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Reasons to own life insurance after your kids have left home:

1. To meet goals

If your children are in college and/or not completely financially independent, life insurance can help. Although you may have saved enough for tuition, the kids’ living expenses (e.g., room and board, laundry, entertainment/activity costs, etc.) continue, but not Social Security benefit payments for the surviving spouse and children—they stop when the kids leave high school.

2. To support other dependents

If you have parents, disabled adult children, or others who depend on you for financial support, life insurance would continue this support if you die before they do.

3. To cover the Social Security “blackout period”

A recent study showed that 5 percent of married women ages 51-64 were poor, but 20 percent of widows that age were poor. This happens because many people don’t plan for life insurance to pay income to the surviving spouse after their kids are grown. As noted above, Social Security pays nothing from when the youngest child leaves high school until the surviving spouse applies for benefits based on the deceased spouse’s record (minimum age for eligibility is 60). This interval is called the “blackout period.”

4. To offset reduced Social Security survivor’s benefits

If a survivor begins receiving Social Security survivor benefits earlier than the full-benefit age (66-67, depending on when the survivor was born), the Social Security benefit amount is permanently reduced. Moreover, because of the deceased’s early death, he or she didn’t get salary increases that might have boosted Social Security benefits further. A life insurance policy can help offset the effect of these “lost” raises.

5. To offset other “lost” retirement savings

Also, because of the deceased’s early death, he or she didn’t get salary increases that might have boosted employer pension benefits and/or IRA contributions. A life insurance policy can help offset the effect of these reduced retirement savings.

6. To meet commitments based on two incomes

Most two-earner couples make financial commitments (e.g., home mortgage, loans, leases, etc.) based on their combined income. Life insurance on each earner enables the survivor to continue to meet those commitments.

7. To pay unplanned expenses

Young people don’t generally plan to have savings available to pay for funeral and burial costs, final medical expenses, estate administration and transfer costs, and federal and state income and estate taxes. Life insurance can cover these costs, which can easily reach tens of thousands of dollars.

8. To create a financial “safety net”

Conventional wisdom says each household should have an “emergency fund” equal to about half a year’s income, to meet surprise unavoidable outlays. If the household does not already have an emergency fund, the post-death family will be even more financially vulnerable without one. Furthermore, it might also be somewhat more difficult for the survivors to obtain credit. Life insurance can solve this problem.

9. To offset lost income after beginning Social Security retirement benefits

When a couple retires and begins receiving Social Security retirement benefits, each one receives an income. The earner with the larger pre-retirement income gets a benefit based on that income, and the person with the smaller (or no) pre-retirement income gets either a benefit based on his or her own earnings record or half of the spouse’s Social Security benefit, whichever is greater. When one spouse dies, the larger retirement benefit continues but the second benefit stops—in effect, a 33 percent income reduction. Life insurance can offset this income drop.

10. To provide bequests to heirs and charities

If you want to be sure that your heirs and/or favorite charities get money after your death, you can designate some or all of your life insurance benefits to go to them. This is particularly useful if, without the life insurance, your executor would have to liquidate other assets to meet this objective.

September is Life Insurance Month, and now is the time to contact your Aitken & Ormond Insurance Agent and get more information on starting a Life policy today. We are here to help you!!

A boat can provide you and your family and friends with days of nonstop fun during the summer. However, at some point after Labor Day you will need to place your boat into storage to protect it from the forces of winter. What you do before you store your boat is important. If proper care is not taken, you can mistakenly cause significant damage that may not be covered by insurance.

Following are some boat storage preparation tips to help you prepare your boat for the long winter. Many of these same tips can also be adapted for jet ski storage.

1. Take Your Boat Out on the Water One More Time

The first tip you should certainly do to prepare for boat storage or jet ski storage is to take your craft out on the water one more time. While you should certainly enjoy every moment of this last pleasure cruise, this shouldn’t be your only objective. You should also be trying to observe your craft to discover if there is anything that needs to be fixed before you winterize. Getting necessary repairs done before you place your boat or Jet Ski into storage is important. Winter can certainly increase many problems and make them worse.

