FREQUENTLY ASKED QUESTIONS
Basic Insurance Questions
An Insurance broker is someone who is not employed by an insurance company but they are licensed insurance agents. Their job is to advise clients on their insurance needs and search out the best policy on their behalf. Click here to learn more.
The short answer is yes. There is a correlation between credit scores and individuals getting into accidents, and cancellation policies due to non-payment. It is important to keep your credit in good standing to ensure that your insurance rates do not increase. Click here to learn more.
Umbrella insurance is extra liability coverage. It is there to help protect you from lawsuits and major claims. It helps protect your assets. For more information click here.
A deductible is how much money you will have to pay out of pocket before your insurance covers the rest of a claim. A lower deductible will lead to a higher premium, while a higher deductible will lead to lower premiums. Click here for more information regarding deductibles.
Insurance Fraud is when an individual deceives an insurance company in order to falsely obtain money they are not entitled to. This is a crime illegal in all fifty states, and there are a variety of different types of insurance fraud. Click Here for more Information regarding Insurance Fraud.
Auto Insurance FAQs
Liability coverage for auto insurance is a type of car insurance that pays for damages and injuries you cause to others in an accident for which you are at fault. Read our Blog Here about the importance and different types of Liability Coverage.
Underinsured motorist coverage is a type of auto insurance that protects you if you're in an accident with an at-fault driver who doesn't have enough insurance to cover your damages or injuries. Read our Blog Here that goes in depth on UMI.
Medical Payments are an add on for your auto insurance that helps pay for injuries sustained by you or anyone else in your vehicle. Coverage usually ranges from $1000 to $10000. Read our Blog Here about Medical Payments.
Glass coverage for auto insurance, also known as full glass coverage, is an optional add-on. This will cover any repairs that you may need regarding windshields and windows. For any other questions regarding glass coverage, read our blog, or give us a call.
Yes, we would highly recommend it! Defensive Driving School is a simple four hour course that can be taken online. Your other two options are to pay the fine or fight the ticket which can be tiresome and expensive. A simple speeding ticket can significantly effect your rates which is why it is important to keep your driving record as clean as possible. Read our blog to learn more about the importance of attending defensive driving school.
When someone hits a parked car they are responsible for making contact with the vehicle owner. They must either wait for the owner to return to their car or leave a note with their personal contact information, insurance information and a description of the incident. If someone hits a vehicle and does not leave this information it then becomes a hit and run situation. Take pictures of the damage and call the police to file a report. For more information click here.
Filing an auto insurance claim should be done strategically. By considering factors such as the severity of damage, circumstances of the accident, who is at fault and your insurance policy, you can make an informed decision that best suits your needs and financial situation. Click here for examples and more information.
There is multiple reasons that this could be happening. One is that the Phoenix area has seen a massive rise in population and in turn drivers on the road. Another is that the used car market is rising, this means that a car that used to be worth about 6k is now worth upwards of 10k. With car technology becoming better and better it means the parts become more and more expensive. With a new car comes a lot of new things that can break and cost you and your insurance company lots of money.
In the event of an accident, it is important to remain composed, stay at the scene in a secure spot, capture photographs of the surroundings, and exchange contact and insurance details with the other party involved. After getting the necessary photos and information from the accident it is time to contact the appropriate insurance company. If the other person seems to be at fault you should call their insurance company. Click here to learn more.
It is always important to call the police after you get into an accident. The police are available to give medical attention to anyone who is injured. They also protect the scene of the accident and investigate to make sure that the truth of what happened. If you are not at fault the police report will be vitally important, especially if you plan to bring them to court. Click Here for More Information.
If your vehicle was deemed to be "totaled" by the insurance company you have a few options. The company will be giving you money to buy a new vehicle, if you would rather repair your vehicle you can. However, this will then require you to get a salvage title with the state you live in. Salvage titles can make a car more difficult to sell and it is harder to get the vehicle insured. Click Here For More Information Regarding Salvage Titles.
