Question 1

What Is Flood Insurance?

Accepted Answer

Flood insurance is a type of property insurance that covers a residence for losses from water damages, usually due to extreme weather, groundwater builds up, or other causes of floods.

Question 2

I Already Have Homeowners/Renters’ Insurance. Am I Covered?

Accepted Answer

No, flood insurance coverage is different from Homeowner’s insurance and what is covered differs. Check your Homeowner’s insurance provider to be sure, but typically flooding is not covered.

Question 3

How Does Private Market Flood Insurance Differ From NFIP?

Accepted Answer

Flood insurance can be either purchased through the National Flood Insurance program/FEMA or directly from private carriers. They are the same policy, underwriting, and claims adjusting. There are sometimes extra coverages that the Private Market can add to their policies that are not available through NFIP. The rate is typically a lot lower.

Question 4

What is Risk Rating 2.0?

Accepted Answer

FEMA is updating the National Flood Insurance Program (NFIP) risk rating methodology through the implementation of a new pricing methodology called Risk Rating 2.0. The methodology leverages industry best practices and cutting-edge technology to enable FEMA to deliver rates that are actuarily sound, equitable, easier to understand and better reflect a property’s flood risk. Risk Rating 2.0 is a complete redesign of the NFIP. It provides a more accurate and fair rating of properties. Some of Risk Rating 2.0 changes are: 
Elevation Certificates no longer required
New Rating Features:
Distance to water source
Difference in elevation between ground and lowest floor
Type of flooding
Flood frequency
Foundation Type
Replacement cost
Prior flood claim history

Question 5

How will Risk Rating 2.0 effect my rates?

Accepted Answer

23% of current policyholders will see an immediate premium decrease
An additional 66% of current policyholders will see on average $0 - $10 per month increases.
7% will see an increase on average of $10 - $20 per month
4% will see increases of $20 or more per month.
We have seen quite a few premium decreases in our area.

Question 6

What Are The Coverage Limits For Our Private Market Flood Insurance?

Accepted Answer

The limits are the same as NFIP. The maximum available limits are $250,000 for a home and $100,000 for contents. The coverage for maximum commercial property is $500,000.

You can purchase Additional Living Expenses through the Private Market.

You can also purchase “Excess” limits over and above the $250,000 or $500,000. In the Private market, we can write up to $2,000,000 on a home and $5,000,000 on a commercial building.

Question 7

Will Federal Disaster Assistance Pay For Flood Damage?

Accepted Answer

No, not necessarily. Federal Disaster Assistance is only available when a Presidential Disaster Declaration is declared. Most flooding events do not result in this declaration. If it is declared, the aid is commonly a form of low-interest disaster loans that must be repaid.

Question 8

Is Private Market Flood Insurance Affordable?

Accepted Answer

Yes, we offer policies that can be more than 50% less in some cases. Our agency represents over 25 Private Flood Markets.

Question 9

What Is Covered In My Private Market Flood Insurance Policy?

Accepted Answer

PMFI policies are the same policy as NFIP - and better. You can add Additional Living Expense/Loss of Use to some PMFI policies. This coverage will help pay for any additional living expenses you have after a loss, such as staying in a hotel for a month while your home is being repaired.

Question 10

When Does My Flood Policy Go Into Effect?

Accepted Answer

In most cases, there is a 30-day waiting period. In the Private Market, the policy will go into effect 15 days from the date of application. If you are buying a home and have a bank loan, there is no waiting period.

Question 11

How Do I Switch From NFIP To Private Market Flood Insurance?

Accepted Answer

Simply contact us and we will happily help you through the process.

Question 12

What Are the Costs Of Private Market Flood Insurance Policies?

Accepted Answer

We have seen rates 25-75% lower than NFIP. However, we do run into situations where NFIP is a better option.

Question 13

What Private Market Flood Carriers Do We Use?

Accepted Answer

Policies are placed with and are underwritten by select insurance carriers who have maintained an AM Best financial rating of no less than “A or A-” (Excellent).

Question 14

Can I Cancel My NFIP Policy Mid-Term?

Accepted Answer

No. At this time the NFIP does not offer mid-term cancellations.

Question 15

What Are The Issues With The NFIP?

Accepted Answer

Well, where do we begin….

