Frequently Asked Questions

As you apply for insurance, the companies will need identifiable information to assess the proper premium for insuring you, whether it is home, auto, renters, umbrella, the list goes on. This will include Name, Current and Prior Addresses, Age and Gender. This will be used to check credit and loss history.

Independent agents represent you, the policyholder, not the insurance companies. They have access to multiple companies to price the insurance you need. A franchise, or captive agent,represents one brand of insurance companies and can provide you with that single option. Often this means needing to quote with multiple agents to make sure you are receiving the broadest coverage for the lowest premium available.

A bundle is referred to insuring multiple lines of coverage with the same insurance company, i.e. home, auto, umbrella, jewelry etc.This is a common way of reducing the cost per policy. ATTENTION FLORIDA POLICY HOLDERS – Given the complex nature of insuring in Florida between Hurricanes, Floods, Sinkholes and our Laws there are very few companies actually “bundling” your coverages. Rather some companies actually insure one policy like car insurance and internally broker the other lines with different companies yet say the insurance as all with the same company. Make sure to check the insurance company stated on each insurance policy to see if you have a“bundle”or you could be paying too much.

Historically this has been a factor in determining auto insurance only. Some companies are beginning to use credit on other types of coverages, but not as common.

An escrow account is an account in which a borrower’s property taxes and/or insurance are held in trust. Because Lenders require that the properties they lend to purchase are insured and taxes are paid they often require the escrow account. As such,the prior year’s annual property tax and insurance are divided evenly amongst the monthly mortgage payments. When taxes are due (usually in the Fall) and insurance (annually renewing on the date of purchase of the property) the Lender remits the payments with the funds it has “escrowed” from the borrower. If the property is sold, any funds in escrow in excess of what is owed as of that date of sale will be returned to the borrower.

An additional insured is a personal or entity that is added to an insurance policy to transfer its risk onto that of the policy holder. This is done due to a contractual relationship between the parties with the policyholder needing to assume liability of the additional insured. Example: A homeowner is seeking renovations on their home. When hiring the General Contractor the homeowner wants to ensure any damages to the home, any bodily injuries due to theworkor any injuries to the employees of the contractor while on site are the responsibility of the General Contractor and do not require them to file against their homeowners policy. As such the homeowner requests to be added as an additional insured on the general liability, automobile and workers compensation insurance of the General Contractor to have rights to those policies instead.

An additional interest is a person or entity seeking rights to the policy due to a financial relationship with a policyholder. In the event of a claim they along with the policyholder would be able to recoup their investment. Examples: Lenders require being named as an Additional Interest (or Mortgagee) on a home they lend to purchase, a car leasing requires naming the Lender as an Additional Interest (or Lienholder).

Coverage A of a standard homeowners policy is Dwelling Coverage. This is the total amount available to pay for the repair or rebuilding of the structure of the home and anything permanently attached. Common items would be the roof, walls, electrical, plumbing, HVAC systems etc. This is not the amount used to pay for your contents including furniture, clothing, TVs, books, etc.

Coverage C of a standard homeowners policy is Personal Property also referred to as Contents.This is the total amount available to replace the items of your home if lost due to a covered peril on a policy, whether it be a fire, water damage or theft. Common items that belong in this limit are furniture, clothing, electronics, dishes, musical instruments, toys, etc.

Replacement Cost and Actual Cash Value are considered ValuationTypes.At the time of a loss, a claims adjuster will need to calculate the value of the property lost. Replacement cost is considered the current price (labor and materials) to repair or replace the damaged property up to the policy limit. If the policy is issued with Actual Cash Value, the adjusters will calculate the value of the damages as of the time of the claim based on the useful life remaining and pay the depreciated value of damaged property.

When purchasing auto insurance you have the option to carry “comprehensive” and/or “collision” coverage on your vehicle. Doing so is typically referred to as having “Full Coverage”. Comprehensive Coverage protects your vehicle from damage unrelated to an accident, such as a tree branch falling on it or hitting an animal, whereas Collision Coverage protects against collisions with another vehicle or object.

Uninsured/Underinsured motorist coverage pays for medical bills and/or damage to your vehicle if the at-fault driver has no insurance or insufficient amount of coverage. It is extremely important coverage especially in Florida as there is no state law requiring drivers to purchase Bodily Injury coverage, which would pay for your and your passengers’ injuries.  We do not suggest clients rely on their health insurance for a few important reasons:

1. Health Insurance doesn’t pay for lost wages or pain and suffering, only your medical treatment.
2. If you are insured through an Obamacare program there are huge deductibles and copays. Why would you pay these if involved in an auto accident that isn’t your fault?
3. People change jobs much more often than in the past. Do they really understand their benefits well enough to know?  What if they lose their job and lose insurance?  Moreover, they likely will not remember to call their auto agent to add UM coverage.
4. Often there are people in your vehicle that don’t have health insurance. What happens if they are injured and you don’t have uninsured motorist coverage?
5. Many physicians will not care for patients involved in a motor vehicle accident given the complexity in being reimbursed.

A personal umbrella policy provides additional liability coverage beyond the individual liability limits of your homeowners, auto, and boat insurance policies. It can help protect you from large lawsuits by providing additional coverage when the liability limits of your primary policies have been reached or in fact fill in and pay claims the primary policies don’t cover, subject to policy provisions.