Agency by the Mall

*Insurance FAQ provided by Agency by the Mall*

Q. What kinds of questions should I expect to be asked when I’m applying for an insurance policy in Pennsylvania or Delaware? Why do insurers need so much information?

A. When you apply for an insurance policy at Agency by the Mall, you will be asked a number of questions. For example, one of our agents might ask your name, age, gender, address, etc. You will also be asked a series of more specific questions which will be used to determine how likely you are to make a claim.

When Agency by the Mall is looking for the best auto insurance for you, we need to know about your previous driving record, whether you have any recent accidents or tickets, and what type of car will need to be insured.

Agency by the Mall offers a variety of programs for different programs for different customers. Adults with good driving records will generally pay less for car insurance than young drivers with traffic tickets. In order to determine which program you qualify for, Agency by the Mall will need basic information about you. Age, gender, driving experience, and information about the car you drive is also needed to determine a fair price. For example, a large luxury car costs more to repair or replace than a compact car. Also, someone in Philadelphia or Wilmington who commutes 30 miles each way is more likely to be in an accident than someone who commutes via bus and only drives on weekends.

Q. What are the advantages to using an agent to purchase insurance?

A. By using an independent agent such as Agency by the Mall, the policyholder receives more personalized service. We find our customers the very best deals for them, all while they enjoy complimentary coffee or tea and candy.

Having direct contact with Agency by the Mall can be very important when purchasing insurance and absolutely necessary when filing a claim. Agency by the Mall delivers quality insurance to residents of Pennsylvania and Delaware with competitive pricing and local, customized service.

CAR INSURANCE FAQs IN PENNSYLVANIA

Q. I have an older car whose current market value is very low–do I really need to purchase car insurance?

A. Pennsylvania has an insurance law that requires drivers to have at least some car liability insurance. This law was enacted to ensure that victims of car accidents receive compensation when their losses are caused by the actions of a negligent individual.

Often times the cost of repairing the damages to an older car is greater than its value. In these cases, your insurer will usually “total” the car and give you a check for the car’s market value. Many people with older cars decide not to purchase any physical damage coverage.

Q. What is the difference between collision physical damage coverage and comprehensive physical damage coverage?

A. Collision is defined as the losses you incur when your car collides into another car or object. For example, if you hit a car in a parking lot, the damages to your car will be paid under your collision coverage.

Comprehensive provides coverage coverage for most other direct physical damage losses you might incur, including theft. For example, damage to your car from a hailstorm will be covered under your comprehensive coverage.

Q. What factors can affect the cost of my car insurance in Pennsylvania?

A. A number of factors can affect the cost of your car insurance in Pennsylvania–some of which you can control and some that are beyond your control. The type of car you drive, the purpose the car serves, your driving record, and where the car is garaged can all affect how much your car insurance will cost you in Pennsylvania. Even your marital status can affect your cost of insurance. Statistics show that married couples tend to have fewer and less costly accidents than those who are single.

HOMEOWNERS INSURANCE FAQs IN PENNSYLVANIA

Q. What are some practical things I can do to lower the cost of my home insurance? 

A. There are a number of things you can do to lower the cost of your homeowners insurance. The easiest thing to do is request a comprehensive review of your policy and your needs from Agency by the Mall.

It’s not surprising to find quotes on homeowners insurance that vary by hundreds of dollars for the same coverage on the same home. When you shop, be careful to make sre each insurer is offering the same coverage.

Another way to lower the cost of your home insurance is to look for any discounts that you may qualify for. For example, many insurers will offer a discount when you insure both your car and your home with them. Other times, insurers offer discounts if there are deadbolt exterior locks on all your doors, or if your home has a security system.  Be sure to ask our agents about any discounts that you may qualify for.

Another easy way to lower the cost of your homeowners insurance is to raise your deductible. Increasing your deductible from $250 to $500 will lower your premium by as much as five or ten percent.

Q. Why do I need homeowners insurance?

The typical homeowners policy has two main sections:

• Section I covers the property of the insured
• Section II provides personal liability coverage for the insured

Almost anyone who owns or leases property has a need for this type of insurance. Usually, lenders require homeowners insurance to obtain a mortgage.

Q. What is the difference between “actual cash value” and “replacement cost?”

Covered losses under a homeowners policy can be paid on either an actual cash value basis or a replacement cost basis. “Actual cash value”  entitles the policy owner to the depreciated value of the damaged property. Under the “replacement cost” coverage, the policy owner is reimbursed on an amount necessary to replace the property with one of similar type and quality at current prices.

Q. What factors should I consider when purchasing homeowners insurance?

A. There are a number of factors you should consider when purchasing homeowners insurance:

• Determine the amount and type of insurance you will need. The coverage limit of your house should equal 100% of its replacement cost. If your policy limit is less than 80% of the replacement cost of your home, any payment from your insurer will be less than the full cost to replace your home, and you’ll have to pay the rest out of your own pocket.
• Decide if the personal property and personal liability limits are adequate for your needs.
• Decide which, if any, additional endorsements you want to add to your policy. For example, do you want the personal property replacement cost endorsement, an earthquake endorsement or a jewelry endorsement?

