FAQs

Here are a few things you should consider when you purchase homeowners insurance.

1. 1. One of the most important things to consider is how much it would cost to replace your home.  Most companies require that you insure your home for 100% of its replacement cost. The replacement cost is different than the purchase price or the tax assessed value.  In the event of a loss, some companies may apply a co-insurance penalty if you underinsure your home. 
2. 2. Determine the amount of property insurance coverage that you need to cover your personal belongings.  Many companies automatically extend a certain percentage of the dwelling amount to personal property. This may or may not be increased/decreased depending on the company.
3. 3. Determine the amount of personal liability coverage that you need. Choosing higher limits such as $500,000 or $1,000,000 is usually a bargain as the cost is very minimal.
4. 4. Determine any additional endorsements you may want to add to your policy. For example, do you want the personal property replacement cost endorsement or earthquake coverage?
5. 5. Homeowner policies have maximum limits for some specific categories such as jewelry, furs, fine arts etc. If you own property in these categories, you may want to consider insuring them separately

When shopping for homeowners insurance, be careful to make sure each insurer is offering comparable coverage. Many insurers use the “Insurance Services Office” (ISO) policy forms as a starting point and add many additional and/or optional coverages. Your insurance professional will be happy to review and explain the differences between companies and coverages.
Another way to lower the cost of your homeowners insurance is to raise your deductible. Increasing your deductible from $250 or $500 to $1,000 or higher will lower your premium. You need to determine how much of any loss you can comfortably retain based on the financial resources you have available.

Another way to lower the cost of your homeowners insurance is to look for any discounts that you may qualify for. Many insurers will offer a discount when you place both your automobile and homeowners insurance with them. Insurers may also offer discounts if your home has a security system. Be sure to ask your insurance professional about any discounts that you may qualify for.

1. 1. First and foremost determine what the financial responsibility requirements are for your state. In some states Automobile insurance is mandatory and may include No fault coverage for medical claims. There also may be minimum limits that you are required to carry. Your insurance professional will be able to provide this ionformation.
2. 2. Base your decision on value and not on price alone. Consider the quality of the company’s claims service and consumer education. The company you choose should be rated A- or better by A.M. Best, as they are the authority for insurance company rating.
3. 3. Purchase the amount of liability coverage, which makes sense for you. While minimum limits may allow you to comply with state regulations they may not provide the protection you need to protect other assets you own.
4. 4. You should decide which optional coverage you want. For example, do you want optional physical damage coverage or is the market value of your vehicle too low to warrant purchasing this coverage. Physical damage coverage will be required if you have an outstanding loan on your vehicle.

When shopping for auto insurance make sure each insurer is offering the same or comparable coverage. Many insurers use the “Insurance Services Office” (ISO) policy forms, but this is not always the case.
An easy way to lower the cost of your automobile insurance is to increase the deductibles on your Comprehensive and Collision coverage. Simply raising your deductible from $250 to $500 or $1,000 will lower your premium. You need to determine how much of any loss you can comfortably retain based on the financial resources you have available.

Another way to lower the cost of your automobile insurance is to look for any discounts that you may qualify for. For example, many insurers will offer you a discount if you insure multiple cars under the same policy, or if you have had a driver education class in the last five years. Be sure to ask your agent or your company about their discount plans.

Collision losses occur when your automobile collides with another car or object.  When that happens the damages to your car will be paid under your collision coverage.
Comprehensive provides coverage for most other direct physical damage losses you could incur and include damage to your car from a hailstorm, theft, vandalism, glass breakage etc. will be covered under comprehensive coverage.

The deductibles under the collision and comprehensive coverage are often different.

Several factors can affect the premium you pay for your automobile insurance.

Characteristics that affect the cost of your insurance include the type of car you drive. Using your car to commute to work or school, your driving record (Motor Vehicle Record on file with the State), where you garage the car, and your credit worthiness can all affect how much your automobile insurance will cost you.