Author: Robin Easterlin

As the year comes to a close, you may be spending time reflecting on the last year and celebrating all that you have accomplished. Or perhaps you are busy setting resolutions and looking forward to new beginnings. Either way, the end of the year is an ideal time to reassess your insurance needs. Any financial changes made this year or anticipated for the next year could impact your coverage. Your South Carolina Federal Insurance Solutions advisor is here help you:

Understand policy changes

Reviewing your coverage allows you to stay up-to-date with any adjustments that might affect your coverage, deductibles, or premiums. 

Account for life events

Did you experience any major life events, such as getting married or having children? Did you complete a big home renovation or purchase a new car for yourself or someone in your household? If you answered “yes” to any of these questions, you may need to adjust your home or auto insurance policies. 

Identify coverage gaps

Over time, your insurance needs will likely change. By reviewing your policies on a regular basis, you can identify any areas where you may need to add or adjust coverage. For example, you may have insured your home for $200,000 when you first bought it. Due to recent inflation and supply chain issues, your home may cost $300,000 to rebuild. That is a $100,000 gap in coverage, which could leave you without the proper resources to rebuild in the event of a loss.

Experience peace of mind

Enter the new year with confidence, knowing that you have reviewed and updated your insurance coverage to financially protect your changing circumstances. Our team of experienced advisors at Insurance Solutions is here to help. Contact us today to schedule your complimentary insurance review.

Business insurance, also known as commercial insurance, protects your company from financial losses caused by unexpected events such as property damage, worker injury, data breaches, and more. Commercial insurance policies are different from personal insurance policies because they protect a business, not an individual. Whether you are just starting out or have been in operation for some time, having the right insurance coverage can help you sustain your business for years to come.  

Does my business need insurance?

Commercial insurance is not legally required for all businesses. However, certain types of coverage may be mandatory depending on specific industry and state regulations. In South Carolina, businesses with four or more employees are required to carry workers’ compensation insurance to cover medical bills for work-related injuries. In addition, all business-owned vehicles in South Carolina must be covered by commercial auto insurance. Regardless of legal requirements, business owners should strongly consider investing in commercial insurance to minimize personal liability in the event of a loss.   

For example, if you run a home-based business, your homeowners insurance policy alone may not offer adequate protection. Business assets such as equipment or product inventory may not be covered in an unexpected loss, and if someone injures themselves during a business-related visit to your home, you could be liable for their medical bills. Without the right coverage in place, you may have to pay out of pocket for these types of claims, which is not sustainable for many business owners.

What are my coverage options?  

Every business has different needs and faces unique risks, which is why there are several types of commercial insurance policies to consider.

• Commercial general liability insurance can help cover the cost of any accidental damages as a result of the business’ operations. If a visitor is injured at your business or one of your employees damages someone else’s property, general liability coverage may help pay for the injured party’s medical expenses or property repairs. It may also help pay for legal costs if you are taken to court over an accident that occurred at your business.

• Commercial property insurance protects your business’ physical location and other business property like tools, equipment, inventory, and furniture.  In general, commercial property insurance does not protect against damage from floods and earthquakes. If your area is at risk for these events, you may want to consider adding on a separate policy.

• Commercial auto insurance protects you and your employees on the road while using company-owned vehicles. It can help cover the cost of property damage and medical expenses following an accident.

• Cyber liability insurance can protect your business from risks associated with a data breach if confidential information gets lost or stolen. Cyber insurance can help cover costs to notify impacted individuals and even offer credit monitoring services.

How do I know what type of coverage I need?

The type of commercial insurance you need can depend on several factors including your business’s size, location, and industry. Working with an insurance advisor can help you determine your exposure to risk and identify policies that meet the unique needs of your business. Whether you are starting a new venture or simply want to reevaluate your options, rely on South Carolina Federal Insurance Solutions for customized commercial insurance coverage.

When it comes to protecting your property against the elements, preparation is key. As temperatures drop, it is important to take precautions against seasonal risks. Even with comprehensive coverage, damage to your home or vehicle can lead to costly insurance claims that raise your overall premiums. The most cost-effective way to combat cold weather damage is to reduce your exposure to risk. Learn how proper maintenance can help you avoid the most common winter insurance claims.

Frozen pipes

As temperatures drop, water may freeze inside the pipes within your home. Not only can frozen pipes prevent water from flowing properly, but they can burst and cause significant damage. When the forecast predicts freezing temperatures, make sure your home is heated to at least 65 degrees and let water drip from your faucets to prevent a potential plumbing disaster. If you plan on being away from your home for an extended period during the winter months, remember to shut off your water and drain your pipes.

