Do I Need Renter’s Insurance?

Posted on May 19, 2023June 8, 2023 by admin

Shield Insurance Agency Blog | Renter’s Insurance | Start A Quote Today!

At Shield Insurance Agency in Michigan, we hear the question, “Do I need renter’s insurance?” often. In most cases, the answer is yes, but it’s important to understand the details. Answering these questions can help you determine if you need renter’s insurance.

First, let’s talk about the different types of rental insurance. The most common type is apartment insurance, which covers your personal belongings in case of theft, fire, or other damage. This type of insurance also includes renters liability insurance, which protects you if someone is injured in your apartment and sues you for damages. Another type of rental insurance is loss of use coverage, which pays for temporary housing if your apartment becomes uninhabitable due to a covered event.

Does Your Landlord Require Renter’s Insurance?

Some landlords require their tenants to have renter’s insurance. This provides protection for you, as well as potential liability protection for the landlord.

If your landlord doesn’t require a renter’s policy as part of your rental agreement, it’s still a good idea.

Can You Afford to Replace Your Belongings?

You may think that you don’t have any valuables. However, even inexpensive items can add up quickly. Consider your furniture, clothing, and any important items like jewelry or electronics.

What would happen if your personal property was damaged? Do you have the financial resources to replace your items? If you can’t afford to repurchase these items, a renter’s policy is important.

Can You Afford a Hotel and Living Expenses?

Most renter’s policies will cover accommodations and living expenses if you have to leave your home due to a covered event. If you are concerned that you don’t have the emergency funds to cover this situation, a renter’s policy can provide needed peace of mind.

Do You Need Liability Protection with Renter’s Insurance

If someone is injured in your home or their property is damaged, you can be liable for the damages. This can put a strain on you financially and even jeopardize your future.

A renter’s policy provides coverage if you have you are held responsible for a liability claim.

Reach Out To Us

If you need renter’s insurance in Michigan, contact Shield Insurance Agency. We offer renter’s insurance policies, as well as homeowners, auto insurance, and more to meet all your insurance needs.

Five Parts of an Insurance Policy

Posted on May 17, 2023May 10, 2023 by Shield Insurance Agency

Shield Insurance Agency Blog | May 19, 2023 | Insurance | Start a quote today!

Insurance policies can be complex and confusing, but understanding the different parts of a policy is essential to ensure that you have the right coverage for your needs. In this blog post, we will discuss the five parts of an insurance policy: premium, deductible, policy limits, exclusions, and riders.

1. Premium: The premium is the amount you pay for your insurance coverage. It is typically paid on a monthly or annual basis and is based on several factors, including your age, location, and the type of coverage you need. The premium is the cost of your insurance policy, and it is important to choose a premium that fits your budget.

2. Deductible: The deductible is the amount you pay out of pocket before your insurance coverage kicks in. For example, if you have a $500 deductible and your car is damaged in an accident that costs $1,000 to repair, you will pay $500, and your insurance company will pay the remaining $500. Choosing a higher deductible can lower your premium, but it also means you will pay more out of pocket if you need to file a claim.

3. Policy Limits: Policy limits are the maximum amount your insurance company will pay for a covered loss. For example, if you have a $100,000 policy limit for liability coverage and you are sued for $150,000, you will be responsible for paying the remaining $50,000. It is important to choose policy limits that are high enough to protect your assets in the event of a lawsuit.

4. Exclusions: Exclusions are specific situations or events that are not covered by your insurance policy. For example, if you have a homeowner’s insurance policy that excludes flood damage, you will not be covered if your home is damaged by a flood. It is important to read your policy carefully to understand what is and is not covered.

5. Riders – Additional coverage and options: Riders are additional coverage options that you can add to your insurance policy. For example, if you have a homeowner’s insurance policy that does not cover earthquake damage, you can add an earthquake rider to your policy for an additional cost. Riders can provide additional protection for specific situations that are not covered by your standard policy.

Does Your Insurance Meet Your Needs?

Understanding the different parts of an insurance policy is essential to ensure that you have the right coverage for your needs. It is important to review your policy regularly and make changes as needed to ensure that your coverage meets your current needs. If you have questions about your insurance policy or need help choosing the right coverage, contact your insurance agent for assistance.

At Shield Insurance Agency, we are committed to helping our clients find the right insurance coverage for their needs. Our experienced agents can help you understand the different parts of your insurance policy and make sure that you have the coverage you need to protect your assets and your family. Contact us today to learn more about our insurance products and services.

Fireplace Safety Tips

Posted on May 10, 2023May 3, 2023 by Shield Insurance Agency

Foremost Blog | August 26, 2021 | Fireplace Safety | Home Insurance | Start a quote today!

As the weather gets colder and your fireplace becomes more than a decorative focal point, be sure it’s up for the task of keeping your family warm and toasty – and safe. Our list will help you keep track of proper maintenance and make sure your fireplace is ready for regular use this winter.

Inspect the fireplace and chimney

Have a professional inspect and clean your fireplace and chimney each year before you begin using it for the season. If you’re using a gas or wood fireplace, open the chimney flue prior to starting the fire to let fresh air feed the flames and allow smoke to exit. Close the flue once the fire is put out.

