When Your Teenager Starts to Drive
My teenager just received a license to drive. Do I need to add him/her to my policy now? Will it increase my premium?
Your teenager does not need to be a listed driver until he/she receives their permanent license. There is no charge until then as long as you are in the front seat with them.
Taking Insurance to College – Homeowners and Personal Auto Policies
My son/daughter is leaving home to attend college this fall. Will my auto and homeowners insurance policies cover him /her while at college?
Your child will be covered while away in college and will be covered to drive other people's cars, unless you excluded them from your policy.
Electronic Equipment – Personal Auto Policy
Do I need special coverage for my GPS, DVD player and other electronic equipment in my vehicle?
Electronic equipment permanently attached to your vehicle is covered, subject to the deductible. Unattached equipment is covered by your homeowner's policy
Taking Insurance on Vacation – Homeowners and Personal Auto Policies
I am taking my family on vacation this summer. We may travel to a foreign country. Will I need any special insurance to cover my personal property and liability?
Your Texas policy covers the U.S. (including Hawaii), and Canada. You need to buy coverage if you are driving anywhere else.
Rental Car Coverage – Personal Auto Policy
Should I purchase the Loss Damage Waiver offered by the rental agent when I rent a vehicle?
Your auto policy will extend to any vehicle you rent in the U.S. and Canada with the same deductibles you have on your insured vehicles.
Replacement Cost Coverage - Homeowners and Dwelling Policies
why do I have to carry so much insurance on my home?
The amount of coverage is based on the cost to rebuild your home and replace your contents without depreciation, to make sure you get back to where you were before the loss.
Premium – Homeowners Policy
Why is my neighbor's homeowners insurance premium less than mine?
Homeowner's premiums are calculated based on quality of construction, location, occupancy, and loss history. Most companies also give credits for multiple policies and burglar alarms.
Personal Injury Protection and Medical Payments – Personal Auto Policy
If I have health insurance, why do I need Personal Injury Protection or Medical Payments coverage?
If you have good health insurance, you probably don't need it. The State of Texas requires that you reject it, in writing. It's not a good buy.
Credit Rating – Homeowners and Personal Auto Policies
Why does my credit rating affect how much my insurance costs?
It depends on the company. All the carriers with deep discounts do credit scores. Some carriers, with higher premiums may not, or their credit score requirements are lower.
Insurance to Value – Homeowners and Dwelling Policies
How much insurance do I need on my home?
The rule of thumb for our area is about $100 per square foot. The area is obtained from the county tax appraisal records.
Commercial Lines
Insurance to Value – Commercial Property Policies
How much insurance do I need on my building?
Enough to replace it. Any Texas policy requires the building to be insured at least 80% of replacement cost, or the claim may not be paid 100%.
Personal Autos on the BAP – Business Auto Policy
My employees use their personal vehicles for business purposes. Is it OK to add their vehicles to the company business auto policy?
No. Texas law requires that the insurance policy be in the name on the auto title.
PIP, MP and UM – Business Auto Policy
What is the difference between Personal Injury Protection and Medical Payments coverage? If I have workers' compensation insurance, why do I need either? How about Uninsured Motorists coverage?
Personal injury protection pays 80% of lost wages and medical bills up to the limit of coverage. Medical payments cover on medical care and no lost wages. 25% of Harris County drivers carry no liability insurance and cause a much higher percentage of accidents, including hit and run.
Experience Modifiers - Workers' Compensation
What is an "experience modifier," how is it computed and how does it affect my premium?
Should I purchase the Loss Damage Waiver offered by the rental agent when I rent a vehicle while on company business, and instruct my employees to do the same?
An experience modifier is the percentage of claims paid relative to the premium. If the modifier is less than $1.00, your premium is credited. That means, for example that a modifier of $.90 would give a 10% discount. If the modifier is greater than $1.00, the premium is increased. For example, a modifier of $1.10 would result in a 10% surcharge. The modifiers are recalculated annually.
Coinsurance – Commercial Property
Why do I have to carry so much insurance on my property?
Texas law, in order to assume equitable settlements, requires that you insure for at least 80% of replacement cost, and the actuarial tables are based on that assumption to make sure the risk is fairly distributed among the customers.
Certificates of Insurance –
Describes the futility of depending on certificates to do anything other than verify the existence of a policy on the date of issuance.
A certificate of insurance is an assurance that the insured has valid insurance and that the person Requesting it will receive 10 to 30 days notice if the policy is cancelled for any reason.