1. Do I have rental car coverage under my current policy?

If you have at least one car on your policy with full coverage (comprehensive and collision), the coverage will automatically extend to any rental car in the United States, it’s territories or Canada. However, if you have a comprehensive or collision loss and require a rental car, you must carry transportation expense coverage on your policy in order to be reimbursed.

2. How is my deductible affected if I have wind damage?

There is a change in the marketplace with many of the major carriers. Perhaps it has affected you and you do not yet know it! You have been accustomed to a fixed deductible policy. In other words, if you suffer a loss to your property (home or personal property), your claim is settled by determining the amount of damage, in monetary terms, and your claim is paid in full, less your deductible($250,$500, etc.). Some companies now have a percentage deductible for the wind peril (damage done by windstorm). These hurricanes along the east coast over the past few years have caused insurance carriers to go with deductibles equal to 2% or 5% of your dwelling amount coverage. Be sure you know what your policy states. Should you have wind damage to your home (siding, roof shingles), your policy could require you to pay the first $5,000 if your home is insured for $100,000 (5% of $100,000).

3. If I am traveling, what coverage do I have for my personal belongings?

Personal property owned or used by you is covered under your homeowners insurance for a named peril, anywhere in the world.

4. Do I need to purchase the coverage offered when renting a U-haul/Ryder truck?

Your coverage , including comprehensive and collision, extends to a U-haul/Ryder or similar truck. The only time you would need to purchase coverage is if the vehicle has more than six wheels.

5. What is the difference between whole and term life?

Whole Life is a cash value policy that allows an individual to purchase life insurance and keep a level premium for an individuals entire life. This type of policy can also be borrowed against under certain conditions. Term Life insurance is a policy that allows an individual to purchase low cost life insurance for a period of time, and there is no cash accumulation within the policy. Normally, premiums will go up annually or for the specified period purchased.

Tools are covered only if you have purchased Contractors Tools or Contractors Equipment coverage. If they have been purchased, your policy declarations will show the coverage amount. Certain types of equipment must be "scheduled", meaning that it must show make, model, serial number and value. If you have any doubts, please call. Do not assume that your commercial auto insurance will provide tools coverage just because there are tools inside the vehicle. It will not. Also, your homeowners policy has minimal limits for off-premises business personal property.

7. What do the liability limits on my policy mean?

On Auto:

Liability limits are the maximum amount of coverage that would be paid out to another injured party. The liability limits are written for Bodily Injury (BI) and Property Damage (PD). BI is usually written in two parts, the first part being the per person limit and the second part being the per accident/incident limit (i.e. $300,000, $300,000). PD is the maximum amount that would be paid out for any property damage to someone else’s vehicle or for some other object (i.e. telephone pole, fence). Therefore, if your agent tells you your limits on your auto are $300,000, $300,000, $100,000 or 300,300,100-it’s $300,000 per person, $300,000 per accident and $100,000 for property damage.

On Homeowners:

The liability limit on Homeowners is the maximum that would be paid out for someone injured on or off your property as long as the suit is brought against you in the United States or it’s territories. Coverage includes bodily injury, property damage and personal injury.

8. What is a Certificate of Insurance?

This form is used by your insurance carrier or authorized representative (your agent) which is provided to a certificate holder (requester), and verifies that your business (either sole proprietor, partnership, corporation, limited partnership or LLC) is insured for liability, the limits of liability, and for a specified period of time. Requests for certificates are made by your customers, general contractors or government authorities. Certificate holders are also notified in the event that your liability coverage is canceled, giving them 30 days notice of cancellation for cause or non-renewal. They are given notice, as well, if your policy is canceled for non-payment of premium. There is no charge for providing a certificate.

9. What is a deductible and how does it effect my premium?

A deductible is the amount of money that would be paid out of pocket when filing a claim. The higher your deductible, the lower your premium.

