FAQs

1. General

   • What is the difference between comprehensive and collision?

   Comprehensive physical damage coverage pays for damage to your car from theft, vandalism, flood, fire, or other covered perils. Collision coverage pays for damage to your car when it hits or is hit by another object.

   • What is the difference between Third Party cover and Full Comprehensive?

   Third party car insurance is mandatory. However, there is substantial scope for reduction of costs or the premium payable in case this type of insurance policy is chosen. It must be remembered that, should your car be comprehensively insured, there is no need for a separate third party insurance policy. Comprehensive car insurance includes third party liability also. Third party insurance only would be the preferred option for older models of cars.

   • What is actual cash value?

   Actual cash value usually means amount needed at the time of the loss to repair or replace the property destroyed, less depreciation. Most standard home insurance policies cover the contents of your home (i.e. personal belongings) on an actual cash value basis, but it is possible to purchase replacement cost coverage.

   • What is an Excess? How and when is it applied?

   Excess is a term used in insurance, meaning the initial portion of any insurance claim which the policy doesn't cover.
   
   Many policies allow you to set your own excess figure - the higher you set it, the lower your premiums will be. The excess figure is especially important in car insurance - if the claim amount is less than the excess or only slightly more, many people don't bother to make a claim in order to protect their no claims discount.

   • What is deprecation? When is it applied?

   It is a bookkeeping entry representing the decline in value of an asset that is wearing out. As property ages and becomes worn it often loses value. That loss of value must be taken into account in any adjustment of property insurance that covers loss of actual cash value. Deprecation does not represent a cash outlay.

   • How can I determine whether a company is reputable or not?

   As with choosing a health or life insurance policy, it is important to investigate the company offering coverage. Companies should be financially strong with adequate reserves to pay claims.

   • Can an insurance company refuse to insure me? On what grounds? What are my rights if any?

   Usually, insurers that refuse to cover a claim have a strong legal reason for doing so—even if you disagree. If it is a legal problem, you may have to hire a lawyer.

   • What deductible should I choose?

   The deductible applies only to the coverages on your house and personal property. It is the amount you have to pay out of your pocket on each claim. You can collect on your insurance policy once the deductible amount is exceeded.

   • Why is it mandatory to have insurance?

   It can take years and a great deal of hard work and money to acquire your family’s personal possessions. Where would the money come from to replace your car if it were destroyed? What would you do if a court ordered you to pay thousands of dollars because of damage to someone else’s car or injury caused by you. Insurance protects you against financial loss when these kinds of personal disasters happen. And they happen to people just like you every day.

   • What is personal liability insurance coverage?

   Personal liability coverage protects you and all family members who live with you against a claim or lawsuit resulting from (non-auto and non-business) bodily injury or property damage to others and for which you become legally obligated to pay. Defense costs are included, but the insurance company has no duty to defend you after the limit of liability on the policy has been exhausted.

   • What is replacement cost?

   Replacement cost is the amount necessary to replace or rebuild your home or repair damages with materials of similar kind and quality without deducting for depreciation.

   • What is an Act of God?

   Acts of God are natural disasters which are not covered by your insurance policy, such as earthquakes, unusual tropical storms, lightning strike etc. The key feature of an Act of God is that it cannot be reasonably foreseen, so flood damage to a property on a flood plain should be covered, while it probably won't be if the area has no history of flooding and no history of heavy rainfall.
   
   If you make a claim and your insurer decides that the damage was caused by an Act of God, you have the option of going to court to settle the dispute.

   • Can I use my private vehicle in the conduct of my business? Would any special conditions apply?

   Generally, a personal auto policy may be all you need unless you are driving other people around frequently. In some cases, an independent contractor such as a carpenter or landscaper may need a commercial policy -- if the vehicle is used more than 50 percent of the time for business purposes. And personal auto policies must have increased limits to cover any equipment that is permanently attached to the vehicle.

   • What's a peril?

   A peril is a condition that can cause a loss. Three examples are fire, windstorm, and theft.

   • What is salvage, and who owns the salvage in the event of a total loss settlement?

   When an insurer makes a payment for lost or damaged property, the insurer is entitled Damaged property an insurer takes over to reduce its loss after paying a claim. Insurers receive salvage rights over property on which they have paid claims, such as badly-damaged cars. Insurers that paid claims on cargoes lost at sea now have the right to recover sunken treasures. Salvage charges are the costs associated with recovering that property. to the salvage of that property

   • What should I consider when buying auto insurance?

