frequently asked questions
General Insurance Questions
Q: Why do I need to buy insurance?
A:
Protects your assets against attachment as a result of a court award.
Provides for the cost of defense when you are sued.
Allows you to purchase high-value items like cars or homes by insuring the collateral on behalf of the financial institution that lent you the money.
Provides financial security for your family in the event of your death.
Provides for the health care of you and your family through systematic payments.
Allows you to save for retirement while deferring interest payments to a time when your income is lower, thus reducing your tax payments.
Allows you to remain financially solvent when you’re ill and can’t work.
Q: What factors affect the insurance premiums I pay?
A:
Claims activity including costs such as 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
Q: How does where I live affect my premium?
A: Where you keep your car directly affects your chances of having an accident or becoming a victim of theft or vandalism. The likelihood increases in larger, more densely populated cities, while such incidents are relatively low in rural areas. Factors like police response time, local road and traffic conditions, and local medical services quality can affect regional insurance rates. Some insurers also consider litigation rates in the area.
Q: Do all states require some kind of Liability insurance?
A: No. Although not every state requires Auto insurance, some have “financial responsibility” laws mandating all drivers to be able to pay for any damage or injury they might cause. However, Liability insurance is still the best way to meet your state’s financial responsibility requirements.
Q: How do I keep my insurance company from canceling my policy?
A: Maintain a clean driving record, invest in special safety and security features for your car, and consider taking a defensive driving course if you’ve been in an accident.
Q: Am I covered for natural disasters or “Acts of God”?
A: Comprehensive insurance 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).
Q: How can I challenge my insurers if they refuse to cover a claim?
A: Contact us if you feel you’re being treated unfairly. Your agent is your strongest advocate in insurance matters. If it’s a legal problem, you might have to hire a lawyer.
Homeowners Insurance
Q: Who decides on the type of insurance, the mortgage company or me?
A: You do. The mortgage company collects a set amount from you each month to protect their investment, which covers your insurance and taxes. However, the policy is still yours and you select the insurance you feel offers the best coverage.
Q: What exactly does a Homeowners policy cover?
A: Homeowners policies cover Property and Liability. Property insurance covers your structures and possessions. Personal Liability covers your legal obligation to pay another person for actions caused by you, your family, or your property, including medical payments to others.
Q: Are floods, earthquakes, and other natural disasters covered?
A: Most catastrophes are covered, except for flood and earthquake damage by a standard policy. We can advise on such normally excluded conditions.
Q: Are there exclusions I should know about?
A: Exclusions might include neglect, intentional loss, "earth movement," general power failure, and damage caused by war. Also, the Ordinance or Law exclusion might not cover costs driven up by new building codes after a loss.
Renters Insurance
Q: How expensive is renters insurance?
A: Renters insurance is typically available for as little as $100 a year.
Q: Does my landlord’s insurance protect me?
A: Generally, no. 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.
Business Insurance
Q: I’m just getting my business started. Do I need insurance immediately?
A: Yes. Your chance of suffering a loss begins with the first day of business. Local jurisdictions and landlords often require businesses to have insurance.
Q: I don’t have any major business assets. Why do I need insurance?
A: Every business has some property. Your business needs protection from loss, damage, and liability, just like your home and car.
Q: Does insurance coverage vary for different businesses?
A: Yes. Many small businesses opt for package policies like the Business Owners Policy (BOP), which provides complete coverage at a lower price. Additional coverage can be added for normally excluded conditions.
Student/Recent Graduate Insurance
Q: I’m a college student. Am I still covered by my parents’ policies?
A: It depends. Most Health insurance policies cover children up to age 18, or 22 if they continue as full-time students. If you’re over 18 and not a full-time student, you’ll need your own policy.
Q: What kinds of risks do college students face?
A: Theft of personal property, auto accidents, and risks related to attending and giving parties are common among college students.
Q: How extensive are these risks?
A: Property crimes, including burglary and theft, are significant on college campuses. Auto accidents and moving violations are also common, contributing to higher insurance premiums for students.