Homeowner Insurance
What does "HO" stand for?
I live in Florida. Can you help me find a home insurance company?
What is the process that my insurance company follows when I file a claim?
Auto Insurance
Do I need to purchase insurance before I buy a new car?
What can I do to protect myself against uninsured drivers?
What should I do if I just had an auto accident?
Commerical/ Work Compenstion Insurance
What is property insurance?
How does liability insurance coverage protect my small business?
What does workers' compensation insurance do?
Homeowner Insurance
What does "HO" stand for?
Different types of homeowners policy forms are referred to as HO-1, HO-2, HO-3, and so forth. There are seven basic kinds of home insurance policies and they're pretty much the same regardless of where you live (except for Texas). They tend to be defined by the perils they cover:
- HO-1. Basic homeowners. Covers your dwelling and personal property against losses from 11 types of perils: fire or lightning; windstorm or hail; explosion; riot or civil commotion; aircraft; vehicles; smoke; vandalism or malicious mischief; theft; damage by glass or safety glazing material that is part of a building; and volcanic eruption.
- HO-2. HO-2. Basic homeowners plus. Covers dwelling and personal property against 11 perils plus six more: falling objects; weight of ice, snow or sleet; three categories of water-related damage from home utilities or appliances; and electrical surge damage.
- HO-3. Extended or special homeowners. Covers 17 stated perils plus any other peril not specified in your policy, except for flood, earthquake, war, and nuclear accident.
- HO-4. Renters coverage. Covers only personal property from 17 listed perils.
- HO-5. All risk coverage for building and personal property. This policy form isn't sold very often.
- HO-6. Condominium coverage. Covers personal property from 17 listed perils along with certain building items in which the unit owner might have an insurance interest.
- HO-8. Basic older home. Covers dwelling and personal property from 11 perils. Differs from HO-1 in that it covers repairs or actual cash values - not rebuilding costs. This is for homes where some historic or architectural aspects make the home's replacement cost significantly higher than its market value.
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I live in Florida. Can you help me find a home insurance company?
Because you live in Florida, you may find it more difficult to get home insurance than if you lived in another part of the country.
If you live in a coastal area, you should find out whether buying a standard homeowners insurance policy will cover you against all perils (especially hurricanes), or whether you'll have to take out a separate windstorm policy from the Florida Windstorm Underwriting Association.
If you're having a lot of difficulty finding someone willing to insure you, Florida's Citizens Property Insurance Corporation should be able to help. Citizens was created during the 2002 legislative session to serve property insurance policyholders in the State of Florida who are unable to obtain coverage in the private marketplace. Applications for coverage can be made online at www.citizensfla.com or by contacting Citizen's customer support line at 888-685-1555.
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What is the process that my insurance company follows when I file a claim?
Here is a general idea of the claims process:
- Insured calls agent or claim service center to report initial claim.
- Claim received in local claim office from service center.
- The insured receives a call from the claim department to review loss facts and claim-handling procedures.
- If an inspection is not needed, the adjuster requests information needed to process the claim and issue a settlement check.
- If an inspection is needed, the claim is assigned to a field adjuster who contacts the insured and sets an appointment.
- If a contractor is involved, the adjuster attempts to meet with the customer and the contractor to reach an agreed scope and dollar amount of loss. An estimate is prepared and a check is written for the damages.
- If a contractor is not involved, the adjuster prepares an estimate and issues a check for the damages.
- If the insured obtains a contractor after the loss is settled, the insured is instructed to have the contractor review the estimate and contact the adjuster with any discrepancies.
- Every attempt is made to reach an agreed price with the contractor and resolve any discrepancies. If additional money is owed, a supplemental estimate is prepared and a check issued.
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Auto Insurance
Do I need to purchase insurance before I buy a new car?
If this is your first car, yes, you'll have to buy auto insurance before you drive your shiny new car off the dealer's lot. If you are financing the purchase, the lender will require that you buy a policy with comprehensive and collision coverages. Not all states require the purchase of liability coverage, however, and you can find out which ones do by reading Which states require drivers to buy liability insurance?
If you have owned a vehicle and already have an auto insurance policy, that will generally cover your new automobile for a period of up to 30 days after you buy it. Once that 30-day period is up, you'll have to talk with your agent or company representative to insure that new vehicle.
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What can I do to protect myself against uninsured drivers?
Purchasing uninsured/underinsured motorist (UM/UIM) coverage can protect you against uninsured drivers. In many states, UM coverage is required by law.
UM coverage will pay for medical bills and pain and suffering if you are hit by an uninsured driver. In some states, UM property-damage coverage is available. If your car is crunched by an uninsured driver and you have UM property-damage coverage, you'll be able to get your car fixed under this coverage, rather than using your collision coverage.
Generally speaking, UM property-damage coverage carries a lower deductible than collision coverage.
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What should I do if I just had an auto accident?
You should inform your insurance company right away. Make sure you've gotten a copy of the police report and the other party's (or parties') insurance information. If possible, take pictures of all vehicles involved in the accident, to prevent the other parties from claiming damage to a vehicle that was not related to the accident.
Remember, just because you inform your insurer of an accident doesn't mean you're making a claim.
For more on what to do after an accident, see What to do after an auto accident.
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Commerical/ Work Compenstion Insurance
What is property insurance? |
Property insurance protects your buildings and equipment, stock, furniture and fixtures. Some policies include equipment breakdown and business income coverage. Basic property insurance will generally cover your business for losses in the event of a fire or lightning strike and will pay the cost of removing property to protect it from further loss. Additionally, a standard small business insurance policy will usually cover losses from windstorm, hail, explosion, riot and civil commotion and damage caused by aircraft, automobiles or vandalism.
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How does liability insurance coverage protect my small business? |
There are many different types of third-party liabilities to be covered for a business. Business liability insurance may protect you from claims arising from someone's bodily or personal injuries. Other items that could be covered are damage to the property of others, products-completed operations, advertising, premises operations, fire, legal liability and related legal defense costs. For instance, liability insurance will not only pay the cost of covered damages but also the attorney fees and other costs associated with your defense.
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What does workers' compensation insurance do?
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Workers' compensation pays for the rehabilitation, recovery and medical bills of employees work-related injuries, as well as lost time when they are unable to work because of a work-related injury. Workers' compensation is not a substitute for health or medical insurance, since employees are only covered for on-the-job injuries.
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