FAQs
Why do I need to buy insurance?
Protects
your assets against attachment as a result of a court award.
Provides for cost of defense when you are sued.
Allows you to purchase such high value items as a car or
a home by insuring the collateral on behalf of the financial
institution that lent you the money.
Provides financial security for your family in the event
of your death.
Provides for the health care of you and your family through
systematic payments.
Allows you to save for retirement while deferring interest
payments to a time when your income is lower, thus reducing
your tax payments.
Allows you to remain financially solvent when you're ill
and can't work.
What factors affect the insurance premiums I pay?
Claims
activity including such costs as medical care, auto body
repair, construction, legal defense, jury awards, claims
adjustment, and insurance fraud.
Overhead including rent, utilities, employee salaries and
benefits, office supplies, equipment, and furniture.
Investment income.
AUTO
INSURANCE
How
does where I live affect my premium?
Yes.
Where you garage 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. Massachusetts
even factors in the litigation rates in a given city/town
(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. While
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 increasing my rates
or 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 and obey the laws and rules of the road. Of course,
always pay your premium on time to avoid cancellation.
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 $150 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.
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