Great Insurance Questions

Recently I had a client ask some really great questions, and I would like to share that information with you.  It can be very helpful if you may be too shy to ask a question yourself, or you would like ot learn more about insurance yourself.  My Responses are in RED

1)       Can you tell us exactly what IS covered and what IS NOT covered?  (wind/hail/tornado/storm damage, sewer backup, water seepage, earthquake, fire, flooding, robbery, etc.)

Good Question- With Cincinnati all of the above is covered. it is subject to the deductible, which in this case is $1000.  There are only a few carriers in the market that offer the seepage coverage, and Cincinnati is one of them. This would be in addition/ separate than the water /sewer backup coverage as well. – very nice coverage to have. Cincinnati is open perils for your home and personal property. In a nutshell what that means, is it is covered unless it is specifically excluded in the policy- Very comprehensive and coveted coverage!

2)       Is $1,000 of coverage for “medical payments to others” enough/typical?

$1000 is pretty typical, but it can be easily endorsed for a higher limit. at $5000 of coverage for medical payments and $500000 of liability, the annual premium would change to $x.xx . As you can see this is very reasonable for the amount of coverage that you receive in return.  The $500,000 and $5000 are typically the limits that I recommend.

3)       Is the deductible always $1,000, or is there an option for a lower deductible?

With some carriersthere are other deductible options. Cincinnati is currently one of the carriers that is not typically allowing deductibles less than $1000 in MN. A little background on that.  Since the mid 2000’s MN has been hit severely hard with claims and home insurance losses. One way that they have tried to combat that (industry wide) is to require different, higher deductibles. Some carriers require a $2500 wind and hail deductible while others require a 1 or even 2%!! I am comfortable with $1000 and I dont typically recommend higher deductibles unless they are specifically requested.

5)       How did you arrive at the house value of $210,000?

Based on the square footage, style of home ,finish of home, year built, etc. the carrier calculate a “replacement value” that they feel the home should be covered for.  In the event of a total loss and construction costs are substantially higher than expected to rebuild your home, you have coverage built in for an additional 25% enhanced replacement cost as well. Every carrier has a slightly different calculation on “replacement cost” but most are pretty similar. 

6)       How is our personal property valued?  Is it covered if it is stolen, destroyed in a fire, etc.?

Your personal property is also covered on replacement cost. In the event of a loss, it is the insured’s responsibility to be able to show the carrier they owned the property (pictures, receipts,  appraisals). This is not going to be necessary for every item you own, but it is good practice to know the info on your higher value items.  some clients take a camera and snap a few photos of each room, some use video and some use a personal property inventory system that we have a available. I also have cleints who either put the files or pictures in a safe or safety deposit box, or you are also welcome to send them to me and i can store them on my management system. very convenient in the event of a claim!

7)       How long does Cincinnati take to respond to claims?

The good thing about Cincinnati is that the adjuster is local and they are very fast. My clients have had great response time and satisfaction with both auto and homeowners claims with Cincinnati.

8)       Cincinnati lists “actual loss” as the value for “loss of use” coverage, whereas Integrity lists $42,000.  What does “actual loss” mean?

Rather than limit you to a certain dollar amount in the event you are displaced from your house  because of a claim , Cincinnati will pay the actual amount for you to rent another apartment, hotel, food, etc. 

9)       Cincinnati lists “Limited Water Damage $5,000” – what does that mean?

That is the limit of thewater sewer back up coverage.  We can add more coverage if you are interested ($10000, $25000, $50000, $100000)