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Tools/Tips

Auto, Home & Renters

  • Q: Can I make my payment in the office?
    A: Most insurance carriers prefer that payments be made directly to them via mail, phone, or on-line. However, we are able to facilitate payment processing here at our office if need be.
  • Q: Where do I report my claim?
    A: All our carriers have 24/7 claims reporting availability. Please click on our links section to find your insurance carrier’s claims information. If your carrier is not listed or if you prefer to speak to someone in our office please contact us any time during business hours.
  • Q: Do I get a discount for paying in full?
    A: Most carriers do not give a discount for paying the premium in full. However you can save on any billing and installment fees by paying in full.
  • Q: I have “full coverage”, that must mean I have towing and car rental?
    A: Actually “full coverage” typically refers to having comprehensive & collision coverage. While it is typical that a “full coverage” policy would include towing & car rental, it is not automatic and must be added to the policy.
  • Q: My taxes and insurance are included in my house payment. If I switch insurance, will it cause any problems with my lender?
    A: Not at all. When switching over your property insurance that is impounded, we make all the necessary arrangements with your lender to make it a seamless transition.
  • Q: I have a wood shake roof, can I still get insurance?
    A: Yes, many carriers still offer insurance for homes that have wood shake roofs.
  • Q: I don’t really own anything, so why do I need renter’s insurance?
    A: While a renter’s policy does cover your personal property it does much more. It provides you with liability and medical payments coverage in the event someone was to get hurt on your property or you were sued due to damages you may have caused to the property.
  • Q: Why is my home insured for more than it is currently worth?
    A: Your home’s insured value is determined based on the cost to rebuild and not the current market value. Many factors such as material costs, labor costs, equipment, demolition costs, debris removal, and new building codes are used to determine the replacement value on your home. External values, such as value of land are not part of the equation.
  • Q: Do I need additional insurance for custom/aftermarket equipment on my vehicle?
    A: Yes, most insurance carriers do not provide or provide very little coverage for custom/aftermarket equipment like radios, video players, and rims. This additional coverage can be added for a very minimal cost.
  • Q: How long does a violation/accident affect my driving record?
    A: Most “Minor” violations are considered 1 point and can affect your auto insurance for 3 years. “Major” violations such as reckless driving or DUI can affect your insurance for over 7 years.

RV, Watercraft & Motorcycle

  • Q: Is my boat covered while it is being towed behind my vehicle?
    A: Liability coverage is extended from your auto policy and only applies to damages that your boat may cause. However damage to your boat is not covered under the auto policy.
  • Q: Are my ATVs covered under my homeowner’s policy?
    A: No, a homeowner’s policy does not provide coverage for motorized vehicles such as ATVs.
  • Q: Should I just place my recreation vehicle or watercraft insurance with my auto/ homeowner’s carrier?
    A: While many auto/homeowner’s companies also insure recreation vehicles and watercraft, they typically don’t provide the specialized coverage, such as towing/roadside assistance, on water towing, and special equipment, that most owners would want in the event of a claim.
  • Q: Do I need to add custom equipment coverage to my motorcycle?
    A: Most specialty motorcycle carriers offer up to $3000 in custom equipment automatically. However, most motorcycle enthusiasts have more than $3000 in custom equipment. It’s a coverage that can easily be increased for a minimal cost.
  • Q: If I get a ticket on my motorcycle could it affect my auto insurance?
    A: Yes, it would be considered a point on your DMV record and therefore could affect your auto insurance rates.
  • Q: Does a DUI/DWI while operating my watercraft affect my auto insurance?
    A: A DUI/DWI is reported to the DMV just as if it had happened while driving a motor vehicle. The resulting license suspension or violation on your DMV record could also affect your auto insurance.

