Personal Insurance

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Protected Individuals

Here are some Frequently Asked Questions that will help inform as to how we can help with your Personal Insurance needs!

 

What is a renter’s policy?

One of the types of Homeowners Insurance policies, a Tenant Homeowners insurance policy is also known as Renters Insurance. It includes insurance coverages for 1)  Personal Property, 2) Additional Living Expense, 3) Personal Liability, 4) Premise Medical. Scheduled Articles may be added to a Tenant Homeowners Insurance policy

 

When I purchase a home – what type of insurance will I need?

A Homeowners Insurance policy is designed to cover an individual’s owned house and assets in the home. It includes insurance coverages for 1) The building/structure. 2) Personal Property, 3)  Additional Living Expense, 4) Personal Liability, 5) Premise Medical, 6) Ordinance or Law. Condominium Owners and Tenant Homeowner policies are a form of Homeowners Insurance and are used to insure an individual who purchases an owner occupied condominium unit.  A tenant’s policy (renter’s policy) is used when you occupy a residence you do not own.  Coverages offered on both are similar to the homeowner’s policy with modifications if needed for the coverage to the structure.

 

My condominium association has insurance – why do I need my own policy?

Condominium Owners Insurance policies (called an HO-6 form) can include insurance coverages for 1) The portion of the condominium building/structure that is not insured under the Condominium Owners Association’s Master Policy. 2) YOUR Personal Property, 3) Scheduled Articles – such as jewelry, collectibles, antiques, etc. 4) Additional Living Expense – this is the additional cost to live elsewhere in the event your unit is damaged by a covered loss, 5) Personal Liability for YOUR unit (picture your guest slipping on your wet bathroom floor and being injured, 5) Premises Medical, 6) Loss Assessment, (did you know that unit owners routinely are assessed by the association? and 7) Ordinance or Law

 

I own a single family home occupied by a tenant – do I purchase a homeowner policy for that location?

No – you will need a Dwelling Fire Policy which is similar to a Homeowners Insurance policy. It is most often used to cover a tenant occupied house. It can include insurance coverages for 1) The building/structure 2) Loss of Rental Income (which is VERY important especially on investment properties) 3) Owner’s Personal Property, 4) Personal Liability, 5) Premise Medical, 6) Ordinance or Law. The major differences between a Dwelling Fire Policy and a Homeowners Insurance Policy are that there is commonly no theft coverage applicable to the structure or contents, but a policy may be amended to provide theft if desired.

 

Living in California, I worry about the “Big One” – does my homeowner policy include earthquake coverage?  

No – it does not.  As a rule earthquake coverage:

  • Is excluded from most personal lines property insurance policies of all types
  • Must be specifically purchased to provide coverage for your dwelling in the event that an earthquake causes damage to the structure
  • Can be provided a) in some cases by adding the coverage to an existing personal lines property insurance policy, or b) purchased separately through a specialty company

 

I raise and sell sheep which generate income – will my homeowner policy cover me properly?

No – A Farmowners Insurance policy is most likely needed and is designed to cover family farms and ranches. It is similar to a Homeowners Insurance policy and designed to cover an individual’s house, property in the home, scheduled outside structures and liability which can include “farm business operations”. It can include insurance coverages for 1) Buildings, Structures. 2) Personal Property, 3) Additional Living Expense, 4) Farmers Comprehensive Personal Liability, 5) Premise Medical, 6) Ordinance or Law, In addition, the Farmowner’s Insurance policy can often be expanded to include coverage     for Commercial Property, Commercial Liability, Livestock Care Custody & Control,            

 

The creek behind my home occasionally crests the banks and I am concerned about flood damage to my house – does my homeowner policy cover that type of loss?

No – Flood insurance is the remedy for losses of that type.  Remember, flood damage is:

  • Excluded from most personal lines (and commercial) property insurance policies
  • Provides coverage for your dwelling or personal property in the event that a flood causes damage
  • Is underwritten and regulated by the Federal Government and must be purchased separately
  • The flood policies most commonly written do NOT provide coverage for the cost to live elsewhere while a property is repaired from flood damage nor do they provide loss of income coverage for a tenant occupied structure or business is the building cannot be occupied or the business is closed due to a flood loss

 

I am going to be self employed soon and need to purchase my own medical insurance – how does this differ from health insurance?

