AUTO INSURANCE
How does where I live affect my premium?
Where you keep your car directly affects your chances of having an accident
or becoming a victim of theft or vandalism. The likelihood of encountering
these problems increases in larger, more densely populated cities, while
such incidents remain relatively low in rural areas.
Additionally, the time and efficiency of police response and law
enforcement, local road and traffic conditions, and the quality of local
medical services can affect regional insurance rates. Some insurers even
factor in the litigation rates in a given area (how many lawsuits are filed,
go to trial, out of court settlements, and their amounts).
Do all states require some kind of Liability insurance?
No. Although not every state requires Auto insurance, some have “financial
responsibility” laws mandating all drivers to be able to pay for any damage
or injury they might cause. However, Liability insurance is still the best
way for you to meet your state's financial responsibility requirements.
By
law, all states offer UM and UIM policies, including no-fault states. In
fact, some states require all motorists to carry this coverage in order to
gain protection from inadequate insurance coverage of other drivers.
How do I keep my insurance company from canceling my policy?
Besides maintaining a clean driving record, consider investing in special
safety and security features for your car. If you've been in an accident,
consider taking a defensive driving course.
What happens when I loan my car to someone? Is that person covered
by my policy? Am I still covered?
Yes. Liability and coverage for Physical Damage (i.e. Comprehensive and
Collision) always follow your car. Plus, if the driver of your car is
insured, his/her policy will also be available to cover the cost of damages
and injuries.
The same rules apply when you borrow someone else's vehicle; your own
insurance follows you no matter whose car you're driving. But the vehicle
owner's policy is the key coverage in the event of an accident.
Am I covered for natural disasters or “Acts of God”?
Comprehensive insurance, which covers you for fire and theft, generally
covers you against damage by flood, earthquake, hail, and other natural
perils, except when your car is overturned (which is technically considered
a collision). If you have specific concerns about the safety of your vehicle
in natural disasters, contact us for information on catastrophic coverage.
How can I challenge my insurers if they refuse to cover a claim?
Usually, insurers that refuse to cover a claim have a strong legal reason
for doing so — even if you disagree. First, contact us if you feel you're
being treated unfairly. Your agent is your strongest advocate in insurance
matters. But if it's a legal problem, you might have to hire a lawyer.
HOMEOWNERS INSURANCE
Who decides on the type of insurance, the mortgage company or me?
You do. The
mortgage company collects a set amount from you each month in order to
protect their investment. This money is put in escrow and covers your
insurance and taxes. However, the policy is still yours and you might select
the insurance you feel offers the best coverage at the best rates.
What exactly does a Homeowners policy cover?
“Exact”
coverage is impossible to define because there are different policies and
about 900 insurance companies writing Property/Casualty business in the
United States. However, 80% of Homeowners policies are based on a standard
form. All Homeowners policies cover two important areas: Property and
Liability.
Property
insurance covers your structures and possessions. Personal Liability, as its
name implies, means you're legally obligated to pay money to another person
for actions caused by you, your family, or your property. That liability
extends to medical payments to others for injuries caused by you or your
family.
Are floods, earthquakes, and other natural disasters covered?
Most
catastrophes are covered. Flood and earthquake damage, however, are not
covered by a standard policy and both perils are more common than many
people realize. We can advise you on such normally excluded conditions as
floods and earthquakes.
Are there exclusions I should know about?
Exclusions
listed and defined in your policy might include neglect, intentional loss,
“earth movement,” general power failure, and even damage caused by war. If
you fail to take care of your property (e.g., a leaky roof), you might not
be covered. Obviously, if you intend to lose an object or damage your
property, there's no coverage.
One other
exclusion that can be costly is the Ordinance or Law exclusion. Building
codes established by governmental bodies that drive up the cost of
rebuilding or repairing after a loss occurs might not be covered by your
insurance policy. Thus, if you discover when replacing damaged property that
current law demands higher grade or more expensive materials than those
you're replacing, the new materials might not be covered fully.
RENTERS INSURANCE
How expensive is renters insurance?
Renters
insurance is typically available for as little as $100 a year.
Does my landlord's insurance protect me?
Generally,
no. The property owner's insurance covers the building itself and seldom a
tenant's possessions or liability. Clarify this with your landlord before
signing a lease.
BUSINESS INSURANCE
I'm just getting my business started. Do I need insurance
immediately?
Yes. Your
chance of suffering a loss begins with the first day of business. If you
suffer a loss and have no insurance or have improper or insufficient
coverage, your insurance agent can do little, if anything, to help you.
Also, many
states and local jurisdictions require businesses to have insurance to begin
operating. And if you rent space for your business, your landlord probably
requires you to obtain adequate insurance.
I don't have any major business assets. Why do I need insurance?
Every
business has some property. When you think about it, your business is your
property. Just like your home and your car, your business needs to be
protected from loss, damage, and liability. In addition, your business is
your source of income, so you need protection from the potential loss of
that income.
Does insurance coverage vary for different businesses?
It can. Many
small businesses opt for package policies that cover the major Property and
Liability exposures as well as for a loss of income. A common package policy
used by many small businesses is called the Business Owners Policy (BOP).
Generally,
BOPs provide more complete coverage at a lower price than separate policies
for each type of insurance needed. We can help you decide which policy or
policies are right for your business. You can also purchase additional
coverage for perils or conditions otherwise excluded (e.g., flood
protection) as endorsements to a standard policy or as a separate, second
policy called a Difference in Conditions (DIC) policy.
We can advise
you of the best policy (or policies) to protect you and your business.
STUDENT/RECENT GRADUATE INSURANCE
I'm
a college student. Am I still covered by my parents' policies?
It depends on
the policy and its terms. For example, most Health insurance policies cover
insured's' children up to age 18, or up to 22 if the child continues as a
full-time student. If you’re over 18 and not a full-time student, you’ll
need your own Health insurance policy.
What kinds of risks do college students face?
College
students face many new risks as they head off to school: theft of personal
property, auto accidents due to driving long distances, and risks related to
attending and giving parties.
How extensive are these risks?
College and
university campuses aren’t immune to property crime. A 1995 FBI study
reported that there were more than 100,000 property crimes on college
nationwide, including burglary, theft, motor vehicle theft, and arson.
Thieves took an average of $1,251 of property per offense that same year.
At least one
in 10 college students revealed that they had caused an auto accident in the
last two years. One in four had a speeding ticket or other moving violation.
These and other offenses contribute to higher Auto insurance premiums for
students.
Davis
and Associates Commercial Insurance Services
217 South Porter Drive
Richmond, KY, 40475
Phone: (859) 623-6692
Fax: (859) 623-8557
E-Mail:
rdins@bellsouth.net