It’s also important to keep the area surrounding the fireplace free from flammable objects. Be extra cautious of this during the holidays. Keep decorations and stockings a safe distance away from a fire and don’t ever use your fireplace to burn Christmas trees or wrapping paper. Pine boughs and paper burn intensely and can lead to a roof or chimney fire.

Gas fireplace safety tips

Gas fireplaces are exceedingly popular for their efficiency and cleaner burning properties. Enjoy them safely by acknowledging the following safety conditions:

Know your clearance zone. Many gas fireplaces have technology that makes it safe to place electronics and décor near the fireplace or on the mantle. However, certain items should never be placed within your fireplace’s clearance zone. These items include paper items like books, newspapers, and magazines; fabrics, like blankets or drapes; and wood.

Proper ventilation is key. Natural gas and carbon monoxide can kill. Make sure your flue and vents are all functioning properly.

Maintain your safety barrier. Whether it’s glass or metal, keep your safety screen in excellent condition. This will prevent flames or burning material from getting out of your fireplace, and keep flammable items from getting in.

Electric fireplace safety tips

Electric fireplaces make it possible to have a fireplace in a location that wouldn’t normally be able to fit one. The flame isn’t real, but that doesn’t mean they are without risk. As a source of heat, an electric fireplace should always be treated with care. In addition to maintaining the clearance zone discussed above, observe the following safety tips when using an electric fireplace.

Use proper cords. Many companies do not recommend using extension cords for electric fireplaces. Some will allow grounded, heavy-duty cords that are the appropriate gauge and wattage rating. Make sure to follow your manufacturer’s specific guidelines to ensure your safety.

Plug into an appropriate socket. An electric fireplace is essentially a forced air heater, and it is subject to the restrictions of a standard household socket, wiring, and fuse box. Be sure not to draw more power from your socket than it can handle, or else you run the risk of starting a real fire.

Wood fireplace safety tips

Replaced by more efficient, cleaner, and safer options, wood fireplaces are less popular than they have been in the past. However, it’s difficult to deny the ambiance of a crackling fire with real burning wood.

Consider what type of fire you want so that you can select the right type of wood. If the fire is more for aesthetics, lighter wood or a synthetic log are good choices. If your fireplace is being used for heat, oak or ash may be a better fit, since they’re heavier and burn hotter.

Avoid using wood from recently cut trees. They contain high levels of moisture, which can lead to more smoke and deposits forming inside the chimney.
Synthetic logs can burn unevenly, so be careful when using them. Even though they’re not real wood, the flue should still be open for proper ventilation as they still produce carbon monoxide.
Wood should be seasoned and dry – appear darker, have cracks at the ends, and will sound hollow when hit against another piece of wood.
Have a metal container handy when removing and storing hot ashes. Store it outside at a safe distance from your home, since embers and ashes can stay hot for a while.
Start your fire with newspaper, dry kindling, or organic fire starters. Never use gasoline, kerosene or charcoal starter.
Use a stainless steel liner to help keep the fire and ashes contained.
Install heat-proof glass doors to keep live embers from escaping the fireplace.
Look for signs of creosote and soot buildup. Creosote is a dark substance that can accumulate if the wood isn’t burning completely. It’s a highly flammable fuel and can burn at about 2000°F. Soot, which can also be flammable, is softer than creosote. Both should be cleaned out of the chimney regularly.

With these fireplace tips, you can help ensure that a cozy fire will be a safe and welcome addition to a chilly winter season.

How to Prevent Car Theft

Posted on May 8, 2023April 24, 2023 by Shield Insurance Agency

Nationwide | April 20, 2023 | Car Theft | Auto Insurance | Start A Quote Today!

How common is car theft? According to estimates from the National Insurance Crime Bureau, there were more than 745,000 motor vehicle thefts in the first nine months of 2022 in the U.S. [1] [2] And when citizens are targeted in the most potentially dangerous of these crimes – carjacking – the attacker succeeds in roughly half of all attempts, according to the U.S. Department of Justice.

To find out how to prevent carjacking and car theft, read on.

1. Don’t leave valuables in your car

You don’t display your cash, financial statements, and jewelry in your home’s windows, do you? So why would you do the same in your car? Instead, hide any valuables, including purses, computer bags, and the ignition key. You’d be surprised how often people don’t.

According to the National Insurance Crime Bureau, between 2019 and 2022, more than 100,000 reported vehicle thefts were facilitated by keys, including situations where keys were left inside the vehicle. [3] One-fourth left a purse or wallet inside, and one-third have left bank statements. In addition, one-third say they’ve kept their vehicle running while unoccupied.

2. Park in a well-lit area to prevent car theft

Not everyone has a garage. But many have the option of parking on a well-lit street – another deterrent for crooks. Also, etch the vehicle identification number on windows to discourage thieves from stealing the vehicle and selling it to a chop shop.

3. Lock your vehicle doors to prevent car theft

The minute you step into an automobile, you’re vulnerable. So lock up right away, before starting the ignition or setting up your music, GPS, etc. (Buckling up is the second “to do.”)

