What are "insurance policy endorsements"?
What are some examples of insurance policy endorsements?
There are many examples of insurance policy endorsements. One would be if you had a mink fur coat coat for instance. If your house were to burn down and you were to lose your personal property, the insurer would assume you may need a winter coat or perhaps a summer jacket. They're not going to assume you need a mink fur coat, so you need to be very upfront with your insurance company about that kind of item and any kind of specialized article of clothing, a piece of jewelry that is out of the ordinary, some collectibles, such as stamps, baseball cards, or a piece of fine art, you want to identify those, you want to have them independently appraised and you want to have them included as endorsements in your homeowner's policy so if the worst happens or if any of those items are damaged or lost, at least there won't be any dispute that they were covered, what their value is, and at least you'll get some monetary compensation for them, although some of these items might not ever be able to be replaced.
What does "scheduled personal property" mean?
Scheduled personal property is property that is out of the ordinary. When you lose property under homeowner's policy, it is assumed that you are going to have a bed, a couch, a television, a kitchen table, etc. If you have a piece of property that is out of the ordinary - a valuable painting, a wine collection, a baseball card collection, a mink coat, a irreplaceable piece of jewelry -these are things that need to be identified before hand when you talk to your insurance agent and buy coverage. Most likely they are going to ask you to get an independent appraisal, so that the value can be objectively set. That possession will be listed within the insurance policy as a scheduled endorsement. If there should be a loss, there won't be any question that these items are in fact covered under the insurance policy, and at least the policy holder can get some monetary compensation for the loss.
Will my homeowner's insurance cover losses due to theft?
Homeowner's insurance generally will cover you if there's any sort of a burglary in your home and pieces are lost. There might be an insurance deductible involved. However, you do need to keep in mind that if you have any super-valuable items that are out of the ordinary -- baseball card collections, a very valuable piece of art, a fur coat, for example -- you want to make sure your insurance agent and your insurer know that up front, so that those things are identified, independently appraised and added as endorsements to the insurance policy. If those items are stolen, you can be compensated as well.
Will my homeowner's insurance cover injuries sustained by guests in my house?
Actually, under the liability portion of a homeowner's policy, those types of losses are covered. They are, however, only covered to a point. There's usually a limit of liability on homeowners' policies, and they can be surprisingly low. They'll handle routine slips and falls and things of that nature. But if you do own your own home, I would suggest that you seriously consider adding on 'umbrella liability', which is a policy that covers you for losses above and beyond what the homeowner's policy will. In case someone is injured, slipping on ice in your driveway, falling down your stairs, tripping over your dog in the yard or breaking a leg you want to make sure that if you are sued either for personal injury or some sort of property loss, that you have sufficient coverage so that you don't have to pay it out of your own assets.
Will my homeowner's insurance cover a dog bite?
Your homeowner's insurance should cover a dog bite. However, I would strongly recommend that when you buy homeowner's insurance, you do mention to the insurance agent that you have a dog just to make sure that there are no misunderstandings and that the policy for some reason doesn't exclude domestic pets. You want to make sure that your insurance agent has checked with the carrier, that they are aware you do have a pet and that those types of losses are covered. Dogs bites should be covered.
Will my homeowner's insurance cover my property when I travel?
Homeowner's insurance will cover your property when you travel, to a limited extent, and it really does depend on the policy. When you do travel, some items, if you lose them or they're stolen, might be covered under your homeowner's policy. That's a very important question to ask of your insurance agent or your broker. They can check with the insurer and look at the homeowner's insurance policy and see if you are covered. If there's any concern about this all, you might want to consider adding on a travel insurance policy, which will cover you in case you can't make the trip, and if you do lose property en route, will reimburse you up to the policy limits.
Why do I hear so much about insurance and mold?
Mold has been featured a lot in the news of late. There were major reports on houses that had been severley affected by mold on major networks and newspapers across the country. It has been a very hot topic. But it is a maintenance issue that is generally not covered under standard homeowner's insurance. Mold is the type of thing people need to be vigilant about. If there has been any water damage in their home, make sure there is not any subsequent mold developing, keep an eye out for those types of things. Homeowner's policies are really meant to cover more sudden, catastrophic loses such as a hurricane, a fire, things of that nature. It is not designed to cover gradual, creeping losses like mold, dry rot, vermin or rodent infestation, etcetera. These are all things that you should go over with your insurance company. These types of cover might be available if you negotiate and ask about them. It might require an extra premium, but it never hurts to ask.
What's the difference between "replacement cost" and "actual cash value"?
Replacement cost and actual cash value are two very different things. If you have a home owners policy, and your home burns to the ground, you want it rebuilt. If you have an actual cash value policy, essentially, you are only insured for the value of the home minus any depreciation over the years. So if you have sort of a ramshackle home, on a piece of property that is really only worth 35,000 dollars, that is what the insurance company is going to pay you. Unfortunately, to rebuild your home may cost 100,000, 200,000 dollars. In other words, it may cost a lot more to replace your home than the home is actually valued at, if you had to rebuild it from scratch. So we always recommend that people should get replacement cost value because in that sense the insurer, up to the limit of the policy, is guaranteeing that they are going to pay what it takes to replace your home, as opposed to just reimburse you for its value.
Why won't my insurance company renew my policy?
There are a variety of factors that goes into an insurance company's decision not to renew, and people should understand it's not necessarily that they did anything wrong. There are situations where people have repeated losses, whether there's been a number of fires on their property, whether there's been a number of people who have been injured. So if you have a bad loss history and a lot of claims, there's a chance the insurer may say, well, I can't charge enough to make a profit on this policy, and I'm going to walk away. However there are situations, for instance, what's going on now on Long Island, in New York, where certain insurers are overexposed. They have too much market share on the island and there's a lot of talk these days about hurricanes becoming more frequent and more severe, and about how Long Island is due for another monster hurricane at some point. So the insurers, in that case, are concerned that if a major catastrophe hits, I've insured too many homes in that exposed area, so I'm going to cut back by not renewing a certain percentage of the homes. So in that case they may not renew you. It has nothing to do with you doing anything wrong or being a bad risk. It's just that I insure forty percent of this market, and I've got to reduce this to thirty percent. That means I've got to not renew two hundred homes.
What does "loss of use" coverage mean?
Loss of use coverage is very important, and it is something that is frequently overlooked when people seek out insurance. It's something they don't even know they have. For example, if your home cannot be occupied because you've had a fire, or because the roof was blown off in a hurricane, where are you going to live in the interim? You might move in with family if you are lucky, but odds are you might have to go into a hotel for a while. You might even have to rent a house if there was significant enough damage so that the replacement of the home is going to take months and not days. If you have loss of use coverage, the insurer will pay for your additional living expenses. They will pay to put you up in another property, either in a rental or a hotel of some sort. If you have lost personal property, for instance your clothes, and all you have left after a fire are the clothes on your back, the insurer could issue you a check to go out and try to refurbish your wardrobe. If you depend on your computer to live your life, and you have lost your computer in the fire, they will pay to replace it. Most essentially, "loss of use" means loss of use of the home. If I have to go somewhere else, and it's going to cost me extra money, the insurance is not only going to pay to re-build or repair your home, but it's also going to pay so that you have some place to live while the repairs or the re-building is going on.
Showing posts with label Property Insurance. Show all posts
Showing posts with label Property Insurance. Show all posts
Thursday, July 31, 2008
Homeowner's Insurance Claims
How do I file a homeowner's insurance policy claim?
The first thing you should do to make a claim on your homeowner's insurance policy is to call your home owner's insurer as quickly as possible. Don't wait days after the lose to report it. As soon as you know you've had the loss, contact the insurance company. Usually there is a number right on your bill for any claims inquiries and you could also check with your insurance agent who obviously knows you best and can help you through the claims process. The claims process itself is usually fairly straight forward. You might have to fill out some paper work, a claims form, for example, that will list what was damaged or lost, what kind of value you think is involved and what the circumstances were of the loss. At that point, the insurance company may send an insurance adjuster to your property, who is a representative of theirs, to just take a look first hand: if there was a fire for example, or if your roof was damaged in a wind storm, or tree came down and crashed into your garage, or there was a burglary or some sort. If there's any sort of supporting documentation you may have to supply that for instance: in a burglary there might be a police report, if a neighbor of yours was injured on your property and is suing you for damages, there might be a medical report on the neighbor when they were treated at the local hospital. Your insurance agent and your insurer will usually walk you through that process.
What kind of documentation will I need to file a homeowner's insurance claim?
The more documentation the better when you file your homeowner's claim because it'll speed up the claim process, and get you your cheque faster. You'll start by filing a claim form which will document what was damaged or lost, what kind of value might be on that property, and the circumstances of the loss. An adjuster will follow up with you to investigate the claim. If you have any supporting documents, for instance if it was a burglary, you might file a police report. If a neighbour was unfortunately injured on your property by slipping on an icy sidewalk in front of your home and the neighbour went to the local hospital, filing some sort of a medical report from the hospital might help in that way as well. So, the more documentation the better. If you have any receipts for items that were lost; if you just bought your personal computer and that was stolen or you just got a new television and that's been gone, and you still have the receipt (whether it's a credit card receipt or from the original store where you bought it) that saves a lot of time as well.
