Most people don’t know a lot about insurance. We admit to most it isn’t that interesting. However, you have to have it. Insurance is the best and least expensive defense for your assets. Here at T.S. Peck, we make the process of purchasing insurance simple and straightforward.

Below, different policies and coverages are explained briefly to assist you. In addition, here are some pointers to help you save money and time.

 

1. Packages save you money.
Having your auto and home (condo, renters, or homeowners) with the same company can save up to 15% on your insurance bill.

2. Choose lower deductible for Comprehensive.
Comprehensive coverage rates are much lower than collision, so dropping the deductible doesn’t affect the rate much. In addition, claims for comprehensive tend to be low, so the lower deductible allows for more claims to be settled by the company.

3. Insure your home to the amount it would cost to rebuild.
The dwelling amount should reflect the amount it would cost to rebuild your home, not the market value of the home

4. Personal Umbrellas are a good idea.
If you have assets to protect that are greater than the liability limits for your home and auto, a personal umbrella policy is a great idea. These policies provide inexpensive liability coverage above the underlying limits for your home and auto.

5. Renters insurance is another good idea.
If you live in an apartment, it makes sense to have a renters policy. Renter’s insurance is inexpensive and can provide you with a discount on your auto policy. Renter’s policies protect your personal property from theft and damage and provide you with personal liability coverage.

6. Discounts are out there.
Discounts from good student credits to reductions in premium for auto equipment such as airbags and alarm systems are available. Make sure you tell your agent of any item that may qualify. Discounts and credits vary significantly per company.

 
These are just a few pointers that will make your buying experience easier. Please contact us to discuss your insurance needs.
Auto Insurance Basics

An auto policy is broken down into the following coverages: liability, uninsured and underinsured motorist, medical payments, comprehensive, collision, towing, and rental reimbursement.

Liability Coverage

Uninsured and Underinsured coverage provides protection for you and the occupants of your car in the event that you or other occupants of the car are injured by a driver who either has no insurance or not enough insurance. This coverage also can provide protection for damage done to your vehicle. This coverage is required in the state of Vermont.

Medical Payments Coverage

Medical payment coverage provides payment for injuries sustained by you or your passengers in an accident.

Comprehensive and Collision

Comprehensive and collision coverage provide protection for your car. Comprehensive refers to any event other than a collision. Examples would include theft, windshield breakage, or vandalism. Collision provides protection for damage caused to your vehicle in a collision. Both of these coverages are subject to a deductible. The deductible is the amount that the insured must pay in the event of a claim before the insurance company will pay.
Homeowners Insurance Basics
Homeowners policies vary amongst carriers, but all policies are broken down into the following coverages: coverage for the dwelling, other structures, personal property, loss of use, medical payments to others, and personal liability. Homeowners policies can be either named peril policies or all peril policies.
Coverage for the Dwelling, Other Structures, and Personal Property
The dwelling is insured for the amount that it would take to rebuild the property damaged by a covered peril. This is not market value. Other structures provides coverage for garages, barns, etc damaged by a covered peril. Personal property coverage provides protection for your personal property. A percentage of the total personal property covered is also covered away from the premises. All of these coverages are subject to a deductible.
Loss of Use, Medical Payments to Others, and Personal Liability

Loss of use (also called additional living expense) coverage provides living expenses to your family in the event that your home is damaged by a covered peril. This would include hotel expenses. Medical payments to others provides coverage for others who are injured in your home. This does not cover you or your family members. Personal liability provides coverage for unintentional bodily injury or property damage to others by you or anyone living in your home.

Homeowners policies for condominiums and apartments provide coverage similar to a home with some obvious changes. Condo polices do not cover the dwelling, this coverage is provided by the association policy. Condo policies provide coverage for personal property, medical payments to others, personal liability coverage, and optionally, betterment’s and improvements. Renters policies provide coverage for personal property, medical payments to others, and personal liability coverage.

Personal Umbrella
Umbrella policies provide liability coverage over and above the underlying coverages for autos, homes, boats, etc. For families with assets greater than the underlying coverages of their policies, personal umbrellas are an excellent way to protect themselves against liability exposures. In addition, personal umbrella policies will also pay for legal fees, an item excluded from other policies. Umbrella policies can be purchased for values of $1-10 million. All umbrellas are subject to a retainer. A retainer is a form of a deductible in that if the umbrella is required to settle a claim, the retainer must first be paid by the insured.
Boat and Motorcycle Insurance

Boat Insurance is similar to auto insurance in that it provides liability protection and property damage protection to others and physical damage protection for your property. The size of the boat, engine horsepower, type of boat, and the driving record of the operators all affect the pricing of the policy.

Motorcycle insurance is also very similar to auto insurance. A bike policy would include the same components as an auto policy. Rates for motorcycle insurance are determined by the driving record of the operator, the size of the engine, and the type of bike being insured. Discounts are available for driving experience, membership in riding clubs, and safety course participation.

Business Insurance
Business insurance is incredibly varied. At T.S. Peck, we offer commercial property, liability, crime, auto, worker’s compensation, commercial liability umbrellas, and professional liability. Please contact us to discuss your business insurance needs.
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