Q: Why Do I Need Health Insurance?
A: Today health care costs are high, and getting even higher. You buy health insurance for the same reason you buy other kinds of insurance, to protect yourself financially. With health insurance, you protect yourself and your family in case you need medical care that could be very expensive. You can't predict what your medical bills will be. In a good year, your costs may be low. But if you become ill, your bills could be very high. If you have insurance, many of your costs are covered by a third-party payer, not by you. A third-party payer can be an insurance company or, in some cases, it can be your employer.

Q: Where Do People Get Health Insurance Coverage?
A: Most people get health insurance through their employers or are covered because a family member has insurance at work. This is called group insurance. Group insurance is generally the least expensive kind. In many cases, the employer pays part or all of the cost. If your employer does not offer health insurance, you might be able to get group insurance through membership in a labor union, professional association, club, or other organization. Many organizations offer health insurance plans to members. Individual Insurance If your employer does not offer group insurance, or if the insurance offered is very limited, you can buy an individual policy. You can get fee-for-service, HMO, or PPO protection. But you should compare your options and shop carefully because coverage and costs vary from company to company. Individual plans may not offer benefits as broad as those in group plans. If you get a noncancellable policy (also called a guaranteed renewable policy), then you will receive individual insurance under that policy as long as you keep paying the monthly premium. The insurance company can raise the cost, but cannot cancel your coverage.

Q: What is the best health plan for me?
A: There is no standard answer to this question. There are some plans that will be better than others for you and your family's health needs. Plans differ in how much you have to pay and how easy it is to get the services you need. Although no plan will pay for all the costs associated with your medical care, some plans will cover more than others. With any health plan you will pay a basic premium, usually monthly, to buy the health insurance coverage. Also in most cases you will need to pay amounts called deductibles and/or co-payments. You have to choose the best affordable plan for your specific needs and the best thing to do so is to shop around and research your options.

Q: What do terms PPO and HMO mean?
A: PPO is the abbreviation for Preferred Provider Organization. As a member of a PPO, you can use the doctors and hospitals within the PPO network or go outside of the network for care. You do not need a referral to see a specialist. If you obtain care from a medical provider outside of the PPO network, you will pay more for the service. HMO is the abbreviation for a Health Maintenance Organization. As a member of an HMO, you select a primary care physician from a list of doctors in that HMO's network. Your primary care physician will be the first medical provider you call or see for a medical condition. He or she will make any needed referrals to a medical specialist. Typically, these specialists will be part of the HMO network. If you obtain care without your primary care physician's referral or obtain care from a non-network member, you may be responsible for paying the entire bill.

Q: What is a provider?
A: A provider is a hospital, health care facility, physician or other medical professional that provides health care services.

Q: What is a Primary Care Physician (PCP)?
A: It is a physician or other medical professional who serves as a group member's first contact with a plan's health care system (also known as a primary care provider, personal care physician, or personal care provider):

Q What is a co-payment?
A:Co-payment is a fixed dollar amount or a percentage that you pay for each doctor visit. For example, with some plans you may pay a fixed amount such as $10 or $20 per visit. Other plans will charge you a percentage of the total fee for the visit.

Q: What is a deductible?
A:It is a flat amount a group member must pay before the insurer will make any benefit payments.

Auto Insurance

Q: What should I consider when buying auto insurance?
A: Things you should consider when purchasing automobile insurance include: 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 in Part D, 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.

Q: How can I lower my auto insurance rates?
A: The easiest way is to shop around. It’s not surprising to find quotes on auto insurance that can vary by hundreds of dollars for the same coverage on the same car. When you shop, be careful to make sure each insurer is offering the same coverage. Many insurers use the ISO policy forms, which make comparing easy, but this is not always the case. Another way to lower costs is to look for discounts that may apply to you. For example, many insurers will offer a discount if you insure multiple cars under the same policy, or if you have had a driver education class in the last 5 years. Be sure to ask your agent or company about their discount plans. Another easy way to save is to increase your deductible. Simply bumping a deductible from $250 to $500 can lower your premium - sometimes by as much as 5 or 10 percent. However, make sure you have the financial resources necessary to handle the larger out-of-pocket costs in the event of an accident.

Q: What kind of information do I need to buy auto insurance?
A: When you apply for an insurance policy, you will be asked a number of questions. For example, the agent might ask you your name, age, gender, address, etc. In addition, you will be asked a number of other questions which will be used to determine how likely you are to make a claim.

