Ask the Insurance Expert: Your Questions Answered
Welcome to our new blog series, “Ask the Insurance Expert,” where we tackle your burning questions about all things insurance! We understand that insurance can be complex and confusing, so we’re here to provide clear, concise answers to help you make informed decisions.
This Week’s Questions:
Q: “I’m a new homeowner in Boca Raton. Do I really need flood insurance?”
A: Absolutely. While your homeowners insurance covers many things, it typically doesn’t cover flood damage. Given Boca Raton’s location and susceptibility to heavy rainfall and hurricanes, flood insurance is highly recommended. Even if you’re not in a designated flood zone, flooding can still occur. It’s best to be prepared.
Q: “What’s the difference between liability and collision coverage on my auto insurance?”
A: Great question! Liability coverage protects you if you’re at fault in an accident and cause injury or property damage to others. It covers their medical bills and repairs. Collision coverage, on the other hand, covers damage to your vehicle if you collide with another car or object, regardless of who’s at fault.
Q: “I’m starting a small business. What type of insurance do I need?”
A: Starting a business is exciting! You’ll likely need several types of insurance, including:
- General Liability Insurance: Covers bodily injury or property damage claims arising from your business operations.
- Property Insurance: Protects your business property, such as your building, equipment, and inventory.
- Workers’ Compensation Insurance: Required in most states if you have employees, it covers medical expenses and lost wages for employees injured on the job.
- Professional Liability Insurance (Errors and Omissions): If you provide professional services, this covers you against claims of negligence or errors.
Q: “My insurance premium went up. Why?”
A: Several factors can cause your premium to increase, including:
- Claims History: If you’ve filed claims recently, your insurer may view you as a higher risk.
- Driving Record: Traffic violations or accidents can lead to higher auto insurance premiums.
- Credit Score: Insurers often use credit scores to assess risk.
- Changes in Coverage: Adding coverage or increasing limits will raise your premium.
- Market Conditions: Insurance rates can fluctuate based on economic and environmental factors.
Q: “What is an insurance deductible?”
A: A deductible is the amount you pay out of pocket before your insurance coverage kicks in. For example, if you have a $500 deductible and file a claim for $1,500, you’ll pay $500, and your insurer will cover the remaining $1,000. Generally, higher deductibles mean lower premiums.
Have a Question for Our Expert?
We’re here to help! Submit your insurance questions in the comments below, and we’ll answer them in our next “Ask the Insurance Expert” post.
