AUTO & HOME INSURANCE

Most states require all owners to purchase auto liability insurance on their vehicles. In the event of an accident, the insurance company pays for the loss you are responsible for the other party. There are also other coverages for your own medical cost and repair cost for your vehicles. Policies are mostly issued for six-months or one-year- timeframes.

Coverages:

• Liability: This coverage pays for costs associated with bodily injuries and property damage suffered by others in an accident for which you are responsible.
• Uninsured Motorist Property Damage: Pays for damage to your vehicle caused by a driver who doesn’t have car insurance.
• Uninsured/Underinsured Bodily Injury: Pays for you medical expenses, lost wages, and other damages when you’re hurt in an accident caused by a driver who has insufficient or no insurance.
• Collision: Covers cost to repair damage to your car when you hit, or are hit by, another vehicle or object, regardless of who’s at fault.
• Comprehensive: Pays to repair damage to your car that’s caused by something other than a collision. Examples include fire, theft, vandalism, hail or flooding.
• Medical Payment: Covers cost of medical care you or your passengers get as the result of an accident, regardless of who’s at fault.
• Rental Reimbursement: Pays for rental car while your car is being repaired as part of a comprehensive of collision claim.
• Roadside Assistance: Covers minor repair or towing service when your vehicle breaks down due to mechanical or electrical issues.

Depending on the insurance company, policies offer numerous discounts. Below are some of the examples. Consult with you agent if your company offers any of below coverages:

• Safe driver
• Multi-car
• Multi-policy
• Passive restraints
• Anti-theft devices
• Anti-lock brakes
• Multi-policy
• Longevity
• Good student discount
• Auto accident prevention course
• Driver training
• Reduced usage

A wide range of motorhomes – from camper vans to bus conversions- is classified as recreational vehicles, or RVs. Each type of motorhomes is organized into Class A, B, and C. The cost of your RV insurance premium is determined by the class of vehicle, usage amount, whether you live in it full time, and other factors.

Classes of RV:

• Class A: Examples include luxury coach, converted bus, and motor coach up to 75 feet long.
• Class B: The smallest class of RV. These vehicles do not have a cab-over. Cargo van type designs, travel trailers and camper vans are classified as Class B.
• Class C: This class of vehicle applies to those that use a standard cargo van as the driving portion of the RV and the camper portion extends over the cab area.

While RV insurance is similar to auto insurance in a way that they both cover liability, collision and comprehensive coverage, RV insurance provides additional optional coverages that protect your personal belongings, equipment, and attached accessories. Depending on the company, RV insurance can also protect you by providing following coverages:

• Total loss replacement coverage
• Campsite and vacation coverage
• Emergency expenses
• Towing and roadside coverage
• Full-timer coverage if your RV is your full time residence

Choosing the right insurance policy is much like choosing the right motorcycle. You want it to fit your needs and lifestyle, but at the same time be within your budget. Although most states require you to carry a minimum amount of liability coverage, other types of coverage are usually optional. Always ask your insurance agent or company representative which laws apply in your state.

Liability coverage
Liability insurance covers bodily injury and property damage that you may cause to other people involved in an accident. It doesn't cover you or your motorcycle.
Find out if your coverage includes Guest Passenger Liability, which provides protection in the event that a passenger is injured on the motorcycle.
Whether or not this is included depends on the laws of your state and the company issuing the policy.

Collision coverage
Collision insurance covers damage to your motorcycle if you are involved in an accident. Your insurance company pays for damages, minus your deductible, caused when you collide with another vehicle or object.
Collision insurance usually covers the book value of the motorcycle before the loss occurred.

Comprehensive coverage
Comprehensive coverage pays for damages caused by an event other than a collision, such as fire, theft or vandalism.
However, just like collision coverage, your insurance company will pay for damages, minus your deductible, and will cover only the book value of the motorcycle.
Keep in mind most comprehensive and collision coverages will only cover the factory standard parts on your motorcycle.
If you decide to add on any optional accessories such as chrome parts, a custom paint job, trailers or sidecars, you should look into obtaining additional or optional equipment coverage.

Uninsured/underinsured motorist coverage
Uninsured/underinsured Motorist Coverage covers damages to you and your property caused by another driver who either doesn't have insurance (uninsured) or doesn't have adequate insurance (underinsured) to cover your damages.
This coverage typically pays for medical treatment, lost wages and other damages. If your uninsured/underinsured motorist coverage includes property damage, then your motorcycle would also be covered under the same circumstances.
Check with your insurance professional to see if property damage is included or needs to be purchased separately.

