PERSONAL INSURANCE FAQ'S

  1. Do I have rental car coverage? - Some companies package rental car coverage into their standard auto policy. However, most companies require you to buy that coverage separately. If you don't remember your agent asking you if you wanted the coverage call him/her to ask if you have it.

  2. Do I have to buy the insurance on a rental car? - Most policies provide for coverage of a substitute auto when your car has been involved in a loss. It varies company by company whether they cover your rental when you are out of town. Check with your agent if you are in this position.

  3. What is the difference between comprehensive and collision coverage? - Comprehensive coverage covers theft, vandalism, and believe it or not any collision involved with an animal. Collision coverage covers damage to your vehicle when you impact with any other object then an animal.

  4. What liability limits should I have on my auto? -That really depends on your position in life. You need to protect your assets and those vary person to person. If this question pertains to you please contact your agent as soon as possible to discuss this matter.

  5. When I have Towing Coverage shown can I use it in maintenance situations? - Again, that varies company to company. However, the general consensus is that insurance companies do not want you to use the Towing Coverage unless your car has been involved in a loss and is undriveable. At the same time some companies will let you use it for maintenance situations, however, you need to be careful as frequent use of this coverage will result in higher rates or the cancellation of that particular coverage on your policy.

  6. What is Medical Payments coverage? - Medical Payments coverage on your auto pays medical bills resulting from an auto accident in your covered auto for the insured and his/her passengers. This coverage is available regardless of fault. The difference between medical payments coverage on your auto and medical payments on your home is that the home medical payments coverage will not cover injury to sustained by the insured or members of the insured's policy.

  7. My computer shorted out due to a power surge. Is that covered on my Homeowner's Policy? - Generally, power surges are specifically excluded. However, if the power surge is a direct result of a lightening strike there is coverage available. Now, how do you know if it is a lightening strike? Most claims people will look to other electrical devices in your house. If you have damage to other things that are not on the same circuit then chances are you were hit by lightening. Also, check your circuit breakers, if they all blew that is another sign of lightening. The final test is to see if you have damage to the outside of your house from a strike. Be advised though that some companies offer endorsements to specifically cover home computers from these types of losses. Contact your agent to see if that endorsement if available to you.

  8. I have a wedding ring. Do I need to cover that separately? - Most homeowner's, condominium and renters policies provide coverage for jewelry up to $1,000 per piece. If your wedding is worth more then that contact your agent and have it "scheduled". This means that the insurance company covers it for what it is appraised at. This takes care of determining a value in the future and takes the $1,000 limit off of it. Please note that Internal limits differ for each company so contact your agent about the specifics of your policy.

  9. I bought my house for $150,000 and my agent wants to insure it for $200,0000. Why is that? - The price you paid for your house is the market value of that house. Insurance companies like to as they say "Insure to Value" the problem is that value in that statement is nebulous. Whose value? The majority of insurance companies cover for replacement cost of your home. What that means to you is the fact that your company is prepared to rebuild your home from the ground up in the event of a covered loss. So in to determine the "value" of your house the insurance company looks at the cost it would be to re-build that house in catastrophic events. In a catastrophic event typically there are multiple houses in an area that are damaged some totally some partially. Due to widespread damage there is an increased cost of construction due to demand on materials to repair all these homes. The insurance company takes this into account as well to determine the correct replacement value. As the company is prepared to rebuild your house from the ground up during a catastrophic event they want to make sure they are getting the value on your home.

  10. Do I save money keeping my auto and home with the same carrier? - Almost all companies that offer an auto and home product give you a discount for packaging the two. The discount could be as much as 15%. If you have your auto and home with different carriers contact your agent to see if it is possible to package the two.


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