Author: Steve G

Insurance blog, articles, and news written by Stephen Gebhardt, founder and CEO of Gebhardt Insurance Group an Insurance agency in Casa Grande, Arizona.

How Much is Commercial Property Insurance?

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According to a recent survey, 75% of businesses in the United States are underinsured. This may be due to having the wrong type of coverage, the wrong amount of coverage, or maybe even no coverage at all. This is a large number that you do not want to be part of, especially if disaster strikes.

So how can you, as a business owner, ensure that you’re not caught in this miscalculation? By securing the correct commercial property business insurance.

One factor that holds business owners back from insuring their business property is concern about costs. But the cost of commercial property insurance is a fraction of what you would spend if you experience a natural disaster or business interruption and the peace of mind that comes with carrying commercial insurance is invaluable.

To better understand how much is commercial property insurance, here’s a look at national averages and the factors that affect insurance premiums.

How Much is Commercial Property Insurance on Average?

There are a range of factors that affect commercial property insurance rates. Chief among them are what types of insurance your business needs and how much coverage you wish to secure. But, the national average for commercial insurance is about $800 annually or $66 monthly. Small business owners may pay lower rates under $50, and larger companies may pay closer to $100 per month, but commercial insurance is typically always affordable, considering the risks.

If you are able to bundle your commercial property insurance with general liability insurance for a Business Owner Policy (BOP), your costs may even be lower as many insurance companies will offer discounts for carrying multiple policies.

What Factors Impact Commercial Property Insurance Costs?

Commercial property insurance isn’t one-size-fits-all as many individual factors affect your costs. These may include geography, area of business, the types of coverage you select, and more. Each business owner can decide for themselves whether to increase coverage or cut costs on insurance. Here’s a brief breakdown of things that can impact your monthly premiums.

Location

The location of your business plays a role in how much is commercial property insurance would cost you. Businesses in higher-risk locations for natural disasters such as flood zones or tornado alleys will pay higher premiums than locations without fear of natural disasters. Similarly, those in rural areas may be cheaper to insure than urban businesses near areas of high crime, but close proximity to a fire station and sprinkler systems installation can also decrease costs. State laws and ordinances also vary from state to state and you may have to carry certain coverage to comply with state law, which can affect your costs.

Industry

The type of business you conduct also affects your risk level, and thus your costs. Some businesses are inherently more risky to insure. For instance, work-from-home IT specialists carry less risk while conducting business than real estate agents who spend a lot of time traveling and entering properties. Similarly, a business with physical injury risk, such as a fitness gym, carries more risk than a business consultant who sits at a desk most of the day answering phone calls and emails.

Size

The size of your property and company can increase or decrease your monthly commercial insurance costs. If you have a large business property with a large staff, you have more square footage and employees to insure. But if your property is smaller with fewer employees and foot traffic there is less of a risk of injury or issue that your insurance company needs to be concerned about.

Types of Coverage

In some ways, simple math controls your insurance costs. More insurance obviously equals more cost. Therefore, the types of insurance your business needs will increase or decrease your commercial property insurance costs. Some businesses only carry minimum liability insurance and basic commercial property insurance, which is better than not having a policy. However, some businesses require more coverage like cyber attack coverage, auto coverage for vehicles, or equipment breakdown coverage to service elevators and HVAC systems. Each of these coverages increases the cost of your commercial property insurance. But also decreases the amount of money you will have to pay out of pocket if incidents occur.

Deductibles

As a business owner, you are in control of how much risk you wish to carry on your own shoulders. Therefore deciding to increase or decrease your policy deductible can make a significant impact on your monthly insurance payments. If your company can afford to pay a high deductible in case an emergency arises, then selecting a high deductible may save you on monthly costs. But if you cannot afford to pay a high deductible, then it is smarter to select a low deductible because if you can’t pay your deductible, your policy will not pay out.

How to Find Commercial Property Insurance

Many insurance companies offer commercial property insurance. So how do you know which company or plan is best? It takes time and research. But you do not have to do that work yourself. When you work with Gebhardt Insurance Group, our brokers take the time to understand your needs and budget and can match you with the perfect plan and insurance company to meet those needs.

Don’t run the risk of being caught in a disaster without insurance, call our team at Gebhardt today. You won’t regret it.

Answering Your Questions: What is Commercial Insurance?

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what is commercial insurance

When you own a business, your number one priority is ensuring that your business thrives. You focus all your professional energy on implementing excellent procedures, sticking to a budget, hiring quality professionals and more. But what happens when all of that hard work comes crashing down because of an accident or calamity?

Do you have a plan in place if your business experiences a data breach? Are you financially covered if your business sustains property damage from a break-in? If not, you have a bit more work to do.

Securing commercial insurance coverage is one of the most important steps you can take to ensure that your business thrives. Depending on your type of business, you may think it’s not needed. Or perhaps as a small business owner, you think you cannot afford it. But the truth is, that you cannot afford not to carry commercial business insurance coverage.

So what is commercial insurance covered and how does commercial insurance work?

Common Types of Commercial Insurance

Depending on your business needs, there are many different types of commercial insurance to choose from. Your business may need all that is mentioned and more, or only a couple coverage options.

Auto

Does your business involve deliveries or service calls? Then you need commercial auto insurance. Commercial auto insurance operates a bit differently than personal auto insurance because it is designed to cover the entirety of your business operations on the road, rather than individual drivers or vehicles. These policies may be a bit more expensive than a personal policy but they carry higher coverage and ensure that you, your vehicles, and your products are covered financially in the case of an accident.

Property

Do you have a store-front or carry inventory? Then you need commercial property insurance. This policy protects your business building whether you rent or own. It also covers your products and equipment for operation. If a natural disaster occurs, or if you building is broken into and sustains theft or vandalism, your property insurance provides the finances to help you get back up and running.

