faq

Frequently Asked Questions

1. How much homeowners insurance do I need

The higher your coverage, the less you will have to pay out of your own pocket to replace property that is destroyed or stolen. You also need enough liability coverage to protect yourself from lawsuits if someone is injured while on your property. Your insurance agent will be able to accurately predict how much coverage you need and you can always contact multiple agents to get an average of what the best amount of coverage would be for your home.

2. Is Flood damage coverage under my home insurance policy

Flood damage is not covered by most homeowner policies. A separate policy can be purchased through the National Flood Insurance Program insurance company, Ask our Agents for help or a Flood quote

3. Does my Homeowners insurance policy pay for seepage, dry rot, vermin , and wear and tear

Generally, insurance policies exclude damage caused by seepage, dry rot, or vermin (animal pests), wear and tear due to age This is because these problems are usually the result of poor maintenance, not a "sudden and accidental" event. It is the homeowner responsibility to keep the home maintenance up to date.

4. Why did not my insurance company renew my home insurance policy

Insurance companies may cancel your policy if your property has deteriorated to a point that it no longer meets the company's underwriting standards. Insurance companies may also choose not to renew your policy if you have filed more claims than the average person. The average homeowner files a claim once every nine years.

5. What are Car Financial Responsibility Laws?

This is the state law that says you have to prove that you are financially able to pay for anything you may be responsible for while driving your car.

6. What Happens if I Choose Not to Purchase Car Insurance and Still Drive My Car?

That depends on the state you live in. Most states have stringent laws about having car insurance and if you don't choose to follow these laws by not purchasing car insurance, there can be tough penalties and fines.

7. What is the difference between comprehensive and collision coverage?

Collision coverage is when you have a collision with something like another car. Comprehensive coverage is when it is anything else other than a collision such as fire or theft. Most people would have both coverage's when using the car on a regular basis. Sometimes when one is just storing a car they may only keep comprehensive coverage since they are not using it on the road therefore, it is unlikely to be in a collision.

8. Why does my driving record affect my insurance premium?

The premium you pay is a direct reflection of your driving record for the past three to five years depending on the insurance company. Insurance companies order driving records from the DMV of your residence state and from other states where you've been licensed. Statistics show that drivers with tickets and accidents are more likely to have accidents than drivers with clean records.

9. Should I buy term life insurance or whole life cash value policy?

There are many life insurance options available. Who should choose term? Which one has a lower cost? Can I build cash value with my life insurance that I can borrow against?
yes, depend how much cash you have saved in the policy.

11. What is Homeowners Insurance?

Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.

Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.

Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners' responsibility.

12. What are different types on Homeowners Insurance?

Yes. A person who owns his or her home would have a different policy from someone who rents. Policies also differ on the amount of insurance coverage provided.

The different types of homeowners policies are fairly standard throughout the country. However, individual states and companies may offer policies that are slightly different or go by other names such as “standard” or “deluxe”. The one exception is the state of Texas, where policies vary somewhat from policies in other states. The Texas Insurance Department has detailed information on its various homeowners policies.

The chart below lists the disasters covered in each of the following types of policies:If you own your homeIf you own the home you live in, you have several policies to choose from. The most popular policy is the HO-3, which provides the broadest coverage. Owners of multi-family homes generally purchase an HO-3 with an endorsement to cover the risks associated with having renters live in their homes.

HO-1: Limited coverage policy
This “bare bones” policy covers you against the first 10 disasters. It's no longer available in most states.

HO-2: Basic policy
A basic policy provides protection against all 16 disasters. There is a version of HO-2 designed for mobile homes.

HO-3: The most popular policy
This “special” policy protects your home from all perils except those specifically excluded. (Click on the link below for a sample HO-3 form; you will need Acrobat which you can download, free of charge, from the Adobe Web site. Paper: Homeowners 3 - Special Form (PDF)

HO-8: Older home
Designed for older homes, this policy usually reimburses you for damage on an actual cash value basis which means replacement cost less depreciation. Full replacement cost policies may not be available for some older homes.

10. What is Auto Insurance?

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage:

1) Property coverage pays for damage to or theft of your car.
2) Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
3) Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
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An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements. Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium.

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