Falling trees

The trees on and around your property can become a hazard to you, your home, your car, and others with the onset of winter weather. Snow, wind, or ice can cause a tree that is structurally weak to fall and damage the surrounding area. Falling trees may also come into contact with power lines, which can result in entire neighborhoods losing electricity during the coldest time of the year. Keeping trees trimmed and removing dead branches from your yard can reduce the risk of damage.  

House fires

According to the National Fire Protection Association, house fires become more common in the winter months. This is because as temperatures drop and we experience fewer hours of sunlight, more people spend time indoors and increase their use of heat and electricity. At the start of the season, make sure all heating equipment is in working order and have your chimney cleaned and inspected by a qualified professional. Keep flammable materials at least three feet away from all sources of heat including holiday lights and turn off electronics when not in use.  

Auto repairs

Winter conditions can take a toll on your vehicle, so it is important to keep up with seasonal car maintenance and stay vigilant while driving. Cold weather impacts your car’s ability to start the engine, so make sure your battery is healthy and not cracked or corroded. It is also important to check that your tires are inflated properly, as low temperatures can cause air pressure in your tires to drop and reduce the traction of your vehicle on icy roads. Additionally, the heater and defroster must be in good working condition for passenger comfort, driver visibility, and pedestrian safety.

Even when you exercise caution and take steps to prepare your property for winter weather, accidents can still happen. An annual review with your South Carolina Federal Insurance Solutions advisor can help you determine if you have enough coverage to protect your home and vehicle in the event of an emergency. Contact us today to review your coverage so you can enjoy the holiday season with peace of mind.

Hurricanes and tropical storms are famously unpredictable, which can make preparing for inclement weather especially challenging. However, there are steps you can take to protect your property and provide you and your family peace of mind long before a storm hits the radar. Here are some things you can do in advance of hurricane season.

Review your policy and identify any gaps in coverage

As your life changes, so do your insurance needs. By reviewing your policies on an annual basis, you can identify any areas where you may need to add or adjust coverage. For example, you may have insured your home for $200,000 when you first bought it. Due to recent inflation and supply chain issues, your home may cost $300,000 to rebuild in today’s market. That is a $100,000 gap in coverage, which could leave you without the proper resources to rebuild in the event of a loss.

An insurance review can help you understand what sort of damage may not be covered under your existing policies. For example, it is a common misconception that a standard homeowners insurance policy protects against flood damage resulting from severe weather events. Regardless of whether you live in a flood zone, flood insurance can help you protect your home and its furnishings against these damages, potentially saving you thousands in out-of-pocket expenses. Talk to your South Carolina Federal Insurance Solutions advisor about your risk of flood damage, or get a quote in minutes from Neptune Private Flood Insurance.

Be prepared to pay your deductible

As a result of rising insurance costs, many homeowners are experiencing an increase to their deductibles. In some instances, insurance carriers have increased deductibles on policies in an effort to pass along rising claims costs to consumers. In other cases, consumers are opting for higher-deductible policies to help lower premium costs. Either way, it is important to understand how an increased deductible will impact your budget if you need to file a claim. 

A typical hurricane deductible can range from 1% to 5% of a home’s insured value. If your home is insured for $500,000 and your hurricane deductible is 3% of your home’s insured value, in the event of a total loss, you will be responsible for paying $15,000 towards damages before your policy kicks in.  

If you are not sure how you would pay a large deductible, you are certainly not alone. In fact, many adults do not have enough emergency savings to cover repairs in today’s market. Whether you are just getting started or want to ramp up your savings, South Carolina Federal Credit Union’s complimentary financial wellness platform has tools to help you build your emergency fund. Click here to get started.

Create a home inventory

A home inventory is a detailed log of all of your possessions. Many insurance carriers recommend keeping an up-to-date home inventory, as it can help ensure you have enough coverage and save time and stress when filing a claim.

Your home inventory should account for nearly every item in your household. From appliances to furniture, and all of your miscellaneous items in storage, your list should be comprehensive and include the following:

1. Item description including the serial or model number. If possible, use photos or videos to record everything inside and outside of the home and other structures on the property.
2. Cost and date of large purchases with sales receipts or appraisals.
3. Estimated replacement cost of each item.

