Frequently Asked Questions

There are several things you can do to help lower your costs:

• Insuring your home and autos with the same company almost always results in savings on both policies of 10 to 20 percent. Renters are typically eligible for this discount as well.
• Increasing your deductibles on newer cars can be a good option.
• Consider removing comprehensive and collision coverage from vehicles that are 10 years old or older.
• In most states, taking a defensive driver course can result in a discount.
• Take advantage of “paid in full” options or utilize automatic withdrawal for your premium payments to reduce or eliminate billing fees. 
• Be sure that any optional safety features on your vehicles have the appropriate discounts applied to your policy. Standard safety features for your vehicle model are automatically supplied by your vehicle’s serial number.
• Some auto insurers will give you a multi-vehicle discount even if you only own one car but also drive a company car.

Your agent is the best source for helping you find all the discounts your company offers.

Your insurance company would not likely raise your premium just because you were in an accident in which another person was at fault. However, your premium could increase if that accident was one of several incidents you have had in recent years.

It is a good idea to inform your agent that there will soon be a new driver in your household. However, your son or daughter will not be “rated” on the policy until they obtain an actual driver’s license. We have a lot of good information to share with customers on how to help your son or daughter be a safer driver – contact us and we’d be happy to send it to you!

Driver’s training and obtaining a “B” average in school will help reduce the premium considerably. Also, the premium increase will not be as great if there are more drivers than cars in your household. If you decide to provide a car for a newer driver, consider an older but safe car that can be insured for liability only. Physical damage coverage (comprehensive and collision coverage) can double, and sometimes triple, the insurance costs for young drivers. The vehicle you chose makes a big difference in the insurance cost. The safer the vehicle, and the lower the repair costs, the less expensive the insurance is between two cars with similar values.

The check will most likely be made out to you and the body shop and/or lienholder unless you have made other arrangements with the adjuster.

Most states do not allow an insurance company to force you to use a particular repair facility.   However, an insurance company is not obligated to pay more than the reasonable and customary charges. Some insurance companies have “pre-approved” body shops that provide benefits to you for using them such as a faster approval process for the repairs or additional warranties on the repair work. Ask your agent or adjuster for more information.

No, if you have comprehensive coverage on your vehicle, the deductible is typically waived for the repair of your windshield. This type of payment is more favorable than a windshield replacement on your loss history as well.

No, in this situation you actually collided with the roadway and the collision deductible would apply.

Generally, personal property would not be covered as part of the auto claim. A separate claim would have to be made under your homeowners or renter’s policy, with the deductible from that policy being applied to that portion of the claim.

No, insurance companies do not consider the color of your vehicle when determining premiums. Factors they consider include your age, the kind of vehicle, your claims history and your driving record.

For damages to the other car, yes. Your auto policy’s liability coverage will automatically extend to a trailer you are pulling with your vehicle to cover damage or injury subject to your policy limits.

Strangely enough, most animal collisions are covered by the comprehensive coverage, and so the lower $500 comprehensive deductible would apply. Your adjuster will discuss the specifics of your claim and the policy provisions to determine the proper deductible.

Only if you have the trailer listed on your auto policy with collision coverage.

Your auto policy will not cover you for any loss to the samples. Your homeowners policy may provide some coverage, but the standard limit for business property away from your residence is $250. Contact your agent to discuss what coverage you have now and what options are available to you.

It's unlikely that your insurance company would increase your premium because you were in one accident where the other driver was at fault. However, your premium could increase if that accident was one of several incidents you have had in recent years. Your insurance company might consider the pattern of incidents to be a predictor of future events and decide a higher premium is in order.

If the other party is found to be at fault, the cost of a rental car while your vehicle is being repaired (or while the claim is being settled in a total loss), is part of the damages you would collect from the other driver.

If you are found to be at fault, you will be responsible for the rental car expenses. Most auto policies do not provide this coverage automatically; it is an option that can be purchased. Typical available limits are $20 to $75 per day, and the costs range from approximately $12 to $35 per policy term. The rental car coverage needs to be added on each vehicle you want the coverage to apply to.

Provisions are made in most auto policies to provide some level of automatic coverage for a few days; however it may not be the coverage you want or need. It is best to call your agent as soon as possible to add your new vehicle with the appropriate options and discounts.

If you don't have a current auto policy, you (or whoever the titled owner will be) need to contact an agent and purchase an auto policy prior to taking ownership of the vehicle.

Many commercial general liability insurance premiums are based on exposure. If you are a contractor, your exposure could be the annual payroll for you and your employees. If you are a retail store, your exposure could be your annual gross sales. Insurance carriers base your deposit or estimated commercial general liability premium on a rate that is multiplied by your estimated exposure. At the end of the policy period, the insurance carrier will have a representative contact you for your actual exposure. The carrier will calculate your final premium using the actual payroll, or actual gross sales for the year. This is the audit. It is very important to keep accurate accounting records to be able to justify your exposure. This also helps give you the ability to provide your insurance agent with proper figures to accurately rate your commercial general liability premium.

