Frequently ASKED QUESTIONS
We understand that everyone has questions. For your convenience here are answers to our frequently asked questions. Not seeing what you are looking for? Give us a call at (989) 781-2662 and talk to one of our specialized agents.
LONG TERM CARE
Accident With a Borrowed Car
Whose policy pays?
If you lend your car to a friend and your friend has an accident, it might be your insurance that's on the hook. It all depends on the insurance company that issued your policy. One company's policy may state:"the insurance follows the car"; while another company's policy says the driver's insurance is the primary coverage even though you own the vehicle involved.
Let's take a look at the two different scenarios:
All these rules go out the window in many cases if the person borrowing the car happens to be a relative who resides in the same household as the owner. You should read your policy carefully to see what type of coverage applies to you.
Remember these two things:
Rental Cars: Should you Purchase Rental Agency Coverage?
If you have collision and comprehensive ("other than collision") coverages on your own car, you are most likely covered if you're traveling in the United States, its territories and possessions or Canada (for example, travel in Mexico, the Bahamas or Europe would not be covered). Most policies (except business policies) cover any rental car that you drive at no additional premium. Business cars frequently require an extra premium to afford the same coverage. Give us a call before you leave for your "fun in the sun and/or snow" to confirm your coverage.
What To Do After an Accident
You've been in an accident. Here are some general guidelines about what to do next:
Lease Loan Gap Coverage
If you are thinking about leasing or buying a car, you might consider adding Lease Loan Gap (LLG) Coverage to your auto policy. Lease/Loan Gap (LLG) Coverage is an extension of your auto’s physical damage coverage.
Ordinarily, your comprehensive and collision coverages provide you with up to the actual cash value (the vehicle's cost minus depreciation) in the event of a total loss. When you sign a lease or loan agreement, you may be obligating yourself for an amount higher than the vehicle's actual cash value.
At a cost of approximately 5% of your current comprehensive and collision premiums, LLG Coverage protects you from out-of-pocket expense when such a "gap" occurs. Although there are some limitations, LLG Coverage will pay up to your lease or loan amount if your car is stolen or if the cost of repairs is greater than its salvage value. Contact our office and we'd be happy to discuss this coverage further.
Note: Some car manufacturers may provide gap coverage as part of the lease agreement – check your particular contract for details.
Tornado Damage: Are you Covered?
Does windstorm include tornado?
Since the policy specifically refers to windstorm as a covered cause of loss, some residents have wondered what exactly windstorm includes. Tornadoes, hurricanes, high winds, thunderstorms and blizzards are all included in the definition of windstorm. Your homeowners policy also provides 'loss of use' benefits to cover additional living expenses while repairs are being made to your home.
Please call us with any specific questions regarding your property coverage. We are always happy to review your current coverage needs.
Volunteer Activities: Are you Covered?
You are a volunteer soccer coach, a 4-H advisor, a chamber of commerce committee member, on the church board, or you helped raise contributions for the last United Way campaign. Perhaps you have volunteered hundreds of hours this year without a thought of insurance coverage. If someone is injured, who pays for any legal action brought against you in these volunteer activities? If you serve as a board member and are sued for breach of duty, imprudent investments, discrimination in hiring or wrongful termination, are you covered? To answer these questions, there are two places to check: your home insurance and the organization's insurance. Let's look at them:
Your homeowners insurance policy gives you liability protection for bodily injury and property damage to others in non-business activities, like a child who is injured when you are the volunteer soccer coach or 4-H advisor. On the other hand, no protection is provided if your volunteer activity is related to a business (chamber volunteer, union, trade or professional association representative, etc.) or if you receive any compensation. Any legal action other than bodily injury and property damage is not covered (an exception: some homeowners policies cover personal injury – libel, slander, false arrest, false imprisonment, etc.).
Also check for coverage under the organization's policy. Ask the organization leadership for proof of insurance for general liability, directors and officers liability, and employment practices liability. Check to see if volunteers are covered (named as additional insureds) under those policies. Some other potential loss situations could include:
Communities are fortunate to have so many volunteers donating their time in a host of different areas. This discussion is not meant to discourage any present or prospective volunteers. Rather, our intent is to help individuals be well-informed, comfortable and adequately protected when it comes to volunteering.
Earthquake, Flood and Sewer Back-up
Flood insurance as well as the sewer back-up and earthquake endorsements are worth a brief examination.
Flood - Since flood damage is excluded under your homeowners coverage, you should be aware that flood insurance is available from the National Flood Insurance Program. Structural and contents protection are offered.