What if my insurance company refuses to pay my claim?
If an insurance company denies your claim you have a number of options. Firstly, most insurance companies allow you to appeal a rejection. There's a grievance process in place. Perhaps all you have to do is provide additional documentation, clear-up some misunderstanding and the claim is paid. However, if the claim is still rejected and you still believe it should be covered under your policy, you could hire an attorney to pursue this for you and if it comes to this, people even bring these cases to court. You could actually sue your insurer for the coverage you think you are owed under the policy. Last but not least, if you feel you have a grievance with an insurer you should report it to the state insurance department. Insurers are regulated by the states and each state has a department that keeps track of the market conduct of each of the insurance companies. If you check with your local insurance department and find that your particular insurer has a history of denying claims arbitrarily and a lot of litigation against them that could support your claim against the insurance company if you end up going to court.
Why won't my insurance company pay for damage caused by a flood?
Why won't my insurance company pay for seepage and dry rot?
Basically, insurance is not supposed to pay for maintanence issues. If there's rotting within the boards of the home and things like this, if there's mold in there, that is something that develops over many years, and homeowners should be aware of these types of things and should be checking these regular to make sure they don't have those types of issues arising. Homeowner's insurance is more for a sudden, unexpected, catastrophic loss like a fire, a hurricane, a tree that falls on your roof and breaks into your bedroom or other similar occurences. These longer-term maintanence issues, whether it's dry rot or mold, are generally not covered under the homeowner's policy. That's something you really do need to take up with your agent, make sure that it's clear, and if there is coverage available, my endorsement perhaps is pursue it. But do not assume that is part of your standard homeowner's coverage.
Why won't my insurance company pay for vermin damage or extermination?
Vermin damage or extermination, much like dry rot and other types of maintenance issues, are not covered under standard homeowner's insurance policies. These are the types of things that homeowners have to look after to try to maintain their property. It's not an insurable risk. Usually insurable risks are things that you think might happen, catastrophes that could destroy your property that are not likely. Vermin infestation, dry rot, mold are things that are much more frequent, and if the homeowner is not vigilant in maintaining their property, these damages arise. A hurricane or a fire where the homeowner may have very little control will be covered by homeowner's insurance.
The first thing you should do to make a claim on your homeowner's insurance policy is to call your home owner's insurer as quickly as possible. Don't wait days after the lose to report it. As soon as you know you've had the loss, contact the insurance company. Usually there is a number right on your bill for any claims inquiries and you could also check with your insurance agent who obviously knows you best and can help you through the claims process. The claims process itself is usually fairly straight forward. You might have to fill out some paper work, a claims form, for example, that will list what was damaged or lost, what kind of value you think is involved and what the circumstances were of the loss. At that point, the insurance company may send an insurance adjuster to your property, who is a representative of theirs, to just take a look first hand: if there was a fire for example, or if your roof was damaged in a wind storm, or tree came down and crashed into your garage, or there was a burglary or some sort. If there's any sort of supporting documentation you may have to supply that for instance: in a burglary there might be a police report, if a neighbor of yours was injured on your property and is suing you for damages, there might be a medical report on the neighbor when they were treated at the local hospital. Your insurance agent and your insurer will usually walk you through that process.
What kind of documentation will I need to file a homeowner's insurance claim?
The more documentation the better when you file your homeowner's claim because it'll speed up the claim process, and get you your cheque faster. You'll start by filing a claim form which will document what was damaged or lost, what kind of value might be on that property, and the circumstances of the loss. An adjuster will follow up with you to investigate the claim. If you have any supporting documents, for instance if it was a burglary, you might file a police report. If a neighbour was unfortunately injured on your property by slipping on an icy sidewalk in front of your home and the neighbour went to the local hospital, filing some sort of a medical report from the hospital might help in that way as well. So, the more documentation the better. If you have any receipts for items that were lost; if you just bought your personal computer and that was stolen or you just got a new television and that's been gone, and you still have the receipt (whether it's a credit card receipt or from the original store where you bought it) that saves a lot of time as well.
What if my insurance company refuses to pay my claim?
If an insurance company denies your claim you have a number of options. Firstly, most insurance companies allow you to appeal a rejection. There's a grievance process in place. Perhaps all you have to do is provide additional documentation, clear-up some misunderstanding and the claim is paid. However, if the claim is still rejected and you still believe it should be covered under your policy, you could hire an attorney to pursue this for you and if it comes to this, people even bring these cases to court. You could actually sue your insurer for the coverage you think you are owed under the policy. Last but not least, if you feel you have a grievance with an insurer you should report it to the state insurance department. Insurers are regulated by the states and each state has a department that keeps track of the market conduct of each of the insurance companies. If you check with your local insurance department and find that your particular insurer has a history of denying claims arbitrarily and a lot of litigation against them that could support your claim against the insurance company if you end up going to court.
Why won't my insurance company pay for damage caused by a flood?
Why won't my insurance company pay for seepage and dry rot?
Basically, insurance is not supposed to pay for maintanence issues. If there's rotting within the boards of the home and things like this, if there's mold in there, that is something that develops over many years, and homeowners should be aware of these types of things and should be checking these regular to make sure they don't have those types of issues arising. Homeowner's insurance is more for a sudden, unexpected, catastrophic loss like a fire, a hurricane, a tree that falls on your roof and breaks into your bedroom or other similar occurences. These longer-term maintanence issues, whether it's dry rot or mold, are generally not covered under the homeowner's policy. That's something you really do need to take up with your agent, make sure that it's clear, and if there is coverage available, my endorsement perhaps is pursue it. But do not assume that is part of your standard homeowner's coverage.
Why won't my insurance company pay for vermin damage or extermination?
Vermin damage or extermination, much like dry rot and other types of maintenance issues, are not covered under standard homeowner's insurance policies. These are the types of things that homeowners have to look after to try to maintain their property. It's not an insurable risk. Usually insurable risks are things that you think might happen, catastrophes that could destroy your property that are not likely. Vermin infestation, dry rot, mold are things that are much more frequent, and if the homeowner is not vigilant in maintaining their property, these damages arise. A hurricane or a fire where the homeowner may have very little control will be covered by homeowner's insurance.
Umbrella Insurance
What is "umbrella insurance"?
Umbrella insurance is coverage over and above the liability coverage in your standard homeowners policy. If someone is injured in your home, slipping on an icy sidewalk, tripping on your stairway, and they sue you, your homeowner's policy should have a limited amount of coverage.If however, the cost of the coverage, either in legal bills, or in the amount of damages that's claimed by the injured party, exceeds what's in the homeowner's insurance policy, your umbrella liability will kick in and provide an additional layer of coverage. It can run anywhere from a million to five million additional dollars of coverage and can be very important. In addition, the umbrella liability coverage could cover you if there's liability losses on your auto policy, or if you own a boat for example, on your watercraft policy. Again if you injure anybody in the course of driving or using your boat you should have auto and watercraft insurance that has a section that deals with liability issues. But your umbrella insurance policy is over and above that, it will give you an additional layer of protection in case the damages, the costs involved, go beyond your standard coverages.
Do I need umbrella insurance?
What does umbrella insurance cover?
Umbrella insurance will cover your legal costs and liabilities if anyone is suing you for damaging their property or injuring them, over and above your standard coverages like homeowner's, auto or, if you own a boat, watercraft insurance. Umbrella insurance is a very important additional layer to have in a very litigious society where people sue on the drop of a hat. Legal bills can mount in a hurry and juries can be very generous in granting damages. You may think that if you have $50,000 in liability coverage under your homeowner's insurance policy that sounds fine, but at a fairly reasonable rate you can get additional liability coverage under your umbrella insurance policy of anywhere from $1 to 5 million more. You are pretty much covered in case someone slips and falls on your sidewalk and they end up suing you for a million dollars. The umbrella insurance policy will kick in.
How do I determine how much umbrella insurance I need?
Umbrella policies are fairly standard. Under your homeowner's insurance policy, there's usually an underlying liability limit. It could be $50,000 or $100,000. If someone should sue you, if they're injured or their personal property is damaged because of something you did or failed to do. Umbrella liability can provide anywhere from $1,000,000 to $5,000,000, or more of additional liability coverage to pay for your legal bills, or damages that are assessed against you. It's something you need to negotiate with your insurance agent, but my advice would be the more personal assets you have, the wealthier you are, the more umbrella liability you need. People tend to go after deeper pockets. If they go after a friend or a neighbor that doesn't have much, they're not going to necessarily sue for $10 million, but if you're wealthy, they're more likely to ask for more, so it's good to have umbrella policies.
How do I get umbrella insurance?
Umbrella insurance is usually available through the same agent or broker where you bought your homeowner's and auto insurance. Frequently, the same carrier that will supply your homeowner's insurance can add an additional layer of liability coverage under an umbrella policy. What you should probably do is ask your agent, at the time you buy your homeowner's insurance - if they haven't brought it up to you; a good agent will bring it up to you - and ask: "Does my carrier for homeowner's also offer umbrella? How much more is it?" In fact, there are some instances where if you buy multiple policies from the same carrier, if you get your auto, your homeowner's and your umbrella under the same carrier, you'll get a discount on the coverage because it's part of a package at that point. So it's always something you should raise with your agent.