Tips for the cost-conscious rider
Many factors can play a role in determining what your insurance costs will be such as your age, your driving record, where you live and the type of motorcycle you own, or being a graduate of a rider-training course.
Many companies offer discounts from 10 to 15 percent on motorcycle insurance for graduates of training courses, such as the Motorcycle Safety Foundation (MSF) rider course.
Riders under the age of 25, usually considered a higher risk, may see some savings by taking this course. It’s also a good idea for cyclists who have already had accidents. Maintaining a good driving record with no violations will also help reduce your premiums.
In many northern states, riders may save money by buying a "lay-up" policy. With a lay-up policy, all coverage except comprehensive is suspended during winter months.
Find out what discounts your insurance representative offers. Multi-bike discounts for those insuring more than one bike, organization discounts, if you’re a member of a motorcycle association, and mature rider discounts for experienced riders, are just a few possibilities. Discounts can range anywhere from 10 percent to 20 percent, depending on the company and your state. Availability and qualifications for discounts vary from company to company and state to state.
Keep in mind that the type, style (such as a sports bike vs. a cruiser) and age of the motorcycle, as well as the number of miles you drive a year and where you store your bike may also affect how much you pay for your premium.

Most companies provide limited coverage for property damage for small boats such as canoes and small sail boats or small power boats with less than 25 mile per hour horse power under a homeowners or renters insurance policy.
Coverage is usually about $1,000 or 10 percent of the home's property value and generally includes the boat, motor and trailer combined.
Liability coverage is typically not included–but it can be added as an endorsement to a homeowner policy.

Larger and faster boats such as yachts, and personal watercraft such as jet skis and wave runners require a separate boat insurance policy.
The size, type and value of the craft and the water in which you use it factor into how much you will pay for insurance coverage.
For physical loss or damage, coverage includes the hull, machinery, fittings, furnishings and permanently attached equipment as part of either an actual cash value policy or on an agreed amount value basis.
These policies also provide broader liability protection than a homeowner policy. But there are distinct differences between the two types of policies.

Actual Cash Value
These policies pay for replacement costs less depreciation at the time of the loss. In the event of a total loss, used boat pricing guides and other resources are used to determine the vessel’s approximate market value.
Partial losses are settled by taking the total cost of the repair less a percentage for depreciation.
Agreed Amount Value
This type of policy means that you and your insurer have agreed on the value of your vessel and in the event of a total loss you will be paid that amount. Agreed Amount Value policies also replace old items for new in the event of a partial loss, without any deduction for depreciation.

Boat insurance also covers:

• Bodily injury: for injuries caused to another person
• Property damage: for damage caused to someone else’s property
• Other driver liability: for any legal expenses incurred by someone using the boat with the owner’s permission
• Medical payments: for injuries to the boat owner and other passengers Theft

If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgements against you and your attorney's fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. That's what a personal umbrella liability policy provides.
An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander.
Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage.
Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowners policy before selling you an umbrella liability policy for $1 million or higher of additional coverage.

Homeowners insurance is a type of property insurance that covers losses and damages to your house. Homeowners insurance also covers liability claims involving the people residing at the covered location. The policy usually pays for damage to interior, exterior, personal assets, and bodily injury that arises while on the property. While there are specific rules and exclusion for each policy, below is a list of basic breakdowns of a homeowner insurance policy.

Coverage A. Dwelling
A part of homeowner policy that pays the costs to repair or rebuild your home after it sustains damages by a covered peril. An example of covered perils is fire or windstorm.

Coverage B. Other Structures
Helps you pay to repair or replace structures other than your home, such as a fence or mailbox. Other structures are detached from your main living property. Examples include a fence, detached garage, swimming pool, and gazebo.

Coverage C. Personal Property
Personal property coverage on homeowner policy covers items inside your home. Those items can be furniture, appliances, and other personal possessions. It is important to note that your personal property can be covered by either the actual cash value or replacement cost.
A replacement cost policy pays for the repair or replacement of damaged property with material of similar kind and quality while actual cash value methods subtracts depreciation value from the replacement cost.
In addition, if you own any high value objects, like jewelry or music instruments, a standard policy will not provide coverage regardless whether the cause of loss is covered peril or not. In order to get those valuable items covered, you have to purchase an endorsement to increase the limits on certain objects or you need to purchase a special line of insurance.

Coverage D. Loss of Use
While your home is being repaired, you might have to find another place to live that can substitute your original living space. You might have to live at a hotel and eat out because both of your bedroom and kitchen are ruined.
Luckily, your loss of us coverage on homeowners policy pays you for additional living expenses while you home is being repaired or built.

Coverage E. Personal Liability
Personal liability insurance is about financial protections for you and your family members.
It covers bodily injury or property damage sustained by others which you or covered member of your family is legally liable for. Be aware that your pet is also defined as a covered family member. For example,
if your dog bites a person, the medical, legal, and other indemnification expenses will be covered by your personal liability on home insurance. Other common examples of personal liability claims are:

• Home accidents
• Falling trees
• Intoxicated guests
• Injured domestic workers

Coverage F. Medical Payments
If someone is injured on you property, the medical payment coverage pays the medical cost.
Unlike personal liability coverage, medical payments are paid regardless whose fault caused the injury. Most of the time, medical payments are used for resolving small claims.

If you reside at your own home, you need a standard homeowner policy that covers your home and personal assets. However, you might have a home that you rent to others. In this case, you need a landlord policy. Generally speaking, landlord policies are slightly more expensive than the homeowner policies because there is a renter, not the owner, living in the home.
Coverages are similar to homeowner policies, but method of choosing the adequate limit may be different because purposed of the two policies are unique.

