FREQUENTLY ASKED QUESTIONS


1. Does my car insurance provide coverage for a vacation rental car?
Yes.  Most car insurance policies provide the same coverage for rental vehicles as provided for your own vehicles, for up to 30 days.  An additional coverage that may be needed is “loss-of-rents.”  This coverage allows the car rental company to recoup funds lost as a result of not being able to rent a car due to loss on your behalf.
2. What is the difference between Collision and Comprehensive Coverage?
Collision covers accidental loss or damage to your vehicle because of a collision with an object or another vehicle or if the vehicle rolls over. Comprehensive covers losses named in the policy that are not collision losses. Examples of comprehensive losses include: vandalism, theft, fire and hail.
3. Why must I list all household members if they do not drive my car?
For coverage purposes, all family members of driving age who are residents of the household must be listed on your policy to protect both you and the insurance company.  In some states, exclusions are available for family household residents who do not require coverage.
4. Who do you consider to be a family member?
A family member is any immediate or extended family member of driving age.  This includes parents, children, siblings, grandparents, aunts, uncles, cousins, foster children, in-laws and stepfamily members.
5. What is Replacement Cost?
Replacement cost is the amount it would take to replace or rebuild your home or repair damage with materials of similar kind and quality without any deduction for depreciation.
6. What affects homeowner insurance premiums?
A number of factors influence the premium that you may be charged.  Some of them are:
Type of Construction - Brick houses usually have lower premium rates because they are less vulnerable to fire.
Age of the House - Newer houses usually have lower premium rates than older ones.  Some insurers may not want to cover very old houses at all or may provide only limited coverage.
Fire Protection - Your home’s distance from a fire hydrant and the quality of your local fire department affect the price you will be charged.
Amount of Coverage – The amount of coverage you buy will affect the price you pay.
Deductible Amount - The higher deductible you choose, the lower your premium will be.
Discounts - There may be discounts available for such things as smoke alarms or security systems.
7. If a tree falls on my house from my neighbor’s yard, who pays for the damage?
Homeowners insurance allows the policyholder to quickly make a claim regardless of liability. In other words, if a tree falls on your home, no matter where the tree came from, your insurance company can pay for your home repair.
However, if the damage occurred as a result of negligence; for instance, if the tree was dead before it fell, and you had proof that your neighbor knew the tree was dead. Under those circumstances, the damage becomes your neighbor’s liability.
If the claim is filed with your insurance company, it will attempt to recover their payment and your deductible from the at fault party.