Most people have some form of insurance; however, many people do not have a clear understanding of coverage or policy options: vital verses convienence. Do you?

The Barnwell Insurance Agency specializes in helping you determine the proper amount of coverage, so contact us today!

This page only highlights a few of the available coverage and products. See our Products and Services page for more information or contact us directly!

What is Insurance?

The concept of Insurance is "sharing" risk with others. If 10,000 people deposit $100 into a bank account in one month, they will have accumulated 1 million dollars. If one of those people has a fire that costs them $100,000, the "pot" has enough money to help that person replace their belongings.

Since ancient times, communities have been pooling money together to help individuals who suffer a loss. The Romans used "burial clubs" as a form of Life Insurance which provided burial expenses and payments to the survivors.

 If you cannot afford a large loss, but you can set aside some money each month to deposit into the pot, then you are a candidate for insurance!

So is it wise to spend money on insurance even though a claim may never be made?

Is keeping a spare tire in your car a waste if the tire is never needed? Sometimes, the sense of security may make the expense worthwhile, even if the tire is never needed.

Car Insurance 101

BIPD Bodily Injury Property Damage (Liability): This is the only coverage required in the State of Colorado. It pays for injuries and other damages that you might cause while driving your vehicle. This coverage is considered a "vital" coverage because it protects your assests from lawsuits after an accident that you are legally liable for. The more assets and income you have, the higher your limits should be.

Uninsured Motorist: This covers injuries to your and your passengers in case you are hit by someone who has no insurance or not enough insurance, including a hit and run.

Uninsured Motorist Property Damage: If you want your vehicle to be covered in case it is hit by an uninsured driver, this is the coverage you must carry. UM alone will not cover damage to your vehicle. UM is frequently sold alone, so make sure you have the right coverage!

Medical Payments: This coverage pays many medical bills and funeral expenses associated with a car accident for you and your passengers. It also extends to you or your family if they are passengers in another person's car or when struck by a vehicle when you are on foot.

Comprehensive and Collision: Comprehensive and collison protect your vehicle by paying for losses resulting from a collision with another vehicle or object/animal, fire, theft, vandalism, falling objects, riots, storms, earthquakes, floods, or other natural occurances. Having these coverages together deems your vehicle to have "Full Coverage".

Collision Plus/Loss of Use: This coverage is designed to help you with expenses related to the loss of use of your vehicle while it is being repaired or replaced due to a covered Comprehensive or Collision claim such as rental car costs.

Towing/Roadside Assistance: When you and your family are stranded because your car won't start, or because you have a flat tire or because you locked your keys in the car or ran out of gas and you need help, this coverage will rescue you. If you choose this coverage, you can reach us 24 hours per day, 365 days per year with just one toll-free phone call. Best of all, there are no deductibles or out-of-pocket cost associated with the use of this coverage.

Glass Replacement Coverage: This coverage pays to repair or replace any piece of glass including your windshield in your vehicle regardless of the cause.

Home Insurance 101

Home Insurance is not required by the State of Colorado, although you might be required to have it if you have an outstanding mortgage on your home.  Don't wait until after you have a claim to find out that something that is important to you is not properly covered.

Building/Dwelling Coverage: This covers the structure of your home from the drywall out, including your roof and walls.  It should be the amount needed to rebuild your home in the case of a total loss. Most people are surprised that  the resale value and the reconstruction cost of your home can be very different numbers! This is because while market value takes into consideration things like area, foundation, lot size and neighborhood comparables, reconstruction cost is only interested in the rebuilding of your home from the ground up.

Other/Separate Structures: This is usually ten percent of your dwelling amount and it covers structures that are not part of your foundation such as a deck, shed, fence or detached garage.

Contents/Personal Property: This is usually fifty percent of your dwelling and it covers your home from the drywall in, such as interior doors, bathroom fixtures, kitchen cabinets and flooring. It also covers your personal property such as your furniture, clothing, household items, sporting equipment and decoration. If you own anything that is worth $1,000 or more by itself such as jewelry, art or collectibles, make sure your insurance company knows about it. It may require a special addition to your homeowner's in order to be properly covered.

Loss of Use: The coverage would pay for living expenses such as meals, replacement rent or hotel/motel costs as a result of a covered claim.

Personal Liability: This protects your home and other assets such as income, savings and investments from personal lawsuits. For example, your dog bites someone, someone slips and falls on your icy sidewalk or any other personal litigation against you.

Optional Coverage: Homeowner's policies have several optional coverages such as identity theft, sewer and drain coverage, coverage for vacant land, etc.. Your homeowner's policy can also offer you coverage for a home-based business such as licensed childcare.

Renters Insurance 101

Renters Insurance similar to a homeowner's policy that is much less expensive and does not cover the exterior of the home you are renting. It covers your personal belongings, loss of use and liability. Most often, you can get both car insurance and renters insurance for nearly the same price you are paying for car insurance alone.