10. What is an additional insured?

Homeowners:

An additional insured is someone that does not live in your home, but has an underlying interest in the property. A mortgagee or additional insured could be a banking institution or mortgage company; however, a separated or former spouse may be listed on the homeowners because they still have a financial interest in the house. Therefore, they are no longer a named insured but considered an additional insured.

Auto:

An additional insured is someone that has an interest in your vehicle. In most cases this would be a banking institution because you have used your vehicle as collateral for a loan.

Business:

A business that is not automatically included as an insured under the policy of another, but for whom the named insured's policy provides a certain degree of protection. An endorsement is typically required to effect additional insured status. The named insured's impetus for providing additional insured status to others may be a desire to protect the other party in order to comply with a contractual agreement requiring the named insured to do so.

11. Why are young driver rates so high?

Rates for young drivers are high because they are inexperienced, involved in a disproportionate number of accidents as compared to more mature drivers and experience more severe accidents (resulting in larger settlements. Many young drivers are not able to learn how to drive because of heavy traffic and aggressive driving on our highways. Typically, male rates are normally double the rates of females due to the speed factor.

12. Why should I have Earthquake Coverage?

A basic homeowner’s policy by itself provides NO Earthquake coverage. Earthquakes can hit anywhere at anytime. The largest earthquake the measured 8.4 on the Richter scale, did not hit California, but Missouri. The quake altered the course of the Mississippi river and rang church bells as far away as Boston. The chances of a quake are higher on the West Coast, however, the East Coast’s foundation is bedrock which is an excellent conductor for an earthquake, so if a large quake hits-we will feel it and unless you carry Earthquake coverage your house will NOT be repaired for the damages it incurs.

13. What do I do if I have a claim over the weekend?

If you have a claim during the weekend or after regular business hours you may call the after hours claim number at 1-800-367-3743, if you are insured with Erie Insurance Group. You will speak to an Erie claims person that will take your information so that your claim may be assigned to an adjuster and be expedited. A copy of the claim will be sent to our office to put in your file. You may also file a claim online at the Erie website. For more details please review of Claim Reporting Guide

14. What does Road Service Cover?

Road Service is an optional coverage. It covers towing, having an emergency flat tire changed or coverage if your vehicle breaks down or won’t start and needs to be towed to the nearest dealership for service. It only covers the first tow and only what Erie deems reasonable which is usually up to $80.00, but coverage is not limited. Erie will reimburse you for all "reasonable" road service charges.

15. If there is hail or wind damage to my siding, how will the loss be settled?

Please contact your agent for an explanation of coverages on your policy.

16. Is there coverage if my sump pump overflows or if water comes into the house for the outside?

Sump pumps, in the absence of a backup power system, will cease to operate if there is a power outage. Also, there are times when the volume of water dumping into the sump well is simply too great for the sump pump to physically handle and the water will overflow the sump well and flow into the basement. Finished basements will obviously sustain more damage than unfinished basements, but there will be damage due to water. If your policy includes Sewer and Drain Back-up coverage, damage done to your dwelling or personal property will be covered for the damage done by the water. If your policy also includes dwelling and personal property replacement cost settlement, then your damage is covered in full, with no deduction for depreciation. Only your deductible applies.

Here’s the tricky part. There are times when underground water rises to levels, and creates such exterior pressure on below-grade basement walls, that water will seep through walls, especially on cinder or concrete block foundations. The water damage done to the interior of the dwelling or personal property, caused by hydrostatic pressure, is never covered, regardless of any endorsement you may have on your policy.

Finally, the situation of surface water run-off is not covered, either. For example, if it rains so hard as to cause water to be unable to be absorbed into the ground and water accumulates and deepens on the surface of the ground (your yard), the damage done by water that flows over the top of your basement window wells damaging the interior basement walls or personal property is not covered. By the same token, water that builds up in the exterior stair well leading to your basement, too much for the drain at the bottom of the stair well to handle, which seeps under the door threshold into your basement causing water damage, is not covered.