Frequently Asked Questions

Frequently Asked Questions2018-09-28T05:03:12+00:00

Below are some of the most common questions customers ask in relation to their N.C. insurance policy. Please note that these are general answers to the questions and your situation may differ depending on your particular policy conditions, exclusions, and endorsements. Feel free to contact us at any time with your specific questions and we will be glad to assist.


Should I use Electronic Funds Transfer (EFT) to make insurance payments?2018-07-17T00:42:44+00:00

By using EFT, you don’t have to remember to pay the bill. Forgetting to pay your insurance premium can ultimately result in a cancellation of your insurance policy, meaning if you get involved in an accident, you won’t have any coverage. The easiest way to ensure payment of your insurance premium is to set up EFT and that can be done with one quick phone call to our office.

I rented a car for business and damaged the rental car. Does my insurance cover these damages?2018-07-17T00:42:12+00:00

Under your N.C. auto insurance policy, coverage for rental cars is excluded when it is used for business purposes. Anytime you rent a rental car it is recommended you purchase the physical damage insurance they offer to ensure you will have coverage should anything happen to the rental car while in your possession.

Do I need a certificate of insurance from sub-contractors working at my house?2018-07-17T00:41:37+00:00

Before any work begins at your home with sub-contractors, it is always recommended that you get a copy of their certificate of insurance to verify they have a current insurance policy in effect.

Due to a recent flood, my home sustained significant water damages. Will my homeowners insurance pay for the flood damages?2018-07-17T00:41:06+00:00

Flood damages are excluded under your N.C. homeowners insurance policy and require an entirely separate Flood insurance policy to cover damages caused by floods. You may be surprised to know that a Flood insurance policy is relatively inexpensive in comparison to the damages flooding can cause. The National Flood Insurance Program determines the rates by evaluating the location of your home, replacement value of your home, and the amount of coverage you require.

If a hurricane strikes and causes my boat to sink, will insurance cover it?2018-07-17T00:40:19+00:00

It depends on the circumstances. Some policies may require you to house your boat in a territory that is outside of hurricane prone areas during hurricane season. You would need to ask your N.C. independent insurance agency whether your boat policy has that stipulation.

Assume your boat is covered due to the hurricane but you aren’t sure whether you have an ACV, replacement cost or agreed value policy on your boat. Again, you will need to find out how much your claim payment will be based on the policy you have.

Other factors that may impact your claim include deductible information as well as whether you took the necessary actions to protect your boat.

If a rock hits my windshield, is that covered?2018-07-17T00:39:43+00:00

Yes, if you have comprehensive coverage on your auto insurance policy, the damage would be covered, less any applicable deductible.

If I rent a car and have an accident will my auto insurance provide coverage?2018-07-17T00:39:12+00:00

There are many variables that may determine whether you would have coverage. If you are renting a car for business use, you have no coverage under your personal N.C. auto insurance policy and should purchase the insurance the rental company extends.

However, if you rent a car and have comprehensive/collision coverage on any car under your N.C. auto insurance policy, there is coverage afforded less any applicable deductibles.

Keep in mind that “loss of use” is not covered while the rental car is being repaired and the rental company may hold you responsible for the time it is in the shop being repaired since the rental company can’t rent that car for the time period it is being repaired.

If there is a sewer or water back up in my home, will my N.C. homeowners insurance cover the damages?2018-07-17T00:38:34+00:00

No, damages resulting from water and sewer back up are excluded under the standard N.C. homeowners insurance policy, unless you purchase an endorsement that adds the coverage back.

If a neighbor’s tree falls on my house and causes damage, will my homeowners insurance cover it or will their insurance cover it?2018-07-17T00:38:01+00:00

If a covered peril caused the tree to fall causing damage to your home, your homeowners insurance will pay for your damages. However, if that particular tree or limb were dead/diseased and as a result falls, your neighbor would be responsible.

If I add custom parts to my car or motorcycle, will those custom parts be covered?2018-07-17T00:37:22+00:00

Custom parts on cars and motorcycles are excluded under the typical motorcycle or auto insurance policy unless you purchase an endorsement specifically for custom parts coverage. Make sure if you have custom parts on your car and/or motorcycle you discuss it with your local independent insurance agent to ensure you have the proper coverage.

