Frequently asked questions about automobile insurance.
What does a basic auto policy cover?
- Bodily Injury Liability
- Medical Payments
- Property Damage Liability
- Uninsured and Underinsured Motorist Coverage
What does bodily injury liability cover? How much should I have?
If you injure someone else while driving your car or someone else’s car (with their permission), you will be protected up to the amount you designate for liability coverage. Nebraska requires a minimum of $25,000 for one person ($50,000 for all that are injured in a single accident). However, that’s not nearly enough in the case of a serious accident where you could be sued. You should have enough coverage to protect your home and savings in case you were sued.
What is covered by medical payments?
This covers the treatment of injuries to the driver and passengers of the policyholder’s car.
What is covered by property damage liability?
This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else’s car or property (such as lamp posts, telephone poles, fences, or buildings).
What does “collision” cover?
Collision covers damage to your car when it hits—or is hit by—another vehicle or other object. This coverage pays to fix your vehicle after you pay your deductible (usually between $250 to $1,000). Most cars that are financed or leased are required to have this coverage.
What is “comprehensive” coverage?
If you car is stolen or damaged by something other than a collision (such as by flood, fire, or animals) this coverage pays to fix your vehicle less the deductible you choose (usually $100 to $300). Comprehensive insurance will also reimburse you for a cracked or shattered windshield.
What is uninsured and underinsured motorist coverage?
If you are involved in an accident where the other driver is at fault but has no insurance, your policy will cover your medical expenses and those of your passengers, up to the limit on your policy. Uninsured coverage also applies to a hit-and-run accident.
When an accident occurs with an underinsured driver, your bodily injury coverage will pay any difference between what the other driver’s insurance covers and the coverage you have.
Frequently asked questions about homeowners insurance.
What will most homeowner’s policies cover?
- Your home and, in most cases, detached structures such as a garage, tool shed, or gazebo. Damage caused by floor or earthquake is not covered. Separate policies are available to cover these perils. Normal wear and tear is not covered.
- Personal belongings, such as clothing and furniture. However, expensive items like jewelry, furs, silverware, or works of art are covered up to a maximum of $1,000 to $2,000. Special personal property endorsement can be purchased to insure these items up to their full value.
- Your liability for any lawsuits brought against you for bodily injury or property damage. It also includes no-fault medical coverage if a friend or neighbor is injured in your home.
- Additional living expenses. If you cannot live in your home because of a fire, storm, or another insured disaster, a homeowner’s policy provides coverage.
What levels of coverage are offered?
There are three levels:
- Actual cash value. This pays to replace you home and/or possessions minus a deduction for depreciation.
- Replacement cost. Repairs or replacement of your home or possessions are made without a deduction for depreciation.
- Increased replacement cost. This provides full replacement cost of your dwelling up to 120% of your declared value.
Is there homeowner’s insurance for renters?
Yes. These policies protect your personal possessions.
Can mobile homes be covered by homeowner’s insurance?
Are computers covered in a homeowner’s policy?
A standard policy provides limited coverage for valuable items such as jewelry, furs, and electronics. If you own property that exceeds these limits, supplement your policy with a separate policy or endorsement that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss.
Does my homeowner’s policy provide coverage for my home-based business?
Your homeowner’s insurance may provide limited coverage, but if you have a work-at-home business or regularly telecommute, you should consider additional coverage. You may be able to add an endorsement to your existing policy or you may want a separate policy.