Government Flood insurance written through NFIP and backed by FEMA is MASSIVELY subsidized. Homeowners in coastal areas screamed bloody murder back in 2012 when the government tried to charge the full rate for each risk. Congress reversed itself in 2014. In 2021, the NFIP completely revised their rating platform. It is called Risk Rating 2.0. They limited the increases to 25% per year. The NFIP program is currently over $25 BILLION in the hole. That was before all the flooding and hurricanes of recent years.
It is only going to get worse! The National Oceanic and Atmospheric Administration (NOAA) states that global sea levels are going to rise between 1-3 feet this century. They also say that climate change will contribute to more storms and flooding.
The premiums charged by the NFIP do not correlate with the risk. We are essentially subsidizing risks in more flood prone areas such as Florida, Louisiana, and Texas.
The current flood maps are in dire need of updating. This is done by Congress.
NFIP policies do NOT include coverage for additional living expense. If you need to move out of your home after a flood while repairs are being made, you need coverage for additional living expense. Private Market policies include this coverage.
It is simple mathematics. The NFIP model simply cannot sustain its current model. How big of a deficit will finally break the back of the program?
The Private Market insurers can rate each property based on the individual risk and NOT try to subsidize the homeowner that lives on the Mississippi River whose home floods every few years and collects a large check.
Is the Private Market new? NO… They have been around for decades writing private and excess flood. Only recently in 2015 have they been accepted as a replacement option for NFIP. Congress is making it easier and easier to write your flood insurance in the Private Market.

Question 16

What Constitutes A Flood?

Accepted Answer

There are a few types of floods: Coastal, River, Drain/Sewer, Groundwater, and Flash Flooding

Coastal flooding is a cause of extreme weather and high tides. Low-lying seaside areas are in the most danger from coastal flooding.
River flooding is a very common type of inland flooding. It happens when a body of water exceeds the river banks, typically from intense rainfall. This flooding can affect surrounding properties and pose a serious safety threat.
Drain and Sewer flooding is not always due to extreme weather, though it can be a factor or the cause sometimes. Other times it may be a blockage or failure of the drainage system or an internal problem with the building.
Groundwater floods take time to transpire. With extended periods of rainfall, the ground becomes waterlogged until it is incapable of absorbing any more. Water then rises above the surface and begins to cause flooding. These floods can last for weeks and even months in some cases.
Flash floods are a very dangerous form of flooding. Unlike groundwater floods, it happens quickly when the ground cannot absorb water at the speed and amount it is falling at.

Question 17

How Damaging Can A Flood Be?

Accepted Answer

Floods can be extremely damaging, costing billions worth of damages in the U.S. alone. They can compromise the structural integrity of your house and destroy the items in it. Flood waters usually contain mud, sewage, bacteria, and toxins, which pose a grave threat. Even after the water has subsided and is gone in your house, mold is likely to occur due to walls, furniture, and other items being soaked.

Question 18

Where Can Floods Happen?

Accepted Answer

Floods can happen anywhere, even if you are in a low-risk flood zone. In the past 5 years, all 50 states have experienced a flash flood. Some areas are at a higher risk than others.

Question 19

How Can I Prepare For A Flood?

Accepted Answer

Though having flood insurance is a great start, there are other precautionary methods you can practice helping even further:

Pay attention to flood alerts. This simple task can help you a lot, giving you time to move furniture and other valuable to a safe place.
Always have a flood checklist. This should include what to do in case of a flood, items you should have, where you and your family should go, roads to take that are less likely to flood, higher ground locations near your home, and an evacuation plan.
Waterproofing your basement, though expensive, is worth it. The investment is easily payed off if you live in a frequently flooded area.
Invest in a sump pump. Sump pumps remove the water that has accumulated. The faster you get rid of the water the greater your chances of preventing damages and mold are. Many new sump pump systems come with a battery backup.
Elevate your electrical components at least 12 inches above predicted flood levels.
Anchor and elevate outdoor equipment. Things such as fuel tanks, generators, or air-conditioning units that can be swept away should be anchored and elevated to prevent this.
Install back-flow valves or plugs. These will prevent flood waters from entering and can stop sewage from entering your home.

Question 20

What are wind deductibles?