2. Clean Your Boat

Once you have hauled your boat out of the water for the season, it’s time to really get to work. First, remove your boat’s bilge drain plug. After you’ve done that, give your boat’s decks and hull a really good scrub. Try to remove as much of the slime, grime, barnacles and other nasty gunk as possible that have built up over the season. Clean, drain and open all the strainers, thru-hulls and valves. Give the boat’s interior a good cleaning as well. Make sure the refrigerator lockers are cleaned and look for anything else that could spoil if left over the long winter.

3. Get It Dry

Once you have cleaned your vessel as thoroughly as possible, you need to get it dry before it can be placed into storage. This means draining all water away from the boat. To get the water to drain more efficiently, raise the bow. Make sure after the water has drained you give it enough time for any moisture that remains to evaporate before the boat finally goes into storage. Purchase mildew control bags and place them inside the cabin as well as any compartments to combat mildew.

4. More Boat Storage Maintenance

Change the Oil – Maintenance should also be performed if you want to have safe boat storage or jet ski storage over the winter. Not doing so can result in damage due to how long the vehicle has to remain idle. One of these tasks is certainly performing an oil change. Oil changes are especially important for watercraft. There is a good chance some water or acid got into your oil over the summer. If it’s not removed, it could corrode your engine. Replace the filter, flush out the oil, and then pour in new oil.

Change the Antifreeze – Another maintenance task you should perform is refreshing your craft’s coolant system. This will help stop components in your engine from freezing and corroding over the winter. First, drain out the coolant. Second, flush what’s left out with water. Next, add the new antifreeze. However, make sure to dilute it to the proper specifications of your vessel.

Apply Fogging Oil – There’s also additional maintenance you should perform to protect your engine. Without actually starting it, turn over your engine. While it’s turning over, take a container of fogging oil and spray it either into the spark plug holes or onto the carburetor depending on the instructions in your owner’s manual. This will preserve the moving parts of your engine during the cold winter.

Protect the Drive Belts – You should either significantly loosening the drive belts or removing them entirely and placing them into storage until next spring. Not doing so will cause them to remain in tension during the long winter. With the freezing and thawing process, there is a strong likelihood that cracks may develop in the belts.

Other Maintenance Tasks – The boat’s steering and control mechanisms also need to be protected. You can do this with simple grease. Just make sure they can still move smoothly and all the joints are well greased before the boat is put into storage. The battery can also drain over the winter if it’s left connected. Solve this problem by disconnecting it. Lastly, fill up the gas tank. An empty gas tank can collect condensation and slowly corrode.

5. Wax and Cover

Once you have finished all the above steps, give your boat a nice handsome wax job. Wax doesn’t only look nice. It also stops rust and corrosion. Finally, cover your boat to prevent it from collecting any dust and grime while it remains in storage.

Following these steps will help save you time to get your boat and your family out on the water when spring arrives next year.

Almost everyone has home or renters, auto and life insurance. Combining these policies together can give you a considerable discount. In fact, almost any type of personal insurance policy can be bundled in order to save on premiums and streamline the claims process.

Here are some of the benefits of bundling your insurance policies:

• Discounts—Many insurance carriers offer discounts for bundled policies. The exact discount will vary between different carriers, but generally can range between 5% and 25%.
• Convenience—Bundling policies together cuts down on paperwork and makes your coverage easier to manage. In addition, because you only have to work with a single insurance carrier, you can save time by viewing your premiums, renewal dates and other information all in one place.
• Single deductibles—If a loss applies to more than a single policy, the deductible you pay may apply to all of your coverage. For example, if a severe storm damages your vehicle and your home and you carry both policies with the same provider, you may only have to pay a single deductible.
• Less chance of dropped coverage—Insurers regularly drop coverage if a policyholder makes a large amount of claims. But, if your policies are bundled together, providers will be less likely to drop you.

