FREQUENTLY ASKED QUESTIONS
For your convenience, our most common customer questions are answered here. If you do not find the answers you are looking for, please reach out directly and we will be happy to assist you.
HOMEOWNERS INSURANCE FAQ'S
1. Insurance companies must include “catastrophic ground cover collapse” which means: The abrupt collapse of the ground cover;
2. A depression in the ground cover clearly visible to the naked eye;
3. Structural damage to the building, including the foundation; and
4. The insured structure being condemned and ordered to be vacated by the governmental agency authorized by law to issue such an order for that structure.
HOMEOWNERS INSURANCE POLICY TYPE FAQ'S
AUTO INSURANCE FAQ'S
These cover your legal liability, up to the limit you select, for damages caused in a covered vehicle accident. Under BI/PD, we pay for damages to an injured person and for property damage that you are legally obligated to pay as a result of an accident. If we cover an accident for which you are sued, we pay for a lawyer to defend you. You choose your BI/PD Limits of Liability as either Split Limits or a Combined Single Limit (CSL).
Split Limits divide bodily injury liability limits per person and per accident. We pay up to the limit you select per person, but we only pay up to the total limit you select per accident. For property damage liability, we pay up to the limit you select per accident. CSL combines your liability coverage into one total limit per accident.
COMMERCIAL INSURANCE FAQ'S
A BOP typically covers three major items:
In addition to the BOP, you may need other types of small business insurance coverage based on the kind of work you do, the size of your company and your location. These could include:
As your business expands, you may outgrow the standard Business Owners Policy and require more protection. It's a good idea to review your insurance coverage annually and determine if any additional policies would offer a more beneficial level of risk protection.
Many commercial property policies contain a coinsurance clause. This clause imposes a penalty when a policyholder suffers a partial loss and has failed to purchase an adequate limit of insurance.
Coinsurance clauses encourage businesses to buy adequate insurance. Most property insurance claims involve partial losses. If coinsurance clauses did not exist, many policyholders would try to save money on premiums by insuring their property for only a portion of its value. These policyholders would have insufficient insurance to cover large losses.
A primary function of commercial property insurance is to protect businesses against catastrophic losses, such as the total destruction of a company-owned building. For many businesses, the loss of a building would be devastating. If the building isn't insured for its full value, the business might lack enough funds to reconstruct the building. This could impact the company's ability to survive.
Co-insurance clauses encourage policyholders to insure their property at or near its full value. When most policyholders buy full limits of insurance, insurers collect more premium dollars and can charge lower rates overall. This helps ensure property ratesare equitable.
Co-insurance works by imposing a penalty on policyholders that fail to purchase enough insurance to satisfy the coinsurance percentage shown in the declarations. The penalty applies to partial losses only. It is not relevant to total losses.
The coinsurance clause will have no effect until you suffer a property loss. When the loss occurs, the insurer will compare the limit of insurance on your policy to the amount of insurance you are required to purchase based on the coinsurance percentage. If the ratio is less than 1, you will be subject to a penalty.
In a commercial property policy, the coinsurance clause is typically found in the policy Conditions section. The fact that your policy contains such a clause does not mean that your policy is subject to coinsurance. Coinsurance applies only if a coinsurance percentage is shown in the policy declarations.
Ordinance or Law Coverage
Ordinance or Law coverage is available by an endorsement. It covers losses caused by building code enforcement if the building has suffered damage by a covered cause of loss, such as a fire.
Ordinance or Law insurance consists of the three coverages described below. You may purchase any or all of them.