Replacement Cost vs. Cash Value for Homeowners Insurance

Homeowners insurance protects the investments you've made in your property and other assets by providing compensation after theft, damage, or other issues. Understanding the differences between policies that offer replacement costs and cash value can help you choose the appropriate coverage for your needs.

Replacement Cost Homeowners Insurance

If you choose this type of policy, you will receive the replacement cost of your stolen or damaged property. Your insurance company will provide a settlement that covers the cost of buying new items to replace the damaged goods. If your home becomes a total loss after a catastrophic event, replacement cost insurance covers the full expense of constructing a new structure of comparable quality. Because of this, the premiums for these policies tend to be higher than those for cash value policies.

Cash Value Homeowners Insurance

These policies offer you cash for the current value of a damaged or lost item when you file a claim. For example, if your home must be rebuilt, the insurance company will pay the market value of your home rather than the cost to rebuild a new home of the same quality. The same goes for your other possessions. If you need $1,000 to buy a new couch but the damaged one has an estimated value of $500, your insurance payout would be $500 for that item. If you choose this type of coverage, you may need additional insurance for items that are uniquely valuable and appreciate over time, such as artwork, antiques, classic cars, and other collectibles.

To learn more about your options for homeowners insurance, schedule a consultation with the team at Connell & Curley Insurance Agency Inc. We've been serving clients in Natick, MA and the surrounding areas for more than five decades. Call (508) 655-1112 or complete our online form to request an appointment for an insurance quote.

Four Steps to Take Before Filing an Insurance Claim

Filing an insurance claim is an effective way to avoid financial stress during a difficult time. However, filing a claim for an accident, health issue, disaster, or unforeseen hardship is a multi-step process, so it's important to be prepared in case the unpredictable occurs. Here are four steps you should take before filing an insurance claim.

Notify Your Insurer as Soon as Possible

Insurance claims are easier to adjust when the accident, disaster, or loss has recently occurred, and the evidence is fresh and readily available. It's therefore vital that you notify your insurance agent as soon as you can if you are planning to file a claim. Some policies set a time frame for reporting a claim, and you don't want to miss your window of opportunity.

Review Your Insurance Policy

Before filing a claim, you should also revisit your insurance policy to review what it does and does not cover. Make sure that you understand your policy's guidelines so that you fulfill your obligations for receiving payment. If you have any questions or concerns about your policy, contact your agent for a more detailed explanation.

Keep Track of All Documents and Records

Whether you're filing an auto insurance claim for an accident, homeowners or renters claim for damages, or a health claim for medical services, it's critical that you keep track of all documents and records related to your claim. These may include police reports, photographs of the accident or damage, and medical evaluations and bills. Having copies of these documents together and ready to go will increase your chances of successfully filing a claim.

Preserve Damaged Property

If you have been in an accident or have suffered damage to your home, you should also take steps to preserve your damaged property. Repairing, discarding, or causing further damage can invalidate important evidence related to your insurance claim. You should only make changes to your damaged property once an adjuster has completed a full evaluation.

Accidents, losses, and hardships can occur without warning, so it's essential to be prepared to take the necessary steps in filing a claim. Since 1965, Connell & Curley Insurance Agency Inc. has been providing residents of Massachusetts's MetroWest with auto, home, life, health, and business insurance coverage. To request a quote or consult with an agent, contact us today by calling (508) 655-1112.

Three Ways to Prepare Your Teen for the Road Test

For Massachusetts teens, 16 is an exciting age. For their parents, it comes with mixed feelings. If you're a parent, you probably find yourself looking forward to the convenience of your children providing their own transportation one day, but you may also feel concerned about their safety on the road. Here are a few ways to help your new driver make sure they have the knowledge and skills they need to be ready for the road test.

Talk to Your Teenager About Driving

Teenagers often look forward to the newfound independence that comes with a driver's license, but it's important that you talk to your son or daughter about your expectations. Emphasize that driving is a privilege, not a right, and establish clear rules, such as:

• No devices while driving
• Set driving hours/curfews
• Limited number of passengers
• Repercussions for dangerous driving
• Paying for their own auto insurance

Practice With Them in Various Weather Conditions

Drivers education introduces your teen to different driving situations, but set practice times during specific semesters means that they likely won't have the opportunity to drive in the many types of weather they'll face on the road before they take their driving test. Be sure to practice with them in as many weather conditions as possible, including heavy rain and snow, to ensure real-world preparedness.

