As soon as you drive a new car off the lot, it loses a good chunk of its value. That’s bad all on its own. Things go from bad to worse, though, if a crash totals it shortly after you bring it home. In that case, your lender will want the full price of the car, but your insurance company only will pay you its used “Blue Book” value.  Gap insurance keeps you from having to worry about this. It pays the difference between what you owe and what you’ll be paid if an accident totals your new car.

Some insurance companies offer a $0 deductible option on glass-only replacement claims. This $0 deductible will remain separate from your comprehensive deductible, giving you the flexibility to set both deductibles to your liking.

A type of permanent life insurance available to people with medical issues that would otherwise make them uninsurable, guaranteed issue life insurance will not pay a death benefit during the first two years the policy is in force (unless the death is accidental) due to the high risk of insuring the person. However, the insurer will return the policy premiums plus interest to the beneficiaries if the insured dies during that period. 

This is a type of universal life insurance that does not build cash value and typically has lower premiums than whole life. 

Identity Coverage would better be thought of as identity recovery. This coverage does not try to prevent identity theft. Insurance companies will pay the fees (i.e. attorney fees and other related fees) associated with getting your identity back. The policy will pay up to the limit that is set on the policy.

Coverage for expenses a property owner must incur, above and beyond the cost to repair the physical damage the structure actually sustained from a flooding event, to comply with mitigation requirements of state or local floodplain management ordinances or laws. Acceptable mitigation measures are elevation, flood-proofing, relocation, demolition, or any combination thereof.

Liability covers you if you accidently damage someone else’s property. As an example, I had a client whose house caught on fire and that fire caused their neighbor’s garage to catch on fire. So, my client became responsible for putting back the garage and everything that was in it. Liability can be tricky coverage because if you do not have enough coverage, you could open yourself up to a lawsuit. Having said that, if you do have enough coverage, once you file a claim, you will more than likely not hear back from the insurance company or the injured party.

Life insurance is a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries when the insured dies. The insurance company promises a death benefit in exchange for premiums paid by the policyholder. 

If something happens to your home so bad that you can no longer stay in your home, Loss of Use is the coverage that will cover the expense of paying for a home or apartment for you to rent while your home is being repaired. Every insurance company has specific guidelines as to how they handle this coverage. Ask your agent to explain to you how the insurance company will handle yours in the event of a loss. Loss of Use is also known as Additional Living Expense.

Under the provisions of the Flood Disaster Protection Act of 1973, individuals, businesses, and others buying, building, or improving property located in identified areas of special flood hazards within participating communities are required to purchase flood insurance as a prerequisite for receiving any type of direct or indirect federal financial assistance (e.g., any loan, grant, guaranty, insurance, payment, subsidy, or disaster assistance) when the building or personal property is the subject of or security for such assistance.