Insurance FAQs

Question 1

What is the difference between term and whole life insurance?

Accepted Answer

Term life insurance provides coverage for a specific period (10, 20, or 30 years) and pays a death benefit if you die during that term. It's the most affordable option for pure death benefit protection. Whole life insurance is permanent coverage that also builds cash value over time. It's more expensive but provides lifelong protection and a savings component.

Question 2

How much homeowners insurance do I need?

Accepted Answer

Your homeowners insurance should cover the full replacement cost of your home — not its market value. Replacement cost is what it would cost to rebuild your home from scratch at current construction prices. A local insurance advisor can help you calculate the right coverage amount for your specific property.

Question 3

What does liability insurance cover?

Accepted Answer

Liability insurance covers you if someone is injured on your property or if you accidentally damage someone else's property. Homeowners and auto policies include liability coverage, but an umbrella policy provides additional protection above those limits — typically $1–5 million in additional coverage.

Question 4

Is flood insurance included in homeowners insurance?

Accepted Answer

No — standard homeowners insurance does not cover flood damage. Flood insurance is a separate policy available through the National Flood Insurance Program (NFIP) or private insurers. If you live in a flood-prone area, a local advisor can help you assess your risk and find appropriate coverage.

Question 5

How can I lower my insurance premiums?

Accepted Answer

Common ways to lower premiums include bundling home and auto policies (typically 10–25% savings), increasing your deductible, installing security systems, maintaining a good credit score, and shopping multiple carriers. An independent local advisor can compare options across multiple companies to find your best value.

Question 6

What is an independent insurance advisor?

Accepted Answer

An independent insurance advisor works with multiple insurance carriers rather than representing a single company. This means they can shop your coverage across many options to find the best combination of price and protection for your specific situation — unlike a captive agent who can only offer one company's products.

Question 7

When should I review my insurance coverage?

Accepted Answer

You should review your coverage annually and after any major life change — buying a home, getting married, having children, starting a business, or making significant home improvements. A local advisor can conduct a comprehensive review to ensure your coverage keeps pace with your life.

Question 8

What is an umbrella insurance policy?

Accepted Answer

An umbrella policy provides additional liability coverage above the limits of your home and auto policies. For example, if you have $300,000 in auto liability and a $1 million umbrella, you have $1.3 million in total liability protection. Umbrella policies are relatively inexpensive — typically $150–$300 per year for $1 million in coverage.

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Insurance Frequently Asked Questions

Insurance FAQs

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