How do I make a claim under my umbrella insurance policy?
To make a claim under your umbrella insurance policy you should contact the insurer and your agent as soon as something happens. Don't wait to be sued. If someone has fallen in your yard, if someone has tripped over your dog and broken their leg, or if you've driven your car out of the driveway and backed into somebody's garage and damaged their property be proactive. Call your insurer and your agent right away and say, “Something's happened. I'm not sure if anything is going to come from it but just in case.” Certainly if you're ever served with any papers (legal papers), put under a notice that you're being sued, you need to alert your homeowners and your umbrella liability insurer as soon as that happens so that they can help you coordinate your legal defense.
What kind of documentation do I need to make a claim on my umbrella insurance policy?
To make a claim on your umbrella insurance policy could be very straight forward. A process server shows up and gives you papers alerting you that you are being sued for damaging their property or injuring somebody. It could be more subtle, it could be a letter sent to you saying that someone tripped over your sidewalk or slipped on an icy patch that you failed to put salt on. Umbrella insurance should be claimed after anything that might indicate that you are going to be the subject of a lawsuit. You should let your insurance agent and your umbrella liability insurer know as soon as possible so that they can help ward off a suit, or, if necessary, coordinate your defense.
What do I do if my umbrella insurance policy claim is denied?
If your umbrella insurance liability claim is denied, you have a few options. Most insurance policies allow you to appeal a rejection, in which case all you need to do is provide additional documentation or clarification that could clear things up and get your claim paid. If it's still denied, you might have to get legal counsel. If the lawyer sends a letter, sometimes the insurance company will see the error of its ways and pay the claim. Other times, if you guys are still at an impasse, the lawyer may actually have to sue to recover. In any case, you also have the option to contact and file a complaint with your state insurance department; these are the people that regulate insurers. And you might discover that your insurer has a history of denying these types of claims, which could help you settle your claim.
Umbrella insurance is coverage over and above the liability coverage in your standard homeowners policy. If someone is injured in your home, slipping on an icy sidewalk, tripping on your stairway, and they sue you, your homeowner's policy should have a limited amount of coverage.If however, the cost of the coverage, either in legal bills, or in the amount of damages that's claimed by the injured party, exceeds what's in the homeowner's insurance policy, your umbrella liability will kick in and provide an additional layer of coverage. It can run anywhere from a million to five million additional dollars of coverage and can be very important. In addition, the umbrella liability coverage could cover you if there's liability losses on your auto policy, or if you own a boat for example, on your watercraft policy. Again if you injure anybody in the course of driving or using your boat you should have auto and watercraft insurance that has a section that deals with liability issues. But your umbrella insurance policy is over and above that, it will give you an additional layer of protection in case the damages, the costs involved, go beyond your standard coverages.
Do I need umbrella insurance?
What does umbrella insurance cover?
Umbrella insurance will cover your legal costs and liabilities if anyone is suing you for damaging their property or injuring them, over and above your standard coverages like homeowner's, auto or, if you own a boat, watercraft insurance. Umbrella insurance is a very important additional layer to have in a very litigious society where people sue on the drop of a hat. Legal bills can mount in a hurry and juries can be very generous in granting damages. You may think that if you have $50,000 in liability coverage under your homeowner's insurance policy that sounds fine, but at a fairly reasonable rate you can get additional liability coverage under your umbrella insurance policy of anywhere from $1 to 5 million more. You are pretty much covered in case someone slips and falls on your sidewalk and they end up suing you for a million dollars. The umbrella insurance policy will kick in.
How do I determine how much umbrella insurance I need?
Umbrella policies are fairly standard. Under your homeowner's insurance policy, there's usually an underlying liability limit. It could be $50,000 or $100,000. If someone should sue you, if they're injured or their personal property is damaged because of something you did or failed to do. Umbrella liability can provide anywhere from $1,000,000 to $5,000,000, or more of additional liability coverage to pay for your legal bills, or damages that are assessed against you. It's something you need to negotiate with your insurance agent, but my advice would be the more personal assets you have, the wealthier you are, the more umbrella liability you need. People tend to go after deeper pockets. If they go after a friend or a neighbor that doesn't have much, they're not going to necessarily sue for $10 million, but if you're wealthy, they're more likely to ask for more, so it's good to have umbrella policies.
How do I get umbrella insurance?
Umbrella insurance is usually available through the same agent or broker where you bought your homeowner's and auto insurance. Frequently, the same carrier that will supply your homeowner's insurance can add an additional layer of liability coverage under an umbrella policy. What you should probably do is ask your agent, at the time you buy your homeowner's insurance - if they haven't brought it up to you; a good agent will bring it up to you - and ask: "Does my carrier for homeowner's also offer umbrella? How much more is it?" In fact, there are some instances where if you buy multiple policies from the same carrier, if you get your auto, your homeowner's and your umbrella under the same carrier, you'll get a discount on the coverage because it's part of a package at that point. So it's always something you should raise with your agent.
How do I make a claim under my umbrella insurance policy?
To make a claim under your umbrella insurance policy you should contact the insurer and your agent as soon as something happens. Don't wait to be sued. If someone has fallen in your yard, if someone has tripped over your dog and broken their leg, or if you've driven your car out of the driveway and backed into somebody's garage and damaged their property be proactive. Call your insurer and your agent right away and say, “Something's happened. I'm not sure if anything is going to come from it but just in case.” Certainly if you're ever served with any papers (legal papers), put under a notice that you're being sued, you need to alert your homeowners and your umbrella liability insurer as soon as that happens so that they can help you coordinate your legal defense.
What kind of documentation do I need to make a claim on my umbrella insurance policy?
To make a claim on your umbrella insurance policy could be very straight forward. A process server shows up and gives you papers alerting you that you are being sued for damaging their property or injuring somebody. It could be more subtle, it could be a letter sent to you saying that someone tripped over your sidewalk or slipped on an icy patch that you failed to put salt on. Umbrella insurance should be claimed after anything that might indicate that you are going to be the subject of a lawsuit. You should let your insurance agent and your umbrella liability insurer know as soon as possible so that they can help ward off a suit, or, if necessary, coordinate your defense.
What do I do if my umbrella insurance policy claim is denied?
If your umbrella insurance liability claim is denied, you have a few options. Most insurance policies allow you to appeal a rejection, in which case all you need to do is provide additional documentation or clarification that could clear things up and get your claim paid. If it's still denied, you might have to get legal counsel. If the lawyer sends a letter, sometimes the insurance company will see the error of its ways and pay the claim. Other times, if you guys are still at an impasse, the lawyer may actually have to sue to recover. In any case, you also have the option to contact and file a complaint with your state insurance department; these are the people that regulate insurers. And you might discover that your insurer has a history of denying these types of claims, which could help you settle your claim.
Personal Property Insurance
What is "personal property insurance"?
Personal property insurance is very distinct within your homeowners policy, from what is required to cover the home if it is damaged in a fire, in a natural catastrophe of some sort. Personal property could extend from your furniture, it could be your clothing, it could be your personal electronics like a laptop computer, it could be collectibles, like wine, art, stamps for example. All of these things go into personal property protection. Standard items like your furniture can be pretty easily replaced under homeowners policy, but if you have anything out of the ordinary for instance instead of a winter coat you have a fur coat of some sort that has a very very high value, that should be brought to the attention of the insurer, so that it can be independently appraised and added on separately onto your policy.
Do I need personal property insurance?
If you have enough personal property to make it worth your while to protect, I would think you definitely need personal property insurance. Even if it's as simple as thinking, "All I have is a TV, and a couch, and a bed, and a dining room table," think for a minute if all that was taken away from you overnight and you had to replace it out of your own pocket. How much did that TV cost you? How much is that La-Z-Boy chair that you love so much? How much was that dining room set that you just bought, or the bedroom set you just got out? These things can really add up in a hurry, and before you know it you reach twenty or thirty thousand dollars worth of property. It can be very valuable, and in that case personal property insurance is a very important protection.
How do I get personal property insurance?
Personal property insurance is handled through the home owner's policy. Most of it is pretty standard. The homeowners insurer is going to assumethat your home is going to require all the basics. It's going to require living room furniture like a couch, the chairs and TV, the bedroom set, things of that nature.They'll assume that you have clothing, whether its shirts, ties, pants, shoes, coats,for various seasons. If you have anything out of the ordinary that requires special attention such as a rare painting, a stamp collection, a 1968 Mickey Mantle baseball card that's worth a thousand dollars. These types of things should not be taken for granted. They should be brought to the attention of the agent and the insurer when you buy your policy, independently appraised, added on as separate endorsements.
How do I determine how much personal property insurance I need?
To determine how much you need for personal property insurance, you should take an inventory of your possessions: what kind of furniture you have, what you might need to replace in case there's a fire or a disaster of some sort. If there's anything out of the ordinary - for instance, rather than a winter coat a fur coat or rather than baseball cards a very rare baseball card - these things should be brought to the attention of the agent and the insurer when you buy the coverage. They may need to be independently appraised so that you both can agree on a figure as to how much it's worth and then it has to be added into the policy as a special endorsement. This way there's no problems if there's a claim that's going to be filed, at least as to how much you're owed under the policy.
Do I need personal property insurance if I already have homeowner's or renter's insurance?
