery process, helping your family rebuild and replace lost items more quickly and with less stress.

Obtaining Flood Insurance in Michigan

Michigan residents can purchase flood insurance through either the NFIP or private insurers. Here's how to get started:

A good first step would be to use FEMA’s Flood Map Service Center to help determine your property's flood risk. From there you can decide whether you would like an NFIP policy or prefer to go through a private insurer. NFIP policies offer up to $250,000 for property damage and $100,000 for personal property. Private insurers often offer higher limits.

If you have questions about flood insurance, speak with an insurance agent who can help you understand your options and navigate the process of obtaining coverage.

Floods are natural disasters. They often occur unexpectedly and wreak havoc on unprepared communities. For Michigan residents, the risk posed by the state’s extensive waterways makes flood insurance a wise investment. By adding flood insurance to your other coverage, you can protect yourself and your family from the financial and emotional toll of flood damage.

Don’t wait for the next flood warning to consider your options - contact us at Navisure Insurance Group today. 

Michigan Boat Insurance and Insurance for Other Watercraft

In Michigan you’re never more than 6 miles away from water and never more than 85 miles away from one of the Great Lakes. Between the Great Lakes and Michigan’s 11,000 inland lakes and over 300 rivers, our state is a haven for people who love boating and water sports. Owning a boat in Michigan is a uniquely delightful experience; however, with pleasure comes responsibility, and an important aspect of this responsibility is having the right boat and watercraft insurance. In this blog we will talk about Michigan boat insurance and the options you have for other types of watercraft insurance.

Boat Insurance in Michigan

If you’re a Michigan boater, boat insurance is not just a luxury—it's a necessity. The state's abundant waterways provide endless opportunities for enjoyment, but they also present a number of risks. From unexpected storms on the Great Lakes to the potential for boating accidents and theft, the right insurance policy ensures that your investment will be protected. Some marinas and loan agreements actually require proof of insurance to acquire or operate a boat, which means insurance is not only a wise choice but, in many cases, a mandatory one.

Types of Boat Insurance Coverage to Consider

Which types of boat or watercraft insurance do you need? There are a number to consider: 

Liability Insurance

Every boat owner should have liability insurance which covers damages to property and injury to others if you're found at fault in a boating accident. Given the potential for costly lawsuits, liability insurance is indispensable.

Physical Damage Coverage

This type of coverage protects your boat from theft, vandalism, and direct damage due to collisions with another boat, dock, or submerged object. Michigan has many different  boating environments, from crowded marinas to secluded coves, so, depending on how and where you intend to use your boat, if you want to be protected from risk, you should consider getting physical damage coverage. 

Uninsured/Underinsured Watercraft Coverage

Unfortunately, not all boaters are responsible and carry sufficient insurance. This type of coverage protects you if you're involved in an accident with a boater who does not have adequate insurance.

Personal Property Coverage

This type of insurance covers the items that people bring along with them when they go boating, from fishing equipment to electronics to any type of personal belongings. 

Towing and Assistance

Not every boat trip is smooth sailing. That’s why there’s towing and assistance coverage. If your boat should become disabled on the water, this will cover the costs of emergency services, including fuel delivery, towing to the nearest facility, and more.

How Much Will Your Boat Insurance Cost?

A number of factors can affect the cost of your boat insurance in Michigan. Larger boats and vessels with higher horsepower engines are typically more expensive to insure. It can also cost more if you intend to boat in the open waters of Lake Michigan rather than on a small inland lake. Where you store and moor your boat can impact your insurance rates, with certain areas posing more risks than others. And many insurers offer discounts to boaters who have completed certified boating safety courses.

Insurance companies often provide ways to reduce premiums. Completing boating safety courses, opting for higher deductibles, and bundling your boat insurance with other policies, such as your home or auto insurance, can result in significant savings. It's worth discussing these options with your insurance agent to tailor a policy that fits your budget while still providing you with enough protection from risk.

Summer in Michigan is right around the corner, and boating is such an enjoyable way to relax and enjoy the beauty of our state. By understanding the types of boating insurance available and the factors affecting your rates, you can make informed decisions about how to protect your boat, your finances, and your peace of mind. 

If you’re new to the boating community and you don’t know what kind of insurance would be best for your needs, contact us at Navisure Insurance Group. We will be happy to talk with you about boat insurance or any other type of insurance you might need. 

