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Frequently Asked Questions

Below are some of our frequently asked questions. If you have any other questions or concerns, please feel free to contact us.

  1. Are there any advantages to writing my home and auto policies with the same carrier?
  2. Does my car insurance pay if someone else is driving my car?
  3. Is flood covered under my homeowners insurance policy?
  4. What is Renters Insurance?
  5. Why is the replacement cost for my home more expensive than the market cost?
Are there any advantages to writing my home and auto policies with the same carrier?

In many cases, writing your home and auto insurance policies with the same carrier offers you the biggest discount in premium.  The multi-policy discount can be as high as 30% with some carriers on both the home and auto policies. We recommend you write your home and auto insurance policies with the same carrier whenever possible to save you the most money. 

Bundling your home and auto policies with the same carrier can also be helpful if there is a claim against both policies.  For example, if your car is in your garage and your house burns down, having your home and auto policies with the same company can help expedite settlement of the claim because it eliminates any conversation or argument between insurance carriers. There is only one company that needs to settle the claim.  In addition, some carriers will apply only one deductible to a claim like this when they are written with the same carrier.  That will save you even more money.  




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Does my car insurance pay if someone else is driving my car?

Here in Illinois, auto insurance coverage follows the car.  If you give someone permission to drive your car and he or she is involved in an accident, coverage will be applied based on the policy for that vehicle, not the driver.

It is important that all drivers in the household be declared on the auto insurance policy. If a household driver, such as an adult child living at home, is not disclosed to the insurance company and there is a claim involving that driver, the company may have the right to cancel the insurance at the renewal because the policy holder misrepresented himself when applying for coverage.  Be sure to include all resident drivers on your auto policy - even if they have their own car insurance. Once your coverage has been cancelled by a carrier, it can be more difficult and more expensive to replace that coverage. 



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Is flood covered under my homeowners insurance policy?

Flood coverage is different than sewer and drain back up coverage– and your homeowners policy does not provide any coverage for flooding events.  It is that simple!  Flooding is the largest single cause of natural disaster loss and damage in our country.  The standard homeowner, dwelling or commercial property insurance policy typically excludes or does not otherwise provide coverage for flood damage.  Flood insurance coverage will allow covered flood losses to be adjusted in a similar manner as losses from other perils in other property policies.   

 

If you live in a flood plain, your mortgage lender will likely require that you carry flood insurance to protect your home.  If you don’t live in a high risk flood area, you are still at risk. Historically, about one quarter of all flood losses are in low risk areas.

 

Flood insurance is available through standard insurance carriers, but it is administered by the National Flood Insurance Program.  Rates are determined by the federal government. For more information on flood insurance, please contact our office.




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What is Renters Insurance?

Just because you don’t own a home, doesn’t mean you don’t need homeowners insurance.  Renters need insurance, too.  Landlords may insure the building you live in, but their coverage won’t protect your property in the event of theft or damage.  If you rent your home – either a house or an apartment – renters insurance is for you.

Renters insurance will help protect your family’s personal property against fire damage, theft and vandalism.  It will also protect your property such as your laptop and bicycle, wherever they may be.  Renters insurance, like homeowners insurance, also provides protection for personal liability claims – if you are held responsible for injury to another person or damage to another person’s property. 

The cost of a renters insurance policy is relatively small compared to the amount of coverage it contains.  Many carriers also offer multi-policy discounts for writing your renters and auto policies together.




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Why is the replacement cost for my home more expensive than the market cost?

The replacement cost of a home is the cost of rebuilding your home without taking into account any decrease in asset value or depreciation.  A home's market value reflects current economic conditions, taxes, school districts, the value of the land, location and other factors that have nothing to do with the actual cost of rebuilding a home and replacing all of its contents.  New home builders typically build many homes at once and bid out the jobs to receive the best pricing.  Their business model is based on economies of scale.  For example, they may purchase twenty bathtubs at once, securing a lower unit cost.  Replacement cost for a single home is more expensive since there are no savings when buying just one bathtub.  By insuring your home for the proper replacement cost, you will have the proper amount of coverage to reconstruct your home and contents- not what it was worth on the current market. 



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420 Lake Cook Road, Suite 111 | Deerfield, IL 60015 | T: 847.945.0155 | F: 847.945.0428 Powered by Insurance Website Builder