Personal property insurance is usually part of homeowner's or renter's insurance. It's one of the essential pieces of those policies. However, if you do have any sort of specialized types of property, like a very rare piece of jewelry or art, or some collectible that's worth more than you can imagine, these types of things need to be identified up front, independently appraised and added specifically onto the policy as endorsements. This way you're sure to get full value if they're lost.
What happens if my property is damaged or stolen while I'm on vacation?
If you're travelling and you lose property, there's a good chance that your homeowner's insurance will kick in to cover some of that, but that's very good question to ask if you're about to go on a big trip. Double check with your agent or broker, especially if you're taking along with you anything that's very hard to replace like special jewellery, for example. You also might want to consider purchasing additional coverage under travel insurance which will protect the loss of or damage to possessions while you're in the course of your trip. This is, again, a question that should be raised with your insurance agent. You may have some coverage under your homeowner's insurance policy. There maybe a deductible involved which means there may be certain levels $250, $500 or so that you might have to cover out of your own pocket. These types of gaps in coverage could be cover by a travel policy. So, it's a good question to ask before you make your trip.
What kind of documentation will I need to make a personal property insurance claim?
To make a claim for the loss of any personal property, the more documentation the better. If you have a very valuable piece of property, like a fur coat, or a special painting that's irreplaceable, chances are you should have cleared that up with the insurance company beforehand and had an independent appraisal. That appraisal serves as the documentation of what that piece of property is worth. For standard pieces of property, like your television set or your couch, the insurer will propbably be pretty reasonable. But, if you've made any sort of a special purchase, like instead of just a 19" TV, you've bought the super-deluxe, flat screen wall-mounted television -- if you have a receipt for that, keep it offsite in a safety deposit box. Try to keep copies of any sorts of receipts of recent purchases. In a worst-case scenario, if you've lost all your documentation in a fire, you might be able to fall back on credit card records, cancelled checks that can be acquired from a third-party banking institution, a credit card company, things of that nature.
What do I do if my personal property insurance claim is denied?
If your personal property insurance claim is denied, the insurance company itself usually has an appeals process that you can pursue. Perhaps there was some documentation missing to put the value at what it should be, or there is some other misunderstanding that can be cleared up on appeal. Should that fail, the individual could seek legal counsel to get a second opinion as to whether or not the policy language should or should not have covered your particular loss. If your lawyer agrees that the loss should have been covered by the insurance company, a lawyer's letter might spur the payment of the claim and if not, there's always the chance you might have to sue. Last, but not least, you could file a complaint with your state's insurance department: these are the people that regulate insurers, and if there's a history on the part of an insurer of denying these types of claims that might fortify your own claim against the insurer.
Personal property insurance is very distinct within your homeowners policy, from what is required to cover the home if it is damaged in a fire, in a natural catastrophe of some sort. Personal property could extend from your furniture, it could be your clothing, it could be your personal electronics like a laptop computer, it could be collectibles, like wine, art, stamps for example. All of these things go into personal property protection. Standard items like your furniture can be pretty easily replaced under homeowners policy, but if you have anything out of the ordinary for instance instead of a winter coat you have a fur coat of some sort that has a very very high value, that should be brought to the attention of the insurer, so that it can be independently appraised and added on separately onto your policy.
Do I need personal property insurance?
If you have enough personal property to make it worth your while to protect, I would think you definitely need personal property insurance. Even if it's as simple as thinking, "All I have is a TV, and a couch, and a bed, and a dining room table," think for a minute if all that was taken away from you overnight and you had to replace it out of your own pocket. How much did that TV cost you? How much is that La-Z-Boy chair that you love so much? How much was that dining room set that you just bought, or the bedroom set you just got out? These things can really add up in a hurry, and before you know it you reach twenty or thirty thousand dollars worth of property. It can be very valuable, and in that case personal property insurance is a very important protection.
How do I get personal property insurance?
Personal property insurance is handled through the home owner's policy. Most of it is pretty standard. The homeowners insurer is going to assumethat your home is going to require all the basics. It's going to require living room furniture like a couch, the chairs and TV, the bedroom set, things of that nature.They'll assume that you have clothing, whether its shirts, ties, pants, shoes, coats,for various seasons. If you have anything out of the ordinary that requires special attention such as a rare painting, a stamp collection, a 1968 Mickey Mantle baseball card that's worth a thousand dollars. These types of things should not be taken for granted. They should be brought to the attention of the agent and the insurer when you buy your policy, independently appraised, added on as separate endorsements.
How do I determine how much personal property insurance I need?
To determine how much you need for personal property insurance, you should take an inventory of your possessions: what kind of furniture you have, what you might need to replace in case there's a fire or a disaster of some sort. If there's anything out of the ordinary - for instance, rather than a winter coat a fur coat or rather than baseball cards a very rare baseball card - these things should be brought to the attention of the agent and the insurer when you buy the coverage. They may need to be independently appraised so that you both can agree on a figure as to how much it's worth and then it has to be added into the policy as a special endorsement. This way there's no problems if there's a claim that's going to be filed, at least as to how much you're owed under the policy.
Do I need personal property insurance if I already have homeowner's or renter's insurance?
Personal property insurance is usually part of homeowner's or renter's insurance. It's one of the essential pieces of those policies. However, if you do have any sort of specialized types of property, like a very rare piece of jewelry or art, or some collectible that's worth more than you can imagine, these types of things need to be identified up front, independently appraised and added specifically onto the policy as endorsements. This way you're sure to get full value if they're lost.
What happens if my property is damaged or stolen while I'm on vacation?
If you're travelling and you lose property, there's a good chance that your homeowner's insurance will kick in to cover some of that, but that's very good question to ask if you're about to go on a big trip. Double check with your agent or broker, especially if you're taking along with you anything that's very hard to replace like special jewellery, for example. You also might want to consider purchasing additional coverage under travel insurance which will protect the loss of or damage to possessions while you're in the course of your trip. This is, again, a question that should be raised with your insurance agent. You may have some coverage under your homeowner's insurance policy. There maybe a deductible involved which means there may be certain levels $250, $500 or so that you might have to cover out of your own pocket. These types of gaps in coverage could be cover by a travel policy. So, it's a good question to ask before you make your trip.
What kind of documentation will I need to make a personal property insurance claim?
To make a claim for the loss of any personal property, the more documentation the better. If you have a very valuable piece of property, like a fur coat, or a special painting that's irreplaceable, chances are you should have cleared that up with the insurance company beforehand and had an independent appraisal. That appraisal serves as the documentation of what that piece of property is worth. For standard pieces of property, like your television set or your couch, the insurer will propbably be pretty reasonable. But, if you've made any sort of a special purchase, like instead of just a 19" TV, you've bought the super-deluxe, flat screen wall-mounted television -- if you have a receipt for that, keep it offsite in a safety deposit box. Try to keep copies of any sorts of receipts of recent purchases. In a worst-case scenario, if you've lost all your documentation in a fire, you might be able to fall back on credit card records, cancelled checks that can be acquired from a third-party banking institution, a credit card company, things of that nature.
What do I do if my personal property insurance claim is denied?
If your personal property insurance claim is denied, the insurance company itself usually has an appeals process that you can pursue. Perhaps there was some documentation missing to put the value at what it should be, or there is some other misunderstanding that can be cleared up on appeal. Should that fail, the individual could seek legal counsel to get a second opinion as to whether or not the policy language should or should not have covered your particular loss. If your lawyer agrees that the loss should have been covered by the insurance company, a lawyer's letter might spur the payment of the claim and if not, there's always the chance you might have to sue. Last, but not least, you could file a complaint with your state's insurance department: these are the people that regulate insurers, and if there's a history on the part of an insurer of denying these types of claims that might fortify your own claim against the insurer.
Renter's Insurance
What is "renter's insurance"?
Renter's insurance covers people who do not own their own homes. Just because you don't own your home, it doesn't mean you don't have a lot at stake. For instance, if you own a home, you worry about whether the home burns down or is damaged in a storm. If you're renting, that's the owner's responsibility. But if there is a fire, you have a lot of personal property to protect. You also may have specialized property: a stamp collection, baseball cards, fine art, etc. That's still your responsibility. You can insure that even if you're renting the property and you may have some liability issues. If someone falls in your home and they trip over your dog, they're going to sue you, not necessarily the landlord, so you have some exposure there. Most importantly, if for some reason you are forced to leave your home because of damage, from a storm or fire, even if you're renting, renter's insurance will cover loss of use which means the insurance company will pay any additional living expenses either to rent another place or put you up in a hotel on a short term basis while your property is being repaired. That's very important; if you have a fire that burns down your rental home, you can replace all your personal possessions and you can be put up somewhere else while the home is being repaired. That's why renter's insurance is important. Renter's insurance is also relatively inexpensive.
How do I determine how much renter's insurance I need?
To determine how much renter's insurance you need, essentially you should sit down with your insurance agent and go over what your personal property is. Is it very standard stuff like your couch, TV and bed, or are there special items there that are a little bit harder to replace and that might need an independent appraisal to put a value on it? For example, a very expensive painting or a fur coat, an irreplaceable piece of jewelry or baseball card collection? If you go through this with your insurance agent, they can set up a schedule for you to make sure all of these items are properly appraised and included in a renter's insurance policy.
