What does liability cover?
Your personal/ family liability covers you worldwide.  Most people think liability protects you only when accidents causing injury happen at your home to people who live away from your home. The example commonly given is the “slip and fall accident.”  Liability coverage is much broader; it covers you for accidents which may happen anywhere in the world where someone may claim you have caused them bodily injury or damage to their property.

Here are a couple of examples:

Say, your next vacation is a golfing trip to North Carolina.  While golfing, you hit a ball which accidentally hits someone in the head.  You didn’t mean for it to happen – it was an accident, but you are being held responsible.  Your homeowner’s liability coverage can respond to pay for medical treatment for the injured person.

Say, you decide to go camping in Oregon.  It’s a chilly night and you start a campfire.  The wind picks up and your cozy fire accidentally lights the neighboring camper’s tent on fire.  Again, you would never have intended harm to another’s property, but you are being asked to pay for a new tent by your neighbor.  Your homeowner’s liability coverage can respond to pay for the damage to the person’s property.
Does my home insurance include protection for Flood loss?
NO. Flood is a separate policy in every state of the country. Flood coverage is offered only through a federal program called the National Flood Insurance Program but is written by licensed insurance agents. We at Pinnacle Insurance Consultants always recommend that residents of Florida give careful consideration to purchasing a Flood policy – even if your home is said to be outside a high-risk flood zone. We ALL live in a flood zone – some just lower risk areas.
What should I consider when buying a homeowner’s policy?
You should consider your personal, individual risk. Tools you can use to determine your risk are things such as:
  • A home inventory of all your personal property, whether it be recorded on paper, video or photos. 
  • The cost of rebuilding your home.  Your agent can do a cost valuation, with information from you about your home, such as custom features, square footage and construction materials. 
  • Determine how much high you can afford to go on your homeowner’s deductible.  The higher your deductible, the lower your premium will be.  When you save money by raising your deductible, consider putting the savings aside to accumulate and eventually pay for the higher deductible.   If you don’t have a loss, then the savings remain in your pocket to accumulate more savings.
What does my credit score have to do with my insurance?
Insurance companies have used a person’s credit score for several years now, as one indicator of financial responsibility. A direct correlation has been made between a higher credit score, and fewer losses, so some insurance carriers give credits for keeping your score high.
Can I loan my car to another person if he or she is in a jam?
Yes, you can. Just be careful to loan your car to someone you think is responsible. Your insurance will most likely pay for damages if your friend gets into an accident and is considered to be at fault. This could include damage for bodily injury which may have occurred in the accident.
 
 
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