Why Do Mortgage Lenders Often Require Home Insurance?

Homes can be very expensive, and most families simply don’t have enough cash to buy a house outright. Fortunately, you can take out a mortgage from a bank or another lender. Then, you can buy a property and make monthly mortgage payments. One thing some folks are surprised to learn with mortgages is that the lender(s) will often require that the home be covered by home insurance. We’ll dig into why, but if you’re looking for home insurance and an agency that serves Cloquet, MN, get in touch with Brittany Olson Insurance Agency LLC.

Why Home Insurance is a Must

Risk is probably the biggest consideration for most lenders. This is why folks with high credit scores often enjoy lower interest rates. The lenders know that these individuals are likely to repay all their loans. Unfortunately, someone with bad credit may be less likely to pay back a loan, so the lender will want to charge higher interest rates because the risks are higher.

Another way to lower risks is to use collateral. This is how mortgages typically work. Banks will have a lot of money on the line, but because the property being bought can be used as collateral, they can often charge lower interest rates even if someone’s credit score is not ideal. Should the home buyer fail to make their mortgage payments, the bank will be able to take control of the property and can then sell it to raise the funds needed to cover the loan, or at least a large part of it.

Consult With Us

From the lender’s point of view, the more valuable the property, the better. However, if a home is destroyed, say in a fire, the property will be worth much less. For the lender, this leads to increased risks. For this reason, lenders often require home insurance because that insurance provides them with protection too. If you need home insurance, contact Brittany Olson Insurance Agency LLC. We serve Cloquet, MN and other communities.

Can I get non-owner insurance in Minnesota, and how does it work?

Auto insurance aims to protect us from the financial losses associated with an auto accident and injury. So, having adequate coverage is of the utmost importance.  Our agents at Brittany Olson Insurance Agency LLC in Cloquet, MN have the experience and industry knowledge to help you find the best coverage to fit your unique situation.   

In Minnesota, the state requires drivers to have a minimum of the following coverages:

  • Liability (Bodily Injury) – $30,000 per person or $60,000 per accident to cover the driver and/or passengers in the other vehicle if you are found liable for the accident.
  • Liability (Property Damage) – $10,000 per accident to cover repairs to the other driver’s vehicle if you’re responsible for the accident.
  • Uninsured Motorist – $25,000 per person or $50,000 per accident to cover medical expenses for you and passengers involved in a hit-and-run accident, or the other driver has no insurance.
  • Underinsured Motorist – $25,000 per person or $50,000 per accident.  This is to cover medical costs for you and any passengers if the liable party causing the accident has inadequate medical coverage to pay for your medical expenses associated with the wreck.  
  • (PIP) Personal Injury Protection – $40,000.  Regardless of who’s at fault for an accident, PIP coverage covers medical expenses and lost wages for you and your passengers injured in an accident. 

How Does a Non-Owner Policy Work?

What if you don’t own a vehicle? In Minnesota, you can still find liability coverage to protect you financially when borrowing a car or driving a rental. It’s called a non-owner policy.  Suppose you don’t personally own a vehicle. In that case, this policy can still give you liability coverage for bodily injuries and property damage. Unfortunately, it doesn’t offer any coverage for your personal injuries or damage to the car you’re driving.

We Are Here To Help

A non-owner policy shows excellent responsibility and character when borrowing someone else’s automobile.  For more information, contact us at the Brittany Olson Insurance Agency LLC in Cloquet, MN, for more about a non-owner policy and other great options.

How Whole Life Insurance Works

When you want to leave some financial protection behind after you’re gone, you need a life insurance policy. These pay a death benefit to the beneficiaries that can help protect them against financial problems.

There are a couple of types of life insurance that you can choose from. You might choose a term life policy, or you may choose a whole life policy. Whole life policies are popular for a number of reasons, and you may find that this is the best type for your needs. When you need life insurance, contact us at Brittany Olson Insurance Agency LLC in Cloquet, MN.

Life-Long Coverage

One reason that this type of insurance is so popular is that your policy will last for the rest of your life. No matter what age you reach, the policy will stay good. The other main type of life insurance, term life, is only good for a certain number of years, and then you have to get a new policy. But with whole life, you can keep the policy for as long as you live. You’ll never have to apply for a new policy. Many people appreciate that their policy won’t expire and that they don’t have to worry about being uninsured. 

Cash Value

Another reason for the popularity of whole life is that the policies build a cash value. As the years pass, there is a value that builds up into a significant amount of money. The policyholder can then borrow that amount if they run into financial problems. This is a feature that gives many people peace of mind in knowing that it’s there if they ever need it. 

Get Life Insurance Today

If you’re looking for a life insurance policy, you can call us at Brittany Olson Insurance Agency LLC in Cloquet, MN to get started. 

Three Mistakes To Avoid When Shopping for Homeowners Insurance

If you have just purchased a new home in Cloquet, MN, you need to properly insure it. In most instances, your mortgage lender requires you to have a certain level of homeowner’s insurance. There is a litany of different options available to you on the home insurance market, and you are bound to make mistakes as a first-time shopper.

