Insurance Question of the Month

Question
I have recently been the victim of identity theft. Is there any coverage under my homeowners policy?

Answer
Homeowners insurance is important; it covers your house and property as well as personal liability.  If you lose your home to a fire, your insurance will pay to rebuild it.  Same with auto insurance, if your auto is damaged your insurance will pay to fix or replace it.  The probability of these events happening are low, but they unfortunately do happen and insurance is there to make things right.

The same is true for Identity Theft.  Fifteen years ago it would be hard to find a friend or family member that had been affected by identity theft.  Unfortunately that is not the case today.  With large companies that hold our personal data such as social security numbers being hacked (broken into through their computer) most people today at least have a friend or co-worker that has a story about Identity Theft.

Insurance companies today are trying to help the people who have been affected by this increasing crime.  Identity Theft coverage is usually an endorsement that can be added on to your home or renters policy.  The coverages usually range from $10,000-$25,000 and cover things such as lost time at work, attorney fees, loan reapplication fees, notary fees and other out of pocket expenses.  Insurance companies may even offer a fraud specialist that is assigned directly to your account that will take you step by step through the process of rebuilding your credit history.

The cost of Identity Theft coverage is minute, but the benefits are necessary.  As the world changes and evolves, make sure your insurance coverages evolve with it.

Question
I have a painting in my home valued at $5500. I have a house fire and the painting is destroyed. What will the insurance company pay me?

Answer
Most standard insurance policies would pay the $5500 for the painting lost in the fire IF you have an appraisal. If you do not have an appraisal it would be left to a third party to estimate the value. As always, ask your McKenzie Price agent if you have any questions on your policy!

Question
What is the MCCA and why does it exist?

Answer
The Michigan Catastrophic Claims Association (MCCA) is a non-profit association established in 1978 by the Michigan Legislature. At present, the MCCA pays for all medical expenses for people with auto-related medical injuries that exceed $375,000 (effective July of 2006). This state mandated law requires the MCCA to assess insurance companies an annual fee on each registered automobile and motorcycle the company insures in Michigan. (taken from www.michagent.org)

Question
I am age 65 and on Medicare. If I get hurt in an automobile related accident, Medicare will cover my medical expenses, true or false?

Answer
False, Medicare and most Medicare supplements, exclude auto related claims.

Question
I keep my motorcycle and jet ski in my garage during the winter. Is it true that my homeowners insurance will cover these in the event of a loss?

Answer
No! Even though these items are in your house there is no coverage. There motorcycle and jet ski policies that would cover them during the summer while in use still cover them in the winter during storage. It is important to keep coverage on these items even when they are not in use.

Question
Your car is parked in your garage for the winter storage. There is no insurance on the car because no one is planning on driving it during the winter. An electrical fire starts in the home causing a total loss of the home, garage and all of the contents including the car. Is the car covered because it was on the home property?

Answer
The car IS NOT covered. Automobiles are excluded on the Homeowners policy. If you are storing an automobile anywhere in the United States it should have comprehensive coverage to take care of such causes of loss as theft, vandalism or fire.

Question
You are on vacation in the US and have rented a car for the week. You end up getting in an accident that is your fault and damaging the car. Are you covered by your current auto policy?

Answer
You are only covered if you are currently carrying full coverage on at least one vehicle on your personal auto policy. If you are carrying liability only there would be no coverage for the physical damage to the rental car, you would need to purchase the insurance offered by the rental company. There is no physical damage coverage under your personal auto without full coverage.

If you have questions on this, or any insurance matters please contact your highly trained staff at McKenzie Price Agency, were service beyond the contract is our priority.