What
does Liability Coverage mean?
What
does Collision and Comprehensive Coverage mean?
My
car Insurance seems expensive. How can I reduce the cost?
When
comparing Homeowners Policies, what should I look at other
than the limit on my house?
If
I have an office in my home, does my Homeowners Policy provide
the coverage I need?
What does
Liability Coverage mean?
Liability
Coverage protects you from lawsuits in the event you are involved in
an accident. This coverage provides protection even if you are driving
another person's vehicle. There are three main types of Liability Coverage.
Bodily
Injury
Bodily
injury coverage is typically sold as split limits, a limit for each
passenger and an overall limit for the accident. For example, if you
elect to purchase $100,000/$300,000 coverage, you have the following
coverage maximum payouts in the event of an accident: $100,000 maximum
payment to any individual involved in the accident, $300,000 maximum payment
for all individuals involved in the accident. The minimum limits for BI vary
by state. Always check with your agent about risks associated with purchasing
lower or minimum liability limits.
Medical
or Personal Injury Protection (PIP)
This
coverage provides protection for medical and/or funeral costs for you
in the event of an accident. States are either Medical States or PIP
states depending on their state law. Please check with your agents for
a complete description on Medical Coverage and its relation to other
existing Health/Life Coverage you may have.
Property
Damage
As
the name implies, property damage protects you from any damages resulting
to a person's car or other person's car in the event of an accident.
For example, if you purchase $100,000 of Property Damage, the maximum
amount paid for damage to other individual's property would be $100,000
for the accident.
Uninsured/Underinsured
Motorist
Uninsured
Motorist provides coverage for you in the event the other driver does
not have insurance at all. Underinsured Motorist provides liability
coverage for you in the event the other driver does not have enough
insurance coverage.
What does
Collision and Comprehensive Coverage mean?
These
two coverage options provide compensation for damage inflicted to your
vehicle in the event of an accident. Collision provides coverage in
the event of an accident. Comprehensive provides coverage in the event
of car damage from other perils such as storms, theft and some other
non-accident damage inflicted to you.
Comprehensive
and Collision are sold with deductibles. A deductible is the amount
you pay first. After the deductible has been reached, the insurance
coverage provides payment for the additional amount of repairs/replacement
needed. A typical deductible for Comprehensive and Collision is:
- $100 Comprehensive
- $250 Collision
It is very important
that you consult with your agent to determine the best coverage for
you. Depending on vehicle, age, driving record, income and many other
factors, the right coverage will vary.
Disclaimer: This
information is intended to provide a brief overview of insurance coverage,
and is not a substitute for reading the details of your insurance policy
and/or consulting with an agent.
My
car Insurance seems expensive. How can I reduce the
cost?
Auto
Insurance rates in Wisconsin are actually some of the lowest in the nation.
Only 9 states have lower rates than we do. However, there are still tools
you can use to reduce your costs. A few things to consider include:
Vehicle
Choice
Premiums
vary by vehicle - some are theft targets or expensive to repair. Check
the insurance rates before you make a purchase.
Deductibles
Choosing
higher Comprehensive and Collision deductibles can reduce premiums.
Collision
Coverage
As
your vehicle ages and the value declines, it might be a good idea to drop
Collision Coverage to same money.
Account
Credit
Many
companies provide discounts if your home and auto are insured together.
Ride
Share
If
you commute, look into ride share vans or alternatives to driving to
work every day. Decreased usage may translate into a lower rate class.
When comparing Homeowners Policies,
what should I look at other than the limit on my house?
There
are many features within a Homeowners Policy that will make it different
than another. In addition to the limits shown on the front of your policy
(dwelling, contents, liability, etc.), you need to dig into the policy
language to see how your policy addresses things like:
Backup
of Sewer or Drains
The
basic Homeowners Policy does not cover this, but many offer it as an
option to enhancement.
Wind
damage to trees
If
you have a tree blown down on your home, most policies will pay for the
cost to remove it. However, if the tree is downed in the yard, some
policies will cover the removal - others will not.
Cost
to Replace your Home
Virtually
all Homeowners Policies provide replacement cost coverage (not depreciated)
up to the home value shown on the policy. What if your cost to rebuild
exceeds that limit? Many companies offer endorsements to allow some "excess
coverage" to allow for situations where the cost to rebuild exceeds
the home value shown. While you should try to insure at the full cost to
rebuild, these endorsements take the burden off of you to make sure that
you are aware of every change in the building costs over time.
If I have an office in my home,
does my Homeowners Policy provide the coverage I need?
Probably
not, unless you address a few items specifically.
Be
sure to address any business activity with your agent. There are many
gaps in both the Property and Liability Coverage under the Homeowners
Policy, relative to the business. Your policy may exclude any detached
structures, such as a garage, that are used for business purposes, including
storage of materials. Contents coverage for business personal property
is usually limited to $2500 at home or $250 away from home. Liability
Coverage for business activity is generally excluded.
Many
of these items, however, can be addressed by many Homeowners Policies
as in-home businesses become more common. Coverage for contents, business
computers, and date and liability can often be added to the Homeowners
Policy or be provided by a Companion Policy.
Campbell Insurance Agency - Agents Jeff and Wendy
Campbell
Located at 1020 10th Avenue, Suite 101, Baldwin,
WI 54002
Phone: 1-715-684-3077 | Toll Free: 1-888-815-2524
| Fax: 1-715-684-2430
E-Mail: jeff@campbellagency.net
or
wendy@campbellagency.net.
