- Auto Insurance
- Homeowners Insurance
- Health & Life Insurance
- Renter's Insurance
- Business Insurance
- Student Insurance
How does where I live affect my premium?
Where you keep your car directly affects your chances of having an accident or becoming a victim of theft or vandalism. The likelihood of encountering these problems increases in larger, more densely populated cities, while such incidents remain relatively low in rural areas.
Additionally, the time and efficiency of police response and law enforcement, local road and traffic conditions, and the quality of local medical services can affect regional insurance rates. Some insurers 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?
No. Although not every state requires Auto insurance, some have “financial responsibility” laws mandating all drivers to be able to pay for any damage or injury they might cause. However, Liability insurance is still the best way for you to meet your state's financial responsibility requirements.
By law, all states offer UM and UIM policies, including no-fault states. In fact, some states require all motorists to carry this coverage in order to gain protection from inadequate insurance coverage of other drivers.
How do I keep my insurance company from canceling my policy?
Besides maintaining a clean driving record, consider investing in special safety and security features for your car. If you've been in an accident, consider taking a defensive driving course.
What happens when I loan my car to someone? Is that person covered by my policy? Am I still covered?
Yes. Liability and coverage for Physical Damage (i.e. Comprehensive and Collision) always follow your car. Plus, if the driver of your car is insured, his/her policy will also be available to cover the cost of damages and injuries.
The same rules apply when you borrow someone else's vehicle; your own insurance follows you no matter whose car you're driving. But the vehicle owner's policy is the key coverage in the event of an accident.
Am I 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?
Usually, insurers that refuse to cover a claim have a strong legal reason for doing so — even if you disagree. First, contact us if you feel you're being treated unfairly. Your agent is your strongest advocate in insurance matters. But if it's a legal problem, you might have to hire a lawyer.
Who decides on the type of insurance, the mortgage company or me?
You do. The mortgage company collects a set amount from you each month in order to protect their investment. This money is put in escrow and covers your insurance and taxes. However, the policy is still yours and you might select the insurance you feel offers the best coverage at the best rates.
What exactly does a Homeowners policy cover?
“Exact” coverage is impossible to define because there are different policies and about 900 insurance companies writing Property/Casualty business in the United States. However, 80% of Homeowners policies are based on a standard form. All Homeowners policies cover two important areas: Property and Liability.
Property insurance covers your structures and possessions. Personal Liability, as its name implies, means you're 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.
Are floods, earthquakes, and other natural disasters covered?
Most catastrophes are covered. Flood and earthquake damage, however, are not covered by a standard policy and both perils are more common than many people realize. We can advise you on such normally excluded conditions as floods and earthquakes.
Are there exclusions I should know about?
Exclusions listed and defined in your policy might include neglect, intentional loss, “earth movement,” general power failure, and even 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.
One other exclusion that can be costly is the Ordinance or Law exclusion. Building codes established by governmental bodies that drive up the cost of rebuilding or repairing after a loss occurs might not be covered by your insurance policy. Thus, if you discover when replacing damaged property that current law demands higher grade or more expensive materials than those you're replacing, the new materials might not be covered fully.
How Much Insurance is Enough - Life
Life insurance is a crucial step in planning for your future. Not only can life insurance fulfill promises made to your family if you are no longer around, there are several life insurance policies that provide benefits while you are living.
The need for life insurance is dependent on your own personal and financial needs. We can assist you in determining what type and amount of life insurance is appropriate for you.
Generally, you should consider life insurance if:
- You have a spouse
- You have dependent children
- You have an aging parent or a physically challenged relative who depends on you for support
- Your retirement savings are not enough to insure your spouse's future against a rising cost of living
- You have a sizable estate
- You own a business
There are benefits of life insurance other than providing for your loved ones in case something happens to you:
- The cash value earned and borrowed from a permanent life insurance policy can be used to help with large expenses, such as a college education or down payment on a home.
- The growth of a cash-value policy is tax-deferred -- you do not pay taxes on the cash value accumulation until you withdraw funds from the policy.
- Life insurance can be used to cover funeral expenses and pay estate taxes -- consult your tax advisor agent for more information.
Life Changes - So Should Your Policy
Your need for life insurance is dependent on your personal and financial needs. As your life changes, your life insurance coverage may need to change as well to adapt to your current needs. Some life changes that may require a policy "tune-up" include:
- You recently married or divorced
- You have a new child or grandchild
- Your health or your spouse's health has deteriorated
- You are providing care or financial assistance to a parent
- Your child or grandchild requires assistance or long-term care
- You recently purchased a new home
- You are planning for a child or grandchild's education
- You are concerned about retirement income
- You have refinanced your home mortgage in the past six months
- You or your spouse recently received an inheritance
How much life insurance should I purchase?