Homeowners Insurance FAQs
Home Insurance is designed to protect the physical structure of your house and its contents from a variety of risks. However, it doesn't typically cover the value of the land your house sits on. When an insurance company is determining how much coverage you need they take into account things like cost of materials and labor that it would take to rebuild your house on the land you already own. For more information click here.
There are a few ways to save money on your insurance plan.
1. Maintain a Good Credit Score
2. Bundle your Insurance Policies
3. Increase your Deductible
4. Improve the Security of your Home
5. Make your Home more Resistant to Fire and Natural Disasters
6. Ask your Insurance Company about Other Discounts
Loss of use coverage, or coverage D, gives financial reimbursement when your home or apartment is considered unlivable due to an accident that your insurance covers. For more details read our blog here.
Jewelry Coverage covers your precious items through a burglary or a fire. When getting your homeowners policy it will be an add on with options for how much coverage you will be offered. Depending on the prices of your jewelry you may want a higher or lower limit. For example if your $10,000 bracelet is stolen and your limit is $5000, you just lost $5000. Read our blog here for more information.
A Percentage deductible is a type of insurance deductible that's calculated as a percentage of the home's insured value, and is often applied to specific claims. For example, if your home is worth $500,000 and you have a 1% deductible, your deductible will be $5000.
An optional endorsement that can be added to your home insurance policy. It helps pay for the cost of repairing or replacing damaged underground utility lines that run into your home.
Loss assessment coverage is an optional endorsement you can add to your condo or homeowners policy for an additional premium. It covers HOA or Condo Association fees that are from insurance claims.
Your roof plays a critical part in whether or not an insurance company will be willing to cover your home for a reasonable price. A well-maintained roof signifies a lower risk of leaks, water damage, and other issues. Insurance companies have enough reasons to deny claims already, by not maintaining your roof, you give them another reason. Click Here To Learn More.
Real Estate Investor Insurance FAQs
A Vacancy Permit is an endorsement added to a homeowner policy that extends your home insurance to maintain coverage and insure the property while it is vacant. They are usually issued for a specific length of time and reduces coverage to your insurance. Click here learn more.
A "fix and flip" is a real estate investment strategy where an investor purchases a property, makes improvements or renovations to increase its value, and then sells it for a profit. Click Here to Learn More.
Rental property insurance, or landlord insurance, is made specifically for the property owners. It will normally cover up to the replacement cost, and sometimes even the purchase price. It is highly encouraged to purchase landlord insurance as it can save you thousands of dollars if something were to happen on your property.
No, liability insurance for your investment property does not cover injuries to workers performing tasks on your property. If a worker is injured while working on your property, their injuries should be covered by workers' compensation insurance, not liability insurance.
Renters insurance is a tool that is there to help protect you as the landlord. It protects the tenants belongings from theft or vandalism. Gives the renters liability protection in the case that someone is injured in the home. If something were to displace the tenants, renters insurance will cover temporary living expenses. Over time it will save you time, money and headaches. Renters insurance is typically very affordable so there should be no reason that your tenants do not have it. Renters insurance is required as long as the owner is not the occupant, even in the case of family living in the home.
It offers several benefits. First, it provides you with liability coverage if a claim arises from an incident involving the tenant's actions or negligence within the rental property. Also, as an additional insured, you will be notified of any changes to the policy, such as cancellations or non-renewal. Finally, having coverage under the tenant's policy can help reduce the likelihood of you being directly sued for incidents related to the tenant's actions.
A landlord policy is not suitable for a house being flipped. There are a few reasons for this. Landlord policies are made for properties that are occupied by tenants. Flipping also involves different risks, such as construction or renovation-related damage, which is not covered by landlord policies. There are many gaps in the coverage between landlord policies and vacancy policies, which will leave you exposed to potential financial losses.
Insurance companies generally avoid insuring homes with existing fire or flood damage due to the increased risk and uncertainty involved. It can lead to toxins, mold, and all types of bacteria that can lead to long term damage. These properties pose a higher likelihood of further claims and complications.
