Delaware Insurance Newsletter - Life and Homeowners Insurance Consumer Guide

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March 2026March 2023A Newsletter for DelawareansDon't Rely on Luck

When it Comes to Life Insurance

In This IssueThe Basics of Life Insurance

Life insurance is a way of planning to take care of your • Life Insurance Basics family and loved ones at the time of your death. It is considered an important part of a financial plan, and • Home Owners Insurance Tips to can be used to: Consider

• Replace income you would have earned for your • DOI Cornerfamily after you are gone.
• Take care of debts that your family could face or be • Ask the Commissioner

left with.

• Pay any estate taxes your heirs might face. To find out more about life
• Achieve other financial goals, including paying insurance continue on to for a child's education, donating to charity after page 2your death or even supplementing your retirement

income while you are alive.

Trinidad Navarro Insurance Commissioner Delaware Department of Insurance 1351 West North Street, Suite 101 Dover, DE 19904

Life InsuranceBASICS

Tips for purchasing a life insurance policy:

Shop around. Consult with multiple insurance

agents or use an internet quote service to get a sense of the premium you can expect to pay. While many will be within the same range, premiums can vary dramatically How much life insurance you need depends on your even among well-known companies. Also, stage in life and will change over the course of your life. determine what rate class you will be in Also, you will need to decide who is the beneficiary of based on your health and history - preferred, your life insurance policy. It can be one person, more standard or non-standard. than one person, a charity or your estate. You should be as specific as possible in naming beneficiaries in order to Look for group insurance. See whether life avoid confusion and possible conflicts after your death. insurance is available from your employer You should name one or more "contingent" beneficiaries, or from organizations or clubs you belong in case your primary beneficiary dies before you do or to. Often these group policies are less cannot be found. expensive, in part because your employer may pay some of the premium for you as You will need to decide whether you want a term life part of your benefit package. insurance policy, a permanent life insurance policy, or a combination. Descriptions of the two types are in this guide. Finally, do not sign an application for a life Live healthy. Quitting smoking, losing weight insurance policy until you review it very carefully to make or exercising regularly may put you in a less sure it is accurate and complete. Any inaccurate or expensive rate class for your life insurance. incomplete answers may be grounds for a company not to pay out the death benefit should you die. Ask for an illustration. If you are purchasing a policy where the cash values, death Depending on what your goals are, you and an insurance benefits, dividends or premiums may agent or financial professional should determine how vary, ask the agent or company for much it would take to:an "illustration" of what the company guarantees and what could happen in the • Provide income for your family, including any parents, future as situations change. grandparents, or others outside your immediate family for whom you are or may eventually be responsible

• Pay off outstanding debts, such as a mortgage, auto Take a "free look." New life insurance
  loans, student loans, etc.policies have a "free look" period of 10 days

• Set aside money to pay for a child's educationafter you receive the actual policy forms, a

• Pay the expensive costs for funeral and burialtime during which you can cancel the policy

• Leave money to charity organizationsand get a full refund with no penalty.• Pay off estate taxes

• Account for inflation in future yearsIf it sounds too good to be true… Some
  companies that offer very, very low After adding up your family's needs should you die, you premiums may not be financially sound. can subtract any financial resources they will have access And companies that offer policies with "no to, including their income, savings, investments and any medical exam" or that say "you cannot life insurance policies you already have. The difference be turned down" may have very, very high between your family's need after your death and what their resources would be will show how much life insurance premiums - so high, in some cases, that a coverage you may require. Some insurance agents few years' worth of premiums will add up to suggest that you purchase five to eight times your current more than the death benefit the policy will income. However, it is better to go through the above pay out. exercise to figure out a more accurate amount.

Home owners Know Your CoverageInsurance Tips To Consider Different types of homeowners policies protect your home and personal property in various ways. Insurance It's important to review your homeowners insurance coverage every year. Upon renewal of your policy, companies describe coverage by perils, include things like remodeling, new items you've which refer to the cause of a loss. purchased, new security equipment, or other changes that might affect your policy. • All perils policies generally insure Top Considerations against all perils except ones the policy clearly excludes. The most The price of homeowners insurance depends on several basic policy insures only against the factors: perils named in the policy, such as • Your home: The cost to rebuild it, whether it's made of fire and theft. brick or wood, how far it is to the fire department or a water source, its age and condition, and the home's • You can add riders to cover a risk claims history. that a policy doesn't cover to help • Individual factors: Coverage and deductible, length with additional costs. Examples of coverage, insurance-based credit history, claims include damage due to sewer or history, and whether you insure multiple properties drain backup, and sump pump or personal properties, such as a car with the same insurer. overflow.

• Other factors: Smoke detectors; a swimming pool or • Most homeowners policies don't trampoline; pets; or running a business in your home all cover earthquakes or floods, but factor in. you can buy separate policies to

Always Remember cover most of those risks. In coastal areas, windstorm damage may • Compare insurance companies. Shop around to need to be purchased separately or find the best price and coverage for you, including may require separate percentage discounts. deductibles. Contact your insurance

• Make sure you choose the coverage you need with a agent to find out if these policies are deductible you can afford if you experience a loss. available in your area. The DOI Corner

Employee of the Quarter: Sean Brown

We are proud to recognize Sean Brown as our Employee of the Quarter! Sean began his career in the Captive Bureau, where he worked for 10 years. In 2024, he then transitioned to BERG, where he currently regulates a portfolio of 14 companies across both Property & Casualty (P&C) and Life & Annuity (L&A) sectors. He has earned the Certified Financial Examiner (CFE) designation through SOFE, as well as the Associate in Captive Insurance (ACI) designation through ICCIE, both of which are required credentials for roles within the BERG and Captive divisions. Sean currently holds the title of Financial Analyst III. Congratulations, Sean, and thank you for everything you do!ASK THE COMMISSIONERASK THE COMMISSIONER

How Do I Insure a Vacant Building?

If you own a building that will be vacant for a period of time, it's important to understand that a standard property insurance policy may limit or exclude coverage once a property has been unoccupied for 30 to 60 days. That means you could be left without protection if damage occurs while the building is empty. To properly insure a vacant building, contact your insurance agent or company as soon as you know the property will be unoccupied. They can help you secure a vacant property insurance policy or add a vacancy endorsement to your current policy. These options are designed to address the increased risks that vacant properties face, such as vandalism, theft, fire, or weather-related damage. Insurance companies may also ask about steps you are taking to protect the property, such as installing security Trinidad Navarro systems, maintaining exterior lighting, keeping the building in Delaware Insurance Commissionergood repair, and scheduling regular inspections. Taking these precautions can help protect your property and may help manage insurance costs. At the Delaware Department of Insurance, we encourage property owners to review their coverage before a building becomes vacant. Planning ahead can help ensure your property stays protected and prevent costly surprises if something goes wrong.

Main Office The consumer comes first.1351 W North St Suite 101 Our office is here to help if you have

questions about or problems with Dover, DE 19904 your insurance coverage or insurance company.Georgetown Office Questions about insurance or complaints 28 The Circle, Suite 1about an insurance company or insurance Georgetown, DE 19947agent can be made to the Consumer Our MissionServices Division by phone, by fax, by letter, by email or with an online complaint Wilmington Office Protecting Delawareans form.Rockwood Office Park through regulation and

education while providing 503 Carr Rd.,Phone: 302-674-7300 oversight of the insurance Suite 303Fax: 302-739-6278industry to best serve Wilmington, DE 19809 the public.consumer@delaware.gov