Insurance FAQs AutoHomeUmbrellaBoat/Recreational Vehicle AUTOYou’ve got to have it—now what?You’re required by law to carry auto insurance. So you may not think it makes a difference if you get it from a talking lizard, a comic spokesperson, or a locally owned insurance provider like us.If all insurance is alike, what difference does it make where you get your coverage—just shop around for the best price, right?What’s insurance for, anyway?Keep in mind that you can’t buy insurance after you have an accident. Therefore, you should think carefully about the position you want to be in if you should ever be in an accident. This means you should try to think of your auto insurance as a shield.Then imagine someone else driving their car right into that shield.Will the shield hold? A common question we get at Arrow Insurance Professionals is, “How much insurance do I need?” to which we reply, “How bad is the accident going to be?”Our main job is to make sure your shield can withstand as much damage as possible for the most reasonable cost. That means you won’t have to pay out of pocket for repairs or expenses, but it also means making sure your assets and income are protected in case you’re at fault and there’s a lawsuit.We’ll show you protection options, recommend the right limits and make sure you receive every discount you’re entitled to (such as cars with daytime running lights, or better yet, bundling other types of insurance with the same carrier).And that’s just one reason you should consider talking to a real person at our local office, instead of a telephone salesperson working for a cartoon reptile.When most people think about auto insurance, they think about damage to their car. The truth is, auto insurance covers much more than just your car.Given the sheer amount of cars on the road and the distractions drivers deal with every day, the chances of being involved in a car accident are plentiful.You’re at risk literally every single day you get in your car.It’s important to understand what your coverage options are, not just for your car, but for you, and people who may be injured as a result of your negligence.Having adequate car insurance limits is serious business. If you were ever involved in an accident, and found to be at-fault for someone else’s bodily injuries, you could literally lose everything if you’re not properly insured.What a lot of people don’t realize is, having great coverage doesn’t necessarily mean having higher insurance premiums. Because Arrow Insurance Professionals is independent, we can take your current coverages and compare them with a wide range of over 20+ insurance providers to see who offers you the best deal possible.The best part? We are compensated by the insurance carriers directly, and work on your behalf to properly cover your needs and exposures, and make sure that there are no hidden gaps in your policy.No two insurance contracts are the same, and while two policies side-by-side might look the same, the fine print behind the cover page can vary widely from company to company.Important Auto Insurance CoveragesWhen you browse through your policy, you may see certain coverages and wonder exactly what they are, and why they’re on your policy. Let us clarify a few of the more important ones for you.Bodily Injury Liability — this coverage protects your financial interest in the event you injure another party in an accident. This is the part of your policy that pays that other party for their medical bills and related expenses. Due to the high cost of medical care, it’s dangerous to carry liability limits that are too low. This is something we can help you decide on.Property Damage — suppose you damage someone’s car in an accident, or a guard rail, house, or some other property that belongs to someone else. This is the part of your policy that compensates the other person for that damageCollision Coverage — this is the part of your policy that covers your car in the event you damage the car itself somehow, as a result of an accident with a fixed or moving object like another car, a curb, a house, a guard rail, etc..Comprehensive Coverage — this coverage also protects your car, but in the event that something else damages your car, that is not a fixed, or moving object. For example, theft, a rock that cracks your windshield while you’re driving on the highway, and so on.There are ten causes of loss that this comprehensive coverage pertains to:Missiles or falling objectsFireTheft or larcenyExplosion or earthquakeWindstormHail, water or floodMalicious mischief or vandalismRiot or civil commotionContact with bird or animalsBreakage of glass The most common claims under this coverage are for hail or damage to your windshield. Medical Payments – Coverage for reasonable and necessary medical expenses and funeral services for those who are accidentally injured while in your automobile or while getting into or out of your automobile. Call us to see if this applies in your state.Un-insured & Under-insured Motorist Coverage – Covers YOU and the people in YOUR vehicle in the event you’re in an accident with someone who either A) Is driving without insurance; or B) Doesn’t have adequate insurance to cover the expenses for bodily injuries