FAQs

Auto FAQs

General FAQs

How can I tell if the amount of insurance I carry on my house is adequate?
Insurance Agents have access to a computer program known as the Boeckh Home Evaluation System. If you provide them with proper information regarding your home they will be able to assist you in establishing an accurate value for you home.

If my house burns down how will I be compensated?
The best policies are written on a replacement cost basis, which means that providing you carry an adequate amount of insurance you will receive "new for old" on both the building and its contents. If you are ineligible for replacement cost coverage due to market or underwriting conditions, you may have actual cash value coverage, which means settlements will be based on depreciated or market value. It is important that you are aware of the type of coverage that you have and what additional costs you can face at the time of loss. Be sure to discuss this with your insurance agent.

Do I have to keep a complete list of my contents in case of a fire?
Some people prefer to do this, however it is a very difficult task and has to be updated frequently to be accurate. A preferable method is to either have a firm catalogue your home on film or do it yourself and keep a copy of the film off premises.

I've heard about "guaranteed replacement cost" on homes, how does it work?
If you have provided your insurance agent with adequate information to complete a home evaluation report, you will be eligible to have a guaranteed replacement cost endorsement added to you insurance policy. The endorsement agrees to replace the structure whether the amount insured is adequate or not.

How would replacement cost work on my antiques and paintings?
These items are not subject to the replacement cost since by their nature they are irreplaceable. Therefore, it is important that you have such items appraised so that a proper value can be determined.

If I operate a small business from my home do I have to notify my insurance agent?
The liability coverage under homeowners insurance policies is restricted to residential use and there are several limitations to the amount of business property that would be covered while on your premises. This is an important issue that you should discuss with your insurance agent.

If I lose my diamond ring would it be covered under my insurance?
Only if you carry a homeowners policy which provides all risk coverage on contents, and then only to the jewelry limitation which can range from one to five thousand dollars. The best bet is to have the jewelry appraised and insured under a jewelry floater if it is of significant value.

Auto

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Does everyone have to have auto insurance?
 
Answer: Yes, automobile liability insurance, or proof of financial responsibility is required in all fifty states. Although each state sets their own limits on how much insurance is needed, these are only minimum limits and in most cases additional coverage is needed if you don't want to have to pay additional expenses out of pocket. If you have a lease or loan on your car you are usually required by the lender to have comprehensive and collision coverage in addition to the state required liability coverage.

What are the best liability policy limits?
 
Answer: It is generally accepted among insurance agents that the state minimum policy limits are not enough. Most insurance professionals would agree for the average driver the best liability limits to have are 100/300/100. This means:
 
100,000 per person for bodily injury
300,000 per accident for bodily injury
100,000 per accident for property damage
 
Since in most areas medical treatment is in fairly the same range, the last limit, per accident for property damage, is the one you may want to take into account if you are not the average driver. If you live in an area where you feel that if there was an accident, that was your fault, and property damage may exceed 100,000, you may want to consider higher limits. Remember, property damage is the other person's car and any other property damaged during the accident if you are at fault. In some areas one's landscaping can cost over 100,000!

What is the difference between comprehensive and collision?
 
Answer: Collision coverage is when you have a collision with something like another car. Comprehensive coverage is when it is anything else other than a collision such as fire or theft. Most people would have both coverage's when using the car on a regular basis. Sometimes when one is just storing a car they may only keep comprehensive coverage since they are not using it on the road therefore, it is unlikely to be in a collision.

Is anyone who drives my car covered?
 
Answer: In most cases, yes, as long as they have the permission or reasonable belief from the insured that they can use the vehicle. The insured is the person named on the policy and their spouse if applicable. There are some exclusions, so you would need to look at your particular policy to make sure. Remember, everyone in your household must be listed on your policy if they have a license. For example, if a girlfriend you live with uses your car, she may not be covered if you did not list her on your policy. On the other hand, if you live separately, she could use you car with your permission and be covered.

How does my driving record affect my insurance premium?
 
Answer: The premium you pay is a direct reflection of your driving record for the past three to five years depending on the insurance company. Insurance companies order driving records from the DMV of your residence state and from other states where you've been licensed. Statistics show that drivers with tickets and accidents are more likely to have accidents than drivers with clean records.

Why is it harder to get insurance if drivers in my household have bad driving records?
 
Answer: Many companies will not insure you if you live with a relative who has a poor driving record. If your teenager has a poor driving record, you may have trouble getting a preferred rate because he or she is defined as an "insured" under your policy. Some companies will exclude this person by name from the insurance policy. Many companies will not insure anyone in the family unless every driver in the household meets their requirements.

My car was totaled and my policy did not pay what I think my car was worth. Why?
 
Answer: Most auto insurance policies pay the actual cash value (ACV) of a vehicle totaled in an accident. The ACV is equal to the market value of an auto immediately before the accident. Insurers must use a fair and reasonable method to determine the value of your car. If you have concerns about their decision you may be able to negotiate with your insurer by telling them why your car may have had more value than what the insurance company originally determined.

 

 

Homeowners

What is the difference between the replacement cost and the actual cash value of my property?
 
Answer: Replacement-cost coverage pays to replace your home and belongings with materials of "like kind and quality" at current prices. Actual cash-value policies reimburse the depreciated value. A replacement-cost policy will usually cost a little more. Some companies no longer offer replacement cost coverage.

Why didn't the insurance company pay the appraised value of my loss?
 
Answer: The appraised value of your property is the value when the appraisal was made. Your property may have lost value since your last appraisal as a result of poor maintenance or depreciation. If your house or belongings are damaged, your insurance company must pay your property's actual cash value at the time of the loss or its replacement value if your policy provides replacement cost coverage.

Why did my agent tell me one price for my insurance, but the company is charging me more?
 
Answer: If an agent tells you one price, but your bill is for a higher premium, it could be that a simple mistake was made in processing your application. Check to see if the amounts of insurance, deductible, scheduled items, and policy endorsements are the same on the policy and the quote. If you can't find a discrepancy, check with your agent or company to find out if the bill is correct. If the bill is higher than you expected, ask for an explanation. You will probably find there is an honest misunderstanding between you and your agent. These misunderstandings or "misquotes" can happen when the agent does not have accurate information about your property or about what kind of coverage you want.

Why didn't my insurance pay to replace everything I lost?
 
Answer: Most homeowner policies have "dollar limits" on certain types of belongings. Generally, these limits are on silverware, guns, jewelry, watches, furs, and computers. The limits usually cover losses of the average person. Talk to your agent or insurance company about increasing these limits to meet your individual needs.

Why didn't my policy pay for damage caused by a flood?
 
Answer: Flood damage is not covered by most homeowner policies. A separate policy can be purchased through the National Flood Insurance Program insurance company, call NFIP, (888) 724-6924, or check NFIP's Web site: http://www.floodalert.fema.gov/

Why didn't my policy pay for seepage, dry rot, and vermin?
 
Answer: Generally, insurance policies exclude damage caused by seepage, dry rot, or vermin (animal pests). This is because these problems are usually the result of poor maintenance, not a "sudden and accidental" event.