Insurance

Does Your Business Need Flood Insurance?

Posted on by McGriff Williams in Insurance, Tips |

 Natural disasters can be devastating to businesses. While damage caused by some types of natural events—such as lightning or wind—will usually be covered by commercial property insurance, you need a special policy if you want protection from flood damage.

What is the definition of a flood?

A simple definition of a flood is an accumulation of water on normally dry land. The NFIP has a technical definition of a flood, which is as follows: A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from any of the following:

  • Overflow of inland or tidal waters
  • Unusual and rapid accumulation or runoff of surface waters from any source
  • Mudflow, which is defined as “A river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water. Other earth movements such as landslide, slope failure, or a saturated soil mass moving by liquidity down a slope, are not mudflows.”
  • Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above

What are the common causes of flooding?

Floods can have a variety of causes, and floods can occur even in areas that don’t typically flood. Some of the common causes of flood include:

  • Storm surges after hurricanes
  • Heavy rain causing flash-flooding
  • Overflowing rivers or streams
  • Broken dams or levees
  • Mudslides due to heavy rain on hills or mountainsides
  • Fast melting snow, which can cause floods when the ground is frozen and unable to absorb water
  • Blocked storm drains, which may cause a flood even with moderate rainfall
  • New urban development which changes natural runoff patterns and reduces the ability of the land to drain properly

Does My Commercial Property Insurance Include Coverage for Flooding?

No. Damage from flooding, including flooding generated by hurricane-generated storm surge, typically is not covered under a standard commercial policy, including a Commercial Package Policy (CPP) or a Business Owners Policy (BOP)

Is Flood Insurance REQUIRED for my business?

Flood Insurance is not a requirement. However, if you own a business inside or outside of the high-risk flood area, you own a building or lease an office, you should consider purchasing flood insurance for the protection and peace of mind it brings. Many business owners, particularly those in high-risk flood areas, may be required to have flood insurance. If you have a mortgage from a federally regulated or insured lender you may be required to obtain flood coverage.

Whether your business is located in an area of common flooding or not, commercial flood insurance is worth exploring. Contact our agents at (352) 371-7977 or contact us so we can help you get started.

Sources:

https://www.iii.org/article/does-my-business-need-flood-insurance

https://disb.dc.gov/page/business-commercial-flood-insurance-coverage-faqs

The Importance of Conducting a Home Inventory for Renters Insurance

Posted on by McGriff Williams in Insurance, Tips |

Renters insurance is an essential investment that can protect your personal belongings and provide liability coverage in case of accidents or damages. But to ensure you receive the compensation you’re entitled to, conducting a home inventory is important. Here’s why a home inventory is essential for renters insurance.

  1. Helps determine the right coverage amount.

A home inventory can help you determine the right coverage amount for your renters insurance policy. By creating a list of all your personal belongings and their value, you can ensure you have enough coverage to replace them in case of damages or theft.

  1. Provides proof of ownership.

A home inventory can provide proof of ownership for your personal belongings in case of a claim. It can help you provide evidence of the damaged, lost, or stolen items and their value. This can make the claims process smoother and ensure you receive the compensation you’re entitled to.

  1. Saves time and reduces stress.

Creating a home inventory may seem like a daunting task, but it can save you time and reduce stress in case of a claim. By having a comprehensive list of your personal belongings and their value, you can quickly provide the information your insurance provider needs to process your claim.

  1. Makes updating your policy easier.

A home inventory can also make updating your renters insurance policy easier. If you acquire new personal belongings or sell or donate items, you can update your inventory and ensure you have the right coverage amount for your policy.

  1. Helps you prioritize safety.

A home inventory can also help you prioritize safety in your rental unit. By creating a list of your personal belongings, you can identify potential hazards, such as overloaded electrical outlets or unstable furniture, and take steps to address them.

In conclusion, conducting a home inventory is essential for renters insurance. It can help you determine the right coverage amount, provide proof of ownership, save time and reduce stress, make updating your policy easier, and help you prioritize safety in your rental unit. Take the time to create a home inventory and ensure you have the protection you need for your personal belongings.

New requirement for Citizens flood insurance effective 4/1/23

Posted on by McGriff Williams in Home Insurance, Insurance |
Citizens Insurance is a Florida-based state-run carrier insuring residential and business properties all over the state. They used to be considered the insurer of last resort in Florida but have taken on more home policies than ever in the recent past so this news will be very impactful to many.
A new bill recently took effect that outlines some important changes regarding the requirement of flood insurance on Citizens home insurance policies. It states that Citizens personal lines residential policyholders must secure and maintain flood insurance that meets certain guidelines in order to be eligible for Citizens coverage at all.
The bill provides the following timetable for which flood insurance coverage must be implemented for personal lines residential Citizens policyholders:
  • For risks located in areas designated by the Federal Emergency Management Agency as special flood hazard areas, flood insurance must be secured for new Citizens policies with an effective date on or after April 1, 2023, and at renewal for Citizens policies that renew on or after July 1, 2023.
  • For all other risks, regardless of flood zone, the requirement to obtain flood insurance at policy issuance or renewal is effective:
  • March 1, 2024: policies insuring property for $600,000 or more
  • March 1, 2025: policies insuring property for $500,000 or more
  • March 1, 2026: policies insuring property for $400,000 or more
  • March 1, 2027: all other policies

 

This comes as a big change for Citizens policy holders that may not currently have flood insurance. For additional information or resources on flood insurance, please reach out to us anytime.

