Home & Auto Insurance

Automotive Insurance

Did you know that your vehicle, driving record, and credit are only a few things driving your insurance premiums?

Determining Your Auto Insurance Needs

Everything from your vehicle's make, model and safety features to your driving record and annual mileage may have an influence on your auto insurance premium. And you may be eligible for credits or discounts on your premium.

Auto Insurance Coverage Options

Auto insurance policies can provide basic protection for damage to your car, injuries and normal liability, as well as extra protection for emergencies, repairs and personal property.

Your policy is comprised of the options you select, so how much you'll pay depends on:

• What you buy. Coverages are priced individually, so how much you'll pay depends on how many coverages and at what limits you select. You can also consider an umbrella insurance policy that extends your coverage.
• How much each will cover. Deductibles lower the premium price by shifting part of the loss payment to you. For example, if you had a $500 deductible, you would need to pay the first $500 of the covered loss. Higher deductibles generally lower your premium, but increase the amount you must pay if a loss occurs.

A basic auto insurance policy provides protection to you and others, including:

• Liability Coverage for damages incurred by others if you cause an accident.
• Around-the-Clock Claims Support for helping you through incidents ranging from minor fender benders to natural disasters.

Most people also choose some or all of these additional protections:

• Physical Damage Protection for repairing your car after an accident.
• Medical Coverage for assistance if you or your passengers are injured.
• Comprehensive Coverage pays for damage done to your car in some way other than a collision, such as if it were stolen or vandalized.
• Uninsured Motorist Protection for damages you are legally entitled to recover from a driver without liability insurance or a hit-and-run driver.
• Underinsured Motorist Protection for damages you are legally entitled to recover that exceed the at fault driver's insurance limits.
• Rental Reimbursement. Covers the expense of a rental car while your vehicle is being repaired.
• Towing and Labor. Provides towing service for a disabled vehicle.

Remember that sometimes "you get what you pay for". The cheapest option might not provide you or your family with the best protection. When you do have a claim, something that goes wrong, that's a terrible time to discover that you don't have adequate protection.

The minimum amount of insurance required by most states is not much. If you buy just the minimum coverage required by law, you are leaving your assets at considerable risk. Your car, obviously, but if you are at fault in an accident that causes serious injuries, it could also be your home, your property, or even your pension.

Homeowners Insurance

Some background information

Homeowners insurance is basically designed to bring your home and possessions back to the same condition they were in before a loss occurred. There are several different types of homeowners policies offered by a wide variety of insurance companies and not all coverages are the same or are available in all states. You should speak directly with an independent agent or Travelers representative about your specific coverage needs.

While reading through the information below, you should keep in mind a couple definitions: (a) Exclusions are situations where your policy does not provide coverage; and (b) Liability is something for which you are legally responsible.

Dwelling (referred to as Coverage A in the policy)

Imagine your house on moving day...empty, waiting to be filled. This is the part referred to as Coverage A: your physical home (rooms, fireplaces, tile floors, carpeting, etc.) and the structures attached to it, such as an attached garage.

The amount of coverage assigned to your dwelling should reflect the amount it would cost to completely repair or rebuild your home should it suffer a covered loss. Often this is determined by your home's purchase price plus inflation. However, if it's been a while since you last updated your policy coverage or if you are not sure that your dwelling is adequately covered, you can either check with your agent or Travelers representative.

Other structures (Coverage B)

Not all structures that exist on your property are actually attached to your house. Therefore, Coverage B offers insurance protection for other structures such as a detached garage, gazebo, or storage shed.

Personal property (Coverage C)

Your personal possessions such as furniture, clothing and appliances are covered. Certain types of possessions are excluded or have limited coverage.

Loss of use (Coverage D)

The coverage is also called Additional Living Expense. Essentially, this pays for your housing and other living expenses (like meals and laundry) if a major loss makes your house uninhabitable and you have to move out temporarily while it's being repaired.

Covered perils

A homeowners insurance policy provides protection from the following perils:

• fire or lightning
• windstorm or hail
• explosion
• aircraft
• vehicles
• riot or civil commotion
• smoke
• theft
• vandalism/malicious mischief
• glass breakage
• volcanic eruption.

Some policies also provide coverage for:

• falling objects
• weight of ice, snow or sleet
• freezing of plumbing
• accidental plumbing discharge
• rupture of steam or hot water heating system, air conditioning systems, or water heaters
• damage from artificially generated electricity.