Liability

If people are involved in your business, then you need professional liability insurance. This includes patrons, employees, and yourself. If someone gets hurt in your store, including while working for you, your general liability insurance financially covers the cost of damages. Additionally, if someone files a claim against a person you are responsible for due to bodily injury or property damage, your liability insurance provides coverage for damages. This may include hospital bills, property replacement, or legal fees.

Workers Compensation

If you have employees, then you are responsible for their well-being while they are working for you. But what happens if an employee gets a work-related injury or illness? Workers compensation insurance ensures that they are compensated for the damage sustained. This may include cash or medical payments while they recover.

Cyber

Conducting business in 2023 means you likely use the internet and online programs to help run your business. This may include inventory logs, payroll, HR information, data storage, and more. With increased technology comes increased risk of a data breach. If this occurs, your business could incur financial repercussions. To avoid devastating loss or legal trouble, it is best to carry cyber insurance which includes services and financial coverage to respond to a breach and recover what is lost.

How Much Does Commercial Insurance Cost?

Determining how much your commercial insurance will cost each month depends on a number of factors. The number one element is determined by the type of business insurance you need. If your business does not involve driving or deliveries, you will not need commercial auto insurance. Similarly, if you do not have a store-front or a physical product, you will not be concerned with property damage. Other factors that affect your costs are the type of business you conduct, your location, the size of your staff or number of employees, how long your business or building has been in operation, and the amount of risk exposure your business is calculated to have.

How Can I Purchase Commercial Insurance?

Finding the best commercial insurance plan for you may take some time and effort. There are many insurance companies to choose from and even more policy options. But don’t let that keep you from ensuring that your business is covered.

At Gebhardt Insurance Group, we make it our mission to find the right plan at an affordable cost for you. Our team members take the time to listen to your circumstances, understand your needs, and shop your options until a perfect match is found.

Don’t wait. Call us today to begin a conversation about securing commercial insurance for your business.

What Does Mobile Home Insurance Cover?

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what does mobile home insurance cover

Sometimes mobile homes get a bad rap. Tornado movies probably have a lot to do with that. In reality, though, moving into a mobile home can actually be an excellent way to achieve homeownership quicker and cheaper than waiting to save up money to buy a stick-built home.

Purchasing a mobile or manufactured home isn’t like buying a new car or RV; it’s a home. Therefore there are some additional purchases you need to make to ensure that you protect your home from damage and loss.

The most important first step is securing home insurance. Though a mobile home is a home, mobile home insurance coverage operates a little differently than traditional home insurance so you need to make sure that you secure the correct policy. These policies are different because the value of a mobile home differs from a standard home and therefore costs and payouts operate differently.

So if you live in a mobile home, you need mobile home or manufactured home insurance and you should know what does mobile home insurance covers.

What’s the difference between mobile, manufactured, and modular homes?

Before diving into coverages, it’s important to get a few terms straight. The terms “mobile, manufactured, and modular” are frequently used interchangeably, but they do have different meanings. All three types are factory-built homes but they carry a few differences which is why they have different names. According to the Department of Housing and Urban Development (HUD), mobile homes are any factory-built homes built before June 15, 1976. Manufactured homes are those built after this date. Modular homes are built a little differently and are regulated by local building codes.

But whether you live in a mobile, manufactured, or modular home, you likely need mobile home insurance.

What basic coverages are included in mobile home insurance?

Standard mobile home insurance coverage typically includes a few basic coverages. These include coverage for your home and personal property, liabilities, and additional expenses.

Property Damage

Accidental damage to your home and structure is typically covered by your mobile home insurance policy. This includes damage due to weather events, vandalism, and malfunction of home systems such as water heaters and some appliances. Your personal property coverage is set by you and determined by the amount of items you need to insure. This may include furniture, clothing, electronics, jewelry, housewares, and more. Separate policy add-ons may be needed for expensive items such as jewelry and artwork. It is wise to review your coverage limits annually to ensure that all of your property and belongings remain adequately insured.

Liability

Incidents that happen on your property are your responsibility. Likewise, accidents caused by your children or pets are also your responsibility to repair or replace. To ensure that you do not have to pay for accidents out of pocket, your mobile home insurance will carry liability insurance to cover these events. This liability coverage insures accidents that occur on your own property or at the property of another that is caused by you, your children, or an animal that you own.

Medical Expenses

If a guest of yours or a hired workman gets hurt on your property, their health insurance may cover the cost of their medical bills. But if not, it is your responsibility to pay for the medical expenses that are incurred because of an incident on your property. These costs can add up quickly. To account for this, your mobile home insurance policy will cover medical expenses for accidents that occur on your property for those who do not live there. It is important to note that this coverage likely does not cover residents of the home.

Living Expenses

If your home is damaged and you are displaced while waiting for repairs or replacement, your mobile home insurance policy will not only cover the repairs for your property but will also pay for your new additional living expenses. This may include hotel or rental costs, food stipends, and more. This is sometimes referred to as “loss of use” coverage.

What perils are covered by mobile home insurance?

Most accidental damage to your home will be covered by your mobile home insurance policy. These problems are referred to as “perils.” These perils often include damages caused by lightning, fire and smoke, hail or snow, wind, explosions, falling objects, wild animals, and vandalism. In most cases, frozen pipe bursts are covered as long as neglect wasn’t involved.

What does mobile home insurance not cover?

Not all damage that occurs to your home is covered by your mobile home insurance. Damage that is typically not covered includes damage caused by neglect or incorrect repair, damage caused by military action or civil authority, and any intentional damage or damage that is a result of action on another’s property such as sewer backup or power failure. These types of damage may require additional coverage.

Damage not covered that is most often a surprise to homeowners is flood and earthquake damage. To protect your home against these natural disasters, you must purchase separate flood insurance or earthquake insurance. Additionally, mold or fungi damage is not a covered peril in itself, but is only covered if caused by an already covered peril.