Accepted Answer

There are several different deductibles that insurance companies force on their clients. There is the standard deductible for “all perils”; for example, $1000 – $2,500. Then there is a separate “Wind / Hail” deductible, which is generally a percentage of the coverage on your home. This is usually a percentage (1%, 2%, or as high as 5%) of your coverage “A” dwelling amount. For example, if your home is insured for $300,000 and you have a 2% windstorm deductible, then you would have a $6,000 deductible for wind damage. This “Wind/Hail” deductible applies anytime the wind blows and causes damage. Another deductible is the “Hurricane” deductible. This deductible applies only when we are hit with a hurricane. Another deductible is a “Named Storm” deductible. This deductible would apply if your damage was caused by a “Named Storm”. For example, by the time Hurricane Sandy hit the Massachusetts coast in October of 2012, it was downgraded to a tropical storm, so only the “Named Storm” deductible or the “Wind/Hail” deductible would have applied.

It is important to realize that homeowners insurance does not cover flood damage. If you want this type of protection, you will need to buy separate Flood Insurance.

Question 21

If I Buy a Private Flood Policy, Can I Switch Back to a Federal Flood Policy Later?

Accepted Answer

Yes, you can ALWAYS switch back to a NFIP policy. You would, however, lose your grandfathered policy and your subsidized rate. So it may be more expensive to switch back. However, you could keep your NFIP policy and lower the dwelling amount to the minimum. The cost for the policy is about $500 or less. This way you would not lose your grandfathered rate or subsidized rate IF you ever wanted to switch back.

Question 22

Do Private Flood Policies Have a Waiting Period as Federal Policies Do?

Accepted Answer

Yes, however, they are only 10-15 days instead of 30 days in most cases. If you are buying a home and have a bank loan, there is NO waiting period. If you have an existing flood policy in place, there is NO waiting period.

Question 23

What is Bodily Injury/Optional Bodily Injury?

Accepted Answer

The bodily injury and optional bodily injury coverages of the personal auto policy provide protection against legal liability arising out of the ownership or operation of an automobile. The insuring agreement agrees to pay damages for bodily injury for which the insured is legally responsible because of an automobile accident. This liability limit can be written as a single limit that applies to both bodily injury and property damage, also known as a Combined Single Limit (CSL). The policy can also be written with split limits in which the limits of insurance for bodily injury and property damage are stated separately. The insuring agreement also states that in addition to the payment of damages for which the insured is legally liable, the insurer also agrees to defend the insured for all legal defense costs. The defense cost is in addition to the policy limits.

Question 24

What is Personal Injury Protection?

Accepted Answer

Personal Injury Protection (PIP) adds no-fault benefits. No-fault means that in the event of an automobile accident, each party collects from his or her own insurer regardless of fault. No-fault benefits are limited to the injured person's actual economic loss, and are paid as specified by the law of the insured's state. Payment could be made for such losses as loss of earnings resulting from bodily injury and medical and funeral expenses. Other expenses can also be considered. PIP is only available in certain states with no-fault Laws. PIP applies only to bodily injury and not to property damage. No-fault laws vary widely from state to state.

Question 25

What is Uninsured Motorist Coverage?

Accepted Answer

Uninsured Motorist Coverage pays for bodily injury to an insured who is injured by an uninsured motorist, a hit-and-run driver, or a driver whose insurer becomes insolvent.

Question 26

What is Underinsured Motorist Coverage?

Accepted Answer

Underinsured Motorist Coverage can be added to the policy to supplement the uninsured motorist coverage. The coverage must be added to all automobiles listed on the policy, and it must be added for the same limit as the Uninsured Motorist Coverage. Underinsured motorist coverage applies when a negligent driver has liability limits at the time of an accident, but the liability limits carried may be insufficient to pay for damages that the negligent driver is responsible for. This is when the insured's underinsured motorist coverage would apply and payment for the difference could be made. The two coverages are mutually exclusive and do not overlap or duplicate each other and cannot stack on one another. An insured can collect under one coverage or the other depending on the situation, but not under both.

Question 27

What is Property Damage Liability?

