Who Should Invest in Umbrella Insurance and Why?

Most of us understand and appreciate the value of insurance. It creates peace of mind in a world filled with uncertainty. The same can be said about umbrella insurance. It’s insurance that takes over when the maximum limits or coverage of your primary insurance have been maxed. This insurance kicks in once your primary insurance has been applied to the full extent. Umbrella insurance isn’t a common knowledge term for most people. Many of us have heard of it, but few of us know how this insurance works and who it’s best suited for.

What is Umbrella Insurance?

Umbrella insurance is additional liability insurance that can only be used after the limits of the primary insurance have been met or exhausted. Umbrella insurance can be purchased in different amounts. The amount of coverage a person purchases should be in direct relation to a person’s assets as well as other valuable items that would create significant loss or financial hardship if a person was sued or found responsible for something. This insurance is used to create another layer of security when it comes to protecting your assets. 

Who Should Invest in Umbrella Insurance?

Anyone who has assets they wish to protect and stands the chance of being sued or held responsible for something that could threaten their assets or financial standing could benefit from umbrella insurance. You may have a prominent job or position, or simply have a lot of assets that you could lose if you were sued. Regardless, if you have assets or financial standing that you want to protect, umbrella insurance is a liability insurance policy that can create another layer of protection for your assets and your financial standing.

The key question regarding umbrella insurance may be how much you should purchase rather than if you should invest in it. If you have assets that would create financial hardship if you lost them, this type of insurance is probably a good idea. The coverage limits can be quite diverse. The agents of Covermax Insurance of Bakersfield, CA can help you determine if umbrella insurance is a good investment for you as well as how much coverage would be needed to protect your assets adequately. Give us a call. We’re happy to answer any of your questions.

What every California resident should know about flood insurance

Floods strike every year in Bakersfield, CA, and this year wasn’t any exception. What does this mean to the locals? We all need to prepare early in advance for the next catastrophic event. The first place to start is purchasing flood insurance. At Covermax Insurance, we educate our residents on the importance of buying flood insurance and how to stay safe during a flooding event.

1. Homeowner insurance does not cover flood damage

Simple and clear. Your home insurance policy does not cover flood damage in your home. It is essential to get this clear to avoid misunderstandings.

2. You can still buy flood insurance even if you are renting

Flood insurance is not just for a homeowner but for everyone in general. Business property owners can also purchase flood insurance to protect their property from flood damage. Flood insurance typically covers the structure of the buildings and the contents, whether it is a home or business.

3. You need flood insurance even if you don’t live in the flood zone area

While flood insurance is not a legal requirement in Bakersfield, CA, everyone is financially vulnerable to floods. There have been multiple reports of flood damage by residents living outside high-risk areas. Therefore, whether you are in a high risk or low-risk area, having a form of flood insurance can help you save thousands if not millions due to flood damage.

4. If you are not in a high-risk area, you could pay less

For houses in or near high-risk areas, flood insurance can be a lifesaver. That means that they are likely to pay double or more than residents outside the mapped zones. If you buy flood insurance after reports or warnings by the government, you are also expected to pay more than other people who purchased before the announcement. You should also keep in mind that flood insurance has a whole 30-day waiting period.

For more information about flood insurance in Bakersfield, CA, reach us at Covermax Insurance today!

What Condo Insurance Covers

Condo insurance has certain features that make it unique. Homeowners are required by their mortgage lenders to have home insurance. Renters insurance is also often required and serves to protect personal possessions from disaster. In most people’s minds, condos fall somewhere between these two. They still need to be protected by adequate insurance. At Covermax Insurance, our team works with condo owners throughout the Bakersfield, CA area to get the coverage they need. 

How Does Condo Insurance Work?

It’s essential to understand how condo insurance works. Each condo association purchases a master policy. This ensures that the physical structure, common areas, and any furniture or fixtures on the grounds are protected. Each condo owner will have their own coverage for their unit. As every condo association has different policy types, it’s important to understand what your condo association’s policy looks like. Also, associations tend to modify their policies frequently. Knowing what coverage they have can help you understand the type of coverage that you need for your unit. 

There are two distinct types of condo policies for associations: “walls out” and “walls in.” A “walls out” policy protects everything on the outside of a condo unit. A “walls in” policy will cover some of the fixtures inside of a condo unit. It will not include anything that has been upgraded, though. Regardless of the type of policy, personal possessions inside of a condo, including electronics, furniture, or clothing, will not be covered. 

