Frequently Asked Questions

My bank told me I am not in a flood zone. Do I still need flood insurance?

Talk about urban legends…this is a big one! Every property is in a flood zone, but some are more likely to flood than others. Lenders require flood insurance if your home is located in a higher flood hazard area (A and V zones), but not if it’s in a lower flood hazard area (B, C, and X zones). Just because the lender doesn’t require flood coverage doesn’t mean your house can’t flood. According to National Flood Insurance Program statistics, more than 25 percent of all floods occur in lower flood hazard areas. Even minor flooding can cause significant damage, and it can be covered only by purchasing a separate flood policy.

If I increase my deductible, my premium will be lower, so why wouldn’t I want to save money by increasing my deductible?

Your deductible is the part of the loss that you are responsible for. If your loss is less than your deductible, your insurance pays nothing. Deciding on deductible amounts is different for each person, but you should consider what your potential financial condition may be after a loss occurs. The higher the deductible amount or percentage, the heavier the financial burden is when you have a loss.

Is the deductible deducted from my claim or do I have to pay it first?

The deductible amount is your responsibility and is subtracted from the amount of the claim. For example: if a fire causes $10,000 in damage and your deductible is $1,000, the company will send you a check for $9,000.

Didn’t my title company inform my insurance company that my property was sold?

Only you have the right to request cancellation of your insurance policy. In order to cancel the policy, you should notify your agent, in writing, to process the cancellation.

Didn’t my mortgage company notify my insurance company that I paid off my mortgage?

Changes in coverage or lenders can be made only by you, since you are the insured. Any type of change that needs to be made should be done in writing to your agent. Your agent will notify us so that we can make those changes on your behalf.

I’m afraid that if I file a claim, I’ll be canceled!

Insurance policies are there to pay claims when they happen. It’s not typical for a company to cancel a policy just because you file a claim. Most claims are not preventable, and insurance companies understand that. However, when claims happen because the person insured doesn’t properly maintain the property, or the same type of claim happens over and over, then companies take a closer look and will often not offer a renewal for that policy. Insurance companies pool every policyholder’s money together to pay claims. When someone has claims as discussed above and does not try to keep the same type of claim from happening again, it ultimately drives everyone’s premiums up. In order to keep rates fairly level, it’s in the best interest of all the other policyholders for some policies to be canceled.