for you and the people in your vehicle.What is un-insured/under-insured motorist coverage?The first thing that you need to know about this coverage is that your insurance company has to be able to prove that the other driver doesn’t have insurance or enough insurance. What this means is if you are involved in a hit-and-run you can’t file a claim under this coverage unless you can find out who the other party was and if they have insurance. Un-insured/under-insured motorist coverage is great protection for you and the people in your vehicle. With this coverage you can file a claim if the other person doesn’t have any insurance or enough insurance. Generally your un-insured/under-insured motorist limits will match your bodily injury and property damage limits. At least we believe they should.The state minimum limits in Colorado for bodily injury are $25,000 per person and $50,000 per accident and $15,000 for property damage. When you look at those amounts you are probably thinking that’s not enough coverage and you would be correct!What happens when you elect to purchase these (minimum) liability limits is if the other party needs more than $25,000 for medical bills or $15,000 to repair or replace their car, then you have to pay for that out of your own pocket! If you don’t have adequate money to pay for this, the other party can come after savings accounts, retirement accounts and even garnish future wages to pay for the damages!This un-insured/under-insured coverage will help to protect you if you are injured or your vehicle is damaged by someone who has chosen to purchase the state minimum limits or limits below what you have. Many people think of this coverage as wasted money because you are paying money to protect yourself because someone decided to skirt their financial responsibilities. We would tell you that this is not the case and instead this will help to protect you and your family from financial devastation! The reality is, you can’t control the level of insurance other people purchase, but you can control the level of coverage you purchase. When it comes to protecting yourself and your family, I’m guessing you want as much control as possible right?How Do I Lower My Auto Insurance Rates?You always want the best bang for your buck.After all, you’ve worked hard to secure the things you own, so when you insure them, you want the best coverage for your specific needs, and of course, at the best price. You may already have great auto insurance coverage, but it is possible to lower your payment rates.Here are a few tips to lowering your auto insurance:Shop local.One of the best reasons for using an independent insurance provider is their ability to shop multiple carriers. If you go with one of the big box guys, you’ll be limited to only their policies. By shopping with an independent insurance agency, like Arrow Insurance Professionals, you can rest easy knowing one of our trusted, dedicated agents is searching a wide database of insurance carriers and will tailor your auto insurance policy specifically to you to make sure you’re getting the best coverage at the best rate possible.Keep policies updated.Always inform us of changes such as drivers, the number of cars under the policy, the type of vehicle you’re insuring, and even how many miles you drive. For instance, if you move or change jobs and your commute is shorter, or you decide to carpool, your insurance rates can go down based on the decrease in miles put on your vehicle.Report your job/education.Believe it or not, it matters to an insurance company what you do. If you are a police officer, educator, or member of the military, chances are there is a discount available to you. Also, some companies will provide a discount based on your level of education.Bundle your policies.This is a great way to save, not only on your auto insurance, but other policies. If you have an auto policy, make sure to bundle also with your renter’s or homeowner’s insurance.Have good credit.Believe it or not, having a good credit score can help your insurance rates significantly! Arrow Insurance Professionals never gets to see your credit score (and we won’t ask you for it either) but different companies factor it into the rate you pay.Be a good driver.Often, the good or safe driver discount can save you up to 20 percent on your car insurance rates. If you have less than two points on your record, you are considered eligible for this deduction.Here at Arrow Insurance Professionals, we strive to give you the best deal to fit your lifestyle. We not only shop for the best price, we want you to receive the best coverage to suit your individual needs. If you’d like to make adjustments to your auto insurance policy and start saving today, head to this page. And as always, feel free to give us a call directly with any questions! HOMEHome InsuranceHomeowners Insurance provides financial protection against liability and/or property damage to your owner occupied residences; whether primary, secondary or seasonal.A standard home policy consists of 2 Sections: Section I – Property:DwellingB. Other Structures (detached)C. Personal PropertyD. Loss of UseAnd Section II – Liability:E. Personal LiabilityF. Medical Payments (to others)We caution