FAQ About Home and Auto Insurance
If you are like most people, you may find home and auto insurance to be just a bit confusing. The secret to understanding all the fine print is to take it slow and easy. Focus on one portion of each policy until it is clearly defined in your mind. Examine a few FAQ about home and auto insurance to help clear up misconceptions and confusion.
Home Insurance
Q: I have insurance, so does that mean everything I own is covered?
A: Not everything you own is insured because you have a home insurance policy. Most homeowner policies insure guns, silverware and jewelry in addition to the home. For example, motor homes and vehicles would require coverage under separate policies.
Q: How do most insurance carriers define replacement cost?
A: Insurance companies replace or repair for the full amount the personal property item that is damaged with a new item or material equal to the quality or type of item that was destroyed or damaged. Some insurance companies may have time limit requirements on the object to be repaired or replaced.
Q: Can I assume my homeowner's policy covers me for living in a hotel in the event a tornado makes the home unlivable?
A: Not necessarily. A lot of homeowner's policies pay hotel living expenses in the event your home cannot be lived in because it is no longer safe, but some do not. This can be one of those fine lines where you had better check your current policy to see if you have this coverage and make changes if desired.
Q: Are trees covered under my home owners policy?
A: In some cases trees are covered, but it can be confusing. If a tree were to fall over on the ground on your property, there is no coverage. There is debris removal coverage on some homeowner policies, which pays to have the tree removed from an insured structure that it fell upon.
Q: Do I get a discount on my homeowners policy if I have smoke alarms installed in my home?
A: In most cases yes. Many insurance carriers provide a discount. The amounts can vary from one company to another. Regardless, it is always a good idea to have them for an early warning system of fire danger.
Auto Insurance
Q: Does every state require auto insurance?
A: Yes all 50 states require that you carry liability insurance or have some form of acceptable proof indicating financial responsibility.
Q: What is the time frame for an insurance company to pay off a claim for comprehensive or collision?
A: These types of claims must be paid in a reasonable and prompt amount of time. That said, investigations and weather conditions can always delay the way claims are handled. Insurance companies are supposed to pay collision and comprehensive claims within a period of seven days after receiving the official claim form indicating repair has been completed on the vehicle.
Q: What causes car insurance to be expensive?
A: In most cases there is no single reason that makes auto insurance expensive, but usually a combination of things. Marital status, sex and age can affect costs. Older drivers for example are usually safer drivers compared to younger people and do not cost as much to insure. Where you live or drive most frequently can affect rates. High crime areas for vandalism and auto theft increase rates. The type of vehicle and coverage you select also affect costs.
Q: You do not really have to keep paying auto insurance premiums after a vehicle is declared to be a total loss do you?
A: As odd as it may seem, yes you do. You must take your license plates over to the division of Registry of Motor Vehicles and fill out a form before you can discontinue paying insurance premiums.
Q: Something damaged the windshield on my vehicle. How do I know if my windshield is covered?
A: It is covered if you carry comprehensive insurance. Normally you are insured for the full replacement cost of the windshield unless you chose the $100 deductible under glass breakage. Then you are responsible for the first $100 of the repair cost.