For homeowners in Rosemount, Lakeville, Farmington, Apple Valley, the Twin Cities Area and surrounding Minnesota.
Your homeowners insurance gives you a lot of protection — and for most people, it works exactly as expected when something goes wrong. But there are a handful of situations where homeowners find out too late that their policy has a gap. Here are five of the most common surprises, and what you can do about each one.
1. Flooding
This is the big one. Standard homeowners insurance does not cover flood damage — full stop. That includes water that enters your home from outside, whether it’s from a heavy rainstorm, a nearby creek overflowing, or snowmelt backing up against your foundation.
Minnesota families know better than most how quickly spring thaw or a summer storm can turn into a basement full of water. If you’re in a low-lying area of Rosemount, near the Mississippi River corridor, or in any neighborhood with older drainage infrastructure, flood risk is real and worth taking seriously.
Flood coverage is purchased separately, typically through the National Flood Insurance Program (NFIP) or certain private insurers. It’s not expensive for lower-risk properties — and it’s one of those coverages you really don’t want to discover you’re missing after the fact.
2. Sewer or drain backup
Related to flooding but different — and also not covered by a standard homeowners policy. If your sewer line backs up or a floor drain overflows, the water damage to your finished basement, flooring, and belongings is typically excluded.
Sewer backup coverage is usually available as an affordable add-on endorsement to your existing policy. Given how common this claim is in the Twin Cities metro — especially in homes with aging sewer lines — it’s one of the first things we recommend South Metro homeowners ask about.
3. Normal wear and tear
Homeowners insurance is designed to cover sudden, unexpected losses — not gradual deterioration. If your roof is 25 years old and starts leaking, or your HVAC system fails after years of use, your policy isn’t going to step in.
This surprises a lot of homeowners, especially when a claim is denied because an adjuster determines the damage was due to deferred maintenance rather than a covered event like a storm. The best protection here is staying on top of routine maintenance so that when a covered event does occur, there’s no question about the cause.
4. Trampoline and pool liability — sometimes
If you have a trampoline, in-ground pool, or hot tub, your homeowners liability coverage may be limited — or your insurer may require specific safety measures like a fence or locking cover as a condition of coverage. Some carriers in Minnesota exclude trampolines altogether or will non-renew a policy if they discover one on the property.
If you’re adding any of these to your Rosemount or Apple Valley home this summer, give your agent a heads-up before the install. It’s a quick conversation that can prevent a much harder one later.
5. Home-based business equipment and liability
More people than ever are working from home — and most of them assume their homeowners policy covers their business equipment and any business-related liability. It usually doesn’t, or covers it only up to a very low sublimit.
If you have clients visiting your home, ship products, or have significant business equipment, you likely need either a home-based business endorsement or a separate business owners policy. We’ll cover this topic in more depth in an upcoming post, but the short version is: don’t assume your homeowners policy has you covered just because you work from home.
Already have a homeowners policy? It’s worth a quick review.
Coverage gaps are easy to miss when you’re just renewing year after year without a second look. At Sentinel Assurance Group, we work with homeowners across Minnesota to make sure their coverage actually reflects their home, their life and current gaps in the market — not just what it looked like when they first bought the policy.
Give us a call or send us a message. A quick review costs you nothing and could save you a lot.
Serving homeowners in Rosemount, Eagan, Apple Valley, Lakeville, Farmington, and the greater South Metro.
If you’ve ever shopped for insurance in Minnesota — home, auto, health, or otherwise — you’ve encountered the word “deductible.” It’s one of the most fundamental concepts in insurance, yet it’s also one of the most misunderstood.
Get this one concept right, and you’ll be far better equipped to choose the right coverage and avoid unpleasant surprises when you actually need to file a claim.
The Simple Definition
A deductible is the amount you pay out of pocket before your insurance company starts paying on a claim.
Think of it like this: your insurance policy is a safety net, but you’re responsible for the first portion of any loss. That portion is your deductible. After you’ve covered the deductible, your insurance kicks in and covers the rest — up to your policy limits.
A Simple Example
Let’s say you have a homeowners insurance policy with a $1,000 deductible, and a storm causes $8,000 of damage to your roof.
Your deductible: $1,000
Your insurance pays: $7,000
Your out-of-pocket cost: $1,000
Now imagine a smaller claim — say, $600 in damage. Because the damage is less than your deductible, your insurance wouldn’t pay anything. You’d cover the full $600 yourself. This is one reason it’s not always a good idea to file a claim for every minor incident.
How Deductibles Work Across Different Insurance Types
Deductibles function slightly differently depending on the type of insurance:
Auto Insurance
Auto policies typically have separate deductibles for collision coverage (when you’re in an accident) and comprehensive coverage (theft, weather, hitting a deer, etc.). These deductibles apply per claim — meaning each time you file, you pay the deductible amount.