Coverage A. Dwelling Coverage
A part of homeowner policy that pays the costs to repair or rebuild your home after it sustains damages by a covered peril. An example of covered perils is fire or windstorm.

Coverage B. Other Structures
Helps you pay to repair or replace structures other than your home, such as a fence or mailbox. Other structures are detached from your main living property.
Examples include a fence, detached garage, swimming pool, and gazebo.

Coverage C. Personal Property
Although you don’t live at the property, you might have your own items that are being used by the renters.
For example, damage to home appliances like oven and refrigerator you let the renters to use are covered under personal property on landlord policies. The renter’s personal property is covered by the renter’s insurance policy.

Coverage D. Loss of Use
While loss of use coverage on homeowners policy is used to cover additional living expenses incurred while the home is being repaired or rebuilt, loss of use coverage on landlord policies are used to cover the loss of rents caused by renters moving out while the home gets repaired.
This particular coverage is the biggest difference between a standard homeowners and a landlord policy.

Coverage L. Personal Liability
Personal liability defends you when the tenant of your property brings a lawsuit on an incident occurred on the property.
It pays medical costs as well as defense coverage. Not all landlord policies include personal liability coverage, so it is important to make sure you add this coverage on your policy.

Coverage M. Medic all Payments
If someone is injured on you property, the medical payment coverage pays the medical cost. Unlike personal liability coverage, medical payments are paid regardless whose fault caused the injury.
Most of the time, medical payments are used for resolving small claims.

If you rent a house, condo, or apartment, you may not have to repair or rebuild the property, but you still want to protect your personal possessions.
Renters insurance also provides personal liability coverage like other home insurance policies. Because the actual building is not a subject to protection, the premium of renters insurance is significantly lower in general.

Coverage C. Personal Property
Personal property coverage on covers items inside your home. Those items can be furniture, appliances, and other personal possessions. It is important to note that your personal property can be covered by either the actual cash value or replacement cost.
A replacement cost policy pays for the repair or replacement of damaged property with material of similar kind and quality while actual cash value methods subtracts depreciation value from the replacement cost.
In addition, if you own any high value objects, like jewelry or music instruments, a standard policy will not provide coverage regardless whether the cause of loss is covered peril or not. In order to get those valuable items covered, you have to purchase an endorsement to increase the limits on certain objects or you need to purchase a special line of insurance.

Coverage D. Loss of Use
While the property you rent is being repaired, you might have to find another place to live that can substitute your original living space. You might have to live at a hotel and eat out because both of your bedroom and kitchen are ruined.
Luckily, your loss of us coverage on homeowners policy pays you for additional living expenses while you home is being repaired or built.

Coverage E. Personal Liability
Personal liability insurance is about financial protections for you and your family members. It covers bodily injury or property damage sustained by others which you or covered member of your family is legally liable for.
Be aware that your pet is also defined as a covered family member. For example, if your dog bites a person, the medical, legal, and other indemnification expenses will be covered by your personal liability on home insurance. Other common examples of personal liability claims are:

• Home accidents
• Falling trees
• Intoxicated guests
• Injured domestic workers

Coverage F. Medical Payments
If someone is injured on you reside, the medical payment coverage pays the medical cost.
Unlike personal liability coverage, medical payments are paid regardless whose fault caused the injury. Most of the time, medical payments are used for resolving small claims.

Mobile home insurance policies provide two basic kinds of coverages – physical damage and personal liability coverage. Mobile home insurance is available for different types of mobile homes like rental mobile homes, commercial mobile homes, seasonal mobile homes and mobile homes located in a park or on private property.

Physical Damage
Physical damage coverage pays for accidental damage to your mobile home, belongings and other structures (such as attached patios, decks, garages, or storage) resulting from covered cause of loss which usually include fire, hail, wind, theft, vandalism, and many more.
The conditions and terms are exclusive to each policy, so it is important to review the details of your policy. In many cases, coverage under a regular policy doesn’t apply while the mobile home is in transit. In addition, like any other home insurance policies, loss caused by flood is excluded.

Personal Liability Coverage
Liability coverage applies when there is a claim or a lawsuit against you due to bodily injury or property damaged occurred on your property or due to your activities.
Claims usually include medical expenses, lost wages, pain and suffering, and property damage. It is important to note that liability coverage only valid to 3rd party, not you or your household members.

Your homeowner policy does not cover loss caused by flood. Flood insurance is issued by National Flood Insurance Program (NFIP) which ran by the federal government. If you live in a flood zone, or even if you don’t live in a flood zone but want to protect yourself from the unexpected incident, it is important to make sure you purchase a separate flood insurance policy.

Quick Facts

• Flood damage is defined as the damaged caused by overflowing of water beyond its normal confines. Therefore damage caused by overflows of water from a sump pump or back up through sewer or drains is not covered by flood insurance.
• The average food loss is $38,002.
• Nearly 25 percent of all flood insurance claims come from areas not considered high risk 1.
• There is a waiting period before your flood insurance policy goes into effect, typically 30 days from the application and payment date.
• If flood insurance is required by your mortgage bank, you may not have to wait 30 days.