faq
Frequently Asked Questions
Auto Insurance Faq
With a 25/50/25 insurance policy, the first number represents the amount of bodily injury liability per person. This is the maximum amount your insurance company will pay out for each person that is injured in an at-fault accident. You will be responsible for any costs above $25,000 with this level of coverage.
The second number in the series represents the amount of bodily injury liability per accident. Bodily injury liability per accident is the maximum amount your insurance company will pay out for a single accident.
The third number is the amount of property damage liability. Having 25/50/25 insurance means your insurer will pay a maximum of $25,000 to cover damage to another driver’s vehicle or property. An example of damaged property in an accident may include a mailbox, fence or building.
Liability coverage helps cover damages you’re responsible for to another party because of an accident. That means it doesn’t cover damages to your property or your injuries. Your damages and injuries are protected under other coverages such as: Collision, Comprehensive, and Medical Payment.
Some common types of auto insurance coverage include Liability coverage, Collision coverage, Comprehensive coverage, Uninsured/Underinsured Motorist coverage, and Medical Payment coverage.
Liability coverage is the portion of auto insurance that pays for damages or injuries you cause to others in an accident. It typically includes property damage liability and bodily injury liability.
Collision coverage pays for damages to your own vehicle caused by a collision with another vehicle or object, regardless of fault.
Comprehensive coverage provides protection against damages to your vehicle caused by non-collision events, such as theft, vandalism, fire, or natural disasters.
Uninsured/Underinsured motorist coverage protects you if you’re involved in an accident with a driver who doesn’t have insurance or has insufficient coverage to pay for damages or injuries.
Medical payment coverage, also known as MedPay, is a type of auto insurance coverage that helps pay for medical expenses resulting from injuries sustained in a car accident, regardless of who is at fault. It typically covers expenses such as hospital bills, doctor visits, surgery, X-rays, and ambulance fees. MedPay is designed to provide quick and direct compensation for medical costs, regardless of the outcome of any legal proceedings related to the accident. It is an optional coverage that can be added to your auto insurance policy.
Auto insurance premiums are calculated based on various factors, including your age, your credit, driving history, location, type of vehicle, coverage limits, and deductible.
A deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in. Higher deductibles often result in lower premium costs.
An insurance claim is a request you make to your insurance company for payment or coverage of a loss or damage covered by your auto insurance policy.
To file an auto insurance claim, you typically need to contact your insurance company, provide details of the incident, and submit any required documentation, such as police reports or repair estimates. You can also contact us for assistance.
A No-Claims Discount is a discount offered by insurance companies to policyholders who have not made any claims during a specific period. It rewards safe driving and can result in lower premiums.
Auto insurance coverage for rental cars varies depending on your policy. Some policies may provide coverage for rental cars, while others may require additional coverage or offer it as an optional add-on.
Comprehensive coverage protects against non-collision events, such as theft or natural disasters, while collision coverage protects against damages caused by collisions with other vehicles or objects.
If you frequently drive vehicles that you don’t own, it’s advisable to have non-owner car insurance, which provides liability coverage when you’re driving someone else’s vehicle.
Getting auto insurance with a suspended license may be challenging, as insurance companies typically require a valid driver’s license. However, some companies may offer coverage options for drivers with suspended licenses.
Standard auto insurance policies may not automatically cover aftermarket modifications or accessories added to your vehicle. It’s important to check with your insurance provider and consider adding additional coverage if needed.
A salvage title is a title given to a vehicle that has been declared a total loss by an insurance company due to severe damage or theft. Salvage titles typically have significantly reduced value and may be challenging to insure.
Your credit score may be a factor in determining your auto insurance premium. A higher credit score may result in lower premiums, as it is seen as an indicator of responsible financial behavior.
A non-renewal notice is a notification sent by an insurance company to inform policyholders that their policy will not be renewed after its expiration date. Non-renewal may occur due to various reasons, such as claims history or changes in underwriting guidelines.
Standard auto insurance policies typically do not cover personal belongings stolen from your car. However, your homeowners or renters insurance policy may provide coverage for such losses.