Example: $500 collision deductible. You back into a pole and cause $2,200 in damage. You pay $500; your insurer pays $1,700.
Homeowners Insurance
Like auto, homeowners deductibles apply per claim. Most policies have a standard dollar-amount deductible, though some — particularly in high-risk areas — use percentage-based deductibles for specific perils like wind or hail.
Percentage deductibles are based on your home’s insured value. A 2% deductible on a $300,000 home means $6,000 out of pocket before insurance pays. It’s important to understand which type your policy uses.
Umbrella Insurance
Umbrella policies often have what’s called a “self-insured retention” rather than a traditional deductible, but the concept is similar — there’s a threshold you absorb before the umbrella coverage activates.
Life Insurance
Life insurance policies do not have deductibles. When a claim is paid, the full benefit goes to the beneficiary.
Commercial / Business Insurance
Business policies follow a similar structure to homeowners and auto — deductibles apply per claim, and the amount can vary significantly depending on the type of coverage and the risk involved.
The Deductible-Premium Relationship
Here’s one of the most important things to understand about deductibles: they have a direct inverse relationship with your premium.
Higher deductible = lower monthly/annual premium
Lower deductible = higher monthly/annual premium
Why? Because when you accept a higher deductible, you’re agreeing to absorb more of the financial risk yourself. The insurance company is taking on less risk, so they charge you less.
This creates a real choice every policyholder has to make:
Lower Deductible: You pay more each month, but face less out-of-pocket cost if something happens. Better if you don’t have much in savings.
Higher Deductible: You pay less each month, but need to be able to cover a larger amount if something happens. Better if you have an emergency fund.
How to Choose the Right Deductible
There’s no one-size-fits-all answer, but here are the key questions to ask yourself:
1. What Can You Afford to Pay Out of Pocket?
Your deductible should be an amount you could realistically cover without financial hardship. If you choose a $2,500 deductible to save on your premium, but you don’t have $2,500 available in an emergency, that’s a problem.
2. How Often Do You Expect to File Claims?
If you’re a careful driver with a clean record and a newer car in a safe area, a higher deductible might make sense — you’re less likely to need it. If you live in an area prone to severe weather or have a long daily commute with high accident risk, a lower deductible might be worth the higher premium.
3. Does the Math Work?
Compare the premium savings of a higher deductible against how much more you’d pay out of pocket in a claim. For example, if raising your deductible from $500 to $1,000 saves you $200/year on your premium, you’d need 2.5 claim-free years just to break even. That analysis helps you decide.
Common Deductible Mistakes to Avoid
Choosing a deductible you can’t actually afford: The savings feel great until you need to file a claim and can’t cover your portion.
Forgetting that deductibles apply per claim: If you have two separate incidents in one year, you pay the deductible twice.
Confusing percentage and dollar deductibles: Always confirm which type applies to your policy, especially for homeowners coverage.
Filing small claims just because you’re covered: Filing a $700 claim with a $500 deductible might not be worth it — you only get $200, and your premium could increase at renewal.
Should You File a Claim or Pay Out of Pocket?
This is a question worth asking every time something happens. A general rule of thumb: if the cost of the damage is only slightly above your deductible, it may be better to pay out of pocket. Filing a claim — especially multiple claims in a short period — can lead to premium increases or even policy non-renewal.
A good agent can help you think through whether filing makes sense in a given situation.
The Bottom Line
Your deductible is the foundation of how your insurance policy actually works in practice. Getting it right — choosing an amount you can afford that balances your premium cost — is one of the most important decisions you make when purchasing a policy.
When in doubt, talk it through with your insurance agent. That’s exactly what we’re here for.
Have questions about your deductibles? Whether you’re reviewing an existing policy or shopping for new coverage, our independent agents can walk you through your options and help you find the right balance of coverage and cost. Contact us today for a free review.
Rosemount, MN, October 2024 — Sentinel Assurance Group has been named a 2024 Nextdoor Neighborhood Fave business, the annual awards program that recognizes local businesses loved by neighbors. Neighborhood Fave winners like Sentinel Assurance Group will receive greater visibility and ranking on the Nextdoor app, a Neighborhood Fave badge on their Nextdoor Business Page, and a “2024 Neighborhood Faves Winner” sticker to showcase their win in the real world.
“This year’s Neighborhood Fave businesses represent the outstanding service providers, local spots and eateries that are an essential part of our everyday lives,” said Nirav Tolia, Chief Executive Officer of Nextdoor. “We’re thrilled to celebrate these important members of the community, but more importantly, being a Neighborhood Fave is good for business. Congratulations to all of this year’s winners.”
Selected by volume of neighbor ‘Faves’ and recommendations on the platform from the past year, the Neighborhood Faves awards recognizes the most beloved local businesses on Nextdoor. Used by one in three households in the US, Nextdoor is the essential neighborhood network where neighbors, public agencies, and businesses connect around local information that matters. In a May 2023 Nextdoor survey, 94% of Nextdoor neighbors report valuing recommendations for products, services, and businesses from their Nextdoor neighbors and Neighborhood Faves winners receive six times more recommendations on their respective Business Pages.