Exclusions

A homeowners policy does not provide coverage for the following perils:

• loss due to flood, or water that backs up through sewers
• loss to building by earthquake, aftershocks and mud slides
• loss by enforcement law or ordinance regulating construction, repair or demolition, or zoning
• loss due to power interruption when the interruption takes place off the residence property
• loss due to neglect of the insured to save and preserve property following a loss
• war and nuclear perils
• intentional loss.

Limits of liability

For basic homeowners policies, a specific minimum amount of coverage is required for each of the major property coverages, based on the primary amount of insurance selected.

• Coverage A (Dwelling) = Primary limit
• Coverage B (Other Structures) = 10% of Coverage A limit
• Coverage C (Personal Property) = 50% of Coverage A limit
• Coverage D (Loss of use) = 20% of Coverage A limit.

For example, if your home is insured for $100,000 under Coverage A:

• Coverage B liability limit is $10,000
• Coverage C is $50,000
• Coverage D is $20,000.

Deductibles

With a homeowners policy, a deductible applies to the property portion of the policy. A deductible is the amount you would have to pay out of your own pocket before the insurance coverage kicks in. Typical deductibles are $100, $250, $500 or higher and some policies have several deductibles. The higher the deductible you select, the lower your premium payment is.

Optional Coverages

There are a number of optional coverages (also called endorsements) which enhance your basic homeowners policy either by adding or removing certain coverages. Some of the more common add-on coverages include:

• Broadened coverage for contents: provides "all-risk" protection for your possessions. This means that your personal property is covered in most situations, regardless of the cause of loss.
• Contents replacement cost coverage: after a loss, you would be paid based on the replacement cost...with no deduction for depreciation...subject to your policy limits and deductible. Special limits apply to certain items such as jewelry, watches and furs.
• Water back up of sewers or drains: you're covered for a specific dollar amount if water backs up through a sewer or drain, or overflows from a sump pump.

Personal property exclusions and limits of coverage

Certain classes of property are specifically excluded from coverage because of the nature of what they are or because they are generally covered by other types of policies:

• Animals, birds or fish
• motorized vehicles or aircraft, including equipment and accessories
• radios, CB radios, tape decks, etc., while in or on a motor vehicle
• articles separately described and specifically insured in any other insurance
• property of boarders (renters insurance is available and should be considered by boarders).
• aircraft or aircraft parts
• property in an apartment held for rental by the insured
• property rented to others off the residential premises.

Certain classes of property have specialized limits of coverage:

• money or related property, coins and precious metals other than tableware
• securities, manuscripts, and other valuable property
• water craft, including trailers and equipment
• trailers
• grave markers
• loss by theft of jewelry, watches, furs and semi-precious stones
• loss by theft of firearms
• loss by theft of silverware, goldware or pewterware
• property on the residence premises used for business purposes
• property away from residence premises used for business purposes.

Important tips you should know

C.L.U.E.
C.L.U.E. (Comprehensive Loss Underwriting Exchange) is a claims history database created by ChoicePoint that enables insurance companies to access consumer claims information when they are underwriting or rating an insurance policy. It typically contains up to five years of personal auto or personal property claims history.

You can order a C.L.U.E. report on your property from:

ChoicePoint Consumer Disclosure
P.O. Box 105108
Atlanta, Georgia 30348-5108

Or call toll free 1 (866) 527-2600

Insurance Score
An Credit Based Insurance Score (CBIS) is derived from information on your credit report. It is a number that measures likelihood of having an insurance claim—not a measure of credit worthiness. Insurers use CBIS along with a number of other factors, including driving records, claims history, and the type of home or vehicle owned, to evaluate new and renewal auto and homeowner insurance policies.

Equifax, Experian and TransUnion are the credit bureaus that provide credit information. With the use of credit information and a statistical model, these bureaus are able to develop an insurance score, which is provided to the requesting insurance company.

Some of the key elements that are used to develop a credit based insurance score include:

• Number and type of credit accounts (i.e. installment, revolving)
• Past payment performance – number of late payments and duration of late payments (i.e. 30 days late, 60 days late, etc.)
• Stability – length of credit history
• Adverse public records (i.e. civil judgements, tax liens, bankruptcies)
• Type of credit – number of new accounts (credit cards, finance company installments, etc.)
• Balances (i.e. credit cards with balances exceeding 50% of limit)
• Recent inquiries as a result of applying for new credit

Note: Generally, habitual signs of credit management problems adversely affect insurance scores more than an occasional late payment. It is important to remember that a credit based insurance score is a combination of dozens of factors and not limited to just those listed above.