Frequently Asked Questions

Below are some of our frequently asked questions.  If you have any other questions or concerns, please feel free to contact us.

  1. What are the basic types of auto insurance coverage?
  2. What is the difference between uninsured and underinsured motorist coverages?
  3. Does property damage coverage fix my vehicle if the other driver is at fault and has no car insurance?
  4. What are the typical rating factors?
  5. The Basics Of Renters’ Insurance
  6. Doesn't my condo association carry enough insurance to take care of me?
  7. Why do I need Personal Liability coverage?
What are the basic types of auto insurance coverage?
The basic types of auto insurance coverages are:

1. bodily injury liability, which provides coverage for bodily injury claims from the people you might injure in an accident

2. property damage liability, which covers any property damages to third parties -- such as another person's car you damage -- which you cause or are responsible for

3. medical payments to the policy owner and other passengers in the policy owner’s car

4. uninsured and underinsured motorist coverage, which protects you when the negligent driver has no insurance or insufficient insurance (in most states, this covers only bodily injury losses -- though some states also include property damage losses)

5. physical damage covers damage to your car

a. collision, which covers losses to your car when you are involved in a collision

b. comprehensive, which covers most non-collision physical damage to your car (if your car is damaged in a storm, or a windshield breaks, for example).

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What is the difference between uninsured and underinsured motorist coverages?
Uninsured motorist coverage will usually reimburse you and anyone in your vehicle for any bodily injury and medical expense or death from an auto accident caused by:

1. a driver with no insurance

2. a hit-and-run driver

3. a driver of a stolen car

It does not cover property damage.

Underinsured coverage provides bodily injury coverage when the negligent driver has some insurance, but it is insufficient to cover your bills. Underinsured motorist coverage pays the balance -- up to the limit on your policy.

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Does property damage coverage fix my vehicle if the other driver is at fault and has no car insurance?
No. Collision insurance pays for damage to your car resulting from an auto accident. It does not matter who was at fault. If the other driver was at fault, your company may try to recover the amount they paid for your damages from the other driver or his insurance company.

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What are the typical rating factors?
In addition to your driving history, the following factors apply:

1. type of vehicle (model, year, and value): Statistics show that the accident rates are different for different cars. Some kinds of cars are also more expensive to repair.

2. how you use the vehicle (i.e., pleasure, work): Using your vehicle for work will probably increase your premium.

3. age, sex and marital status: Older drivers, female drivers and married drivers statistically tend to have better driving records. Therefore, they tend to have lower premiums.

4. where you live: Some states have higher accident rates than others. In particular, states with high population density tend to have more accidents. Other local factors, such as the type of insurance system in the state, also affect insurance rates.

5. prior insurance coverage: Being a new driver, or a driver with no previous history of insurance coverage, will probably mean higher rates

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The Basics Of Renters’ Insurance
Too many renters don’t give a thought to “homeowners insurance”. They’re renting after all and haven’t got anything to protect, right? Wrong. What happens when your TV, computer, utterly state-of-the-art audio system, or ipod are all ruined because the guy upstairs forgot to turn off his bathtub and it flooded you out? In many cases, the landlord’s homeowners’ insurance will cover the cost to replace the damage done to the home itself – but not to your ipod. Renter’s insurance may also pay for you to stay somewhere else while your apartment is being repaired due to a fire or flood and protects you from liability should someone sue you for injuries that occurred in your unit.

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Doesn't my condo association carry enough insurance to take care of me?

When you live in a condo or co-op apartment, you enjoy many of the advantages of home ownership, but you don't actually own the building that you live in. As a result, home insurance for condo and co-op owners is different from homeowners insurance. A specialized form of homeowners insurance, called HO-6 , addresses the needs of condo owners.

There is a master policy  held by the Condo Association or Co-op Board that generally covers the building and its common areas in case of covered losses. However, as a condo owner, you need insurance to protect your personal property from fire, lightning, explosion, storms, vandalism and theft and more. These are just a few of the named perils (specific risks) typically covered by an HO-6 policy.

These coverages protect your personal belongings in the event of loss.

As a condo owner, you also need to insure improvements you may have made to the structure of your unit, like private entry ways, garages, additions, balconies, and specialized fixtures. If these were not part of the original structure of your unit, then these improvements should be covered by your condo insurance policy to properly protect your investment.

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Why do I need Personal Liability coverage?

Whether you live in a house, a condo or an apartment, if someone is hurt or suffers a loss in your home you could be found personally liable. In other words, you're financially responsible for the expenses that may result.

  • It may be as simple as someone slipping in your home, in the entryway or on the stairs. Even a broken leg can cost thousands of dollars in medical expenses - and potentially more if lost wages are involved.
  • Have a dog? Dog bites occur all too often, and you will be responsible for pain and suffering, medical expenses, and potentially lost wages.
  • If the person injured decides to sue, can you cover the legal expenses? Do you really want to put your assets at risk?

Personal liability coverage is a standard part of most home insurance policies. A few extra dollars can go a long way to preventing financial disaster down the road.

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