When to Avoid Bundling

Bundling does have a number of benefits, but in some cases, it is best to keep your policies separate. Here are some situations where it may be better to avoid bundling:

• Expensive auto insurance—Auto insurance rates can vary based on a number of factors. If your rates are higher because of local risk factors, you may want to separate your other insurance policies from your auto insurance.
• When premiums increase—Having your policies bundled together can make it difficult to shop for new policies, but you may be able to find better rates by comparing different insurers every so often.

Give us a call today at Aitken & Ormond Insurance to discuss how bundling your policies could work for you!

 

No one wants to have a car wreck. Still, sometimes, accidents happen. When they do, they can be scary, frustrating and inconvenient. Nevertheless, it is important to keep your wits about you.

The law and your insurer will often require a reporting process to document the accident. The right reporting might determine blame and penalties for the accident. Therefore, if you ever find yourself in a wreck, keep these tips in mind. They might help make the process easier.

1. Call the Police

Even with minimal damage or injuries, it’s often necessary to call the police after an accident. Police can help contain the scene of the accident. They also will most likely start the accident report and investigation if necessary. You might need this report when you file a claim with your insurer. So, consider the police an advocate that can help you get appropriate documentation.

2. Talk to the Other Driver

If you collide with another vehicle, the two drivers will have to exchange information. The key here is to do so politely, professionally and efficiently.

Don’t let anger get the best of you, and do not play the blame game. Never admit guilt or innocence in the accident — that’s the job of the police and insurers. Also, don’t leave the scene without exchanging contact and insurance information with the other driver. If there were any witnesses to the accident, take down their names and their contact information, as well.

3. Get a Police Report

When the police arrive, they will likely take statements, license and insurance information – as well as other documentation from the accident victims. They will then likely write up an accident report. This accident report might prove critical in establishing fault in the accident. Get a copy of the report for your records. Also, ask the responding officer any questions that you might have about the report.

In some instances, police will not start the report process if your accident occurred on private property.

4. Call Your Insurer

You usually need to call your insurance agency before leaving the accident scene. The insurer will start a claim, and help you understand how you qualify for help based on the plan. They might direct you to collect certain evidence to help verify your claim. This could include photos, the police report and the other driver’s information. Sometimes, your insurer will immediately dispatch a claims specialist to the scene of the accident to gather this evidence themselves.

When working on your claim, ask your insurer how your accident might affect your car insurance. Some drivers see their policy premiums rise following the accident. Others might see no effect on their policies. Work with your insurer to settle the claim as soon as possible.

An accident can leave even the most seasoned driver frazzled, but following these steps may help protect you from unnecessary worries. That way, you can focus on working with your insurance company to get your vehicle repaired as smoothly and as quickly as possible.

If you have questions on the claims reporting process, contact Aitken and Ormond. Our agents are ready and willing to help.

 

Dogs come in all shapes and sizes.

The American Kennel Club has recognized a staggering 199 dog breeds. Despite that, all dogs—whether a Chihuahua or a bull mastiff—come from the same species, and you may forget that they descend from wolves. However, insurance companies haven’t forgotten the wild past of domesticated dogs, and it could impact your insurance premium.

When you purchase an insurance policy, you pay an insurance premium which is based on many factors. One of those factors is the likelihood that a policyholder could suffer a loss. The higher the risk of loss, the higher the premium. For example, policyholders with a pool or trampoline pay more than policyholders who do not have those amenities. How does that relate to dogs? Perhaps because of their wild, ferocious past, dogs are considered an additional risk by insurance companies which means they may cause your insurance premiums to increase.

Typically, a homeowners or renters policy will provide coverage for liability arising out of dog ownership—usually related to a bite. According to the Insurance Information Institute, liability claims related to dog bites and other dog-related injuries cost homeowners insurers $854 million in 2020. For that reason, if a dog has a higher risk of causing a loss, the premium will be impacted.

