Auto FAQ
Q: When purchasing automobile insurance what should I consider?
A: There are several things you should consider when purchasing automobile insurance that your independent agent will help you with. Here are a few:
- Purchase the amount of liability coverage which makes sense for you.
- Select the optional coverages you want.
- Decide which company to purchase insurance from.
- Don't base your decision solely on price. Other factors like service and claim response are extremely important in selecting the right insurance.
Q: Does my insurance policy cover a friend if I loan him/her my car?
A: When you loan your car to a friend or an associate, he or she will be covered under your automobile insurance policy.
Q: What is collision physical damage coverage?
A: Collision is the losses you incur when your automobile collides with another vehicle or object like a telephone pole.
Q: What is comprehensive physical damage coverage?
A: Comprehensive provides coverage for direct physical damage losses you could incur to your car from something like a hailstorm.
Q: How can I lower my automobile insurance rates?
A: There are several things you can do to lower the cost of your automobile insurance.
One way is to look for competitive pricing. An independent agent works with many companies and can provide you comparative rates and ensure that you are getting the same coverage.
Another way to lower the cost is to change your deductible. By raising your deductible you may lower the cost of your automobile insurance almost 10%. You must be able to pay the deductible amount in case of a claim. You can also look for discounts that you may be entitled to. Some examples of discounts that may be available are: multiple cars under the same policy, carrying a homeowner’s policy with the same insurance company, different groups or associations.
Homeowner's FAQ
Q: What is homeowners insurance?
A: Homeowners insurance is a form of personal lines insurance. The typical homeowner's policy has two main sections: 1) covers the property of the insured and 2) provides personal liability coverage to the insured.
Q: What do I need to know when purchasing homeowners insurance?
A: Here are some basic guidelines:
- Get the amount and type of insurance that you need.
- Determine the amount of personal property insurance and personal liability coverage that you need.
- Select any additional endorsements you want to add to your policy. For example, do you want the personal property replacement cost endorsement?
Q: What is "actual cash value"?
A: When "actual cash value" is used in a policy, a policy owner is entitled to the depreciated value of the damaged property.
Q: What is "replacement cost"?
A: When "replacement cost" coverage is used in a policy, a policy owner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices.
Q: Where and when is my personal property covered?
A: Coverage C of a homeowners policy provides named perils coverage. This applies to all your personal property (except property that is specifically excluded).
Q: Should I purchase earthquake coverage?
A: Direct damages due to earthquakes are not covered under the standard homeowner’s insurance policy. If you live in an area that is prone to earthquakes, you may want to consider adding an earthquake endorsement to your homeowner’s insurance policy. This endorsement will cover damages due to earthquakes, landslides, volcanic eruptions and other earth movements.
Q: Should I purchase flood coverage?
A: If your properties lies in a flood plain as determined by US Government Flood Maps. Ask your independent agent about these maps.
Renters Insurance FAQ
Q: Why would I want to buy renters insurance?
A: If you live in an apartment or a rented house, renters insurance provides important coverage for both you and your possessions. A standard renter's policy protects your personal property in many certain cases of theft or damage and may pay for temporary living expenses if your rental is damaged (including loss of use). It can also shield you from personal liability. Anyone who leases a house or apartment needs should consider this type of coverage.
Q: How does a renter’s policy protect my personal property?
A: A renter's policy provides named perils coverage. This means your property is protected from all the perils that are specifically listed on your policy. These usually include:
- Fire or lightning
- Windstorm or hail
- Explosions
- Riots
- Aircraft
- Vehicles
- Smoke
- Vandalism or malicious mischief
- Theft
- Falling objects
- Weight of ice, snow, or sleet
- Accidental discharge or overflow of water or stream
- Sudden and accidental tearing apart, cracking, burning, or bulging
- Freezing
- Sudden and accidental damage from artificially generated electrical current
- Volcanic eruptions (but this doesn't include earthquake or tremors)
Renter’s coverage applies to your personal property no matter where you are in the world. This means you're covered when you are on vacation as well as at home.
Q: Why do some apartment complexes require tenants to have renters insurance?
A: The owners of these apartment complexes require their tenants to have renters insurance to ensure that they have personal liability coverage. Owners of apartment complexes carry property insurance to protect themselves in the event that the apartment building is damaged. However, if a negligent tenant causes damage, the owner's insurer will sue the responsible tenant for the amount of damage they caused. The owner wants to make sure that the tenant has insurance coverage that will protect him or her in this event.
Q: What if I share my apartment with a roommate? Do we both need to have renters insurance?
A: Standard renters’ policies cover only you and relatives that live with you. If your roommate is not a relative, each of you will need your own renters’ policy to cover your own property and to provide you liability coverage for your own actions.
Personal Umbrella FAQ
Q: What is a personal umbrella liability policy?
A: The personal umbrella liability policy is an insurance contract designed to accomplish two goals.
- First, it increases the liability protection beyond what the policy owner already has in his or her homeowners and automobile insurance policies.
- Second, the personal umbrella policy is designed to fill in the gaps in a policy owner's liability coverage since several types of liability exposures exist that are not covered by automobile and homeowners policies.
Together with homeowners and automobile insurance policies, broad personal liability protection is attained through the purchase of a personal umbrella policy.
Q: How do I know if I need a personal umbrella liability policy?
A: It used to be that the only people who needed personal umbrella liability policies were wealthy individuals who had sizable amounts of personal assets that would be at risk in a lawsuit.
However, in our very litigious society, many people are realizing that they have a need for more liability insurance than what is provided under their homeowners and automobile insurance policies. The personal umbrella policy is ideally suited to provide this protection. |