Assembling a household inventory may feel like an overwhelming project. However, completing it in advance of a severe weather event can save you valuable time once a storm is projected for your area. Once you have completed your home inventory, do not forget to store it in a safe deposit box or another location where it can be accessed easily in an emergency! Remember, you can adjust your insurance policies at any time, though, you may experience a 30-day waiting period before coverage goes into effect. Hurricane season starts June 1, which means homeowners should plan ahead to ensure coverage is in place before a storm hits the forecast. To get started preparing for hurricane season, contact us to schedule a complimentary review of your coverage.

Floods are the most common and costly natural disaster in the United States. However, according to the National Association of Insurance Commissioners, only about 15% of homeowners have the correct policies in place to cover their home and belongings for flood-related damage^*. At South Carolina Federal Insurance Solutions, we are committed to helping you understand available coverage options and select a policy that fits your unique situation. We have compiled a list of frequently asked questions to help you navigate the world of flood insurance.

Does my homeowners insurance policy cover flood damage?

Many homeowners believe that they are covered for flood damage by their homeowners insurance policy. However, flood coverage is excluded by most homeowners policies.  

How can I distinguish flood damage from other water damage that IS covered under my homeowners insurance policy?

Under most homeowners insurance policies, if water damage occurs suddenly or accidentally from a source inside your home, such as a busted pipe, it will likely be covered. The primary difference is that with a flood, the water comes from a natural source, such as storm surges, inland flooding caused by bodies of water overflowing, or flash floods.

How much damage can flood water cause?

According to FEMA, just one inch of water can cause $25,000 of damage to your home. Floods can cause power, water, and gas outages; pollute drinking water systems; damage homes and buildings; and cause severe environmental problems. Also, flooding can cause fatalities and serious injuries when people do not heed evacuation orders.  

I do not live in a flood zone. Do I still need flood insurance?

Many homeowners believe that they only need flood insurance if their mortgage lender requires it. However, you do not need to live in a high-risk flood zone or near the coast to be at risk. Wherever it rains, it can flood, regardless of your proximity to a body of water. According to FEMA, 99% of counties in the United States have been impacted by flooding.

How can I obtain flood insurance?

The majority of flood coverage in the United States is issued by the National Flood Insurance Program (NFIP). This program is managed by FEMA and offers flood insurance to homeowners in participating communities. However, homeowners can also look to private flood insurance companies to secure coverage at more competitive rates. Private flood insurance may be a good option for those seeking more coverage options than the NFIP offerings, need higher limits of coverage, or are looking for savings.

Insurance Solutions is proud to offer flood coverage through Neptune Private Flood Insurance. Neptune allows you to tailor your policy to cover more of your assets and provides flexible offerings that go above and beyond the limitations of NFIP. To get started, visit their quick self-quoting option or reach out to your Insurance Solutions advisor to schedule a comprehensive review of your policies.

^* https://content.naic.org/sites/default/files/cipr-jir-2023-1.pdf 

As inflation continues to take a toll on household budgets across America, more workers are considering picking up a second job to help make ends meet. Unlike part-time employment, a side hustle allows an individual to retain control over the work they do and the hours they devote to it. These ventures can include tutoring, dog walking, video editing, rideshare driving, and countless others. In fact, a recent study from Fiverr found that 74% of American workers plan on starting or continuing a side hustle in 2024. ^*

As individuals take on side hustles to generate more income or out of a desire to operate their own businesses, they also take on risks. If you are considering adding a side hustle to your income stream, the first thing you need to understand is what risks are not covered by your existing insurance policies. While your current home and auto coverage may offer some protection, even the smallest side hustle could severely damage an individual’s finances without the appropriate insurance policies in place.

Liability Insurance

Your homeowners policy likely includes liability insurance in case someone gets injured in your home. However, the coverage does not typically extend to a home-based business. If a client slips and falls while visiting your home office, your home insurance may not cover the resulting medical or legal expenses should that individual decide to sue. Additionally, if you are renting out a room or your entire home on an app like VRBO or Airbnb, coverage may be excluded for any losses. 

Cyber Insurance

If your side hustle relies on technology to collect payments or customer data, it is wise to consider purchasing cyber insurance. In the unfortunate event that a hacker steals your customers’ credit card data, would you be able to recoup your losses? Cyber insurance can protect you and your business in the event of a data breech, whether your computer is hacked or your phone containing sensitive information is stolen.

Auto Insurance

Some automotive policies are for personal use only, while other may cover a business-related accident with limited coverage. If your side hustle involves driving and you get into an accident, do you know whether your insurance will cover you? If you are employed as a rideshare or delivery driver, you need to know whether the company’s insurance covers you and what the limits are for collision, liability, and medical.

