Our agency is ready to assist you with any questions or concerns you may have. Sometimes, it may be easier to find your answer online, so we have compiled a list of frequently asked questions from our clients about the insurance industry.
General Questions
- Question: Why is so much personal information required just to get a quote? Answer: To get an accurate quote we need to get all the information the company requires.
- Question: Why are rates so high or seem they are getting higher? Answer: Rates are higher in the coastal areas since fewer companies do business in this area, and there is much more risk.
- Question: Why is my insurance so expensive and my neighbors is not? Answer: There are many different factors that can determine your premium like: carrier, claim history, construction type, roof type, age, opening protection, alarm system.
- Question: Does your agency accept credit card payments? Answer: Our agency does not accept credit card payments, but some of our carriers will accept credit card payments directly.
- Question: What is an independent agency? Answer: We are an insurance agency who represents many different carriers. Unlike captive agencies, like State Farm agencies, we are not bound to only write insurance through that one carrier. This means we can “shop the market” for the best possible premium and coverage of one of the carriers or brokers that we are appointed.
- Question: My insurance company has sent me a letter saying they are non-renewing my insurance policy, so can Anderson Insurance provide insurance for me? Answer: Yes!
Personal Insurance
- Question: What is the difference between AOP (All Other Perils), Wind and Hail, Named Storm/Hurricane, Earthquake deductibles. Answer: AOP deductibles are usually flat amounts ($1,000, $2,500, or $5,000) and will be the amount you pay as the deductible when a covered loss happens. Sometimes, there can be a separate wind & hail, named storm, hurricane, or earthquake deductible that will usually be a percentage (2%, 3%, 5%, or 10%) of the dwelling amount (coverage A). For example, you have a home that has a dwelling value (coverage A) of $300,000, and your house is damaged by a hurricane. If you had a separate 2% hurricane deductible you would pay $6,000 ($300,000 x .02) as your deductible.
- Question: What is the difference between Replacement Cost and Actual Cash Value (ACV)? Answer: Replacement Cost is defined or explained in the policy. Simply stated, it means the cost to replace the property on the same premises with other property of comparable material and quality used for the same purpose. This applies unless the limit of insurance or the cost actually spent to repair or replace the damaged property is less. Actual Cash Value is not as easily defined. Some have interpreted the term to mean “fair market value,” or the cost to replace with new property of like kind and quality, less depreciation.
- Question: What is Extended Replacement Cost? Answer: Pays a certain amount above the replacement cost limit to replace a damaged home in the event that the price of labor and materials has increased due to a major disaster or inflation.
- Question: Why is my house insured for more than the market value? Answer: Even though the housing market has taken a down-turn and market values are down; the amount to replace your home in the event of a disaster has not reduced in most cases.
- Question: Can you take a tax deduction for your insurance premiums? Answer: Yes, you can take a tax deduction on your SC state income tax if the premiums are over a certain % of your adjusted gross income.
- Question: Is there a savings account program available to be used for home repairs or deductibles arising from a catastrophe? Answer: Yes, the state of South Carolina will allow a single family dwelling homeowner to set aside funds, state income tax free, in a separate savings account to help offset their home damage costs in the event of a catastrophic event.
Business Insurance
- Question: What kinds of insurance does my new business need? Answer: Every business is different, so we have commercial agents ready to assess what types of insurance you need. Many insurance companies provide a wide variety of business property and casualty coverages. These can be individually written or tailored to your specific business.
- Question: What is the difference between Replacement Cost and Actual Cash Value (ACV)? Answer: Replacement Cost is defined or explained in the policy. Simply stated, it means the cost to replace the property on the same premises with other property of comparable material and quality used for the same purpose. This applies unless the limit of insurance or the cost actually spent to repair or replace the damaged property is less. Actual Cash Value is not as easily defined. Some have interpreted the term to mean “fair market value,” or the cost to replace with new property of like kind and quality, less depreciation.
Insurance Claim Questions
- Question: How long is the claim process? Answer: Every claim is unique, and there are a lot of different factors that could affect the length of time to resolve your claim.