Builder's Risk Policy covers risks specifically related to the construction process, such as construction site accidents and material theft. Whereas, Vacant Policy Allowing Renovations, focuses on risks associated with the property being empty, such as vandalism. If your property is undergoing significant construction, like adding square footage, or adding a second story, it is best to get a Builder's Risk Policy. However, if the home is unoccupied and undergoing minor renovations, such as painting the walls or any cosmetic renovations then it is best to get a Vacant Policy Allowing Renovations.
Typically, your insurance policy does not cover contractors' tools. The contractor themselves are responsible for insuring their own tools and equipment.
Life Insurance FAQs
Supplemental Life Insurance is additional coverage that you can purchase on top of your existing life insurance policy. This type of insurance is designed to fill the gaps let by your primary policy, ensuring that your beneficiaries receive adequate financial support in the event of your untimely death. Read More Here.
Life Insurance is an essential part of the end of your life. Not only will it help pay for funeral costs that your family would have to pay out of hand. It can also help cover your debts, and replaces the income that you would have been bringing in for a period of time.
We at AZ Insurance Team recommend following the DIME Method:
Debt: Add up your debt and expenses.
Income: Decide how many years your family would need support and multiply that number by your annual income.
Mortgage: Determine the amount you need to pay off your mortgage
Education: Estimate the cost of sending your kids to college
The answer is not a straightforward yes or no. Life Insurance policies almost always cover accidental deaths, which can include accidental overdoses. However, if it is viewed to be intentional the insurance company can decide to deny the claim. If you have a history of substance abuse it is just another reason for them to deny the claim. For More, Read Here.
Commercial Insurance FAQs
Binder Insurance is a temporary form of coverage that provides immediate protection until your actual insurance policy is issued. It is a short-term contract between you and the insurance company, this ensures that you are covered while the details of your policy are being processed. Read More Here.
Additional Insured is when a general contractor puts your name or your businesses name as an additional group that is covered by the general contractors insurance. If the contractor was hurt on the job and you do not have additional insured, your liability coverage would have to pay for the independent contractor's injuries and lost wages. Read More Here.
There are 3 types of insurance that you should ask your insurance agent about:
1. Rider to a Homeowner's Policy: An add-on that expands a homeowner's or renter's policy to cover the company. This is the cheapest option but also the most bare.
2. In-Home Business Policy: This policy covers a broader range of contingencies like theft. This usually covers up to 3 employees, and the cost is slightly higher.
3. Business Owner's Policy: If you need more than $10,000 of coverage you should pay for a Business Owner's Policy. Giving the most amount of protection possible, for a slightly higher price.
There are 3 critical types of insurance that every company must think about:
1. Commercial Property Insurance: Property insurance is made to protect companies physical location of your business, along with the supplies and equipment that your business owns.
2. Commercial Vehicle Insurance: Vehicle insurance is meant to cover automobiles that are owned by the company, such as cars, vans, and trucks, in case of an accident, theft, flood, or other unexpected event associated with using the vehicle for commercial purposes.
3. Liability Insurance: Commercial General Business Liability Insurance means that you as an owner are not held liable for property damage or injuries that would be accidentally caused by you, your employees, your equipment, or your products.
Workers' Compensation Insurance is a type of insurance policy that provides financial and medical benefits to employees who suffer work-related injuries or illnesses. It covers medical expenses, rehabilitation costs, and a portion of lost wages during recovery. If you have any type of employees, family or not, we highly recommend that you invest in a workers' compensation policy. If you are a solo business with no employees and you are scared that you could one day be injured on the job, we also recommend investing into workers compensation.
For Any More Questions Contact Us at the AZ Insurance Team!
Phone 480-535-5709
Fax 480-785-4930
Text 480-878-7715
442 E. Southern Ave
Tempe, AZ 85282
© 2017 by AZ Insurance Team LLC all rights reserved