I get calls from agents, other insurance professionals and clients all the time to help interpret scenarios and policy language so I thought that putting together a top 10 would help.
1. Doesn’t the life insurance I have through my employer mean I don’t need more life insurance?
Answer; Life insurance, if offered by your employer, is great. Usually, you can elect a certain amount without a medical exam. When you leave that job the life insurance stops. With that in mind, I would only use workplace life insurance as a supplement.
2. I have X condition, I can’t qualify for Life Insurance, can I?
Answer; These policies require medical underwriting which normally entails a medical exam of a blood draw, urine sample, height, and weight. Also, they review medical history so if your conditions, like my diabetes, are in control you can qualify for coverage.
3. What if I don’t tell the insurance company about my claims or driving history?
Answer; Most people these days assume that Facebook, Amazon, and Google know everything. Well, generally, to get a qualified auto rate or any rate, insurance companies subscribe to reporting bureaus that report claims or loss history as well as tickets and accidents.
4. My last insurance company denied a claim for my leaking roof, will you cover that?
Answer; Most insurance policies do not cover maintenance issues. Typically, the loss must be sudden and accidental like a burst pipe, wind damage to the home because of a storm, or a house fire to trigger coverage.
5. As a business owner, if I fire an employee and get sued, can you help cover that?
Answer; Yes, we can help cover that. Employment Practices Liability Insurance (EPLI) provides coverage against claims made by employees for discrimination, wrongful termination, and other employment issues like failure to promote an employee. The 2017 Hiscox Guide to Employee Lawsuits stated that a study of 1,214 closed claims of medium to small-sized companies cost an average of $160,000!
6. What is a deductible?
A deductible is the dollar amount of damage that you as the policyholder are responsible for paying. If you have a $500 deductible and suffer a loss of $200 the insurance company does not have an obligation to pay as the loss or damages are less than the $500 deductible. If you have the same $500 deductible and have a loss of $1,000 you would be owed $500 from the insurance company.
7. My child was mowing a lawn and put a rock through my side window, it shattered, can I get a rental car while it is being repaired?
Answer; There are a few things that must happen for rental car coverage to apply to a loss. First, your car must be incapacitated by a covered loss. You must pay for rental car coverage on your policy. The damage to the vehicle must be more than your deductible! If you have a $500 deductible and the damage to the window is $485.00, you won’t qualify for rental car coverage.
8. What is a home warranty and why would I need one?
Answer; A home warranty can help cover major systems in your home like Air Conditioning, Electrical, and Hot Water Heaters. It can also cover major appliances like the washer, dryer, refrigerator, and oven. There are also options to cover both systems and appliances. It can fill gaps in your home policy.
9. What is Umbrella Insurance and why would I need that?
Answer; A personal umbrella insurance policy provides additional liability coverage to the automobile, home, and other personal liability coverages you have in place. The same can be said for business owners as well. A business umbrella policy provides additional liability coverage to the liability coverage the business owner has on the business policy. When you consider that Life Flight can run from $19,993 to over $100,000 and the fact that a day in the hospital can be more than $3,000 you want to make sure you have enough coverage to avoid reaching into your own bank account.
10. I am a small business owner; do I have to worry about data breach coverage?
Answer; The cost per data record, according to the 2017 Cost of Data Breach Study, is $141 per data record. If you have 10,000 customers that calculate to $1,410,000. Cyber liability can help mitigate this disaster that can end most small businesses.
We answer questions and help people find the right insurance for there needs every day. If you need assistance, give us a call at 971-303-8508.