   Decide how much liability coverage you want to carry. This is highly subjective. The liability levels you have on your other policies can serve as a guideline. Consult a financial professional if you need more advice.
   
   Determine which optional coverage you will need to feel protected. For example, do you want the optional physical damage coverage, or is the market value of your car too low to warrant purchasing them?
   
   Once you have decided what you want, you can now choose from which type of company you want to buy a policy. Decide whether you want an insurance agent to assist you in your decisions or if you wish to buy the insurance directly from a company that sells insurance over the phone or through the mail.

2. Hurricanes & Floods

   • Are floods, earthquakes and other catastrophes covered by my Home Owners Policy?

   Most catastrophes are covered; for example, wind damage from hurricanes and tornadoes come under the windstorm peril. Flood and earthquake damage, however, are not covered by a standard policy. 
   
   Be careful not to be lulled into a false sense of geographic security. Flood and earthquake activity is more widespread than many people realize. If your home is located in a flood-prone area, you are 26 times more likely to suffer a flood loss than a loss from fire. 
   
   You may want to check with your Insurance agent about special catastrophic policies for normally excluded conditions like floods and earthquakes. Of course, the cost of such extra coverage may reflect the high risk involved.

   • What exactly does flood insurance cover?

   Flood coverage is available for home, condo and business owners, as well as for renters. It covers structural elements, walls, floors, equipment and fixtures and can be purchased for contents.

   • Why should I get flood insurance?

   Did you know that, depending on where you live, your house could be four times more likely to be damaged by a flood than a fire? Floods are the leading cause of natural disasters and weather-related fatalities. If you follow the news at all, you know that floods happen year round and virtually everywhere. Buying more insurance is as exciting as paying more taxes. And just as complicated. But it doesn't have to be, especially if you live in a low- to moderate-risk area.

3. Fire

   • How often should a fire extinguisher be serviced?

   Fire extinguishers should be serviced once a year.

   • My son came home from school today and said that we should be sleeping with our doors shut because it could give us and extra fifteen minutes to escape if there is a fire. Is this true?

   Sleeping with your door shut can give you up to an extra fifteen minutes to escape a house fire. Having the door closed, helps keep the smoke out of the bedroom and acts as a short term barrier to the fire. In a fire situation, if you cannot get out the door, go to the window and yell to attract attention. Putting sheets, towels, clothing, etc. blocking the opening between the door and the floor will also help.

   • Where should fire extinguishers be placed in my home?

   Having a fire extinguisher in the home is a good idea. If you have an extinguisher, it should be placed where it is easily accessible. The kitchen and garage are good sites for an extinguisher. However, do not place an extinguisher over the stove or buried in storage in the garage, but rather hang it on the wall between 4 inches and five feet from the ground.

   • Can I cook with a Barbeque Grill on my apartment's balcony?

   Every year, residential complexes suffer severe damage or loss from fires that begin with an open-flame cooking device being operated on a balcony. The operation of a charcoal burner, or any other open-flame cooking device, is prohibited on combustible decks and balconies. In addition, these devices shall not be used anywhere within 10 feet of combustible construction, which could include a nearby wall, overhang, patio fence, railing, or the deck above your own deck or patio. 
   
   In addition, any cooking device using propane fuel may be subject to the same rules, depending on the size of its fuel container. A nominal one-pound gas-capacity fuel container may be used without restriction. Any device using a fuel container larger than one-pound is prohibited in the same manner as an open-flame device.
   
   Electric grills are acceptable; however, we would caution that you use a properly grounded electrical outlet with a GFI circuit, and refrain from using an extension cord, especially through the door to the deck.

   • Where should smoke detectors be placed in my home?

   Residential smoke detectors are early warning devices to wake a sleeping person or persons. Smoke detectors should be placed in each bedroom (sleeping area) and in the hallway leading to the bedrooms. Don't place them near air vents.

4. Property Insurance

   • I don't own a house, but I rent an apartment instead, what type of policy would give me the protection that I need?

   If you rent a house or apartment, the building owner is responsible for any perils that befall the property. It is the responsibility of the building owner to have insurance on the structure that would protect and compensate him if something were to happen to the structure. However, his policy does not protect you for your personal belongings. In order to receive the necessary protection for your possessions - electronics, furniture, clothing, etc. - you would need to purchase a renters insurance policy, which is a type of policy for the non-homeowner. A renters insurance policy has many of the same provisions that a homeowners policy has with the exception of coverage for the structure. It protects your personal property and it protects you against claims of liability if you cause injury to someone or an individual's property.