How to Secure Mobile Home Insurance

At Gebhardt Insurance Group, our expert agents take special care to explain the terms of your policy, walk you through the coverages, and ensure that you understand what does mobile home insurance covers and does not have.

We never want a client to be blindsided by an accident. Call us today to secure peace of mind in knowing that you are covered if an accident occurs involving your home or property.

How Much Is Mobile Home Insurance?

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how much is mobile home insurance

There are many misconceptions about insurance when it comes to mobile or manufactured homes. The word “mobile” leads many to believe it should be handled much like insuring a camper, an RV, or another automobile. But in actuality, it is more similar to insuring any standard constructed home. Therefore, simply carrying auto insurance is not the proper way to ensure that your property and personal belongings are financially secured in cases of disaster or destruction.

Insuring your mobile home is one of the most important steps to take when moving in. The process is similar to purchasing any home insurance but there are a few key differences and specifications to make when looking for a mobile home insurance company.

Continue reading to learn more about what mobile home insurance covers, how much is mobile home insurance and how to find an insurance company with the right policy for you and your home.

What Qualifies as Mobile and Manufactured Homes?

The terms “mobile,” “manufactured,” and “modular,” are often used interchangeably when describing a non-constructed home. It is not necessarily incorrect to do so but these three terms do have mild specific differences which can be important for insurance purposes.

All three of these types of homes are built in a factory and then transported to the property to be installed. But “manufactured homes” are subject to safety standards specified by the Department of Housing and Urban Development (HUD). Any home produced before these HUD codes went into effect on June 15, 1976, falls under the term “mobile home.” Homes built according to state or regional codes rather than federal are called “modular homes.” These homes are also typically built over a crawl space or basement.

Knowing how old your home is and how it is classified helps to determine the type of home insurance you need.

Types of Mobile Home Insurance Coverage

Mobile home insurance coverage operates much like typical home insurance. You can choose the types of coverage you need and the amount of coverage you wish to carry in each category. Most standard mobile home insurance policies include several types of coverage.

Dwelling coverage covers the structure and systems of the home in case of fire, hail, wind, or vandalism. It is important to note that dwelling coverage does not cover floods, this must be added separately if needed.

Personal property coverage protects and replaces your personal belongings in the home. The amount of personal property coverage you carry is determined by you and the cost of your belongings you need to insure.

Another important piece of home insurance is liability or medical coverage. This coverage is necessary in cases where someone is injured on your property or by your property such as a pet. Some policies also allow you to add endorsements such as for additional structures on the property like sheds and garages or expensive items such as jewelry.

When selecting the type of coverage you need for your mobile or manufactured home, it is important to note whether the policy insures at replacement cost or actual cash value. In many cases, dwelling coverage for mobile homes will automatically insure the home at its original cost rather than replacement value unless it is otherwise specified in the contract.

Is Mobile or Manufactured Home Insurance Required?

According to state and federal law, it is not a requirement that you carry any mobile or manufactured home insurance. But even though the law does not require it, that does not mean that it is not a requirement for you.

Are you using a mortgage loan to secure financing for your mobile or manufactured home? If so, your lender will likely require that you carry home insurance in a specific amount that covers the repair and replacement of the entirety of the structure before you can secure the loan.

Similarly, if you choose to live in a mobile home community, it is likely that you will be required to carry sufficient mobile home insurance. At minimum, many communities require that residents carry a liability policy.

Even if you live on land where you are not required to carry mobile home insurance, it is a wise idea to carry mobile home insurance to protect your assets and ensure that your property is repaired or replaced if property damage occurs. Otherwise, you could be left with a hefty expense to pay out of pocket.

How Much Does Mobile Home Insurance Cost?

It is difficult to give an accurate estimate of how much is mobile home insurance because each case is determined by a variety of factors.

Mobile homes differ from constructed homes because their lack of permanency affects their value. The value of a standard construction home appreciates and grows over time while the value of a mobile or manufactured home depreciates. In most cases, after years of wear and tear, it is actually cheaper to purchase an entirely new structure than to repair or replace damaged parts in a manufactured home.

Because of this, not all insurance companies offer mobile home insurance. Additionally, those that do offer home insurance may require special endorsements to be added to your policy if you want to ensure that your home is covered at replacement cost in the case of a total loss.

Factors that determine the cost of mobile home insurance are where the home is located, claims history, the type of structure involved, and the level of coverage you need.

Connect with a Mobile Home Insurance Agent

Are you in the market for mobile or manufactured home insurance? Perhaps you are looking to move onto some land or hit the road and travel and you’re not sure what type of insurance you need exactly. Our team at Gebhardt Insurance Group can help!

Our team specializes in connecting you with one of 40 respected insurance carriers to ensure that you get the exact insurance you need. Speaking with a team member ensures that all of your questions about the availability and how much is mobile home insurance are answered and none of your belongings are left uninsured.

Call us today to begin a conversation about your mobile home insurance needs. We are happy to help!

How to Shop for Auto Insurance

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how to shop for auto insurance

When listening to car insurance commercials, it’s not uncommon to hear talk about “lowering your car insurance rates.” But how do you do that? Can you just call up your current insurance company and ask for a lower rate? Actually, with some insurance companies you might be able to do just that. It’s definitely worth a shot! But in actuality, you will have to make a change to your policy or switch car insurance companies in order to get an auto insurance quote for a lower rate.

Changing your coverage type, and coverage limits, or adding or dropping a vehicle may change your auto insurance rates. But there may also be a solution without having to change the vehicles in your driveway and without having to lower your necessary coverage.

Shopping for car insurance quotes across multiple different companies is called a comparison shop. When comparing car insurance quotes you may find that you can get cheap car insurance simply by switching to a different company. Assessing your auto coverage and performing a comparison shop every year will ensure that you always take advantage of the lowest rate available to you.

