Personal Insurance
PERSONAL AUTOMOBILE
& MOTORCYCLE INSURANCE
What is auto
insurance?
Auto insurance
protects you against
financial loss if you
have an accident. It is
a contract between you
and the insurance
company. You agree to
pay the premium and the
insurance company agrees
to pay your losses as
defined in your policy.
Auto insurance provides
liability, property and
medical coverage:
- Liability
coverage pays for
your legal
responsibility to
others for bodily
injury or property
damage. (If you're
at fault in an
accident that's
covered by your
policy, and other
people (or property)
are injured or
damaged, liability
coverage helps
protect you from the
cost of these
damages.)
- Property
coverage pays for
damage you cause to
another vehicle or
property of others
- Medical coverage
pays for the cost of
treating injuries,
rehabilitation and
sometimes lost wages
and funeral
expenses.
- Physical Damage
pays damage to your
car when you are not
driving it or theft
of your car.
An auto insurance
policy is comprised
of six different
kinds of coverage.
The State of
California requires
you to carry
Liability Coverage
only. If you're
financing a car,
your lender will
require you to carry
Liability and
Physical Damage
coverage.
Automobile Insurance
protects you against
financial hardship
in the event of a
loss.
Should you be in
an accident caused
by YOU….it can be
very expensive to
fix or replace your
vehicle. The damage
caused to others
such as injury to
another person may
cost you much more
than you could ever
imagine especially
if you are sued and
your net worth does
not cover the
awarded damages.
Motorcycle
Insurance
Many factors can
play a role in
determining what
your insurance costs
will be such as your
age, your driving
record, where you
live and the type of
motorcycle you own,
or being a graduate
of a rider-training
course.
- Many
companies offer
discounts from
10 to 15 percent
on motorcycle
insurance for
graduates of
training
courses, such as
the Motorcycle
Safety
Foundation (MSF)
rider course.
Riders under the
age of 25,
usually
considered a
higher risk, may
see some savings
by taking this
course. It's
also a good idea
for cyclists who
have already had
accidents.
- Maintaining
a good driving
record with no
violations will
also help reduce
your premiums.
- In many
northern states,
riders may save
money by buying
a "lay-up"
policy. With a
lay-up policy,
all coverage
except
comprehensive is
suspended during
winter months.
- Find out
what discounts
your insurance
representative
offers.
Discounts can
range anywhere
from 10 percent
to 20 percent,
depending on the
company and your
state.
- Keep in mind
that the type,
style (such as a
sports bike vs.
a cruiser) and
age of the
motorcycle, as
well as the
number of miles
you drive a year
and where you
store your bike
may also affect
how much you pay
for your
premium.
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HOMEOWNERS
INSURANCE
What is
Homeowners
insurance?
Homeowners
insurance is the
type of Property
Insurance that
covers private
homes against
damage to your
property and
personal
possessions; it
also
incorporates
liability
insurance for
accidents that
may happen at
the home. This
may include
damage caused by
a household pet.
Some carriers
have a list of
animals that
would be
excluded from
coverage under
their policy.
Most policies
are lengthy
contracts that
outline what
will and will
not be covered
in the case of
various events.
Typically,
claims caused by
FLOOD or
EARTHQUAKE are
excluded perils
with the policy.
Also excluded is
poor
maintenance.
FLOOD and/or
EARTHQUAKE
coverage may be
purchased under
separate
policies.
Maintenance-related
issues lye
within the
homeowner’s
responsibility.
Be sure to ready
your policy so
you are aware of
what’s covered
and what’s
excluded.
Homeowner
Insurance is
required by your
lender. Not only
does it protect
their financial
interest it
protects one of
the most
expensive
investments
you’ll ever
make. Needs
arise when there
is a fire,
burglary,
vandalism, a
visitor is
injured in your
home (slip and
fall for
example); you’ll
need money to
repair, replace,
reimburse and/or
pay medical
bills.
Homeowners
insurance can
provide that
peace of mind
for you.
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RENTERS
INSURANCE
If you cause
damage to the
property you
own, the
property you are
renting,
community
property or
injury to other
residents, you
are responsible,
not the
landlord.