4. Don’t leave your keys in the car to prevent car theft

“It’ll just be for a second, I’m only running into the store for a couple of things.”

Unfortunately, “a second” is all a thief will need if you leave the keys in the car for them. So always take your keys with you no matter where or how briefly you’ll be out of your vehicle. It sounds obvious, but this is one of the most important ways to prevent car theft.

5. Stay alert

Staying alert is the best example of how to prevent carjacking. When stopped or slowed down, you increase the opportunity for a carjacker. So at traffic lights, exercise caution. “When stopped in traffic, leave enough space to move forward,” says Brent O’Bryan, vice president of learning and development for AlliedBarton Security Services, a physical security firm. [4]

6. Know where you’re going

Just as you want to stay in well-lit areas while parking, you don’t want to “hide” in the darkness while driving. “Don’t head into remote or unfamiliar areas,” O’Bryan says. “If you feel like you’re being followed, don’t drive home. Don’t park next to a vehicle such as a van which could be hiding a suspect.” [4]

7. Install an anti-theft system

If someone tries to break into your car, you’ll want to make it apparent to anyone in earshot that this has occurred. Anti-theft systems emit loud alarms when they detect forced entry into your vehicle, alerting anyone nearby and potentially scaring the would-be thief from sticking around. You can also install a GPS tracking system that will show the location of your vehicle if the thief successfully makes off with it.

Having an anti-theft device in your vehicle may earn you a discount on your car insurance.

8. Stay cool during a crisis

Even if you take every precaution, you could still get involved in carjacking. If so, your and your passengers’ safety remains the top priority. Stay calm – if you panic, it’s more likely a criminal will too. “Never argue; give up your car,” O’Bryan says. “Get away from the area as quickly as possible. Note the suspect’s appearance, and immediately report it to the police.” [4]

Most commonly stolen cars

You might expect thieves to go for the glitziest, most expensive-looking cars they can find, but the trouble with those vehicles is that they stand out in a crowd. No car thief wants to be seen after they make their getaway, so the most commonly stolen cars are some of the most widely owned models. Ford F-series pickup trucks and Honda Civics have been US frequently targeted for this precise reason. In 2021, cars like Civics were also popular because they share parts with other Hondas, making them valuable for stripping and selling. [5]

More recently, in a 2022 HLDI study, 2019-2021 models of Dodge Chargers topped the charts for most stolen vehicles. [6]

What cars are targeted for catalytic converter theft?

Certain vehicles are also being singled out to steal their catalytic converters. Hybrid cars like the Toyota Prius use expensive metals to construct their catalytic converters, making them prime targets. [7] Thieves will steal the catalytic converter and sell it for the value of its metal.

Does insurance cover car theft?

So, you took all the precautions, but someone managed to make off with your car anyway. Are you covered? It depends on your policy. Comprehensive policies will typically cover theft. However, policies like liability insurance do not.

Learn more about what your car insurance will cover in the event of car theft.

Sources:

[1] https://www.nicb.org/news/news-releases/over-745000-stolen-vehicles-reported-so-far-2022, Accessed April 2023.

[2] https://www.cbsnews.com/news/auto-thefts-carjackings-major-u-s-cities-spike-new-report/, Accessed April 2023.

[3] https://www.prnewswire.com/news-releases/vehicles-stolen-with-keys-left-inside-on-the-rise-301731304.html, Accessed April 2023.

[4] Nationwide Interview with Brent O’Bryan, 2016.

[5] https://www.cars.com/articles/these-vehicles-are-most-vulnerable-to-theft-says-iihs-457296/, Accessed April 2023..

[6] https://www.moneygeek.com/insurance/auto/most-stolen-cars-in-america/, Accessed April 2023.

[7] khou.com/article/news/how-to-prevent-yourself-from-becoming-the-latest-victim-of-catalytic-converter-thefts/285-d978572e-c12a-4142-b331-c782201b082b, Accessed August 2021.

Disclaimer:
The information included is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state, or federal regulations. Nationwide Mutual Insurance Company, its affiliates and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided. Nationwide, Nationwide is on your side, and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2021 Nationwide and Shield Insurance Agency.

Performing acts of kindness, even anonymously, releases endorphins that make you feel good and increase your self-esteem. But what about the far-reaching impact of kindness on the recipients?

Award Winning Documentary About Kindness

Posted on May 5, 2023April 21, 2023 by Shield Insurance Agency

Award Winning Documentary About Kindness Features Ben Affleck, Lady Gaga, Garth Brooks And More

Sunnu Skyz | April 16, 2023 | Kindness | Shield Insurance Agency | Start a Quote Today!

Performing acts of kindness, even anonymously, releases endorphins that make you feel good and increase your self-esteem. But what about the far-reaching impact of kindness on the recipients?

In the new documentary Case For Kindness, award-winning filmmaker Steven Sawalich interviews celebrities and everyday people to find real life moments where kindness made a huge difference.

