FAQs

1. What is the difference between liability and full coverage?

2. What information do I need to get an automobile insurance quote?

3. What is Guaranteed Replacement cost for my Home Insurance?

4. Is Flood covered under my homeowners insurance?

5. Do I need sewer & drain If I don’t have a finished basement?

6. Do I need to have towing if I have AAA?

7. Do I need insurance on my home based business?

8. When I buy a car should I purchase GAP coverage from the dealership?


1. What is the difference between liability and full coverage?

Liability Insurance: The Insurance Information Institute (III) defines liability insurance as the legal obligation a policyholder has in case of a car accident. Liability insurance protects the policyholder and pays, up to the policy limit amount, monetary compensation to the driver/passenger(s) injured in the other vehicle or for other property damaged (including autos directly and indirectly involved in a car accident). Liability insurance is categorized as bodily injury and property damage coverage. Each state determines if the liability coverage of auto insurance is “compulsory” (mandatory) or optional.

Full Coverage: "Full coverage" is a common term that people use to describe how much auto insurance coverage they have. Though there is no such thing as "full coverage," it often implies that the policy has more than just Liability coverage. More than Liability coverage, “Full Coverage,” might mean that your automobile insurance covers you for Comprehensive, Collision, Towing, Rental Reimbursement and Gap coverage. Plus each insurance company might have additional add on coverages above and beyond this list.

At The Agent Insurance Services we like to help our clients make the right decisions for their auto insurance coverage. We always recommend Liability Limits of at least 100,000 - 300,000 or higher. We believe that if you have anything lower than that and you are sued for an accident there is a good possibility that you will be responsible for paying anything not covered by your insurance.

2. What information do I need to get an automobile insurance quote?

To get an accurate auto insurance quote at The Agent Insurance Services we will need the following:

  1. Full Name
  2. DOB
  3. SS#
  4. DL#
  5. Address
  6. ID or VIN # to your vehicle

3. What is Guaranteed Replacement cost for my Home Insurance?

When purchasing a home insurance policy, it’s important to buy enough coverage to protect yourself against financial loss if a catastrophe would occur. Sixty-four percent of homes are undervalued, and potentially underinsured, by an average of 19 percent, according to Marshall & Swift/Boeckh, a California-based company that calculates residential building cost data. In the event of a total loss, you may be responsible for making up the difference out of pocket, an amount that can easily mean tens of thousands of dollars.

That’s why Erie Insurance and our agency The Agent Insurance Services offers Guaranteed Replacement Cost. That one extra word — guaranteed — means you’ll be covered if your home is damaged or destroyed from a fire, tornado or other covered loss. You could rebuild your home after a major loss without worrying about depreciation, policy limits or insurance construction costs once you’ve repaired or replaced the damaged property.

The coverage is available with Erie Insurance’s home insurance policies. For more information, contact us and we will show you the difference.

4. Is Flood covered under my homeowners insurance?

NO, Unfortunately, your homeowners insurance policy won’t cover the damage to your home or property; only flood insurance will cover the losses.

Did you know that your home has a greater chance of being damaged by a flood than a fire? It’s true, according to FloodSmart.gov.

Our Agency partners with American Bankers Insurance Company to offer our Policyholders flood coverage. American Bankers is one of the top flood insurance carriers in the country and has consistently received an excellent rating for financial strength from A.M. Best credit rating organization.

It’s a good idea to start the process as soon as you can, because most flood insurance policies have at least a 30-day waiting period before they take effect.

Premium costs for residential properties vary depending on coverage, which is available for your building, contents or both. We can help determine the flood risk level for your home and property and advise you on the appropriate level of insurance protection.

5. Do I need sewer & drain If I don’t have a finished basement?

YES! According to our local restoration companies, the average sewer & drain backup can cost up to $7,500 just for CLEAN UP. That is getting the water out, sanitizing and testing to make sure there is not mold growth. That doesn’t take into consideration your furnace, hot water tank, or your washer and dryer which those can add up to a total of $5,000.00. We recommend to our clients at LEAST 10,000 in sewer and drain and it can go up from there depending on what you have in your basement.

6. Do I need to have towing if I have AAA?

First I would ask you to check your AAA membership, some buyers will purchase the basic plan which will only cover up to so many tows per year. If you have the basic membership then I would say it is a smart move to add towing to your insurance policy. The cost of towing or roadside service on some insurance policies can be as a low as $4.00 per year.

7. Do I need insurance on my home based business?

YES, The rise of the personal computer and the large number of jobs lost during the recession drove many Americans to set up shop in their homes. Today, the U.S. Small Business Administration reports that home-based businesses now account for half of all businesses in the United States.

Yet many new home-based business owners forget to buy one very important thing: insurance.

A 2004 study commissioned by the Independent Insurance Agents & Brokers of America revealed that nearly 60 percent of home-based business owners didn’t have enough insurance to protect their businesses.

“When people are working out of their house, they think ‘Well, I have homeowners coverage,” says Terry McConnell, vice president, Personal Lines Underwriting. “But the homeowners policy hardly ever covers the business.”

See more on my Blog here!

8. When I buy a car should I purchase GAP coverage from the dealership?

NO, most good insurance companies like Erie Insurance will offer GAP coverage at a very low cost when you purchase a new car. At The Agent Insurance Services we always like to help our clients with good purchasing decisions for their insurance and GAP coverage is one of them.