No. A commercial auto policy does not automatically cover this exposure. However, coverage can be designed to cover it. Please talk to your agent about how to cover these situations.

It covers the use and control of a vehicle which has been temporarily given to another for a charge. The business auto definition, however, includes autos borrowed except those borrowed from employees or partners.

Yes, and do it immediately so coverage implications can be discussed and options explored. Most commercial property policies have a vacancy provision that severely restricts coverage after a building has been vacant for a specified number of days (typically 60 days). Some forms also restrict coverage in connection with buildings that have been unoccupied for a specified number of days. You may be able to add a “vacancy permit endorsement” that suspends some or all of the coverage restrictions that apply to buildings that have been vacant for more than a specified period of time.

Generally not. Discuss with your agent the value and locations of any signs so that proper coverage can be arranged.

The relinquishment by an insurer of the right to collect from another party for damages paid on behalf of the insured. The waiver of subrogation condition in current liability policies is referred to as “transfer of rights of recovery.”

Sometimes referred to as proof of insurance or evidence of insurance. A certificate is a “still photo” or picture of the insured’s insurance at a certain point in time. It reflects only the coverages and limits that were in effect on the day the certificate was issued.

A provision found in many claims-made policies that eliminates coverage for injuries or damage that occurred prior to a specified date even if the claim is first made during the policy period.

Yes, your commercial general liability policy will cover you in this event as long as you are not in the business of selling or distributing alcoholic beverages.

Not all policies are the same, but generally to have coverage for this type of loss you must have an employee dishonesty endorsement on your policy.

The majority of state courts have ruled that emotional distress without physical cause or injury is not covered under a Commercial General Liability policy. Rarely do employment liability cases involve physical injury unless it is assault and battery, in which case the criminal acts exclusion would apply. Unless the injury is one of the specifically identified offenses defined as “Personal Injury” (libel, slander, defamation, false arrest, detention or imprisonment, malicious prosecution, wrongful entry or eviction) your General Liability policy would not provide coverage. The solution to this would be to purchase Employment Practices Liability coverage.

Yes, but with limitations. Contact your agent to discuss the coverage provided by your specific policy.

Yes, because you could be held liable for injuries in your apartment. You would also need the coverage on your personal property if there were a fire that destroyed your apartment or a theft of your property. In some cases the premium can be as low as $100 a year, and many insurance companies let you make monthly payments.

The industry standard policy does not. This coverage needs to be purchased separately. Most companies offer endorsements for $2,500 to $10,000; some offer more. Discuss your needs with your agent so coverage can be tailored to your needs.

Insurance companies do not look favorably on renewing a homeowners policy for an insured who owns a dog that has bitten someone. Injuries can be severe and potentially can result in death. Once a dog has bitten, there is a good chance it could happen again. Depending on the breed, you might not be eligible for standard homeowners insurance with some carriers, even without a history of a dog that bites. Breeds such as Pit Bull, Doberman Pinscher and Rottweiler are some that are frequently listed as not eligible for coverage.

The first step is to review the replacement cost calculation of your home with your agent. Not having the correct coverage amount can result in paying for more coverage than you need; inadequate coverage could costs you thousands of dollars if you have a claim. 

There are several things you can do to lower your costs:

• Insuring your home and autos with the same company almost always results in savings on both policies of 10 to 20 percent. Renters are typically eligible for this discount as well.
• Increasing your deductible can be a good option.
• Take advantage of “paid in full” discounts or utilize automatic withdrawal for your premium payments to reduce or eliminate billing fees. 
• Discounts are often available for alarm systems, deadbolt locks, fire extinguishers, a new roof, or updated wiring.

Your agent is the best source for helping you find all the discounts your insurance company offers.

No, personal property is covered by your homeowners policy anywhere in the world. However, there is a 10% limitation if the property is at another residence (this comes into play frequently for students away from home or those going south for the winter). Contact us about these situations so we can determine proper coverage.

Generally, if the claim is weather-related, no. It depends on the state in which the property is located. However, rates could increase or coverage be non-renewed if there are multiple claims in the last three years or a pattern of losses over time. Had a loss? Contact your agent to discuss the possible premium impact. Additionally, let us know if you have taken extra steps to prevent similar future losses so we can notify your carrier.

Some builders provide insurance until the home is completed. However, if yours does not, we can assist you in obtaining proper coverage. Theft of building materials is excluded by the standard homeowners policy, but some companies can offer a special endorsement. Before you build, discuss your construction plans with your agent so that proper coverage can be obtained.

