Q:  What is business income coverage?

A: Business income insurance may reimburse you for ongoing expenses such as utility bills while your business is closed due to a property loss. This coverage also provides your loss of net income that you would have earned if a covered cause of property loss had not occurred. This coverage may also cover losses due to down time or extra expenses needed to restore operations (such as additional property rental expense).

Q:  Now that my house has decreased in market value, can I reduce the limit of insurance coverage on my dwelling and reduce my premium?  

A:  The decrease in the market value of your home was a result of a decrease in demand. Property insurance companies are concerned with the cost to repair or replace the damage to a home with comparable building materials. The insurable limit of your home is a factor of its replacement cost as opposed to its market value. While the market value of homes in certain areas has decreased significantly, the replacement construction value of homes has decreased only slightly. It is not advisable to reduce the insured value of your home at this time.
   

Q:  Do I have flood and earthquake insurance coverage on my homeowners policy?  

A:  Almost all homeowners insurance policies exclude the perils of flood and earthquake. These perils are considered catastrophic in nature and require special handling. They need to be purchased under a separate insurance program. Both these perils can be insured through our agency. Your customer service representative would be more than happy to help you obtain quotes for these perils.
   

Q:  Do I need a personal umbrella policy?  

A:  Personal umbrella policies provide excess liability coverage over your personal liability and automobile liability. Our litigious society is producing higher lawsuit settlements and awards every day. Personal umbrella policies will provide you with an additional layer of liability protection needed to adequately protect your valuable assets. Under most circumstances, the premiums for a personal umbrella policy are very reasonable.
 

Q:  If I currently have liability, comprehensive and collision coverage on my personal auto policy, must I purchase this same coverage when I rent a car on vacation?  

A:  Most personal automobile insurance policies will provide the same coverages provided on your own auto as they would on the rental vehicle. Your coverage will extend to a temporarily rented automobile. However, many rental car contracts stipulate the lessee needs to pay for the replacement cost of the vehicle if it is stolen or damaged. Your personal  auto policy may only pay the actual cash value if the rental car is damaged or stolen. While your personal automobile policy may provide most of the coverages needed on the rental vehicle, there could exist a gap in coverage if the vehicle is damaged. It is a good idea to either analyze the rental contract or purchase some insurance from the rental car company to be completely covered.