   • I have replacement coverage for contents under my home insurance policy. Some of my property has been stolen. Can the company settle for an amount less than replacement?

   The company will usually pay the actual cash value, which is the replacement cost minus depreciation, for the loss or damage - until the property is replaced. Once the insured replaces the damaged property and provides receipts to the company, the company should reimburse the difference.

   • Does my home insurance policy cover flood damage?

   Generally, home insurance policies do not offer protection against flood losses.

   • What kind of damage does a basic property policy cover and what is not covered?

   Most basic policies protect against damage from:
   
   -Fire and lightning 
   -Explosion 
   -Aircraft
   -Vehicles
   -Smoke
   -Vandalism and malicious mischief
   -Theft
   -Damage by glass or glazing material that is part of the building
   -Volcanic eruption
   
   You can also increase the coverage to include:
   
   -Falling objects 
   -Three kinds of water-related damage from home utilities or appliances
   -Electrical surge damage
   
   Coverage that is not afforded for in a standard home/property insuramce policy can vary from company to company. However, unless you purchase additional coverage, damage caused by floods, earthquakes, nuclear accidents, wars, intentional damage, and normal wear and tear is not covered. There are other exclusions that may also apply.

   • What affects home/property insurance prices?

   • Type of Construction: Frame houses usually cost more to insure than brick.
   
   • Age of House: New homes may qualify for discounts. Some insurance companies offer limited coverage or may not insure older homes.
   
   • Local Fire Protection: The number of fire hydrants and fire departments and the availability of water are some factors that determine your area's fire protection class. If you reside in an area without fire protection, you will pay more for fire insurance.

   • What protection does the personal liability coverage in my property's insurance policy provide?

   This coverage protects you and all family members living with you against claims or lawsuits resulting from bodily injury or property damage to others for which you are negligent and legally liable, with exceptions such as intentional acts.

   • I had a loss, and my roof needs repair. The company is only willing to pay for repairing part of the roof even though the contractor has said that I need to replace the entire roof.

   If the shingles that are currently on your roof are no longer manufactured, the company is responsible for replacing your entire roof. But if your shingles are manufactured and do not match the existing shingles due to weathering, the company is only responsible for replacing the damaged shingles, not the whole roof.

   • What does property damage cover?

   Property damage coverage helps repair your home and personal property when damaged by such perils as fire, lightning or windstorm. The perils of flood and earthquake are covered when the coverage is added to your policy.

   • Why buy home insurance?

   • Owners: To protect both your house and personal property.
   • Tenants: To protect your personal property.
   • Everyone: Protection against liability for accidents that injure other people or damage their property.

   • What is the difference between "Name Peril Insurance" and "All-Risk Insurance"?

   Property insurance policies can be divided into two categories: "Named-Peril Insurance" and "All-Risk Insurance." Named-peril policies pay only for the causes of loss specified in the policy. All-risk insurance covers losses except those specifically excluded in the policy.

   • What does additional living expense or loss of use cover?

   Most home insurance policies cover extra costs you incur if your home is damaged by an insured peril and you cannot live there while repairs are made or if you are denied access to your home by government order. The coverage is generally subject to duration limits and commonly covers any expense incurred by you so that your household can maintain its normal standard of living. In some instances, this coverage may include the costs of a motel, eating in a restaurant or storing some property.

   • What does personal property insurance coverage include?

   In general, the contents of your home and other personal belongings owned by you or family members who live with you are covered under the policy equal to 50 percent of the value carried on your dwelling. However, high-valued personal property such as jewelry and cameras should be listed on the policy so that you are adequately protected.

5. Motor Insurance

   • If I modify my vehicle by changing its colour or engine capacity, am I required to inform my insurance company, the licensing authority, etc? If I relocate, am I required to inform my insurance company? If I add expensive accessories to my vehicle, like mag rims, musical equipment, flare kits, etc. Am I required to inform my insurers?

   You must tell us as soon as possible if any of the following occur:
   
   • you change the address at which you normally keep your car
   • you make changes to your car which improves its value, performance or attractiveness to thieves
   • you change your car
   • you want to use your car for a purpose not included in your schedule
   • you become aware of any medical or physical condition of any driver named on the policy which may affect their ability to drive
   • you or any other driver named on the policy are convicted of a motoring offence other than fixed-penalty parking offences
   • you or any other driver named on the policy change your occupation
   • you change your annual mileage
   
   Full disclosure of all details of the risk are needed in order for your insurance to be effective. If you do not tell us about any relevant changes, we may reject or reduce any claim or treat you as being uninsured.

