8 Most Common Insurance Questions
1. Does my credit score affect my insurance premium?
Yes, it could. Research shows that there is a direct correlation between credit scores and individuals involved in accidents and cancellation policies due to non-payment. This causes individuals with lower credit scores to pay higher premiums.
2. Do I need to purchase rental car insurance when renting a car?
Every insurance carrier covers rental cars differently. Some may provide a small amount of coverage and some may not provide coverage at all. Never assume that the car is covered, to be sure, contact your insurance guide.
3. If my valuable jewelry is stolen during a home invasion, will the jewelry be covered under my homeowners insurance policy?
Most homeowners policies provide little to no coverage for jewelry. Depending on the value of the jewelry, you may want to consider purchasing personal property insurance, which provides additional coverage for the jewelry.
4. What factors should I consider to determine if I am getting good value for my homeowners insurance premium?
It is a fact that most homes are underinsured. During every renewal, ask your Insurance guide questions about what is covered under the policy as well as optional coverages, like flood, earthquake, fire, etc. Then choose a deductible that’s right for you. The higher the deductible, the lower your premium. A high deductible is fine, but make sure you have the money for out-of-pocket expenses if something should happen.
5. What is NOT Covered on my Homeowners Insurance Policy?
Every homeowners policy is unique, but in many cases, you need extended insurance to cover things like by-laws, Earthquake, Flood, and Intentional Acts. These optional coverages do not come standard on most policies. Also, standard wear and tear is not covered and typically isn’t coverable.
6. How is condo insurance different from homeowners insurance?
When you purchase a condominium, you are not purchasing the building; you are purchasing a unit inside the building. You are also most likely a part of a condo corporation that fixes external structural damages. Homeowners insurance covers the structure as well as the contents inside the home.
7. What is the difference between general and professional liability insurance for my business?
General liability protects you against claims for bodily injury and property damage, such as someone tripping over a cord in the office and falling. Professional liability is insurance that protects you and your staff against negligence claims relating to your delivery of professional services; for example, offering what someone perceived as bad advice.
8. I own a home-based business, do I need insurance?
An extremely small business, such as a business operated by one or two people out of a home, may not need workers compensation insurance, but it often needs more property and liability insurance than is provided in a typical homeowners policy.