Renters
Insurance can
protect you
against the
financial losses
that occur from
unexpected
accidents.
Renters
insurance will
help you replace
your possessions
that are damaged
or stolen in the
event of a
covered loss.
Coverage
specifically
excluded by
Renters
Insurance
includes FLOOD,
EARTHQUAKE and
normal wear &
tear. Flood and
Earthquake can
be purchased
separately.
If you suffer
a loss that
causes you to be
forced out of
your home,
Renters
Insurance pays
the additional
costs of
temporarily
living
elsewhere.
Coverage
includes hotel
bills, temporary
rentals, meals
and other living
expenses while
repairs are
being made to
your unit. Your
policy has a
specific limit
for this
coverage. If
you have any
special valued
items and/or
collectibles,
these can be
scheduled
separately on
the same policy.
You BEST
protection
against a loss
would be to take
photographs
and/or a video
of everything in
your unit,
including the
inside of each
cupboard and
closet. Then
keep a copy of
these in a safe
place away from
the premises.
The landlord
will only insure
the building. It
is up to you to
protect your
personal items.
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RECREATIONAL
VEHICLE
INSURANCE
Recreational
Vehicles include
Motor Homes, Van
Campers,
Conversion
Vehicles,
Towables (ie:
Fifth Wheel
Trailers,
Folding Camping
Trailers, Truck
Campers)
Recreational
Vehicles should
be insured under
a recreational
vehicle
insurance
package.
Homeowner and
Auto Policies
provide limited
coverage, if any
for recreational
vehicles.
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WATERCRAFT &
BOAT INSURANCE
Boat
Insurance can
include
specialized
coverage, such
as Roadside
Assistance,
On-Water Towing,
Total Loss
Replacement,
Liability
(damage or
injury to
others) and
more. Have
“peace of mind”
that you are
insured when out
on the water,
knowing that the
safety of your
investment and
loved ones are
protected.
Watercraft
Coverage
includes: Bodily
Injury, Property
Damage, Guest
Passenger
Liability,
Medical Payments
and Theft. Many
policies include
a Property
Damage
deductible of
$250 and $500
for Theft.
Trailers and
other
accessories can
be added to the
policy for an
additional
charge.
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EARTHQUAKE
INSURANCE
Earthquakes
send a tremor of
fear through
most of us and
they are
impossible to
predict. An
Earthquake can
cause major
coverage to your
home and
personal
property. ALL
Homeowner
policies EXCLUDE
this coverage.
There are two
forms of
coverage
available today.
A Stand Alone
policy and a
policy that acts
like a Homeowner
Policy.
A stand
alone policy
provides
specific
coverage for
your structure,
$5,000 coverage
for your
personal
contents and
$1500 to live
elsewhere while
repairs are
being made.
A package
policy
provides
coverage for the
structure, your
personal
contents,
appurtenant
structure and
money to live
elsewhere in the
event you must
vacate your home
for repairs.
These limits are
specifically set
based on the
insured value of
your structure.
Deductibles
work as follows:
10% or 15% are
the two
deductibles that
apply to every
policy. The
deductible is
based on the
INSURED VALUE
of the dwelling
NOT on
the amount of
damage you
suffered from
the Earthquake.
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FLOOD
INSURANCE
Whether you
are in a
national flood
zone or not,
floodwaters have
proven to not
only damage your
home but your
financial
wellbeing as
well.
Generally
your mortgage
company mandates
if Flood
Insurance is
required to
satisfy your
home loan. If so
you will be
provided with
the necessary
information to
obtain this
coverage.
Your property
may not be in a
“Flood Zone” and
you could suffer
a “flood” loss.
Any water that
seeps into your
house through
the foundation
is considered a
“flood loss”. In
this case,
disaster
assistance is
not offered. So
you’ll have to
take care of the
tremendous
expense to
repair the
damage yourself.
Keep in mind
that in order
for you to
receive Federal
Disaster Relief
Funds, the
president must
formally declare
a disaster.
When you
purchase Flood
Coverage, there
is a “wait
period” of 30
days before
coverage starts
unless you are
closing escrow
then coverage
would take
effect
immediately.
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