Auto Insurance

What is the difference between Split-limit Liability Coverage and Single-Limit Liability Coverage?

Single-limit Policy: provides one total amount of coverage for bodily injury and property damage in an accident, regardless of the number of people involved or the extent of the property damage.

Split-limit Coverage: specifies individual amounts in an accident for an injured person, for all injured people, and for damaged property.

For example, a $50,000 Single-Limit Policy provides a total amount of $50,000 for bodily injury and property damage in an accident. A policy with $25,000/$50,000/ $10,000 Split-Limit Coverage provides $25,000 per person.

What is the difference between bodily injury Liability Coverage and Medical Payments coverage?

Bodily Injury Liability Coverage: pays for injuries you, or anyone covered under your policy, may cause to others.

Medical Payments Coverage: pays for reasonable medical expenses for you or your passengers, regardless of who caused the accident. Some states require passengers to first seek reimbursement under their own automobile policy.

What is the difference between Collision and Comprehensive Coverage for my automobile?

Collision Insurance: Collision insurance laws may vary by state, but generally, this insurance covers a loss to the insured’s vehicle caused by its impact with another vehicle or object.

Comprehensive Coverage: Comprehensive insurance laws may vary by state, but generally, this insurance protects against any loss or damage to an automobile except those caused by collision or by upset. For example, glass replacement, towing and labor coverage, or coverage against fire or theft.

Should I buy collision insurance if I have an old car?

Buying collision insurance is a personal decision. You may want to consider the value of your car or the amount of loss you can personally assume. Our aim is to help you decide what coverages are best for you.

Is my child who is covered under my policy still covered by my policy while driving someone else’s car?

If your child is a resident of your household and will have use of your vehicle, he or she should be listed on the policy in order to be covered while driving a vehicle included on the policy. If your child is driving someone else’s car with their permission, the other person’s insurance often covers the damage. If you have any questions about who should be listed as a driver, please contact us.

What is an endorsement?

An endorsement is an amendment to your policy written especially to cover unique items just for you. It is also a change to your policy that is made during the policy’s term. An endorsement is attached to your policy to modify the terms of the insurance contract.

What happens to me if I drive without auto insurance?

If you are involved in an auto accident and found to be driving without car insurance or proof of financial responsibility, you will be subject to penalties specific to the laws of your state. That could include a fine, or even loss of driving privileges. If you are uninsured and in an accident that involves property damage or injuries to people, you will be required to pay on your own for any damages assessed by a court.

What do I do if I get into a accident?

First, you need to notify the police. You should also exchange information with the other driver(s) involved in the accident. Next, you should immediately contact your insurance company, and do what the insurance company advises you to do.

Homeowner’s Insurance

Can you provide some tips for estimating the value of my home?

Below are a few ways you can estimate the value of your home:

  • Every year, take the time to check the value of your insurance policy    against rising local building costs. Your agent is available to assist you with your review of your coverage.
  • Check the latest building codes in your community. If your home is severely damaged, you might have to rebuild it to comply with new building code standards which may require a change in design or building materials.
  • Do not insure your home for the market value. The cost of rebuilding your house may be higher (or lower) than the price you paid for it or the price you could sell it for today.
  • Some banks require you to buy homeowners insurance to cover the amount of your mortgage. Make sure it’s also enough to cover the cost of rebuilding.
  • Increase the limit of your policy if you make improvements or additions to your house. You may upgrade features in your home to fit your tastes and lifestyle. These enhancements can significantly increase the replacement cost of your home. Your Agent will be available to help you in your determination whether additional coverage is needed.

We also have a number of online tools to help you calculate your home insurance needs. If you have questions about the amount of insurance coverage you need, feel free to contact us.

What is included in my Homeowner’s Insurance policy? What should I keep in mind before buying a policy?

Your homeowners insurance covers your house, permanent fixtures and fittings, garden walls, gates, fence, pool, and your personal belongings.

This policy protects you from specific types of home-related accidents and incidents. The most common types are fire, theft, and vandalism. In case you are unable to stay in your home due to accidents or other incidents, the policy provides additional living expenses, such as hotel expenses.

It also provides liability protection. Ideally, the amount of coverage should be sufficient to replace your home and property, and also cover your liabilities. If you stay in a flood or earthquake-risk area, you should separately purchase flood/earthquake insurance, as homeowners insurance usually doesn’t cover floods and earthquakes.

Can I increase or decrease the amount of insurance on personal items in my home?

Your personal property coverage usually reflects 50 percent of your home insurance coverage. It may be increased or decreased, depending upon state requirements.

Can I lower my home insurance premium?

Yes, you can lower your homeowner insurance premium by asking for discounts on your current policy, holding multiple insurance policies with your insurance carrier, and raising your deductible.