Here are some steps to take on how to shop for auto insurance.

Gather Personal Information

In order to get an accurate insurance quote tailored to your needs you will have to give each company some information about yourself. To speed up this process and save yourself from having to dig around in stacks of papers or rack your brain for login info while in the middle of filling out forms, it is best to compile the information you need to have on hand ahead of time.

Some questions you may be asked involve what type of vehicles you need coverage for and how you use them along with vehicle identification numbers (VIN), all drivers on the policy, where your cars are parked, your education level, and insurance and accident histories.

Determine Coverage Needs

The quote you receive will be determined mostly by the coverage you need. Are you only looking for minimum liability coverage? This quote will be the cheapest option. Or do you need collision, comprehensive, and other coverages such as roadside assistance and underinsured motorist coverage? The type of vehicle you drive and the type of driving you do most often will determine the type of coverage you need.

If you don’t drive very often, have an older car that is paid off, and have significant savings to cover accidental damage or replacement, you may only need to carry the state minimum liability requirements. But if you have new cars, car loans, drive often in the city, and do not want to pay out of pocket for property damage and repairs, then carrying higher coverage is a wiser choice.

Ask About Discounts

Most insurance companies offer significant discounts for a variety of factors. Are you a teacher or a first responder? You might qualify for a discount based on your job. Are you a safe driver? Several insurance companies have monitoring apps or programs that monitor your driving record, speed, braking habits, and even your history of getting tickets. If you’re deemed a safe driver, you may see a lower insurance cost.

It’s important to note that it may not always be the best move to switch companies for a lower rate because some companies offer loyalty discounts for insuring multiple vehicles or bundling your home and auto insurance with the same company.

Organize and Compare Quotes

Gathering quotes to compare rates may take some time. You must fill out forms and wait for a response. You may complete it all in one sitting if you are dedicated, but it will likely take several days to gather all of the information when you do it by yourself, therefore having an organized system will help you in the long run.

Compiling all your quote information in the same place will help you stay organized. You may choose to input quotes and info into a spreadsheet online, print it out and place it in a file folder, or archive it in a folder in your inbox. With any choice, it’s wise to make sure that you gather the same info from each company to ensure that your quote comparison is accurate.
A few pieces of info to track are coverages, deductibles, limits, and customer satisfaction ratings.

Make Your Selection

Once you have gathered as many car insurance quotes as you need, and organized the information, the only steps left are to make your choice and sign up for coverage. Your choice may be based on the lowest rate available, the best coverage available, the best reviews, or any other metric that is important to you. Each person has different needs therefore it’s important to ensure that you make the decision based on what works best for you.

A very important factor to consider when choosing car insurance and making a switch is to ensure that you avoid a lapse in coverage if you do choose to switch your insurance carrier. To do this, ask clarifying questions and make clear notes of end and start dates to your policies to ensure that your cars remain covered through a switch. Getting caught driving without insurance for even one day can be detrimental to your budget if you are pulled over or get into a car accident without proper insurance coverage.

Work With an Insurance Group

Many insurance companies have comparison tools on their websites that allow you to complete a quick request for an insurance quote. These can be helpful when you are in a hurry or know exactly what you’re looking for but they’re not your best option when you have questions or have no idea which companies to even look at. To access these tools you really need to already know which companies you want to review and this may take some time to research.

When you choose to work with Gebhardt Insurance Group, our agents take the comparison shopping work off your plate. We have relationships with the top insurance carriers in Arizona and have special insight into the coverage options and cost of car insurance each company offers. When you choose us to help you run a comparison shop, obtaining information does not take as long as it would if you are comparing quotes by yourself and we can also answer all questions you have immediately. Additionally, we can help you sign up when you’ve made your choice and ensure that you don’t experience a lapse in coverage.

Let us help you find the most affordable auto insurance coverage for you. Call us today to get started.

How Many Life Insurance Policies Can You Have?

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how many life insurance policies can you have

Want to ensure that your loved ones are cared for after you are gone? Of course, you do! Securing life insurance coverage is the best way to ensure that your family is not riddled with financial burdens after you have passed. But simply having a policy is not enough to assure peace of mind. Your policy must be extensive enough to cover all final expenses, debts, and living expenses for those who currently depend on you financially.

But, as is the case with everyone, you do not know the day or the hour when you will pass. It can be difficult to plan for an event that is so unpredictable. But the worst thing you could do is to ignore it. You have options for your planning. It is possible to set multiple plans in place so that whether calamity strikes soon, or hopefully you pass many many years from now, the people who love and depend on you are taken care of when you are gone.

One such option is buying multiple life insurance policies. Though not everyone knows how to do this correctly or even that it is possible.

Below are the answers to some questions about having multiple life insurance policies and when it is a good idea.

Is There a Limit to How Many Policies I Can Have?

It is possible to carry multiple life insurance policies. But is there a limit to how many you can have? Not officially. There aren’t any laws that prohibit you from carrying as many life insurance policies as you can find. But that doesn’t mean it is possible or a good idea. For starters, you can only carry the amount of life insurance that you can afford. Each month you must make a premium payment to your life insurance company, therefore if you have multiple policies, that is multiple premiums. You are a risk to insure if your premiums are more than your budget affords. To prevent this, most insurance companies will cap your total amount of coverage limit to 25 times your annual income. So while there may not be an official limit to how many policies you carry, there is a limit to the amount for which you can be insured.

Can I Carry Policies With Multiple Companies?

While it is possible to carry policies with multiple companies, it may not be the wisest choice. Most insurance agents use the same database, therefore each can see how many policies you have applied for and which companies have accepted or denied you. If a company believes you are trying to overinsure yourself, your application will likely be denied. If you wish to purchase additional life insurance, it is always best to first speak with your current carrier to see if you can add a new policy or increase your current policy with additional coverage.