Business & Commercial

  • Q: Must I carry workers’ compensation if I only have one employee?
    A: Yes, California law requires every employer to carry workers’ compensation regardless of the amount of employees.
  • Q: I only have immediate family members working at my business. Do I need to provide workers’ compensation?
    A: Yes, California law requires workers’ compensation for all employees, regardless of their relationship to the owner.
  • Q: What is co-insurance?
    A: Co-insurance is an agreement where you agree to share (co-insure) some risk with the insurance company. It is a way of making sure that you are maintaining the proper insurance amount and therefore keeping your end of the agreement. If you don’t insure to the correct amount then you face a co-insurance penalty and therefore could receive a lower claim payment amount in the event of a loss.
  • Q: I have general liability coverage which says it covers bodily injury and property damage. Why doesn’t it cover my own property?
    A: Because general liability coverage is designed to cover bodily injury and property damage “to others” for which you are legally liable, subject to exclusions. It excludes Bodily Injury to you and & Property Damage to your property.
  • Q: I lease my building from a landlord and carry general liability coverage for my operations. If I accidently burn down the building, will my general liability policy cover it under property damage coverage since property damage coverage covers damage to property of others?
    A: No, because there is an exclusion in your general liability policy which excludes damage to property you “own, rent or occupy”. In order to protect the building you are leasing under your general liability coverage, you need to look to the “Fire Legal Liability”. Most policies today call it “damage to property you rent” or “Property Damage Legal”. This is shown as a separate limit on your general liability policy and can usually be increased if needed.
  • Q: Can I make payment on the amount I owe due to an audit?
    A: Unfortunately no. Audit amounts are due in full because it is premium that is owed for coverage that has already been provided on an expired policy.

