Homeowner’s insurance policy types are differentiated by policy forms. Here are a few forms available:
- HO-5 and HO-3 forms protect the entire structure and contents of a home, plus any detached structures.
- A condominium policy is written on an HO-6 form, which insures studs in the structure and the contents of the home.
- There is also a contents-only policy for a renter called an HO-4.
Policy forms have their own standard inclusions and exclusions, plus the ability to add or endorse coverage. The form type purchased, along with coverage limits and perils insured against, are all directly correlated to the cost of the policy. Essentially, the more coverage you have, the higher the premium will be.
When it comes to saving money, policy reviews often allow the agent to discover additional discounts that are not applied to the policy. A policy review will also evaluate whether your home is covered for the correct amount. Many times, homes are over-covered and therefore unnecessarily cost more for the coverage.
It’s also important to know that policies increase in coverage year-after-year automatically. Another option is to consider combining your auto and home policies with the same company. The discounts from combining can be 10-30% when applied to both the auto and the home policies. You can also sometimes cut your insurance rate in half by having the independent agent shop around with multiple carriers.
If it’s still not affordable, there are other types of policies available called fire policies that cover 10-13 basic perils, such as fire, wind, smoke, and several other major causes of damage. They are usually not as expensive as traditional homeowners policies that cover many more perils.
While you would ideally have a more comprehensive policy, this is an option if you need a more affordable alternative to cover general catastrophes.
For more information about different types of insurance forms or how to save money on your insurance, reach out to The Churchill Agency today via 855.531.8777 or insurance@thechurchillagency.com.
Rental Car Insurance
When renting a car, there are many factors to consider, including whether you should purchase insurance through the rental car company.
Before deciding to purchase the rental car company’s coverage, first confirm your personal policy will extend to the rental as not all companies offer that protection. For an alternative, some credit card companies offer rental car coverage when you use their card for the purchase.
There are two types of coverage available on a standard insurance policy. Both types are only available if you carry comprehensive and collision coverage on your personal auto policy.
- Rental Reimbursement (also called Extended Transportation) pays for a rental car or other forms of transportation expenses incurred if your car is damaged in a covered accident. This coverage is subject to your deductible and has a set limit. For instance, it may only cover $30 per day (with a maximum of $900) or $40 per day (with a maximum of $1200).
- Rental Car coverage is protection that extends from your own insurance policy to a car you are renting (i.e., if you rent a car on vacation).
If you choose to use the coverage offered by the rental company, make sure you confirm what is covered. There are two types of coverage that are the most important to identify, both of which are offered at an additional fee to your rental.
- Damage Waiver waves your responsibility for all (or part) of the cost of damage to, loss or theft of the vehicle.
- Supplemental Liability Protection will insure up to $300,000 for third party liability claims.
It’s important to note that some rental car companies only offer Damage Waiver, which can leave a gap in protection in the event of an accident.
If you don’t carry comprehensive and collision coverage, have high out-of-pocket deductibles, or want to avoid claims on your personal auto policy, you may want to consider purchasing coverage from the rental car company. However, if your personal auto insurance carrier offers the extension of coverage, that is likely to be your best option.
Start by confirming what you currently have under your existing personal policy to make the best decision.
Reach out to The Churchill Agency today if you have questions about your rental car insurance (855.531.8777 or insurance@thechurchillagency.com).