clients that there are no 2 insurance companies issuing the same exact policy with the same coverage forms, edition dates, endorsements and exclusions. For this reason we strongly caution against changing companies on home insurance for a small savings as you will NOT be purchasing the identical policy. You need to be advised what you are gaining by doing so and what coverages you are losing in that exchange of policies.Some questions that should be reviewed when purchasing or exchanging home insurance policies:Does the policy provide ‘guaranteed’ replacement on your dwelling or is it only an extended or similar replacement cost policy. (Most companies did away with ‘guaranteed’ a number of years ago. In Colorado there are only a handful of companies still offering it. Be very careful if changing from a ‘guaranteed’ replacement policy to one that is not.Does the policy include ANY water back-up of sewers and drains? (most companies do NOT include this coverage automatically). If you do have coverage, is it ONLY $1,000 or $5,000? Claims involving water back-up of sewers and drains can be costly. Think if your basement had just three inches of standing water! The ‘limit’ on your policy is for the entire claim, not separate ‘limits’ for dwelling (carpet/padding/walls) and contents and clean-up. It’s one aggregate limit to cover the entire claim from clean-up to replacement.Can you purchase identity theft on your home insurance? This is a fairly new optional coverage endorsement that most companies offer and it’s extremely inexpensive. Example is $20 per year for $15,000. This coverage is NOT an identity theft prevention system, but rather like all insurance, is triggered by a covered loss ‘after’ your identity has been stolen. This coverage is to pay for all the work to repair and restore your credit after it’s been compromised.Does your Personal Liability ‘include’ Personal Injury? Personal injury protects you against claims and lawsuits pertaining to libel, slander, defamation of character, wrongful imprisonment.When it comes to Liability, be advised that many home insurance policies EXCLUDE coverage for ‘off premises’ liability for RVs, Dirt Bikes, Snowmobiles, Golf Carts and 3 and 4 Wheelers. If your state allows, you need to ADD coverage for the liability to your home policy. If your state doesn’t allow you to add liability for these vehicles, you’ll need to have a separate policy for each of them!Rental Properties:Our agency also writes Non-Owner Occupied Properties sometimes referred to as Landlord Policies, Dwelling Fire Policies, or Rentals. We can write them if the home is rented out year round, or even if it’s a weekly or seasonal rental. Some companies don’t like VRBOs and Air BnB so please let us know what your plans are for the property. We are also able to write rental homes for out of state owners, which many companies are not able to do.Renters Insurance:If you do not own a home, renters insurance is extremely inexpensive. We advocate the benefits of a renter policy because sometimes, the multi-policy discount to your auto policy can cover the cost for a small renters insurance policy. It’s possible to not only get the renters insurance for free after applying the discount to your auto insurance, but being given such a big discount that having both policies costs you less than just the auto. Your renter policy will cover your personal belongings AND give you liability if someone decides to sue you.Common coverages and terms you might find in a homeowners insurance policy:Dwelling — this covers the main structure and anything permanently attached like a garage, deck, breezeway, etc..Other Structures — covers things not permanently attached like fencing, driveway, sidewalk, patios, pools, sheds, detached garages, etc.. Usually this coverage limit is simply 10% of whatever your dwelling limit is. If you have a detached garage, you’ll likely want to increase this coverage!Personal Property — covers your personal belongings. Imagine if you could pick your house upside down and shake it. Everything that fell out would be covered under your Personal Property limit. Things like clothing, furniture, electronics, kitchenwares, etc..Loss of Use — covers your living expenses if you lost the use of your home. If your home was ever damaged to the point where it was uninhabitable, this is the part of your policy that will cover the cost of renting a house, apartment, or staying at a hotel room for a few weeks (or months!) until repairs are made.Personal Liability — covers you in the event you are ever held liable for someone else’s bodily injury or property damage, on or off your property (Example: you’re skiing and run into another person on the slopes which requires medical attention.)Medical Payments — covers the cost of medical bills or expenses if someone is injured on your property.Deductible — this is your share of the cost of any one claim that you might suffer. (Example: Junior lights the garage on fire with his chemistry set. The cost to repair the garage is $20,000. If your deductible is $1,000 the insurance policy would pay $19,000 for repairs.)These are just a few of many terms and coverages offered by a homeowners insurance policy. We love discussing