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| General FAQ |
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Q.
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What
kinds of questions should I be expected to answer when
I am applying for an insurance policy? Why do
insurers need so much information? |
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A.
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When you apply for an insurance policy, you will be
asked a number of questions. For example, the agent
might ask you your name, age, gender, address, etc. In
addition, you will be asked a number of other questions
which will be used to determine how likely you are to
make a claim.
When an insurance
company is deciding whether or not to offer car
insurance to a potential customer, it will want to
know about the person’s previous driving record,
whether they have any recent accidents or tickets, and
what type of car is to be insured.
Insurance companies have
different programs for different customers. Adults
with good driving records will generally pay less for
auto insurance than will a young driver with traffic
tickets. In order to determine which program you
qualify for, an insurance company needs basic
information about you.
In addition to your age, gender and driving experience,
information about the vehicle you drive, and how you
drive it, is also needed to determine a fair price. For
example, a large luxury car costs more to repair or
replace than a sub-compact; and, someone who commutes 30
miles each way is more likely to be in an accident than
someone who rides the bus to work and drives only on
weekends. |
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Q.
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What
are the advantages to using an agent to purchase
insurance? |
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A.
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By using an
agent to purchase insurance, the policyholder receives
more personal service. An agent with whom there is
direct contact can be vital when purchasing a product.
A local, independent agent is able to deliver quality
insurance with competitive pricing and local
personalized service. |
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| Auto FAQ |
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Q.
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I
have an older car whose current market value is very
low - do I really need to purchase automobile
insurance? |
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A.
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Most states have insurance laws that require drivers
to have at least some automobile liability insurance.
These laws were enacted to ensure that victims of
automobile accidents receive compensation when their
losses are caused by the actions of another individual
who was negligent.
It is often the
case that the cost of repairing the damages to an
older car is greater than its value. In these cases,
your insurer will usually just “total” the car and
give you a check for the car’s market value less the
deductible. Many people with older cars decide not to
purchase any physical damage coverage.
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Q.
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What
is the difference between collision physical damage
coverage and comprehensive physical damage coverage? |
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A.
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Collision is
defined as losses you incur when your automobile
collides with another car or object. For example, if
you hit a car in a parking lot, the damages to your
car will be paid under your collision coverage.
Comprehensive
provides coverage for most other direct physical
damage losses you could incur, including theft. For
example, damage to your car from a hailstorm will be
covered under your comprehensive coverage.
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Q.
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What factors can
affect the cost of my car insurance? |
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A.
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A number of
factors can affect the cost of your car
insurance, some of which you can control and
some that are beyond your control.
The type of car you
drive, the purpose the car serves, your driving
record, and where the car is garaged can all affect
how much your automobile insurance will cost you.
Even your marital
status can affect your cost of insurance. Statistics
show that married people tend to have fewer and less
costly accidents than do single people.
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| Homeowners
FAQs |
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Q.
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What
factors should I consider when purchasing homeowners
insurance |
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A.
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Determine the amount
and type of insurance that you need. The coverage
limit of your house should equal 100% of its full
replacement cost. Also decide if the personal
property and personal liability limits are adequate
for your needs. Determine which, if any, additional
endorsements you want to add to your policy. For
example: Increase medical, fine arts or jewelry
endorsements |
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Q.
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What
are some practical things I can do to lower the cost
of my homeowners insurance? |
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A.
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There are a
number of things you can do to lower the cost of your
homeowners insurance.
The easiest thing to do is get a comprehensive review
of your policy and needs from your local agent.
It is not surprising
to find quotes on homeowners insurance that vary by
hundreds of dollars for the same coverage on the same
home. When you shop, be careful to make sure each
insurer is offering the same coverage.
Another way to lower
the cost of your homeowners insurance is to look for
any discounts that you may qualify for. For example,
many insurers will offer a discount when you place
both your automobile and homeowners insurance with
them. Other times, insurers offer discounts if there
are deadbolt exterior locks on all your doors, or if
your home has a security system. Be sure to ask us
about any discounts for which you may qualify.
Another easy way to
lower the cost of your
homeowners insurance is to raise your
deductible. Increasing your deductible from $250 to
$500 will lower your premium, sometimes by as much as
five or ten percent.
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Q.
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What
does homeowners insurance cover? |
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A.
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The typical
homeowners policy has two main sections: Section I
covers the property of the insured and Section II
provides personal liability coverage for the insured.
Almost anyone who owns or leases property has a need
for this type of insurance. Usually, homeowners
insurance is required by the lender to obtain a
mortgage. |
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Q.
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What
is the difference between "actual cash value" and
"replacement cost"? |
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A.
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Covered losses
under a homeowners policy can be paid on either an
actual cash value basis or on a replacement cost
basis. When “actual cash value” is used, the policy
owner is entitled to the depreciated value of the
damaged property. Under the “replacement cost”
coverage, the policy owner is reimbursed an amount
necessary to replace the article with one of similar
type and quality at current prices. |
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- Determine the
amount and type of insurance that you need. The
coverage limit of your house should equal 100% of
its replacement cost. If your policy limit is less
than 80% of the replacement cost of your home, any
payment from your insurance company will be less
than the full cost to replace your home — you’ll
have to pay the rest out of your own pocket. Also,
decide if the personal property and personal
liability limits are adequate for your needs.
- Determine which,
if any, additional endorsements you want to add to
your policy. For example, do you want the personal
property replacement cost endorsement, an earthquake
endorsement or a jewelry endorsement?