“This groundbreaking humanitarian documentary is a journey around the United States in an effort to better understand the importance of kindness and its impact on our culture and society. Through interviews with scientific experts, world and thought leaders, we delve deeper into the science behind kindness from its evolutionary beginnings to its modern day impact. Along the way we highlight inspiring acts of kindness changing communities and perceptions around the county.”

Case For Kindness has won dozens of awards as it continues to circulate film festivals around the world, including Best Picture, Best Documentary, and Best Director.

“I’ve traveled to 126 countries without knowing a lot of the culture and people and language in many, and the thing that bound us together was kindness,” Sawalich told Forbes in an interview. “I looked at the state of the world and at film, and there weren’t a lot of things about kindness. There’s a lot of things about happiness. And I’ve always looked at is as, Happiness is for the individual, and kindness is for the whole group.”

The film features interviews with Ben Affleck, Lady Gaga, Garth Brooks, Trisha Yearwood and more.

Referencing Lady Gaga’s organization The Born This Way Foundation and its Channel Kindness initiative, Sawalich said, “I like that they used to be about anti-bullying and now they are about kindness. I remember Mother Teresa said she would never attend an anti-war rally but would attend a peace rally, and that’s what Lady Gaga did to shift their organization into a positive space.”

In addition to kindness, Sawalich says community it a theme throughout the film.

“If you can help the life a person, you help their family, and if you help their family you help the community. We’re not meant to be isolated—that was an important theme throughout,” he said.

Watch the trailer for Case For Kindness below.

More blogs by Shield Insurance Agency

Did you know that every year, the probability of your house getting struck by lightning is 1 in 2001? Luckily, the probability of you getting struck by lightning is only 1 in 500,0002, but that begs the question – what happens if your home is that 1 in 200?

Protect your house with a lightning protection system

Posted on May 3, 2023April 21, 2023 by Shield Insurance Agency

Nationwide | March 14, 2022 | lightning | Home Insurance | Start A Quote Today!

What happens if lightning strikes your house

Did you know that every year, the probability of your house getting struck by lightning is 1 in 200¹? Luckily, the probability of you getting struck by lightning is only 1 in 500,000², but that begs the question – what happens if your home is that 1 in 200?

No one wants to think the worst can happen to them, but it’s important to be prepared in the instance lightning does strike because it can wreak havoc on your house, property, and family.

Lightning is extremely common across the U.S., and during severe storms, you can experience dozens of lightning strikes an hour. Lightning can strike just about anywhere, so how can you tell if lightning has struck your own home?

An average flash of lightning is around 300 million volts and 30,000 amps³ in strength. That can do some severe damage. If your home has been struck by lightning, you’ll likely experience the aftereffects almost immediately. These effects include:

Loud ‘boom’ that shakes the house
Power outage
Fire
A burning smell
Electrical buzzing
Charring
Holes in the roof/walls
Burnt electrical switches

If you notice any of these signs during a severe storm where lightning is present, it’s important to first call your emergency department to get the fire department and local authorities to your property immediately to ensure everyone is safe.

Once you’ve secured the safety of everyone in the house, you might be wondering what’s going to happen to your property – and you’re not alone. In 2021, there were over 71,000⁴ insurance claims filed in the U.S. for lightning losses. Luckily, most homeowners insurance policies cover lightning damages.

Nationwide offers comprehensive homeowners insurance coverage to give you peace of mind even during the most harrowing of circumstances.

However, there are steps you can take to protect your home against damaging lightning strikes.

What is a lightning protection system?

A lightning protection system is used to prevent property damage due to lightning. The system works by diverting the electric charge produced by the initial strike to the ground through the path of least resistance⁵.

An effective lightning protection system comprises four key compartments: copper air terminals, copper cables, copper-clad ground rods, and surge suppressors.

From the outside, the only visible aspect of the system is the lightning rods connected to the chimney or roof.

What are lightning rods?

Lightning rods are used to protect a house against damage from lightning strikes. It’s important to note that these rods don’t prevent lightning from striking, but work to divert the energy the lightning produces so it doesn’t damage your home or property.

Lightning rods must be connected to an accompanying lightning protection system to ensure maximum benefit from electrical surges and damage.

But lightning rods are just one key component of lightning protection.

Electrical surge protection

There are many steps you can take inside the home to protect against lightning damage. In many instances, lightning can cause electrical fires, so ensuring your outlets are protected is key to ensure your entire home is safe against detrimental lightning.

One way to do this is by installing a whole-home surge protector for appliances and electronics throughout the home in the case of voltage spikes. These surge protectors will limit the damaging effects of a power surge to ensure that your appliances don’t die or worse, catch fire.

Additional lightning protection tips

Thunderstorms are a common occurrence across the country, but that doesn’t mean you have to bear the brunt of weather damage.

Always make sure you take shelter during a storm if you aren’t already indoors. Being inside will keep you away from the most harmful aspects of a severe storm.

When you’re in the home, it’s important to avoid water, electronics, corded devices, concrete surface, windows, and doors⁶. These all provide easy access for lightning strikes to wreak havoc as electrical currents make their way to the ground.

