The Insurance Center of Buffalo

The following is a brief overview of frequently asked questions regarding insurance.
Why do I need to buy insurance?

•	Its law,
•	Protects your assets against attachment as a result of a court award,
•	Provides for cost of defense if you are sued,
•	Allows you to purchase such high value items as a car or a home by insuring the collateral on behalf of the financial institution that lent you the money,
•	Provides financial security for your family through systematic payments,
•	Allows you to save for retirement while deferring interest payments to a time when your income is lower, thus reducing tax payments.

What factors affect the insurance premiums?

•	Claims activity including such costs as medical care, auto body repair, construction, legal defense, jury awards, claims adjustment, and insurance fraud.
•	Insurance score- this includes your credit rating
•	Driving record
•	Overhead including rent, utilities, employee salaries, office supplies and equipment
•	Investment income

Helpful Links:

I want to become a more educated insurance consumer. Where can I go to get general and helpful information?
www.iii.org

Auto Insurance

	Liability limits: Liability insurance covers you in the event that you hit another person or vehicle in which you are liable. This coverage is mandated by the state of Minnesota . Minnesota minimum liability is $30,000 per person bodily injury/$60,000 total per accident/$10,000 property damage (30/60/10). Other limits include 50/100/50, 100/300/100, 250/500/250. Our agency writes 30/60/25 and above. Combined single limit: $100,000 CSL means the most the insurance company would pay for bodily injuries or property damage combined is $100,000. Also available as $300,000 and $500,000 Comprehensive coverage: covers your vehicle for fire, theft, collision with an animal, flood, earthquake, hail and other natural perils. Collision Coverage: covers your vehicle for repairs in the event that you collide with another vehicle or object. UM/UIM: Uninsured Motorist and Under Insured Motorist. Protects you for bodily injury damages in the event you are involved in an accident with a driver who has no insurance or not enough insurance. Named Insureds: Anyone listed on your policy. Typically all drivers in a household. Personal injury protection: Provides coverage for injury, death, loss of services and loss of income suffered by you, your covered passenger or covered family members (for those insureds who reside in states with no-fault insurance laws). $20,000 medical - $20,000 no medical How does where I live affect my premium? Where you keep your car directly affects your chances of having an accident or becoming a victim of theft or vandalism. The likelihood of encountering these problems increases in the larger, more densely populated cities, while such incidents remain relatively low in rural areas. Additionally, the time and efficiency of police response and law enforcement, local road and traffic conditions, and the quality of local medical services can affect regional insurance rates. What happens when I loan my car to someone? Is that person covered on my policy? Am I still covered? Yes. Liability and coverage for physical damage always follows your car. Plus, if the driver is insured, his/her policy will also be available to cover the cost of damages and injuries. The same rule applies when you borrow someone else's vehicle. Your own insurance follows you no matter whose car you are driving. But the vehicles owners policy is the key coverage in event of an accident.

	Helpful Links: Is it time to remove collision or comprehensive coverage on your car or snowmobile? Get an idea of what vehicle is worth, compared to other vehicles being listed in your area: www.carsoup.com/changelocation.asp Or, get a "blue book" indication based on its features at www.kbb.com or www.nada.com How safe is my vehicle? www.nhtsa.dot.gov/NCAP I sold a car to a private party and didn't accompany them to the vehicle registration department to get the title into their name. How can I make sure the State of Minnesota knows that the car is no longer mine? www.mndriveinfo.org

Homeowners

Property insurance: covers your structure and possessions, not the land. Personal liability, as its name implies, means you are legally obligated to pay money to another person for actions caused by you, your family, or your property. That liability extends to medical payments to others for injuries.

Types of policies:

•	HO3-HO5- homeowners
•	HO4- renters
•	HO6- condo/townhouse

Who decides the type of insurance, the mortgage company or me?

You do. If you choose to Escrow, the mortgage company collects a set amount from you each month in order to protect their investment. This money is put in escrow and covers your insurance and taxes. However, the policy is still yours and you might select the insurance you feel offers the best coverage and best rates.

What does the homeowners policy cover?

Each coverage is impossible to define as different policies and about 900 insurance companies writing property and casualty insurance. However 80% of homeowners policies are based on a standard form. All homeowners policies cover two important areas, property and casualty.

Property insurance covers your structures and possessions. Personal liability, as the name implies, means your legally obligated to pay another person for actions caused by you.

Helpful Links

Where can I get information on inventorying my personal belongings in case I would have a major homeowners loss?
www.knowyourstuff.org

Renters

•	HO4 policy

How expensive is renters insurance?

Renters insurance is typical available for as little as $100 per year

Does my landlords insurance protect me?

Generally, no. The property owners insurance covers the building itself and seldom a tenants possesions or liability.

Business Insurance

I'm just getting my business started. Do I need insurance immediately?

Yes. Your chance of suffering a loss begins with the first day of business. If you suffer a loss and have no insurance or have improper or insufficient coverage, your insurance agent can do little to help you.

I don’t have any major business assets. Why do I need insurance?

Every business has some property. When you think about it, your business is your property. Just like your home and your car, your business needs to be protected from loss, damage and liability. In addition, your business is your source of income, so you need protection of potential loss of that income.

Does insurance coverage vary for different businesses?

Many small businesses opt for package policies that cover the major property and liability exposures as well as loss of income. A common package policy used by many small businesses is called the Business Owners policy. (BOP)

Generally, BOP policies provide more complete coverage and a lower price than separate policies for each type of insurance needed. We can help you decide which policies are right for your business. You can also purchase additional coverage for perils or conditions otherwise excluded on or by standard policies.