Insurance FAQs

These important auto, homeowners, and business insurance questions and answers will help you make an informed decision when you purchase property and casualty insurance.

Auto Insurance FAQs

In Pennsylvania, drivers have the option to purchase full tort or limited tort auto insurance. Full tort permits the policyholder to seek compensation for any injuries sustained in an accident. With limited tort, the insured can only sue a third party if the injury results in a permanent disability. In reality, full tort is more expensive it provides greater protection for the drivers and the passengers.
In Pennsylvania, insureds can provide the level of medical coverage that their policies provide. The policyholder can purchase as little as $5,000 or as much as $1,100,000. Also, the health coverage under the personal auto insurance policy provides rehabilitation coverage as a result of an accident. This coverage may not be covered under policyholder’s health insurance. The insured should check with their health insurance carriers to make sure that expenses as a result of an auto accident are covered.
There are pros and cons of using your own auto insurance when you rent a car.

Pros: You’ll save money on your rental car because you don’t have to purchase the insurance option from the car rental company. Consequently, this can save you over $10 per day on the cost of the rental vehicle. In addition, some credit card companies offer comprehensive and collision coverage when charging the auto rental with their card. If you’re unclear if your credit card covers rental car insurance, then give them a call.

Cons: The disadvantage of using your auto insurance on a rental car is that a claim can go against your policy if you get in an accident with another driver. This accident could raise your auto insurance rates or jeopardize your auto coverage. Because of this, you may want to purchase the liability coverage from the car rental company if you already have a claim or two on your current auto policy. Why jeopardize your coverage when you are driving someone else’s car?

Homeowner Insurance FAQs

The coverage on your homeowner’s policy is based on the reconstruction cost of the dwelling, not on the market value of the property. Besides market value is based upon the current housing sales market and the location of the property. Reconstruction cost is based on the cost of building materials used and the cost of the contractor(s). With this in mind, building construction costs have been rising over the last few years due to increased costs of building materials and labor.
Some carriers may cover the contents of a business under the homeowner’s policy. The contents of a business would have to be under the name of the individual or the owners of the home. The homeowners insurance policy will not cover any business interruption coverage or business or professional liability of a home-based business. These coverages can be provided under a business owner’s policy. Professional liability insurance can be provided under an errors and omissions policy.
In the Northeast, homeowners insurance premiums increased because of several storms over the past several years. As a result, the cost of building materials surged causing the escalation of rebuilding or replacement costs for almost all homes. In any event, listed below are several ways you can reduce the premium on your home insurance.

  • Increase your deductible from $500 to $1,000 or higher
  • Make sure you have a central station fire and burglar alarm installed in your home
  • Place your homeowner’s and auto coverage with the same carrier as most carriers provide a companion discount for writing both coverages.
The homeowners insurance policy provides limited coverage for jewelry, silverware, fine arts, etc. Accordingly, a personal articles floater can furnish all risk coverage for a specified amount of items that can increase in value or be physically damaged. Therefore, the personal articles floater covers the items listed above as well as antiques, cameras, musical instruments and other items.

Business Insurance FAQs

An insurance company conducts a workers comp audit at its discretion. Audits can be done by phone, mail, or in person. They determine if the payroll and class codes quoted at the outset reflect the pay and scope of work during the policy period. Moreover, they ensure that sub-contractors provide their own coverage. Otherwise, their exposure could make you liable.
Insurance companies will audit expired policies to compare the actual payroll and sales with the estimated amount stated on the policy. If the estimated sales and payroll is less an additional premium will be due, if more a refund to the policyholder is due.
In Pennsylvania, employees and independent contractors are entitled to workers compensation benefits as a result of a work-related accident. All independent contractors that you hire should provide you with certificates of insurance for worker’s comp. At audit time, the cost of all independent contractors without certificates of insurance will be added to your payroll. As a result, there will be an additional premium due from the policy-holder.

Contact King-Berk Insurance

For help with personal or business insurance, contact us today.