What kind of documentation should I, as a renter, keep?
If you have any sort of documentation that can prove the value of your personal property, you should keep it for future reference, if you are a renter. If you've just bought a new flat screen TV, it would be nice to keep the receipt. If you have any sort of specialized property, like a wine collection, for example, it would be good to have an independent appraisal filed with your insurance company, so that there's no disagreements going in if you lose that property about what it's going to cost to reimburse you. Any sort of documentation on items you own is always valuable, because it will show the insurer some proof of what needs to be paid out in order to replace the property you've lost.
Renter's insurance covers people who do not own their own homes. Just because you don't own your home, it doesn't mean you don't have a lot at stake. For instance, if you own a home, you worry about whether the home burns down or is damaged in a storm. If you're renting, that's the owner's responsibility. But if there is a fire, you have a lot of personal property to protect. You also may have specialized property: a stamp collection, baseball cards, fine art, etc. That's still your responsibility. You can insure that even if you're renting the property and you may have some liability issues. If someone falls in your home and they trip over your dog, they're going to sue you, not necessarily the landlord, so you have some exposure there. Most importantly, if for some reason you are forced to leave your home because of damage, from a storm or fire, even if you're renting, renter's insurance will cover loss of use which means the insurance company will pay any additional living expenses either to rent another place or put you up in a hotel on a short term basis while your property is being repaired. That's very important; if you have a fire that burns down your rental home, you can replace all your personal possessions and you can be put up somewhere else while the home is being repaired. That's why renter's insurance is important. Renter's insurance is also relatively inexpensive.
How do I determine how much renter's insurance I need?
To determine how much renter's insurance you need, essentially you should sit down with your insurance agent and go over what your personal property is. Is it very standard stuff like your couch, TV and bed, or are there special items there that are a little bit harder to replace and that might need an independent appraisal to put a value on it? For example, a very expensive painting or a fur coat, an irreplaceable piece of jewelry or baseball card collection? If you go through this with your insurance agent, they can set up a schedule for you to make sure all of these items are properly appraised and included in a renter's insurance policy.
What kind of documentation should I, as a renter, keep?
If you have any sort of documentation that can prove the value of your personal property, you should keep it for future reference, if you are a renter. If you've just bought a new flat screen TV, it would be nice to keep the receipt. If you have any sort of specialized property, like a wine collection, for example, it would be good to have an independent appraisal filed with your insurance company, so that there's no disagreements going in if you lose that property about what it's going to cost to reimburse you. Any sort of documentation on items you own is always valuable, because it will show the insurer some proof of what needs to be paid out in order to replace the property you've lost.
Homeowner's Insurance
What is "homeowner's insurance"?
Homeowner's insurance is an insurance policy that you buy when you own your own home. It'll cover you in case there's any damage to your property, whether from a natural catastrophe or a fire, for instance. It will cover many of your personal possessions if they're lost in a fire, if there's a burglary of some sort, if there's a natural catastrophe like a hurricane that blows things away. Also, homeowner's insurace covers some of your liability exposures if someone slips and falls on your driveway, trips down your stairs, trips over your dog, etc. All of these items are covered under your homeowner's insurance policy.
Do I need homeowner's insurance?
You absolutely need homeowner's insurance. For most people, buying a home is probably the biggest investment they're ever going to make in their lives. If you do not buy homeowner's insurance, you are totally exposed if anything ever happens to that property. If there's a fire, if there's a hurricane, if someone slips and falls and hurts themselves on your property, your assets are totally exposed at that point. Any loss would have to be paid out of your own pocket. If you do have homeowner's insurance, then you transfer a lot of that risk to the homeowner's insurance company. It's critical that you buy homeowner's insurance.
What does homeowner's insurance cover?
Homeowner's insurance covers a fairly wide variety of exposures. Basically, homeowner's insurance will cover the property itself if it's damaged in a fire, or in a natural disaster, such as a hurricane. It will cover you in case you are burglarized and lose personal property that way. Homeowner's insurance will cover you if any individual who may be visiting you is injured on your property, such as slipping on an icy driveway, tripping on your stairs, or tripping over the family dog. In any situation where and individual is hurt and sues you, the homeowner's insurer will step in.
Am I required to have homeowner's insurance?
There's no law that I'm aware of that says a person has to have homeowner's insurance. However, when you apply for a mortgage, most banks will require you to have homeowner's insurance. This is because the bank is making the mortgage using the home itself as the collateral. So if you were to default on your mortgage, they can always resell the property. However, if you do not insure the property, and let's say that it's destroyed in a fire, you have no insurance and can't afford to rebuild it, the bank has lost its collateral. So quite frequently, as a term of getting the mortgage granted to you, you will be required to show proof of insurance.
How do I get homeowner's insurance?
Homeowner's insurance is available to people through a wide variety of distribution channels. You may see an ad on TV with an '0800' number to call, or you maybe able to hookup with an insurance company over the Internet. You may get a piece of direct mail that offers you homeowner's insurance or the route that I prefer is to deal with an insurance agent of some sort. Someone who can walk you through the process, explain to you exactly what's covered and not covered, and if you deal with an independent agent who's an individual who licenses to write for a wide variety of carriers, they can look at your individual needs, and pick out the best carrier to suit them and get it for you at the best price.
How do I determine how much homeowner's insurance I need?
What you need to do is sit down with your agent and go through the value of your property. Essentially, it's the value of your home, how much you think it's going to cost to replace it if the worst happens, for example if it burns to the ground or is blown away in a hurricane. What kinds of personal property you have is also a consideration. Now, people have standard property such as a couch, a TV and things like that and they think, well I'm covered if I just say "Well yeah, I have the standard pieces of property". But you may have special property, for example, Jewelry, furs, fine art, stamp collections, or a baseball card collection. Stuff with a value is a little bit harder to put a dollar figure on and you may have to get an appraisal. All of those factors go into your individualized insurance coverage and those are the types of things that need to be discussed with your agent up front, so they can make sure that there are no gaps in your coverage if the worst happens.
Should I insure my personal possessions?
Many of your personal possessions are insured automatically under your homeowner's policy. For instance, if you lose your couch, if you lose your television, if you lose your dining room table. Those are pretty standard items. If they're lost in a fire, for example, and have to be replaced, you will be able to replace those things at a reasonable cost. However, you should be very aware that if you have any sorts of specialized property that's hard to put a value on - a stamp collection, a baseball card collection, fancy fur, extra-special jewelry - these types of things need to be brought to the attention of the agent and the insurer up front. And you may have to have endorsements, which are additions to coverage, to make sure that these items are adequately appraised, accounted for, and insured under your policy.
What's the difference between home, property and liability insurance?
Home, property, and liability insurance is usually all under the same homeowner's insurance package. They refer to different aspects of the coverage. The home coverage is pretty straightforward. If anything happens to your house, whether the roof is blown off in a hurricane, the tree falls over and damages the garage, the house loses a room, or perhaps the entire property is burned down in a fire; these things are all covered under the home portion of the coverage. There's also a personal property provision in these policies. That can range from very basic things such as your television, your couch, your bed, your dining room table, standard items, to specialized items that you need to get appraised and added on to a policy in an endorsement to make sure they're covered. This would be stuff like a fur, a very fancy piece of jewelry, a stamp or baseball card collection, or fine art, something that's out of the ordinary that you need to get appraised and added to a policy. As far as the liability portion goes, if someone walks by your front yard and you haven't shovelled the snow yet, slips and falls, breaks their leg, they may sue you. If they fall down your stairs, they trip over your dog, or any of these unlikely occurences might lead to a lawsuit in which case the policy would cover you for any legal expenses and if you have to pay any damages to the individual who's been harmed.
What does home insurance property protection cover?
Home insurance property protection is really the most basic portion of the policy. It will cover any damage to the house itself, such as from a fire - if there was a kitchen fire for example, or if the whole house burns down to the ground. Home insurance will protect your house in case of a hurricane, if the roof is blown off for example. It will protect it in case a tree is blown over and smashes into your garage. Any of those types of damage to the home itself will be protected under the home insurance property provision.
Homeowner's insurance is an insurance policy that you buy when you own your own home. It'll cover you in case there's any damage to your property, whether from a natural catastrophe or a fire, for instance. It will cover many of your personal possessions if they're lost in a fire, if there's a burglary of some sort, if there's a natural catastrophe like a hurricane that blows things away. Also, homeowner's insurace covers some of your liability exposures if someone slips and falls on your driveway, trips down your stairs, trips over your dog, etc. All of these items are covered under your homeowner's insurance policy.
Do I need homeowner's insurance?
You absolutely need homeowner's insurance. For most people, buying a home is probably the biggest investment they're ever going to make in their lives. If you do not buy homeowner's insurance, you are totally exposed if anything ever happens to that property. If there's a fire, if there's a hurricane, if someone slips and falls and hurts themselves on your property, your assets are totally exposed at that point. Any loss would have to be paid out of your own pocket. If you do have homeowner's insurance, then you transfer a lot of that risk to the homeowner's insurance company. It's critical that you buy homeowner's insurance.
What does homeowner's insurance cover?