Insurance Terminology Simplified: Common Terms Explained

While having the right insurance can bring peace of mind as well as security for your family, getting the right insurance coverage can be a confusing process. There are so many industry-specific terms and phrases to understand that it can feel like trying to learn a foreign language. It’s easy to feel overwhelmed. Understanding insurance terminology is crucial to making informed decisions about your insurance needs, however. In this blog we will define some of the most common insurance terms to help you get caught up.

Common Insurance Terminology 

Let’s begin with some of the terms that you may be familiar with. 

Premium - A premium is the amount you pay for your insurance policy. Insurance companies may charge premiums either monthly, quarterly, or annually, depending on your policy. A good way to think of a premium is the subscription fee you pay for keeping your insurance active.

Claim - A claim is a formal petition made to an insurance company asking for a payment based on the terms of the insurance policy. Essentially, it’s how you ask your insurer to cover a loss or an expense. 

Deductible - In many instances, when you file a claim on your insurance, you will be required to pay a deductible. This is the amount you pay out of pocket for a claim before your insurance coverage kicks in. For example, if your home is damaged in a windstorm and you file a claim for $3,000, if your deductible is $500, you will pay the first $500, and your insurance will cover the remaining $2,500.

Copay - A copay is an abbreviated form of “copayment,” and it’s most commonly used with health insurance. This is a fixed amount you pay for a covered healthcare service, usually paid when you receive the service. The amount can vary by the type of covered healthcare service you receive.

Beneficiary - Most commonly used with life insurance, the term beneficiary refers to the person or entity designated to receive the death benefit of a life-insurance policy after the policyholder passes away.

Other Insurance Terms

The above terms you may have heard or used when talking about paying for or claiming insurance benefits. Now let’s go over some less familiar, but equally important, insurance words and phrases.

Policy Limit - This term refers to the maximum amount an insurance company will pay under a policy for a covered loss. Policy limits can be set for a time period such as annually, per loss, or over the life of the policy, depending on the insurance type and the insurer.

For example, let’s say you have an auto insurance policy with the following liability coverage limits:

• $250,000 for bodily injury per person

• $500,000 for total bodily injury per accident

• $100,000 for property damage per accident

If you’re found at fault in a car accident, your insurance will cover up to $50,000 for injuries to each individual involved in the accident, with a total limit of $100,000 for injuries to all people involved. Additionally, it will cover up to $25,000 for damage to another person's property (like their car, a fence, or a building)

If the costs of the accident exceed these limits, you would be personally responsible for the additional amount.

Endorsement - Endorsements allow you to customize your insurance policy to best meet your specific needs. This typically means an optional addition to an insurance policy that modifies the terms or coverage of the policy. For example, you might add an endorsement to a life insurance policy to provide additional coverage for accidental death. 

Adding an endorsement to an insurance policy usually increases the premium. The cost depends on the additional risk the insurance company takes on with the endorsement.

Exclusion - Exclusions are specific conditions or circumstances that are not covered by the policy. For example, common homeowners insurance exclusions would include: 

• Flood damage (typically requires separate flood insurance)

• Earthquake damage (usually requires a separate policy or rider)

• Wear and tear or maintenance issues

• Intentional damage caused by the homeowner

• Business activities conducted in the home

Understanding the exclusions in your policy is essential to avoid surprises when you file a claim.

Liability Coverage - This is a part of your insurance policy that protects you from being held financially responsible if you are found legally responsible for injuring someone or damaging their property.

Indemnity - This term refers to the principle whereby the insurance company compensates or secures the policyholder against losses or damages. This compensation is provided up to the limit of the actual loss incurred or the policy's maximum coverage limit, whichever is lower. The purpose of indemnity is to restore the insured to the financial position they were in before the loss occurred, without allowing them to profit from the insurance claim.

Underwriting - Insurance companies evaluate the risk of insuring a home, car, or individual’s health or life through the underwriting process which determines whether they will provide coverage and at what cost. Factors like health history, age, or driving record might be considered during this process.

Getting the Right Insurance Coverage

Insurance terminology doesn’t make for exciting reading, but understanding these terms can simplify the process of buying and using insurance. Knowing what the terms mean will help you to choose the right coverage for your needs and to understand what you’re paying for. 

If you have any questions about your insurance coverage or coverage you are considering adding, please contact us at Navisure Insurance Group. We will be happy to take the time to discuss your needs with you and help you make the best decision for your family’s safety and welfare.