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Insurance Faqs

Insurance Faqs

Without risk there is no reward. Risk is everywhere: When you drive your kids to school, when you travel to a country, when you ride your bike on the highway, when you get sick from a bug like Covid. Here in our Insurance FAQ we have attempted to answer some basic question you have about the type of insurance you have purchased. 

These Insurance FAQ explains everything from the insurance process to basic terminology. You can even look up specific questions for a particular kind of insurance you are planning to purchase. Below are some of the top insurance FAQ that people have about insurance. If you don’t find the answer to your question, call us at CompareAquote directly and we will be happy to answer your question.

Motorcycle Insurance

Make, model, year, driving record, and kind of coverage you are looking for. The location also affects your rates.

All 49 states require motorcycle insurance except for Florida does not require it. 25/50/10 are the three limits that are required, $25,000 in bodily injury per person protection, $50,000 per accident and $10,000property damage

 

RV/trailer Insurance

It is similar to an auto insurance policy and varies by state. The three coverages are liability, collision, and comprehensive if there are lawsuits, accidents, or natural disasters.

RVs are big so liability coverage has to be sufficient, usually, RV insurance will cover motorhome liability but the liability of a travel trailer is from the towing vehicle. An Umbrella policy is a good idea to limit your liability.

Auto insurance will only cover your trailer when it is hooked up and will not cover your motorhome. Also, auto insurance does not cover repair expenses when it is not attached to your towing vehicle, so no damage, theft or vandalism is not covered. Hence, the need for RV coverage specific for the RV so you have coverage on a campsite, when it is not hooked up or in storage.

RV insurance can give you roadside assistance, RV replacement, collision coverage and liability if the trailer gets unhitched. If you live in your motorhome full time then some insurance companies give you coverage similar to homeowners insurance

Off road insurance

If you have a snowmobile, ATV, or a golf cart, your homeowner’s policy gives little or no protection especially if you are not on your property. Hence, a specific off-road policy is needed that covers collision, Bodily injury, property damage, and comprehensive coverage may cover theft or damage.

You need to protect your off-road vehicle with off-road insurance, since your off-road vehicle isn’t street legal your auto insurance or your homeowners will not cover it.

ATV insurance

An All-Terrain vehicle is an expensive piece of equipment so a comprehensive insurance is recommended and if you ride in state parks, insurance may be required.

Crop Insurance

Yes, drought is covered through crop insurance. Crop insurance is purchased by farmers to cover natural disasters like drought, flood, hail and also covers revenue loss in case of a commodity price drop.

Crop insurance does not cover negligence, damage from pesticides and if good farming practices are not followed

Truck insurance

Insuring a truck or a semi and calculating its premium is a lot more complicated than SUV or a pick up. A lot of factors help calculate the premium plus any discounts, if applicable. It includes:

-Type of vehicle

– What kind of cargo

– The weight of the truck

– Driving experience

– Credit, ticket and accident history

– Driving distance & insurance history

Commercial auto insurance is required by truck drivers. It is recommended that drivers also carry business interruption, general liability, and motor cargo coverage to protect them from being sued or other losses

Contractor insurance

Insuring a truck or a semi and calculating its premium is a lot more complicated than SUV or a pick up. A lot of factors help calculate the premium plus any discounts, if applicable. It includes:

-Type of vehicle

– What kind of cargo

– The weight of the truck

– Driving experience

– Credit, ticket and accident history

– Driving distance & insurance history

Any third party claims that come up due to the operations of the contractor’s business are covered by the general liability policy. It does not cover negligence and faulty work.

Equipment floater insurance protects your tools, moveable, and all the equipment at different sites. This protects all contractors‘ equipment and also provides for repairs and coverage for thefts and stolen equipment or tools.

Umbrella insurance

Umbrella insurance takes over where your liability insurance finishes, thus it covers lawsuits against you, your family, defamation and a host of other liabilities. We recommend that you should really understand umbrella policies because for businesses this is the coverage that can make the difference between surviving or shutting the doors.

Before buying an umbrella policy, calculate your net worth, your potential income and future income potential because that is what you stand to lose if you are sued.

Auto Insurance

The rule is 100/300/100 for best liability coverage. This way you get $100,000 per accident in property damage $300,000 per accident in bodily injury and $100,000 per person. This will give you full protection in case you are in an at fault accident.