Before your next storm, make sure to catch up on our thunderstorm tips so you can weather the storm with ease and peace of mind.

¹http://lightningsafety.com/nlsi_pls/probability.html, Accessed Sep 2021
²https://www.cdc.gov/disasters/lightning/victimdata.html, Accessed Sep 2021
³https://www.weather.gov/safety/lightning-power/, Accessed Sep 2021
⁴https://www.iii.org/fact-statistic/facts-statistics-lightning, Accessed Sep 2021
⁵http://www.lightningsystemsofva.com/html/what.htm, Accessed Sep 2021
⁶https://www.cdc.gov/disasters/lightning/safetytips.html, Accessed Sep 2021

Disclaimer:
The information included is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state, or federal regulations. Nationwide Mutual Insurance Company, its affiliates, and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided. Nationwide, Nationwide is on your side, and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2022Nationwide and Shield Insurance Agency

More great blogs by Shield Insurance Agency

Fundamentals of Estate Planning

Posted on April 28, 2023April 17, 2023 by Shield Insurance Agency

Nationwide Blog | October 07, 2022 | Estate Planning | Life Insurance | Start a quote today!

Key Takeaways for Estate Planning

Estate planning can be difficult to talk about—a 2021 Gallup poll showed that 64% of American adults working with a financial advisor have never discussed their estate plans with that advisor.
Distribution of assets plan can help ease your anxiety and broach the problematic subject of legacy planning with a trusted financial professional.
Familiarizing yourself with the 2 main types of trusts and how they are utilized can prepare you for conversations with your financial professional.

If you’ve put off estate planning due to the difficult nature of the topic, you are not alone. According to a 2021 Gallup poll, 64% of American adults working with a financial advisor have never discussed their estate plans with that advisor.

A common roadblock to having these conversations is the idea that estate planning is complex and possibly uncomfortable to talk about. It’s easy to think of estate planning as just wills, trusts, and advanced directives, but it’s so much more. There are other tactics and techniques that can make a big difference in your legacy planning objectives, so it’s worth the effort to start the conversation with a financial professional as soon as you can.

The importance of estate planning

Estate planning is one of the most important topics to cover with a financial professional. The process of creating a plan for the distribution of assets at death can encompass the following:

Limiting income and estate tax liabilities
Determining who receives the assets — and when and how they’re received
Facilitating timely payment of estate obligations and taxes
Limiting costs of administration

Estate planning should be considered if you own property; it’s not just for the wealthy or those with complex situations. There are consequences for failing to plan—for example, if you pass away without a will, the State will use intestacy laws to determine the distribution of property. Unfortunately, this might not align with your intent. A proper plan can provide you with a level of certainty and help safeguard your assets for the benefit of your heirs.

Beginning the process of estate planning

When implementing strategies for saving, you may want to consider these 3 steps with a financial professional to develop an effective plan for yourself:

Identify estate transfer needs and goals – In this step, you should know where you are and want to go. The most significant considerations here are identifying beneficiaries, clearly understanding tax obligations, looking at estate assets, and knowing where to find liquidity in the estate. It’s also important in this step to consider future income, expenses, debts, and needs.
Develop strategies to reduce costs – Taxes are the largest potential expense your estate may have. These can include the federal gift tax, federal estate tax, generation-skipping transfer tax, state death and inheritance taxes, federal income taxes, and estate administration expenses. There are exclusions, deductions, and transfers that you should be aware of to minimize this burden. A financial professional can help you navigate these strategies.
Pay for remaining expenses – This is where having the proper liquidity to pay estate expenses helps ensure your beneficiaries receive what you intend. Liquidity is the estate’s ability to pay taxes and other costs that arise after death (usually in the form of cash or cash alternatives). If your portfolio consists largely of real estate or business interests, the estate may be forced to sell a portion to pay for expenses when they are due. Knowing this, estate liquidity will likely be a primary objective for you and your financial professional. Having the right tools to meet the liquidity need is crucial. Annuities and life insurance with the right strategy behind them can accomplish this goal.

Using a trust as part of your estate planning strategy

Familiarizing yourself with the basic types of trusts and how they are utilized can prepare you for conversations with your financial professional about trust strategies and options. Here are some things you should know about trusts and their role in estate planning:

There are two main types of trusts – revocable and irrevocable. Trusts can be used in many ways in estate planning, including helping your estate avoid probate, reducing estate taxes, and protecting yourself and your beneficiaries from creditors.
Trusts have drawbacks – depending on the type of trust, you may not receive any tax benefits or be able to easily make needed changes.
A credit shelter trust is a common type of irrevocable trust used in estate planning – this type of trust can help married couples reduce or avoid estate taxes.
Many assets can be used to fund a trust – nearly any type of asset can be used to fund a trust, including stocks, bonds, cash, mutual funds, real estate property, life insurance, and annuities. Life insurance and annuities have become common ways to fund a trust in estate planning because they can offer your beneficiaries an immediate source of liquidity to provide potential financial security.

Estate planning can be complex, so consider working with a financial professional who can help you understand your options.

