FAQs Archive - Page 2 of 3 -

Q: How much life insurance should an individual own?

“Rule of thumb” suggests an amount of life insurance equal to 6 to 8 times annual earnings. However, many factors should be taken into account when determining the right amount of life insurance for you and your family. Important factors include: Income sources (and amounts) other than salary/earnings Whether or not you are married and, if so, what is your spouse’s earning capacity The number of individuals who are financially dependent upon you The amount of death benefits payable from Social Security and from an employer-sponsored life insurance plan Whether any special life insurance needs exist (e.g., mortgage repayment, education fund, estate planning need, etc.) Calculating the correct amount of life insurance to buy is not as simple as it appears. We recommend contacting us for help determining the right amount of coverage. As independent agents, we are unbiased advisors that will help you avoid buying too much, show you appropriate optional coverages for your need and recommend a company that will best serve your interests.

Q: What factors should I consider when purchasing homeowners insurance?

There are a number of factors you should consider when purchasing any product or service, and insurance is no different. Here is a checklist of things you should consider when you purchase homeowners insurance: Determine the amount and type of insurance that you need. The coverage limit of your house should equal 100% of its replacement cost. If your policy limit is less than 80% of the replacement cost of your home, any payment from your insurance company will be less than the full cost to replace your home – you’ll have to pay the rest out of your own pocket. Also, decide if the personal property and personal liability limits are adequate for your needs. Determine which, if any, additional endorsements you want to add to your policy. For example, do you want the personal property replacement cost endorsement, an earthquake endorsement or a jewelry endorsement? Once you have decided on the coverage you want in your homeowners insurance policy, consult us. We will be able to help you determine if there are any gaps in coverage you might not have been aware of, explain the details of the policy’s exclusions and limitations as well as recommend an insurance company that will live up to your expectations.

Q: What is the difference between “actual cash value” and “replacement cost”?

Covered losses under a homeowners policy can be paid on either an actual cash value basis or on a replacement cost basis. When “actual cash value” is used, the policy owner is entitled to the depreciated value of the damaged property. Under the “replacement cost” coverage, the policy owner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices.

Q: What are some practical things I can do to lower the cost of my homeowners insurance?

There are a number of things you can do to lower the cost of your homeowners insurance. The easiest thing to do is get a comprehensive review of your policy and needs from your local agent. It is not surprising to find quotes on homeowners insurance that vary by hundreds of dollars for the same coverage on the same home. When you shop, be careful to make sure each insurer is offering the same coverage. Another way to lower the cost of your homeowners insurance is to look for any discounts that you may qualify for. For example, many insurers will offer a discount when you place both your automobile and homeowners insurance with them. Other times, insurers offer discounts if there are deadbolt exterior locks on all your doors, or if your home has a security system. Be sure to ask us about any discounts for which you may qualify Another easy way to lower the cost of your homeowners insurance is to raise your deductible. Increasing your deductible from $250 to $500 will lower your premium, sometimes by as much as five or ten percent.

Q: What factors can affect the cost of my automobile insurance?

A number of factors can affect the cost of your automobile insurance – some of which you can control and some that are beyond your control. The type of car you drive, the purpose the car serves, your driving record, and where the car is garaged can all affect how much your automobile insurance will cost you. Even your marital status can affect your cost of insurance. Statistics show that married people tend to have fewer and less costly accidents than do single people.

What about purchasing life insurance on a spouse and on children?

In certain circumstances, it may be advisable to purchase life [...]

By zappainssvcs|2021-03-30T07:26:09+00:00March 30, 2021|Life Insurance|Comments Off

How much life insurance should an individual own?

“Rule of thumb” suggests an amount of life insurance equal [...]

By zappainssvcs|2021-03-30T07:24:26+00:00March 30, 2021|Life Insurance|Comments Off

Do I need earthquake coverage? How can I get it?

The standard insurance policy does not pay for direct damages [...]

By zappainssvcs|2021-03-30T07:17:02+00:00March 30, 2021|Homeowner Insurance|Comments Off

Where and when is my personal property covered?

Personal property (except property that is specifically excluded) is covered [...]

By zappainssvcs|2021-03-30T07:16:15+00:00March 30, 2021|Homeowner Insurance|Comments Off

What are the policy limits (i.e., coverage limits) in the standard homeowners policy?

Note: this answer is based on the Insurance Services Office’s [...]

By zappainssvcs|2021-03-30T07:15:27+00:00March 30, 2021|Homeowner Insurance|Comments Off

What factors should I consider when purchasing homeowners insurance?

There are a number of factors you should consider when [...]

By zappainssvcs|2021-03-30T07:11:45+00:00March 30, 2021|Homeowner Insurance|Comments Off

What is the difference between “actual cash value” and “replacement cost”?

Covered losses under a homeowners policy can be paid on [...]

By zappainssvcs|2021-03-30T07:08:53+00:00March 30, 2021|Homeowner Insurance|Comments Off

What does homeowners insurance cover?

The typical homeowners policy has two main sections: Section I [...]

By zappainssvcs|2021-03-30T14:47:34+00:00March 30, 2021|Homeowner Insurance|Comments Off

What are some practical things I can do to lower the cost of my homeowners insurance?

There are a number of things you can do to [...]

By zappainssvcs|2021-03-30T14:49:48+00:00March 30, 2021|Homeowner Insurance|Comments Off

What factors can affect the cost of my automobile insurance?

A number of factors can affect the cost of your [...]

By zappainssvcs|2021-03-30T06:56:49+00:00March 30, 2021|Auto Insurance|Comments Off