Sewer Back-Up - This endorsement provides protection for direct loss caused by water that backs up through sewers, drains or sump pump wells. Just as flood insurance excludes coverage for sewer back-up, this endorsement excludes any coverage for damage due to flooding. Coverage is subject to a deductible.
Earthquake - Coverage is available with the premium determined by the structure of your home or building. Because it will better withstand an earthquake, a frame structure is less to insure than a masonry one. A substantial deductible (often a percentage of the amount of insurance that applies to the destroyed or damaged property) is in effect.
For clarification of your current policy or information regarding the above coverages, please contact us. We welcome the opportunity to evaluate your present needs and to discuss possible insurance improvements for you and your family.
Money Saving Tips
Controlling household expenses is something we all try to do. We want to help you reduce your home insurance costs when possible. Here are some points to consider:
Homeowners Insurance: Covering the Bizarre Losses
Just how broad is your insurance coverage? Will it cover sunken tractors? This true story has occurred several times: our client parks his riding mower on a hill, dismounts, and the tractor slips out of gear and rolls into the pond. Covered? Only if you have an HO15 endorsement on your policy.
You don't have a riding mower or a pond you say? The HO15 endorsement broadens a homeowners policy so that it also covers other personal property lost due to extraordinary situations. Consider these other covered losses:
Most home insurance policies list 17 or 18 different perils of coverage for household contents that do not include the above or numerous other bizarre possibilities. The H015 will cover most of these – subject to your policy deductible.
Fraudulent insurance claims cost us all money. To report insurance fraud, contact the National Insurance Crime Bureau. The caller’s identity if kept confidential and you can talk with a trained investigate or leave anonymous information. Be a fraud buster. We can all help fight insurance fraud. Visit https://www.nicb.org/ for more information.
Funds spent on fraud detection are a good investment. According to the National Insurance Crime Bureau,the property/casualty industry is recovering $3.50 for every $1.00 it invests in detecting fraud.
If you want to report insurance fraud, please call our office. You can also contact the National Insurance Crime Bureau at the number shown below. Be a fraud buster. We can all help fight insurance fraud.
NICB Fraud Hot-Line: 1-800-TEL NICB
Long Term Care Protection
With costs approaching and frequently exceeding $30,000 annually, this is an area of concern to all, especially those who have been successful in accumulating significant assets.
Extensive planning is often done to conserve these assets and protect them from high estate taxes. It is equally important to consider the effect a long-term stay in a nursing home can have on an estate. Death taxes and a long-term illness can exhaust accumulated assets. To avoid having to "spend down" assets before government programs (Medicaid) will pay for long-term care, a long-term plan may be purchased that will provide the dollars necessary for care. As with most types of health insurance plans, the premium increases as we age and the risk increases. The following chart shows representative annual premiums for $100/day, 60-day waiting period, 5% compound inflation benefit at various ages.
Issue age 50 - $ 552/year
Issue age 55 - $ 723/year
Issue age 60 - $ 993/year
Issue age 65 - $1437/year
Issue age 70 - $2097/year
Other optional benefits such as home health care are available for an additional premium. As in any estate planning situation, with long-term care the earlier one starts in planning the solution, the lower the cost.
Individuals who have been successful in accumulating an estate should be careful in planning for estate taxes and long term care costs. We would be happy to talk with you about the need, the benefits and the costs as they would apply to your situation. Please give us a call.
Why have it? What is it? Who needs it?
Skyrocketing court settlements and medical costs can cause uneasy feelings about the adequacy of insurance protection. Liability insurance pays for injuries to others due to negligent acts by you or another covered person on your policy. Although the liability insurance provided under a home or auto insurance policy is adequate for most situations, in a few instances large lawsuit settlements do approach or exceed the limits of these policies.
An umbrella liability policy is designed to give you peace of mind from this concern. It adds one million dollars (or multiples of $1 million) of protection to the liability limits of your home and auto insurance policy. * Should a judgment against you exceed the limits of that policy, the umbrella picks up the unpaid portion up to the umbrella policy limit.
Persons most likely to purchase an umbrella policy are:
Coverage cost varies, but it is generally $115 to $150 per year for a $1 million limit. If you would like more information on this topic, please call us. We will be happy to discuss it with you.
*The umbrella can also increase the liability limit for your boat, rental property, motor home, recreational vehicle, motorcycle, vacation home and others.
Duclos Insurance Agency, Inc
7531 Gratiot Road
Saginaw, MI 48609
Phone: (989) 781-2662
Toll free: (800) 448-5355
Fax: (989) 781-4824
An authorized independent Agent for Blue Cross Blue Shield of Michigan and Blue Care Network
Copyright © Duclos Insurance Agency, Inc., 2017