Life, Health & Financial

  • Q: How much life insurance do I need?
    A: Begin by thinking about what kind of lifestyle you want your family to have if you pass away. Then add up all your debts and assume you need enough insurance to cover that amount. That’s the first part of your insurance needs. If you also want to provide future income for your family, you will need additional coverage to provide an investment portfolio large enough to provide the desired annual income. The amount of insurance you buy will be the sum of these two numbers.
  • Q: What type of life insurance should I buy?
    A: For most people, term life insurance is the best option. Cash value life insurance (such as whole or universal life) is not a bad idea, and for some folks, it absolutely makes sense. But for most people, term insurance is usually the best option. Also, many insurance companies are now offering non-cash value type policies with lifetime premium guarantees instead of just the normal 10 and 20 year term policies.
  • Q: Should everyone have a will?
    A: In one word – yes! In fact, a will is only the first part of a comprehensive estate plan. You should also consider having a Living Trust, Durable Power of Attorney for Finances and a Durable Power of Attorney for Health Care created. This is especially true for anyone with children. At Lewis & Associates we recommend that you find a qualified Attorney to provide this type of legal advice.
  • Q: What are health insurance copayments, deductibles and coinsurance?
    A: A copayment is a specific dollar amount that you may have to pay for an office visit or a prescription drug. A deductible is a dollar amount that you may be required to pay out-of-pocket each year before the health insurance company pays medical bills for some covered services. Coinsurance usually describes the percentage of a total bill that you may have to pay for certain services.
  • Q: What is an HSA?
    A: HSA stands for Health Savings Account. HSAs are special savings and investment accounts designed to be used only in conjunction with qualifying high-deductible health insurance plans. Because qualifying health plans often have higher annual deductibles, they typically come with lower monthly premiums, which can make them attractive to many consumers. If you have an HSA-eligible health insurance plan, you may also open an HSA and make deposits to it on a tax-advantaged basis up to an annual limit.
  • Q: After we get married, Should we buy term policies or permanent policies?
    A: The decision to purchase a permanent life insurance policy or a term policy is a challenging one. If you’re looking for a cheap, short or mid-term policy to help pay debts if you should pass away while you are still paying off your mortgage, then term policies might be the right answer for you. If you’re concerned about long-term planning, have a comfortable budget, want to be able to tap into your plan’s cash value at retirement and are concerned about someday becoming uninsurable due to illness, then a permanent policy might be a better choice. If you aren’t sure, you can even buy some death benefit in a permanent policy and some in a term. When designing your life insurance plan, don’t be afraid to ask your life insurance agent to help you find the perfect solution for you.
  • Q: What is a “needs analysis”? Do I need one to determine how much life insurance I should have?
    A: A “needs analysis” (sometimes called “programming your life insurance”) is a systematic procedure that looks at your overall life insurance and other assets (investments, social security, pension, etc.) as a portfolio and relates those assets to needs that would have to be covered. Some versions of “needs analysis” would also include a review of other types of insurance (car, homeowners, etc.) you have or might need.
  • Q: As a single parent, Money is tight. What if I can't afford the amount of life insurance I need?
    A: When you are choosing between satisfying the immediate needs of you and your child versus the possible future needs—the choice is clear. Rent or mortgage, bills, groceries and health insurance premiums are probably higher on the priority list than a life insurance policy. But life insurance policies do pay important benefits that your child will likely need if you die an untimely death, so it is still important to attempt to get one. If your budget makes the purchase of a life insurance policy impossible, then you might see if your employer offers an inexpensive group policy that fits into your budget. You could also look into an inexpensive term life insurance policy to provide a benefit during the years your child would need it.
  • Q: Do I need life insurance?
    A: If you can afford it, there are several reasons why you may need life insurance. The most important reason is to have enough money to provide for dependents such as young children, non-working spouses or elderly parents, should you die and be no longer able to provide for them. Also, your survivors may need funds to pay for extra expenses that may arise due to your death, such as funeral expenses, or other expenses to pay off bills and debts. If you have no dependents or have adequate financial resources, you may not have an actual need to purchase life insurance. However, some people who do not “need” life insurance still purchase it anyway. This can be a means to leave money to your beneficiaries. Another category of people who might want life insurance are business owners or people with substantial estates. Since these people have needs that require more planning, they should usually consult with professionals or specialists in insurance-related law, accounting or estate planning because legal business agreements or trust documents may need to be drawn-up. If you are someone in this last category, you should contact the appropriate professionals if you need their advice.
  • Q: What is the importance of age/sex/health when applying for life insurance?
    A: Increasing age increases the cost of life insurance because the older you get, the greater your chances of dying. Being male typically costs more because females live longer on average. Poor health raises the rates for life insurance because it decreases the number of years you are likely to pay premiums and reduces the time before the company may have to pay a claim. Health is often the most important factor, followed by age and sex. Someone in poor health will have to pay a very high premium, or even be uninsurable.
  • Q: How might my smoking affect my ability to buy life insurance?
    A: If you are a smoker, you should expect to pay quite a bit more for your life insurance than a non-smoker of a similar age and health. Of course, if you also have a smoking-related medical condition, then the life insurance company would take that into consideration when deciding whether to sell you a life insurance policy and what rate you should be charged.
  • Q: What if I miss a premium payment-- do I lose my insurance?
    A: You have a grace period on life insurance policies to pay your premium. The grace period is typically 30 days. After that, the company may or may not allow you to pay back premiums and reinstate the policy. Sometimes this may depend on whether you can provide evidence of good health. But if you are beyond the due date and grace period, you are at the insurance company’s mercy – each company exercises its discretion a bit differently. Of course if you die and the premium has not been paid, and there is no residual value to pay premiums in the policy, the beneficiary would not collect.
  • Q: I want to cancel a life insurance policy and purchase a new one. Is anything wrong with that?
    A: It may be a good move to cancel a term policy purchased several years ago if you can get one that better meets your needs and costs less. Term rates are very competitive and you may be able to get more for less today, even allowing for your greater age. However, be careful to get the new policy issued before canceling the existing policy. Changes in your health status or stricter underwriting for your new policy could prevent you from getting the new one, or make it more expensive than you planned. If you are considering replacing a cash value policy, you need to consider the new and old policies in more detail. Insurance agents are required to confirm that such a replacement is to your advantage.

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