The terms Health Insurance and Medical Insurance are commonly used interchangeably.   This type of coverage typically pays for medical, surgical, prescription drug and sometimes dental expenses incurred by an insured person

 

How do I protect my family if I die prematurely and they don’t have my income available to them?

You purchase life insurance which can be written in many ways.  Life insurance is a contract between an insurance company and a policy holder where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.  You choose the amount of coverage you want or need.  The premiums are based upon the amount of coverage chosen, your age and your health.  The younger you are when you purchase the policy, the less expensive the premium.

 

Can I add my motorcycle I just purchased to my automobile insurance policy?

No, you most likely need a motorcycle policy.  Similar to a personal automobile insurance policy, motorcycle insurance provides liability and physical damage insurance for motorcycles

 

What am I buying when I purchase a personal automobile policy?

The personal auto policy offers coverage for 1) Liability to others, 2) Medical Payments, 3) Uninsured/Underinsured motorists,  4) Damage to the vehicle from Other Than Collision or 5) Collision, 6) Rental Vehicle Reimbursement and 7) Roadside Assistance  There are other coverages available such as waiver of collision deductible, full glass coverage, special physical damage coverage and more so be sure to ask as many questions as you can about the coverage options to be sure you purchase what is right for you

 

Is my jewelry included in the coverage for my house?

Most policies do include coverage for your jewelry, but limit the amount of coverage they will pay for a loss by theft.  You may want to insure the jewelry separately by purchasing a personal articles policy or “schedule” your jewelry. A personal articles policy insures scheduled/specific items, usually of high value or because they are unique. The most common use is to add this coverage by endorsement to a homeowners insurance policy. The scheduled items are usually items that have a value or a limitation on the policy. I.e.: Jewelry, Watches, Furs, Cameras, Fine Arts. The scheduled items can be covered for theft, loss or misplacement, as well as mysterious disappearance anywhere in the world and may not subject to your homeowner deductible

 

My kids play baseball out front – what insurance covers me if they break a window?

You will need personal liability insurance – also referred to as “comprehensive personal liability”.  Personal liability coverage is most often included in and provide by a homeowners or tenants policy. It provides coverage for bodily injury and property damage sustained by others for which ‘you’ are legally responsible. Personal Liability Insurance is an insurance product that can be purchased by itself as well

 

What is a Personal Umbrella / Excess Liability policy?

A Personal Umbrella/ Excess liability policy provides additional limits of liability over scheduled underlying policies.  Scheduled underlying insurance policies can include, Homeowners, Dwelling Fire, Farmowners, Watercraft,  Personal Liability,  Personal Auto,  Recreation Vehicles, and Watercraft. The personal umbrella/ excess liability policy starts its payout when the limits of the scheduled underlying policies are depleted.

 

How do I insure my motorhome?

Motorhomes or recreational vehicles such as travel trailers can be insurance under a policy similar to a Personal Automobile policy. Recreation Vehicle insurance can provide liability and physical damage coverage for both motorized and non-motorized vehicles that combine transportation and temporary living quarters for travel, recreation or camping

 

Why would I need a Special Events Liability policy?

Special Event Liability insurance is a short-term liability insurance policy which covers private events against bodily injury and property damage claims. Often when you rent or use a facility for an event like a wedding or birthday, the location will require insurance and “additional insured” status.  This is when we would write a special event policy for you.

 

What type of insurance do I need for my boat or jet ski?

This type of equipment commonly needs a separate watercraft policy.  Watercraft insurance provides liability and physical damage insurance for boats, yachts and personal watercraft such as jet skis.  Some boats, such as canoes or kayaks, may have some automatic coverage under the homeowner policy but subject to limitations.  Call us to learn what type of policy will meet your specific needs.