Protecting your condo home is important, and understanding your association’s master policy it the first step. When you are ready to protect your home, see our team at Covermax Insurance. We work with condo owners throughout the Bakersfield, CA area, so we understand the challenges you face. An agent will get to know you and your situation so they can recommend the best coverage options for you. We want you to know that we’re here for you before and after an emergency happens. A condo insurance policy is a tool that protects you financially. So come in and talk with one of our agents. Get the protection you and your condo needs today!

What Auto Insurance Do I Need to Carry in California

Bakersfield, CA is located in Kern County, the home to the most dangerous highway in America, Highway 99. No matter where you live, auto insurance is something that you need if you drive. But it is even more important in this particular area. At Covermax Insurance, we understand auto insurance laws and requirements, and as Independent Agents, we represent a wide selection of carriers. We can help you to make sure that you have the insurance that you need to carry in California.

In the state of California, per insurance code 11580.1(b), all drivers are required to carry a minimum amount of liability insurance. Coverage must be at least $15,000 in personal injury coverage with $30,000 maximum per accident and $5,000 in property damage. This is for a personal vehicle, commercial and business vehicles have different limits. Failure to comply with these minimum limits will result in registration suspension. Beyond that, you may be cited and possibly have your vehicle impounded. 

This is the insurance that you need to carry by law. If you have a loan or a lease on your vehicle, you will be required to carry collision and comprehensive coverage as well. While liability coverage protects other people from you in an accident, collision and comprehensive insurance protect the actual vehicle. If you own little or nothing, then you probably are okay just having the minimum amount of liability insurance required by law. Still, if you own a home or have assets, the minimum is perhaps not enough to offer you protection. 

Talking to an experienced insurance agent like the ones at Covermax Insurance in Bakersfield, CA is vital to make sure that not only are you in compliance with the law, but your assets are also protected. Give us a call or stop by our office for a no-obligation quote. We have the expertise that you are looking for.  

Types of commercial insurance policies all California businesses need to consider

As a small business owner in the Bakersfield, CA area, knowing precisely the insurance policies you need to protect your business can be exhausting, given the large number of options available. We at Covermax Insurance are here to help you navigate the various commercial insurance products and design a custom package right for your business. Here are the insurance coverages all Californian companies should consider. 

General Liability 

Although general liability coverage is not mandatory in California, your business must carry a policy. General liability will protect you in the event you are sued by a third party such as a vendor or a client. Not only will a general liability policy cover any damages, but it will also cover the cost of defending your business in court. 

Workers compensation 

If you have employees in California, you will be required to carry workers’ compensation insurance. In the event one of your employees is injured as a result of their job duties, workers’ compensation will cover their medical costs in addition to the time they need to take off of work as a result of the injury. 

Property insurance 

A commercial property policy will protect you in the event your office equipment, supplies, and fire or other covered events damage computers. A commercial property policy can also cover you for lost income in the event your business needs to be closed temporarily as a result of a covered incident. 

Auto Insurance 

In the event your company uses auto or vans to operate the business, California will require you to carry business auto insurance. It will cover the business if one of the cars is involved in an accident with a third party. 

If you would like to learn more about putting together a comprehensive commercial insurance solution for your business, reach out to Covermax Insurance today. We proudly serve the Bakersfield, CA area. 

Most common homeowners claims made in California

As a homeowner in the Bakersfield, CA area, not only is it essential to carry a homeowners’ insurance policy, but it is crucial to understand the most common types of claims so that you can take steps to protect your home. The experts at Covermax Insurance will be happy to discuss your homeowners’ policy and make sure you are protected against the most commonly made claims in California. 

Wind and Hail coverage

Damage caused to homes from wind and hail is the most commonly made claim under a homeowners’ policy. If you know a wind or hail storm is coming, make sure to secure any outdoor furniture that could be picked up by the wind and cause damage to the home. If a hail storm comes, be sure to check your roof for damage right away, as failure to fix the damage could lead to more water damage inside. 

Water damage 

Damage to the home caused by water is the second most common claim made under home insurance policies. It is critical to take steps, such as proper sump pump maintenance, to help protect your home from heavy rain. Also, adding insulation to pipes to prevent them from freezing is an important step. It is crucial to keep in mind that coverage from water damage does not include flood coverage. 

Other types of property damage

In addition to storms and water damage, there are many ways damage can be caused to your home. These "other" types of events are the third leading cause of home insurance claims. The claims include events such as falling objects, theft, and vandalism. Installing a security system can help limit theft and vandalism claims. 

If you are interested in learning more about common home insurance claims and how to protect your home, reach out to the agent at Covermax Insurance today. We proudly serve the Bakersfield, CA  area.