When Should I Consider Carrying Multiple Policies?

Not everyone needs to carry multiple policies. It can be more costly than the value you receive. But certain circumstances in life may warrant carrying more than one policy at a time.

Life Events

When reaching major life events such as getting married, having a baby, buying a house, or starting a small business, it is a smart idea to conduct a life insurance policy review.
Any event that increases your financial responsibility also increases your life insurance needs. But increasing current life insurance coverage, especially if you carry a permanent life insurance policy, can greatly increase your premiums. Buying an additional term policy to cover new large expenses might be a more affordable way to remain properly insured.

Long Term Care

When planning for the future, it’s not only smart to consider your loved ones when you are gone, but you must also think of their well-being and your own as you age. Life insurance policies are designed to cover financial responsibility after someone has passed, and especially if they pass young, but what happens if you live for a long time? Is that money wasted? Not if you plan correctly.

Carrying an insurance policy that includes a long-term care rider allows you to use the death benefit to pay for your care as you age. If you find yourself needing in-home nursing, you can use your life insurance policy to cover that cost while you are still alive. Additionally, if you do not use the full amount of the policy, or if you do not need long-term care, your beneficiaries will still receive the remainder of the death benefit upon your passing.

Financial Planning

Many people who desire to make smart financial planning decisions employ a strategy known in the insurance business as the ladder strategy. This strategy operates on the premise that you carry more financial responsibility and risk when you are younger, and as you age, those responsibilities decrease. Therefore you can save on premium costs by buying multiple policies in varying term lengths.

This looks like having high coverage for 10 years, medium coverage for 20 years, and a lower coverage policy that extends for 30 years. When doing this, you are insured for your younger years when you have a higher mortgage and childcare costs, but you are not paying high premiums later when your children are grown and your debts are paid off. Comparing this strategy against a high coverage policy for 30 years may save you money in the long run.

Are There Alternatives to Carrying Multiple Policies?

Buying a new or additional life insurance policy is not always the best or most cost-saving option. Depending on the company you insure with, you may have alternative options. For instance, some policies may include a guaranteed insurability rider which gives you the option to increase your coverage without undergoing another medical exam. This is beneficial to you because you can increase or decrease your coverage regardless of your health. It is important to note that though your health may not affect your premium with this rider, your age will still determine your premiums when changes are made.

Another alternative is by carrying a term life insurance policy with a term conversion rider. This rider allows you to convert your entire term policy, or portions of your policy, into permanent life insurance. Each company has its own policy for how to convert or time limits and deadlines on when you must make a conversion choice.

Are Multiple Policies Right for You?

Have you recently experienced a major life event? Or perhaps you aren’t sure of the terms of your current life insurance policy and that troubles you. Conducting a life insurance review is a smart way to ensure that your financial responsibilities are taken care of. It is also the most satisfactory way to give you peace of mind.

If you believe your circumstances or position in life warrants carrying multiple life insurance policies, you should speak to an insurance agent right away. Our agents at Gebhardt Insurance Group are experts at assessing your state of affairs and advising you on the best policy configuration for you specifically. Don’t find yourself underinsured, or buying additional policies you do not need, call to speak to a member of the Gebhardt team today.

Home Insurance Needs: Guaranteed or Extended Replacement Cost Coverage

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extended replacement cost

So you’ve bought a house? Hooray! Your first order of business is to celebrate with your favorite dinner! But what is your second order of business? Acquiring homeowners insurance to protect yourself against a total loss in the case of a natural disaster or calamity.

You may be questioning “Would that really happen to me?” And the good thing is, it likely won’t. But your home is one of the greatest investments you will ever make, and it is also the place where you live and store your most precious belongings. You can’t afford to take the risk of not carrying proper insurance.

In the event that something terrible does happen, without coverage, you will be responsible for replacing your home and all your belongings entirely out of pocket. This means the total cost to rebuild your home, including the cost of materials and labor, will fall squarely on your shoulders. Can you afford the rebuilding costs? If not, you need adequate insurance coverage.

But how much insurance do you need? Is all home insurance the same? Are all types comparable?

Here’s a brief breakdown of your options.

Types of Homeowners Insurance Coverage

All home insurance coverage is not the same. There are basically four types of coverage that insurance companies offer to rebuild your home after a covered loss. Home insurance is not one-size-fits-all and the type of coverage you select should be based on your budget, assets, and amount of risk. But, some coverage is better than others.

Lowest Coverage: Actual Cash Value

The value of your home as a whole should appreciate over time, but the actual materials that your home is made of and the belongings you own depreciate over time due to age and wear and tear. Therefore, the type of coverage your policy includes matters when it comes to replacing the materials of your home and belongings.

The lowest and most affordable type of home insurance is actual cash value coverage. This covers the cost of replacing items including depreciation. This means, if you have to replace something, your insurance company will not pay for the new cost of that item, only the amount the item costs in the first place. In this situation, insurance coverage does not cover the full amount of replacing the item and homeowners have to make up the difference out of pocket.

Good Coverage: Replacement Cost Coverage

To protect yourself from having to pay a large amount to rebuild your home, a better option is to carry replacement cost coverage. This type of coverage may cost more in premium costs or deductibles but can save you money in the long run because it ensures that your insurance company will pay the cost to replace materials at their current cost, without factoring in depreciation. This coverage can save your pocket and peace of mind.

Better Coverage: Extended Replacement Cost Coverage

Unfortunately, carrying replacement cost coverage is not always enough to save you from having to pay out of pocket to rebuild. The costs of labor can rise dramatically, especially in a high-demand scenario such as a natural disaster that affects a broad area. Your policy will only cover rebuild costs up to your dwelling coverage limit, therefore if costs rise past the limit, you must pay for the difference yourself. When you select Extended coverage, your insurance company will pay an additional percentage above replacement cost, which can save you from having to pay the difference.