   • Should I have my vehicle valued before it is insured? Would I be entitled to the full sum insured in the event of a total loss?

   If the cost of repairing the vehicle, plus its salvage value, equals or exceeds its actual cash value, it is not economically feasible to repair. This situation is commonly referred to as a "total loss."

   • Can I ensure more than one vehicle under the same policy?

   If you have more than one car, you may be wondering if you have to take out a policy for each car. The answer is no, as long as all of your cars are insured with the same company. In fact, once you simply name each vehicle on the same policy, they're all covered. What's more, there are benefits to insuring all your cars with one company: namely, you may get a discount on your premium.

   • What should I do if my car is stolen?

   If your car is stolen, contact the police immediately, then report the incident to us at any of our offices or using our online claim form. Our claims representative will contact you to advise you on what steps to take. There is usually a waiting period of days before a theft claim is paid in case the vehicle is recovered. You can obtain a courtesy car if your coverage includes it.

   • What are my obligations if I take out a loan on my vehicle?

   Your loan or leasing agreement provides details on the kinds of auto insurance coverage finance institutions require. Though each leasing agent or lender has different requirements, most lenders and leasing agents require you to buy comprehensive and collision coverage when you purchase your auto insurance policy.

   • If I loan my car to a friend and he gets involved in an accident, am I covered? What about damage to any third party?

   Whenever you knowingly loan your car to a friend or an associate, he or she will be covered under your policy. In fact, even if you don't give explicit permission each time a person borrows your car, someone is still covered under your policy as long he or she had a reasonable belief that you would have given permission to borrow the car.

   • Can I determine to which garage my vehicle goes for repair? Can I refuse to send my vehicle to the insurance company's authorized repairer?

   No. Insurers can't force you to go to a particular repair facility. However, if you choose to use a body shop not recommended or approved by your insurer, you may have additional out-of-pocket expenses.

   • What are my duties and responsibilities in an accident? What are my obligations in case of an accident?

   Hopefully, you’ll never be involved in an accident, but if you are, keep these general guidelines in mind.
   At the scene…
   
   1. Get medical help if anyone is injured.
   2. Phone the police so that they can help with the situation.
   3. Allow medical professionals and/or the police to control the accident scene.
   4. Discuss the accident only with the police.
   5. Do not admit fault to anyone.
   6. Gather information. Get the names, addresses, phone numbers, and auto insurance information of all parties involved. Be sure to get contact information from witnesses as well.
   7. If you have a camera with you, take photos to document vehicle damage, the intersection where the accident occurred, skid marks, and any other features of the accident scene.
   8. As soon as possible, contact either your insurance agent or your insurance company to notify them that you have been in an accident.
   9. Above all, try to remain calm.
   10. Write down what you think happened for your own records.
   
   Always remember that, if another party to the accident or another auto insurance company contacts you, do not discuss the accident with them and do not agree to make a recorded statement. Simply refer any questions about the accident to your claims representative.

   • What is a Proposal Form, and why must I fill one out when insuring my vehicle?

   It’s a document completed by a prospective insured, giving details required by insurers to enable them to decide whether to accept the risk and on what premium terms and conditions. Once agreed by both parties, it forms the basis of the insurance contract.

   • Am I required to keep my insurance in force if my vehicle is laid up for an extended period or if I am out of the country, etc?

   If the vehicle is going to remain parked for an extended period (usually three months or more), you can cancel JUST the liability and collision portions of your auto insurance, and leave the vehicle with just comprehensive coverage (fire and theft, basically). You will save money, and you will maintain continuous auto coverage, which is an important factor in getting cheaper coverage further "down the road," so to speak. However, if you want to drive the vehicle again, you must add at least basic liability insurance back to your policy.

   • If my car is flooded in a rainstorm, am I covered?

   You may be surprised to know that floods are a common natural disaster in many parts of the world. Depending on where you live; floods or even just large amounts of rainfall could personally affect you and your vehicle. Unfortunately, in substantial flooding, you may have to abandon your car to floodwaters. In less severe flood situations, your car may be damaged. In either case, if you have auto insurance you can file a claim with your auto insurance company.
   
   To report your auto insurance claim and start the process of getting back on the road, be sure to call your auto insurance company before you go ahead with the repair or replacement of your car. Typically, flood-related damage is covered by comprehensive coverage in your auto insurance policy.