- General Insurance Questions
- Auto Insurance Questions
- Homeowners Insurance Questions
- Life Insurance Questions
- Renters Insurance Questions
- Umbrella Insurance Questions
Q: What kinds of questions should I be expected to answer when I am applying for an insurance policy? Why do insurers need so much information?
Q: What are the advantages to using an agent to purchase insurance?
Q: I have an older car whose current market value is very low — do I really need to purchase automobile insurance?
Q: What is the difference between collision physical damage coverage and comprehensive physical damage coverage?
Q: What factors can affect the cost of my automobile insurance?
Q: What are some practical things I can do to lower the cost of my homeowners insurance?
Q: What does homeowners insurance cover?
Q: What is the difference between “actual cash value” and “replacement cost”?
Q: What factors should I consider when purchasing homeowners insurance?
A: There are a number of factors you should consider when purchasing any product or service, and insurance is no different. Here is a checklist of things you should consider when you purchase homeowners insurance. Determine the amount and type of insurance that you need. The coverage limit of your house should equal 100% of its replacement cost. If your policy limit is less than 80% of the replacement cost of your home, any payment from your insurance company will be less than the full cost to replace your home — you’ll have to pay the rest out of your own pocket. Also, decide if the personal property and personal liability limits are adequate for your needs. Determine which, if any, additional endorsements you want to add to your policy. For example, do you want the personal property replacement cost endorsement, an earthquake endorsement or a jewelry endorsement?Once you have decided on the coverage you want in your homeowners insurance policy, consult us. We will be able to help you determine if there are any gaps in coverage you might not have been aware of, explain the details of the policy’s exclusions and limitations as well as recommend an insurance company that will live up to your expectations.
Q: What are the policy limits (i.e., coverage limits) in the standard homeowners policy?
Q: Where and when is my personal property covered?
Q: Do I need earthquake coverage? How can I get it?
Q: How much life insurance should an individual own?
Whether or not you are married and, if so, what is your spouse’s earning capacity
The number of individuals who are financially dependent upon you
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.)
Calculating the correct amount of life insurance to buy is not as simple as it appears. We recommend contacting us for help determining the right amount of coverage. As independent agents, we are unbiased advisors that will help you avoid buying too much, show you appropriate optional coverages for your need and recommend a company that will best serve your interests.
Q: What about purchasing life insurance on a spouse and on children?
Q: Should term insurance or cash value life insurance be purchased?
A: This is a difficult question — one whose answer will vary depending on your personal circumstances.First, recognize that in any life insurance purchasing decision, two questions must be answered:”How much life insurance should I buy?”“What type of life insurance policy should I buy?”
The first question should always be resolved first. For example, the amount of life insurance that you need may be so large that the only way you can be afford is through the purchase of term insurance, since term insurance has a lower premium.
If your ability to pay life insurance premiums is such that you can afford the desired amount of life insurance under either type of policy, it is then appropriate to consider the second question — what type of policy to buy. Important factors affecting this decision include your income tax bracket, whether the need for life insurance is short-term or long-term (e.g., 20 years or longer), and the rate of return on alternative investments possessing similar risk.
Q: How does mortgage protection term insurance differ from other types of term life insurance?
Q: Can an existing life insurance policy be used to provide for the repayment of an outstanding mortgage loan?
Q: Why would I want to buy renters insurance?
Q: How does a renters policy protect my personal property?
A: A renters policy provides named perils coverage. This means that the policy only pays when your property is damaged or destroyed by any of the ways specifically described in the policy. These usually include:
- Fire or lightning
- Windstorm or hail
- Vandalism or malicious mischief
- Falling objects
- Weight of ice, snow, or sleet
- Accidental discharge or overflow of water or steam
- Sudden and accidental damage from artificially generated electrical current
- Volcanic eruptions (but this doesn’t include earthquake or tremors)
- Renters coverage applies to your personal property no matter where you are in the world. This means you’re covered when you are on vacation as well as at home.
Q: Why do some apartment complexes require tenants to have renters insurance?
Q: What if I share my apartment with a roommate? Do we both need to have renters insurance?
Q: What is a personal umbrella liability policy?
Q: How do I know if I need a personal umbrella liability policy?