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Frequently Asked Questions
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General FAQs
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Q: Why should I use an independent agent to purchase insurance rather than buying online? Wouldn’t it be less expensive that way?
A: Remember the old adage…”You get what you pay for.” Buying the proper insurance can be a complicated and confusing process and making the wrong choices without the advice of an insurance professional can end up costing you more in the long run. Our policies are priced to be competitive with the online companies and we provide the advice you need for free.
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Auto Insurance FAQs
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Q: What limit do you recommend for liability?
A: Liability insurance protects you for negligent accidents causing bodily injury and/or property damage. Because we live in a lawsuit crazy world, we recommend carrying high limits. Even if you feel that because you may have few assets to protect and should choose a lesser limit to save money, the courts have the ability to attach future earnings.
Q: If my car is damaged or destroyed, how much can I expect to collect?
A: If you carry physical damage coverage (comprehensive and/or collision) you will be paid the cost to repair your car but no more than its actual cash or book value, less the deductible you chosen. If you have a new previously unregistered vehicle, we have companies that provide full replacement cost, with no deduction for depreciation as an option.
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Homeowner Insurance FAQs
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Q: How much coverage should I be purchasing for my home? Since a total loss is a rare occurrence, why do I need to cover it in full?
A: We always recommend that you insure your home for its full replacement value, or what it would cost to reconstruct. Many people do not realize that underinsurance can result in claims not being paid in full. Most policies state that unless the home is insured to a minimum limit, usually 80% of its replacement value, depreciation will be applied to the loss.
Q: I am buying a condominium unit. What coverage do I need?
A: The first thing to determine is… what property is my responsibility to insure? Is it everything inside the unit, including plumbing fixtures, cabinetry, etc. or just what I upgrade after taking ownership? If unsure, we recommend contacting the condo or townhouse association for answers. We can help you with this process and design a policy to fit your situation. Our policies include coverage for your contents, building items you are responsible for as well as liability and loss assessment coverage.
Q: I just received my policy and noticed something about a “Hurricane / Wind deductible”. What is that all about?
A: Quite a few insurance companies have added separate wind deductibles to policies for properties located near water. When a loss occurs, a deductible stated as a percentage (either 1%, 2% or even as high as 5%) is applied to the loss. For example, if your home is insured for $300,000, your deductible would be $6,000 (2% x $300,000). At HTK, we have companies that will insure your home with the standard deductible for any type of loss. Call us to see if you qualify.
Q: Why should I consider flood insurance if my home is not in a “flood zone”? And isn’t flood damage covered by my Homeowners policy?
A: Damage caused by flooding is not a covered peril under Homeowners or any other type of property insurance policy. Government statistics indicate that approximately 25% of flood insurance claims come from areas outside of high-risk zones. Why risk your home when you can purchase a “Preferred Risk “policy starting as low as $119 per year.
Q: What is a Personal Umbrella policy?
A: A Personal Umbrella policy is designed to increase your liability protection. It acts as an “umbrella” over all of your other personal liability policies, including your home, auto, boat, rental properties and recreational vehicles. It is purchased with limits beginning at $1 million for a premium as low as $125 per year. It is issued as either a single policy or in some cases added as an endorsement to the Homeowners insurance. It is quite inexpensive for the peace of mind it provides.
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Business Insurance FAQs
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Q: As an employer, can I be held responsible if one of my employees using his own car injures someone or causes damage?
A: It has been held by the courts that a relationship exists between an employer and employee, sometimes referred to as the “Master-Servant” rule. An employee acting on behalf of his or her employer can make the employer liable for their negligent actions. Every business, whether or not doing delivery, should purchase a relatively inexpensive coverage known as “Employers Non-Owned Auto Liability”.
Q: I have heard lately of an increase in lawsuits brought by employees against their employers for all sorts of reasons. What can I do to protect my business against this?
A: “Employment Practices Liability” insurance is a product designed to provide coverage for employers being sued for actions alleging wrongful termination, failure to promote, age, race, nationality and gender discrimination as well as sexual harassment and many other allegations.
Contact us for a quote.
Q: I own a multi-tenant commercial building and am concerned about getting drawn into a lawsuit stemming from the actions of a tenant. What can I do about this?
A: Make certain your lease addresses this issue. You can specify that in the event of a lawsuit caused by the actions of a tenant, the tenant shall “indemnify and hold harmless” the landlord. The lease should also state that the tenant shall carry liability insurance with a limit you determine to be adequate and also name you, as an “additional insured”. You should require evidence known as a “Certificate of Liability Insurance” from your tenants every year. We recommend consulting an attorney when drawing the lease.
Q: I am a contractor and have to sign contracts and equipment leases. To be honest, I don’t have time to read the fine print and sometimes have trouble understanding a lot of the language. Doesn’t my commercial liability insurance cover what I’m signing?
A: Ideally, you should take the time to read each contract and question anything you don’t understand because contracts can be financially hazardous to your health. Your commercial liability insurance may not provide coverage for the situations the contract is making you responsible for. We always advise that you seek advice of an attorney before putting yourself at risk. At the very minimum you should consult with your independent insurance agent. We’re here to help! |
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