When an insurance company is deciding whether or not to offer automobile insurance to a potential customer, it will want to know about the person's previous driving record, whether they have any recent accidents or tickets, and what type of car is to be insured.
Insurance companies have different programs for different customers. Adults with good driving records will generally pay less for auto insurance than will a young driver with traffic tickets. In order to determine which program you qualify for, an insurance company needs basic information about you.

In addition to your age, gender and driving experience, information about the vehicle you drive, and how you drive it, is also needed to determine a fair price. For example, a large luxury car costs more to repair or replace than a sub-compact; and, someone who commutes 30 miles each way is more likely to be in an accident than someone who rides the bus to work and drives only on weekends.

Q: If a friend borrows my car and gets into an accident, will my insurance cover it?
A: 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.

Q: What does my auto insurance policy cover when I rent a car?
A: There is no standard answer to this question. The best thing to do is to call your insurance company or broker to check your rent a car coverage.

Q: What should I do in case of an accident?
A: Your responsibilities after you have an accident are proscribed both by state law and by your insurance contract. First, make sure that everyone is all right and call an ambulance if needed. Second, for most accidents the police should be notified. Exchange with the other driver your names, addresses, telephone numbers, and the names of your insurance companies and/or your insurance brokers. Fourth, as soon as possible, contact either your insurance agent or your insurance company to notify them that you have been in an accident. Fifth, you have to satisfy the other conditions of your insurance contract in order to get payments from your insurance company. Check your policy contract carefully as soon as possible for all those conditions.

Q: How can I insure my motorcycle?
A: You can add a miscellaneous-type vehicle endorsement to your existing auto insurance policy. This endorsement will also cover mopeds, motor homes, dune buggies and other motorized vehicles. Also you can buy motorcycle insurance as a separate policy.

Q: What factors affect the cost of my auto insurance?
A: The type of car you drive, what you use it for, your driving record, where you live and even your marital status can all affect how much your policy will cost. It’s all based on numbers; for example, statistics show that married people have fewer and less costly accidents than single people.

Q: Do I need auto insurance for my older vehicle?
A: Most states have insurance laws that require drivers to have at least some automobile liability insurance. These laws were enacted to ensure that victims of automobile accidents receive compensation when their losses are caused by the actions of another individual who was negligent.

It is often the case that the cost of repairing the damages to an older car is greater than its value. In these cases, your insurer will usually just "total" the car and give you a check for the car's market value less the deductible. Many people with older cars decide not to purchase any physical damage coverage.

Q: What factors can affect the cost of my automobile insurance?
A: A number of factors can affect the cost of your automobile insurance -- some of which you can control and some that are beyond your control.

The type of car you drive, the purpose the car serves, your driving record, and where the car is garaged can all affect how much your automobile insurance will cost you.
Even your marital status can affect your cost of insurance. Statistics show that married people tend to have fewer and less costly accidents than do single people.

Homeowners and renters insurance

Q: What are some practical things I can do to lower the cost of my homeowners insurance?
A: There are a number of things you can do to lower the cost of your homeowners insurance. The easiest thing to do is get a comprehensive review of your policy and needs from your local agent.

One way to lower the cost of your homeowners insurance is to look for any discounts that you may qualify for. For example, many insurers will offer a discount when you place both your automobile and homeowners insurance with them. Other times, insurers offer discounts if there are deadbolt exterior locks on all your doors, or if your home has a security system. Be sure to ask us about any discounts for which you may qualify.
Another easy way to lower the cost of your homeowners insurance is to raise your deductible. Increasing your deductible from $250 to $500 will lower your premium, sometimes by as much as five or ten percent.

Q: What does homeowners insurance cover?
A: The typical homeowners policy has two main sections: Section I covers the property of the insured and Section II provides personal liability coverage for the insured. Almost anyone who owns or leases property has a need for this type of insurance. Usually, homeowners insurance is required by the lender to obtain a mortgage.

Q: What factors should I consider when purchasing homeowners insurance?
A: There are a number of factors you should consider when purchasing any product or service, and insurance is no different.