While all dogs are the same species, insurance companies address dogs in different ways. As such, many insurance companies will charge an increased premium based on the breed of a dog. Some even may exclude liability coverage for certain breeds of dog altogether. Typically, larger breeds (e.g., pit bulls, Rottweilers, German shepherds) will lead to higher premiums or excluded coverage. Other insurance companies may make decisions on a case-by-case basis, which are dependent not on the breed of the dog but on any actual, vicious propensities of an individual dog.

Do you have questions on how a dog might affect your homeowners or renters premium? Give our office a call today and we will be happy to assist you.

 

Did you know there are two very affordable extended coverage options for your home insurance policy? Equipment Breakdown and Service Line endorsements offer additional protection to the appliances, systems, and utilities in and around your home. These options are at a much lower cost and cover a significant wider range than home warranties, and are additions to your home policy instead of a separate contract.

What is equipment breakdown coverage?

This coverage protects the electrical, mechanical, or pressure systems against unexpected repair or replacement.

This may include:

• Clothes washers and dryers.
• Computer equipment.
• Sump and well water pumps.
• HVAC and central A/C systems.
• Example of equipment breakdown insurance

A storm caused a power outage and with it damaged your computer and other electronic equipment in your home. With equipment Breakdown coverage, replacement or repair of the damaged products may be covered for repair or replacement, up to the amount provided by the policy.

Is equipment breakdown insurance worth it?

Essentially this is extending the existing coverage your home insurance offers. The difference is the type of event and the damage inflicted. Depending on your home configuration and the items you want to be covered, you’ll want to have a discussion with your agent to make sure the equipment breakdown option offered by your home policy will protect you. Not every carrier offers this coverage or some of the items you may want the extra coverage to protect. Equipment breakdown offers much more protection at a much lower cost. Plus, it is connected with your home insurance policy.

 

What about service line coverage?

Service line coverage will extend your existing homeowners’ policy to the underground piping or wiring that connects a home to a public utility or private system. This could be caused by:

• Collapse, but not including sinkhole or subsidence collapse.
• Electrical and mechanical or pressure systems breakdown.
• Rust or other corrosion, decay, deterioration, hidden or latent defect.
• Example of service line insurance

A tree root grows into a sewer pipe on your property causing a leak, service line coverage would cover the work required to locate and replace the damaged piping. You would be responsible for the deductible and then the coverage would cover up to the limit of the policy.

Is service line insurance worth it?

Make sure to discuss the details of this coverage with your local agent. Depending on the company there could be large variations in the options. A case in point is private septic systems and wells. The coverage often extends to the piping connecting the systems, but not the actual septic system or water pump.

The largest benefit of this coverage is the total cost of these types of repairs. If a sewer line is damaged, it may take a contractor several hours to locate, plus the cost of equipment rental and excavation. There are rarely problems with the service lines coming into our homes, but when there is an issue it disrupts everything in addition to the cost of repair. Often these policies are extremely affordable, many lower than $50 annually.

 

Next steps

Both coverages (service line and equipment breakdown) are extensions of your current home policy, which come at an additional cost. However, the coverages listed protect your property and investments that are at risk and are expensive to replace. These coverages will help give you peace of mind and when a problem arises, a swift resolution allowing you to continue with your daily life.

Before getting started, take a quick look around your home and note what items would carry a high expense of repairing or replacing should an issue arise. Do you have high-end appliances that would be difficult to replace if a power surge damaged them? If a tree or vehicle damaged your service lines, could you afford to excavate and repair?

As always, here at Aitken & Ormond Insurance, we are here to help you. Contact one of our agents and we can work together to find the best option for you. Being local and independent, we can find the best fit at the right price.

Let’s face it. Most people put off buying life insurance for any number of reasons, if they even understand it. Take a look at this list, do any of them sound like you?

