What factors affect my auto insurance premium?
- Your driving record: Accidents and tickets can raise your rates.
- How much you use your car:The more miles you drive, the more chance for accidents.
- Where your car is parked and where you live: Theft, vandalism, weather losses, repair costs, and medical costs vary by location.
- Your age or driving experience: Inexperienced drivers have more claims.
- Your gender: Men have more claims than women.
- The car you drive: Your car’s value, safety rating, and likelihood of causing injury to another all affect your rates.
- The type and amount of coverage: Liability limits, property coverages, and deductibles will affect your rates.
Does my home insurance cover damage caused by earthquake or flood?
No. A standard homeowners policy does not generally cover damage caused by earthquake and floods. These sources of damage require additional coverage or a separate policy. If you live in an area that is prone to these types of events, talk to your agent about making sure you’re properly covered.
What is the difference between water damage and flood damage?
The damage can be similar but the cause is different.
Water damage is usually caused by water coming from something like a burst pipe, an overflowing toilet, a dishwasher that leaks all over the kitchen floor, or a roof that leaks after a hard rain.
Flood damage is caused by water coming from something like an overwhelmed levee that breaks, a clogged drainage system, a river or lake that overflows or even just the ground being inundated with too much water after a torrential storm. Water seeping into your basement after a heavy rain or winter runoff is usually also considered flood damage.
When would I need umbrella insurance?
Imagine if your dog were to bite a neighbor’s child. Or if there’s an accident on your rental property. Or a fire in your condo spreads to other units. What would happen if you or a family member missed a stop sign and struck and killed a pedestrian? If any of these things happened to you, there’s a good chance your current liability limits wouldn’t be adequate to protect your assets—or your future earnings.
What is umbrella insurance?
Umbrella insurance is a secondary coverage that protects more than one property or asset with an extra layer of liability protection. It kicks in when your underlying or primary policy doesn’t provide sufficient liability protection. An umbrella policy provides an additional layer of liability protection that can be used with any of your other policies or even any policy from another insurance company including your boat, motorcycle, all-terrain vehicle and snowmobile.
For example, if the liability limits are exhausted on your auto insurance, your umbrella insurance would take over and provide you with additional protection of at least $1 million or up to the level of coverage you purchased. If you have $500,000 liability coverage on your auto policy and $1 million umbrella coverage, your total auto liability coverage is increased to $1.5 million.
Does renters insurance pay my rent if I can’t on some months?
Renters insurance does not pay your rent. However, it may cover expenses related to temporary housing if you can’t live in your building while it’s being rebuilt or repaired after being damaged.
Which part of my condo am I responsible for?
You’re usually responsible for what’s inside your condo unit, including your personal belongings, appliances, light fixtures, bathtub, toilets and sinks, walls and floors. Check your condo association agreement.