What are the limits in the standard homeowner policy?
[Note: this answer is based on the Insurance Services Office's HO-3 policy.] Coverage A and B cover your dwelling and other structures on the premises on an “all risks” basis up to the policy limits.

You set the limit for Coverage A when you buy the policy. The Coverage B limit covers other structures. The Coverage B limit is usually equal to 10% of the policy limit on Coverage A. Coverage C covers losses to your personal property on a “named perils” basis, which means you’re covered for all the perils specifically named on your policy. The policy limit on Coverage C is equal to max. 50% of the policy limit on Coverage A. Homeowners policies has specific limitations for jewelry, fine arts, furs, silverware, electronic devices, etc., so any high value items of this type should be appraised and insured for appraised value. Scheduled items are not subject to certain policy provisions. Coverage D covers extra expenses you may incur when the residence can’t be used because of an insured loss. The policy limit for Coverage D is equal to 20% of the policy limit on Coverage A. You choose the Coverage E – personal liability – limit when you buy the policy. The limit on Coverage F – medical payments to others – is usually set at $1000 per injured person.

What is the difference between “actual cash value” and “replacement cost”?
Covered losses under a homeowner policy can be paid on either an actual cash value basis or on a replacement cost basis. When “actual cash value” is used, the policyowner is entitled to the depreciated value of the damaged property – so the older the item is, the less money you may receive for it. Under the “replacement cost” coverage, the policyowner is reimbursed the amount it costs to replace the property with something of a similar type and quality at current prices. Most homeowner policies are written on a Replacement Cost form.

Where and when is my personal property covered?
Coverage C, the named perils coverage, applies to all your personal property (except property specifically excluded) anywhere in the world. What is Loss of Use? Lose of Use is the extra expense you incur while staying at a temporary location if your home becomes uninhabitable. Most policies allow a limited dollar amount for this coverage.

What is Personal Liability (Coverage E)?
If a claim is made or a suit is brought against any insured for damages because of bodily injury or property damage caused by an occurrence to which this coverage applies, the policy will:

• Pay up to the limit of liability for the damages for which the insured is legally liable; and
• Provide a defense at the insurance company’s expense by counsel of their choice even if the allegations are groundless, false or fraudulent. The insurance company may investigate and settle any claim or suit that they decide is appropriate. The insurance company’s duty to settle or defend ends when the amount they pay for damages resulting from the occurrence equals the limit of liability

What should be considered when buying auto insurance?
Things you should consider when purchasing automobile insurance include:

You should purchase limits high enough to provide adequate protection for your family and you. If you cause an automobile accident and do not have enough limits of insurance to cover your legal obligations, you could be held personally liable and would have to pay any debt incurred out of your own assets.

Determine which optional coverage you will need to feel protected. For example, do you want the optional physical damage coverage, or is the market value of your car too low to warrant purchasing them?
Decide whether you want an insurance agent to assist you in your decisions or if you wish to buy the insurance directly from a company that sells insurance over the phone or through the mail.

What factors affect the cost of my auto insurance?
The type of car you drive, financial responsibility score, what you use it for, your driving record, where you live, your age, and even your marital status can all affect how much your policy will cost.

What is Personal Injury Protection (PIP) or “No-Fault” insurance and why do I need it?
Personal Injury Protection (PIP) is a mandatory coverage in the State of Colorado, as well as Liability Insurance effective 7/1/99. See notice from Colorado Department of Revenue, Motor Vehicle Division. Colorado Motorist Insurance Identification Programs,

PIP or “No Fault” provides protection that pays you right away regardless of who caused the accident. Basic PIP or No Fault provides up to $50,000 per person per accident in Medical Benefits coverage. By law, these benefits are paid without regard to negligence, liability, or fault of any kind. It pays for hospitalization, doctors fees, rehabilitation, and other necessary medical expenses following an accident.
Optional Additional PIP can be purchased with aggregate limits up to $200,000.
Limits above are State of Colorado Limits, limits may vary by state.
Please contact us for more detailed information on PIP or No Fault.

What is the difference between collision physical damage coverage and comprehensive physical damage coverage?
Collision is defined as losses you incur when your auto collides with another car or object, excluding animals. For example, if you hit a car in a parking lot, damages to your car will be paid under your collision coverage.

Comprehensive covers most other direct physical damage losses including fire, theft and glass breakage. For example, damage to your car from a hailstorm will be covered under comprehensive coverage.

uninhabitable. Most policies allow a limited dollar amount for this coverage.

What is Personal Liability (Coverage E)?
If a claim is made or a suit is brought against any insured for damages because of bodily injury or property damage caused by an occurrence to which this coverage applies, the policy will:

• Pay up to the limit of liability for the damages for which the insured is legally liable; and
• Provide a defense at the insurance company’s expense by counsel of their choice even if the allegations are groundless, false or fraudulent. The insurance company may investigate and settle any claim or suit that they decide is appropriate. The insurance company’s duty to settle or defend ends when the amount they pay for damages resulting from the occurrence equals the limit of liability

What should be considered when buying auto insurance?
Things you should consider when purchasing automobile insurance include:

You should purchase limits high enough to provide adequate protection for your family and you. If you cause an automobile accident and do not have enough limits of insurance to cover your legal obligations, you could be held personally liable and would have to pay any debt incurred out of your own assets.

Determine which optional coverage you will need to feel protected. For example, do you want the optional physical damage coverage, or is the market value of your car too low to warrant purchasing them?
Decide whether you want an insurance agent to assist you in your decisions or if you wish to buy the insurance directly from a company that sells insurance over the phone or through the mail.

What factors affect the cost of my auto insurance?
The type of car you drive, financial responsibility score, what you use it for, your driving record, where you live, your age, and even your marital status can all affect how much your policy will cost.

What is Personal Injury Protection (PIP) or “No-Fault” insurance and why do I need it?
Personal Injury Protection (PIP) is a mandatory coverage in the State of Colorado, as well as Liability Insurance effective 7/1/99. See notice from Colorado Department of Revenue, Motor Vehicle Division. Colorado Motorist Insurance Identification Programs,

PIP or “No Fault” provides protection that pays you right away regardless of who caused the accident. Basic PIP or No Fault provides up to $50,000 per person per accident in Medical Benefits coverage. By law, these benefits are paid without regard to negligence, liability, or fault of any kind. It pays for hospitalization, doctors fees, rehabilitation, and other necessary medical expenses following an accident.
Optional Additional PIP can be purchased with aggregate limits up to $200,000.
Limits above are State of Colorado Limits, limits may vary by state.
Please contact us for more detailed information on PIP or No Fault.

What is the difference between collision physical damage coverage and comprehensive physical damage coverage?
Collision is defined as losses you incur when your auto collides with another car or object, excluding animals. For example, if you hit a car in a parking lot, damages to your car will be paid under your collision coverage.

Comprehensive covers most other direct physical damage losses including fire, theft and glass breakage. For example, damage to your car from a hailstorm will be covered under comprehensive coverage.