Best Coverage: Guaranteed Replacement Cost Coverage

This is the gold standard of home insurance coverage types. Guaranteed Replacement Cost covers the entirety of materials, labor, and construction costs regardless of how much it costs. This type of coverage is undoubtedly the most expensive coverage to carry and unfortunately, many insurance companies do not offer it. But, if you are willing to pay for it and want to be completely protected, you can likely find an insurance company to cover you.

How to Secure Home Insurance Coverage

Call our team at Gebhardt Insurance Group. Our agents are ready to speak with you about your insurance needs and can explain all your coverage options. We can even help compare rates from many different carriers to ensure you are getting the best deal available to you. Don’t wait until disaster strikes! Insure your home today.

When is the Best Time to Get a Life Insurance Policy?

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When to get a life insurance policy

When you move into adulthood, you quickly learn that there is insurance for just about everything. Cars, homes, health, and belongings are just a few important areas of life where it’s essential to secure a quality and affordable insurance policy. But are you aware that you can and should also obtain insurance for a person? Specifically, for yourself or your loved ones.

It may be uncomfortable or upsetting to think about yourself or a loved one dying, but buying life insurance coverage is a great way to secure financial protection and peace of mind in the event of an untimely death.

Before purchasing life insurance, though, it’s important to assess your needs, options, and financial situation. It is also important to address a few questions such as: How does life insurance work? Is all life insurance the same? Should everyone have life insurance? When is the best time to get a life insurance policy?

Below we’ve given a few answers to these questions.

What is Life Insurance?

Understanding what life insurance is and how it works is the first step in securing a life insurance policy. Life insurance is a contract between an individual and a life insurance company. This contract specifies that the policyholder will pay a premium for the duration of the life insurance term, and in turn, the insurance company will pay a financial sum to the policyholder’s named beneficiary upon the death of the policyholder. This sum is referred to as the death benefit.

Types of Life Insurance

Life insurance is not one-size-fits-all. You get to choose how much life insurance to carry and what type of coverage you need. There are two types of life insurance policies: Term and Permanent.

Term Life Insurance

Term life insurance is life insurance designated for a specific term. Usually 10, 20, or 30 years. With a term policy, you agree to pay the premium for life insurance coverage and if you die during the specified term, then your beneficiary receives the agreed-upon sum. Though, once the term expires, the contract expires. If you are still living when the term expires, you will either need to secure a new policy if you wish for your beneficiary to receive a death benefit.

Term life insurance policies are the most commonly selected type of policy. This is typical because term life insurance rates are the most affordable and can often be secured for a minimal monthly premium.

Permanent Life Insurance

Permanent life insurance is just that, permanent. These policies are designed to pay a sum to your beneficiary regardless of when you pass away. Another benefit to permanent life insurance is that the cash value grows with tax benefits and can even potentially be used during your lifetime. The two types of permanent life insurance are Whole and Universal. Each has different specifications and benefits.

Because the insurance company has a guaranteed payout at the end of a permanent policy, premiums are more expensive, though they carry a guarantee.

When Should You Get Life Insurance?

The basic rule of thumb is that younger is always better because it is more likely that you can lock in a lower rate when you are younger and healthier. But, the best time to buy life insurance will vary from person to person depending on their life circumstances, needs, and age.

Life Events

Below is an explanation of how different life events can affect your need for life insurance coverage.

When You Get Married

Marriage is a major life change. Securing a life insurance policy when you get married is a good idea because it can give you peace of mind that your spouse will be taken care of in the event of an untimely death. Likewise, your spouse will have a safety net to take care of themselves when you are gone.

When You Have a Baby

Starting a family is one of the most important reasons to secure a solid life insurance policy. Minor children cannot provide for themselves, therefore losing a parent can be detrimental emotionally and physically. Ensuring that your children are provided for when you pass on is a major responsibility that is provided by carrying life insurance.

When You Accumulate Debt

When you take on debt to go to school or to buy a house and other personal belongings, you of course, fully intend to pay that back. But if you die before you can pay, your family may be left with the burden of paying the debt. Carrying a life insurance policy large enough to cover all of your debt expenses is a great way to ensure that your family is not left with that burden.

Age Brackets

If you are alive, healthy, and under age 85, then it is never too late to get a life insurance policy. But, your age will determine your insurance needs and costs.

20s and 30s

Finding an insurance policy to lock in your 20s and 30s is typically going to be your most affordable option. Especially if your medical exam reveals that you do not have any concerning health conditions. This stage of life is when your insurance company assumes the least amount of risk because an early death is the least likely. Though, if you have young children at this time, it is likely one of the most important age brackets to ensure that you have coverage.

40s and 50s

Securing an insurance policy during your 40s and 50s is still affordable, though more expensive than in previous decades. During this time is when there is an increased risk that health concerns will arise, and therefore, more risk for the insurance company. Once you have reached this stage of life, you likely have accumulated assets and financial obligations that require coverage if something were to happen to you, therefore life insurance coverage is still a wise purchase.

60s and Older

Though being 60 and older seems like the most important stage to have a life insurance policy because the probability of passing away is getting closer, it may actually be the stage where you deem life insurance unnecessary. Your children are likely grown, and you may have significant savings and retirement accounts that can provide for your family members that are left behind. But it is still vital to assess your situation because if you do have outstanding debt and responsibilities when you pass, you want to ensure that your family members are taken care of.

Speak with an Agent

Hopefully, this information has helped you to understand the importance of carrying a proper life insurance policy. Are you ready to find the right policy for you and your loved ones? Or perhaps you have more questions that pertain to your specific circumstances.

At Gebhardt Insurance Group, our team specializes in finding the best policy for you. Our expert agents are well-versed in the specifics of each type of life insurance as well as which companies offer policies that will fit your needs and lifestyle the best.

