Home Insurance
What does homeowners insurance typically cover?
It covers damage to your home, personal belongings, and liability protection.
What are the three main types of auto insurance coverage?
Liability, collision, and comprehensive coverage.
What does landlord insurance typically cover?
The building structure, liability protection, and loss of rental income.
What’s one simple way to lower your home insurance premium?
Increase your deductible or bundle with auto insurance.
What’s the most common home insurance claim?
Water damage.
What is an HO-3 policy?
It’s the most common homeowners insurance policy, covering the home, belongings, and liability, with some exclusions.
What does liability insurance cover in an auto policy?
It pays for injuries and property damage you cause to others.
What additional coverage should a landlord consider for protection against unpaid rent?
Rent loss or fair rental value coverage.
Why should you review your insurance policies annually?
To ensure you have adequate coverage and to check for discounts.
In which state is car insurance the most expensive?
Michigan.
What type of disasters are typically NOT covered by standard home insurance?
Floods, earthquakes, and sinkholes.
What does uninsured/underinsured motorist coverage protect you from?
It covers your expenses if you’re hit by a driver without insurance or with too little insurance.
What type of liability protection should landlords carry in addition to standard landlord insurance?
Umbrella insurance, which provides extra liability coverage beyond the limits of a standard landlord policy.
What’s the advantage of having an umbrella insurance policy?
It provides extra liability coverage beyond your home and auto policies.
What is "hole-in-one" insurance, and why is it needed?
Golf tournaments buy this coverage to pay for prizes (like a car or cash) if someone makes a hole-in-one during the event.
How does subrogation work in homeowners insurance claims?
After paying a claim, the insurer may recover the amount from a responsible third party, such as a contractor or negligent party, to recoup their losses.
What is an SR-22, and when is it required?
An SR-22 is a state-required certificate proving that a high-risk driver carries the minimum required auto insurance, often after DUI offenses or license suspensions.
Why is it important for a landlord to require tenants to have renters insurance?
It protects the tenant’s belongings and reduces liability risks for the landlord.
What should you do before making a major insurance claim to maximize your payout?
Document the damage with photos, review your policy for coverage limits, and get estimates from multiple contractors before filing the claim.
What’s the biggest insurance fraud scheme ever uncovered?
The 1990s "Vanishing Premium" scam, costing billions.
If your home is unoccupied for more than 60 days, what type of insurance might you need?
A vacant home insurance policy.
What does "full coverage" mean in auto insurance?
It’s a combination of liability, collision, and comprehensive coverage, but it doesn’t cover every possible situation.
What is Ordinance or Law coverage in a landlord policy?
It covers additional costs to rebuild up to current building codes after a covered loss.
Why should you avoid filing small insurance claims?
Frequent claims can lead to higher premiums or policy cancellation, making it more cost-effective to pay minor repairs out of pocket.
What’s the most unusual thing ever insured?
A food critic’s taste buds!