Accepted Answer

The Property Damage Liability coverage of the personal auto policy provides protection against legal liability arising out of the ownership or operation of an automobile. The insuring agreement agrees to pay damages for property damage for which the insured is legally responsible because of an automobile accident. On a Commercial Auto policy, the liability limit can be written as a single limit that applies to both bodily injury and property damage, also known as a Combined Single Limit (CSL). The policy can also be written with split limits in which the limits of insurance for bodily injury and property damage are stated separately. The insuring agreement also states that in addition to the payment of damages for which the insured is legally liable, the insurer also agrees to defend the insured for all legal defense costs. The defense cost is in addition to the policy limits.

Question 28

What is Medical Payments Coverage?

Accepted Answer

The insuring agreement states that the insurer will pay all reasonable and necessary medical and funeral expenses incurred by an insured because of bodily injury caused by an accident. Payment can be made for expenses incurred within three years from the date of the accident. The insured is the named insured and family members, and any other person injured while occupying a covered auto. Pedestrians or cyclists are also considered the insured when struck by a vehicle. These payments are made without regard to fault.

Question 29

What is Collision Coverage?

Accepted Answer

Collision Coverage provides protection against the upset of your auto or non-owned auto or a collision with another vehicle or object. Collision losses are paid regardless of fault. If you are found to be less than 50% at fault, most likely your collision deductible can be waived. There is an endorsement on the policy called “Waiver of Deductible” and you must be able to successfully identify the other party so your insurance carrier can subrogate against the other insurance company and get reimbursed.

Question 30

What is Limited Collision Coverage?

Accepted Answer

Limited Collision Coverage provides similar coverage to Collision Coverage. It is protection against the upset of your auto or non-owned auto resulting from a collision with another vehicle or object. Whereas Collision Coverage provides protection regardless of fault, Limited Collision Coverage will only apply if the insured/operator is involved in a loss where they are 50% or less at fault AND you are able to name the other party involved. It cannot be a hit and run. Limited Collision is very inexpensive to add and is a great alternative to full collision on an older vehicle.

Question 31

What is Comprehensive Coverage?

Accepted Answer

This coverage provides protection against any loss or damage to a covered auto resulting from loss other than a collision or upset, or a loss specifically excluded. For example: Fire, Theft, Vandalism, Glass Loss, Wind/Hail Damage, Animal Strike, Flood, etc. This coverage is where you will find coverage for windshield loss. This coverage also provides for supplemental payments for transportation expenses in the event of total theft of a covered auto or a non-owned auto. The auto must be insured for comprehensive or specified cause of loss coverage. Coverage begins forty-eight hours after a theft of a covered auto. Payments end when your vehicle is found or when the insurer pays for its loss.

Question 32

What is a Deductible?

Accepted Answer

A deductible is the out-of-pocket expense after a loss. The deductible is in place to prevent an insured from submitting numerous minor claims. It also allows the insured to save on annual premium, as they are essentially agreeing to cover themselves for smaller losses. Deductibles apply to both collision and comprehensive coverage. In some cases, the deductible can be waived.

Question 33

How does a Waiver of Deductible work?

Accepted Answer

A Waiver of Deductible applies when an insured is involved in a not-at-fault accident, where the other party involved can be identified. In a typical situation, the carrier will waive the deductible for the party who is not at fault and seek reparations from the other party’s carrier. The other party will also be responsible for any property damage or bodily injury if they are at fault. All of this funding is reimbursed through a process called subrogation.

Question 34

What is Substitute Transportation?

Accepted Answer

Substitute Transportation coverage (rental car) can be added to your policy when you have opted to include comprehensive and/or collision coverage on your vehicle. Substitute Transportation coverage applies when a covered auto or non-owned auto is not drivable due to a covered loss. The insuring agreement agrees to pay up to the stated amount for expenses incurred in renting a vehicle. The coverage usually carries a per day limit and a maximum amount limit. Higher limits should be considered if the covered auto is a higher end vehicle, truck, or mini-van. This coverage is not for vacation use or when your vehicle is undergoing general repairs and maintenance work.

Question 35

What is Towing and Labor Coverage?

Accepted Answer

Towing and Labor Coverage pays for towing and labor cost each time a covered auto or non-owned auto is disabled, up to the stated amount. The insured would pay for the invoice out-of-pocket and then submit the receipt to the insurance company for reimbursement up to the specified limit, usually $50 or $100.

Question 36

What is an SDIP rating?