We want to help you shop here at Brittany Olson Insurance Agency LLC, so here are three of the most common mistakes made by those shopping for homeowner’s insurance to avoid. 

Three Mistakes To Avoid

1. Getting Lured In By the Lowest Price

No one would fault you for going with the lowest price when shopping for insurance for your Cloquet, MN home. Beware that it may be the cheapest for a reason. To put it simply, things are cheap because they are cheap. Make sure you read the contract to see what exactly is covered in the policy. This doesn’t mean you should automatically take the most expensive policy either. 

2. Underinsuring the Replacement Value

 A common mistake people make is insuring their home to the value of the home on the mortgage. This is a mistake because the home’s value will increase over time. If you have an issue down the road and your home has gone up in value by 20%, it won’t be properly covered. Try to account for future gains in value when calculating the replacement value on your homeowner’s policy. 

3. Insure Yourself Against All Risks

Even if you don’t live in California, you could be at risk of damage from an earthquake. You’d also be surprised how many areas get hail or wind damage that aren’t in high-risk areas. Don’t skimp on covering these things to keep your premiums low. 

Consult With Us

At Brittany Olson Insurance Agency LLC, we help our customers insure their homes properly at a great price. Contact us today if you have questions about your homeowner’s policy and what it should include. 

How can an auto insurance plan in Minnesota protect me?

When you are in the Cloquet, MN area, you will quickly find that the area warrants owning your own vehicle. If you choose to buy a car when you are here, you will also want to know that you have the right protection and support in place. A way you can do this is by getting auto insurance.

A proper auto insurance plan can protect you in various ways:

Cover Your Car

A reason to have an auto insurance policy is so you can get coverage for your car. If you have bought a car in Minnesota, you will always want to know that your investment in it is protected and supported. A great way this is done is by getting auto insurance as it will offer coverage if your vehicle is stolen or damaged. This can prove to be a great financial tool.

Liability Mitigation

It is also a good idea to have an auto insurance plan so you can offset and mitigate your liability risks. Those who are going to drive a car will always run the risk of causing an accident. Fortunately, you are able to offset this concern if you have auto insurance. When you have this support, it will offer coverage if you do have to pay damages following a liability claim. 

Consult With Us

Auto insurance is clearly a great option if you are going to buy a car when in the Cloquet, MN area. If you are looking to purchase a new plan in this region, you should always start your search by calling our professionals with Brittany Olson Insurance Agency LLC. When you speak with our team at Brittany Olson Insurance Agency LLC, you will get to learn a lot more about the value of this coverage and even start the process of building a new plan. 

The Value of Whole Life Insurance: Building Cash Value and Long-Term Benefits

Whole life insurance stands as a stalwart financial tool, offering more than mere coverage. It’s a strategic investment that garners cash value over time, bestowing a range of enduring benefits. Here at Brittany Olson Insurance Agency LLC, serving the greater Cloquet, MN area, we want to help you learn more about these benefits.

The Value of Whole Life Insurance

Accumulating Cash Value

Unlike its term counterpart, whole life insurance extends beyond a predefined period. It cultivates cash value steadily, functioning as a dual-purpose shield. As you dutifully pay premiums, a portion funnels into the cash value component. This nest egg grows tax-deferred, mirroring a long-term savings plan.

Financial Flexibility

The accrued cash value becomes a financial wellspring. You’re free to borrow against it or withdraw, no questions asked. This can be a lifeline during unforeseen circumstances, averting the need to seek costly loans or disrupt investments.

Steadfast Death Benefit

Whole life insurance doesn’t merely cease after a set term. It provides a lifelong safety net for your beneficiaries, securing their financial stability even after you’re gone. The death benefit is typically tax-free, amplifying its utility.

Dividends and Participation

Many whole life policies grant dividends based on the insurer’s performance. These dividends can be reinvested, used to pay premiums, or received as cash. Moreover, policyholders can participate in the insurer’s financial success, further enhancing their policy’s value.

Schedule A Consultation Today!

Whole life insurance transcends conventional coverage, unfurling an array of financial advantages. It’s a vessel for cultivating cash value, furnishing a haven of financial security, and augmenting your estate planning. If you are ready to learn more about purchasing a life insurance policy, such as a whole life policy in the greater Cloquet, MN area, reach out to us at Brittany Olson Insurance Agency LLC today.

How to Choose the Right Neighborhood When Buying Your First Home

As you consider buying your first home here in the Cloquet, MN area, one of the most important decisions you’ll make is deciding which neighborhood to live in. From the type of neighborhood to its location and amenities, there are many factors that you should keep in mind when selecting a neighborhood. Here are some tips from us at Brittany Olson Insurance Agency LLC to help you choose the right neighborhood for your first home: 

Choosing The Right Neighborhood For Your First Home

1. Consider the type of environment you want.

Think about what type of lifestyle you’d like to have and determine what kind of environment suits your needs. Are you looking for a suburban atmosphere or an urban setting? Do you need access to great schools and outdoor activities? Or do you prefer a more secluded atmosphere with plenty of quiet time? 

