Frequently Asked Questions

1. What is uninsured motorist?

• An often misunderstood CA auto insurance coverage is CA uninsured motorist insurance coverage which protects you and the people in your car in the event another driver hits you with inadequate CA insurance coverage or no CA auto insurance at all.  Often drivers that carry low auto insurance liability limits do not have many assets to protect.  So in the event that you or someone in your car is badly injured by another driver and they have inadequate auto insurance liability limits there is nothing to gain by suing the driver.  In that case you can put a claim in under your own insurance policy for CA uninsured motorist insurance coverage.  CA uninsured motorist insurance coverage is a relatively inexpensive coverage that is extremely important.

2.   What is the difference between comp and collision coverage? 

• Comp (a.k.a Comprehensive or Other Than Collision) and Collision are physical damage insurance coverages on a personal or business auto insurance policy.
• Collision coverage provides reimbursement for damage to your vehicle after you’ve been in a car accident in which there is no fault or you are at-fault. Comp provides reimbursement for a set of named perils that include, fire, hit an animal, falling object, car get’s struck by lightning and more.
• Comp will often be provided in conjunction with full glass coverage but is technically a separate part of the auto insurance policy.

3. Do I need more than the State Minimum coverage requirements? 

• The quick and easy answer to this is yes. You should have more insurance coverage than the state mandated minimum auto coverages. But it all depends on your interpretation of what insurance is for. If you believe that insurance is in place to protect you for your “Worst Day” than the state minimum auto coverage is never going to protect you against that “Worst Day.” I can’t tell you what level of insurance coverage you should have but I can tell you that the state minimum insurance coverage will not properly protect you in the event something horrible happened.

1. What is water back up and sump pump failure insurance?

• Water back up and sump pump failure coverage is an endorsement to the homeowner insurance policy that provides coverage to property damaged by water that backs up into the home through pipes, drains, sewer, water-service, sump pump and any other type of fluid transfer system from the house.
• Water backup is very common in areas where the public water systems are old such as the Albany, Schenectady, Troy Metro areas.
• It is important to understand the water back up and sump pump failure coverage is an endorsement to the homeowners insurance policy.  This coverage Does Not come standard.  You have to add the coverage and in most cases pay an additional premium otherwise you do not have coverage for this type of loss.

2. What is the difference between a landlord policy vs. a homeowner policy?

•  At the 10,000 foot view, the biggest difference between a landlord policy and a homeowner policy is that a landlord policy does not contain personal property coverage, (coverage for your stuff), on the standard policy. You are also able to get coverage for loss of rents at the time of a major covered claim.

3.  How does actual cash value (ACV) affect a homeowners insurance claim?

•  Actual Cash Value is way of valuing a property insurance loss after a claim. The main concept that you need to understand with actual cash value is that in the event of a loss if your policy is actual cash value, depreciation will be taken out of your payment.
• Meaning if you have 10 year old cabinets with a 20 year life and those cabinets cost $10,000 to replace. You will get a check from the insurance carrier for $5,000. (Very simplified for this example this is just informational for your understanding that is not the actual amount you are guaranteed to get).
• Yes in most cases actual cash value policies cost less than replacement cost policies but the penalty when you have a loss can be severe.

1. How does an umbrella insurance policy work?

•  An umbrella insurance policy works exactly as the name describes. The umbrella policy sits over the top of underlying insurance policies and provides an extra layer of liability insurance.
• In the case of a personal umbrella underlying policies would include auto insurance, homeowners insurance, boat insurance, rental property insurance, etc. If the limit of liability is used up on the underlying policy then the umbrella kicks in to provide additional coverage.
• Umbrella insurance policies are an important part of every insurance program.

2. What does a personal umbrella policy cover?

• A personal umbrella policy acts as last line of liability defense in the event the limits of your underlying policies, (Think Auto, Home, Boat, etc) are used up.
• Let’s say you get sued for $1,000,000. Your homeowners insurance has a limit of $500,000. So after your homeowners insurance pays you still are obligated for an additional $500,000. If you don’t have an umbrella policy, that payment is on you (Think sell your house, assets, retirment, etc). If you have an umbrella policy (Standard limit is $1,000,000) the umbrella will come in and provide coverage for the additional $500,000 that you owe.

3. When should I purchase a personal umbrella policy?

• As an insurance professional who tries to provide my clients with the proper amount of insurance protection,  I recommend purchasing an umbrella policy when the insured owns an auto. However, most people do not buy umbrella policies until one of two things happen: 1) They buy properties (i.e. home, rental property, land). 2) They have children.

We encourage you to look into a personal umbrella policy today!

• 1. What is covered in a General Liability Insurance Policy?
•  Commercial general liability insurance is one of the most common insurance coverages purchased by businesses. Most people think that commercial general liability insurance only provides coverage for slips, trips and falls, or 3rd party property damage.
• There is obviously a lot more to general liability coverage than just slips, trips and falls. An easier way of trying to understand the types of claims scenarios that would be covered is to understand what is NOT covered.

What is NOT covered in a General Liability Insurance Policy?

• General liability insurance is Not a catch all coverage. There are many liability related accident and incidents that can happen in your business that are not covered by commercial general liability insurance.
• General liability insurance will Not protect against things you do on purpose.
• General liability insurance does Not cover your building or property.

2. How is a Business Owners Policy different from General Liability Insurance?

• A business owners policy is a package of coverages designed to address the needs of a specific class of business in an easy to purchase format.
• When you think of business insurance, what is the first coverage that comes to mind?
• It’s most likely commercial general liability insurance. General liability insurance provides legal defense and insurance protection against things like slips, trips and falls as well as 3rd party property damage.
• General liability is a very important coverage to your business, but it is only one of the many coverages that you need to properly protect your business.

A business owners policy, or BOP, is a package of coverages, including general liability, that have been grouped together to provide, at minimum, coverage for the basic common losses faced by a business.

Not every business has access to a business owners policy because of the unique exposures that business might have. It’s important talk to a independent insurance agent about whether or not a business owners policy is a good fit for your business.

1. Can an employee sue my business if I have Workers Compensation?

• Workers Compensation insurance was created to guarantee employees medical benefits in the event of work related injury. In exchange for that guarantee, employees lose the ability to sue their employer.
• However, that may be the intent of the workers compensation insurance but it is still possible for an employee to sue. It doesn’t necessarily mean that the employer was negligent.

2. When do I need to purchase Workers Compensation?

• In the state of California you are required to purchase Workers Compensation starting the first day that you have an employee working for you.
• Most often you can take a workers compensation policy out with the same insurance carrier that provides you Business Insurance or General Liability. There are select cases where only the State Fund Workers Compensation Fund will provide coverage.

• 1. Should I package my auto and homeowners insurance policies with the same carrier?
• Absolutely YES! If you can package your home and auto together with the same insurance carrier you should do it. There are two reasons for this…
• The first reason is simple, you get a discount on both your Home and Auto Insurance if they are packaged with the same carrier.
• When dealing with a large auto insurance claim, if your auto and home is bundled together, it is much easier for both companies to work together when handling a larger personal liability claim. 

2. How do I insure a vacant building?

• Vacant homes can be tricky to place insurance on. This is because most of the well-known standard insurance carriers do not want to write insurance for vacant homes.
• Statistically speaking vacant homes are much more likely to have a loss than an occupied home.
• You want to make sure that you disclose that the building is going to be vacant, what the procedures are for securing the building and how long you plan for the building to be vacant.
• Then do business with an insurance carrier that specializes in vacant homes.