1. It’s too expensive

In the budget of a young family, things like day care and car payments and possibly student loans eat up a good chunk of the money each month. Most people think that life insurance is just outside those “necessities” when money’s tight. But two things: life insurance is often not nearly as expensive as you might think, especially when you can get a good policy for less than the cost of a daily cup of coffee at the local café, and well, if money’s tight now, what if something happens to you?

2. That’s that stuff for babies and old people, right?

People of a certain age remember Ed McMahon telling them their grandparents couldn’t be turned down for a policy for any reason and figure that’s the target demographic for life insurance. Or, you might have been offered a small permanent insurance policy for your newborn, attractively presented with an adorable infant on the envelope. The truth of the matter is that these are very specific insurance products—just as there are many insurance products for adults in their working years.

3. I’m strong and healthy!

You eat right, you stay active, and you passed your last physical with flying colors! That’s GREAT! But you’re neither immortal nor indestructible. It’s not that something could happen to you while you’re at your strongest and healthiest, there’s no better time to get a policy to protect your loved ones. If you fall seriously ill or suffer significant injury later, it will make it tougher to get that kind of policy, if any at all.

4. I have life insurance through my job

.Many people are offered life insurance as part of their employee benefit coverage , and often, it’s the first time they encounter life insurance and have no idea that a $50,000 policy, or one or two times their salary, isn’t as much as they think it is. It sounds like a lot of money, until you figure that it has to cover some or all the expenses for your loved ones in your absence. Plus, if you leave the job, it’s typically the type of insurance that doesn’t “move on” with you.

5. I don’t have kids

Sure, kids are a big reason why some people get life insurance. But that’s not the only reason for needing protection. If there is anyone in your life who would suffer financially from your loss, your spouse or live-in partner, a sibling, even your parents, a life insurance policy goes a long way in making sure everyone’s still OK even if something happens to you.

6. Life insurance, it’s on my list, eventually

There’s no deadline on life insurance, no mandate from the government on purchasing it. Your parents may have never talked to you about its importance, and it’s certainly not the most invigorating topic for conversation. But don’t let your “eventually” turn into your loved ones’ “if only.”

If any of this sounds intimidating, just know that you can talk to your Aitken & Ormond Agent. They will help you figure out how much you may need, and also find a policy that fits into your budget.

You received your annual homeowners renewal notice and you’re surprised: Your premiums have gone up. The truth is, it’s common to see an annual increase in your homeowners insurance premium, and in many cases, it’s not the result of something you did. In fact, much of it may be totally out of your control.

Has your insurance premium gone up? Here’s what might be behind the increase – and what you can do to help keep your homeowner rates in check.

Reasons Beyond Your Control

Labor and construction material costs have gone up.

A part of your premium is based on how much it would cost to rebuild your property if there were a total loss (such as a fire or other covered catastrophic event that occurred). These reconstruction costs ebb and flow, and they rely heavily on economic factors and market prices of both materials and labor. As these costs rise, insurance carriers adjust your coverage amount to reflect these local factors.

Natural disasters are on the rise or weather has worsened in your area.

Local weather and environmental conditions have a big impact on your premiums. When catastrophes like wildfires, wind or hail are on the rise in your area, it increases the risk to your property, and insurance carriers typically increase rates in tandem. Upticks in damaging weather conditions like hail, wind, tornadoes and hurricanes can also cause a rise in premiums.

Your aging home.

As your property gets older, it becomes more vulnerable to damage and loss. Plumbing, HVAC and electrical systems are typically more liable to break down (or even cause fires or other issues), and structural components like the roof, foundation and other features can be more easily damaged by weather, as well as general wear and tear. As a result, your insurance carrier may increase your premiums to account for these added risks.

Though your home’s aging isn’t something you can slow down, you may want to consider replacing any fixtures or features that are more than 20 years old. When you do so, alert your insurance agent, and it may help reduce your rates.