Telematics or usage-based insurance programs use technology, such as a tracking device or mobile app, to monitor your driving habits. Your premium may be adjusted based on factors such as mileage, speed, braking patterns, and time of day.
Comprehensive coverage in auto insurance typically covers damages caused by natural disasters, such as floods, hurricanes, or earthquakes. However, it’s important to review your policy or contact your insurance provider to understand your specific coverage.
An insurance score is a numerical rating used by insurance companies to assess the risk associated with insuring an individual or vehicle. It is based on various factors, including credit history, claims history, and driving record.
Home Insurance FAQ
Home insurance typically covers the structure of your home, personal belongings, liability for injuries or damage caused to others, and additional living expenses if your home becomes uninhabitable.
Dwelling coverage is the part of your home insurance policy that protects the physical structure of your house, including walls, roof, and foundation.
Personal Property coverage protects your belongings, such as furniture, appliances, and clothing, from damage or theft.
Home insurance policies may cover certain natural disasters such as fire, lightning, windstorm, hail, or winter storms. However, coverage for floods or earthquakes may require additional policies or endorsements.
Liability coverage in home insurance provides financial protection if someone is injured on your property or if you accidentally cause damage to someone else’s property.
Home insurance premiums are calculated based on factors such as the location of your home, its age and construction, the value of your belongings, your claims history, and the coverage limits you choose.
An insurance deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in. Choosing a higher deductible can lower your premium.
Yes, if you are a renter, you can get renters insurance, which provides coverage for your personal belongings and liability.
Replacement cost coverage pays for the cost of replacing damaged or destroyed property with new items of similar kind and quality. Actual cash value coverage takes into account depreciation and pays the current value of the property.
An Insurance Rider, also known as an Endorsement, is an addition to your home insurance policy that modifies or expands the coverage. It can be used to cover specific high-value items or add extra coverage for certain perils.
Home insurance policies typically have limited coverage for business-related property and liability. If you run a home-based business, you may need additional coverage, such as a business owner’s policy or commercial insurance.
Loss of use coverage, also known as additional living expenses coverage, helps pay for temporary living expenses if your home becomes uninhabitable due to a covered loss.
Home insurance may cover certain types of water damage, such as sudden and accidental pipe bursts or water damage from a roof leak. However, coverage for flooding or water seepage may require additional policies or endorsements.
An insurance adjuster is a professional employed by the insurance company to assess and investigate insurance claims. They determine the extent of the damage or loss and help determine the appropriate claim settlement.
Named perils coverage specifies the specific perils or risks that are covered by your policy. All-risk coverage, also known as Open Perils coverage, provides coverage for all risks except those specifically excluded in the policy.
A Vacant home is a property that is unoccupied and devoid of personal belongings. Vacant homes may require special insurance coverage, as they may have increased risks of vandalism, theft, or damage.
Home insurance typically does not cover termite damage, as it is considered a preventable maintenance issue. Regular termite inspections and preventive measures are important for termite protection.
Yes, there are specific insurance policies available for properties under construction or renovation, such as builder’s risk insurance. This coverage protects against risks during the construction process.
Market value refers to the current value of your home in the real estate market. Replacement cost is the estimated cost to rebuild or repair your home with similar materials and quality.
An insurance binder is a temporary document that provides proof of insurance coverage until the official policy is issued. It outlines the basic terms and conditions of the coverage.
Standard home insurance policies typically do not cover damage caused by earthquakes. Separate earthquake insurance policies or endorsements may be available to provide coverage for this specific peril.
Ordinance or law coverage provides coverage for increased costs associated with complying with building codes or laws when repairing or rebuilding a home after a covered loss.
An insurance declaration page is a summary of your insurance policy that includes important details such as coverage limits, deductibles, premium amounts, and the insured property’s description.
A home warranty is a service contract that provides coverage for the repair or replacement of major home systems and appliances due to normal wear and tear. It is different from home insurance, which covers sudden and accidental damage or loss due to covered perils.
