Harco Ins Services - FAQ/Information

Owning a car involves several risks. When a car accident occurs, people may be injured and vehicles (or other property) may be damaged. Damage can also occur through theft, vandalism, or natural disasters. Auto insurance can protect you against these risks. Insurance companies provide auto insurance through Personal Auto Policies (PAPs). A PAP is a contract between you and your Insurance Company, specifying each party’s rights and obligations. Essentially, your Insurance Company promises to provide specific coverage for you in return for your payment of a premium.

All states require you to be financially responsible when driving a car. Depending on your state, you may be required to purchase auto insurance or post a bond. State law (and/or your lender) often requires you to purchase at least a minimum amount of auto insurance. You may find it prudent to purchase greater coverage, however, in order to protect your auto investment, pay for necessary medical expenses, cover your legal liability, and cover any additional losses related to driving. Consider the following: if you cause an accident and the other driver suffers damages over and above your insurance limits, your personal assets and future earnings may be put at risk.

What is a Deductible?

Regarding damage to your own auto, Collision and Comprehensive coverage may each include a deductible. A deductible is basically a risk that is self-insured. It is an amount of money that you are required to pay before your insurance coverage begins to pay for damage. Deductibles can be purchased in any dollar amount, but are generally $100, $250, $500, or $1000.

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 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. Some insurers even factor in the litigation rates in a given area (how many lawsuits are filed, go to trial, out of court settlements, and their amounts).

No. Although not every state requires Auto insurance, Texas does have “financial responsibility” laws mandating all drivers to be able to pay for any damage or injury they might cause. However, Liability insurance is still the best way for you to meet the Texas Financial Responsibility requirements. By law, all states offer UM and UIM policies, including no-fault states. In fact, some states require all motorists to carry this coverage in order to gain protection from inadequate insurance coverage of other drivers.

Besides maintaining a clean driving record, consider investing in special safety and security features for your car. If you've been in an accident or received a moving violation, consider taking a defensive driving course.

Yes. Liability and coverage for Physical Damage (i.e. Comprehensive and Collision) always follow your car. In addition, if the driver of your car is insured, his/her policy will also be available to cover the cost of damages and injuries.

The same rules apply when you borrow someone else's vehicle; your own insurance follows you no matter whose car you're driving. But the vehicle owner's policy is the primary or key coverage in the event of an accident.

Comprehensive insurance, which covers you for fire and theft, generally covers you against damage by flood, earthquake, hail, and other natural perils, except when your car is overturned (which is technically considered a collision). If you have specific concerns about the safety of your vehicle in natural disasters, contact us for information on catastrophic coverage.

Yes, additional coverages can provide you with extra protection. Be sure to ask us about additional coverages to help meet your unique needs. Some of the additional coverages we offer include:

You can save even more on your premium if you qualify for any of our cost-cutting discounts or special rates. Some of the discounts and special rates available are:

• Four Wheel Anti-Lock Brake Systems and Passive Restraint (Air Bags or Motorized Automatic Seat Belts) - discounts offered if your car is equipped with any of these safety features.

• 55 and Retired - offered if you are at least 55 years old and are not “gainfully employed” (do not work more that 20 hours a week or seek such employment).

Most insurance companies are currently using a form of Credit Scoring or obtaining a Clue Report to underwrite insurance policies. This allows the insurance companies to properly place the coverage in the proper program and obtain proper premium for the risk based on prior loss history and/or credit history.

You do. The mortgage company collects a set amount from you each month in order to protect their investment. This money is put in ‘escrow’ and is used to pay your insurance and taxes. However, the policy is still yours and you may select the insurance you feel offers the best coverage at the best rates.

“Exact” coverage is impossible to define because there are different policies and about 900 insurance companies writing Property/Casualty business in the United States. However, 80% of Homeowners policies are based on a standard form. All Homeowners policies cover two important areas: Property and Liability. Property insurance covers your structures and possessions. Personal Liability, as its name implies, means you're 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 caused by you or your family.

Most catastrophes are covered. Flood and earthquake damage, however, are not covered by a standard policy and both perils are more common than many people realize. We can advise you on such normally excluded conditions as floods and earthquakes. Flood insurance is available in our area and should be considered for all Houston community properties…. Call us for more details!

