Frequently Asked Questions

General

Commercial Insurance

Homeowner's

Auto



General

When I rent a vehicle under the business name am I covered for Liability and Physical damage coverage's? Do I have to pay the rental insurance cost?

You will need to make sure that your Commercial Automobile policy provides Hired and No owned Automobile coverage, for liability and physical damage coverage.  There is a cost associated with these coverage's . You will have a deductible on the physical damage coverage which will be the deductible limit on your owned commercial automobiles

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Commercial Insurance

I don't own a boiler at my business location, why do I need boiler and machinery coverage?

Even if you do not own a boiler you may need this coverage. The term boiler and machinery is being replaced with the term such as equipment breakdown and mechanical breakdown.  This insurance provides coverage against a systems accidental breakdown of boilers, machinery equipment including computer systems, telephones/communication systems. Coverage usually includes reimbursement for damage, expediting expense and business loss.

Homeowner's

What type of property can be insured against flood loss?

A building and its contents can be insured. Almost every type of walled and roofed building that is principally above ground can be insured.

What kind of property is not insurable under a Flood policy?

Buildings over water or principally below ground, gas and liquid storage tanks, piers, wharves, shrubbery, land, machinery and equipment in the open, motor vehicles, are not insurable.  Most contents and finishing material located in the basement or in the enclosures below the lowest elevated floor of an elevated post -Firm building is not covered.


Do I really need insurance for my home?

Insurance, any kind, is your protection against the uncertainties of day-to-day living. For most people, their home is their single most valuable possession – and their biggest investment. Homeowners insurance protects your investment as well as you, the members of your family and your household possessions. If you were to suddenly lose your home due to fire or a tornado or have the contents damaged or stolen, like most of us, you probably could not afford to replace everything all at once. And if somebody sued you for an injury or damage caused by you or your property, the cost of defending that suit could run into thousands of dollars just for legal fees - regardless of the outcome of the suit. All of these situations are covered by the homeowners package policy. And while it may be unpleasant to think about fire, theft, and other "uncertainties of life," let's face it, they are there and things happen. Yet another reason you need to carry homeowners insurance is that mortgage lenders require it. No mortgage company will lend the large amounts of money needed to finance homes at today's prices without requiring an insurance policy to protect that investment.

I know I have that homeowners policy in a drawer somewhere. What exactly does it cover?

"Exact" coverage is hard to define because there are different policies and about 900 insurance companies writing most of the property/casualty business in the United States. However, 80 percent of homeowners policies are based on a standard form and that is the one described in this guide. All homeowners policies cover two important areas: property and liability. Remember that you have to have protection against the proverbial thief in the night and the person who slips on your sidewalk by day. What this means in insurance terms is that your homeowners policy has two basic components. It covers your structures and possessions - property insurance - and it furnishes protection against personal liability. Personal liability, as its name implies, means you are legally obligated to pay money to another person for actions caused by you, your family, or your property. That liability extends to medical payments to others for injuries caused by you or your family.

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What kinds of perils am I protected against?

Remember that policies vary but homeowners insurance usually covers damage to both structures and personal property caused by:

  • Fire or lightning
  • Windstorm or hail
  • Explosions Riot or civil commotion
  • Aircraft
  • Vehicles
  • Smoke
  • Theft or vandalism (sometimes called malicious mischief)
  • Falling objects
  • Weight of ice, snow or sleet
  • Freezing of a plumbing, heating, air conditioning or other such household system

In fact, your coverage is most likely even more comprehensive than the above list. Many homeowners policies cover damage by "just about everything," unless the coverage is specifically excluded. In these cases, it is even more important to understand what is not covered.


Auto

Why is it so important to have good auto insurance coverage?

Your car has two unique qualities. First, it is probably one of the most expensive things you own. Insurance protects your investment and guarantees you a way of coping with the expense of accidents, vandalism or theft, as well as securing your financial responsibility to the bank or other institution lending the money to buy your vehicle. Second, when you drive, you are operating a powerful machine, weighing one ton or more and capable of moving at over 100 miles per hour. You are responsible for the safety of your passengers, your fellow drivers, other people's property, pedestrians and yourself. Insurance helps you live up to that responsibility by ensuring your ability to cover the costs of potential damages or injuries. You are also required to be financially responsible by state laws, which are best satisfied through your insurance coverage. In fact, in most states insurance is a prerequisite to registering your car. So if you want to drive your own vehicle, you must be insured.

What are the different types of policies and what do they cover?

Auto insurance is divided into several different types of coverage:
  • General liability covers damage you may cause to other people's property and injuries to the people themselves.
  • Collision covers damage to your own vehicle in an accident.
  • Comprehensive (i.e., fire, theft and other non-collision damage) covers fire damage to your vehicle, break-ins, vandalism or theft, as well as natural disasters (earthquake, hail, hurricane, flood, etc.--unless the vehicle is overturned, then it is considered a collision).
  • Medical payments insurance, usually in the range of $5,000 to $10,000, covers medical expenses for injuries. This "good-faith" coverage guarantees immediate medical payments for you, your passengers and other parties, regardless of who is at fault. It also covers you and members of your household in any accident involving an automobile, whether you are on foot, on a bicycle, in a friend's car, etc.
  • Uninsured motorist (UM) and underinsured motorist (UIM) coverage protects you if you are injured in an accident with others who themselves carry insufficient or no liability insurance.
  • Extra coverages include expenses for towing, labor, temporary replacement vehicles, etc. These are generally defined as add-ons or endorsements to your policy.