What is the difference between comprehensive and collision coverage?
Collision covers your insured vehicle for physical damage that your car sustains when it hits, or is hit by, another vehicle, or another object. Collision also covers the upset of your vehicle, such as the unintentional rolling or flipping of your vehicle. Comprehensive coverage covers your insured vehicle for physical damage losses resulting from incidents other than collision; fire, theft, vandalism, glass, flood, hail and animals to name a few.
What is the difference between Actual Cash Value and Replacement Cost Coverage?
Actual Cash Value coverage means that in the event of a claim, you would be paid depreciated value for any damages to your property. Replacement Cost Coverage means that the company would pay to repair or replace the damages up to the limit of insurance on the policy.
Does my homeowner policy cover flood?
No. Homeowner policies in New York State do not provide coverage for flood, defined as surface water, waves, tidal water, overflow of a body of water or spray from any of these, whether or not driven by wind. If you would like coverage for any of these items, a separate flood insurance policy would need to be purchased.
When do I need worker's compensation and disability insurance?
In New York State, any time you have employees on payroll it is required that you purchase both worker's compensation and New York State statutory disability benefits coverages.
Why do I need medical payments coverage?
Medical payments normally cover you, your passengers and other authorized drivers of your vehicle who are injured while in your insured vehicle. Medical payments provides coverage for reasonable medical expenses, such as hospital, dental, nursing and X-ray bills incurred within a specified period of time after your accident. Personal Injury Protection (PIP) coverage also provides similar coverage. PIP does not provide coverage in the event that the driver is charged with an alcohol or drug related offense, however medical payments does not have this restriction and the coverage would still apply. Medical Payments coverage is also important on your motorcycle and recreational vehicle policies, as PIP does not provide coverage for the driver or passengers on the bike or ATV. Only medical payments would provide coverage for the driver and passenger under these policies.
What is personal umbrella coverage?
Personal umbrella liability insurance is an additional policy that will supplement your basic liability policies, such as your auto, motorcycle, recreational vehicles, home, condo or renters policies. An umbrella policy provides additional coverage or “excess liability” above the limits of your basic policies and can protect you from bodily injury liability claims and property damage liability claims. Umbrella policies typically come in increments of $1,000,000 and only pay out once your basic liability limits have been exhausted or if the claim is excluded from the basic liability coverage. The main purpose of your umbrella policy is to protect your assets from an unforeseen event, such as a tragic accident in which you are held responsible for damages or bodily injuries. If another party files a lawsuit against you, your umbrella coverage will pay for the damages you're legally responsible for up to the policy limit. It is important to know that if you are sued and you do not have enough liability insurance or an umbrella policy to cover those costs, all of your assets including your car, house, investments and retirement accounts, as well as your normal checking and savings accounts and even future income are exposed.