the ins-and-outs of your policy so you’re comfortable with the coverages you have so please call us for a review! UMBRELLAWhat Does Umbrella Insurance Cover?What exactly is covered by your umbrella policy depends on how you decide to set it up. In most cases, umbrella insurance protects you from:Injuries you cause in a car accidentInjuries someone suffers on your propertyProperty damage you cause in an accidentProperty damage your pet causesProperty damage a dependent or child causesAttorney fees and other legal costs if you’re suedAs an example, let's say your auto insurance pays $500,000 of medical expenses per accident and your umbrella policy is for $1 million. If you are sued for $900,000, your auto insurance would pay $500,000 of the damages and your umbrella policy would pay the remaining $400,000. Umbrella policies usually provide roughly $1 million to $5 million of additional coverage, and it is possible to get more if you have lots of assets to protect. If I Have No Money or Assets Why Buy Umbrella Liability?Even though you may be just starting out, or have no established assets, don't think that a court will not award benefits to the third party if you are held liable for damages.When you have no assets, you may be obligated to pay off the damages awarded with your future earnings! Anyone with a job who expects to keep the income they earn, could benefit from having an umbrella insurance policy.Do I Need Umbrella Insurance?Today, lawsuits are everywhere. Lawyers are awarding larger amounts of money than ever.Homeowners, auto, and watercraft policies have a limit on liability insurance. Liability insurance is the portion of a homeowners or auto policy that pays for expenses such as an injured person's:medical billsrehabilitative therapy,lost wages due to the negligence of the at fault person.The liability portion of an insurance policy also covers a legal defense representative if the negligence would happen to land the at fault person in the court room. After adding up all of the medical expenses for the injured and the legal fees of the negligent person, the standard liability in one’s homeowners or auto policy is often not enough.Almost every state has financial responsibility laws that will hold drivers accountable for bodily injury and property damage resulting from car accidents and the at fault driver could be sued for the damage.Personal assets from the at fault driver could be seized resulting from a lawsuit. Similar laws are also in force for home and watercraft owners.If an unfortunate accident should happen that is your fault, do you have enough liability insurance from your current policies to cover your costs for negligence? Since no one can predict how much a judge may award the injured person, umbrella insurance is not just for the wealthy anymore, but a needed protection for every policyholder.What Information is Needed to Get Umbrella Insurance or Excess Liability?Typical questions asked by the insurance agent when obtaining an umbrella policy may include:listing all your properties worldwide and who insures themliability limits for the insurance on all your propertiesa list of all vehicles or boats and other recreations vehicles you own, as well as their insurance liability limitswhether you are a member of a board of directors or non-profitBasically, the umbrella liability insurance application is making sure to get a full picture of your assets and how they are insured to make sure that you are getting the right type of coverage and if you do have a claim on the umbrella policy, they already have all the information they need to be able to help you. An assessment of your needs is necessary to properly protect you. Underlying Insurance RequirementsBecause an umbrella policy is designed to be a form of secondary insurance, it will have underlying insurance requirements. This means that you'll have to have a certain amount of auto insurance and homeowners insurance coverage as a condition of being approved for an umbrella policy. The underlying insurance requirements will vary depending on the company you get your umbrella through, but typical coverage includes:Auto insurance bodily injury coverage of $250,000 per person/$500,000 per accidentAuto insurance property damage coverage of $100,000 per accidentHomeowners insurance personal liability coverage of $500,000Additionally, some umbrella insurance providers will require you to have your auto and homeowners insurance with them before they will issue you an umbrella policy. Sometimes having all of your policies with one insurer saves you money, but sometimes it doesn't - switching your homeowners and auto insurance policies to the umbrella provider can potentially make umbrella insurance more expensive than just the umbrella insurance premium itself. If you don't already have the underlying insurance required by an umbrella policy, this will also effectively make your umbrella policy more expensive.What It Doesn't CoverAn umbrella policy is a form of personal insurance, so it won't protect you from lawsuits related to a business you own. This includes babysitting, or "compensated child care" in insurance lingo, by the insured (because that would be considered a business). However, your