GREENSBORO, N.C. — Christopher Cook from Alliance Insurance Services joined 2WTK to answer your questions.
A TREE FALLS. WHO PAYS?
The answer most of the time is….you. If your tree falls on your house or your neighbor's tree falls on your house, it’s your insurance. The only time this doesn’t hold true is if the tree was documented to be a problem.
Know this, homeowners policies cover house damage due to a fallen tree. If the tree just falls in the yard, it’s your responsibility. And, homeowners policies don’t cover tree removal clean-up.
FLOOD INSURANCE
Your homeowners policies cover nothing flood-related.
Flood and content policies are extra. For example: to cover a $150,000 house in a low-risk area will cost you about $400 a year.
COULD YOU REMEMBER EVERYTHING IN YOUR HOUSE?
No. Which is why it’s smart to do a home inventory. It’s basically a list of the contents of your house.
You can do it with your phone. Video your electronics, art, furniture, appliances. Open cabinets, the garage, closets. Scan model numbers.
Then send that video to your insurance agent, copy it to your email at home and at work so you always have a copy.
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AUTO INSURANCE. DO YOU HAVE WHAT YOU NEED?
NC law requires you to have liability insurance. This pays for damage and injuries to other drivers. Collision coverage is optional. It pays for damages to your car. Without it, all your accident expenses are out of pocket.
Comprehensive coverage is for non-accident issues, like if a tree falls on your car. If you don’t have comprehensive, you also pay for repairs out of pocket.
GAP INSURANCE. This kind of insurance is good when you have a car you are still paying for. For example:
Your car loan is $30,000
Your car is worth only $25,000
If you get into an accident, and your car is totaled, your insurance will only pay you $25,000. If you owe $30,000 on the loan, you’ll still have to pay that $5,000 even though you don’t have a car! GAP insurance covers the difference in the cost and worth.
DID YOU GET MARRIED OR ENGAGED?
You need to get insurance on the ring. Most standard policies only cover about $1,500 in jewelry. Chances are, you would need more than that to replace the ring if something happened to it. For about $5 to $10 a month, you can make sure the ring could be replaced if it was lost, stolen, etc.