Frequently Asked Questions (FAQ)
GENERAL INSURANCE QUESTIONS
To protect your family and assets in a claim situation. Insurance helps you pay for property damages (for your property or someone else’s) and health/medical expenses related to an insured event. In order to drive a car you own, you must have insurance by law. The state also requires you to have insurance when you have a loan or lease on a car or home. In addition to these legal requirements, insurance can help in the event that you are sued. Common things people insure are cars, boats, homes, personal belongings such as jewelry or other valuables, and businesses. You can also purchase life insurance, health insurance, disability coverage, and personal or commercial liability insurance. Call us to determine the right coverage for your situation. We will help you protect the important things in your life. Personal insurance covers things like your home, automobile, motorhome, jet ski, motorcycle, watercraft, recreational vehicles, fine art, jewelry, or special events (such as weddings). Basically anything that is not business-related. When you are getting your car repaired or home damage fixed the deductible is the portion of the damage that you pay. Once you have paid your deductible, your insurance pays for the rest of the damage. For example, if you have a $500 collision deductible on your vehicle and are involved in an at-fault accident, you would pay for $500 of the damage and the insurer would pay the remaining amount to fix your car. You can see how this is beneficial in cases of significant damage. A low deductible means you pay very little before your insurance kicks in. However, having a higher deductible is one way to lower your overall premium (your monthly payment). Phillips Insurance is an independent agency that is better-equipped to cover your specific needs. Many major carriers will set you up with a one-size-fits-all package. Because we sell from a variety of carriers, we can “mix-and-match†your policies to give you the best protection at the lowest price. Because we are small and local, we take time to get to know our customers and their individual insurance needs. We are available to coach you through confusing situations and answer insurance questions. In addition, not all insurance carriers sell directly to clients. We provide a vital link between you and policies that would be otherwise inaccessible. Personal lines policies are based on factors such as your credit, where you live, the type of home or vehicle you possess, your age, your claims history, etc. If you have made previous insurance claims, they are filed on a database called CLUE: Comprehensive Loss Underwriting Exchange. CLUE is a claims history database created by ChoicePoint that enables insurance companies to access consumer claims information when they are underwriting or rating an insurance policy. We will also run your driving record for tickets and accidents. It is up to you, but we recommend that you call Phillips first. We will have better knowledge of your specific situation because we’ve worked with you before. We have all your policy information on file. We serve each customer on a case-by-case basis, understanding that no two situations are alike. We listen and we really do want to help you in your time of need. Of course, you are always welcome to contact your carrier directly. Click here to access providers’ direct lines. Liability is your legal responsibility for damages. For example, when you are at fault in an accident, you have liability to pay for the damages and injuries caused to others involved.Why do I need insurance?
What should I insure?
What constitutes “personal insurance”?
What is a deductible?
Why is purchasing protection through Phillips Insurance better than going directly to a major carrier?
What information does my agent need to access when he or she underwrites my policies?
If I have a claim, should I call Phillips Insurance first, or contact my carrier directly?
What is liability?
HOME INSURANCE QUESTIONS
For homeowners, this coverage applies if someone is injured or property is damaged and you are to blame. When choosing liability coverage for your home, auto, boat, personal watercraft, or RV, consider how much money you make and what you own. The level or limit of coverage should be high enough to protect all your assets if you are sued. An umbrella policy can be purchased to extend even higher liability limits over all of your personal policies. No. Flood insurance is offered through the National Flood Insurance Program. Although the government actually provides the coverage, Phillips Insurance issues the policy and, in the event of flood damage to your insured property, we would help you file a claim. Give us a call and we can find out if you are in a flood zone. If you live in a high risk flood zone we recommend you get an Elevation Certificate. Yes, the part of homeowners insurance known as personal property coverage helps repair or replace these items if they are lost, stolen or destroyed in a claim situation. There are limitations to what insurance covers if these types of items are stolen. These special possessions can be covered by Scheduled Personal Property Coverage. Talk to your agent about additional coverage. You may not own the place where you live, but you still need insurance protection. Renters insurance will protect your belongings (furniture, etc. inside the building), your liability, and relocation lodging if your home becomes uninhabitable because of an insured loss. As an added bonus, if you have renter’s insurance with the same company that holds your auto insurance, there can be a multi-policy discount. Excess Liability. Sometimes used interchangeably with “umbrella,†“excess liability†refers to extended liability coverage. If you accidentally injure someone or damage their property, you could potentially be involved in a costly lawsuit. This coverage is meant to supplement your insurance coverage if the damages exceed your liability coverage. Be sure to talk to your agent about what your excess liability covers. Dwelling coverage is the portion of the homeowners policy which protects the structure (house) itself if it is damaged or destroyed by a covered peril. Yes, landlord dwelling home policies provide special liability coverage to protect you as a landlord from your tenants. It is important to make sure you switch your policy to landlord insurance if you yourself no longer live in the home.What is personal liability coverage for?