What is the difference between term life insurance and permanent life insurance?2018-07-17T00:36:48+00:00

Term life insurance is life insurance specified for a period of time and does not have a cash value feature, but can later transfer into a permanent policy if you choose.

Permanent life insurance is insurance designed to provide life insurance for the duration of your life, although some may not last as long as you need them, and they contain a cash value feature.
Feel free to contact our office to discuss what type of life insurance is right for you at this point in your life. We will be glad to discuss the variables and features to find the right fit for your needs.

Can my teen driver be added to my umbrella insurance policy?2018-07-17T00:36:09+00:00

Not only can your teen driver be added, but also it is recommended. Teen drivers cause more accidents than experienced drivers exposing your assets to a greater risk.

Do I need an umbrella policy?2018-07-17T00:35:30+00:00

Everyone needs an umbrella! An umbrella insurance policy is sometimes referred to as an “excess” insurance policy that is protection above and beyond your current liability protection under policies such as homeowners, boat, home, and motorcycle. An umbrella policy only kicks in once the primary limits of liability of that policy have been exhausted.

If you are found responsible for causing an auto accident that involves many people who are seriously injured, your limits of liability may be exhausted quite quickly, which leaves all of your assets up for grabs to pay the balance. Typically umbrella policies start at 1 million dollars and can go up to 10 million.

What happens if I cause an auto accident and somebody gets injured in another car?2018-07-17T00:34:52+00:00

If you are found negligent in the operation of your car and cause injury to someone else in another car, your liability insurance coverage under your auto insurance policy will provide protection for you to cover his or her injury, up to your limits of liability. Having the minimum limits of liability required in N.C. is typically not enough and is recommended you have at least $250,000 per person and $500,000 per occurrence along with a liability umbrella. Call our office to inquire whether you have enough limits of liability under your N.C. auto insurance policy.

Why is my Social Security # required in order to get an insurance quote?2018-07-17T00:34:13+00:00

Insurance companies ask for your social security # to do credit checks because they have determined that most people with good credit scores are also more responsible drivers and typically take better care of their property than those people with lower credit scores.

What is the difference between Replacement Cost, Actual Cash Value and Agreed Value relative to boat insurance?2018-07-17T00:33:39+00:00

This is a very common question because boat owners want to make sure if something happens to their boat they have the right type of boat insurance to cover their loss.

Replacement cost means that at the time of an insurance settlement, the claim payout is the current cost to replace your boat with one that is of the same like, kind, and quality.

Actual cash value (ACV) means that that at the time of an insurance settlement, the claim payout is replacement cost less any depreciation.

Agreed value boat insurance policy means that if your boat is deemed a total loss, the claim payout is the specified agreed value of your boat and may need to be periodically reevaluated. Agreed value is best type of a boat insurance policy to ensure if a loss happens, you get the entire value of your boat, agreed upon by you.

Can I have more than one person named as the beneficiary on my life insurance policy?2018-07-17T00:32:31+00:00

A life insurance policy can typically have one named beneficiary or multiple names with the coverage split into specific percentages or amounts.

How much life insurance do I need?2018-07-17T00:31:46+00:00

The amount of life insurance needed varies person to person so it is recommended you contact your local N.C. life insurance agent to discuss your particular/specific needs. We will be glad to assist you in determining what type of and how much life insurance you may need, at a rate you can afford.

What happens if someone gets hurt at my home?2018-07-17T00:31:05+00:00

If someone gets injured while at your home, your N.C. homeowners insurance policy will provide medical payments coverage for any incurred medical bills he/she incurs, regardless of fault. However, if you are found negligent, your liability coverage, under your homeowners insurance policy, would protect you.

How can I get the best home and auto insurance rates?2018-07-17T00:27:26+00:00

The best way to save money is to contact your N.C. local independent insurance agent, because they work for you and not the insurance company, to get the best insurance rates through the marketplace. You can save up to 20% by bundling both your homeowners and auto insurance under the same insurance company.

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