What exactly is MFA and why is it important?

Posted on by McGriff Williams in Insurance, McGriff-Williams News |

Although you’ve heard all the talk about cyber security and data breaches in the past, have you ever really thought about it happening to you? It’s no surprise but cyber crime has grown to the highest cost in the 17 year history of reporting, according to IBM. Currently, data breach costs are upwards of $4 million.

These attacks are happening more frequently and costing individuals and business owners more money. It could be that we have more work-from-home opportunities than ever before, better cyber technology making cyber criminals more efficient, or more vulnerability in the health and finance sector. It’s been predicted that right now, a cyber attack could occur ever 11 seconds, which is nearly four times the frequency recorded just five years ago.

There are several ways you can protect yourself but one of the most simple and important methods is unfortunately overlooked. As if we insurance folks didn’t have enough acronyms to talk about, here’s another one: MFA. Multi-Factor Authorization. MFA is a security method that requires the use of two or more authentication factors to verify a user’s identity. This is most commonly used for users accessing an organization’s network or using a personal or work email remotely. MFA just provides assurance that the user tapping in to private information is who they say they are and that they deserve access. This keeps data safe even if one set of a username and password is compromised. The use of MFA can stop cyber attacks in their tracks, blocking 99.9% of account-compromising attacks.

So we clarified that MFA is just a method of double checking one’s identity. In real-life terms, that just means that before one can access your accounts or email, they have to take an extra step so that at least two of the following three categories is confirmed:

  • Knowledge – something only that user knows like a password, answer to a personalized security question, or PIN
  • Possession – typically the device the user is on like a smartphone, laptop, or software token
  • Biometric – something unique to the user such as a fingerprint or face scan

Why is MFA also important for a business?

  • Strengthen your existing security system – Firewalls & antivirus protection is only as strong as the authentication steps that protect them
  • Protect high-value targets such as Administrative or Executive accounts – these typically have sensitive information, broader access and confidential personal/business information
  • Limit digital credential theft – even if a hacker obtained username and password information, they are unlikely to have the device or access to the backup MFA such as a personal email with verification code sent
  • Stop cyber exploitation – cyber crimes are more than just stealing private information. Hackers can also destroy such data, deploy ransomware, change programs or transmit spam/malicious code

MFA is just one added layer of protection that you can implement in your email or other account specific systems that you use to stay cyber safe.

What exactly is the American Rescue Plan of 2021?

Posted on by McGriff Williams in Health Insurance, Insurance, McGriff-Williams News |

Early in the new year of 2021, the Biden Administration implemented The American Rescue Plan (ARP) with the intent of reducing health care costs and expanding access to health insurance plans.

There are currently over 9 million Americans accessing health care through the Affordable Care Act Marketplace, which provides subsidized plans with lower premiums based on household income. Their goal is for there to be at least a few plan options available to every consumer at a monthly premium no more than 8.5% of their household income.

For example:

  • Uninsured couples earning over $70,000 annually could save more than $1,000 per month on their premium
  • A family of four making $90,000 annually will see their premiums decrease by $200 per month
  • A single individual making $19,000 annually will be able to find health insurance coverage with no monthly premium at all, saving roughly $66 per month on average

This plan also introduced an extended Open Enrollment Period that in past years ended on December 15th for the coverage to be effective the following year. For 2021, that new period was from January 15th-May 15th but has now been extended even further to August 15th and coverage can be effective on the 1st of the following month.

The ARP is reevaluating the level of subsidy that Americans qualify for based on their income. Those with new or existing Marketplace plans can visit www.healthcare.gov or call the Marketplace directly to confirm whether or not their tax credit will be increased, resulting in lower out of pocket monthly premium responsibility for the insured. You can also wait until you file your 2021 taxes next year to get the additional premium tax credit amount. However, it is recommended that you update your application and review your plan options during the allotted period up until August 15th.

There is something to keep in mind regarding coverage if you change plans during this time. It is important to consider the new plan’s deductible as it’ll likely start over. If you change plans or add a new household member, any out-of-pocket costs you already paid on your current 2021 Marketplace plan probably won’t count a towards your new deductible, even if you stay with the same insurance company.

These are variables that a licensed agent or Marketplace representative can discuss as they pertain to specific situations. The website again for resources regarding the Affordable Care Act is www.healthcare.gov.