Accepted Answer

SDIP stands for Safe Driver Insurance Program. An SDIP rating is the rating which is assigned to you by the Massachusetts RMV. The rating is calculated based on any prior citations, at-fault accidents, and infractions. Many people refer to their SDIP rating as the number of points they have on their license. New drivers start at a step 0. After five years of incident-free driving, a driver would be a SDIP 98 (Excellent Driver). After six years of incident-free driving, a driver would be the best step – SDIP 99 (Excellent Driver Plus). An accident is considered minor and assigned 3 points if more than $1,000 and less than $5,000 is paid out on a claim. A major accident is assigned 4 points for claim over $5,000. The payout includes both property damage and injuries and includes payments made to the insured and the claimant.

Question 37

What is Accident Forgiveness?

Accepted Answer

Accident Forgiveness prevents the insurance policy from increasing due to an at-fault accident. The RMV still shows the surcharge, but the insurance policy does not increase. Every company has their own rules and rates. For example, some companies charge a flat $75 per vehicle for the year and some companies charge 6% of the premium to add Accident Forgiveness. Without Accident Forgiveness, a policy could increase hundreds and hundreds the first year alone and the surcharge is for six years in MA.

Question 38

What is the Good Student Discount?

Accepted Answer

The Good Student Discount is a discount given to junior operators who have a current GPA of 3.0 (B) or better. The discount is typically good for a 10% credit on the annual premium, but this can vary between carriers (if available at all).

Question 39

How much does my annual mileage effect my rate?

Accepted Answer

Depending on the amount of annual mileage driven, your policy could be eligible for the Low Mileage Discount or Annual Mileage Discount. This is typically a tiered discount. This means the less you drive, the greater the discount could be. Most insurance companies pull the vehicle’s mileage from the RMV database from the safety inspection.

Question 40

What is Drive Other Car coverage?

Accepted Answer

Drive Other Car, also known as “DOC” coverage, is a type of insurance coverage that can be added to a Business Auto policy. This coverage is typically added for an owner of a business if they or their spouse do not own a vehicle in their personal name and only drive a company car. The optional endorsement can provide both liability as well as collision and comprehensive coverages to other vehicles they drive, such as a rental vehicle while on vacation or if they borrow a friend’s vehicle. Since they do not have a personal policy, the DOC endorsement can be what they fall back on if there is an accident.

Question 41

What is Non-Owned Hired Auto Coverage?

Accepted Answer

Non-owned & Hired Auto coverage is a coverage that can be added to a Commercial Auto policy, a Businessowner Policy, or even be a stand-alone policy if the business does not own a vehicle. Non-Owned Auto Liability provides liability protection for businesses if the employee uses their personal vehicle on behalf of the business (run to the bank, post office, or for supplies…) and is involved in an accident. Hired Auto Liability can provide liability coverage if the business rents or borrows a vehicle. If you own a business, you should have this liability coverage. It is typically very inexpensive.

Question 42

What payment options are available?

Accepted Answer

Most companies offer several payment options to spread the payments out throughout the policy period. Some carriers will evenly split the payments out over 12 months. There is typically a quarterly payment or paid in full option. There is generally a huge discount (10%-12%) for paying the entire annual premium up front. If you choose to pay monthly, your best option is EFT or ACH. This is where the company deducts the premium payment automatically from your checking or savings account. There is usually little or no fee to do this, whereas if they bill you monthly, companies charge a $4 -10 monthly fee.

Question 43

Why does my Garaging Address matter?

Accepted Answer

Your garaging address matters because this will indicate primarily where the vehicle is driven and stored. For example, a vehicle “garaged”/rated in Boston will have a much greater chance of getting into a collision with another vehicle than say a vehicle garaged in North Adams, MA. It is imperative that the correct garaging is listed on your policy. If you try to get around the system and select a lower rated town, the insurance company can deny a claim and it can be considered insurance fraud, which is a crime punishable by law. Companies have Special Investigative Units (SIU) which will find out if a vehicle is incorrectly garaged.

Question 44

What is Principal Operator vs. Occasional Operator?

Accepted Answer

A principal operator is the personal who primarily operates the vehicle. An occasional operator typically only drives incidentally. The principal operator does NOT have to be the owner of the vehicle.

Question 45

What is a Deferred Operator?