2. Look into commute times.

Your commute plays a major role in determining where your ideal neighborhood would be located. If possible, try to find a home that is close enough to work or school so that it won’t take too long for you to get there every day. 

3. Explore safety ratings and crime rates.

As much as possible, look into the safety rating and crime rate statistics of your potential neighborhoods before settling on one. This will give you peace of mind knowing that your family will be living in a safe area with low crime levels. 

4. Examine local amenities and attractions nearby.

Consider if there are any local attractions or amenities nearby such as parks, shopping centers, restaurants, etc., which may add value to your lifestyle in this new area. 

Reach Out To Us

For information on a homeowners policy, give us at Brittany Olson Insurance Agency LLC a call today. We serve the greater Cloquet, MN area.

The Truth About 4 Common Auto Insurance Myths

At Brittany Olson Insurance Agency LLC we do more than provide auto insurance. We also believe it’s important to educate our Cloquet, MN customers on auto insurance. 

Auto Insurance Myths

Myth 1: Insurance is Tied to the Driver

The truth is that most insurance policies cover the car, not the driver. This means that if another licensed driver has an accident in your vehicle, your policy will cover it. 

It also means that if you drive someone else’s vehicle that isn’t insured, your insurance will not cover it.

Myth 2: One Insurance Company Is the Same as Any Other

This is also false. Generally, insurance companies offer similar types of policies. However, the number of policies and options offered, premiums, and deductibles can vary greatly. Customer service can also vary between companies, so there’s a lot to consider when choosing an insurance provider. 

Myth 3: You Only Need Minimum Coverage

Minimum coverage will keep you legal, but it may not provide the coverage you need. If you are involved in an accident, and the costs of the accident exceed your coverage limits, you’ll be responsible for the difference. 

Myth 4: Full Coverage Includes Everything

Full coverage includes comprehensive and collision coverage. This type of coverage covers nearly everything, but there are some exceptions.

Collision coverage covers damage to your vehicle if you are at fault in an accident.

Comprehensive coverage covers damage to your vehicle when you aren’t on the road. This includes theft, vandalism, and damage due to storms.  

However, policies typically have some exclusions. Your policy may not cover other drivers. Some policies only provide coverage within the U.S. 

Reach Out To Us

If you need auto insurance in the greater Cloquet, MN community, contact us at Brittany Olson Insurance Agency LLC. Our friendly agents will discuss your options and help you choose the best policy for your needs. 

Is Your Life Insurance Policy Up to Date?

Quality life insurance is important when it comes to protecting your loved ones. It’s not always easy to talk about a time when you’re no longer living, but you don’t want to let discomfort stop you from getting the policy and coverage your family needs. At Brittany Olson Insurance Agency LLC, we serve the Cloquet, MN area and can help you find the right policy for your situation.

Keeping Your Life Insurance Policy Updated

Whether you have extended family you want to leave something to, children to protect, or any other situation, the right life insurance can help keep the people you love protected and make it easier for them to manage daily life in the aftermath of your passing. This kind of insurance also provides you with plenty of peace of mind, so you can enjoy time with your loved ones instead of worrying about leaving them.

If you don’t have a life insurance policy, it may be time to get one. A lot of people have them, but their policies were purchased years ago and haven’t been changed or updated. Reviewing your policy and making updates on a regular basis can help you get the security and comfort you’re looking for while making sure your family will have what they need if you’re no longer able to provide for them.

Give Us A Call

Reach out to us today at Brittany Olson Insurance Agency LLC if you’re in the Cloquet, MN area and looking for a trusted insurance agent who can help you with a policy. Because life insurance is so valuable, and there are different types of policies, you want to be sure you’re getting what you need. An agent can help you by presenting options and providing information, so you can make a knowledgeable decision about the kind of life policy you need most.

What is Home Liability Insurance?

Liability is a form of legal responsibility, often for a business or a person obligated to pay a sum of money through court. When you own a home, you might end up facing a legal situation over something that happens on your property. At Brittany Olson Insurance Agency LLC, we provide home liability insurance to the people of Cloquet, MN.

What Would Lead to a Home Liability Lawsuit?

If a person experiences an accident or a form of physical harm while visiting your property, that person might decide to take you to court in a lawsuit. The situation could be anything from a personal injury to a loss of personal belongings. If you’re a homeowner being taken to court over an injury or over property damage, then you’ll need to find financial coverage for this type of situation. Having a decent insurance plan beforehand can help, and it will give you peace of mind during the lawsuit’s proceedings. 

What Does Home Liability Insurance Cover?

Usually, liability insurance will cover the medical costs of a person’s bodily injuries. This could be anything from a slip down a set of stairs to a fall from a balcony. Liability insurance will also pay for property damages. If you’re wondering about what other situations a home liability plan will cover, feel free to ask one of our agents at Brittany Olsen Insurance Agency LLC.

Getting Home Liability Insurance in Cloquet, MN

If you’re interested in learning more, feel free to contact the Brittany Olsen Insurance Agency. Our team would be happy to book you an appointment or answer any of your insurance-related questions.