FAQs

• Auto Insurance
• Homeowners Insurance
• Renters Insurance
• Business Insurance

What does insurance do for me?

• Allows you to purchase cars or homes by providing collateral to the financial institution lending you the money.
• Allows you to save for retirement and postpone interest payments until your income is lower, thus reducing your tax payments.
• Provides money to defend you if you are sued over an accident and then protects your assets against loss from a court award.
• Provides financial security for your family in the event of your death.
• Provides health care for you and your family.
• Allows you to remain financially solvent when you're ill and can't work.

What influences the amount of my premiums?

• If you've had claims, including medical care, auto body repair, legal defense or jury awards, your premiums will be higher.
• If you or your family members have bad driving records, your auto premiums will be higher.
• If you have a lot of overhead expenses such as rent, utilities, salaries and benefits, office supplies, equipment and furniture, your business premiums will be higher.
• Good driving records, few claims, burglar alarms and other factors can also lower your premiums.

AUTO INSURANCE

How does where I live affect my premium?

The likelihood of accidents, theft or vandalism increases in larger, more densely populated areas.  The time and efficiency of police response, local road or traffic conditions and the quality of local medical services can affect regional insurance rates. Some insurance companies even factor in the litigation rates in a given area (how many lawsuits are filed, go to trial, out of court settlements and their amounts.)

Do all states require some kind of liability insurance?

Some states have financial responsibility laws instead, requiring drivers to be able to pay for any damage or injury they cause.  All states are required to offer Uninsured Motorist and Underinsured Motorist policies, including no-fault states.  Some states require all drivers to have this coverage, to protect them against the inadequate insurance coverage of other drivers.

What happens when I loan my car to someone?

Liability and coverage for physical damage to the car (Comprehensive and Collision) always go along with your car if you let someone use it. If the driver of your car is insured, his/her policy will also be available to cover any damages or injuries. The same is true when you borrow someone's vehicle or rent a car - your own insurance follows you. However, the vehicle owner's policy is always the key coverage in the event of an accident.

Is my car 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 insurers if they refuse to cover a claim?

First, contact us if you feel you're being treated unfairly. Your agent is your strongest advocate. Insurance companies that refuse to cover a claim usually have a strong legal reason - even if you disagree - so if it's a legal problem you might have to hire a lawyer.

Who decides about insurance, the mortgage company or me?

The mortgage company has a right to protect their investment, but the policy is yours and you pay for it.  You can select the insurance you feel offers the best coverage at the best rates. The mortgage company collects a set amount from you monthly which is put in escrow (set aside) to cover your insurance and taxes. 

What exactly does a homeowners policy cover?

Exact coverage is impossible to define because there are about 900 insurance companies the United States offering different homeowners policies. However, they all cover two important areas, property and liability.  Property insurance covers your structures and possessions. Personal liability means you're legally obligated to pay others for damage caused by you, your family or your property. That includes medical payments for injuries caused by you or your family.

Are floods, earthquakes and other natural disasters covered?

Most catastrophes are covered, but flood or earthquake damage is not covered by a standard policy. Both are more common than many people realize, especially in coastal area.  We can advise you about appropriate insurance protection for floods and earthquakes.

Are there exclusions I should know about?

Exclusions listed and defined in your policy might include neglect, intentional loss, general power failure and 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.  An Ordinance or Law exclusion has to do with building codes established by cities or towns. These can drive up the cost of rebuilding or repairing after a loss. If current law demands more expensive materials than those you're replacing, the replacements might not be covered fully.

RENTERS or CONDO INSURANCE

Does my condo association's or landlord's insurance protect me?

Usually the property owner's insurance covers the building itself.  Tenants are responsible for their own possessions and liability. Clarify this with your landlord before signing a lease.  Condominium master policies usually cover just the exterior of the building and common areas, but not the interior of your unit or your possessions.

BUSINESS INSURANCE

If I just started a business do I need insurance immediately?

Your chance of suffering a loss begins with the first day of business, so many states and towns require businesses to have insurance. If you rent space for your business, your landlord probably requires you to have coverage, too. Without proper coverage your insurance agent can do little, if anything, to help you.

Why do I need insurance if my business doesn't have major assets?

Every business has some property such as computers, inventory, equipment or client lists. The business itself is your property and needs to be protected from loss just like your home or car. Your business is also your source of income, so you need protection from potential loss of that income due to damage, illness or liability.

Does insurance coverage vary for different businesses?

Depending on the type of business, it can vary widely.  Many small businesses opt for package policies called BOP (Business Owners Policy)to cover major property and liability exposures and loss of income. BOPs usually provide more complete coverage at a lower price than separate policies for each type of insurance would. You can purchase coverage for excluded perils or conditions, like flood protection, as endorsements to a standard policy or separately, in a DIC (Difference in Conditions) policy. We can help you decide which policy or policies are right for your business.

Please contact our office to consult with an agent.