| Frequently Asked
Questions
Why do I need
to purchase insurance?
- To protect your
assets.
- Provides for
cost of defense when you are sued.
- Allows you to
insure the collateral of high priced items on
behalf of the financial institution that lent
you the money.
- Financial
security for your family in the event of a
severe accident or death.
- Provides for the
health care of you and your family through a
series of payments.
- Allows you to
save for retirement while deferring interest
payments to a time when your income is lower,
thus reducing your tax payments.
- Protects you
financially when you become ill and can't work.
What
determines the insurance premiums I pay?
- Claims activity
like medical care, auto body repair,
construction, legal defense, jury awards, claims
adjustment, and insurance fraud.
- Overhead
including rent, utilities, employee salaries and
benefits, office supplies, equipment, and
furniture.
- Investment
income.
AUTO INSURANCE
How does
where I live affect my premium?
Where your car is housed directly affects the
probability of things like vandalism, theft, or
having an accident. The likelihood of having one of
these problems increases in large cities, while such
incidents remain relatively low in rural areas.
The time and
efficiency of police response, law enforcement,
local road and traffic conditions, and the quality
of local medical services can affect regional
insurance rates. Some insurers even factor in the
statistics of how many lawsuits are filed, go to
trial, out of court settlements, and their amounts
in a given area.
Do all states
require that a person have Liability insurance?
No. Not every state requires Auto insurance, however
some have “financial responsibility” laws insisting
that all drivers are able to pay for any damage or
injury they might cause. Liability insurance is
still the best way for you to meet your state's
financial responsibility requirements.
By law, all states
offer UM and UIM policies, including no-fault
states. In fact, some states require all motorists
to carry this coverage in order to gain protection
from inadequate insurance coverage of other drivers.
How do I keep
my insurance company from canceling my policy?
Maintain a clean driving record, and consider
investing in special safety and security features
for your car. A defensive driving course is a good
consideration if you have been in a accident.
What happens
when I loan my car to someone? Is that person
covered by my policy? Am I still covered?
Yes. Liability and coverage for Physical Damage
(i.e. Comprehensive and Collision) always follow
your car. Plus, if the driver of your car is
insured, his/her policy will also be available to
cover the cost of damages and injuries.
The same rules apply
when you borrow someone else's vehicle; your own
insurance follows you no matter whose car you're
driving. But the vehicle owner's policy is the key
coverage in the event of an accident.
Am I covered
for natural disasters or “Acts of God”?
Comprehensive insurance, which covers you for fire
and theft, generally covers you against damage by
flood, earthquake, hail, and other natural perils,
except when your car is overturned (which is
technically considered a collision). If you have
specific concerns about the safety of your vehicle
in natural disasters, contact us for information on
catastrophic coverage.
How can I
challenge my Insurance Company if they refuse to
cover a claim?
Usually, insurers that refuse to cover a claim have
a strong legal reason for doing so — even if you
disagree. First, contact us if you feel you're being
treated unfairly. Your agent is your strongest
advocate in insurance matters. But if it's a legal
problem, you might have to hire a lawyer.
Return to
top
HOMEOWNERS INSURANCE
Who decides
on the type of insurance, the mortgage company or
me?
You do. The mortgage company collects a set amount
from you each month in order to protect their
investment. This money is put in escrow and covers
your insurance and taxes. However, the policy is
still yours and you might select the insurance you
feel offers the best coverage at the best rates.
What exactly
does a Homeowners policy cover?
“Exact” coverage is impossible to define because
there are different policies and about 900 insurance
companies writing Property/Casualty business in the
United States. However, 80% of Homeowners policies
are based on a standard form. All Homeowners
policies cover two important areas: Property and
Liability.
Property insurance
covers your structures and possessions. Personal
Liability, as its name implies, means you're legally
obligated to pay money to another person for actions
caused by you, your family, or your property. That
liability extends to medical payments to others for
injuries caused by you or your family.
Are floods,
earthquakes, and other natural disasters covered?
Most catastrophes are covered. Flood and earthquake
damage, however, are not covered by a
standard policy and both perils are more common than
many people realize. We can advise you on such
normally excluded conditions as floods and
earthquakes.
Are there
exclusions I should know about?
Exclusions listed and defined in your policy might
include neglect, intentional loss, “earth movement,”
general power failure, and even damage caused by
war. If you fail to take care of your property
(e.g., a leaky roof), you might not be covered.
Obviously, if you intend to lose an object or
damage your property, there's no coverage.
One other exclusion
that can be costly is the Ordinance or Law
exclusion. Building codes established by
governmental bodies that drive up the cost of
rebuilding or repairing after a loss occurs might
not be covered by your insurance policy. Thus, if
you discover when replacing damaged property that
current law demands higher grade or more expensive
materials than those you're replacing, the new
materials might not be covered fully.
Return
to top
RENTERS INSURANCE
How expensive
is renters insurance?
Renters insurance is typically available for as
little as $100 a year.
Does my
landlord's insurance protect me?
Usually not. The property owner's insurance covers
the building itself and seldom a tenant's
possessions or liability. Clarify this with your
landlord before signing a lease.
Return
to top
BUSINESS INSURANCE
I'm just
getting my business started. Do I need insurance
right away?
Yes. Your chance of suffering a loss begins with the
first day of business. If you suffer a loss and have
no insurance or have improper or insufficient
coverage, your insurance agent can do little, if
anything, to help you.
Also, many states and
local jurisdictions require businesses to have
insurance to begin operating. And if you rent space
for your business, your landlord probably requires
you to obtain adequate insurance.
I don't have
any major business assets. Why do I need insurance?
Every business has some property. When you think
about it, your business is your property. Just like
your home and your car, your business needs to be
protected from loss, damage, and liability. In
addition, your business is your source of income, so
you need protection from the potential loss of that
income.
Does
insurance coverage vary for different businesses?
It can. Many small businesses opt for package
policies that cover the major Property and Liability
exposures as well as for a loss of income. A common
package policy used by many small businesses is
called the Business Owners Policy (BOP).
Generally, BOPs
provide more complete coverage at a lower price than
separate policies for each type of insurance needed.
We can help you decide which policy or policies are
right for your business. You can also purchase
additional coverage for perils or conditions
otherwise excluded (e.g., flood protection) as
endorsements to a standard policy or as a separate,
second policy called a Difference in Conditions (DIC)
policy.
We can advise you of
the best policy (or policies) to protect you and
your business.
Return
to top |