The complete list of winning businesses is available at nextdoor.com/favorites. Join the neighborhood network by downloading the Nextdoor app in your favorite app store or visiting nextdoor.com.
Solar panels can be economically and environmentally sound, and they’re more accessible than ever. According to one research firm, U.S. homes and businesses installed a new system every four minutes in 2013.
But, is solar power right for you here in {city, state or region}? To help you address the question, here are five things to think about before making the switch:
The different options for installing a solar system. Oftentimes you don’t have to foot the full cost of going solar yourself. Instead, you may be able to lease a system from a company that installs and maintains it, or enter into an agreement where a third party actually owns the system and bills you (likely at a reduced rate) for electricity. Just keep in mind that installing and owning your own system may provide the best long-term return, and tax credits or rebates may help to lower upfront costs.
Your current energy costs — and your future needs. Depending on your situation, you could have relatively low energy bills now and not be as motivated to pursue solar as someone with higher costs. But what does the future look like? If your family is growing, your energy costs are probably about to grow, too, and investing in solar might be worth your while.
The power a system would generate. Have a reputable solar company measure the amount of sun your home gets, taking into account things such as shade, trees, etc., so you can make an informed decision about expected savings.
What your homeowners policy says. With any improvement that increases the value of your home, you need to make sure your insurance policy reflects the change. Give us a call to see if your policy already covers solar panels. If it doesn’t, we can help you amend it. Coverage can vary by carrier as well
Your goals. Are you mainly looking to save money? Help the environment? Both? Knowing your goals will help you determine whether solar is the right choice for you, as well as which option makes the most sense. No matter what you choose, even considering solar means you’re thinking about energy a little differently. And that’s a good thing.
Renewable power – it can help protect your from rising energy costs and even power outages, not to mention the good it does for the environment. Just be sure to consider your options and all the costs involved before making the leap.
Here in Rosemount, we have experienced some recent severe storms that have seen various sizes of hail fall. We’ve been getting lots of questions from our customers as to what to do if they want to see if they have any storm damage. It’s always best to consult directly with your insurance agent or give us a call at our office if you have specific questions, but here are a few tips and resources to help you in this scenario.
Door Knockers
Often times after a storm, you’ll hear that dreaded doorbell within a few hours of the hail falling, and you can almost be certain it is an out-of-state roofing contractor wanting to take a look at your roof and file an insurance claim for you. Before you let them do that, ask if they are local or from out of state and ask to see their licensing information.
There’s no harm in allowing them to do an inspection, but do not let them file an insurance claim on your behalf. Always contact your insurance agent first so they can advise you on the best course of action in determining whether you should file a claim or not. A lot of these companies will “guarantee” a new roof and we often see insurance fraud with this type of business practice.
Keep It Local
It’s always best to use a local, reputable roofing contractor if you suspect you might have hail damage. We have compiled a list of locally owned roofing contractors to give you a place to start in finding one to work with.
Did you know that, according to the U.S. Department of Energy (DOE), Americans spend about $11 billion each year on air conditioning? That might not be such a surprise if you’re the one who writes the check for your household energy bill every month.
Believe it or not, you can spend less on cooling costs while still keeping cool in Minnesota. Here are five things to do before you reach to adjust the thermostat:
1. Make sure your house isn’t part of the problem. If your home isn’t insulated and sealed well, warm air could be leaking in, sabotaging your efforts to cool things down. Make sure all cracks and openings are sealed, along with your ducts. The DOE says air loss through ducts can account for 30 percent of the energy a cooling system uses.
2. Keep that breeze flowing. Natural ventilation is a great way to decrease the temperature in your home without using any energy. Open windows in the mornings or evenings when the air is cool and get a cross-breeze going throughout the house.
3. Check that the heat isn’t on. You might be heating your house in the summer without realizing it. How? By using the oven, stove or other appliances that generate heat. Cook outside whenever you can, and use the dishwasher and clothes dryer at cooler times of the day if possible.
4. Create your own personal cool zone. Cooling the whole house might not be necessary if you’re only using a few rooms. Set up fans (ceiling fans will allow you to set your thermostat a few degrees higher), drink plenty of cool liquids and eat cold foods, which can help lower your body temperature. You might even consider wearing a damp shirt to stay comfortable or putting an ice pack on your forehead, the back of your neck or your wrists.
5. Don’t forget the basics. When it’s sunny outside, keep your curtains closed. Minimize your use of lights, as they generate heat. And, when the outside air is warmer than the air in your house, close the windows to keep the cool air in. We can’t promise these tips will keep you just as cool as when you kick back and turn on the AC full-blast. But saving money every month? That’s pretty cool, too.