- Once you have
decided on the coverage you want in your homeowners
insurance policy, consult us. We will be able to
help you determine if there are any gaps in coverage
you might not have been aware of, explain the
details of the policy’s exclusions and limitations
as well as recommend an insurance company that will
live up to your expectations.
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Q.
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What
are the policy limits (i.e., coverage limits) in the
standard homeowners policy? |
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A.
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Note: this answer is
based on the Insurance Services Office’s HO-3 policy.
The dwelling and
other structures on the premises are protected on an
“all risks” basis up to the homeowner insurance policy
limits. “All risks” means that unless the policy
specifically excludes the manner in which your home is
damaged or destroyed, there is coverage. The policy
limit for the dwelling is set by the policy owner at
the time the insurance is purchased. The policy limit
for the other structure is usually equal to 10% of the
policy limit for the dwelling.
Losses to your
personal property are covered on a “named perils”
basis. “Named perils” means that you have coverage
only when your property is damaged or destroyed in the
manner specifically described in the policy. The
policy limit on the coverage is equal to 50% of the
policy limit on the dwelling. Limits for the coverage
for the additional expenses that the policy owner may
incur when the residence cannot be used because of an
insured loss is equal to 20% of the policy limit on
the dwelling.
The coverage limit
on personal liability is determined by the policy
owner at the time the policy is issued. The coverage
limit on medical payments to others is usually set at
$1000 per injured person.
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Q.
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Where
and when is my personal property covered? |
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A.
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Personal
property (except property that is specifically
excluded) is covered anywhere in the world. For
example, suppose that while traveling, you purchased a
dresser and you want to ship it home. Your homeowners
policy would provide coverage for the named perils
while the dresser is in transit — even though the
dresser has never been in your home before. |
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Q.
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Do
I need earthquake coverage? How can I get it? |
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A.
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The standard
homeowner insurance policy does not pay for direct
damages caused by “earth movement.” “Earth movement”
is a much broader term than earthquake. It includes
earthquake, volcanic activity and other earth
movement. If you live in an area that is more likely
to have an earthquake, you’ll pay more than if you
live in an area that is unlikely to have an
earthquake. Manor Insurance can help
you weigh the costs and benefits of this coverage
before you decide to purchase. |
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| Renters
FAQs |
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Q.
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Why
would I want to buy renters insurance? |
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A.
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If you live in
an apartment or a rented house, renters insurance
provides important coverage for both you and your
possessions. A standard renters policy protects your
personal property in many cases of theft or damage and
may pay for temporary living expenses if your rental
is damaged. It can also shield you from personal
liability. Anyone who leases a house or apartment
should consider this type of coverage. |
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Q.
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How
does a renters policy protect my personal property? |
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A.
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A renters
insurance policy provides named perils coverage. This
means that the policy only pays when your property is
damaged or destroyed by any of the ways specifically
described in the policy. These usually include: |
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- Fire or lightning
- Windstorm or hail
- Explosions
- Riots
- Aircraft
- Vehicles
- Smoke
- Vandalism or
malicious mischief
- Theft
- Falling objects
- Weight of ice,
snow, or sleet
- Accidental
discharge or overflow of water or steam
- Freezing
- Sudden and
accidental damage from artificially generated
electrical current
- Volcanic
eruptions (but this doesn't include earthquake or
tremors)
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Renters
coverage applies to your personal property no matter
where you are in the world. This means you’re covered
when you are on vacation as well as at home. |
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Q.
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Why
do some apartment complexes require tenants to have
renters insurance? |
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A.
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Owners of
apartment complexes buy insurance policies for their
liability and to cover their buildings and personal
property. However, these policies do not cover any of
the tenant’s property or liability. By requiring their
tenants to have renters insurance, the apartment owner
is assured that the tenants will not mistakenly
believe the apartment complex owner’s policy will
provide coverage for a tenant’s property or personal
liability. Although this type of requirement benefits
that apartment complex owner, there are benefits to
the renter as well. Manor Insurance
recommends that you purchase renters insurance
regardless of what your landlord requires. |
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Q.
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What
if I share my apartment with a roommate? Do we both
need to have renters insurance? |
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A.
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Standard
renters insurance policies cover only you and
relatives that live with you. If your roommate is not
a relative, each of you will need your own renter’s
policy to cover your own property and to provide you
liability coverage for your own actions. |
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| Umbrella |
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Q.
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What
is a personal umbrella liability policy? |
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A.
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The personal
umbrella liability policy is designed to increase your
liability protection. This single policy acts as an
“umbrella” over all of your other personal liability
policies — home, auto, boat, RV, etc. — so you have a
higher personal liability limit than what would
otherwise be available. In certain circumstances, an
umbrella policy may provide personal liability
coverage that is otherwise excluded from your other
policies. For example, an umbrella policy provides
coverage anywhere in the world, whereas your auto
policy usually provides coverage in the US and Canada
only. |
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Q.
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How
do I know if I need a personal umbrella liability
policy? |
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A.
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It used to be
that the only people who needed personal umbrella
liability policies were wealthy individuals who had
sizable amounts of personal assets that would be at
risk in a lawsuit.
However, in our very
litigious society, even individuals with modest
incomes and assets are often subjects of large
lawsuits. Since they are even less able than a wealthy
individual to pay large damage awards, they recognize
the need to have coverage limits greater than what can
be obtained from their homeowner or auto policies.
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