As a "rule of thumb" you should purchase an amount of life insurance equal to 6 to 8 times the annual earnings. However, many factors should be taken into account in determining a more precise estimate of the amount of life insurance needed. Important Factors include:
- Income sources (and amounts) other than salary/earnings
- Whether or not the individual is married and, if so, the spouse's earning capacity
- The number of individuals who are financially dependent on the insured
- The amount of death benefits payable from Social Security and from an employer sponsored life insurance plan
- Whether any special life insurance needs exist (e.g. mortgage repayment, education fund, estate planning need) etc.
It is recommended that a person's financial professional be contacted for a precise calculation of how much life insurance is needed.
How do I know which is the right type of life insurance?
The answer will vary depending on your circumstances, need for the coverage, timing of the purchase and how much you are willing or able to spend. The best way to determine the right policy is to sit down with a qualified insurance professional to review the key points of your particular situation. This can be done through a very short (30 minutes or less) interview to determine your needs.
My mortgage company says I should buy life insurance from them, what is that about?
Most likely your mortgage company is offering something called "mortgage protection life insurance" or "decreasing mortgage protection" or a similar title. This sort of protection is a basic term life insurance policy that usually has a level premium, but the death benefit pays off your mortgage loan at your death. This level premium may or may not reflect the decreasing death benefit. What that means is that you will be paying the same premium each year for a death benefit that is decreasing over time (as your mortgage decreases with payments). This is the case with any sort of "credit life insurance", insurance taken out in conjunction with an installment loan. There may be better alternatives. You should talk to your insurance professional before purchasing any type of coverage to see what other alternatives are available.
What if I already have life insurance coverage through my employer?
That's great, and it's wonderful that you are fortunate enough to have an employer that recognizes the value of life insurance coverage for you and your family. Be sure to find out from your employer if this coverage is 'portable', meaning you can take your policy with you when you leave the company or become disabled. Not all policies are portable. When talking to your insurance professional, be sure that he or she knows you have this type of coverage so that can be factored into any determination of your additional needs.
Why should I purchase life insurance coverage on my children or my spouse?
Your priority is to provide for your family. This should be your priority when considering life insurance as well.
You must have the means to take care of your financial obligations, as well as providing care for your children should your homemaker-spouse die. The opportune time to buy life insurance for your children is when they are young and the rates are low. This enables them to continue the coverage when they are grown with financial obligations of their own. This also protects their "insurability", should they develop any sort of health problem later in life. There are many types of policies that can be made into "family plans" at a lower cost than separate coverages for each individual. Talk to your insurance professional to determine your needs.
How expensive is renters insurance?
Renters insurance is typically available for as little as $100 a year.
Generally, no. The property owner's insurance covers the building itself and seldom a tenant's possessions or liability. Clarify this with your landlord before signing a lease.
I'm just getting my business started. Do I need insurance immediately?
Yes. Your chance of suffering a loss begins with the first day of business. If you suffer a loss and have no insurance or have improper or insufficient coverage, your insurance agent can do little, if anything, to help you.
Also, many states and local jurisdictions require businesses to have insurance to begin operating. And if you rent space for your business, your landlord probably requires you to obtain adequate insurance.
I don't have any major business assets. Why do I need insurance?
Every business has some property. When you think about it, your business is your property. Just like your home and your car, your business needs to be protected from loss, damage, and liability. In addition, your business is your source of income, so you need protection from the potential loss of that income.
Does insurance coverage vary for different businesses?
It can. Many small businesses opt for package policies that cover the major Property and Liability exposures as well as for a loss of income. A common package policy used by many small businesses is called the Business Owners Policy (BOP).
Generally, BOPs provide more complete coverage at a lower price than separate policies for each type of insurance needed. We can help you decide which policy or policies are right for your business. You can also purchase additional coverage for perils or conditions otherwise excluded (e.g., flood protection) as endorsements to a standard policy or as a separate, second policy called a Difference in Conditions (DIC) policy.
We can advise you of the best policy (or policies) to protect you and your business.
I'm a college student. Am I still covered by my parents' policies?
It depends on the policy and its terms. For example, most Health insurance policies cover insured's' children up to age 18, or up to 22 if the child continues as a full-time student. If you’re over 18 and not a full-time student, you’will need your own Health insurance policy.
What kinds of risks do college students face?
College students face many new risks as they head off to school: theft of personal property, auto accidents due to driving long distances, and risks related to attending and giving parties.
How extensive are these risks?
College and university campuses are not immune to property crime. A 1995 FBI study reported that there were more than 100,000 property crimes on college nationwide, including burglary, theft, motor vehicle theft, and arson. Thieves took an average of $1,251 of property per offense that same year.
At least one in 10 college students revealed that they had caused an auto accident in the last two years. One in four had a speeding ticket or other moving violation. These and other offenses contribute to higher Auto insurance premiums for students.