Encourage and Support Their Progress

Equally as important as promoting safety and house rules for driving is instilling self-assurance in your teen as they make progress. As enthusiastic as they may be, they may also feel nervous about their upcoming road test and the freedom that comes with a license. Encourage them when they struggle and make a point to praise their successes. This may help prevent anxiety on the road and lead to safe, confident driving.

If your teen is getting ready to hit the road, the experienced local agents at Connell & Curley Insurance Agency Inc. can help. Contact our Natick, MA office today for a competitive auto insurance quote.

Term Life and Whole Life Insurance: What's the Difference?

One important insurance product every head of household should carry is life insurance. Life insurance kicks in when a policyholder passes away. It is used to cover funeral costs and provide a financial safety net for dependents. Two of the main types of life insurance are term life and whole life, each offering benefits for different circumstances.

Term Life Insurance

Term life insurance provides a payout if the policyholder passes away during a specific timeframe, which could be 10, 20, or 30 years for most policies. Term life is the cheapest type of life insurance since it only pays if the policyholder dies prematurely. Term life insurance is best utilized during a family’s main billpaying years, such as when they’re paying mortgages and raising children. The amount should be enough to replace the policyholder’s income and provide the family with the same standard of living. Ideally, children will be grown, investments will be paid off, and retirement savings will be adequate by the time the policy expires.

Whole Life Insurance

Whole life insurance is permanent and guarantees a benefit. The policy's cash value slowly grows at a guaranteed, tax-deferred rate, leaving the policyholder with the option to borrow against it or cash it in early. Whole life insurance is more expensive than term life because the payout is guaranteed, but the premium never changes. Just as with home and auto insurance, whole life insurance can be customized to meet a buyer’s specific coverage needs.

Invest in Life Insurance Today

If you own any assets or have any financial dependents, you can’t afford to not invest in life insurance. A solid policy from a trusted insurance company offers peace of mind that your investments will be protected and your loved ones will be cared for should something happen to you. Connell & Curley Insurance Agency Inc. offers term and whole life insurance policies, and we can customize a plan that works for your family. Call our insurance agents today at (508) 655-1112 to learn more.

Four Types of Insurance Businesses Need

Business owners need to purchase insurance policies that protect their companies' assets as well as their personal livelihoods. Even when risk is not immediately apparent, running a business carries a certain chance of financial loss. These are the four most common types of insurance that businesses use to mitigate these potential losses.

Professional Liability 

Businesses can be sued for negligence if a client perceives that errors or performance failures led to financial damages. Depending on the specific products or services provided, a professional liability policy can incorporate various protections against these instances and can be customized for the needs of the business. It usually pays for damages, medical fees, and legal costs.

Workers' Compensation Insurance

Businesses that have employees must purchase a workers' compensation policy. This type of insurance covers death and disability benefits, medical bills, lost wages, and other related costs that result when a worker is injured on the job. Even companies that aren't involved in physical labor should keep in mind that employees can sue for a slip and fall accident or an office-related condition like carpal tunnel syndrome.

Property Insurance

This type of policy is a must for businesses that own or lease a workspace, warehouse, office, or commercial property. Property insurance protects the items stored in the business location from theft, fire, and natural disasters. This policy will cover the cost of replacing furniture, inventory, computers, devices, and supplies.

Business owners who work from home must purchase additional insurance to cover work-related equipment, inventory, furniture, and other items. If they are used for business purposes, these items are not covered under a homeowner's policy.

Vehicle Insurance

When motor vehicles are used in the course of business, they must be properly insured. Businesses should purchase both comprehensive and collision coverage for work vehicles. Employees who occasionally use their own vehicles for work purposes (except for deliveries) are covered by their personal auto insurance policies.

