Insurance policies and the variety of types can be overwhelming. And there’s a lot to take into account when shopping for insurance. We want to make getting an insurance policy as easy and seamless for you as possible. We consider ourselves insurance advisors and partners, working to make sure you understand your policy.

We’ve put together a list of frequently asked questions when considering or applying for insurance. 

Auto Insurance

Do I really need car insurance?

If you have an older car with a very low market value, you may be tempted not to insure it. Most states – Nebraska included –  have laws that require drivers to at least have some liability coverage. This is to protect victims of car accidents to ensure they receive compensation when their losses are caused by negligent drivers. 

What is the difference between collision coverage and comprehensive coverage?

Collision coverage is defined as losses you incur when your vehicle collides with another. The damage to your car is paid from your collision coverage. Comprehensive coverage provides for most other physical damage loss, including theft, or if your car suffers damage from a hail storm. 

Homeowner’s Insurance

What does homeowner’s insurance cover?

Almost anyone who owns or leases property has a need for this type of insurance. The typical homeowner’s policy has two main sections: the first section covers the property of the insured and the second section provides personal liability coverage for the insured. Typically, homeowner’s insurance is required by the lender to obtain a mortgage.

What is the difference between actual cash value and replacement cost?

Losses covered under a homeowner’s policy can be paid one of two ways: either an actual cash value basis or replacement cost basis. When “actual cash value” is used, the property owner is paid the depreciated value of the property. With “replacement cost” coverage, the policy owner is reimbursed with an amount appropriate to replace the item with one of similar type and quality.  

What are the policy limits in the standard homeowner’s policy?

Most homeowner’s insurance policies provide a minimum of $100,000 worth of liability coverage, with higher amounts available. 

Life Insurance

How does mortgage protection term insurance differ from other types of term life insurance?

Mortgage protection insurance is a type of term life insurance that covers your monthly mortgage payments if you die. It’s narrower than a traditional term life insurance policy, which covers a variety of expenses via a tax-free lump sum of cash (known as the death benefit) paid to a loved one after your death.

Can an existing life insurance policy be used to provide for the repayment of an outstanding mortgage loan? 

Yes, the purchase of a new mortgage protection term insurance policy is usually not required by the lender. An existing policy, either term or cash-value life insurance can be used for many purposes, including paying off an outstanding mortgage loan balance in the event of the insured’s death.