Insurance FAQ
Auto Insurance
What is auto insurance and how does it work?
Auto insurance protects you against financial loss if you have an accident. It’s a contract where you pay a rate — commonly referred to as the ‘premium’ — and the insurance company covers losses listed in your policy.
Do I have to have auto insurance?
In every state but New Hampshire and Wisconsin, if you own or drive a vehicle, you must have Liability insurance coverage. If you lease a car or have a car loan, you’ll probably need Comprehensive and Collision coverage as required by your loan agreement. Your independent agent can tell you exactly what your state requires.
Besides legal or loan requirements, why should I buy auto insurance?
The average new car costs close to $30,000, while some cost over $50,000. The relatively small insurance premium you pay covers you for much higher losses; without insurance you’re liable for every penny. Plus, insurance companies are a big help in getting your damaged vehicle repaired.
Why buy auto insurance from a local independent agent?
As your local independent agent and a respected member of your community I understand your insurance needs and comprehend the risks associated with owning an automobile. As an Independent Agent I have the ability to find you the best rate by pricing rates with multiple insurance companies. A Captive Agent such as State Farm or Allstate are limited to one company. As your independent agent in your neighborhood I have resources that can help you understand your insurance and manage your insurance needs as your life evolves.
Homeowners Insurance
Why should I buy homeowners insurance?
› Home Owners: Protect both your house and personal property.
› Tenants of Rental Properties: Protect your personal property.
› All parties: Protection against liability for accidents that injure other people or damage their property.
What property and perils are excluded from most homeowner policies?
Most homeowner policies provide coverage that does not apply to animals, birds, fish, automobiles and business property; for loss or damage caused by flood, surface water, water which backs up through sewers or drains, earth movement, nuclear damage, war, etc. Section II coverages (personal liability and medical payments) do not apply to the operation, ownership, use, etc., of any aircraft, automobile, recreational motor vehicle, water craft powered by more than 50 horsepower motor; bodily injury or physical damage caused by an intentional act of the insured. It must be noted that these are a mere sample of property and perils not covered. A complete review of your policy is the only way to determine what property is covered and what perils are insured against. Also, there are specific limits of coverage on property insured under the homeowner’s policy such as money, securities, water craft, theft of jewelry, silverware, and/or guns.
What factors can affect homeowners insurance premiums?
› Home Features and Characteristics — Your home's age, type of structure, wiring, age and type of roof, garage, etc., can affect your homeowners insurance premium. Older homes can often cost more to insure, and those costs can differ depending on whether your home is brick, frame, stone or has synthetic siding.
› Location — Where your home is located can change your homeowners insurance premium. For instance, your home insurance rate can be affected if your home is in close proximity to a fire station; is exposed to extreme weather, such as hurricanes, tornadoes or earthquakes; or is in a neighborhood more prone to theft.
› Protective Devices — Burglar alarm systems, smoke detectors, fire extinguishers, sprinkler systems and dead bolt locks can lower your homeowners insurance premium.
› Personal Factors — What you do can affect your homeowners insurance premium, too. A good credit history also can lower what you pay for home insurance.
› Claims History — If you have a history of claims on a homeowners insurance policy, you may pay a higher premium.
During a storm, a tree from my neighbor’s yard fell and destroyed my fence. Does my homeowner’s policy pay for the damage or does my neighbor’s policy?
Generally, your own policy should cover the loss. Your insurance company may be able to recover the amount it pays you for the loss and your deductible from the homeowners insurance that your neighbor may have if the loss occurred as a result of your neighbor’s negligence.
