Frequently Asked Questions about Insurance Like many thousands living in and around the Cincinnati area, Susanne Carter has multiple questions about her insurance needs and coverage options. Susanne’s questions mirror many hundreds, if not thousands, of individual’s concerns and questions regarding the wide world of insurance. Insurance can be a complicated and intricate industry and for those who are not dealing with insurance on a day to day basis, the complexities of the insurance world can make them feel like they are at a disadvantage when it comes time to purchase a new insurance policy or upgrade an existing insurance policy. In an effort to help in this muddled confusion concerning insurance, some of the most frequently asked questions about insurance are listed below with their associated answers.
The Questions! One of the first questions that many people ask in regards to insurance is if there are deductibles involved in homeowners insurance policies. This question usually stems from those individuals who have had dealings with car insurance but not with homeowners insurance or those who are looking into homeowners insurance for the first time. The answer is, simply, yes there are deductibles associated with homeowner’s insurance policies. The deductibles connected to homeowners insurance policies work like those attached to other insurance plans and must be met out of pocket by the individual before the coverage of the policy can initiate financial reimbursements for damages to items included in the homeowners insurance policy. Another common question concerning insurance is what liability coverage is and would a person need to include those options in their auto and home insurance policies. Often, people who do not fully understand liability insurance will opt to have that coverage axed from their auto or home insurance policies so that they can have a lower monthly premium. While it may be worth it for some to knowingly exclude a liability clause in their insurance policies in order to cut rates, the smart play is to first understand liability insurance coverage and how it can help a person. Liability coverage’s are often included in auto and homeowners insurance policies and are place to provide insurance coverage to suits concerning liability that may be brought against the policy holder. If a person files a lawsuit against a policy owner and is awarded money from that suit, often times a person’s home or auto liability insurance will cover the costs of the awarded funds so that the lawsuit
does not drive the policy owner into bankruptcy. This, however, leads directly into another common question about insurance—what is umbrella insurance and why is it needed?
One Insurance to Rule Them All! Umbrella insurance is an insurance policy that covers, like an umbrella, the gaps between an individual’s liability coverage as offered by their home or auto policies. Umbrella insurance in Cincinnati is needed by those who desire more liability coverage than is currently offered by their home or auto policies. In addition to offering more in coverage (and at inexpensive rates) an umbrella insurance policy will provide liability coverage for those holes in a home or auto policy that would not otherwise be included. For example, some homeowners insurance policies may offer liability coverage for a policy owner if a suit is filed that originated from an accident within the home, but this form of coverage would not cover the funds awarded to a pizza delivery person who filed suit against the homeowner for a sprained ankle suffered in the home’s driveway as an umbrella police would. These and other questions are frequently asked by individuals like Susanne who wish to be armed with the power that knowledge in insurance gives. A person can be better able to navigate their own insurance needs by striving to learn for themselves the various ins and outs of the world of insurance.
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