insurance policies
Does homeowners insurance cover terms?
Portions of this article were drafted using an in-house application natural language generation platform. The article was reviewed, fact-checked and edited by us editorial staff.
Key takeaways
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Homeowners insurance typically does not cover termite damage, but there are some rare exceptions.
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Homeowners are expected to take proactive measures to prevent termite infestations, and neglect is not covered by insurance.
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Termite bonds and warranties offer additional protection against termite damage, but they vary in coverage and limitations.
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Early detection and prevention are crucial in avoiding significant termite damage to a home.
Even though they’re tiny, termites can cause some outsized damage. Each year, Americans spend an estimated $5 billion on termite control and damage. So does home insurance cover termite damage? Unfortunately, not in most cases — but there might be some notable exceptions. Bankrate’s insurance editorial team, which includes licensed insurance agents, is here to explain the particulars of terms and insurance and to offer some tips on how to keep them at bay.
Does homeowners insurance cover termite damage?
Termite damage is typically not covered by homeowners insurance. Bug, pest and rodent problems are usually considered preventable by your home insurance provider, and homeowners are generally expected to take proactive measures to avoid infestations. Some policies may explicitly mention that insect damage is not covered, while others may not mention insects at all. If insect damage is not mentioned in your policy, then it’s very unlikely that any kind of termite-related claim will be covered by your policy. You may want to read your home insurance policy to see if termites or insect damage are mentioned.
Home insurance companies will most likely not cover termite damage that results from neglect. If the homeowner fails to address potential entry points, the infestation would not usually be covered by
What Life Insurance Offers the Living
What You Need to Know
- Typical marketing strategies miss many young prospects.
- They may not reach experienced traditional major life events.
- They could be on TikTok. Really.
As insurance agents, we know that when our customers hear the phrase “life insurance,” they usually think about one thing: death.
For the average American, the purchase of a life insurance policy is viewed solely as a protective measure, a means of providing financial security for the loved ones we leave behind.
What many don’t understand is that life insurance is also a strategic investment that offers financial advantages to policyholders while they’re alive.
Many younger Americans, namely millennials and Gen Z, stand to significantly benefit from obtaining a life insurance policy if purchased sooner rather than later.
While targeting this demographic has historically presented challenges for our industry, advances in insurance technologies create new opportunities to break through to these younger populations this year.
But what messages should we be sharing with this untapped demographic?
Obstacles to a Younger, Viable Customer Base
There are several reasons why insurers have struggled to sell life insurance policies to younger people over the years.
For starters, the way we have traditionally connected with potential life insurance policyholders tends to exclude the vast majority of younger Americans.
For example, by primarily focusing on mortgage holders, we fail to promote our services to the millions of younger Americans who don’t yet — or may choose to never — own a home.
Second, insurance companies have never developed a practical communication strategy for engaging young people.
While younger Americans may express interest in acquiring a life insurance policy, our primary method of reaching prospective clients has been through referrals from friends and family.
If, for example, millennials aren’t discussing their preferred life insurance company over dinner and drinks
Montana insurance broker lost license following investigation
A Forsyth insurance broker has permanently lost her license after complaints surfaced that she was accepting premium payments but not purchasing insurance policies.
Montana Insurance Commissioners Troy Downing announced Wednesday that he had secured a court order on July 12, 2023, permanently barring Kileen Hagadone and his business, Rosebud County Insurance, Inc. from conducting insurance-related business in Montana.
Hagadone’s license was suspended in April by Downing.
Downing’s office has alleged that Hagadone forged signatures and misappropriated hundreds of thousands of dollars from clients across Rosebud County, including Chief Dull Knife Community College in Lame Deer.
The college, one of the largest victims, paid around $200,000 in premiums for two years but never received any coverage, Rosebud County Sheriff Allen Fulton told MTN News in April. The sheriff’s office is investigating the case for possible criminal violations.
Downing also noted in a news release that attempts to pay premiums through bank accounts controlled by Hagadone and Rosebudy County Insurance were rejected for non-sufficient funds.
“By allegedly accepting premium payments and not purchasing the insurance policies, Hagadone placed his customers at a substantial risk of losing their coverage. Our agency also worked with the involved insurance companies to ensure customers did not see a lapse in coverage and were not double-charged for their policies,” Downing said in a statement. “Our agency’s first priority is protecting consumers. By revoking Hagadone’s license, we prevent this alleged fraud from claiming more victims.”
Downing reminded consumers to always contact insurance companies directly to ensure policies were properly placed by an agent.
If you have questions regarding coverage or to report suspected fraud, contact the Commissioner of Securities and Insurance at 406-444-2040 or go to CSIMT. gov.
FSRA enforces penalties on former insurance agents
According to the FSRA, the three misused personal information collected from students to apply for insurance policies – often without the students‘ knowledge. The three also claimed to the students that purchasing life insurance was a mandatory condition for employment. It was noted that the agents made no effort to determine if the insurance policies were suited to the needs of the students, who had no stable income and were living in Canada temporarily through study permits.
“What the three former insurance agents did to these students is egregious and completely unacceptable and our enforcement action should send a clear message that this kind of activity will not be tolerated,” said FSRA director of litigation & enforcement, legal enforcement Elissa Sinha. ” The FSRA is committed to protecting consumers purchasing insurance and ensuring that regulated individuals and companies uphold the required standard of conduct.”
A release said that the FSRA issued this order following a settlement with the three, who are no longer licensed under the Insurance Act. Each of the agents has been imposed administrative penalties between $15,000 and $55,000.
In October, the FSRA proposed to impose a compliance order on the life insurance managing general agent Greatway Financial, for training its agents to sell universal life insurance policies as of they were “insured retirement plans.”
According to the regulator, IRPs can be successful through continued and retained contributions, but are only suitable for higher net-worth individuals who can make those regular contributions. FSRA went on to accuse Great way of misrepresenting universal life policies and IRP strategies as “savings” instead of insurance.