Helpful tools

Nationwide’s trust guide can help make a key component of estate planning easier to understand and provide proper context on the choices you’ll want to make. I invite you to use this today to help kick off an estate planning conversation with a financial professional.

Disclaimer:

Federal income tax laws are complex and subject to change. The information is based on current interpretations of the law and is not guaranteed. Nationwide and its representatives do not give legal or tax advice. Please consult an attorney or tax advisor for answers to legal questions.

How to Start An Online Store

Posted on April 26, 2023April 14, 2023 by Shield Insurance Agency

Nationwide Blogs | November 01, 2020 | Online Store | Business Insurance | Start A Quote Today!

Starting a business is easier than ever thanks to greater online opportunities and the burgeoning “gig economy.” For many people, opening an online store has been a major success. Some 25 million people sell products on eBay’s marketplace alone.^[1]

But the process is more complicated than putting your goods on a website and waiting for someone to buy them. Before you jump in, here are some e-commerce tips and things you need to know about how to sell your products online.

Learn the marketplace for an Online Store

Selling a product online requires some advanced knowledge about how online sales and e-commerce work to prevent missteps. Regardless of what platform you’re using — eBay, Amazon, Craigslist, Etsy, or something else — you should become a customer before you attempt to sell your own products. This will familiarize you with the sales process and what to expect from it.

It can also help you because you’ll receive feedback online, which is important when opening a store. New sellers can sometimes have a harder time selling products because there’s no feedback letting buyers know what it’s like to deal with your shop. If you can use the same account to become a seller, try to get at least 20 feedback ratings as a buyer before you start to sell online.

Do market research

Just as with a brick-and-mortar store, you’ll be responsible for attracting customers and standing out from your competitors. The foundation of a successful online store is rooted in research to get an idea of what to sell online.

This is an important part of e-commerce and being an online seller. To evaluate what’s already selling, look at the list of top-selling products and get an idea of what’s happening in the marketplace. What are the high-demand, trending products consumers currently want? Do you have special knowledge about a particular industry or type of product? You may be able to leverage this background to tap into a niche market, which can help you expand your business.

Decide what products to sell at the Online Store

Before opening your online store, you’ll need to decide what kind of product you’ll be selling. From merchandise lying around the house to original products, there is a wide variety of options to consider. Whatever you decide, it’s important to choose something that you will be passionate and excited about as you will be working with these products day in and day out.

Keep a business mindset

For your online business to be successful, it has to be taken seriously as a business. That means creating a business plan, setting goals, tracking what works and what doesn’t, and using market research tools to stay on top of trends and selling prices. If this process of selling is more than just a hobby, you should treat it as such, and that means keeping your customers happy.

Providing great customer service is an important component of building and maintaining your customer base, and it can turn a negative experience into a positive one for buyers who may leave reviews about your company online. Try to respond to emails within 24 hours. Remain positive and calm when dealing with a difficult situation, and ask buyers what type of resolution they’d value from you. Let them know that you’re listening, you understand their question or issue, and you’d like to help find a solution for them. This can go a long way in favorably impacting their impression of your company.

A few negative reviews can hurt your selling rating, which is something to guard carefully. If you have a 95% seller rating but someone else has a 98% rating, regardless if their price is higher, people may pay the extra money because that higher rating appears more trustworthy and the higher rating makes buyers feel secure.

Protect your assets with insurance

As your business grows, you may want to expand your inventory to sell from a converted garage or even a rental storage unit. Many high-dollar sellers choose to keep inventory in another location after they’ve outgrown their closet, spare bedroom, or other storage space.

Make sure your inventory and any business equipment are protected by insurance. Check with your Nationwide representative to see what kind of coverage is best for your small but growing online business.

^[1] http://expandedramblings.com/index.php/ebay-stats/

What is a Business Plan and Why is it Important?

Posted on April 24, 2023April 14, 2023 by Shield Insurance Agency

Nationwide Blog | January 06, 2022 | Business Plan | Business Insurance | Start a quote today!

What is a business plan?

Whether you’re starting a small business or exploring ways to expand an existing one, a business plan is an important tool to help guide your decisions. Think of it as a roadmap to success, providing greater clarity on all aspects of your business, from marketing and finance to operations and product/service details.

While some owners may be tempted to jump directly into startup mode, writing a business plan is a crucial first step for budding entrepreneurs to check the viability of a business before investing too much time or money. The purpose of a business plan is to help articulate a strategy for starting your business. It also provides insight into steps to be taken, resources required for achieving your business goals, and a timeline of anticipated results.

In fact, businesses that plan grow 30% faster than those that don’t.¹

For existing small businesses, a business plan should be updated annually as a way to guide growth and navigate the expansion into new markets.

Studies show that nearly 71% of the fastest-growing businesses have business plans, indicating that even existing businesses can benefit from updating their plans.²

Your plan should include explicit objectives for hiring new employees, market analysis, financial projections, and potential investors. The objectives should indicate how they’ll help your business prosper and grow.