Homeowner's insurance covers a fairly wide variety of exposures. Basically, homeowner's insurance will cover the property itself if it's damaged in a fire, or in a natural disaster, such as a hurricane. It will cover you in case you are burglarized and lose personal property that way. Homeowner's insurance will cover you if any individual who may be visiting you is injured on your property, such as slipping on an icy driveway, tripping on your stairs, or tripping over the family dog. In any situation where and individual is hurt and sues you, the homeowner's insurer will step in.
Am I required to have homeowner's insurance?
There's no law that I'm aware of that says a person has to have homeowner's insurance. However, when you apply for a mortgage, most banks will require you to have homeowner's insurance. This is because the bank is making the mortgage using the home itself as the collateral. So if you were to default on your mortgage, they can always resell the property. However, if you do not insure the property, and let's say that it's destroyed in a fire, you have no insurance and can't afford to rebuild it, the bank has lost its collateral. So quite frequently, as a term of getting the mortgage granted to you, you will be required to show proof of insurance.
How do I get homeowner's insurance?
Homeowner's insurance is available to people through a wide variety of distribution channels. You may see an ad on TV with an '0800' number to call, or you maybe able to hookup with an insurance company over the Internet. You may get a piece of direct mail that offers you homeowner's insurance or the route that I prefer is to deal with an insurance agent of some sort. Someone who can walk you through the process, explain to you exactly what's covered and not covered, and if you deal with an independent agent who's an individual who licenses to write for a wide variety of carriers, they can look at your individual needs, and pick out the best carrier to suit them and get it for you at the best price.
How do I determine how much homeowner's insurance I need?
What you need to do is sit down with your agent and go through the value of your property. Essentially, it's the value of your home, how much you think it's going to cost to replace it if the worst happens, for example if it burns to the ground or is blown away in a hurricane. What kinds of personal property you have is also a consideration. Now, people have standard property such as a couch, a TV and things like that and they think, well I'm covered if I just say "Well yeah, I have the standard pieces of property". But you may have special property, for example, Jewelry, furs, fine art, stamp collections, or a baseball card collection. Stuff with a value is a little bit harder to put a dollar figure on and you may have to get an appraisal. All of those factors go into your individualized insurance coverage and those are the types of things that need to be discussed with your agent up front, so they can make sure that there are no gaps in your coverage if the worst happens.
Should I insure my personal possessions?
Many of your personal possessions are insured automatically under your homeowner's policy. For instance, if you lose your couch, if you lose your television, if you lose your dining room table. Those are pretty standard items. If they're lost in a fire, for example, and have to be replaced, you will be able to replace those things at a reasonable cost. However, you should be very aware that if you have any sorts of specialized property that's hard to put a value on - a stamp collection, a baseball card collection, fancy fur, extra-special jewelry - these types of things need to be brought to the attention of the agent and the insurer up front. And you may have to have endorsements, which are additions to coverage, to make sure that these items are adequately appraised, accounted for, and insured under your policy.
What's the difference between home, property and liability insurance?
Home, property, and liability insurance is usually all under the same homeowner's insurance package. They refer to different aspects of the coverage. The home coverage is pretty straightforward. If anything happens to your house, whether the roof is blown off in a hurricane, the tree falls over and damages the garage, the house loses a room, or perhaps the entire property is burned down in a fire; these things are all covered under the home portion of the coverage. There's also a personal property provision in these policies. That can range from very basic things such as your television, your couch, your bed, your dining room table, standard items, to specialized items that you need to get appraised and added on to a policy in an endorsement to make sure they're covered. This would be stuff like a fur, a very fancy piece of jewelry, a stamp or baseball card collection, or fine art, something that's out of the ordinary that you need to get appraised and added to a policy. As far as the liability portion goes, if someone walks by your front yard and you haven't shovelled the snow yet, slips and falls, breaks their leg, they may sue you. If they fall down your stairs, they trip over your dog, or any of these unlikely occurences might lead to a lawsuit in which case the policy would cover you for any legal expenses and if you have to pay any damages to the individual who's been harmed.
What does home insurance property protection cover?
Home insurance property protection is really the most basic portion of the policy. It will cover any damage to the house itself, such as from a fire - if there was a kitchen fire for example, or if the whole house burns down to the ground. Home insurance will protect your house in case of a hurricane, if the roof is blown off for example. It will protect it in case a tree is blown over and smashes into your garage. Any of those types of damage to the home itself will be protected under the home insurance property provision.
Property And Casualty Insurance Terminology
What is an "insurance premium payment"?
Essentially an insurance premium payment is what you owe for the insurer to offer you coverage. It's the bill you are going to get that says you have to pay this premium. You either pay it in full; many carriers will offer you an installment plan. If you do pay on installment there might be some additional charges, so you should ask about that when you see your agent. Essentially, the insurance premium payment is just the amount of money the insurance company needs to collect from you in order to assure you complete coverage.
What is an "insurance deductible"?
An insurance deductible is the amount of loss that you pay out of your own pocket, even if you have insurance. This is negotiated as part of the policy with your insurance agent and carrier. Usually it's pretty standard, for example a $250 or $500 deductible on your homeowner's insurance policy. One of the reasons an insurance deductible is in place is to discourage people from putting in small claims in abundance. The insurance is really there to cover you in case of a catastrophic, serious loss. If, for instance, you have a $500 deductible and you have a $5,000 loss, you would pay the first $500 and then the insurer would pick up the rest from there.
What is an "insurance claim"?
An insurance claim is when you suffer a loss for which you want your insurer to cover you. It could be that your home is damaged, roof perhaps is partially blown off in a windstorm, tree comes down and bangs into your garage, someone slips and falls in your icy driveway and files a suit against you, your building is burglarized and you lose some of your property. In any of those cases what you do is you file an insurance claim, which is essentially documentation saying what you lost, what the circumstances of the loss were and at that point the insurer will examine this. If everything checks out they will reimburse you under the terms of the policy, so that you can either repair the damage, replace any items that are lost or defend yourself against any suits that are filed by individuals you might have harmed.
What is an "insurance adjuster"?
An insurance adjuster is an individual sent by an insurance company to examine a claim. Essentially, an insurance adjuster is there to verify what kind of loss you had and what the circumstances were, so the insurance company can go ahead and pay the claim. For instance, if you have a windstorm that blows a tree into the garage and severely damages it, the insurance adjuster will take pictures of the tree still sticking out of your garage, for example, and take a look from the interior to see what kind of damage was done. The insurance adjuster will report back to the insurer, and then the insurer can proceed with paying the claim.
What is "insurance coverage"?
Insurance coverage is pretty much the terms of the deal. When you pay a premium you're getting certain circumstances or personal property covered by the insurer. It could be your home. It could be your personal possessions. It could be your personal assets if someone is injured by you and sues to try to recover for that. The insurance coverage terms lay out what types of situations and properties are insured, what kind of conditions they are insured under and what the limits are of coverage. In other words, insurance coverage is how much the insurer is willing to pay to make you whole again.
Essentially an insurance premium payment is what you owe for the insurer to offer you coverage. It's the bill you are going to get that says you have to pay this premium. You either pay it in full; many carriers will offer you an installment plan. If you do pay on installment there might be some additional charges, so you should ask about that when you see your agent. Essentially, the insurance premium payment is just the amount of money the insurance company needs to collect from you in order to assure you complete coverage.
What is an "insurance deductible"?
An insurance deductible is the amount of loss that you pay out of your own pocket, even if you have insurance. This is negotiated as part of the policy with your insurance agent and carrier. Usually it's pretty standard, for example a $250 or $500 deductible on your homeowner's insurance policy. One of the reasons an insurance deductible is in place is to discourage people from putting in small claims in abundance. The insurance is really there to cover you in case of a catastrophic, serious loss. If, for instance, you have a $500 deductible and you have a $5,000 loss, you would pay the first $500 and then the insurer would pick up the rest from there.
What is an "insurance claim"?
An insurance claim is when you suffer a loss for which you want your insurer to cover you. It could be that your home is damaged, roof perhaps is partially blown off in a windstorm, tree comes down and bangs into your garage, someone slips and falls in your icy driveway and files a suit against you, your building is burglarized and you lose some of your property. In any of those cases what you do is you file an insurance claim, which is essentially documentation saying what you lost, what the circumstances of the loss were and at that point the insurer will examine this. If everything checks out they will reimburse you under the terms of the policy, so that you can either repair the damage, replace any items that are lost or defend yourself against any suits that are filed by individuals you might have harmed.
What is an "insurance adjuster"?
An insurance adjuster is an individual sent by an insurance company to examine a claim. Essentially, an insurance adjuster is there to verify what kind of loss you had and what the circumstances were, so the insurance company can go ahead and pay the claim. For instance, if you have a windstorm that blows a tree into the garage and severely damages it, the insurance adjuster will take pictures of the tree still sticking out of your garage, for example, and take a look from the interior to see what kind of damage was done. The insurance adjuster will report back to the insurer, and then the insurer can proceed with paying the claim.
What is "insurance coverage"?
Insurance coverage is pretty much the terms of the deal. When you pay a premium you're getting certain circumstances or personal property covered by the insurer. It could be your home. It could be your personal possessions. It could be your personal assets if someone is injured by you and sues to try to recover for that. The insurance coverage terms lay out what types of situations and properties are insured, what kind of conditions they are insured under and what the limits are of coverage. In other words, insurance coverage is how much the insurer is willing to pay to make you whole again.
