When purchasing insurance it is important to understand the differences in key provisions of the various insurance contracts. These differences can have a significant impact on how you will be compensated for covered losses. Click any of the items below to learn more about our personal insurance offerings.
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Homeowner’s Insurance Differences
Guaranteed/Extended Replacement Cost: In the event of the total loss of your home, what will you be covered for? Policies differ. Some only pay the coverage limit, while others will provide 25% or 50% above your policy limit. Some contracts guarantee the full replacement of your home. We can help you choose the right coverage for you.
Loss of Use: How will you be reimbursed for alternate living arrangements, if your residence becomes uninhabitable due to a covered loss? Most insurance companies limit the dollar amount, but some limit the length of time they will provide coverage. These limitations can leave you underinsured. There are policies, however, that do not limit loss of use coverage. Talk with us about the options.
Personal Property: If you experience a loss of personal property, do you want to cover the replacement cost or the actual cash value? Replacement cost covers the amount to replace personal property new at today’s prices. Actual cash value accounts for depreciation for wear and tear and reimburses a lesser amount. These are important distinctions to understand when buying or renewing your insurance contract.
Ordinance or Law Coverage: How can changes to building codes affect the cost to repair your home after a loss? Codes governing home construction can change drastically from year to year. These code changes can have significant impact on rebuilding/repair costs. For example: A town’s code may require you to upgrade wiring to meet current standards. Some policies will provide a set dollar amount for this coverage, while others provide unlimited funds.
Ericson Insurance Advisors can also offer you coverage for:
- Flood
- Mold
- Earthquake
- Water-back up of sewer and drains
- Landscaping
- Hurricane/Wind
- Homes or Apartments Rented to others
- Construction or major renovations
- Home office
- Family Security
- Cyber
Condominium/Cooperative Policy Differences
Loss Assessments: Are you sufficiently covered if your condominium/cooperative building suffers a loss? You could be assessed for a portion of the repair. Although most policies provide coverage for these expenses, the limit is often minimal.
Additions & Alterations: What portion of your apartment are you responsible for? It is critical to understand the by-laws or master policy of your condominium or cooperative association when determining your insurance needs. Understanding your responsibilities after a loss, versus those of the association, can be a complicated, but extremely worthwhile exercise.
Ericson Insurance Advisors can also offer you coverage for:
- Flood
- Mold
- Earthquake
- Water-back up of sewer and drains
- Landscaping
- Hurricane/Wind
- Homes or Apartments Rented to others
- Construction or major renovations
- Home office
- Family Security
Automobile Policy Differences
Agreed Value vs. Market Value: What coverage works best for you? After a total loss to your automobile, you will be reimbursed either the market/book value, which is determined after the loss, or an agreed upon value, which is predetermined and typically higher.
Original Manufactured Parts vs. Aftermarket Parts: After an accident, do you want your vehicle repaired with genuine parts from the original manufacturer? If so, you can get a policy guaranteeing that kind of coverage. Remember, most policies do not guarantee the use of original parts.
Choice of Repair Facility: Do you want the freedom to choose who repairs your vehicle? Some insurance companies will dictate that you use their vendors. Talk to us about policies that allow you to make that choice.
Betterment: Do you want your claim to be reduced if brand new parts are used to replace partially worn parts, such as engines, tires, batteries or shocks? This is called “betterment.” Some insurance companies reduce claims for betterment and some do not. Ericson Insurance Advisors can help you navigate this coverage.
We also offer coverage for:
- Exotic cars
- Collector/ Antique Cars
- Motorcycles
Watercraft Policy Differences
Total Loss Settlement: How you are compensated for a total loss to your vessel varies greatly. Most contracts will provide basic coverage that will calculate your settlement using the current book value. Other contracts will pay a pre-determined agreed upon value or may even replace the boat with a new one. Ericson Insurance can help you determine which coverage option is right for you.
Navigational Limitations: A common difference among boat policies are the limitations placed on where and when you can use your boat. Traveling outside of your policy’s navigational limits will most likely jeopardize your coverage. Ericson Insurance will work to understand your needs and tailor your coverage to match them.
Precautionary Measures: Preventing a loss by moving your boat out of harm’s way can be costly. Some policies will pay for this expense while others will provide minimal or no coverage at all. Ericson Insurance will assist in choosing the appropriate coverage limit for you.
Uninsured boaters: Uninsured boaters coverage protects you and your passengers from injuries caused by an uninsured or underinsured watercraft. Some policies provide inadequate coverage while others can provide the protection you will need in the event of a serious accident. Ericson Insurance will help ensure that your policy has the right amount of coverage for you.
Environmental Damage: Damage to a marine habitat through physical contact with your boat or a fuel leak is limited by most policies. Being properly covered for this type of incidence can help you avoid an unexpected expense.
Valuable Articles Policy Difference
Loss Settlement: How do you prefer to be reimbursed for a lost item? Some policies will replace the item at an amount the insurance company deems sufficient, but no more than the scheduled amount. Others guarantee you the scheduled amount, whether you replace it or not.
Appreciation: Scheduled limit or appreciated value? Some insurance companies won’t pay more than the scheduled limit. Others can pay more if the market value has appreciated above the listed amount.
Special attention should be paid to the following categories of property as coverage for them is limited by most homeowners policies:
- Jewelry
- Fine Art
- Collectibles
- Wine
- Silver
- Firearms
Excess Liability/Umbrella Policy Differences
Directors & Officers Liability: How well are you covered if you are sued for bodily injury or property damage resulting from your volunteer service on the board of a not-for-profit organization, including condominium or cooperative associations? Personal umbrella policies vary in their coverage for this exposure. Ericson Insurance Advisors can help you find the right protection.
Defense Reimbursements for Personal Counsel: In the event of a lawsuit, would you prefer to retain your own attorney, in addition to the one assigned by the insurance company? Typically, carriers assign you an attorney, but there are a few policies that will provide coverage for your personal attorney to participate in the defense strategy. Ask us about the details.
Defense Cost Coverage: Do you want the cost of a defense attorney’s fees to be covered above your excess liability limit? Some insurers include defense costs within the policy limits. Attorney’s fees can be a large portion of the cost of a lawsuit and can erode your policy’s financial protection.
We also offer coverage for:
- Reputation injury
- Excess Uninsured/Underinsured driver
- Kidnap, Ransom & Extortion
Employers Practices Liability
Lawsuits related to employment of domestic employees is excluded from the standard homeowners policy. An increase in such lawsuits has spotlighted the importance of Employers Practices Liability Insurance (EPLI). The need is not exclusive to full time domestic employees, but also the likes of the weekly cleaning person or occasional babysitter. Allegations of sexual harassment and wrongful termination are rampant. Ericson Insurance Advisors can advise you about protecting yourself with EPLI that will pay for defense, court costs, and final settlements.
Workers Compensation & Disability: Do you understand the laws for benefits covering domestic staff you employ? Ericson Insurance Advisors can help you navigate the various states’ rules governing these coverages.
Cyber
Your computers, phones, gaming systems and smart home devices are all susceptible to cyber attacks which can have financial consequences such as extortion demands, expenses to restore a stolen identity, and legal fees for lawsuits. Cyber Coverage provides coverage against these types of losses.