What kind of protection do I need against liability claims?

Nothing is worse than the feeling you get when you are responsible for damage to someone else’s property or for someone else’s injuries. Our representative can assist you with your selection of coverage to help you alleviate this financial worry.

This coverage is part of your homeowner’s insurance policy. It protects you and your family against property damage or bodily injury claims for which you are legally responsible. Liability insurance covers you, for example, if someone slips and falls on your property or if your dog bites someone.

Today, when multimillion-dollar lawsuits are common, your homeowner’s policy may provide substantial liability limits, but it may not be enough. Personal Liability Umbrella is available to supplement your present policies and provides additional coverage in increments of $1 million.

What is Personal Liability Umbrella Coverage?

Lawsuits are common today. If you accidentally injure someone or damage their property, you could be sued. And more and more, juries are awarding very large verdicts. Your homeowners, property and auto policies may provide substantial liability limits, but juries can award sums that exceed those limits.

Personal Liability Umbrella insurance acts like an umbrella, providing additional coverage on top of your auto and homeowners liability policies. It supplements your existing policies to provide additional personal liability protection.

The Umbrella policy goes into effect after the underlying liability limits on your homeowners or auto policy is exhausted. Therefore, your policy must have certain limits in order to qualify for an Umbrella policy.

Auto Insurance Liability Limits:

  • $250,000 bodily injury per person
  • $500,000 bodily injury per occurrence
  • $50,000 property damage per occurrence

Homeowners Insurance Liability Limits: $300,000

The policy provides:

  • Liability insurance that adds to the limits of your automobile, homeowners and recreational vehicle or boat liability policy limits.
  • Coverage for unknown or unexpected exposures that are excluded in typical auto, homeowners, recreational vehicle or boat liability policies.
  • Coverage for the cost of your legal defense. This includes court costs, interest on judgments and premiums on necessary bonds.

For more information, please contact us.

Business Insurance

I’m just getting my business started. Do I need insurance right away?

Yes, because the chance that you could suffer a loss begins with the first day of business. If you suffer a loss and have no insurance or have improper or insufficient coverage, there is very little, if anything, we can do to help you. You must be prepared for the risks that are inherent in any business and the losses, sometimes catastrophic, that they can cause.

Also, many states and local jurisdictions require that businesses be insured to begin operating. If you rent space for your business, your landlord probably requires that you be adequately insured as well.

I don’t have any major business assets. Why do I need insurance?

Every business has some property. And, when you think about it, your business is your property. Just like your home and your car, your business needs to be protected from loss, damage, and liability. In addition, your business is your source of income, so you need protection from the potential loss of that income.

Generally, there are two types of insurance — property and liability. Property insurance covers damage to or loss of the policyholder’s property. If somebody sued you for damages caused by you or your possessions (other than a vehicle covered by your insurance policy), the cost of the suit — both defending it and settling it, if necessary — would be covered by your liability insurance.

Is insurance coverage different for different businesses?

It can be. Many small businesses are now insured under package policies that cover the major property and liability exposures as well as loss of income. A common package policy used by many small businesses is called the Business Owners Policy (BOP).

Generally, these package policies provide the small business owner more complete coverage at a lower price than separate policies for each type of insurance needed. At Narula Financial Group we can help you decide which policy, or policies, are right for your business. Additional coverage for property, liability, perils or conditions otherwise excluded (e.g., flood protection) can be purchased as endorsements to a standard policy or as a separate, second policy called a difference-in-conditions (DIC) policy.

Because businesses vary, it is impossible to have a standard policy to cover all contingencies. Some businesses, regardless of their size, do not fit the profile of a standard business owners policy. For example, restaurants, wholesalers, and garages have special liability needs that are not met in the standard business owners policy. At Narula Financial Group, we can provide you with information so you can choose the right policy (or policies) to protect you and your business.

What types of property do I need to insure?

Your business may not possess all the following types of property, but you can use this list to make sure that you have considered all the property categories and any insurance coverage that may be warranted:

  • Buildings and other structures (owned or leased)
  • Furniture, equipment and supplies
  • Inventory Money and securities
  • Records of accounts receivable
  • Improvements and betterments you made to the premises
  • Machinery Boilers Data processing equipment and media (including computers)
  • Valuable papers, books and documents
  • Mobile property such as automobiles, trucks and construction equipment
  • Satellite dishes Signs, fences, and other outdoor property not attached to a building
  • Intangible property (good will, trademarks, etc.)
  • Leased equipment

To establish the amount of insurance you need on each, we can help you review the types of property you own and their uses. Some of these items are covered in the basic policies. For others, coverage can be added by an endorsement or rider. Some items, like money and securities, may not be covered by a standard commercial policy and may require a second, separate policy.