Exclusions listed and defined in your policy might include neglect, intentional loss, “earth movement,” general power failure, and even damage caused by war. If you fail to take care of your property (e.g., a leaky roof), you might not be covered. Obviously, if you intend to lose an object or damage your property, there's no coverage. One other exclusion that can be costly is the Ordinance or Law exclusion. Building codes established by governmental bodies that drive up the cost of rebuilding or repairing after a loss occurs might not be covered by your insurance policy. Thus, if you discover when replacing damaged property that current law demands higher grade or more expensive materials than those you're replacing, the new materials might not be covered fully.

• Homeowner insurance may be written only for the owner occupant of a dwelling or townhouse or duplex units used exclusively for private residential purposes. They may not contain more than two families and with not more than two boarders or roomers per family.

• When a two-family dwelling is occupied by co-owners, each occupying separate and independent premises within the building, it is permissible to issue a Homeowner policy to one of the two co-owner occupants of the dwelling and endorse the policy, using the additional insured endorsement.

• A homeowner policy may be issued in the name of the occupant, and the trust and trustee added as an additional insured, on a property held by a living trust and occupied by a trustee or a beneficiary of the trust.

The coverages provided by the Homeowner Policy forms and endorsements promulgated by the Texas Department of Insurance shall be the minimum coverages that may be provided under homeowners insurance, as set forth in Article 5.35, Texas Insurance Code.

• Covers payment on behalf of the insured all sums, subject to the stipulated limit, which the insured is legally obligated to pay as damages because of bodily injury or property damage arising out of the residence premises or personal activities; including liability for damage to premises and house furnishings used by or in the care, custody or control of the insured caused by fire, explosion and smoke (Fire Legal Liability)

• Medical payments to others cover medical and related expenses, subject to the stipulated limit, arising out of accidents to persons other than the insured and residents of the premises.

• Personal Liability and Medical Payment to Others, specifically excludes coverage for bodily injury to any personal eligible to receive any benefits voluntarily provided or required to be provided by an insured under any worker’s compensation law or occupational disease law.

It’s all your Personal Property and possessions such as furniture, clothing, dishes, books, accessories, cooking items, and includes everything in your tool shed or garage (but does not include the vehicles!). The coverage is for Personal Property and not property that is owned by or used in business.

The insurance limit allowed for Personal Property is 40% of your dwelling limit. But if you have the “replacement cost” endorsement attached, it is required that you carry an increased limit equal to 60% of your dwelling limit. Some insurance companies will allow this limit to be increased to the maximum of the dwelling limit if the Personal Property values are of higher values, such as custom home finishes, interiors, furnishings, etc…

Form HO-101 may be attached to amend Section I, Coverage B (Personal Property) to substitute “Replacement Cost” for “Actual Cash Value” subject to the exclusions and conditions of the endorsement. The endorsement will not apply to residences rented to or leased to others. Attachment of the endorsement is subject to the following conditions and rating rules.

· The special limit of liability for the category of Jewelry, Watches and Furs may be increased from $500 to not more that $5000 by attachment of endorsement HO-110 for an additional premium.

· The special limit for the category of Business Personal Property may be increased from $2,500 to not more than $5000 by attachment of endorsement HO-111 for an additional premium.

In addition, you may qualify for a “premium reduction certificate.” Any law enforcement officer can inspect your home’s doors, locks, windows, garage doors, and security system. You may be eligible for credits ranging from 5% to 15%

Increasing the deductibles over the usual 1% will provide additional premium savings (credits) to the policy. Most insurance companies will offer lower rates for higher deductibles.

This is the homeowner (or farm & ranchowner) policy deductible that applies to only those property damage losses which are caused by, Windstorm, Hurricane or Hail.

This is the homeowner (or farm & ranchowner) policy deductible that applies to all of your property damage losses except those caused by windstorm, hurricane and hail.

Clause 1 can be a higher deductible which would give you a credit for that higher choice, while still being able to take advantage of a lower deductible choice for Clause 2.

