I would like to thank one of our agents, Kathy Barton, with suggesting this question for our blog. This is a very specific question and if you have any questions on what exactly your policy covers make sure to call your agent.
Q. I just went grocery shopping and filled my deep freezer and refrigerator right before the big storm hit. My power has been out for 2 days and all the food has spoiled. Will my homeowner’s insurance cover this?
A. Your homeowner insurance may very well cover for spoilage of refrigerated property due to off premises power failure. However, this is usually only by a special add-on that incurs an additional premium. That means that you must request and pay for this specific coverage. It is not part of most standard homeowner policies. When reviewing your policy you should ask your agent what upgrades or optional endorsements, like spoilage coverage, are available through your homeowner insurance company.
Q. Does my auto insurance cover my rental car?
A. There is a strong chance that it does. Most standard and preferred automobile insurance carriers extend coverage to private passenger vehicles that you rent such as while on vacation. You must check with your specific carrier though, as many non-standard carriers and certain standard/preferred carriers do not extend such coverage. Also, remember that most auto carriers do not extend coverage to non-private passenger vehicles such as do it yourself moving trucks. As always if you have specific questions as to your coverage and policy make sure to contact your agent.
Our goal at Harry Levine Insurance is to make insurance a little less confusing and scary.
Q. Why did my rate go up?
A. No, your rate didn’t go up because your insurance company spent too much on office supplies!
Insurance rates are derived by mathematicians (known as actuaries) who look a wide variety of factors. Whether it’s home, automobile, or business, insurance rates are formulated based on trends observed over time regarding how many claims have happened in a geographic area or demographic group. The more premiums an insurance carrier pays out to help people, the more it must take in to make sure it remains able to pay such claims.
Fraud is one of the leading drivers of high premiums in Florida. Whether it’s staged accidents or unscrupulous legal and medical professionals, Florida insurance rates are much higher than they really should be thanks to extreme abuse of the system.
Urban areas often have higher rates than rural areas because more congestion typically leads to higher numbers accidents/incidents. Each company insures different people, so sometimes one company’s rate of claims is higher or lower than another.
When too many policy holders in a company’s “risk pool” have claims, it requires the company to raise rates to keep up with the demand for claim payments.
Have any more questions, let me know!