What is an independent insurance agency verses a captive?

Unlike a captive agency representing a single carrier, independent agencies represent a large number of insurance carriers allowing them to sell the most appropriate products to meet the needs of their clients.

Why should I use an independent agent?

Because an independent agent has access to many brands, allowing them to compare various coverages and prices, they can find the best value for your particular situation.

What is this PIP Florida no-fault?

PIP are initials for Personal Injury Protection. No-fault is a term used to describe a situation where a policyholder's own policy pays the loss regardless of who was at fault in the covered incident. In Florida PIP is a mandatory auto policy coverage which pays eligible injured parties 60% of of their verifiable lost wages and 80% of reasonable and necessary medical expenses up to a maximum of $10,000.

What does it mean to have "full coverage" on your auto policy?

This is an inappropriate term generally used to mean the policy includes Physical Damage coverage of Comprehensive and Collision, not a liability only policy. There is no such thing as "full coverage" on auto insurance policies as each state has their own minimum coverage requirements which vary. Even adding Comprehensive and Collision coverage dosen't mean you are fully protected.

Collision generally covers damage to your automobile caused by collision with another object, while Comprehensive or "Other Than Collision", covers things like theft, glass breakage, vandalism, flood damage, etc.

Why is my neighbor's auto premium less then mine?

Auto insurance premiums are all rated individually, so varying factors such as age, marital status, driving record, credit history, type of vehicle driven, all play a part in determining the actual premium. Every drivers personal situation is unique and thus their rates vary.

Why should I have to purchase uninsured motorist coverage for drivers without insurance?

It is a common misconception that you are buying coverage for others when in fact this coverage protects you. There is a growing percentage of drivers without insurance or having the bare minimium required. If you should be injured by one of these unprotected drivers your own policy will pay medical costs and other related expenses.

Will my personal belongings stolen from my car be covered by my auto insurance policy?

Most likely stolen personal items will not be covered by your auto policy. Look to your homeowners or renters policy to cover these types of losses. Items that were permenently installed by the manufacturer such as a stereo system are usually covered by the auto policy. Check your specific policy for coverage details.

If my financed car is a total loss will my policy pay off my loan?

No, your loss will settled on an actual cash value basis. This means to replace with new property of like kind and quality, minus depreciation. Many policies offer what is known as Gap Coverage. The gap is the difference between what your car is currently worth (how much the insurance will pay) and how much you still owe on the loan.

If I have high coverage limits arn't I more likely to be sued?

There is a common misconception that only people with substantial assets need higher limits of protection. The reality is we live in a law-suit happy society and everyone is at risk from large damage settlements. You may not feel you have substantial assets to be attacked, but you can still have your wages garnished for many years to settle a judgment in full.

Can I legally drive without insurance?

Most certainly NO! Almost every state requires you to have auto liability insurance and Florida definately does. All states also have financial responsibility laws which means even a state not requiring liability coverage will require sufficient assets to pay claims if you cause an accident. If assests are insufficient you must purchase at least the state minimum mandatory amount. These minimums are seldom sufficient to appropriately protect your assets and likely could prove shortsighted and unwise in the event of an accident.

Will my policy cover me in a rental car?

Typically yes, whatever coverage applies to your vehicle will apply to the rental vehicle if and when the rental car is being used as a replacement for your auto. For example your auto is in the repair shop (not available for use) and you get a temporary rental vehicle to use instead. It typically must also qualify as a 4-wheeled private passenger vehicle. For example a large rental box truck for moving would not qualify as a replacement private passenger vehicle.

Do I need insurance to rent a car?

Yes, when renting a car you need insurance. If you have appropriate coverage on your own car including Comprehensive and Collision likely that will be sufficient. If you do not have Comp and Collision on your own policy then you will not be covered if the rental car is damaged or stolen. It is possible coverage might exist from your credit card company so be sure to check on that.

Will my homeowners insurance cover a flood loss?

No, a traditional homeowners policy will NOT respond to damage caused by flood. A separate flood insurance policy can be purchased through the National Flood Insurance Program (NFIP). Do not mistake every water loss as being a flood however. A sudden and accidental breakage of a pipe under the sink may feel like a flood to you, but by definition, likely would not qualify as a flood and would most likely be addressed by your homeowner policy.

What if my home is not in a flood zone?

Every home in Florida is in a flood zone. It is just a matter of to what degree. There are defined low risk zones and defined high risk zones. In high risk zones federally regulated lending institutions will require the purchase of flood insurance. Regardless of which zone your home is located in, it is wise to consider flood insurance coverage as typically each year 25% to 30% of flood losses occur in non-required low risk zones.

What if I don't want to carry homeowners insurance?

If you carry a mortgage with a federally regulated lending institution they will require the purchase of insurance on the structure. If owned free and clear the choice is yours to make. Just consider carefully that your home is typically one of your largest investments and can you truly afford to lose it completely?

Will my homeowner policy cover losses from burglary?

Typically these policies will limit coverage for theft of items that are common targets for burglers such as jewelry, money, firearms, cameras, computers and certain collectibles. Jewelry for example is typically limited to $1,000. These items should be specifically scheduled for coverage with appropriate documenation of discription and determined value.

Why did my agent insure the home for more then I paid for it?

Purchase price and replacement value are two entirely different animals. The purchase price includes land value and market value which has nothing to do with how much will it cost to rebuild the structure at current construction prices. The market value may be very low on a fifty year old house that has deteriorated or even on a newer home suffering from an extreme downturn in the housing market in general. The insurance however will have to cover the cost of rebuilding a brand new home at today's construction costs, which can be significantly higher then a comparable existing home for sale.

Is mold covered by my homeowner policy?

In Florida homeowner policies have a limited amount of coverage for mold resulting from a covered peril. Limited amounts of optional higher coverage are typically available. Mold resulting from a burst pipe would likely be covered while mold from an ongoing, unrepaired leaky faucet likely would not.

Will my homeowner policy cover me for dog bite liability?

Policies vary greatly with respect to dog bite liability. Some will not provide any coverage, while others allow endorsing on a limited amount of coverage. Some have specific breeds or size of dogs that are ineligible for coverage. Be sure to verify with your agent exactly what your specific policy provides for this exposure.

If I am just a renter why would I need insurance?

The landlord should have insurance on the structure and whatever personal property he has in the home, but he has no "insurable interest" in your property, and thus cannot insure it with their policy. A Renters policy (HO-4 package policy) is available and will provide you, the tenant, with liability coverage as well as for your personal property.

Does every homeowner policy have the same coverages?

While standard package policy forms (HO-3, HO-8, etc.) are offered by most companies, there are optional coverages added by endorsement that will vary from company to company. For example, some will offer a water backup option while others will not.
 

We have attempted to address common misconceptions and frequently asked questions in this section. Obviously, every situation is unique and needs to be examined on an individual basis. Please consult with your agent for information about your specific policy .

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