FAQs

FAQsfaqs01

Q?

INSURANCE – Why do I need to buy insurance?

A.

- Claims activity including such costs as medical care, auto body repair, construction, legal defense, jury awards, claims adjustment, and insurance fraud.

- Overhead including rent, utilities, employee salaries and benefits, office supplies, equipment, and furniture.

- Investment income.

- Provides for the health care of you and your family through systematic payments.

- Allows you to save for retirement while deferring interest payments to a time when your income is lower, thus reducing your tax payments.

- Allows you to remain financially solvent when you're ill and can't work.

- What factors affect the insurance premiums I pay?

- Protects your assets against attachment as a result of a court award.

- Provides for cost of defense when you are sued.

- Allows you to purchase such high value items as a car or a home by insuring the collateral on behalf of the financial institution that lent you the money.

- Provides financial security for your family in the event of your death.

Q?

AUTO INSURANCE – How does where I live affect my premium?

A.

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).

Q?

AUTO INSURANCE – Do all states require some kind of Liability insurance?

A.

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.

Q?

HOMEOWNERS INSURANCE – Who decides on the type of insurance, the mortgage company or me?

A.

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.

Q?

HOMEOWNERS INSURANCE – What exactly does a Homeowners policy cover?

A.

“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.

Q?

BUSINESS INSURANCE – I’m just getting my business started. Do I need insurance immediately?

A.

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.

Q?

BUSINESS INSURANCE – Do I need workers compensation insurance?

A.

Yes. Employers have a legal responsibility to their employees to make the workplace safe. However, accidents can happen even when every reasonable safety measure has been taken. You'll need workers compensation insurance when those accidents happen.