Whoever is at fault that persons Insurance Company will pay for the damages to your car, Personal injury protection will pay the medical bills and other financial losses.

Boat insurance

The Insurance policy pays for loss or damage which means agreed value coverage. The face amount of the policy will be paid in case there is a total loss.

Just like car insurance where a new driver pays more for insurance, same is the case with boat insurance. Experience is one of the factors used for rating so lesser the experience, higher the premium. It is better to choose smaller boat as your first vessel

Classic car insurance

To insure your classic car, first Insurance Company and you should reach an agreement on the value, the classic car will be covered to that value without depreciation. Some of the coverage’s that one should look at is repair, restoration, special towing and spare parts

Since classic cars are a specialty product, it is more expensive to get coverage than a regular Auto Insurance policy.

Wedding and event insurance

Whether it’s an audience of ten thousand or something more intimate, you open your space to the public, and to the people who know how to draw a crowd. This, in turn, exposes you and your venue to certain risks that can be managed with the right kind of venue insurance. Whether you need stadium insurance or community theatre insurance or amphitheater insurance or auditorium insurance or concert hall insurance or insurance for an outdoor stage, you are responsible for the safety of the public and performers and you could become liable if someone is injured at your venue. You also have to be concerned with potential damage to property, performance cancellations, the care and conduct of your employees… then there’s all the stuff you never could have predicted!

Wedding insurance, also known as special event insurance, covers couples against losses due to circumstances outside of their control. Depending on the type of coverage you purchase, you can protect yourself financially from a wide range of circumstances, such as problems with vendors, illness or injury, extreme weather, military deployment, lost or stolen gifts, and damage to wedding attire. Your wedding day might go perfectly — or there could be trouble that gets expensive quickly. Recent events have reminded us all that anything can happen to derail even the best-laid plans.

Art insurance

An updated evaluation from an expert is needed to ascertain the value of an artwork to be able to get a fair value claim. Factors that determine the value are artist, date, market value and the art sold previously by the artist, athlete autograph memorabilia etc. through galleries and auctions.

The motivation to take out an art insurance policy extends beyond theft. In fact, 47 percent of art loss is attributed to damage during transit according to The New York Times. Insurance companies will send art appraisers to determine the replacement value – not the purchase value – of your collection to ensure that you have adequate coverage.

Ultimately, the benefit of art insurance is to recoup the value of your lost or damaged art in its entirety. If your personal collection, including jewelry, watches and other collectibles, is valued greater than the low four figures, chances are your homeowners’ insurance will not properly recoup damages. While, many pieces of art are not replaceable, and insurance will not recoup any emotional loss, ultimately, art is an investment, which deserves protection

Cyber Insurance
 

Cyber insurance or cyber liability insurance protects companies from damages and liabilities that arise as the result of hacks, malware attacks or data breaches. As a relatively new branch of the insurance industry, there is no clear standard for what a cyber insurance policy must and must not include. Policies typically cover costs that are directly associated with a security breach: documenting and investigating the attack, data recovery and hardware repairs, notifying consumers and regulatory agencies, crisis management and PR damage control, etc.

While cyber insurance provides financial protection for businesses with respect to their digital assets, it doesn’t cover every possible risk and cost. Some things a typical cyber insurance policy might exclude are:

  • Upgrades: If you suffer a data breach and decide to upgrade your systems afterward to prevent future incidents, your policy may not cover the upgrades.
  • Future Profits: Cyber policies don’t usually cover potential future profits that may be lost—due to reputational damage caused by a breach, for example.
  • Decreased Valuation: If a cyber criminal steals intellectual property and the theft results in a decrease in the company’s valuation, a cyber insurance policy may not cover the loss.
Condo Insurance

Because co-op and condominium owners share their building structures, two policies—a master policy and an individual policy—are required to fully protect all parties involved. a master policy for the building, and an individual policy to cover you for liability, to protect your belongings and to insure any apartment structural elements that are not covered by the master policy.

Condo owners are responsible for insuring and securing their personal space and property, the association is responsible for all common areas. As such, it’s important for condo associations to have the right insurance policy to protect. Your insurance needs will be determined by your association’s operational practices, governing rules, and type of property.

