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Frequently Asked Questions

Why would I pay more to have higher auto liability limits?   

Having low liability limits can be financially devastating to you in the event of a serious accident.  Your insurance company will only pay up to the limits on your policy.  When Bodily injury or property damages exceed your policy limits, you can be sued for your personal assets- your home, savings, investments, and even your future income!  Perhaps even more importantly, what if you are in an accident where the other driver is at fault and they don’t have enough coverage, or don’t have any insurance at all?  Without adequate UIM coverage, you could be paying for someone else’s mistake for the rest of your life.

What happens if I cancel my existing policy before the end of its term?

State law requires an insurance company to give a pro-rated refund if you cancel your insurance before the end of its term.  So you don’t have to worry about paying for your insurance twice.

How do I change my homeowner’s company if the premium is paid through my mortgage company escrow account?

 Not a problem!  There are a number of ways to make a seamless transition to a different company, while continuing to have your premium paid through your mortgage company.  Often this can be done without the need for any down-payment.

If I just had an accident, claim, or have a poor driving record, am I eligible for a new policy?

 In most cases, there are insurance companies who can offer you a competitive rate with a less than perfect claims / driving record if your agent has the right options available, that is.

With so many insurance agents to choose from, how do I decide who I can trust with something as important as my insurance?

  •  Proposals    Look at what coverage they are recommending.  Some insurance agents will quote very low coverage limits, or leave out important coverage altogether just so they can come in with the cheapest rate.  While price is obviously very important, make sure a ‘cheap rate’ is not the only thing they have to offer.
  • Service   How long does it take an agent to return a phone call?  Some agents take a day or more to return a simple phone call.  Never forget that your agent works for you, not the other way around!  If your agent is too busy chasing new business to take care of their customers, it’s time to move on.
  • Options   Some agents only represent one insurance company.  The truth is, every insurance company has its own idea of where to be most competitively priced.  The company who is most competitive this year might not be the next.  Make sure your agent represents enough companies to remain competitive now, and in the future as well!

Why would I want to insure my home for more money than it’s worth?

Many people confuse the “Replacement Value” of their home with its “Market Value”.  The market value of a home is based upon such factors as supply and demand, age and condition, desirability of the area, etc.  For example, a 30 year old home is generally worth less than a brand new home.  Obviously, if your home were to be destroyed in a fire you wouldn’t be able to build a 30 year old home in its place.  So the replacement value of your home is based on what it would cost to remove and haul away the debris from the old home, and build a brand new one in its place.  Some other factors which contribute to higher replacement costs are as follows:
  • Usually, when you build a home you expect the builder will begin construction within the next several months to a year.  After a complete loss to your home, you are asking the builder to put everything else on hold and immediately begin construction on your own home.  Of course there is a price for that!
  • The builder does not always have the ability to negotiate labor and materials as they otherwise could under normal circumstances.

Why do some insurance agents say that they can’t simply mail a quote because they have to present it in person?

 When an agent knows he or she can’t compete on rates, they often insist on sitting down with you in order to present a proposal.  This is very often a high-pressure, scripted sales presentation.  We would like to meet with you as well, and certainly believe it is important for you to know who you are dealing with and what kind of service to expect.  The difference is however, that we understand most people prefer to see what kind of rates an agent has to offer first.  That way if it’s not in ‘the ballpark’ you won’t have to waste your valuable time.  We will respect you and your time by not insulting your intelligence with scripted presentations, high pressure sales, or manipulation of coverage to reduce the price.  If we are the right solution for your insurance needs, you will know it!

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