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What is Replacement Cost Versus Actual Cash Value?

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Your home insurance policy will determine whether personal property claims are reimbursed based on their actual cash value or at replacement cost, and damages to the structure of your home are typically assessed according to its replacement cost. It’s important to ask your Modern Risk Management representative for more specific information on what coverage would be included in your terms of service. 

What is Replacement Cost Versus Actual Cash Value?

Homeowners insurance is not a legal requirement for Houston, TX residents, but most lenders will compel you to purchase indemnification when you have an outstanding loan on your house. 

When calculating the actual cash value, an insurance company typically subtracts the years of wear and tear from the original value of an item that was damaged or destroyed. If the claim is approved, this is the amount you will receive after your deductible is met. All payments must also fall within the limits of your policy. Actual cash value is sometimes also referred to as depreciated cash value. 

Replacement value only takes into account what it would cost to provide you with a comparable item. It doesn’t consider the wear and tear to your possession, and it also gives you the benefits of operating according to today’s prices. The years you owned the item are not held against you. 

Premiums will often be lower if you choose to insure for actual cash value rather than replacement value, and it’s good to do inventory and weigh your options. Consider how old your most valuable belongings are and how much it would cost to replace them at the rates in the current market. 

Modern Risk Management is Here to Help

Let us meet all your insurance needs by reaching out online, calling, or stopping at the office. We serve those residing in the Houston, TX area and look forward to working with you. 

I don’t live in a flood zone. Should I still consider flood insurance?

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It’s common sense that flood insurance is an obvious necessity if you live in a flood zone. In fact, many mortgage companies require homeowners to carry flood insurance if they live in a flood zone. This is primarily because homeowners insurance doesn’t cover flooding.

However, flood insurance may also be a worthwhile investment for those that don’t live in a flood zone. Modern Risk Management is here to educate Houston, TX residents on the benefits of flood insurance.

What is Flood Insurance and Why do I Need it?

Flood insurance is designed to cover any damage to your home, the structures on your property, and your personal belongings, as a result of flooding. Homeowner’s insurance doesn’t cover flood damage. This is why investing in flood insurance is practical, especially if you live in a flood zone. 

I don’t live in a Flood Zone. Should I Still Consider Flood Insurance?

Flood insurance is a wise investment even if you don’t live in a flood zone. Many people would be ill-prepared to cover the damage caused by an unexpected flood. In fact, many flood claims come from people who live in areas that aren’t considered flood zones. Some would say, "better safe than sorry." It’s best to have the coverage, even if you don’t live in an area prone to flooding.

Also, flood insurance can be affordable. People who choose to rely on federal help in the event of a flood may receive limited funds to take care of flood damage. The damage caused by floods can be costly and expensive to repair. Flood insurance provides a safety net to get the repairs you need if your home or belongings are damaged by flooding.

We Are Here To Help

If you have questions about flood insurance, we can help. Call us at Modern Risk Management in Houston, TX. We’re standing by.

Don’t Let Your Business Remain Unprotected – Commercial Insurance is the Answer

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Are you a business owner? Do you have the proper insurance coverage to protect your livelihood? Modern Risk Management helps business owners in and around the Houston, TX area protect their businesses with commercial insurance.

Why Commercial Insurance?

Businesses need this coverage because it helps cover the expenses associated with liability claims. It protects business assets, property, and income, and provides a financial safety cushion. In the event something unfortunate happens to your business, you could be faced with property damages, demands for medical compensation, business interruption, lawsuits, or all of these things.

Commercial insurance coverage protects your business property against damages or loss caused by specified perils as outlined in your policy, such as fire, windstorms, explosions, and theft.

It is important to note that a general liability insurance policy will not help a business with commercial auto accidents caused by you or your employees while driving for work. A commercial auto insurance policy is required to cover the cost of damages.

Without commercial insurance coverage, business owners are required to pay for legal claims and costly damages against their company out of pocket.

Commercial or business insurance is usually a contract for one year that agrees to handle the business liabilities for a set amount of money determined at the beginning of the policy term. This amount is set by the amount of property you own or the liabilities you are exposed to.

Oftentimes, the terms “commercial insurance” and “business insurance” are confused. They are actually the same thing, and the terms can be used interchangeably.

Commercial insurance or business insurance saves you time, money, and stress. Your business is protected from damage, and it provides benefits for your employees.

Get The Right Coverage Today

If you are a business owner in Houston TX, contact Modern Risk Management to obtain a quote or answer any questions you may have. You will be glad you did.

What Are The Benefits Of Life Insurance?

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Many people view life insurance as a necessary evil. It is something that you know you should have, but it is often put off because it is seen as an unnecessary expense. The truth is, that life insurance is one of the most important investments you can make. Modern Risk Management in Houston, TX will help you understand the top benefits of life insurance.

Life Insurance Benefits

1. Financial Security For Your Family In The Event Of Your Death

No one knows when their time will come, which is why it is so important to have life insurance in place in case something happens to you. If you are the breadwinner of your family, your death would leave them in a difficult financial situation. A life insurance policy ensures that your family will be taken care of financially if something happens to you. 