Building an asset management business plan

Committing resources to capital improvements and new assets such as computers, software or cars/trucks is never an easy decision for budget-conscious small business owners. But a business plan can bring clarity to the process of whether to buy or lease and help determine the optimal amount allocated to those assets. A good business plan can also help you decide if it’s feasible to take on additional office, retail, or workspace.

Creating a marketing strategy

Marketing and market potential are important aspects of a plan for aspiring small businesses.

Getting your business in front of customers on a consistent basis is one of the keys to ensuring your business not only stays afloat but also thrives.

Marketing strategies can be simple, but before you decide on how you will get the word out, getting clear on your target audience and why your business solves their problem can make sticking to your marketing plan easier.

Knowing your unique market positioning can help you determine your messaging. Your marketing strategy should include who your target audience is, the platforms or methods you will connect with them on, and a measurement framework to determine if your efforts are working.

Take entrepreneur Scott Sultzer, who opened Sandwich Joint restaurant in downtown Los Angeles in 2009. “I included the potential marketing demographic of all those who lived in a certain area of the city,” he said of his marketing strategy. “My goal was to capture a certain percentage of all those people who lived and worked nearby.”⁴

Created primarily as a marketing tool, Sulzer’s 10-page plan included such topics as target market breakdown, marketing strategy, and market penetration. “My business plan was mostly about market projections,” he said. “How are we going to get those people that lead to an increase in our daily sales? And how are we going to reach them to let them know we’re here?”⁴

Depending on your business, it’s important to have both brick-and-mortar marketing strategies as well as a plan for marketing your business online.

Seeking investment for your business plan

In addition to providing a roadmap for progress and a marketing plan, your business plan could also be important in securing funding.

Whether you’re seeking a credit line from a bank or an influx of capital from investors, a business plan that answers questions about profitability and revenue generation can make the difference between whether someone decides to invest – or how much they might choose to invest.

In fact, a study showed that businesses with a plan were more likely to receive formal financial support, such as funding, than businesses without one.³

Hiring the Right talent

A business plan may also be needed to retain other professional services as well, such as attorneys, landlords, consultants, or accountants. Sulzer used his business plan to secure a lease.

“I had to have a viable document that they could trust,” said Sulzer, who leased from one of the largest landowners in downtown Los Angeles.⁴

“With a corporate landlord, they wouldn’t deal with me unless I had a business plan. I had to submit all my information and a plan that presented what I wanted to do, with financial breakdowns and percentages, demographics, and how I was going to get customers.”⁴

For a small business to succeed, attracting talented workers and partners is of vital importance. A part of a business plan for hiring employees is to help bring in the right talent, from the executive level to skilled staff, by showing them the direction and growth potential of the business. It can also help secure vendor accounts, especially with exclusive suppliers.

Setting business plan objectives for management

Finally, a business plan can be important in providing structure and management objectives to a small business. It can become a reference tool to keep management on track with sales targets and operational milestones. When used properly and consulted regularly, it can help you measure and manage what you’re working so hard to create.

Ready to take the next step? Learn how to write a business plan.

Don’t forget to consider insurance coverage in your business plan. When the unexpected happens, you want to make sure your small business is covered. Customized insurance solutions are crucial to protecting and keeping your operation going.

Find out how small business insurance from Nationwide can help you build and protect your business whether you are just starting up or already established.

¹https://www.effectuation.org/wp-content/uploads/2017/06/The-Multiple-Effects-of-Business-Planning-onNew-Venture-Performance-1.pdf, Accessed October 2021.
²https://onlinelibrary.wiley.com/doi/abs/10.1111/0447-2778.00006, Accessed October 2021.
³https://www.tandfonline.com/doi/abs/10.1080/13504851.2014.967377, Accessed October 2021.
⁴Nationwide Interview with Scott Sultzer, 2016.

More interesting articles by Shield Insurance Agency

When to Replace Your Roof

Posted on April 19, 2023April 12, 2023 by Shield Insurance Agency

Nationwide | September 09, 2022 | Roof | Home Insurance | Start a quote today!

Homeownership comes with lots of responsibilities, and one of the most expensive is replacing your roof at the end of its life expectancy. But before choosing to replace your roof, there are some things to consider—and you should always consult a professional before making any decisions.

How often does a roof need to be replaced?

How often a roof will need to be replaced depends on a number of factors, such as the quality of the roof’s installation, the quality of materials used, and the type of roof. Generally speaking, this is how long a roof made of each material can last: [1]

Composition shingles: 12-20 years
Asphalt shingles: 15-30 years
Wood shingles: 30-40 years
Rubber roofs: 30-50 years
Metal roofs: 40-70 years
Clay tile roofs: 50-100 years
Slate tile roof: 75-200 years

Harsh winters and severe humidity can cause these materials to wear down faster. Looking at your roof after high winds and intense storms can help you keep your roof in top shape. Whether conducted by yourself or led by a roofing contractor, a twice-a-year inspection of your roof might also help you spot any damage before it becomes too great. [2]

Signs that a roof needs to be replaced

While there are a few things that can indicate your roof is no longer in its best shape, any one sign on its own doesn’t necessarily mean your roof needs to be replaced. If you are worried about any visible signs of damage to your roof, a professional can help you decide whether a total replacement is necessary.