No, a separate policy covering recreational vehicles must be in place for the four-wheeler to be covered. This is also true of motorcycles, snowmobiles, or any other motorized recreational equipment. Contact us if you have specific questions about what is covered and what is not by your policy.

Homeowners policies typically provide up to $1,000 of coverage for owned watercraft that is kept on your premises. A separate policy covering watercraft must be in place for the boat to be covered beyond the $1,000 limit, while it is being used or if it is kept away from your premises.

Yes, but there are limitations on certain types of property that vary by insurance company. Typically, the limitations apply to money, watercraft, jewelry, guns, furs, business property, trailers, electronics used in vehicles, motorized vehicles (except lawn tractors), and animals.

No, there is no coverage available for seepage, even if a water-backup endorsement is added to your policy.

Yes, generally there would be coverage for the water damage to the interior, but contents may not be covered, depending on the situation. This is a tricky one to answer because of the number of ways water can enter a building; some instances are covered, some are not.

Yes. Your personal property coverage applies anywhere in the world if you are there temporarily. However, remember the policy limits coverage for cash and the theft of unscheduled items such as jewelry.

In most cases, liability coverage on vacant lots not held for resale or investment purposes, in most cases, is covered by your homeowners policy. Farmland is different. Contact your agent to discuss your situation specifically.

Homeowners policies have a limit on the amount of jewelry covered for theft. Typically the limit is $1,000 on jewelry that is not scheduled (specifically insured). If you schedule your valuable jewelry, the company will pay a reasonable replacement cost for each of the items scheduled without a deductible for theft, unless a deductible was chosen to reduce the cost of the insurance.

Homeowners policies defines “business” as “[a] trade, profession or occupation engaged in on a full-time, part-time or occasional basis; or [b] any other activity engaged in for money or other compensation…” This is a fairly broad definition, encompassing many things that people may not think of as businesses. Taking care of the neighbor’s children after school every day, selling homemade crafts, buying collectibles and re-selling them on eBay…all of these things are considered businesses by the homeowners policy.

Homeowners policies as well as condo and renters policies, generally exclude liability claims arising from a business owned or operated by the insured. In addition, these policies contain significant limitations on coverage for business property or other contents “used at any time, in any manner, for any ‘business’ purpose”.

The solution for small home-based business is either an endorsement to the homeowners policy or a business owners policy. If you operate a small business or hobby from your home that might fall in the business definition, please contact your agent. The best time to discuss this is before a loss occurs.

The amount differs for each person. We can help you determine the correct amount of life insurance you should carry by completing a needs analysis. This analysis is based on your income, debt, assets, future estate taxes and priorities.

Yes. Companies in North Dakota or Minnesota with two or more employees can get group health insurance regardless of the health of your individual employees.

Yes. After one year of being smoke-free you can have a urine test done and sign a statement that you no longer smoke.

In North Dakota and Minnesota some companies decline coverage for groups of 50+ employees with significant health issues. However, we may have group plans available through Associations or health insurance purchasing cooperatives that will guarantee group coverage.

Typically there is a 365 day waiting period for pre-existing heath conditions. However, prior continuous coverage without a gap in coverage for more than 63 days, can reduce the 12-month waiting period.

According to Rupp’s Insurance and Risk Management glossary: A claims-made policy is defined as a liability policy that provides coverage for an injury or loss if the claim is first reported or filed during the policy period. Generally, medical malpractice, professional liability and high-hazard product liability policies are written on a claims-made basis.

Directors and Officers (D&O) Liability Coverage insures corporate directors and officers against claims, usually brought by stockholders, alleging loss due to mismanagement. More individuals owning stock and more stringent standards imposed by the courts indicate a growing risk. An outside directorship liability policy is available as supplementary protection to ensure sufficient limits for the exposure created when a company’s director, officer or employee serves in an outside director position at its request.

Your not-for-profit organization in not exempt from rising defense costs and the severe damage awards caused by management liability lawsuits. A non-profit is under intense scrutiny due to widespread press exposure surrounding financial and other scnadlas caused by management decisions. Non-profit management is held to the same high standards of performance as commercial business. Directors & Officers (D&O) insurance is essential for your protection.

Many states have enacted laws relative to non-profit organizations and their directors. Few provide adequate protection. Some of the deficiencies include:

• Protection only applies to volunteer’s personal liability… the organization is still at risk.
• The laws do not limit liability under federal statues, such as those governing civil rights, labor and taxation. Everyone, including the entity, are still at risk and vulnerable.
• Claims can still be filed, requiring legal defense. Defense costs are always expensive and you need experienced counsel to protect you and your employees against allegations of all kinds. Failure to defend your organization promptly could be interpreted as an admission of guilt and prompt prolonged litigation.

Contact us if you have a question not addressed above.