2. Life Insurance Can Be Used As A Tool For Financial Planning

Most people think of life insurance as something that only pays out after your death, but that is not always the case. There are some policies that allow you to cash out your policy or take out a loan against it if you need the money while you are still alive. This can be a good way to access funds for things like starting a business, funding your child’s education, or paying off debt. 

3. Life Insurance Can Help Pay For Final Expenses

After you pass away, your loved ones will need to cover final expenses like a funeral and any unpaid medical bills. If you have life insurance, these costs will be covered by your policy so that your loved ones are not left with this burden on top of everything else they are dealing with. 

Contact Us Today

Life insurance is one of the most important investments you can make for yourself and your family. It’s a way to feel more secure about your loved ones. It may be used as a financial planning tool, and it can also help you stay on track financially if something were to happen to you. If you don’t already have a life insurance policy, now is the time to get one. Contact Modern Risk Management in Houston, TX for your insurance needs.

Do I Need to Buy Flood Insurance If I’m Not In A High-Risk Area?

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Flooding can happen anywhere, and it’s not just a problem for people who live in high-risk areas. In fact, according to the National Flood Insurance Program, about 25% of flood insurance claims are from low and moderate-risk places. So if you’re wondering whether or not you need flood insurance, the answer is probably yes. Here we discuss some factors that determine your risk level and whether or not you should buy flood insurance.

Why You Need Flood Insurance in a Low-Risk Area

There are a few reasons you might need flood insurance, even if you don’t live in a high-risk area. First, just because your area isn’t considered high risk doesn’t mean it can’t flood. Flooding can occur anywhere there is heavy rainfall or melting snow. It doesn’t have to be a hurricane or other natural disaster to cause problems.

Second, your home could still be at risk even if your area isn’t prone to flooding. If your home is near a body of water that could overflow in a heavy rainstorm, you might consider buying flood insurance. Finally, if you have a mortgage on your home, your lender might require you to buy flood insurance.

How to Determine Your Risk Level

There are a few ways to determine your risk level for flooding. The first is to check the FEMA Flood Map Service Center to see if your home is in a high-risk area like Houston, TX. If it is, you’ll probably be required to buy flood insurance.

You can also check with your local floodplain manager to see if there are any special flood hazard areas near you. Even if your home isn’t in a designated high-risk place, you might still be required to buy flood insurance if it’s located in a special flood hazard area. Talk to a reputable agency such as Modern Risk Management to learn more about your flood insurance needs.

Give Us A Call

Flood insurance is not required if you don’t live in a high-risk area, but that doesn’t mean it isn’t a good idea. Modern Risk Management in Houston, TX can help you determine whether or not flood insurance is right for your situation. If you’re unsure, talk to our insurance agent to get more information.

Motorcycle Insurance Tips: 5 Defensive Driving Strategies

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Whether it’s basking in the summer sun or cruising on a brisk, fall night, motorcycle riding can be enjoyed all year long in Houston, TX. Motorcycle insurance can help protect you during every season too.

Yet even a great policy can’t replace prevention. Excessive speeds, distracted driving, and unexpected hazards make roadways especially dangerous for motorcycles. It’s imperative to remain proactive and vigilant.

That’s why Modern Risk Management prioritizes your safety. With this in mind, the Houston TX agency shares five defensive driving tips to ensure you’re protected.

Motorcycle Insurance Tips: What You Need To Know

Dress right

Safety gear isn’t just recommended. It’s essential. Gear up by wearing proper helmets, eyewear, and gloves. Long pants and sleeves add an extra layer of protection against wind and debris.

Be visible

Motorcycles are already tough to spot. Stand out. Maximize visibility with bright-colored, reflective clothing. At night, use headlights, turn signals, and horns as needed.

Leave space

Another way to make yourself more noticeable is to leave a greater distance between you and other drivers. Avoid blind spots and tailgating too closely. If you’re looking for increased safety, opt for less-traveled routes. Fewer motorists present fewer potential problems.

Pass safely

Improper passing, lane switching, or overtaking is one of the leading causes of accidents. Don’t pass on corners or curves, but also be mindful of drivers that are changing lanes ahead of you.

Improve techniques

Practice and experience are key. Get more comfortable by simply getting out and riding. New riders may also benefit from enrolling in a training or safety course.

Contact Us Today

Modern Risk Management can’t prevent accidents from occurring in Houston, TX. But we can ensure you’re protected. In addition to these helpful tips, we at Modern Risk Management can create an individualized motorcycle insurance policy that’s right for you. Set up an appointment today.

How Much Coverage Do I Need For My Boat?

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Purchasing a watercraft is a considerable investment, and it’s crucial that you have sufficient insurance coverage for your vessel. Many boat owners in Houston, TX have difficulty figuring out how much coverage they need for their boats. Here is a guide to how much coverage you need for your boat by experts at Modern Risk Management. 

How Much Coverage Do You Need? 

