Tornadoes, earthquakes, and flooding have all been in the news recently. You never know when a major catastrophe may occur. It is a good idea to have an emergency kit prepared in advance. Some items to include in your emergency kit are…
Below are some common questions you may have regarding insurance policies. We have also put together a glossary of insurance terms.
We have broken the FAQ down into the following categories:
What should I consider when purchasing an insurance policy? There are many things to consider when purchasing insurance, whether it is personal insurance, commercial insurance, or life insurance. Although price is always a primary concern, you should also consider the coverage within the policy. Not all policies are alike. Other factors to consider include the financial strength of the insurance company, and how the insurance company is rated for their customer service and claims service.
What is an umbrella policy? An umbrella policy is an insurance policy which provides an additional $1,000,000 of liability coverage, in addition to the liability limits of your personal policies such as your auto and home policies. An umbrella policy can also be purchased for a business. Amounts higher than $1,000,000 are also available.
How do I know if I need an umbrella policy? In the past, only wealthy individuals purchased an umbrella policy to protect their assets. Due to the litigious society we live in today, everyone needs an umbrella policy.
Why would I want to purchase renters insurance? Renters insurance is a low cost policy which insures your personal property in case of events such as fire or theft. Another benefit of a renter’s insurance policy is that it provides personal liability coverage.
Do I have to carry medical coverage on my auto insurance policy if I have health insurance? Yes. Pennsylvania law requires you to purchase a minimum of $5,000 of medical coverage on your auto insurance policy. You can buy higher amounts on medical coverage if needed.
Is a rental car automatically provided in the event of a collision? No. Car rental is not automatic when you purchase collision coverage. Car rental coverage can be added to your policy for an additional premium. There are several limits of car rental coverage available. We recommend a minimum of $40/day.
Does my comprehensive deductible apply in the event of a windshield claim? The deductible will apply only if the glass needs to be replaced. The deductible is waived if the glass damage can be repaired.
My car is not running. Can I remove the insurance on my car? The state of Pennsylvania requires all licensed cars to have liability coverage. The only way the state will allow insurance to be removed from a legally registered car is if the license plates are returned to the state. Please contact the Pennsylvania Department of Transportation for more information.
What is the difference between Full Tort and Limited Tort? Full Tort means you retain your full rights to seek financial compensation if injured in an auto accident. The Limited Tort option means you can only seek financial compensation if you are seriously injured in an auto accident. We strongly recommend the Full Tort option.
Can I drop the other structure coverage on my house insurance policy? No. Other structures coverage is a mandatory coverage in the state of Pennsylvania.
Does my homeowner’s policy provide coverage for catastrophes such as tornado, earthquake, flood and mine subsidence? A homeowner’s policy does provide coverage for damage caused by a tornado. Earthquake is not covered under the policy but coverage can be added to a homeowner’s policy for an additional premium. Flood and mine subsidence insurance can be purchased separately through a specialty insurance company.
Does my homeowner’s policy provide coverage for jewelry? There is limited coverage for jewelry as well as for other categories of personal property such as guns and silverware. You may purchase additional coverage by adding a rider onto your homeowner’s policy or by purchasing a separate policy.
What is the difference between term life insurance and permanent life insurance? Term life insurance is a lower-cost life insurance policy which is intended to be purchased for only a set time period such as 10, 20, or 30 years. It does not build cash value. A permanent life insurance policy such as universal life and whole life is intended to be purchased for life. This form of life insurance does build cash value in the policy.
How much life insurance should I purchase? There are many factors to consider when determining an amount of life insurance to purchase. Some of the factors include the amount of money needed to pay normal every day bills, child care costs, college education costs, and final expenses.
