Frequently Asked Questions (FAQ)

Q) I just received my renewal policy or installment billing on my auto policy and I recently made a change to my policy which was not reflected on this billing. Can I wait to make my payment until I receive a corrected billing statement?
A) You must make a payment of at least the minimum due prior to the due date in order to avoid a lapse in your protection. Once your payment is received the recent policy change will be processed and an updated billing will be sent to you.  

Q) Is my home properly insured?
A) The most important component of your homeowners insurance policy is the dwelling limit - Coverage A. This amount should represent the cost to rebuild your home in the event of a total loss. This is not the market value of your home which includes land value. We believe the minimum reconstruction cost in California is approximately $200 per foot. For many homes it is much higher than this. Unfortunately, many companies and agents are willing to accept replacement values far less than this figure as a means to secure your business. Keep in mind that the main factor in the cost of your policy is the Coverage A limit. Most home policies offer an extended replacement cost feature. This extension varies by carrier and provides an additional amount of dwelling coverage ranging from 20% - 100%. The characteristics of your home determine which policy option is more appropriate to properly insure the structure. Keep in mind that even if you own a tract home, if it needs to be rebuilt it will be constructed at custom home prices.  We suggest you discuss the specific characteristics of your home with our experienced service representatives so that an accurate estimate of the replacement cost can be determined. It's also important to review your coverage every few years, especially if you make additions or improvements to the home.

Q) Does my homeowners policy contain special limits on personal property items?
A) All home policies have special limitations for items such as jewelry, furs, silverware, guns, computers, oriental rugs, and fine arts. These limitations vary from carrier to carrier. Please discuss these items with your service representative to determine if supplemental coverage is appropriate for you. Most items can be scheduled for a modest additional premium. 

Q) I own a condo or townhome and the homeowners association covers the outside structure. Do I need condo alterations & improvements coverage for my unit?
A) Almost all association policies no longer cover the inside portion of your condo/townhome. This means that the homeowner is responsible for insuring the kitchen cabinets, appliances, flooring, carpet, tile/hardwood, built-ins, wallpaper, lighting fixtures, etc. Condo alterations coverage can be added for a nominal cost. Please discuss the specifics of your unit with our service team so we can establish an appropriate amount for this exposure. 

Q) How do I document a property loss to my insurance carrier?
A) The easy solution is to take a video or photographic inventory of your home and it's contents. Simply start at one end of the home and continue through every room in the house. Make sure you open cabinet and closet doors along the way and take specific pictures of high-ticket items such as electronics, china, silverware, jewelry, etc. Once your photographic inventory is complete, keep a duplicate copy at your work or with a relative. We would be happy to store a copy for you as well. 

Q) What is a personal umbrella?
A) An umbrella policy provides additional personal liability protection over your auto, home, 1-4 family rental properties, boats, motorhomes and off-road vehicles. Typically these policies have primary liability limits of $250,000 - $500,000. In the event you or a family member are held responsible for a serious accident or injury and the primary limits have been exhausted, the umbrella can step in and provide additional layers of protection. Umbrella limits can be purchased in amounts of $1,000,000 - $10,000,000 and more if necessary. As a rule of thumb, you should have enough personal liability protection to protect your net worth. For a typical family owning two cars and one home, the cost for a $1,000,000 umbrella can start at around $250 a year.

Q) What do I need to do when my child is ready to obtain their driving permit?
A) It is critically important that you contact one of our service representatives prior to your child obtaining their driving permit and/or license. Most of our auto insurance carriers exclude unlicensed children from policy coverage until you have notified our office and signed the appropriate paperwork to add them to the policy. Children can be added free of charge to the policy as long as they are driving with a permit. Once the permit converts to a regular license, premium charges will be added to the policy at that time. Discounts are available for good students (B average or better with required documentation provided) as well as discounts for children away at school (over 100 miles) without a vehicle.

Q) I am on vacation and renting a car. Do I need to purchase insurance from the rental agency?
A) If your personal automobile policy is with Mercury, Safeco or Progressive and you are renting a private passanger vehicle within the United States or Canada, you do not need to purchase personal liability protection from the rental agency. Additionally, if you carry comprehensive and collision coverage on at least one of the vehicles on your policy and we insure all of your cars, your insurance carrier will transfer physical damage protection to the rental car. If you are renting a motorhome you must contact our office prior to the rental and obtain a special endorsement along with premium payment for coverage to apply. Coverage for rental trucks and/or moving vans is never transferred and insurance protection should be secured from the rental agency. 

Q) Does my automobile insurance policy cover me while driving in Mexico?
A) No. You must purchase a mexican insurance policy to properly insure your vehicle while driving into Mexico.

Q) I've just purchased a new or used vehicle. Do you offer extended warranties for mechanical breakdown?
A) Yes. We have an insurance carrier that offers a comprehensive mechanical breakdown policy. These are available for both new and used vehicles. In most cases we can offer you the same warranty sold by the new car dealers at savings of up to 50%. Keep in mind that new car dealers sell extended warranties at inflated prices to make a profit and hide the true cost in your loan payments. If you have recently purchased a warranty from the dealership and are within 60 days of the purchase date, you have the option of canceling the contract and requesting a refund. Please consult with one of our service representatives to see if we can save you money on your mechanical breakdown protection.