Connell & Curley Insurance Agency Inc. has been serving clients in the Natick area for more than 50 years. Contact us online today or call (508) 655-1112 to learn more about how we can assist with business insurance needs.

How to Talk to Your Teen About Safe Driving

For many teens, hitting 16 is synonymous with becoming a driver. Although this is an exciting time for teens seeking freedom and more responsibility, it can also be dangerous if they are not correctly prepared. Unfortunately, the Centers for Disease Control and Prevention reports that driving is the main cause of death for teens in the U.S., so take the time to discuss these safe driving tips with your teen.

Take Them Driving 

It may be difficult to remember all the nuances of safe driving from the kitchen table. That's why the best time to give safe driving tips is in the car itself. Once they have their learner's permit, take your teen on a slow drive with you driving one way and them driving back. This way, you can demonstrate safe driving techniques and then let them practice. This also allows teens to learn how to drive in a safe environment.

Underline the Dangers of Driving

Teens may see driving as a path to freedom, seeing their friends, and having fun. While driving may be the route to all of these things, remind your teen that driving itself should not be purely fun. Explain to them that operating a two-ton piece of heavy machinery should take all of their attention and that there are serious consequences associated with taking their eyes off the road for even a second. According to the National Highway Traffic Safety Administration (NHTSA), distracted driving killed 3,450 people in 2016 alone. Highlight other statistics about unsafe driving from the NHTSA to convey real and possible consequences.

Set a Good Example

From wearing your seatbelt to putting your phone away while driving, it's crucial to demonstrate proper driving tips to teens no matter what. Even younger teens who are years away from getting their licenses will assume that however their parents behave behind the wheel is acceptable, meaning that if you text and drive, they may do it one day, too.

Explain That Driving Is a Privilege

Many teens may see driving as a rite of passage, especially when their friends begin to drive. However, remind them that driving is a privilege that can be revoked at any time. Set clear ground rules, such as no speeding and always wearing a seatbelt. If these rules are broken, suspend their driving privileges to send the message that safe driving behavior is mandatory.

Talking to teens about safe driving is tricky but necessary. Remember that teens are bound to make mistakes, and the right auto insurance can make all the difference. Although Massachusetts may be one of the most expensive states for car insurance, Connell & Curley Insurance Agency Inc. can help you find possible discounts that encourage responsible teen drivers, such as maintaining a safe driving record and good grades. Contact us at (508) 655-1112 to learn more.

Five Ways to Pay Less for Car Insurance

Car insurance is a major expense for drivers, but a necessary one. An auto policy is an investment in legal and safe driving that protects the driver's financial well-being by covering the costs of an accident. Those who feel they are paying too much for car insurance should try these five strategies to lower their monthly policy premium cost.

Avoid Accidents 

It may sound obvious, but driving safely is the best way to keep auto insurance premiums down. The longer a driver goes without having a ticket, accident, or insurance claim, the lower his or her premium costs will be.

Get Quotes Before Buying a Car

Some cars are more expensive to insure than others. Before purchasing that new sports car or fully loaded SUV, get insurance quotes to make sure the full monthly cost to drive the vehicle is affordable. Cars with good safety records and pre-owned cars that have not been in an accident are often less expensive to insure.

Bundle Policies

Purchasing all necessary insurance from a single company can dramatically reduce your rates. When getting auto insurance quotes, look at the cost to combine the car insurance policy with homeowner's or renter's insurance for substantial discounts.

Increase Deductibles

The deductible is the amount the driver pays out-of-pocket in an accident before insurance coverage takes effect. The lower your deductible, the higher the monthly premium cost. Choosing a deductible of $1,000 or more provides the best monthly savings.

Review Insurance Needs

Drivers who have older cars may not need collision or comprehensive coverage. Check the value of the car each year before renewing the policy to avoid paying for unnecessary coverage that exceeds the vehicle's value.

This list of tips gives a great general overview, but it's just the starting point. Drivers in the Natick area can trust Connell & Curley Insurance Agency Inc. to work with them one-on-one, providing more specific insights tailored to their unique situation. Get in touch with us today to discuss your insurance needs with one of our experienced representatives.