Accepted Answer

A deferred operator is someone who is not being rated on the policy, but they are still listed as an operator and can drive the vehicle. This means they have their own insurance to fall back on in the event of an accident/claim.

Question 46

Does my car insurance cover a Rented Vehicle while I am on vacation?

Accepted Answer

Your car insurance can indeed provide coverage for a rental vehicle. Your policy will only provide coverages that you purchase. If you do not have collision and comprehensive coverage, there would be no physical damage coverage for the rented vehicle. Otherwise, coverage would be passed down to the vehicle that is rented. Please note, your auto policy will not cover loss of use while the rented vehicle is being repaired after a claim, nor will it cover any administrative fees charged by the rental company. We generally always recommend to accept the insurance from the rental agency.

Question 47

Can I use my car to deliver food?

Accepted Answer

You can ONLY use your car to deliver food if your policy is properly endorsed. The vehicle must be rated as being used in delivery in order for coverage to apply. If not rated properly, the carrier can deny any claim that arises out of the delivery of food. If you drive a truck or van and deliver food, it is likely your vehicle will need to be insured on a Commercial Auto policy since delivery is excluded for trucks and vans.

Question 48

Can I rent my car to others (i.e., Turo)?

Accepted Answer

NO! Renting your car on services like Turo creates a business exposure. Such exposures are excluded from a Personal Auto Policy or Massachusetts Auto Policy. Anyone who rents their car(s) out on Turo (or similar platforms) requires a Business Auto Policy to make sure they are properly covered.

Question 49

Is my Snow Plow covered?

Accepted Answer

Your snow plow is not covered by an unendorsed Massachusetts Auto Policy or Personal Auto Policy. The carrier must be made aware of any plows or custom equipment installed on a truck in order for coverage to apply. This is assuming coverage is available through your carrier; this will vary depending on where coverage is placed.

Question 50

Are my personal belongings covered on my auto policy?

Accepted Answer

NO! Your personal belongings are not covered by your auto policy. If you have a laptop or some other valuable item stolen out of your vehicle, coverage is actually found under your homeowner’s/renter’s policy, not your auto policy. Some companies may offer an endorsement on the Auto policy which may give minimal coverage, such as $250, for stolen items. These endorsements typically require signs of a visible break-in and a police report is needed. Remember to always lock your vehicle and never leave valuables in your vehicle to entice burglars.

Question 51

Can I get a discount on my auto policy if I bundle?

Accepted Answer

Of course! Most, if not all, auto insurance carriers will give some sort of Account Credit for bundling your home and auto insurance together. Some will also give an additional discount if you also write an umbrella in the same carrier. In some scenarios, you can receive the credit even if coverage is placed through another carrier.

Question 52

My child is away at college. Do they need to be listed on my policy?

Accepted Answer

Your child’s principal address is still most likely your home address and they are usually still considered a household member while they are attending college, so they should remain a listed operator and have access to your policy, especially if they drive someone’s vehicle while at school. Many companies offer up to a 10% discount for this scenario, called Student Away at School. It applies if they are attending school more than 100 miles from their principal home. One word of caution is if your child drives a vehicle at school they have regular access to such as a roommate’s car. There is a “regular use” exclusion on the MA Auto policy which could void a claim. One way around it is to add the “Use of Other Auto” endorsement on your policy so they could come back to your policy for coverage if the roommate’s policy was not sufficient in the event of an accident.

Question 53

What is the Paid in Full Discount?

Accepted Answer

The Paid in Full Discount is a discount for paying the full annual premium up front. In many cases, it is a huge discount (10%-12%).

Question 54

What is the Pan-Mass Challenge Discount?

Accepted Answer

MAPFRE/Commerce Insurance offers a 5% discount on their Auto policy if you donate $25 or more to the Pan-Mass Challenge, where cyclists ride across the Commonwealth to raise money for cancer research. We find the savings on the Auto policy is more than the $25 donated. It’s a win-win!

Question 55

Is Pet injury covered?

Accepted Answer

The answer depends on your specific auto policy. Generally, most auto policies do not include coverage for pet injuries, but some may offer optional coverage if you choose to add it. It is best to check your policy or contact your insurance agent directly to get the most accurate answer. All of our Personal Auto carriers offer this coverage!

