These F.A.Q.’s are meant to provide a groundwork to answer your questions, it is for informational purposes only and is not a substitute for professional advice.Please contact us or your Insurance Agent before making any decision about your insurance based on these answers.

When I rent a car, do I need to buy insurance sold by the rental company?

In most cases, your insurance will cover your rental vehicle if you have full coverage on at least one of the vehicles on your policy. The rental car would have the same limits of liability and collision/comprehensive deductibles as the fully insured vehicle listed on your auto policy. This applies to vehicles rented within the United States and Canada. Mexico and European countries are often excluded, check with your insurance provider.

However, in some instances where the vehicle is stolen or damaged, and is not able to be rented out, therental company could ask you or sue you for loss of use (income) from the vehicle.

How much insurance coverage should I buy for my house?

Often times a mortgage company and an insurance company butt heads when it comes to placing the correct coverage on a home. Mortgage companies often want to insure the home for the value it’s being financed for. This is usually higher or lower than what the actual reconstruction cost.

These costs are determined by what it would cost the insurance company to build you a NEW house of like kind and quality. As such, the sale price of the home is usually far off from the replacement costs. Those homes located in highly desirable locations might sell for $800,000, but realistically the home itself only costs $400,000 to replace. On the flip side, large older homes might only sell for $200,000 but to replace the 2,500 square feet home actually costs $350,000.

Always remember we are insuring the home and not the land. As the old insurance saying goes, “The land isn’t going to burn down!” Sometimes the mortgage company doesn’t pay attention and overlooks the separation between the land and home value.

Is my son’s property covered while he’s away at college?

Yes, in most cases your son or daughter’s property is covered while their at college. Of course, this is subjected to your homeowners deductibles. Limits applied to Jewelry, Fur, Fine Art, Silverware, ect. still apply.

How much life insurance do I need?

Life insurance needs vary from person to person, family to family. A single individual with no children might only need $50,000 or less to help pay for funeral costs and settle any outstanding debts as to not place any burdens on their next of kin. However, when a family is involved, things get a little more complicated.

Age of the future insured, spouse, and their children play a huge role. One must also consider outstanding mortgages, auto loans, and future college costs. To be honest, there is no size fits all and you really need to sit down with your loved ones and discuss the proper amount. Don’t hesitate to contact your agent to go over your concerns.