Once you have decided on the coverage you want in your homeowners insurance policy, please consult us at Agency by the Mall. Our agents will be able to help you determine if there are any gaps in coverage that you might not have been aware of, explain the details of the policy’s exclusions and limitations, as well as recommend an insurance company that will meet your expectations and needs.

Q. What are the policy limits (coverage limits) in the standard homeowners policy?

A. According to the Insurance Services Office’s HO-3 policy, the home and other structures on the premises are protected on an “all risk basis” up to the policy limits. This means that unless the policy specifically excludes the manner in which your home is damaged or destroyed, there is coverage. The policy limit for the home is set by the policy owner at the time the insurance is purchased. The policy limit for any other structures on your property is usually equal to 20% of the policy limit on the home.

The coverage limit on personal liability is determined by the policy owner at the time that the policy is issued. The coverage limit on medical payments to others is usually set at $1000 per injured person.

Q. Where and when is my personal property covered?

A. Personal property (except property that is specifically excluded) is covered anywhere in the world. For example, suppose that while traveling, you purchase a dresser and you want to ship it home. Your homeowners policy would provide coverage for the “named perils” while the dresser is in transit–even though the dresser has never been in your home before.

Q. Do I need earthquake coverage in Pennsylvania? How can I get it?

A. The standard insurance policy does not pay for direct damages caused by “earth movement.” “Earth movement” is a much broader term than earthquake–it includes, volcanic activity, and other earth movement. This coverage may be available by endorsement for an additional charge. Since Pennsylvania is unlikely to have an earthquake, you’ll pay less for earthquake coverage than places which are susceptible to earthquakes, such as California.

RENTERS INSURANCE FAQs in PENNSYLVANIA

Q. Why would I want to buy renters insurance?

A. If you live in an apartment or a rented house, renters insurance provides important coverage for you and your possessions. A standard renters insurance policy protects your personal property in many cases of theft or damage, and may pay for temporary living expenses if your rental is damaged. It can also shield you from personal liability. Anyone who leases a house or apartment should consider this type of coverage.

Q. How does a renters insurance policy protect my personal property?

A. A renters insurance policy provides named perils coverage. This means that the policy only pays when your property is damaged or destroyed by any of the ways specifically described in the policy. These usually include:

• fire or lighting
• windstorm or hail
• explosions
• riots
• aircraft
• vehicles
• smoke
• vandalism or malicious mischief
• theft
• falling objects
• weight of ice, snow, or sleet
• accidental discharge or overflow of water or steam
• freezing
• sudden and accidental damage from artificially generated electrical current
• volcanic eruptions (not including earthquakes or tremors)

Renters insurance coverage applies to your personal property no matter where you are in the world. This means you’re covered when you are on vacation as well as at home.

Q.  Why do some apartment complexes require tenants to have renters insurance?

A. Owners of apartment complexes buy insurance policies for their liability in order to cover their buildings and personal property. However, these policies do not cover any of the tenant’s property or liability. By requiring their tenants to have renters insurance, the apartment owner is assured that the tenants will not mistakenly believe that the apartment complex owner’s policy will provide coverage for a tenant’s property or personal liability. Although this type of requirement benefits the apartment complex owner, there are benefits for the renter as well. At Agency by the Mall we recommend you purchase renters insurance regardless of what your landlord requires.

Q. What if I share my apartment with a roommate? Do we both need to have renters insurance? 

A. Standard renter’s policies cover only you and relatives that live with you. If your roommate is not a relative, each of you will need your own renter’s insurance policy to cover your own property and to provide you with liability coverage for your own actions.

UMBRELLA INSURANCE FAQs IN PENNSYLVANIA

Q. What is a personal umbrella liability policy?

A. The personal umbrella liability policy is designed to increase your liability protection. This single policy acts as an “umbrella” over all of your personal liability policies–home, car, boat, RV, etc., so you have a higher personal liability limit than what would otherwise be available. In certain circumstances, an umbrella insurance policy provides coverage may provide personal liability coverage that is otherwise excluded from your other policies. For example, an umbrella insurance policy provides coverage anywhere in the world, whereas your car insurance policy usually provides coverage in only the US and Canada.

Q. How do I know if I need a personal umbrella liability policy?

A. It used to be that the only people who needed personal umbrella liability policies were wealthy individuals who had sizable amounts of personal assets that would be at risk in a lawsuit. However, in our very litigious society, even individuals with modest incomes are often subjects of large lawsuits. Since those with modest incomes are even less able to pay damages than a wealthy individuals, Agency by the Mall recognizes the need to provide coverage limits greater than what can be obtained from their homeowner insurance or car insurance policies.