Question 56

Am I covered as a pedestrian and get hurt?

Accepted Answer

Depending on the type of auto policy you have, you may be covered for bodily injury if you are hit by a car as a pedestrian or even while riding a bicycle or skateboard. It is best to check with us to get the specifics on your policy and find out what your coverage is. Generally, any medical expenses resulting from an accident as a pedestrian should be covered by the at-fault driver's insurance, but there are coverages on the MA auto policy you may be entitled to.

Question 57

Why choose an Independent Agent?

Accepted Answer

Some Agents Sell Only Their Company's Insurance - Independent Agents Give You Choices. Trusted Choice represents a network of independent insurance agents and brokers that are a part of their local communities and support the people and businesses in it. Unlike captive agents, they work for you and have access to multiple insurance companies to find you the best coverage. And when your goals change, they have answers — no need to keep changing insurance agents!

Question 58

What is an insurance Declarations Page (DEC Page)?

Accepted Answer

A Declarations Page or DEC page is usually the first few pages of your policy which show your name/address, the company/policy number/effective date, and the limits you selected or “declared”.

Question 59

How is my Dwelling Coverage limit determined?

Accepted Answer

Your dwelling coverage limit is determined based on the cost to rebuild your home, taking into consideration the size, materials, and many other factors. It is important to ensure that you set the correct limit, as it will determine the maximum amount of coverage you receive in the event of a total loss. We take the time to calculate the appropriate dwelling coverage limit for your home using software programs provided by our carriers. The cost to rebuild your home includes labor and materials. Demolition and debris removal may need to be factored in separately. The replacement cost or rebuild value of your home will always be a different amount from what your town/city values or assesses your home at. The replacement cost of your home also should not be compared to the market value of you home which takes the land and location into consideration.

Question 60

What is the difference between Replacement Cost and Actual Cash Value?

Accepted Answer

Replacement Cost and Actual Cash Value are two different loss settlement methods of valuing damaged or destroyed property. Replacement Cost is the cost to replace the lost property with something of similar quality and condition. This is typically the most expensive option. Actual Cash Value (ACV) reflects the cost to replace the lost property minus depreciation. This is typically the least expensive option. Most people have Replacement Cost coverage on their contents since it can make an enormous difference in a payout at the time of a claim. If your ten year old couch is really worth only $200, but a new couch is $800, you will want Replacement Cost Contents.

Question 61

What is Functional Replacement Cost?

Accepted Answer

Functional Replacement Cost is a loss settlement method usually used on older homes and seen mostly on surplus lines policies, like Lloyds of London. The insurance company would repair or replace the damaged part of your home with less expensive materials and methods, such as using sheet rock instead of plaster. If your home is considered antique or vintage and you would want the same molding, wide floor boards, and hard to find materials or fancy architecture, then be sure to ask for a company who is willing to offer Replacement Cost, not Functional Replacement Cost.

Question 62

What is the difference between Replacement Cost and Market Value?

Accepted Answer

Replacement cost is the amount it would cost to rebuild or repair your home and takes into consideration the cost of labor and materials. Market value is the amount that your entire property is worth should you sell it in the open market. Market value takes land and location into consideration.

Question 63

What are the Different Deductibles on a homeowners policy?

Accepted Answer

The different types of deductibles on a homeowners policy are as follows: All Other Perils, Named Windstorm/Named Storm, Wind/Hail, and Hurricane. The All Other Perils Deductible applies to all perils that do not contain a special deductible; this is your standard deductible. A Named Windstorm/Named Storm deductible applies to loss caused by a windstorm that is named by the National Weather Service, such as Tropical Storm Irene; the Nor’easters we get typically do not have a name assigned to them. A Wind/Hail Deductible is one that applies every time the wind blows or anytime there is a hail storm. A Hurricane Deductible only applies during an active hurricane. If your policy contains a Hurricane Deductible, but the storm is only considered a Tropical Storm or Tropical Depression at the time of loss, the Hurricane Deductible does NOT apply.

Question 64

What is considered an Other Structure on a home policy?

Accepted Answer

“Other Structures” are any detached structure located on the premise of your Home/Dwelling. This can include, but is not limited to: sheds, fences, detached garages, guest houses, barns, flag poles, gazebos, poolhouse, etc.

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