Life Insurance 101

Did you know that you don't have to die to get money from some types of Life insurance policies? There are a lot of different kinds of Life Insurance Here are just two of the most common ones:

Term Life Insurance: This type of policy is only valid for a specific time period which you can choose. It might be 5 years, 10 years, 20 years or 30 years. You must renew your policy every time the term is up using your current age and health status, which will cause your premiums to increase each time, if you are even qualified for a new policy when your current term is up. This policy does not pay out unless you die during the term. If you don't die, you do not get any of your money back. So why would anyone want a policy like this? Here is a couple of examples of people who would benefit from this type of policy:

1. A father who's daughter is in college for the next four years wants to ensure that her tuition will be paid even if he dies. So he takes out a 5-year Term Life Insurance policy equal to the amount of her tuition. When the term is up, he will no longer need the insurance because her tution will be paid in full.

2. A newly married couple purchases the home of their dreams. Neither spouse can afford the mortgage payments alone, so they each take out a 30 year term policy equal to the balance of the home loan. When the 30 years is up, the home will be paid in full and they will no longer need the coverage.

Whole Life Insurance: This type of policy is permanent and does not expire as long as the premiums are paid. This policy can also grow interest on a portion of your premium payments. The interest rates are usually higher than most banks. The accumulated cash value can be withdrawn and used, even if the insured has not died. Parents often obtain these types of policies for their children in order to save money for their future and protect their insurability. The premiums on this type of policy is higher, much like mortgage payments can be higher than rent. This policy is best used for the person with a dual need: life insurance and a savings option.

What factors influence how much insurance will cost?

You. Depending on the type of insurance you are seeking, you and your family members are the main contributing factor to how much insurance will cost. Your age, gender, marital status, children, driving record and history, credit rating,  where you work,  and your educational background, your health, your height and weight are all determining factors for the cost of your insurance.

Where You Live. Living in an urban area typically costs more because of increased chance of theft and accidents. Claims are statistically higher in an around major cities. The age of your home, condition and square footage are all contributing factors in homeowner's insurance.

Your Vehicle. The type of vehicle you drive greatly affects the rates you will pay. Sports cars, Luxury Cars and SUVs are prone to higher rates when it comes to car insurance, and for business insurance policies, they kind of car you use for your business will affect the premium.

 Whether you are an unmarried male under 25 driving a sports car and living in Downtown Denver, a married middle-aged female driving a minivan and living in rural Colorado, or someone inbetween, Barnwell Insurance Agency can offer you competetive rates, so contact us today!

Surprising Facts about Homeowner's Insurance:

1. Homeowner's Insurance does not cover you in case of a flood. You would need a separate flood insurance policy.

2. Sewer/Drain backup is one of the most common types of claims, yet one of the least common coverages carried by homeowners. Don't leave yourself vulnerable!

3. 59% of Americans are underinsured when it comes to their home. (iii.org)

4.If you own a Townhome or Condominium, you will need to carry two policies: one with the association for the exterior and one personal policy covering your belongings on the inside of your home.

5. Do you have a home inventory? Most people don't, yet they can't remember everything they have in their home. In the event of a claim, this information would prove essential for claiming everything you lost. You can make a home inventory with photographs, video or a handwritten list. More importantly, keep your home inventory in a separate location such as a lock-box or a friend's home to prevent losing it along with the rest of your belongings!

Don't become a victim of insurance fraud!

Insurance fraud occurs when non-licensed entities or individuals sell illegal or bogus insurance. With the cost of insurance on the rise, consumers are looking for affordable solutions for their families and their employees that address these costs. Unfortunately, this is a large part of the reason that many consumers purchase unauthorized policies - they are often priced much lower than legitimate policies. However, in most cases, the reason for this is that these policies do not provide sufficient benefits, if any, when compared with legitimate insurance policies. Fraudulent insurance plans are becoming more prevalent in every line of insurance, and have cost consumers billions in unpaid claims.

Fraud occurs when insurance agents deceive the insurance companies and consumers by issuing a false certificate of insurance or proof of automobile insurance card. This alleged insurance may be priced much lower than a legitimate policies and the purchase may seem more affordable to the consumers. These types of auto and commercial policies are becoming more prevalent in this line of insurance and are resulting in unpaid claims.If you don't receive a permanent insurance card and policy in the mail, this may be a red flag for a fradulent policy.

Another common form of fraud occurs when consumers deceive an insurance company or its agents by making false claims for financial gain. These types of fraud include Auto, Home, Health and Workers Compensation Insurance. When insurance companies pay out fraud claims they end up passing the cost to policyholders by increasing premiums. Insurance fraud is not simply a problem for insurance companies, it's a problem for all of us - everybody loses and everybody pays. (dora.state.co.us)

The Barnwell Agency offers many more products than are listed here. Please contact us for details!