Using an Umbrella to Cover Gaps in Coverage
January 10, 2020
January Employee of the Month- Colton Hearn
January 28, 2020
Whether you are a first-time homebuyer, just had a child, or you are simply shopping for better coverage, choosing the right insurance coverage is not easy.
Making an informed decision about your insurance policy is important to your overall financial well-being. But, in order to know if you are making the right choices, you need to know what questions to ask. There are the obvious questions, such as “what kind of coverage will I need?”, “what will my monthly cost/premium be if I choose this coverage?”, “How will my rate change if I have an accident?”
However, by asking the right questions rather than the obvious ones, an agent can better assist you in your search for insurance coverage, while saving you money, time, and frustration.
Here are five questions to ask your insurance agent:
What is full vs. limited tort? And which should I have?
Pennsylvania drivers can choose either full or limited tort when preparing a car insurance policy. Full tort allows an individual to sue for pain and suffering after an accident. On the other hand, limited tort lowers your monthly premium, but by choosing this option you forfeit your right to sue for pain and suffering.
Am I covered in the event that my home floods? What if I have water damage?
Not all water damage is covered by your homeowner’s insurance. For instance, if your basement floods after a heavy rainstorm, you are probably not covered. Unless you purchased flood insurance. However, if your basement floods because of a pipe burst and prior to the incident there was no necessary maintenance, it may be covered.
It is important to talk to your insurance agent about your concerns. If you are in an area that typically floods or you have a history of water damage, they will typically recommend investing in flood insurance or other similar services.
When do I have to add my child to my auto policy?
In Pennsylvania, teen drivers with a learner’s permit and supervised by a licensed adult do not need their own car insurance policy. Only once a teen is licensed will they need coverage. As you know, car insurance for those under 25 years old can be costly, so remember to ask your agent about good student discounts and deductions for teens who have taken driver’s education classes.
Do I need insurance if I live in an apartment?
Yes. If you are renting an apartment, you should have renter’s insurance and liability coverage. Typically, your landlord will insure the building. But, what this leaves all your personal belongings at risk. If an accident were to happen, your electronics, clothing, furniture, etc. would not be covered under your landlord’s policy.
Liability coverage protects you in the event of an accident. For example, if you have a guest over and they fall down the stairs, liability coverage assists with legal fees and other costs the guest may hold you accountable for.
Will my health insurance still cover me if I travel to another state? What if I travel out of the country?
If you travel out of state often, you can breathe a sigh of relief. All health plans cover emergency services within the United States, with the exception of Hawaii. However, be aware that some plans are limited to specific health ‘networks’ and you will pay additional fees and charges for hospitals outside of your network.
When traveling abroad, usually emergency medical services are covered, but you may have to pay out-of-pocket and submit paperwork for reimbursement. To be sure you are covered, it is best to contact your insurance provider before you travel abroad. They might suggest you purchase travel insurance to ensure you are covered in the event of an emergency.
Finding the right coverage can be tough, but with these 5 questions, you can find coverage that fits your needs, no matter your stage in life.