Fire Insurance

Your existing homeowners policy likely provides coverage for losses incurred in a fire. However, that protection may not extend beyond your personal belongings. If you run a business out of your home, you may want to consider purchasing additional coverage to protect expensive office equipment or your business inventory in the event of a fire.

Regardless of the nature of your side hustle, adding on the right insurance policies can help keep business running smoothly. At South Carolina Federal Insurance Solutions, experienced advisors can help you evaluate your side hustle, assess your existing coverage, determine where your personal coverage ends, and identify gaps in your business coverage. Contact us today to get started!

^* Fiverr reveals top side hustles for 2024

Insurance plays a vital role in the day-to-day lives of nearly all Americans. As consumers, we invest in insurance policies to protect against financial losses due to unforeseen events, such as natural disasters, accidents, or illnesses. However, despite being a highly regulated industry, some insurance carriers ultimately end up failing.

What causes insurance carriers to fail?

Many factors can contribute to an insurance carrier going out of business, including regulatory changes, poor management, or falling victim to fraud. Sometimes, carriers receive an unprecedented number of claims following a catastrophic event, leaving them unable to pay out policyholders – this happens more often in states prone to severe weather such as hurricanes and tornadoes.

Regardless of the reason, all 50 states have systems in place to protect policyholders in the event an insurer goes out of business.

How are policyholders protected?

In order to obtain a license to sell insurance in a particular state, an insurance carrier must participate in the state’s guaranty association and pay into a guaranty fund. Guaranty funds are regulated by state law and serve to pay out active claims that an insurance carrier is unable to fulfill should they become financially impaired. However, it should be noted that many states, including South Carolina, only cover claims up to $300,000. To learn more about the South Carolina Guaranty Association, visit scguaranty.com.

It is possible for an insurance carrier to sell policies through a broker in states where they are not licensed. Commonly referred to as “non-admitted carriers,” these carriers are not required to follow the same state regulations as licensed or “admitted” carriers. Non-admitted carriers offer flexible policies that may be considered too complicated or too high-risk for state-backed carriers. However, it is important to know that claims on these policies will not be paid out by the state if the insurance carrier fails.

Will I be notified if my insurance carrier goes out of business?

Once an insurance carrier decides to cease operations, policyholders will receive notification alerting them of the closure and be given a date which their policies will be cancelled. Those with an open claim will be contacted by the state guaranty association with additional instructions on how to proceed.

What happens next?

If you are notified that your insurance policy is being cancelled due to the carrier going out of business, remember these tips:    

• Don’t panic! If you have an active claim, insurance guaranty funds are designed to protect policyholders if an insurer is incapable of paying.
• It is imperative that you continue paying premiums to keep your coverage intact while you search for another insurer. This is especially important if you have an open claim.  

Before you shop around for a new policy, contact your South Carolina Federal Insurance Solutions advisor. Our experienced advisors stay up-to-date on carriers entering and exiting the local market and can help you find the best policy for your personal needs and budget.

According to a recent IBM report¹, more than 550 organizations experienced a data breach this year. Given the rapid advancement of technology, it should come as no surprise that every business, regardless of size, is exposed to cyber risk in some capacity.

As cyberattacks become more frequent and sophisticated, it is increasingly important for business owners to minimize cyber risk and protect sensitive customer data. At South Carolina Federal Insurance Solutions, we understand that recovering from a data breach can be costly for businesses. That is why we offer solutions beyond standard commercial insurance.

What is cyber liability insurance?

Cyber liability insurance covers a company’s liability for a data breach involving sensitive customer information, such as social security numbers, bank account information, and health records. While general liability insurance covers bodily injury or property damage claims, protection against cyber risk is typically not included.

What does cyber liability insurance cover?

Cyber liability insurance can help companies comply with state regulations that require businesses to notify customers of a data breach involving their personal information. Depending on what options are selected, these policies can also reimburse businesses for the cost of recovering compromised data, repairing computer systems, covering bank fees associated with canceling stolen credit cards, and subsidizing lost income.

Does my business need cyber liability insurance?

If you use technology in any part of your business, it is not a matter of if cyber threats will arise, but rather when. In addition to money and data theft, businesses should consider other risks such as employee productivity loss and reputational issues that can occur as a result of a serious cyberattack.

Your Insurance Solutions advisor can help you understand and assess your business’s cybersecurity risks. Contact us today to get started.

¹https://www.ibm.com/reports/data-breach