Property And Casualty Insurance Basics
What is "casualty insurance"?
Casualty insurance is a component of the homeowner's policy. Essentially it protects you if someone is injured in your home or you hurt somebody. For example, if someone trips on your stairs, falls on the ice that isn't swept away in front of your house, if you back out of your driveway and hit them, things like this. It also covers some personal property. For instance, if you're burglarized, that would be considered a casualty loss.
What is "property insurance"?
Property insurance, for our context in a homeowner's policy, essentially is the loss of your home, whether there's a fire, whether there is hurricane damage to it, things of that nature. There are also personal property losses. For instance, if you have jewelry, if you have furs, televisions, furniture, satellite dishes, things of this nature, those are all considered personal property.
Do I need insurance?
You certainly do need insurance because if you go bare (the industry phrase for going without insurance) essentially what happens is you are on your own. If anything happens to your home or your property, or you happen to injure somebody else, your assets are at risk. It's out of your own bank account, out of your own pocket. People do need to buy insurance.
How much insurance do I need?
How much insurance you need depends on how much you own. That's a conversation that you should be having with your insurance agent when you sit down to buy coverage. It involves that value of your home and how much property you have: if you're living in a one bedroom apartment you'll need a very different amount of insurance than if you have a three story home filled with furniture, clothing, fine art, etc. The more you have the more insurance you need. You do need to go over this very carefully with your insurance agent to make sure if you do have a loss, everything you did lose will be replaced.
How do I get insurance?
There are a variety of methods that an individual can buy insurance. The method I would prefer is to go to an agent, because frankly insurance is a very, very complicated product, and people always have a million questions to ask. I would strongly emphasize that. But if people would like to shop around, you can get quotes for auto and homeowner's insurance right over the web. There are certain search engines that you can access to put in various factors that will provide you with a quote. A number of insurance companies also have their own individual sites where you can get a quote. There are a variety of companies that market by direct mail. You may get something in your mail saying, do you need auto or homeowner's insurance. But I really believe that with a product like this where if you screw up, you're really on your own, your best bet is to work with a professional, at least someone who can explain to you what is and what is not covered, and can help you through the process if you do unfortunately have a claim at some point.
What are the pros and cons of buying insurance directly from an insurance company?
The popular myth is that it's cheaper to buy directly from an insurance company. That seems to make sense: if you cut out the middleman, that cuts out a cost, therefore you're going to get a cheaper product. That's not always the case unfortunately, because if you don't know exactly what kind of coverage you need, you actually might be buying more than you need and paying more for it, so whatever savings you may have achieved by cutting out the insurance agent may have been lost by the fact that you're buying more insurance than you actually require. Another situation is that if you buy directly from the insurance company, you won't have that intermediary there on your behalf to help you through the process if you do have a claim. Thirdly, and most importantly I think, is if you buy directly from the insurance company, you're only hearing that company's point of view. If you deal with an independent insurance agent, these individuals are licensed to represent a variety of insurance companies and they can put you with the best company at the best price. If you deal directly with a company, you're going to be limited to getting quote, and whatever coverages are offered from that specific insurance company. They will always talk a good game and tell you, "We're always the best, we're the cheapest" etc., but you'll never really know that for sure unless you shop around. I personally think the best way to do that is through an independent insurance agent.
What's the difference between a "captive" and an "independent" insurance agent?
Well it's pretty simple. A "captive" is exactly what it sounds like. They are a captive of the insurance company they work for; they represent solely that one company. So, and it's very easy to pick out these types of agents. If you're walking down your main street wherever you happen to live, if you see the name of the insurance company on the storefront, whether it's Statefarm, Allstate, Prudential, MetLife you will see the, that you know is a captive agent, that is a representative of that company. If, on the other hand, you're walking down the street and you see the John Smith Insurance Agency you know that this individual is an independent agent, he's free to do business with whatever carriers he signs on with, and by definition they're going to have a stable of carriers that can meet a number of your needs, as opposed to just offering you, you know, the offerings of one company, and that's the big difference dealing with an independent agent.
What's the difference between an "insurance agent" and an "insurance broker"?
An insurance agent is someone who is licensed by a carrier to represent them. So technically, they are the insurance company's representative in the market. An "independent agent" can be licensed by a variety of companies while a "captive agent" is usually only licensed by one company. An insurance broker, on the other hand, is legally the representative of the client and is free to place business wherever they can find a market. In reality, however, when you're dealing with personal insurance issues, like auto and homeowner's coverage, ninety-nine percent of the time you're dealing with agents. It's usually the bigger commercial companies that are dealing with the major national insurance brokerages in placing coverage not only here in the United States but overseas. So, for the most part, people are dealing with agents who are legally representatives of the companies that appointed them.
What are the advantages and disadvantages of buying insurance through an agent?
The advantage is of dealing with an agent is the fact that you'll have somebody that can be an expert advisor to you and that can have access, if they're an independent agent, to a multitude of markets, so they'll make sure that you get the right coverage at the best price possible. The disadvantages of working with an agent might be that there's an extra cost involved because you have an intermediary. That's at least the mythology that's out there--that if you cut out the middleman you save money. That's not always the case, because you may save money on premium but you may not be getting the right coverage, which could harm you down the road when it comes time to make a claim. My advice to people is always try to deal with an agent when buying insurance.
What should I consider when choosing an insurance broker or agent?
I think the best advice I can give people when choosing an insurance agent is to deal with a referral if at all possible. Ask your friends: Who is their insurance agent or broker? Are they happy with them? If they are happy with them, what do they like about them? Make your friends articulate the advantages of dealing with this insurance agent because at least in that case, you get some sense that people that you trust have had a good experience with this person in getting price, coverage, and even a claim handled properly, which is really when the money is on the line. My best advice is to do that. Otherwise, just sit down with the insurance agent, talk to them in as much depth as possible, make sure you're comfortable, that you understand their explanations, that they're being patient with you, and giving you full disclosure about what's covered in the policy. Shop around. See more than one insurance agent before you make your decision. You might be comfortable with insurance agent A but when you get to B and C, you find out you and C really hit it off and you're prepared to place your business there.
What kind of support can I expect from my insurance broker or agent?
First and foremost, you want your agent or broker to get you the best coverage at the best price. You want them to listen to you as to what your liabilities are, how much property you own, what types of exposures you're worried about, and let them get you an insurance policy that will cover you when the chips are down and you have a loss. And, when you do have a loss, you'd like to have a broker or agent who will help you through that process, because that can be a traumatic time especially if there's any question about whether the loss might or might not be covered. So you'd like to have an agent and broker who's an advocate for you with the insurance company, make sure that you're treated fairly, because the agent and broker's reputation depends to a large extent on how good the experience is with the carrier they place you with. So they have a lot of incentive to try to make sure that you're well taken care of. So you want them to be your advocate.
Who oversees or governs insurance brokers and agents?
Insurance agents, brokers and insurance companies for that matter are actually state regulated. Each state has it's own insurance department. At the head of that department is a commissioner of insurance, or a superintendent of insurance; the titles differ. Some states such as California you elect the insurance commissioner. In New York and in other states the insurance commissioner is elected by the governor. These people watch over rates to make sure people aren't being overcharged. They have market conduct exams to make sure people aren't being cheated in terms of claims and other matters. And if you ever have a complaint about your agent or broker or your insurance company for that matter, you should file it with your state insurance department.
How does an insurance broker or agent get paid?
An insurance agent or broker is normally paid on commission. The commission is paid by the insurance company where they place the business and it is billed into the premium. In other words, the buyer doesn't see any sort of a surcharge and it's not like a restaurant where we have to add 15% for tip or anything like that. An insurance agents commission usually will range from anywhere between 8 to 15% depending on what their relationship is with the carrier. Occasionally there are some bonus commissions that are paid to the insurance agents and brokers, which are usually based on the profitability of the agent's book of business so it's in the agent's interests to try to help you limit the losses as much as possible so that they benefit as well.
Is price all that matters when I'm buying insurance?
Price is very important when buying insurance. Everybody always wants to get something as cheaply as they can. But price is certainly not the only consideration in buying insurance. You'll want to make sure that the company's going to be there to pay the claim when you have one, so it's important to ask your agent about the financial stability of the carriers that they're placing you with. You also want to make sure that it's a service-friendly company. You can ask around with friends and neighbors if they've had experience with that insurer--whether their claim was paid on time; did they respond to any inquiries you have about your coverage in a timely fashion? Etc. All that goes into part of the insurance package, as well as price. It's great to have the cheapest coverage that you can get. But, you don't want to scrimp on coverage and then wind up having more trouble than you should be down the road when you need the insurer to make you whole again.
Will there be a penalty if I cancel my insurance policy?
Well, that's something you really need to focus on with your insurance agent when you take the coverage. The only penalty that you know for sure is if you cancel your insurance coverage and you're not replacing it with something else, you're going to be left exposed to any losses in the interim. So you want to make sure that there are no gaps in the insurance coverage. If you do cancel your insurance coverage, for instance if you're moving, changing homes or something like that, so that you want to end the insurance coverage for the home you're leaving, you want to make sure that your homeowner's insurance for your new dwelling is in place the day you move in. You do not want to leave a gap, because even one hour could leave you exposed for catastrophic loss.
