Frequently Asked Questions
01 I need car insurance. What exactly does "full coverage" mean?
The term full coverage generally means that the insurance policy has both liability coverage and coverage for damage to your vehicle. The term full coverage does not mean that "everything" is covered no matter what happens. Denver Insurance Group can help you select Auto insurance coverage that fits your needs and budget.
02 Am I covered if I drive someone else's vehicle?
Generally speaking, the insurance goes with the car. For example, if you have an accident while driving someone else's car, the owner's insurance would apply toward damages first. Your Auto insurance would generally apply in the event the owner of the vehicle had no Auto insurance or did not have enough Auto insurance to pay the damages.
03 What are the different home insurance deductible options?
For home policies, there are three common types of deductibles:
A flat deductible is a specific or fixed dollar amount; for example, $2,500.
A percent deductible is a percentage that it is based on the home’s dwelling coverage, often called Coverage A. For example, a 1 percent deductible on a home with $150,000 dwelling coverage is $1,500, and the same 1 percent deductible for a home with $300,000 dwelling coverage is $3,000. Keep in mind that as your home’s dwelling coverage increases the calculated amount of your deductible will also increase.
A split deductible means there is a specific deductible that applies to some cause(s) of loss and a different deductible that applies to other causes of loss. For example, a percent deductible may apply to wind and hail losses, and a flat deductible may apply to all other causes of loss. A split deductible can be separate flat deductibles, separate percent deductibles, or a combination of both.
04 How is my premium affected by a higher or lower deductible?
If you select a higher deductible, you will be responsible for paying more out of pocket. However, you’ll typically pay a lower policy premium. The opposite is true if you select a lower deductible option: because the insurer will pay a larger portion of any loss, you’ll typically pay a higher policy premium.
05 What's the difference in market value and replacement cost?
Market value is the amount a buyer would pay for the home and land in its current condition. It is influenced by factors such as proximity to good schools, local crime statistics, and the availability of similar homes.
Replacement cost is the cost to replace the entire home. When you insure your home for its estimated replacement value, your insurer will reimburse you for the cost of rebuilding your home, subject to policy limitations, based on the size and structure of the home that was lost.
Replacement cost is not:
The market value of the home
The home's purchase price
The cost of the land
The outstanding amount of any mortgage