Personal Lines

Here are just a few important things to know about Homeowners and Personal Auto Insurance

1. What limits does your homeowners policy have on items such as guns, furs, coins and other important items.  Ask about "scheduling" these items to make sure you have the proper coverage.
2. Your property assessment from the city/county might be less or more than what the coverage amount is on your homeowners policy.  Remember assessments are based on "Market Value" and your insurance amount is based on the replacement or reconstruction cost.  Market values swing greatly in different neighborhoods but construction costs are generally level. 
3. Flood insurance is a separate coverage and policy.  There's a strict definition of a flood (as defined by FEMA).  A backyard with a drainage problem that empties into your basement isn't covered by your homeowners policy in most situations....  but it might not be covered by a Flood policy either!
4. Fallen trees.  The debris removal cost for a fallen tree is covered if it strikes a covered structure such as your home, deck, fence, etc.  If it doesn't strike a covered structure or does no damage, then debris removal is not covered. 
5. Your homeowners policy is not a maintenance policy.  It only covers a loss if the loss is sudden and accidental.  For example if your roof is struck by a fallen limb or your shingles blow off due to high winds and water leaks into your home the roof damage is covered and the subsequent interior damage is covered.  If your roof is just old and starts to leak, the interior damage is covered by the roof itself is not as this is considered normal wear and tear.
6. Underground pipes aren't covered by a homeowners policy, but a pipe in your house or other covered structure is covered for breakage in most instances and the subsequent water damage to the structure and contents is always covered.  A pipe might wear out and not be covered but the subsequent damage would be covered. 
7. Replace the water heater every 10 to 12 years.... that's the maximum life expectancy even if routinely drained and maintained.  Today's water heaters don't give the old "slow drip" warning and most leak from the top of the tank.  You could be looking at hundreds of gallons of water entering your house over a long weekend. 
8. What is an Umbrella policy?  This is a separate liability policy normally written in increments of a million dollars.  This policy will cover "over top"  of your personal liability coverage in the Homeowner's policy (your policy normally comes with a $100000. in it's base form and most upgrade to at least $300000.) and the liability policy of your auto and watercraft policies.  It fits "over top" like an umbrella to give you extra protection from liability suits. 
9. On your auto policy always get the maximum of liability you can afford.  State minimums coverage in Va hasn't changed in 40 years...... yet medical costs and the cost of automobiles have greatly changed since the 70's.  This coverage protects you and your assets in the event you have an at fault accident and cause bodily injury and/or property damage to someone else.  The greater your amount of assets the more coverage you need to protect them.  Assets include your bank accounts, home, automobiles, or anything else of value. 
10. Your auto policy comes in 2 major parts.  LIABILITY & PHYSICAL DAMAGE.  Liability protects your assets from others that you've harmed.  Physical damage protects your vehicle.  There are 2 parts to physical damage.  COMPREHENSIVE & COLLISION coverage.  Comprehensive coverage protects your car if damaged from most anything outside of a collision.  This would include things such as broken glass, hail, fire, theft, vandalism, flood and many other occurrences.  Collision covers your vehicle in the case of an at fault accident.  If the accident is someone else's fault, their liability will fix your car just like your liability will fix theirs.  Collision covers damage to your car if the accident is your fault.
11. Deductibles and coverage on older cars.  As cars age the pricing comes down in most instances as the value decreases.  Having high deductibles on collision for instance wouldn't be prudent any longer as the cost savings diminish greatly and you're paying more of the claim without the benefit of the savings.  When should you drop collision and comprehensive on an older car?  When the value of the car is low enough that when you add the cost of the insurance and the deductible you are at a figure that comes close to the value of the car.... you can drop the coverage and if you have no incidents that would require insurance you've saved your money!
12. How do carriers arrive at their pricing?  Today, most carriers use a "Variable Rate Platform" which is computer lingo for a program that takes into account millions of "variables" that include your credit, type of cars, level of coverage, past insurance history, type of carrier you had previous to your shopping your insurance and your prior limits of liability.... another reason for never going with the state minimum (if affordable) as carriers will look at minimum liability limits such as "sub standard" risk and your price with the new carrier won't be as competitive as if you had higher limits, denoting a "better" risk in their eyes
13. Don't forget to ask for rental car coverage (in the event of an at fault accident).  This is called Rental Reimbursement and Transportation Expense.  If you only have one car and use your car daily to or for work, this could save you the out of pocket expense of a car rental while your vehicle is being repaired.  Towing & Labor Expense is another popular and affordable coverage reimbursing you for a tow or roadside service..... some carriers now actually offer a roadside service for this charge (Travelers and Progressive to name 2).  New car replacement is also available from most carriers if the coverage starts within 90 days of purchase.  If your car is declared a total loss in it's first 2 years, the carrier gives you the replacement amount for a brand new vehicle. 

Give us a call at (804) 794-7620 or submit an online quote form and one of our professional agents will be in touch with you.