Home Sweet Home
What does homeowners insurance actually cover — the market value of your home or the cost to rebuild?
Cost to rebuild.
-Market value includes land; insurance covers structure.
What does liability insurance protect — your car or other people?
Other people.
-It covers damage or injuries you cause.
What does general liability insurance protect against?
Injuries or property damage your business causes others.
What’s your deductible?
The amount you pay out of pocket before insurance kicks in.
“Insurance is just about price.”
Myth. Value is in protection, not premiums.
True or False: Flood damage is covered by a standard homeowners policy.
False.
-Flood is excluded and requires separate coverage.
True or False: Full coverage means everything is covered.
False.
“Full coverage” is just slang — it still has limits and exclusions.
Why might a business owner need professional liability (E&O) insurance?
To cover mistakes or advice that cause financial loss.
How long can a claim impact your rates? I need a range....
3–5 years. Claims history affects future premiums.
“You only need insurance when you have assets.”
Myth. You also need it to protect your future income.
What’s usually not covered if a pipe leaks slowly over time — sudden burst or long-term leak?
Long-term leak.
-Insurance covers sudden, accidental damage, not wear and tear.
If your car is totaled, what determines how much you get paid?
Actual Cash Value (ACV)
— what it’s worth today, not what you paid.
If your business can’t operate after a fire, what coverage replaces lost income?
Business Interruption or Loss of Income Coverage.
What’s the best time to call your insurance agent — before or after you file a claim?
Before. A trusted agent helps assess if filing is wise.
-800 companies DON'T allow this option
In WA State, my credit no longer affects my insurance rates?
False. In most states, it influences risk-based pricing. Just like a bank loan/interest rate.
Your neighbor’s tree falls on your fence. Whose insurance pays?
Yours.
-Unless there’s negligence, your policy covers your property.
You lend your car to a friend and they crash it. Whose policy covers the accident, yours or theirs?
Yours
- insurance follows the car, not the driver.
A (GL) policy provides the business liability coverage. What’s the purpose of a business owner’s policy (BOP)?
BUNDLES general liability + property + business income for small businesses.
What can happen if you file small claims repeatedly within a 5 year period?
(2 or more)
You risk rate hikes or non-renewal. Insurance is for major losses.
“Renters don’t need insurance because the landlord’s policy covers them.”
Myth. Landlord policies covers structure, not your belongings or your liability.
What is Loss Assessment Coverage and why might condo owners need it?
It helps pay for the HOA’s master policy deductible or shared losses. Without it, owners can owe thousands.
What coverage helps if you’re hit by someone without insurance?
Uninsured/Underinsured Motorist Coverage (UM/UIM).
-It protects you.
Why should contractors carry higher coverage limits than the state minimum?
Because one lawsuit could exceed limits easily — putting personal assets at risk.
*do not hire if they have less than $1M liability coverage
You have a slow leak that you finally caught behind the drywall from the shower. It causes damage to the entire bathroom flooring and drywall on the lower level. Are you covered? Repair cost estimate = $17k
Only if you have a "hidden water" endorsement. Limited carriers have this, AmFam is one.
“My home insurance covers my small business equipment at home that is valued over $1,500.”
Myth. Most policies exclude business use without proper endorsements.