Some Things You Can Do to Help Prevent a Loss

Even in the best of circumstances, a homeowner faces the possibility of a property loss. The good news is, there are some actions you can take to help protect against some of the most common losses. Also, there are options that may help ensure you get the homeowners insurance rate that works best for you. Here are a few ideas to consider:

Smart home technology

Smart home devices, such as monitoring systems, have sensors that can alert you to water leaks, sounding smoke alarms, temperature changes in your home, and the opening of doors and windows.

Higher deductibles

Sometimes, increasing your homeowner’s deductible can be a helpful way to save money on your homeowner’s insurance policy. That means that, in the event of a loss, you will be responsible for the higher deductible you selected, so be sure you’re comfortable with the amount. Ask your insurance agent to explain your deductible options before you decide what to do.

Inquire about savings opportunities with your insurance agent

Whether it’s a multi-policy discount you can get by bundling your homeowners with auto or an umbrella policy, or a savings derived from consistently paying your premium on time, there may be some options to help save you money. It’s worth a phone call to your insurance agent to find out.

The Bottom Line

As you can see, insurance rates can go up – often in response to items out of your control – environmental changes, the economy and more. Though in most cases you can’t change these factors, you can help ensure you’re getting the best service and coverage for the increased rates you’ll be paying.

 

To do this, ask your insurance carrier the following questions:

• How quickly do you service claims?
• Do you outsource any aspect of your customer service?
• How can you help me better protect my home and property?
• Why have my rates increased? What does the added cost cover, and how would it help me in the event of a loss?

Reach out to your Aitken & Ormond agent today to make sure you’re getting the right coverage to protect your home.

You may not be able to protect against all the risks your business faces, but you can manage some of them with business insurance. This is what a business owner’s policy, or BOP, is designed to help you do.

A BOP is a policy designed specifically for the needs and budget of small business owners, and the risks they commonly face. BOPs bundle two types of protection in a single policy — commercial property and general liability insurance — which allows providers to sell them for less than two policies sold separately.

BOPs are also customizable. You can add on coverages to tailor a policy to the specialized needs of your business or industry.

A BOP may be right for you if your business has fewer than 100 employees, meets certain maximum income requirements and is a low-risk operation. Businesses that are larger, highly specialized or have high-risk operations may need more coverage than a BOP can provide.

Here’s a closer look at the coverages that are included with a BOP.

Property Insurance

The property portion of a BOP covers damage to your business caused by fire, explosion, windstorms, theft, vandalism and any other perils/risks specifically listed in the policy. The types of property that are covered by a BOP include:

• Buildings you own, lease or rent
• Essential business personal property such as equipment, inventory and supplies
• The property of others while it is in your care
• If your building is vandalized, for example, your BOP policy will help cover the cost to repair the damage and replace any damaged contents. If a customer’s property on the premises was also damaged, a BOP will help pay to replace that, too.

But BOP property coverage is not all-inclusive. When purchasing a policy, be sure you understand what business properties and perils/risks are included and excluded to avoid any surprises should you need to file a claim. If you want broader protection beyond the standard BOP, you may be able to purchase a “special” BOP form that provides all-risk coverage for a higher premium.

Liability Insurance

Lawsuits can be costly even if you’ve done nothing wrong. The liability portion of a BOP offers financial protection if a third party sues you for:

• Damage to the third party’s property while under your care
• Physical injuries suffered on your premises, such as slip-and-fall accidents
• Advertising injuries, including copyright infringement, slander and liable

Your BOP policy will help pay lawyers’ fees, settlements or judgments and other costs related to a lawsuit. It may also a portion of medical expenses for an injury sustained by a third party on your premises or as a result of your business operations or products.

Business Income Insurance

Property insurance may cover your business’s physical assets, but it does not cover lost revenue that results from those damages. Business income insurance is a way to help sustain cash flow if you need to suspend operations while recovering from a covered property loss.

