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FAQs
What happens if you loan your car to someone else and they
have an accident while driving it? If you lose your engagement
ring, is it covered under your homeowners policy? Following
are answers to frequently asked questions concerning insurance
coverage, like the ones listed above. If you want to be sure
you have enough insurance, and the coverage that's right for
you, call your independent insurance agent. He or she is your
best source for information on how to protect the home you've
made, the car you drive, the business you've built. Because
insurance laws vary throughout the United States, the answers
we've given are general in nature and may not apply in all situations.
The terms and definitions contained in your actual insurance
policy will govern any claims or questions of interpretation.
What kinds of coverage does your company offer?
Mutual Benefit Group offers a full line of personal and commercial property and liability insurance coverages. We write policies for autos, homes, artisan contractors like plumbers and masons, main street businesses, office buildings, and larger manufacturing, retail, and wholesale concerns.
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What do I do if I need to report a claim after normal office hours or on weekends or holidays?
You may call Mutual Benefit's direct reporting line at 1-800-290-6361, 24 hours a day, seven days a week.
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I paid my premium bill when I received a late notice, but my policy was cancelled. Why?
The most common reason for cancelling a policy is nonpayment of premium by the policyholder. If payment is consistently late, Mutual Benefit may not reinstate your policy. Insurance companies rarely cancel policies for other reasons. When they do cancel a policy, it is usually due to a material change in the policyholder's circumstances. Insurance companies are required to have a legitimate reason to cancel a policy, and plenty of notice must always be given to the policyholder.
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What is an insurance premium?
An insurance premium is the periodic payment that a policyholder makes to an insurance company in exchange for insurance coverage. These payments are made at regular intervals, usually once a year or once every six months. Most insurance companies offer premium payment plans that permit the annual or six-month premium amount to be made in three, four, or even nine payments to make it easier to manage large premiums.
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What is a deductible?
The deductible is the part of a loss for which the policyholder is responsible. For example, if you have a $200 deductible on your homeowners policy, you must pay for the first $200 of a loss. The insurance company then pays for the portion of the loss that exceeds the amount of the deductible. In some cases, you may be able to lower your premium payment by choosing a higher deductible.
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What is an endorsement?
An endorsement is an amendment that either changes your insurance policy or adds something to it. It can be written to provide additional coverage for specific items or situations not covered by the basic policy you've purchased. It can also be written to change your policy in some way during the policy's term, for example, to add a new car. It is attached to your policy to modify the terms of the insurance contract.
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How do I know if I'm "insured to value"?
You are "insured to value" if you've purchased enough insurance to cover the total cost of rebuilding your home and replacing all your belongings in the event that you would suffer a "total loss". The cost to replace your home and possessions may be greater than the actual market, or cash, value of your home and possessions.
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How can I be sure I have full coverage?
"Full coverage" is a rather fuzzy phrase. Full coverage for what? Under what circumstances?
Rather than telling your insurance agent that you want "full coverage," you should talk with him or her about the property and possessions that you would like to have covered under an insurance policy, and under what conditions you would like the coverage to be effective. Or approach the question in an entirely different way by asking what is not covered in a particular policy. Your agent can then give you information about policies that may provide you with broader coverage for the dollar, like Mutual Benefit's Promark Homeowners policy. He or she might suggest purchase of additional add-ons, or endorsements, to your basic policy that would cover specific items like jewelry, or insure you for loss situations not covered by a basic policy, like water damage from backup of sewers or drains. Many insurance companies also offer specialty coverages for added protection, like Mutual Benefit's Auto Loan/Lease Guard, which pays for the difference between the depreciated value of your car and what you may still owe on a loan or lease should you be involved in an accident that "totals" your vehicle when it is still fairly new. Your agent may also suggest purchase of a personal or business "umbrella" policy that pays much higher limits for liability situations without adding a great deal of cost to your premium. Your agent can tell you for which types of coverage your home, auto, or business is eligible, and how you can increase your coverage if you are concerned that a basic policy may not be enough.
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What's covered under my homeowners policy?
A basic homeowners policy covers your house, any adjacent structures, such as a garage or shed, and your personal possessions. It protects these things from specific situations that could cause a loss, such as fire, theft, wind damage, or vandalism. Your policy specifically lists the loss situations (referred to as "perils" in the insurance industry) for which you will be covered. In addition to covering your property, such a policy would also pay any living expenses you might incur if you could not stay in your home as the result of covered damage - for example, your policy would pay for hotel expenses.
A basic policy also gives you liability coverage. If you or a member of your household is responsible for insuring someone or damaging someone's possessions, your policy covers it.
Remember, when you buy a homeowners policy, you choose the amount of coverage you will need to replace your home and belongings and cover any possible liability situations. The choices you make put boundaries on what your policy covers and how much the insurance company will pay in the event of a loss. That's why it is important for you to seek the advice of an experienced independent insurance agent who can help you select the type and amount of coverage that's right for you, whether you're renting an apartment, building a new home, or buying a retirement condominium.
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What is the difference between "replacement cost" and "actual cash value"?
"Replacement cost" is what you would have to spend to reconstruct your home or business property using materials of the same kind and quality on the same site where the structure was destroyed, without deducting any amount for depreciation. (Depreciation is the loss in value that occurs as items age, wear out, or become obsolete, and represents the value that has been "used up" prior to the occurrence of a loss.)
