How well do you know insurance? Test your insurance IQ
Posted by Greg Freund, FCLS
Farmers Insurance Agent
3100 S Durango Dr Ste 104
Las Vegas, NV 89117
Office: (702) 944-0000
FAX: (702) 446-6700
See if you can answer these questions about homeowners insurance:
- Is my diamond engagement ring covered by my homeowners policy?
- If we have an earthquake and my house is damaged, is it covered by my homeowners policy?
- If my neighbor slips on my sidewalk, is injured and takes me to court, will my homeowners policy cover me?
- I don’t live near water, so I don’t need flood insurance, right?
Here are the answers:
- If you have homeowners insurance the answer is probably yes, to some extent. Typically, there’s limited, standard coverage available for your jewelry under your homeowners policy. If you have jewelry, furs or fine arts that exceed the limits in your policy, however, you may want to consider purchasing a Personal Articles Floater which provides additional coverage. As they say, diamonds are a girl’s best friend. What if something happens to yours? Learn more about Floater coverage — it could help you replace your “best friend” if the unexpected occurs.
- No. Homeowner, condo and rental insurance policies typically don’t cover damage caused by an earthquake, but coverage generally can be purchased as an endorsement or a separate policy. Premiums will vary depending upon where you live. Earthquakes have occurred in most states and many of us live in areas considered seismically active, yet only a small percentage of people purchase earthquake insurance.1 Learn about the importance of this coverage — call me to find out what the costs would be for your home. An earthquake could rock your physical world; don’t let it rock you financially too.
- Yes, up to the stated limit in your policy. If the accident is the result of your negligence and you are held legally liable, your homeowners insurance will pay for damages. It will also pay for the legal costs of defending you against a claim. The medical payments part of your homeowners policy will cover medical expenses arising from an injury to a neighbor or guest.
Important note: Although your homeowners, auto and watercraft policies may provide substantial liability coverage limits, many accident victims sue, and juries often award sums that exceed those limits. Then what? If you’re faced with claims beyond your auto or homeowner policies’ limits, a Farmers Personal Liability Umbrella policy may provide additional coverage. Learn more about umbrella insurance and how it can help you protect your assets and future earnings. Let’s talk about this important coverage.
- This is incorrect. You don’t have to live near water to experience flooding. Floods can be caused by storms, melting snow, hurricanes, and water backup due to inadequate or overloaded drainage systems. Only a few inches of water and your home could need major repairs, yet most homeowners policies don’t cover flooding. Anywhere it rains, it can flood.
Knowledge is power. Learn more about your coverage options. Plan better. Call me.