Bates Hewett & Floyd Insurance Agency
Helping You Protect what Matters Most!

Lowering Coverage

If you have your eye on expenses, you may be tempted to trim your auto insurance bill by dropping or lowering your coverage – especially if you have not recently had a claim. Dropping some of your coverage – like comprehensive or collision – to the lowest legal level can cut your premium, but it could also put you at serious risk.

Which coverage do I need?
An Automobile Insurance policy is designed to provide you with a level of protection against property, liability and medical costs if you are involved in an accident.

 Property coverage pays for damage to or theft of your car.
 Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
 Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages
and funeral expenses.
 Underinsured Motorists coverage pays for property damage and bodily injury caused by another
driver whose coverage is insufficient to cover damages suffered.

Selecting the correct liability limits is fundamental. 100/300/50 means you are covered for up to $100,000 in bodily injury coverage per person, $300,000 in bodily injury coverage per accident and $50,000 in property damage per accident.
Many states have minimum liability limits of 25/50/10, although some states are higher or lower than this. While it may lower your premium, reducing your liability limits to minimum legal levels and dropping Underinsured Motorists coverage could open you up to substantial risk.
Collision Insurance – know the worth of your car
Your policy will not pay for repairs that exceed the value of your vehicle.

Protecting your well-being
There are many reasons to buy insurance, but the best one is the financial security it provides. You insure yourself to protect your assets. A large accident could easily exceed low insurance limits, putting your house, savings and investments at risk. If you’ve dropped Underinsured Motorist coverage, you could be risking even more. Accidents happen to cautious drivers, too, and having adequate insurance can save you from serious financial burden should one happen to you.
We can help you determine which automobile insurance coverage is needed and what limits to buy.

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What property and perils are excluded from my policy?
Typically coverage does not apply to damage caused by flood, surface water, water which backs up through sewers or drains, earth movement, nuclear damage, war, etc. Personal liability and medical payments do not apply to the operation, ownership, use, etc., of any aircraft, automobile, RV, water craft powered by more than 50 horsepower motor; bodily injury or physical damage caused by an intentional act of the insured.

What happens if I have a fire? How do I collect for my personal property?
Whether your policy pays for the replacement or just the actual cash value of your possessions, you will be paid for personal property that you can show you owned at the time of loss. It is a very good idea to keep an up to date inventory in a secure place. Also, to help you remember what you had, it is helpful to take pictures or video of each room.

If my sump pump fails due to water backing up through the sewers, am I covered?
No, but you can easily add a sewer and backup endorsement to your Homeowners policy to cover the loss.

Is my boat covered?
Theft to watercraft, including furnishings, equipment and outboard motors, is typically excluded if the theft occurs outside your residential premises. To cover your boat and its accessories, you need a separate Boatowners Insurance policy.

I have insured antique items listed on my policy. If I have a total loss, do I receive payment for the full insured value?
We will first confirm the value of the items with one or more independent antique dealers. You should then be paid a dollar value based on the dealer(s) estimate of the worth of the antique items. The best way to insure your antiques? Get appraisals and establish the stated values in the policy.

During a storm, a tree from my neighbor’s yard fell and destroyed my fence. Who pays for the loss? Generally, your own policy should cover the loss. Our agency may be able to recover the amount paid for the loss from the neighbor’s Homeowners Insurance if the loss occurred as a result of your neighbor’s negligence.

If I have water damage from a rainstorm, am I covered?
No, a separate Flood policy is needed to covers losses to your property caused by flooding. As long as your community participates in the National Flood Insurance Program (NFIP), you’re eligible to purchase Flood Insurance. We can assist you in determining if your community participates in the NFIP.

What if I lose power and the food in my freezer spoils?
A basic policy typically does not cover this loss; however, coverage for electrical outages is available for a nominal additional premium.

If my compact disks are stolen from my vehicle, is it covered under my Auto Insurance or my Homeowner’s Insurance policy?
Almost all Auto and Homeowners policies exclude coverage for any losses of disks and other sound transmitting or receiving equipment used in an automobile. For added protection, check with us to determine if coverage can be purchased for the stereo and disks used in your auto.

How can I be sure I have the right coverage?
A complete review of your policy is the only way to determine what property is covered and what perils are insured against. We can help you identify your risks, and explain what’s included in a Homeowners Insurance policy, including the standard limits of coverage on property insured such as money, water craft, theft of jewelry, silverware, and or guns. Contact us today to learn how we can help you insure your home, auto and life.

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