Commercial Insurance FAQ
There are several types of commercial insurance available, including general liability insurance, property insurance, professional liability insurance, workers’ compensation insurance, and commercial auto insurance.
General liability insurance provides coverage for third-party injuries, property damage, or advertising claims. It helps protect businesses from potential lawsuits and liability claims.
Property insurance provides coverage for physical assets such as buildings, equipment, inventory, and furniture in case of damage or loss due to fire, theft, vandalism, or other covered perils.
Professional liability insurance, also known as errors and omissions insurance, provides coverage for professional service providers against claims of negligence, errors, or omissions in their work.
Workers’ compensation insurance provides coverage for employees who suffer work-related injuries or illnesses. It helps cover medical expenses, lost wages, and rehabilitation costs.
Commercial auto insurance provides coverage for vehicles used for business purposes, such as company cars, delivery trucks, or work vehicles. It helps protect against accidents, injuries, and property damage.
The requirement for business insurance varies depending on the type of business and local regulations. Certain types of insurance, such as workers’ compensation, may be mandatory.
The cost of business insurance is determined by factors such as the type of business, size, location, industry, revenue, claims history, coverage limits, and deductibles.
Yes, commercial insurance coverage can often be customized to meet the specific needs of a business. Insurance providers offer flexible options and endorsements to tailor coverage.
Yes, many insurance providers offer package policies that allow businesses to bundle different types of coverage together for convenience and potential cost savings.
Business interruption insurance provides coverage for lost income and ongoing expenses if a business is temporarily unable to operate due to a covered event, such as fire or natural disaster.
Cyber liability insurance can provide coverage for losses and liabilities arising from cyber attacks, data breaches, or other cyber-related incidents. It can help cover costs such as legal fees, customer notification, and data recovery.
Commercial insurance may provide coverage for legal expenses associated with liability claims, lawsuits, or other covered events.
Yes, there are specific insurance policies available for home-based businesses. They provide coverage for business assets, liability, and potential business-related risks.
Directors and officers insurance provides coverage for the personal liability of directors and officers of a company. It protects against claims related to alleged wrongful acts or decisions made in their roles.
Yes, startups can obtain business insurance coverage tailored to their specific needs. Insurance providers offer policies designed for businesses in their early stages.
A certificate of insurance is a document that provides evidence of insurance coverage. It outlines the types and limits of insurance held by a business and is often requested by clients or business partners.
Yes, most commercial insurance policies allow for the addition of additional insured parties. This can be done by endorsement or by issuing a separate certificate of insurance.
Loss of income due to power outages may be covered under certain commercial insurance policies if the power outage is caused by a covered peril, such as a storm or equipment failure.
Loss of income due to government-mandated closures is typically not covered under standard commercial insurance policies. However, specific coverage options may be available, such as business interruption insurance with civil authority coverage.
A retroactive date in professional liability insurance is the specific date from which coverage starts for claims arising from past acts or omissions. Claims made for incidents that occurred before the retroactive date are not covered.
Occurrence-based liability insurance covers claims that arise from incidents that occur during the policy period, regardless of when the claim is filed. Claims-made liability insurance covers claims that are made and reported during the policy period.
Yes, nonprofit organizations can obtain specific insurance coverage tailored to their needs. Nonprofit insurance policies can provide coverage for liability, property, directors and officers, and other relevant risks.
Equipment breakdown insurance, also known as boiler and machinery insurance, can provide coverage for losses resulting from the breakdown of equipment essential to business operations.
Workers’ compensation insurance provides coverage for employee injuries or illnesses that occur in the course of employment. It can help cover medical expenses, lost wages, and rehabilitation costs.
Employment practices liability insurance (EPLI) can provide coverage for losses resulting from claims of employee discrimination, harassment, wrongful termination, or other employment-related issues.
Commercial insurance generally does not cover losses directly caused by employee strikes or labor disputes. However, certain policies may offer coverage for associated perils, such as property damage or liability claims that may arise during such events.