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FAQ

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What is the difference between comprehensive and collision coverage?

Collision coverage is provided to an insured auto due to the collision with another vehicle, object (tree, building) or the upset or overturn of the vehicle.  In addition, if the covered auto is involved in a hit and run, collision coverage will provide the coverage for the vehicle.  Comprehensive coverage will then be provided for any other incidents that happen to a covered auto such as a broken windshield, vandalism, theft or the collision with an animal.

Will my homeowners policy cover damage caused by flood?

No, flood is an excluded peril under all homeowners policies.  You can however purchase a flood insurance policy from the National Flood Insurance Program (NFIP) that is administered by the Federal Government.  There are a number of carriers that provide access to flood insurance whether you are in a flood plain or not.  There also is an endorsement that can be added to a homeowners policy called the backup of sewers and drains coverage which will provide coverage for items in a basement that become damaged due to a sump pump becoming overwhelmed be an amount of water due to heavy rains.

What does an umbrella policy cover?

The umbrella policy will respond if you are responsible for damages that exceed your underlying auto, home, renters or recreational vehicles liability limits.  Written in $1M increments these policies are essential in maintaining the proper levels of insurance and protecting the family from a financial judgement against them.  The policy will also provide coverage for defense costs such as attorney's fees and other expenses.

What is the difference between a term life and whole life policy?

A term life policy is a life insurance policy that provides both a level benefit amount and a level premium for a certain period of time called a term.  Term policies are usually issued in yearly increments from 10 to 30.  Since these policies have a fixed time to be in effect and payment to the beneficiaries, a term policy will always be cheaper than a whole life policy.  Whole life on the other hand has a maturity date later in life in which benefits can be paid out with some carriers keeping a policy in force till age 121 as long as premiums are paid.  These policies can also be designed to have a cash value that can be used at any time for any thing at all making them attractive as supplemental savings, retirement fund or for business needs.