Is flood insurance included on my homeowners policy?
Are my personal belongings (furniture, clothes, sports equipment, etc.) covered by homeowners insurance?
Are jewelry, art, antiques, comic book collections, musical instruments, or collectibles covered by Personal Property Coverage?
Do I need insurance if I am renting a home or apartment?
What is “Umbrella†Coverage?
Is homeowners insurance the same thing as dwelling coverage?
Do I need a different type of policy if I rent out my home?
AUTO INSURANCE QUESTIONS
Collision insurance covers damage to your vehicle in an at-fault accident; comprehensive insurance covers physical damage to your vehicle in situations such as a collision with a deer, a rock hitting your glass, theft, etc. Read more about each type by clicking on the links. As long as you have uninsured/underinsured motorist coverage or collision coverage, your insurance will cover the damages to your vehicle. Only uninsured/underinsured motorist coverage pays for damages associated with bodily injury or death from an accident caused by an uninsured, underinsured or hit-and-run driver (as defined by the law in the jurisdiction where the accident occurred) who is at fault. There is a $100 deductible if you know who caused the damage and a $300 deductible if you do not. There is no deductible for bodily-injury-only claims. Beyond the required liability insurance, personal auto insurance is flexible depending on your needs. You must have auto liability insurance in order to drive. This covers bodily injury or property damage when you injure someone else or their vehicle. You can purchase additional coverages – uninsured motorist, personal injury protection (PIP), comprehensive, collision, etc. – in different combinations to complete your personal auto insurance package. Auto policies can also be commercial. You may need a commercial policy if you drive for work. Delivery drivers (food or newspaper, for example) that use their personal vehicles need a commercial policy to cover their work. Taxi drivers need this coverage as well. Personal policies specifically exclude coverage for this sort of use. Personal injury protection is coverage for any person in your vehicle that is injured in an accident – whether you are at-fault or not. PIP coverage is more extensive than medical coverage which only covers medical expenses. PIP can be used to cover rehab or chiropractic costs, replace lost wages, or cover services such as laundry or housecleaning while you recover. PIP also covers you if you are hit as a pedestrian or cyclist, and covers funeral expenses in case of death.What is the difference between collision and comprehensive coverage?
What happens if I am involved in a motor accident with someone who is uninsured?
What is included under “personal†auto insurance?
Is car insurance always a sub-category of personal insurance?
What is the difference between Medical coverage and Personal Injury Protection (PIP)?
COMMERCIAL INSURANCE QUESTIONS
Errors & Omissions. This is a type of professional liability insurance that covers businesses and employees in case of inadvertent harm to their clients. Directors and Officers liability insurance (D&O) covers directors and officers of a company or non-profit for negligent acts or omissions and for misleading statements that result in lawsuits against the company. There are a variety of D&O coverages. A bond is an obligation of the surety company (the company issuing the bond) to protect one person (a.k.a. Obligee) against financial loss caused by the acts of another (a.k.a. Principal). Some common bonds are Performance Bonds, Notary Bonds, and Dishonesty Bonds: Professional liability is for specialists who are usually licensed in their field. Insurance agents, doctors, lawyers, accountants, architects etc. can be held liable for claims arising out of their error related to their professional services. General liability does not cover this exposure. Often when a business enters a contract with another entity (landlord or project contract) they must provide proof of their insurance. The agent creates a dated document showing your most current insurance coverage limits. A contract will often require that your business not only provide a certificate of insurance but also that the company or person hiring you be listed as an additional insured on the policy for a certain project or time-frame. This gives the hiring entity coverage under your business insurance in relation to a claim that comes from your work performed.What does E&O stand for?
How is D&O different than E&O?
What does a bond cover?
What is professional liability?
What is a certificate of insurance?
What is an “additional insured”?