Here is a checklist of things you should consider when you purchase homeowners insurance.
1. Determine the amount and type of insurance that you need. The coverage limit of your house should equal 100% of its replacement cost. If your policy limit is less than 80% of the replacement cost of your home, any payment from your insurance company will be less than the full cost to replace your home -- you'll have to pay the rest out of your own pocket. Also, decide if the personal property and personal liability limits are adequate for your needs.
2. Determine which, if any, additional endorsements you want to add to your policy. For example, do you want the personal property replacement cost endorsement, an earthquake endorsement or a jewelry endorsement?
3. Once you have decided on the coverage you want in your homeowners insurance policy, consult us. We will be able to help you determine if there are any gaps in coverage you might not have been aware of, explain the details of the policy's exclusions and limitations as well as recommend an insurance company that will live up to your expectations.

Q: What are the policy limits (i.e., coverage limits) in the standard homeowners policy?
A: [Note: this answer is based on the Insurance Services Office's HO-3 policy.]
The dwelling and other structures on the premises are protected on an "all risks" basis up to the policy limits. "All risks" means that unless the policy specifically excludes the manner in which your home is damaged or destroyed, there is coverage. The policy limit for the dwelling is set by the policyowner at the time the insurance is purchased. The policy limit for the other structure is usually equal to 10% of the policy limit for the dwelling.
Losses to your personal property are covered on a "named perils" basis. "Named perils" means that you have coverage only when your property is damaged or destroyed in the manner specifically described in the policy. The policy limit on the coverage is equal to 50% of the policy limit on the dwelling. Limits for the coverage for the additional expenses that the policyowner may incur when the residence cannot be used because of an insured loss is equal to 20% of the policy limit on the dwelling.
The coverage limit on personal liability is determined by the policyowner at the time the policy is issued. The coverage limit on medical payments to others is usually set at $1000 per injured person.

Q: Where and when is my personal property covered?
A: Personal property (except property that is specifically excluded) is covered anywhere in the world. For example, suppose that while traveling, you purchased a dresser and you want to ship it home. Your homeowners policy would provide coverage for the named perils while the dresser is in transit -- even though the dresser has never been in your home before.

Q: Do I need earthquake coverage? How can I get it?
A: The standard insurance policy does not pay for direct damages caused by "earth movement." "Earth movement" is a much broader term than earthquake. It includes earthquake, volcanic activity and other earth movement. This coverage may be available by endorsement for an additional charge. If you live in an area that is more likely to have an earthquake, you'll pay more than if you live in an area that is unlikely to have an earthquake.. We can help you weigh the costs and benefits of this coverage before you decide to purchase.
Renters FAQs

Q: Why would I want to buy renters insurance?
A: If you live in an apartment or a rented house, renters insurance provides important coverage for both you and your possessions. A standard renters policy protects your personal property in many cases of theft or damage and may pay for temporary living expenses if your rental is damaged. It can also shield you from personal liability. Anyone who leases a house or apartment should consider this type of coverage.

Q: Why do some apartment complexes require tenants to have renters insurance?
A: Owners of apartment complexes buy insurance policies for their liability and to cover their buildings and personal property. However, these policies do not cover any of the tenant's property or liability. By requiring their tenants to have renters insurance, the apartment owner is assured that the tenants will not mistakenly believe the apartment complex owner's policy will provide coverage for a tenant's property or personal liability. Although this type of requirement benefits that apartment complex owner, there are benefits to the renter as well. We recommend that you purchase renters insurance regardless of what your landlord requires.

Q: What if I share my apartment with a roommate? Do we both need to have renters insurance?
A: Standard renter's policies cover only you and relatives that live with you. If your roommate is not a relative, each of you will need your own renter's policy to cover your own property and to provide you liability coverage for your own actions.

Umbrella FAQs

Q: What is a personal umbrella liability policy?
A: The personal umbrella liability policy is designed to increase your liability protection. This single policy acts as an "umbrella" over all of your other personal liability policies -- home, auto, boat, RV, etc. -- so you have a higher personal liability limit than what would otherwise be available. In certain circumstances, an umbrella policy may provide personal liability coverage that is otherwise excluded from your other policies. For example, an umbrella policy provides coverage anywhere in the world, whereas your auto policy usually provides coverage in the US and Canada only.

Q: How do I know if I need a personal umbrella liability policy?
A: It used to be that the only people who needed personal umbrella liability policies were wealthy individuals who had sizable amounts of personal assets that would be at risk in a lawsuit.
However, in our very litigious society, even individuals with modest incomes and assets are often subjects of large lawsuits. Since they are even less able than a wealthy individual to pay large damage awards, they recognize the need to have coverage limits greater than what can be obtained from their homeowner or auto policies.