Flood Insurance

Most homeowners insurance policies won’t cover any type of flooding that originates outside of your home, meaning that floods caused by heavy rains, coastal waves or tide, groundwater, or spring thaws are not covered. To cover your home and personal belongings against natural floods, you’ll need flood insurance, which you should be able to find through your homeowners’ insurance provider.

If your basement floods because of a sewer backup, that also isn’t covered. Most home insurers offer additional coverage to protect your home and personal property against sewer and sump pump backups, which are a common cause of basement flooding. Most insurers offer up to $25,000 in water backup coverage that you can add onto your policy for a reasonable amount.

While it’s not required, flood insurance can be a beneficial supplemental insurance coverage for renters. Depending on where you live, It can be as important as your basic renters insurance itself.

Even one inch of water damage can cost thousands of dollars in damage. The average estimated cost for 1-4 inches of water is $7,800.

Fixing a small area of your carpet can cost $300 alone. Then you have to replace all of your furniture and other contents that got damaged.

Renters typically ignore flood insurance because they aren’t responsible for the structure of their home. While that’s true, you’re still responsible for all of your contents inside the structure. Everything you own is yours to insure.

Renters

Renters insurance typically includes three types of coverage: Personal property, liability and additional living expenses. Personal property coverage can help pay to replace your belongings if they’re stolen or damaged by a covered risk.

These are the major events that renters insurance does not cover:

Floods

Sinkholes

Earthquakes

Bed bugs and other pests

Damage to or theft of car

Damage to or theft of your roommate’s belongings

Homeowners Insurance

Wind and hail are the most common claims home insurers see, especially in the northeast. Windstorms and hailstorms are hard to prevent, even if you maintain your home regularly. Wind and hail can knock trees into your house, pull off your siding, destroy your roof, and blow in your windows. Tornadoes and hurricanes can also cause severe damage to the structure of your home, which can displace your family and put a serious dent in your wallet.

If disaster strikes, you’ll want enough homeowners insurance to rebuild the structure of your home, to help replace your belongings, to defray costs if you’re unable to live in your home and to protect your financial assets in the event of liability to others. Use these guidelines to help determine the coverage and amounts you need.

Business Insurance

There are about 30.7 million small businesses in the United States. If you’re the owner of one of these small businesses, you already know that there is a lot of work that goes into operating a business.

If something happened that you did not anticipate, would your business be safe? Not all small businesses have the insurance they should and, as a result, they are at risk.

Most small businesses need at least a few insurance plans. These will include:

  • Workers’ compensation insurance
  • Liability insurance
  • Employers’ liability insurance
  • Property insurance
  • Cyber insurance

Many business owners start with a Business Owner’s Policy (BOP) for their small business insurance needs. It combines three essential coverages:

  • General liability insurance
  • Commercial property insurance
  • Business income insurance

No single policy protects against all business risks. Different types of business insurance protect against customer injuries, property damage, cyberattacks, and other threats to your business.

Commercial auto Insurance

If you own, lease, hire or use vehicles for business, you should minimally carry liability coverage. It’s mandatory in most states for owned autos. In addition, businesses that move goods or people across state lines are required by federal law to have it. For larger commercial vehicles, you may need a commercial truck insurance policy.

You need commercial auto insurance for vehicles that:

  • Are used for business.
  • Carry a commercial license plate or tag.
  • Are registered commercial.

Commercial vehicle insurance is needed to cover the cars, trucks, and vans used in conducting your business. Large fleets, as well as small businesses, should be properly covered by a commercial auto insurance policy.

General liability Insurance

General Liability provides a financial safety net in case you’re sued for an injury that occurred at your business, for damaging a visitor’s property, or causing an advertising injury, such as slander, copyright violation, or libel.

In cases of serious property damage or injuries, settlements and court judgments can easily bankrupt a small business. For this reason, general liability insurance is one of the most common insurance policies.

For cases of serious property damage or injuries, settlements and court judgments can easily bankrupt a small business. For this reason, general liability insurance is one of the most common insurance policies.

Almost every small business needs general liability insurance since a large bodily injury or property damage claim can be a serious financial threat.  