Companion Credit is when the same Insurance Company provides both the Homeowner Insurance and the Automobile insurance. A discount in premium can be given to either the Homeowner or the Automobile and some insurance carriers will allow a discount on both policies when written with the same insurance company.

Most insurance companies will allow the endorsement HO-126 Personal Computer Endorsement to be attached to the homeowner policy. This endorsement will only apply as long as it is your personal computer and not your employer. Some insurance companies do not insure Laptop computers.

If you have specific items that you are interested in insuring, please give us a call as we have specialty markets available for antique autos, high value jewelry, furs, art and other valuable personal items.

It’s all your Personal Property and possessions such as furniture, clothing, dishes, books, accessories, cooking items, and includes everything in your tool shed or garage (but does not include the vehicles!). The coverage is for Personal Property, not property that is owned by or used in business.

Renters insurance is typically available for Tenant Occupied Dwellings for as little as $175 - $200 per year or Apartment Dwellers for $300 – $400 per year.

Generally, no. The property owner's insurance covers the building itself and seldom a tenant's possessions or liability. Clarify this with your landlord before signing a lease.

The purpose of the Texas Windstorm Insurance Association (TWIA) is to provide Texas citizens adequate wind and hail coverage when it is not available in the insurance marketplace; and pay insured's claims when losses occur.

The Texas Windstorm Insurance Association is a 'pool' of all property and casualty (P&C) insurance companies authorized to write property coverage in Texas.

TWIA is neither a state organization, nor a for-profit company, and therefore does not seek to increase its market share. We do not actively compete against private insurance providers. TWIA is the provider of "last resort", and our internal policies reflect that fact.

When your home is flooded, it can lead to financial ruin if you don't have the proper insurance. And note this: A basic homeowners policy won't cover your flood damage! You need flood insurance — a special policy backed by the federal government, with cooperation from local communities and private insurance companies.

About 200 insurance companies, possibly including the company that already handles your homeowners or auto insurance, write and service flood insurance policies for the government.

Although flood insurance is relatively inexpensive, most Americans neglect to purchase protection. Only about one-quarter of the homes in areas most vulnerable are insured against flood loss, according to the Federal Insurance Administration (FIA). In those areas, flooding is 26 times more likely to occur than a fire during the course of a typical 30-year mortgage.

Personal umbrella liability insurance is designed to protect you and your family against a catastrophic lawsuit or judgment. It provides expanded coverage and increases the amount of your primary liability protection beyond the basic coverage provided under your homeowners/renters and auto insurance policies.

Don’t make the mistake of assuming that your auto and homeowners insurance coverage provides you with all the liability protection you need. With liability lawsuits becoming more common and often leading to expensive jury awards, you cannot afford to be without protection and risk losing your assets. Protect yourself and your family with a Personal Umbrella Policy*.

Personal Umbrella Policy provides an extra layer of protection above your underlying auto and homeowners insurance coverage, and because the policy is stand-alone, you never have to change your current auto and/or homeowners insurance carrier.

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, if anything, to help you.

Also, many states and local jurisdictions require businesses to have insurance to begin operating. And if you rent space for your business, your landlord probably requires you to obtain adequate 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 from the potential loss of that income.

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

Generally, BOPs provide more complete coverage at a lower price than separate policies for each type of insurance needed. We can help you decide which policy or policies are right for your business. You can also purchase additional coverage for perils or conditions otherwise excluded (e.g., flood protection).

It depends on the policy and its terms. For example, most Health insurance policies cover insured’s' children up to age 18, or up to 22 if the child continues as a full-time student. If you’re over 18 and not a full-time student, you’ll need your own Health insurance policy.

College students face many new risks as they head off to school: theft of personal property, auto accidents due to driving long distances, and risks related to attending and giving parties.

College and university campuses aren’t immune to property crime. A 1995 FBI study reported that there were more than 100,000 property crimes on college nationwide, including burglary, theft, motor vehicle theft, and arson. Thieves took an average of $1,251 of property per offense that same year.

At least one in 10 college students revealed that they had caused an auto accident in the last two years. One in four had a speeding ticket or other moving violation. These and other offenses contribute to higher Auto insurance premiums for students.

AUTO INSURANCE

What is a Deductible?