Call us today to speak to an agent about your life insurance needs.

State Farm vs Progressive Insurance

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State Farm vs Progressive Insurance

Are you in the process of shopping for car insurance? Shopping around to compare car insurance quotes is wise because not all insurance companies are equal. But it’s quite impossible to simply name the best car insurance company. They all differ greatly and offer a wide range of coverages, discounts, policies, and more. So, your specific insurance needs and life circumstances will determine which car insurance company is the best choice for you. Finding the right fit takes some time and research into your options.

When researching your options, you’ll find that two of the leading providers of automobile insurance, both locally and nationally, are State Farm and Progressive. Though both companies have decent rates and high customer satisfaction ratings, one of these choices may be a better pick for you than the other.

To help you narrow down if Progressive or State Farm Car Insurance is the right choice for you, we’ve put together a brief overview with some information.

Arizona Auto Insurance Overview

Arizona state law requires that all 5.1 million Arizona motorists maintain auto insurance. If you do not carry insurance, and in the proper amount, you are breaking the law. The state requires that all drivers carry at least the state minimum level of automobile liability insurance. Required coverage for bodily injury must be $25,000 per person and $50,000 total per accident. The coverage minimum that applies to property damage is $15,000. It is important to note that these required minimums are new as of July 2020, therefore if you have not reviewed your policy since then, it would be wise to do so and ensure that you are in compliance. 

Overview of Both Companies

Both Progressive and State Farm offer a wide variety of coverage options and are well-established insurance companies that insure millions of drivers across the nation. They each have competitive car insurance rates, as well as offer different types of insurance through non-affiliated insurers such as home and life insurance. 

Both companies are known for offering significant discounts, including a safe driving discount through the use of monitoring software. This software is connected to your vehicle or mobile phone and monitors driving habits directly and adjusts your premium accordingly. 

Both companies are suitable selections for most drivers but they have noteworthy differences, therefore a more in-depth look is necessary to determine your choice when comparing Progressive vs. State Farm. 

State Farm in Arizona

The State Farm Mutual Automobile Insurance Company is the largest auto insurance company in the United States. They have roughly 18% of the total market share nationally and have been a “household name” for years. Accordingly, they have a strong presence in Arizona’s market. In 2019, they made headlines by implementing a 3% rate reduction in the state for roughly 700,000 motorists. In that same year, they purchased the naming rights for what was known as the University of Phoenix Stadium, renaming it State Farm Stadium. This is the home of the NFL’s Arizona Cardinals. 

Progressive in Arizona

The Progressive Automobile Insurance Company, based in Ohio, moved into the third position nationally in terms of market share—nearly 10%. They are well-known for their advertisements featuring “Flo” and for offering competitive rates. Progressive is a car insurer that is still growing rapidly and is highly rated. In 2019, they announced plans to hire over 10,000 new employees across six U.S. cities due to 50% growth. With Phoenix being one of these cities, they added roughly 375 new positions. Therefore, Progressive has a strong presence in Arizona. 

Optional Types of Coverage

All automobile insurance companies offer basic forms of coverage. These include liability, comprehensive, collision, uninsured and underinsured motorist coverage. Most companies will begin with these coverages, most of which you can opt in or out of, and then will offer plan-specific policies. Both State Farm and Progressive offer additional and unique policies as well. 

State Farm

Some of the more unique forms of coverage offered by State Farm include:

Rideshare driver insurance: This is insurance coverage designed for professional drivers that contract with rideshare companies such as Uber and Lyft. This coverage will cover rideshare work-related insurance needs while your basic plan will cover personal driving.

Car rental and travel expense coverage: If your vehicle is being repaired, your coverage will pay for a rental car. If involved in an accident more than 50 miles from your home or zip code, travel expense coverage will pay for a hotel and meals.

Emergency road service: If your vehicle suddenly becomes disabled due to an accident, flat tire, engine overheating, or another source, this coverage ensures that you receive the help you need quickly.

Progressive

Some of the more unique forms of coverage Progressive offers are as follows:

Loan or lease payoff: Coverage is sometimes referred to as “gap” insurance that applies If your vehicle is “totaled.” This covers any difference between the value of the vehicle and any excess debt still owed.

Rental car reimbursement: Pays for rental car costs while your vehicle is being repaired.

Custom parts and equipment: Provides coverage for aftermarket or upgraded parts or accessories. Examples include custom wheels, additional audio equipment that was added, etc. This is especially popular coverage with motorcycle owners.

Deductible savings: For each policy period completed without a claim, you are credited with a reduction in your deductible. This is the initial “out-of-pocket” amount that the driver must pay for comprehensive or collision claims.

State Farm: Discounts

Drive Safe and Save: Customers receive initial and ongoing discounts based on how much they drive. When the vehicle is driven sparingly and operated safely, ongoing discounts apply.

Driver training: Those under the age of 21 may complete certain driving safety courses to receive discounted rates. 

Good student: Applicable to full-time students in high school or college under the age of 25 as a reward for proven responsibility and achievements.

Progressive: Discounts

Snapshot: The innovative Snapshot program discount works by an app on your phone. It monitors actual driving practices and rewards good drivers based on their usage. Savings average roughly $130 annually.

Sign online and online quote: Getting a quote online and signing up online can save you money. These discounts range from 7-8%. They are very easy to obtain—just process your new policy online!

Continuous coverage: A “customer loyalty” program. Discounts may accrue as you continue to maintain a Progressive policy without interruption (gaps or cancellations).

Teen driver: Though young drivers usually carry insurance at a higher rate, Progressive offers a discount to teen drivers under the age of 18 who have been consistently insured for 12 months. 

Customer Feedback

Both State Farm and Progressive have been in the Top 10 Best Car Insurance Companies each year. Customer satisfaction is typically high for each, though the reasons differ. 