Personal liability Insurance

Personal liability coverage is the portion of your homeowners insurance policy that pays for legal, medical, and repair bills if someone is injured or their property is damaged and you’re found legally responsible. You generally want enough personal liability insurance to cover the value of everything you own.

Personal injury liability insurance sounds like it would cover the same as general liability insurance, but it’s actually a bit different. It protects you and your family from lawsuits relating to libel and slander. This can include comments that you or they may make on public websites or social media accounts. Whereas General Liability, It covers you and your family for bodily injury and/or property damage for which you may be held liable.

Life insurance

Here’s what you might include in “financial obligations you want to cover”:

  • Income replacement:Multiply the salary you want to replace for the number of years you want to replace it. You want this income replacement to cover current and future expenses.
  • A mortgage:You can include the balance of a mortgage so your family can stay in their home without fear of losing it. If income replacement (above) would already cover mortgage payments and other expenses, no need to add more mortgage money.
  • Other large debts:Would your family struggle with other large debts if you passed away unexpectedly? If so, add those in.
  • Children’s college tuition:Add tuition money to ensure your children can pay for college if you were no longer around.

Term life insurance is perhaps the easiest to understand, because it’s straightforward insurance, without the bells and whistles. The only reason to buy a term policy is because of the promise of a death benefit for your beneficiary should you pass away while it’s in force. As the name suggests, this stripped-down form of insurance is only good for a certain period of time, whether it’s five years, 20 years, or 30 years. After that, the policy simply expires.

Whole life is a form of permanent life insurance, which differs from term insurance in two key ways. For one, it never expires as long as you keep making your premium payments. It also provides some “cash value” in addition to the death benefit, which can be a source of funds for future needs.

Pet Insurance

Insurance companies aren’t in the business of paying more out in claims than what they take in in premiums. But that doesn’t mean the odds are always against you. If you get socked with a large, unexpected vet bill, what you’ve paid in premiums can be far less than what you receive in reimbursement. And that’s the main point of insurance: To have financial protection against large disasters.

If your pet gets injured or sick, pet insurance helps cover medical expenses. What was once an obscure insurance product has been gaining in popularity.

An accident-only pet insurance plan will cover veterinary expenses related to an accident, like a torn ligament or a pet swallowing something poisonous. But an accident-only plan will not cover veterinary expenses related to an illness, like ear infections or cancer.

Some pet insurance plans have the option to add wellness or routine care coverage. This add-on covers expenses like routine check-ups, micro chipping, vaccinations and flea/tick prevention.

Travel Insurance

Travel can be expensive. Insurance protects your vacation investment if the unexpected occurs. But is travel insurance worth it? The answer will depend on whether your trip is refundable, where you’re going, whether you’ll have health coverage at your destination and how much coverage you already get from your credit card. Travel insurance covers a number of travel-related risks, from flight cancellations to lost bags to medical emergencies. The dollar amount of your coverage depends on the policy you bought and where and when you bought it.

Getting the most out of your travel insurance is all about having the right policy to begin with, but it can be a little overwhelming trying to determine which level of cover is right for you. We have put together some tips that may be useful when determining your travel insurance cover:

Destinations: Are all my destinations covered?

Medical: Do I have the right level of medical cover?

Personal Belongings: How much of my baggage & belongings are covered?

Valuables: Am I taking any valuables with me?

Sports & Activities: If I’m injured (or fall ill) while partaking in certain activities, will my insurance cover me?

Cancellations: If I have to cancel my trip, do I want my money back?

Mobile home Insurance

Due to their unique construction and vulnerability to certain weather, such as windstorms, manufactured and mobile homes typically don’t qualify for traditional homeowners insurance. Instead, you need to look into mobile home insurance. Mobile home insurance covers your belongings, the structure of your home and legal damages if you cause harm to others.

Manufactured and mobile homes typically need a different type of insurance than site-built homes. The distinction between home types can affect your insurance choices. Some companies may have you insure a modular home with a traditional homeowners policy rather than mobile home insurance.

A manufactured home is largely built within a factory setting and then transported to its home site. Though manufactured homes resemble traditional, or stick-built, homes in many respects there are differences between the two. For one, manufactured homes tend to weigh less than traditional homes because they generally contain fewer building materials. Another key difference between a manufactured home and a stick-built home is that manufactured homes, as a whole, are more expensive to insure.

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