Property Coverage

Property coverage for boats protects the vessel against theft damage due to sinking or an accident. Your boat will be protected whether it’s on land or water. You have the choice between actual cash value or agreed value (replacement cost coverage) in case your boat is stolen or totaled. Which of the two coverage options you pick will influence the cost of your boat insurance and the settlement amount you will receive from the insurance company later when you file a claim.

Liability Insurance

Liability insurance for boats protects against financial liability resulting from your vessel damaging someone else’s property, including another person’s watercraft. It also covers any financial repercussions that may arise from your watercraft injuring someone else. Moreover, it covers damages caused by others to your vessel, such as a large wake, and takes care of your legal fees if you are sued over a matter covered by the policy.

Medical Payments Coverage

This boat insurance coverage will take care of the medical bills if you or the passengers in your vessel are injured in a boating accident.

Uninsured Watercraft Coverage

An uninsured watercraft coverage pays for your medical bills in case an uninsured boater strikes your vessel

Boat Insurance Add-Ons

Depending on your vessel, its use, and other factors, you might need watercraft insurance add-ons. These include boat trailers, special equipment like fishing gear, towing, boating accessories like radar, dock contract liability, ice and freezing, fishing guide coverage, personal property, and mechanical breakdown. 

Are you looking for insurance advice in Houston, TX? The insurance experts at Modern Risk Management are ready to answer all your questions. Call us today.

Do You Need Umbrella Insurance for Business or Personal Coverage?

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You can add umbrella insurance to any personal or business insurance policy that includes liability coverage, but which do you need? Those who work from home or run a business from their Houston, TX  home may need to add umbrella coverage to both their home insurance and commercial coverage.

You can’t buy umbrella insurance by itself. This type of secondary insurance requires a primary insurance policy to add it to as an extension of the liability coverage. That means that your primary policy must include a liability component to qualify for an umbrella policy from Modern Risk Management.

What does umbrella insurance do?

When you purchase a primary policy, such as home insurance or business liability, that policy contains a maximum liability payout. With home insurance, it could be as low as 10 percent of the home’s value. A business policy openly states its coverage.

If a guest to your home or office sustains an injury while visiting you, liability insurance covers their medical care costs and pays any settlement due to them. In many cases, the coverage on a home or business policy doesn’t fully cover the amount needed. The rest comes out of your pocket.

To avoid this, many individuals and businesses buy an umbrella policy. When the liability coverage on the primary or main policy fully pays out, the umbrella kicks in to pay the rest. A million-dollar umbrella policy costs very little annually but provides huge protection.

Contact Us

Contact Modern Risk Management serving Houston, TX, to learn more about adding umbrella protection to your insurance package. Let us help you protect your financial security.

What Is Whole Life Insurance and Is It Right for Me?

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If you’re like most people, you think of life insurance as something that older people should buy. But the truth is, anyone can benefit from having protection against financial disaster. Modern Risk Management provides this guide for you to learn more about how whole life insurance works.

Whole Life Insurance FAQs

What is whole life insurance?

This is a policy designed to last for your entire lifetime. As long as you keep making payments, you’ll be covered.

Why would I want whole life insurance?

It is a great way to make sure that your dependents are taken care of financially if something happens to you. The premiums are usually higher than those for other types of life insurance policies, but the coverage is permanent.

How does whole life insurance work?

You’ll pay a set premium each month when you buy a whole life insurance policy. This premium will stay the same for the life of the policy. In addition, your policy will have a cash value that grows over time. Suppose something happens to you, and you have a whole life insurance policy. In that case, your beneficiaries will receive the policy’s cash value plus any death benefits that are owed to them.

Is whole life insurance right for me?

Everyone can benefit from having some form of life insurance, and whole life insurance is a great option for anyone who wants permanent coverage.

Get Whole Life Insurance in Houston, TX

Sometimes life can take unexpected turns, so it’s important to have a plan in place. This ensures that those you leave behind are taken care of financially. If you’re interested in whole life insurance, call Modern Risk Management in Houston, TX today. We’ll be happy to answer any of your questions and help you find the right policy for your needs.

 

Choosing a health care policy when you have a pre-existing condition

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If you are resident in the greater Houston, TX metro area and need health insurance, Modern Risk Management is here for you. Our team can help you select the right policy for your needs, even if you have a pre-existing condition. Call our office today and set up an appointment to learn more.

How to find a good health care policy when you have a pre-existing condition

Finding the right health insurance policy to meet your needs can often feel like an uphill battle! This is even more true when you are dealing with a pre-existing condition.

The best way to find the policy that will best meet your needs is to sit down with a local agent. When you can discuss your concerns with a live person sitting across from you, the chances that you will get the policy you need are much greater than trying to find something workable online.

Health insurance is often our greatest expense after housing costs. Make sure that your money is well-spent and that you are getting the protection you need. When you have a pre-existing condition, you need to work with someone who has a deep understanding of all of the available options. 

Experienced agents are able to break down your options in a way that is easy to understand. This can make the health insurance policy selection process a lot less stressful!

Learn more about your options today!

Modern Risk Management is here to help residents in the Houston, TX area with all of their insurance needs. If you need to find out more about health care options available for people with pre-existing conditions, give our office a call today!