Home Insurance FAQ

What does homeowners insurance cover?
Homeowners insurance typically covers:

• The structure of your home (dwelling coverage)

• Other structures on your property (like garages or sheds)

• Personal property inside your home (furniture, electronics, clothing)

• Liability protection if someone is injured on your property

• Additional living expenses if you can’t live in your home due to a covered event

What is not covered by homeowners insurance?
Most policies exclude damage from floods, earthquakes, and normal wear and tear. You may need separate policies or endorsements for these risks.

What is a deductible?
A deductible is the amount you pay out of pocket before your insurance coverage kicks in. For example, if you have a $1,000 deductible and a $5,000 covered loss, you pay $1,000 and your insurer pays $4,000.

How much dwelling coverage do I need?
You should have enough coverage to rebuild your home at current construction costs, not just its market value. Your insurance agent can help you estimate this amount.

What is personal property coverage?
This covers your belongings, like furniture, clothing, and electronics, if they’re damaged or stolen. High-value items (jewelry, art) may need additional coverage.

What is liability coverage?
Liability coverage protects you if you’re legally responsible for injury or property damage to others. It can help pay for legal fees and medical bills.

What is loss of use coverage?
If your home is uninhabitable due to a covered loss, this coverage helps pay for temporary living expenses, like hotel stays or restaurant meals.

Can I change my home insurance policy if my mortgage is in escrow?
Yes, you can usually change your policy at any time, but notify your lender if you switch providers4.

Why did my homeowners insurance premium increase?
Premiums can rise due to factors like increased claims in your area, home renovations, changes in your credit score, or updates to your coverage.

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Auto Insurance FAQ

What does auto insurance cover?
Auto insurance can include:

• Liability coverage (for injuries or damage you cause to others)

• Collision coverage (for damage to your car in an accident)

• Comprehensive coverage (for theft, vandalism, or non-collision damage)

• Uninsured/underinsured motorist coverage

• Medical payments or personal injury protection

What is “full coverage” auto insurance?
“Full coverage” usually means a combination of liability, collision, and comprehensive coverage. It doesn’t mean every possible situation is covered—always review your policy details5.

How much auto insurance do I need?
Most states require a minimum amount of liability insurance. However, you may want higher limits or additional coverages to better protect your assets and financial well-being.

What is a deductible in auto insurance?
A deductible is the amount you pay out of pocket for a claim before your insurance pays the rest. Deductibles typically apply to collision and comprehensive coverage.

How can I lower my auto insurance premium?

• Shop around for quotes

• Bundle home and auto policies

• Maintain a good driving record

• Increase your deductible

• Ask about discounts (good student, safe driver, etc.)

Does my policy cover rental cars?
Some policies include rental car coverage, but it’s not always standard. Check with your agent to confirm your coverage38.

What happens if I let my auto insurance lapse?
Driving without insurance is illegal in most states and can result in fines, license suspension, and higher future premiums. Always maintain at least the minimum required coverage.

How do I file a claim?
Contact your insurance agent as soon as possible after an incident. Provide details, documentation, and follow their instructions for the claims process.