Frequently Asked Questions
Q. What is fire legal coverage?
A. Fire legal coverage provides coverage if you rent a business space and are held responsible for fire damages to that rented space. It does not apply to all business risks.
Q. What is the difference between Replacement Cost (RC) and Actual Cash Value (ACV)?
A. Replacement Cost is the current cost to replace property. Actual Cash Value is the replacement cost less depreciation
Q. What does 80% co-insurance mean?
A. Insurance carriers require that an insured party insure at least 80% of the property’s value in order to collect a partial loss in full. This is the way the insurance company encourages all insureds to adequately insure their property in relation to other insureds.
Q. Does my policy cover physical damage to a vehicle I rent?
. This damage will be covered only if that type of coverage is purchased.
Q. Can other people drive my business vehicle?
A. Other people may drive your vehicle with your permission. It is important that they be listed on your policy if they are regular drivers of the vehicle.
Q. How does an audit work?
A. At the end of the policy term, the insurance company will review the policy and either charge or credit the policyholder based upon an audit of estimated figures. Examples of estimated auditable items include sales and payroll. Audits can be performed onsite by an auditor or via mail or telephone. A premium is charged for audit estimations.
Q. Why do I need certificates of insurance from sub-contractors?
A. An audit may require you to show proof that sub-contractors had their own insurance coverage. The sub-contractors’ certificates of insurance will prevent you from being charged for their exposure.
Q. What is General Liability?
A. General Liability provides coverage if you are liable for damages to other individuals arising from your premises, general operations (ongoing and after completion) and products manufactured or sold.
Q. What does Products/Completed Operations mean?
A. Products/Completed Operations refers to the liability coverage for damages caused by your operation or products after the point at which you no longer have control of them.
Q. What is Business Interruption/Extra Expense coverage?
A. Business Interruption/Extra Expense coverage provides coverage for income loss and the expense of establishing a temporary site during repairs due to damages related to a fire or compensable loss.
Q. What is the difference between “Named Insured”, “First Named Insured” and “Additional Insured?”
Q. When purchasing automobile insurance what should I consider?
Q. Does my insurance policy cover a friend if I loan him/her my car?
A. When you loan your car to a friend or an associate, he or she will be covered under your automobile insurance policy.
Q. What is collision physical damage coverage?
A. Collision is the loss you incur when your automobile collides with another vehicle or object like a telephone pole.
Q. What is comprehensive physical damage coverage?
A. Comprehensive provides coverage for direct physical damage losses you could incur to your car from something like a hailstorm.
Q. How can I lower my automobile insurance rates?
Q. What is homeowners insurance?
2) provides personal liability coverage to the insured.
Q. What do I need to know when purchasing homeowners insurance?
Select any additional endorsements you want to add to your policy. For example, do you want the personal property replacement cost endorsement?
Q. What is “actual cash value”?
A. When “actual cash value” is used in a policy, a policy owner is entitled to the depreciated value of the damaged property.
Q. What is replacement cost”?
A. When “replacement cost” coverage is used in a policy, a policy owner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices.
Q. Where and when is my personal property covered?
A. Coverage C of a homeowners policy provides named perils coverage. This applies to all your personal property (except property that is specifically excluded).
Q. Should I purchase earthquake coverage?
A. Direct damages due to earthquakes are not covered under the standard homeowners insurance policy. If you live in an area that is prone to earthquakes, you may want to consider adding an earthquake endorsement to your homeowners insurance policy. This endorsement will cover damages due to earthquakes, landslides, volcanic eruptions and other earth movements.
Q. Should I purchase flood coverage?
A. If your property lies in a flood plain as determined by US Government Flood Maps, ask your independent agent about a flood quote.
Q. How much life insurance should an individual own?
Q. What about purchasing life insurance on a spouse and on children?
A. In certain circumstances, it may be advisable to purchase life insurance on children; generally, however, such purchases should not be made in lieu of purchasing appropriate amounts of life insurance on the family breadwinner(s). It is of utmost importance that the income earning capacity of the primary breadwinner be fully protected, if possible, through the purchase of the required amount of life insurance before contemplating the purchase of life insurance on children or on a non-wage earning spouse. In a dual-earning household, it is important to protect the income earning capacity of both spouses. Life insurance on a non-wage earning spouse is often recommended for the purpose of paying for household services lost at this individual’s death.
Q. Should term insurance or cash value life insurance be purchased?
Q. How does mortgage protection term insurance differ from other types of term life insurance?
A. The face amount under mortgage protection term insurance decreases over time, consistent with the projected annual decreases in the outstanding balance of a mortgage loan. Mortgage protection policies are generally available to cover a range of mortgage repayment periods, e.g., 15, 20, 25 or 30 years. Although the face amount decreases over time, the premium is usually level in amount. Further, the premium payment period often is shorter than the maximum period of insurance coverage –for example, a 20-year mortgage protection policy might require that level premiums be paid over the first 17 years.
Q. Can an existing life insurance policy be used to provide for the repayment of an outstanding mortgage loan?
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*This is a generalized explanation; the exact wording of your policy may vary. If you have any questions, please consult your policy or contact us to discuss your unique circumstances.