State Farm rates highly for customer service due to its 18,000 insurance agents nationwide. Customers were “least satisfied” with the perceived value of their car insurance after a claim was filed though, due to the claims handling process. 

Progressive customers are most satisfied with the simplicity involved in filing a claim and the excellent customer service offered. The majority of customers were likely to renew their policy with Progressive. 

One demographic category that is different between the two is those with poor credit. Progressive was found to have nearly 10% lower rates for those with a lower credit score. Additionally, those who have riskier driving records, such as younger drivers and those with speeding tickets, typically see lower rates with Progressive than with State Farm.

Assistance Shopping Car Insurance in Casa Grande

The Gebhardt Insurance Group has been providing personal and affordable insurance products in Arizona for years. In the realm of car insurance, we offer insurance options from Progressive and several other leading carriers that may be great options for you. Progressive has shown to be an innovator in the auto insurance market in many ways and we are pleased to answer any questions you may have. 

Additionally, we are also a source of insurance to cover your home, life, motorcycle, business, and more. Contact our local agents today for a quote or to discuss your questions at (520) 836-3244.

When to Switch Auto Insurance

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when to switch auto insurance

Car insurance coverage can be a Catch-22. Sometimes you can’t afford it, but you definitely can’t afford to live without it. Car insurance premiums are often in a state of change. Sometimes up and sometimes down, it can be challenging to keep track of your rate and if it is the best around.

Whether you are the one who makes a change, something happens to you, or your current provider simply increases their car insurance rates, it is always a good idea to review your coverage to see if you can save money by making a switch.

Here are several instances where it is likely that switching car insurance companies can benefit you:

When You Move

Where you live affects your insurance rate. This is because living in a highly populated area puts you at higher risk for filing a car insurance claim than living in a less populated area. Therefore, your insurance company will charge you more or less depending on that risk.

When you have a change of address, you have to notify your car insurance carrier so they know where your vehicle is typically parked and so they know where to send your mail. Notifying them may trigger a rate decrease, but it could also trigger an increase if you are moving further into the city. If this is the case, it is wise to compare car insurance quotes to see if a new company might offer you a lower rate at your new address.

When Your Credit Improves

Have you recently made great strides at paying down debt? If so, your credit score may have gone up, and that could decrease your insurance rate significantly. Studies have shown that a person’s credit score correlates to how likely they are to use their car insurance. The lower the score, the more likely a company will have to pay out on a claim. Therefore, many insurance companies pass that risk on to the driver by charging higher premiums to those with lower scores. And though your lower credit score may have nothing to do with your car or driving habits, most insurance companies won’t take the chance.

But the good news is that this means a higher score indicates a lower chance that you will file a claim, and therefore insurance companies will often offer lower rates to those with good or excellent credit scores. A few points can make a big difference to your wallet, therefore, if your score has improved any, you should compare rates.

When There’s a Change in Driving Records

If you have recently gotten married, celebrated a teenager getting their license, been in a car accident, gotten a speeding ticket, or other life circumstance that affects your insurance policy, this can trigger a change in your insurance rate. In some cases, these changes may benefit your rates, such as getting married. But changes, such as adding an inexperienced driver, or being involved in a car accident that required you to open a claim, can drive up your costs.

If you are unhappy with the rates of your current coverage options, you can look around and compare auto insurers’ policies for these types of changes. A switch could bring down your premium or at least keep it the same. But, sometimes, loyalty discounts can offset an increase, so it is smart to evaluate all your options.

When You Can Bundle

Did you just buy a house? If so, this is a great time to check out the cost of your insurance! Many companies will give a discount if you bundle your home insurance with auto insurance, and the savings can be significant. That may mean insuring with your current insurance company, but it could also mean switching to a new company with the best rates for both.

When You Have Special Circumstances

Do you collect classic cars? Or perhaps you enjoy cruising down the highway on two wheels? If so, your insurance costs could be more than that of your neighbor who drives a mini-van. Claims involving expensive cars, specialty vehicles, and vehicles where potential accidents are likely to involve higher hospital bills will be more costly for the insurance company. Therefore they charge you more. But, if these vehicles are only used as a secondary source of transportation, some insurance companies may have particular policies for these special cases that actually cost less than standard insurance. Therefore, with each purchase of any new vehicle type, it’s wise to check available rates and policies.

Tips for the Switch

If you switch to a new insurance provider, there are a few steps you should take to ensure the process runs smoothly.

Call Your Provider

It’s wise to call your current insurance provider before making any decisions. Some insurance companies have an early cancellation fee that you can avoid paying by waiting until it is time to renew. Additionally, sometimes a company may offer a discount or extra benefits to keep your business.

Dont Cancel Yet

If you’re set on switching, it’s crucial to ensure that you don’t cancel your current coverage until your new coverage kicks in to avoid a lapse in coverage. Even a few days of a gap in coverage can make a costly mistake if you happen to need your insurance sometime within that gap.

Notify Your Lender

Most leasing agents require proof of insurance coverage. To avoid a penalty with your lender, it’s best to let them know as soon as possible that you are making a switch in coverage. Typically, your current lender will send a notification letter if you cancel a policy, but it is always smart to confirm.

Get Documentation

Ensure that the new insurance and the previous insurance companies both send you proper notification of the start of service and cancellation. Having these in hand will help you if you run into issues such as incorrect charges, breaches of contract, or other scenarios where having proof in writing is helpful.

Don’t have Time to Shop Around for Better Rates?

Let our team at Gebhardt do it for you! We know it can be time-consuming to research all of your options, especially when you have abnormal circumstances. Our team has insider information and relationships with many different insurance providers. We can do the work to find out if a popular option such as Progressive, AAA, State Farm, or another provider is best for you!

Call us today to begin the process of switching insurance providers.