policy may still cover your children if they babysit part-time on someone else's property.Umbrella insurance also does not cover activities like drag racing or any other high-risk, unnecessary use of your vehicle. Also, it may not cover all types of vehicles, such as recreational motor vehicles, truck tractor trailers, farm tractors or trailers, or more generally, vehicles exceeding a certain weight limit, such as 12,000 pounds. The policy won't cover damage to your own car (your auto insurance should provide for that) or damage to your own property (your homeowners insurance should cover it).If you commit a crime (such as driving under the influence) and are forced to pay restitution, an umbrella policy won't cover it. Likewise, intentional acts, such as sexual harassment, discrimination, intentional bodily injury, intentional property injury and other willful and malicious acts by the insured are not covered. (As the old saying goes, "crime doesn't pay".)Furthermore, an umbrella policy does not provide you with excess health insurance coverage. Most health insurance policies have annual and lifetime limits on what they will pay. If you're concerned that those amounts are too low, you will need to purchase more comprehensive health insurance, because an umbrella policy won't help you.These are just a few examples of things that an umbrella policy generally will not cover. Because there are quite a few exclusions, if you're concerned about being covered for a specific event, ask your insurance agent if an umbrella policy will cover it and, if not, what additional policy you can purchase to protect yourself. BOAT / RECREATIONAL VEHICLEDoes my homeowners or auto insurance cover boat & recreation vehicles?No.You will want to have a specialized insurance policy to provide not only protection for physical damage but just as important, liability (if your boat hits another watercraft, or heaven forbid, a person) protection plus more. You should not rely on your homeowner or auto insurance for coverage, it is simply not an adequate substitute. Also, if you have a loan on your boat or recreational vehicle or store it at a facility you will likely be required to have a specific policy.What’s insurance for, anyway?Keep in mind that you can’t buy insurance after you have an accident. Boat and recreation insurance is very affordable coverage. Let us ensure you have a specialized policy in place in the event you have an accident.You should think of your insurance as a shield.Now, imagine someone attacking that shield. Will it hold? A common question we get at Arrow Insurance Professionals is, “How much insurance do I need?” to which we reply, “How bad is the accident going to be?”Our main job is to make sure your shield can withstand as much damage as possible for the most reasonable cost.That means we’ll show your protection options, recommend the right limits and make sure you receive every discount you’re entitled to.And that’s just one reason you should consider talking to a real person at our local office, instead of a telephone salesperson working for a cartoon reptile.What boat & recreation insurance covers—and what’s optional...The most important thing we cover are the things that are important to you. Typical coverages should include:Personal liabilityPhysical damage to the vehicleMedical expensesAdditional coverages include:Towing (even on water towing)Roadside assistanceEquipment and personal property (fish finders, life jackets, etc.)Total loss replacement or agreed valueMechanical breakdown coverageAnd we provide insurance for the following types of boats and recreational vehicles:RV motorhomesBoats of all typesCampersSnowmobilesJet skisATVsGolf CartsMotorcylesInsurance discounts spoken hereWe also work with carriers who provide multiple insurance discounts, which reduces the cost but gives you the exact same high-quality coverage. Here are just a few ways you may be able to save, including if you ...Own your homeHave safety equipmentInsure multiple vessels/vehiclesBundle other kinds of insuranceAre the original ownerPaid your policy in full each yearHave a clean automobile driving recordHave a safety course certificationBoat accident freeThere are even more ways to save on boat insurance, but the only way to truly determine the best policy for you is to discuss your needs and the amount of protection for income and assets that you will require.Why We're DifferentYou may think you want the cheapest insurance you can find, but realize you may not be getting everything you bargained for…While most insurance products are similar in price and function, insurance providers are very different when it comes to structuring a policy that actually covers you.There’s no such thing as a one-size-fits-all insurance policy when it comes to your recreational vehicles and toys.We’re your neighbors. We protect people and businesses we know and care about, and that means we always look for ways to protect you better, including carefully choosing the insurance companies we represent to be both affordable and responsive.Contact us and let the professionals at our company help you forge the strongest shield possible to help you protect the things you are working hard to build.