Frequently Asked Questions
Personal Insurance
- When purchasing automobile insurance what should I consider?
- Does my insurance policy cover a friend if I loan him/her my car?
- What is collision physical damage coverage?
- What is comprehensive physical damage coverage?
- How can I lower my automobile insurance rates?
- What is homeowners insurance?
- What do I need to know when purchasing homeowners insurance?
- What is "actual cash value"?
- What is "replacement cost"?
- Should I purchase earthquake coverage?
- Should I purchase flood coverage?
Commercial Insurance
- What is fire legal coverage?
- What does 80% co-insurance mean?
- Can other people drive my business vehicle?
- How does an audit work?
- Why do I need certificates of insurance from sub-contractors?
- What is General Liability?
- What is Business Interruption/Extra Expense coverage?
Personal Insurance
When purchasing automobile insurance what should I consider?
It’s best to ask your agent about what works best for your specific needs, but here are some items to consider when you’re discussing.
- Ask about the amount of liability coverage makes sense for you.
- Ask about optional coverages, like rental reimbursement or coverage for your high-end audio equipment..
- Don't base your decision solely on price (Other factors like service and claim response are extremely important in selecting the right insurance). Rely on your agent to find the right coverage for the right price
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Does my insurance policy cover a friend if I loan him/her my car?
Yes. As long as you have given him/her your permission.
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What is collision physical damage coverage?
Collision is the loss you incur when your automobile collides with another vehicle or object like a telephone pole. If your car is older, it may not make sense to carry collision protection on it. Ask your agent.
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What is comprehensive physical damage coverage?
Comprehensive provides coverage for direct physical damage losses you could incur to your car from something like a hailstorm
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How can I lower my automobile insurance rates?
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 right 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 homeowners policy with the same insurance company, good driver discounts, having a car alarm, good student discounts for young drivers, or special discounts through groups or associations.
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What is homeowners insurance?
The typical homeowners policy has two main sections: 1) coverage for the physical property of the insured and 2) personal liability coverage to the insured. #1 covers damage to your house, its contents, landscaping, etc. Make sure you understand what is covered. Most homeowners insurance does not cover damage from floods, and many have exemptions for wind damage as well. Special insurance may be required. #2 covers the insured from claims made by people who may have been hurt on your property. It does not cover claims such as slander.
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What do I need to know when purchasing homeowners insurance?
- Ask your insurance agent to help you determine the amount of insurance you need. Many factors are important to consider, including type of structure, distance to fire department, age of the structure, and more.
- Ask your agent about insuring your personal property. Most homeowners use a standard formula to determine the value of your possessions. If you own high-valued items, they may need additional insurance.
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What is "actual cash value"?
When "actual cash value" is used in a policy, a policy owner is entitled to the depreciated value of the damaged property.
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What is "replacement cost"?
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. Be sure you understand the limitations of your replacement cost coverage. Because of the fluctuating building costs, you may not get a full 100% of the cost to rebuild. Most homeowners will insure up to 125% of the assessed value of the home.
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Should I purchase earthquake coverage?
Direct damages due to earthquakes are not covered under the standard homeowners insurance policy. If you live in an area that is prone to earthquakes, you may want to consider adding an earthquake endorsement to your homeowners insurance policy. This endorsement will cover damages due to earthquakes, landslides, volcanic eruptions and other earth movements.
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Should I purchase flood coverage?
The US Government runs the National Flood Insurance Program. Most homeowners claims are due to flood damage, so it makes sense to investigate the possibility of buying flood insurance. Talk to your agent.
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Commercial Insurance
What is fire legal coverage?
Fire legal coverage provides coverage to for you if you rent a business space and are held responsible for fire damages to that rented space. It does not apply to all business risks.
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What does 80% co-insurance mean?
Insurance carriers require that an insured party insure at least 80% of the property's value in order to collect a partial loss in full. This is the way the insurance company encourages all insureds to adequately insure their property in relation to other insureds
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Can other people drive my business vehicle?
Other people may drive your vehicle with your permission. It is important that they be listed on your policy if they are regular drivers of the vehicle.
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How does an audit work?
At the end of the policy term, the insurance company will review the policy and either charge or credit the policyholder based upon an audit of estimated figures. Examples of estimated auditable items include sales and payroll. Audits can be performed onsite by an auditor or via mail or telephone. A premium is charged for audit estimations.
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Why do I need certificates of insurance from sub-contractors?
An audit may require you to show proof that sub-contractors had their own insurance coverage. The sub-contractors' certificates of insurance will prevent you from being charged for their exposure.
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What is General Liability?
General Liability provides coverage if you are liable for damages to other individuals arising from your premises, general operations (ongoing and after completion) and products manufactured or sold.
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What is Business Interruption/Extra Expense coverage?
Business Interruption/Extra Expense coverage provides coverage for income loss and the expense of establishing a temporary site during repairs due to damages related to a fire or compensable loss.
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