Loose, cracked, damaged, or missing shingles

Missing, loose, or damaged shingles can be detrimental to the integrity of your roof and can lead to problems such as water damage and lack of insulation. Finding exposed spots on your roof where shingles are missing or damaged can be difficult. Professionals are usually much faster at spotting missing shingles than homeowners. But if you’d like to take a look for yourself, you can safely do so with both feet on the ground using binoculars or with the help of a drone. You’ll want to look at each shingle to ensure that they’re sitting flat. Any shingles that are missing should catch your eye fairly quickly. If enough shingles are damaged or nails are exposed, patching your roof probably won’t suffice; you will need a total replacement. [2][3][4]

Signs of water damage, mold, or roof rot

Boards of wood that span the trusses of your roof are known as roof decking or sheathing. Wet wood decking leads to wood rot, which can cause issues in additional areas of your home. Your roof probably has wood rot if the roof deck has dark spots, discoloration, crumbles, or cracks; feels spongy, or has a damp, musty smell. A roofer can also detect wood rot by stepping on shingles above the rot and feeling them give more than usual. If you suspect you may have wood rot, seek the help of a professional home inspector. Initial signs of water damage to your roof may go unnoticed until the damage becomes substantial. These are some signs of water damage to look out for: [5]

Fungal and mold growth, which can reduce air quality
Bulging or bowing, which will be visible on the roof from the outside; the shingles above this part of the roof might not work properly, and the roof decking can eventually fall in
Damage to wood in your home, including structural wood
Damaged insulation, which can increase the cost of heating and cooling your home
Damage to other home systems, such as your electrical system, particularly if wood rot goes unresolved

Damaged flashing

Flashing helps protect your roof from leaks. It’s made of sheet metal, galvanized steel, or aluminum, and you can typically find it around plumbing vents, skylights, and chimneys. When working properly, flashing helps divert rainwater to the ground. However, when flashing fails, there are several noticeable signs: [6]

Cracks, dents, and bends: This makes your flashing more prone to rusting
Rust: If your flashing has rust, it will need to be cleaned, sealed, or replaced
Missing parts: Repairs should be made promptly if any of your flashings are missing
Holes: Sometimes small animals can create tiny holes in your roof that can result in leaks and should be sealed as soon as they are noticed
Leaks inside your house: You may find indicators of leaks around your fireplace, windows, skylights, and attic
Mold or stains on fascia boards: If your flashing wasn’t installed correctly, mold and water stains might develop on fascia boards
Damaged shingles or siding: This will look like bending or darkening on your shingles or siding near the flashing

A professional who is inspecting a roof for leaks or failed flashing will look out for loose nails, holes, and broken seals at flashing edges.

The current roof was installed 20+ years ago

If your roof was installed 20 or more years ago, consult a professional home inspector or roofer. Roofs typically last about 20 years, and your roof may be reaching the end of its life span. [1]

Additional consideration: Are you planning on selling the house?

A new roof can be expensive, but one benefit is that it can add value to your home. While you may not necessarily recoup the cost of a roof replacement in the sale of your home, there are still several benefits to having a new roof installed. You may be more likely to get the full asking price for your home, spend less time with your home on the market, or have shorter negotiations. [7]

If you suspect your roof is damaged or you’re nearing the end of your roof’s life expectancy, consult a trusted professional before making any decision on repairs. Your roof is an essential part of your home, protecting the structure from leaks and damages. Furthermore, Nationwide and Shield Insurance is here with personal insurance plans to protect your home in case of disaster.

[1] “How Long Do Roofs Last? 5 Roof Types and Their Lifespans,” fixr.com/resources/how-long-do-roofs-last (accessed June 2022).

[2] “How Often Should You Replace Your Roof?” roofadvisor.com/how-often-should-you-replace-your-roof (accessed June 2022).

[3] “Should I Replace My Roof? Here Are 21 Things to Consider” familyhandyman.com/list/should-i-replace-my-roof-here-are-21-things-to-considerfamilyhandyman.com/list/should-i-replace-my-roof-here-are-21-things-to-consider (accessed June 2022).

[4] “How Can I Tell If I Have Missing Roof Shingles?” hopewell-roofing.com/can-tell-missing-roof-shingles (accessed June 2022).

[5] “What is Wood Rot & When to Replace Roof Sheathing,” io.com/na/pro/building-professional-tools/roofing-101/rotted-roof-deck-how-to-replace-roof-sheathing (accessed June 2022).

[6] “Roof Flashing Failure: Why It Occurs and Ways to Address It,” negutters.com/blog/roofing/roof-flashing-failure-why-it-occurs-and-ways-to-address-it (accessed June 2022).

[7] “How Much Value Does a New Roof Add?” zillow.com/sellers-guide/should-i-replace-my-roof-before-selling (accessed June 2022).

Disclaimer: The information included here is designed for informational purposes only. It is not legal, tax, financial, or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state or federal regulations. Nationwide Mutual Insurance Company, its affiliates and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided. Nationwide and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2022 Nationwide and Shield Insurance Agency

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