"Actual cash value" is replacement cost minus depreciation. In determining the actual cash value of a home or business property, the general condition, state of repair, and "character" of the structure are taken into consideration. The value of land is not included in replacement cost and actual cash value amounts because the land itself is not damaged during most of the loss situations covered by an insurance policy.
In many instances, replacing a home, possessions, business property and/or inventory costs a great deal more than the total of the actual cash value. Often, buildings, contents, or both are insured for their replacement cost so that policyholders can have added peace of mind. If you want this type of security, you should discuss this issue carefully with your insurance agent because changes in material, labor costs, and inflation affect replacement cost. You should review your insurance policy periodically to be certain that your coverage is sufficient. Otherwise, you may discover in the midst of a loss that you do not have enough coverage, or that you did not choose coverage that provides for replacement cost.
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Does my homeowners policy cover every item in my home?
Most items are covered for loss or damage that occurs as the result of the situations defined in the policy. In addition, the amount of coverage is subject to certain limits, which are also specifically listed in your policy. For example, in most instances, if your engagement ring is stolen, the insurance company will reimburse you up to $1,000. However, if you were to lose your ring, it would not be covered unless it was specifically insured, or "scheduled". If your ring is worth more than $1,000 you will likely also want to schedule it. "Scheduling," means that you specifically describe and insure the item for a particular amount. You will most likely pay an additional amount of premium to do so, and in most cases will be covered when any type of loss occurs. Jewelry, furs, silver, fine art, firearms, antiques, coin and stamp collections, and photography equipment are examples of possessions that are often "scheduled".
It's wise to read your policy and to ask your agent to determine under what circumstances your possessions are covered, and it's a good idea to check the limits. You may need to look into increasing the limits for your higher-valued belongings.
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How can I save on my homeowners insurance coverage?
Insurance companies offer a variety of ways to save on your homeowners policy. Mutual Benefit offers credits to homeowners who have not had a loss for three years as well as credits for homes with security systems. Homeowners can also benefit from a companion policy discount when they insure their vehicles with Mutual Benefit. You can also reduce your premium by increasing your deductible to $500 or $1,000, which is common today.
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If my teenager baby-sits, is she covered under the liability portion of my homeowners policy?
Under most standard homeowner policies, she would not be covered. If you are concerned about liability coverage for a youngster who baby-sits, delivers newspapers, or provides mowing or lawn care services, you can purchase a homeowners policy that includes that coverage, or ask about endorsements to add such protection. Mutual Benefit's Promark program and its Promark Advantage endorsement provide coverage for business pursuits of minors (those under age 18). Ask your agent for eligibility and pricing details.
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Do I have to buy separate coverage for a separate garage or shed on my property?
Your basic homeowners policy covers adjacent structures, such as garages, sheds, fences, pools, and bath houses, for a limited amount. It's wise to check with your agent to make sure they are adequately insured.
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What is the difference between comprehensive and collision insurance?
Specifics may vary from state to state. In general, collision insurance covers damage to your automobile that results from actual collision with another object, or by upset. Comprehensive insurance covers damage to your vehicle from such things as theft, glass breakage, or vandalism. Comprehensive coverage is quite often called "other than collision coverage." To cover most insurable auto physical damage situations, you must purchase both comprehensive and collision insurance.
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Should I buy collision insurance if I'm driving an older car?
This is a decision that's your call, depending on the value of the car and the amount of loss you can personally absorb if your older car should be damaged. Talk with your independent insurance agent; he or she has the experience to help you reach a decision that's right for your budget and your peace of mind.
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What is uninsured motorists coverage and underinsured motorists coverage?
In general, uninsured motorists coverage pays for injury to you and any passengers in your car caused by the driver of another car who does not have insurance. Underinsured motorists coverage provides similar protection and applies when the other driver's insurance does not provide sufficient coverage to pay for your claim. This coverage is required to be offered to you in some states.
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What is no-fault insurance?
In general, the premise behind no-fault insurance maintains that automobile accident victims have the right to be directly and promptly reimbursed for medical and hospital expenses and loss of income by their own insurance company, regardless of who was at fault in an accident.
The term is often used to apply only to accidents under a state no-fault law that requires insurance companies to pay policyholders regardless of fault and restricts the ability of accident victims to sue others for their injuries.
A number of questions often arise concerning no-fault coverage, including whether or not a motorist has the right to sue for additional money in the case of a particularly serious injury, and whether or not drivers who live in a state that does not have a no-fault law need to purchase special coverage to travel through a no-fault state. Your insurance agent is your best source for answers to such questions.
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Suppose I loan my car to someone, and they are in an accident. Will my insurance pay?
Insurance professionals often tell clients that when they loan their car, they also loan their insurance coverage. However, that rule of thumb does not apply in all situations. In some states, coverage is given only to drivers that are specifically named on the insurance policy. If you've checked the terms of your policy and you're still not sure how your coverage applies to a particular situation, check with your insurance agent before loaning your vehicle.
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How can I save on my auto insurance coverage?
Insurance carriers offer a variety of ways to save on your auto insurance premium. For example, Mutual Benefit offers a loss-free discount if you have driven for three years without having an accident; we also have discounts if your car is equipped with anti-theft devices or passive restraints like air bags or seatbelts that automatically wrap around passengers when the doors close. There are good student discounts for young drivers who have taken driver's education courses and maintain a specific grade point average. A companion policy discount applies when you also insure your home with Mutual Benefit. Increased deductibles for comprehensive and collision coverage also provide for premium reductions.
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