PROTECTING YOUR FAMILY

An Agent Answers Your Most Common Insurance Questions

Chris Kottsick has seven years of insurance experience and recently opened his own office with Nodak Mutual Insurance Company. Here, he answers five common insurance questions.

How often should I compare insurance companies?

Companies that offer auto insurance on-line encourage shopping because they might offer discounts up front, but I frequently see these companies increase premiums at renewal, sometimes as quickly as six months. Comparing companies every couple of years is a good recommendation, but typically you’re rewarded for loyalty. For example, every year for being accident free, Nodak Mutual gives a 3% discount up to a maximum of 26%, and we will forgive the first claim if you’ve had no chargeable accident the prior five years.

Do I need flood insurance when the new flood map comes out?

If your home is placed into the new high-risk zone and you have a federally backed mortgage, you’ll be required to have flood protection. The protection will be optional for those without a mortgage. If you purchase flood insurance before the new flood map comes out, your zone will be grandfathered in, keeping your premium down. However, if you wait until after the new map is released, that same policy premium will increase significantly — as high as $3,000 to $4,000. Another benefit of the grandfathering is when you sell your house you can transfer that flood policy over to the new owner.

How do I get protection for sewer backup or sump pump failure?

Water back up or sump discharge coverage is an endorsement that is added to a homeowner’s policy. Because we see this type of loss regularly each year, it is recommended for homes with a basement, particularly those with finished basements. Visit with your agent about the need for this coverage.

What’s new in home insurance?

Equipment breakdown coverage (EBC). This insurance fills the gap in a homeowner policy by protecting many of the valuable items from just breaking down. Items include televisions, media or music systems, appliances, and most electrical items. This is so important that we offer it in all of Nodak Mutual homeowner policies. Discounts are another area in which companies are creating new and different ways for customers to save money. For example, not long ago we started offering a new roof discount in response to many of the weather-related claims of the last few years. If homeowners see their premiums increase as a result of claims and replaced their roof, this is another great way for them to save.

How can I reduce the premium for my teen driver?

It’s important to start by stressing safe driving — no claims or violations. There are several discounts available, including good student and defensive driver discounts. Make sure to take advantage of all discounts, including multi-vehicle and multi-line, in which you insure your car and your home together, or your car and life insurance together, for instance. I offer a discount just for paying via electronic funds transfer. Enroll your teen in Route 1000 offered by the North Dakota Farm Bureau. This safe driver program rewards teens with a $1,000 savings bond for being claims and violation free for 1,000 days. In addition, teens will receive a 7% discount on their Nodak Mutual Insurance policy. For more information go to Route1000. com.

For all your insurance needs, contact Chris Kottsick at 701-3645511.