Many BOPs include business income insurance as part of the property coverage. If your business is interrupted, this important coverage can help pay for ongoing expenses such as employee payroll and rent. It may also cover the extra expense of running your business out of a temporary location while your property is restored.

Many policies limit business income protection to six or 12 months of lost revenue. Be sure to review the time limits associated with your policy with your insurance professional.

Additional Coverages

If your business or industry faces additional hazards beyond those covered by the BOP, you can customize your policy with riders or endorsements that add insurance protection for specific risks. For example, many insurance providers offer endorsements for:

• Data breach: If your business experiences a data breach, this coverage can help with the cost of notifying affected parties, protecting stolen identities and engaging credit monitoring services, as well as help with legal defense, settlement or judgment costs.
• Professional liability: This coverage protects your business from lawsuits claiming that your business committed a negligent act, error or omission in professional services provided to a client or customer.
• Spoilage insurance: If you sell perishable stock such as food or plants, spoilage insurance can protect your lost income should stock expire due to contamination, equipment breakdown or a power outage.

A standard BOP covers the primary risks associated with running a small business, but it doesn’t cover everything. You’ll still need to purchase workers’ compensation insurance if you have employees, commercial auto insurance if you have a business-owned vehicle, and other types of insurance depending on your business. If you need extra coverage beyond the limits of the standard BOP, you can also supplement your coverage with an umbrella insurance policy.

Talk to an Aitken & Ormond insurance professional to learn if you qualify for a BOP and if you do, what coverages and limits may be right for your business.

If you own a boat you want to ensure your boat is fully protected.

A homeowners insurance policy may only provide limited coverage. Additionally, if you file a claim for your boat, it may affect your homeowners insurance premium. Purchasing a separate boat insurance policy can lessen the risk to your homeowners policy.

Boat Insurance Policies

A separate boat insurance policy will provide tailored protection for your boat. These policies are typically obtained to cover smaller watercraft (26 feet long or less), and yacht policies are provided to cover larger, more expensive watercrafts. There are two basic parts of a boat insurance policy:

• Physical damage protection – covers accidental loss or damage to the boat hull, motor(s), and any other equipment used to operate the boat.
• Liability (Property and reimbursement) coverage – covers legal obligations to third parties such as bodily injury, death, and damage to someone else’s property.

Types of Physical Damage Coverage

In the event of a loss to your boat, the amount of money you receive from the insurance company may depend on the type of policy you buy and the age and condition of the boat.

Depreciation is the decrease in value of an object over time due to wear and tear, and some types of insurance policies factor this into your settlement. The types of loss/settlement options include:

• Agreed Value Policy – this type of policy covers the boat based on its value when the policy is written. This policy tends to be more costly, but depreciation is not included in the settlement of the claim. This is the recommended type of physical coverage.
• Actual Cash Value Policy – this type of policy is less costly but takes depreciation into account in the event of a claim.
• Replacement Cost Policy – provides coverage to return your boat to its pre-accident condition or better.

In addition to ensuring physical damage and liability protection for your boat, check with your Aitken & Ormond agent to see what optional coverages are offered by insurance companies.

Boating in Michigan

We live in a state where boats cannot be used year-round. It is important to understand any storage requirements on your policy. You may be required to store it inside, and freezing, ice damage, and damage caused by certain vermin may not be covered.

There may also be navigation limits on where you are allowed to take your boat. If you plan to use your boat other than on the Great Lakes, read your policy and consult with your agent to ensure your policy will cover it.

Be Prepared in Case of a Claim

When you start a new policy on your boat, it is important to take pictures to document the condition of your boat. You may also want to consider having a survey, so you have a written report of the boat’s condition. This may help prevent issues in the event a claim is filed for physical damage.

Contact your Aitken & Ormond Insurance Agent to find the right policy so you can relax and enjoy Michigan’s beautiful lakes this boating season.