Casualty insurance is a component of the homeowner's policy. Essentially it protects you if someone is injured in your home or you hurt somebody. For example, if someone trips on your stairs, falls on the ice that isn't swept away in front of your house, if you back out of your driveway and hit them, things like this. It also covers some personal property. For instance, if you're burglarized, that would be considered a casualty loss.
What is "property insurance"?
Property insurance, for our context in a homeowner's policy, essentially is the loss of your home, whether there's a fire, whether there is hurricane damage to it, things of that nature. There are also personal property losses. For instance, if you have jewelry, if you have furs, televisions, furniture, satellite dishes, things of this nature, those are all considered personal property.
Do I need insurance?
You certainly do need insurance because if you go bare (the industry phrase for going without insurance) essentially what happens is you are on your own. If anything happens to your home or your property, or you happen to injure somebody else, your assets are at risk. It's out of your own bank account, out of your own pocket. People do need to buy insurance.
How much insurance do I need?
How much insurance you need depends on how much you own. That's a conversation that you should be having with your insurance agent when you sit down to buy coverage. It involves that value of your home and how much property you have: if you're living in a one bedroom apartment you'll need a very different amount of insurance than if you have a three story home filled with furniture, clothing, fine art, etc. The more you have the more insurance you need. You do need to go over this very carefully with your insurance agent to make sure if you do have a loss, everything you did lose will be replaced.
How do I get insurance?
There are a variety of methods that an individual can buy insurance. The method I would prefer is to go to an agent, because frankly insurance is a very, very complicated product, and people always have a million questions to ask. I would strongly emphasize that. But if people would like to shop around, you can get quotes for auto and homeowner's insurance right over the web. There are certain search engines that you can access to put in various factors that will provide you with a quote. A number of insurance companies also have their own individual sites where you can get a quote. There are a variety of companies that market by direct mail. You may get something in your mail saying, do you need auto or homeowner's insurance. But I really believe that with a product like this where if you screw up, you're really on your own, your best bet is to work with a professional, at least someone who can explain to you what is and what is not covered, and can help you through the process if you do unfortunately have a claim at some point.
What are the pros and cons of buying insurance directly from an insurance company?
The popular myth is that it's cheaper to buy directly from an insurance company. That seems to make sense: if you cut out the middleman, that cuts out a cost, therefore you're going to get a cheaper product. That's not always the case unfortunately, because if you don't know exactly what kind of coverage you need, you actually might be buying more than you need and paying more for it, so whatever savings you may have achieved by cutting out the insurance agent may have been lost by the fact that you're buying more insurance than you actually require. Another situation is that if you buy directly from the insurance company, you won't have that intermediary there on your behalf to help you through the process if you do have a claim. Thirdly, and most importantly I think, is if you buy directly from the insurance company, you're only hearing that company's point of view. If you deal with an independent insurance agent, these individuals are licensed to represent a variety of insurance companies and they can put you with the best company at the best price. If you deal directly with a company, you're going to be limited to getting quote, and whatever coverages are offered from that specific insurance company. They will always talk a good game and tell you, "We're always the best, we're the cheapest" etc., but you'll never really know that for sure unless you shop around. I personally think the best way to do that is through an independent insurance agent.
What's the difference between a "captive" and an "independent" insurance agent?
Well it's pretty simple. A "captive" is exactly what it sounds like. They are a captive of the insurance company they work for; they represent solely that one company. So, and it's very easy to pick out these types of agents. If you're walking down your main street wherever you happen to live, if you see the name of the insurance company on the storefront, whether it's Statefarm, Allstate, Prudential, MetLife you will see the, that you know is a captive agent, that is a representative of that company. If, on the other hand, you're walking down the street and you see the John Smith Insurance Agency you know that this individual is an independent agent, he's free to do business with whatever carriers he signs on with, and by definition they're going to have a stable of carriers that can meet a number of your needs, as opposed to just offering you, you know, the offerings of one company, and that's the big difference dealing with an independent agent.
What's the difference between an "insurance agent" and an "insurance broker"?
An insurance agent is someone who is licensed by a carrier to represent them. So technically, they are the insurance company's representative in the market. An "independent agent" can be licensed by a variety of companies while a "captive agent" is usually only licensed by one company. An insurance broker, on the other hand, is legally the representative of the client and is free to place business wherever they can find a market. In reality, however, when you're dealing with personal insurance issues, like auto and homeowner's coverage, ninety-nine percent of the time you're dealing with agents. It's usually the bigger commercial companies that are dealing with the major national insurance brokerages in placing coverage not only here in the United States but overseas. So, for the most part, people are dealing with agents who are legally representatives of the companies that appointed them.
What are the advantages and disadvantages of buying insurance through an agent?
The advantage is of dealing with an agent is the fact that you'll have somebody that can be an expert advisor to you and that can have access, if they're an independent agent, to a multitude of markets, so they'll make sure that you get the right coverage at the best price possible. The disadvantages of working with an agent might be that there's an extra cost involved because you have an intermediary. That's at least the mythology that's out there--that if you cut out the middleman you save money. That's not always the case, because you may save money on premium but you may not be getting the right coverage, which could harm you down the road when it comes time to make a claim. My advice to people is always try to deal with an agent when buying insurance.
What should I consider when choosing an insurance broker or agent?
I think the best advice I can give people when choosing an insurance agent is to deal with a referral if at all possible. Ask your friends: Who is their insurance agent or broker? Are they happy with them? If they are happy with them, what do they like about them? Make your friends articulate the advantages of dealing with this insurance agent because at least in that case, you get some sense that people that you trust have had a good experience with this person in getting price, coverage, and even a claim handled properly, which is really when the money is on the line. My best advice is to do that. Otherwise, just sit down with the insurance agent, talk to them in as much depth as possible, make sure you're comfortable, that you understand their explanations, that they're being patient with you, and giving you full disclosure about what's covered in the policy. Shop around. See more than one insurance agent before you make your decision. You might be comfortable with insurance agent A but when you get to B and C, you find out you and C really hit it off and you're prepared to place your business there.
What kind of support can I expect from my insurance broker or agent?
First and foremost, you want your agent or broker to get you the best coverage at the best price. You want them to listen to you as to what your liabilities are, how much property you own, what types of exposures you're worried about, and let them get you an insurance policy that will cover you when the chips are down and you have a loss. And, when you do have a loss, you'd like to have a broker or agent who will help you through that process, because that can be a traumatic time especially if there's any question about whether the loss might or might not be covered. So you'd like to have an agent and broker who's an advocate for you with the insurance company, make sure that you're treated fairly, because the agent and broker's reputation depends to a large extent on how good the experience is with the carrier they place you with. So they have a lot of incentive to try to make sure that you're well taken care of. So you want them to be your advocate.
Who oversees or governs insurance brokers and agents?
Insurance agents, brokers and insurance companies for that matter are actually state regulated. Each state has it's own insurance department. At the head of that department is a commissioner of insurance, or a superintendent of insurance; the titles differ. Some states such as California you elect the insurance commissioner. In New York and in other states the insurance commissioner is elected by the governor. These people watch over rates to make sure people aren't being overcharged. They have market conduct exams to make sure people aren't being cheated in terms of claims and other matters. And if you ever have a complaint about your agent or broker or your insurance company for that matter, you should file it with your state insurance department.
How does an insurance broker or agent get paid?
An insurance agent or broker is normally paid on commission. The commission is paid by the insurance company where they place the business and it is billed into the premium. In other words, the buyer doesn't see any sort of a surcharge and it's not like a restaurant where we have to add 15% for tip or anything like that. An insurance agents commission usually will range from anywhere between 8 to 15% depending on what their relationship is with the carrier. Occasionally there are some bonus commissions that are paid to the insurance agents and brokers, which are usually based on the profitability of the agent's book of business so it's in the agent's interests to try to help you limit the losses as much as possible so that they benefit as well.
Is price all that matters when I'm buying insurance?
Price is very important when buying insurance. Everybody always wants to get something as cheaply as they can. But price is certainly not the only consideration in buying insurance. You'll want to make sure that the company's going to be there to pay the claim when you have one, so it's important to ask your agent about the financial stability of the carriers that they're placing you with. You also want to make sure that it's a service-friendly company. You can ask around with friends and neighbors if they've had experience with that insurer--whether their claim was paid on time; did they respond to any inquiries you have about your coverage in a timely fashion? Etc. All that goes into part of the insurance package, as well as price. It's great to have the cheapest coverage that you can get. But, you don't want to scrimp on coverage and then wind up having more trouble than you should be down the road when you need the insurer to make you whole again.
Will there be a penalty if I cancel my insurance policy?
Well, that's something you really need to focus on with your insurance agent when you take the coverage. The only penalty that you know for sure is if you cancel your insurance coverage and you're not replacing it with something else, you're going to be left exposed to any losses in the interim. So you want to make sure that there are no gaps in the insurance coverage. If you do cancel your insurance coverage, for instance if you're moving, changing homes or something like that, so that you want to end the insurance coverage for the home you're leaving, you want to make sure that your homeowner's insurance for your new dwelling is in place the day you move in. You do not want to leave a gap, because even one hour could leave you exposed for catastrophic loss.
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