Auto Insurance

Today’s article on the types of auto insurance may serve as a great tool to learn about the types of car insurance available. There are four main types of auto insurance: liability, uninsured or underinsured motorist, collision and comprehensive and personal injury. It is required by most states to carry certain types of auto insurance.

Liability Insurance

Liability insurance is usually considered a necessity and many states have a minimum legal requirement for liability coverage. This type of insurance helps protect against injury claims and property-damage suits (up to policy limits) brought by other drivers, pedestrians or property owners if you are at fault in an accident. Your liability policy helps pay for injuries suffered by others and the cost of damage to other people’s property, as well as legal costs if necessary, up to a dollar limit.

You can choose a policy with an overall limit for all liabilities or you can select one with separate limits for (1) individuals injured in an accident, (2) all injuries in the same accident, and (3) property damage.

Uninsured or Underinsured Motorist Coverage

A policy with an uninsured motorist provision will pay damages if an uninsured motorist or a hit-and-run driver injures you and/or your passenger(s). you cannot buy more coverage against an uninsured driver than you carry yourself in liability. For example, if you carry $25,000 coverage per person and $50,000 per accident, you can buy only up to those amounts of coverage against an uninsured driver. You can also add protection against inadequate insurance coverage by another driver who injures you or damages your property in an automobile accident. This provision means that your policy will pay for injuries or damage that the other driver's policy does not.

Collision and Comprehensive Coverage

Collision insurance reimburses you for repair costs to your vehicle that were caused by a collision. While this coverage is great, please note that it can also be the most expensive. Comprehensive coverage helps pay for damage due to fire, storm, vandalism, or theft. If a lender holds a lien on your car, the lender will likely require you to pay for both collision and comprehensive insurance. To lower the cost, of this insurance, you may choose a higher deductible. Although this increases your out of pocket expenses in the event of an accident, it may result in lower premiums.

Personal Injury Protection

Residents of states with “no fault” insurance, must buy personal injury protection. Personal injury insurance will pay your medical expenses in the event of a car accident, regardless of who was at fault. When you purchase this protection, you agree not to sue for any suffering or injury you may sustain.

If you would like a quote for auto insurance, click here.

For more information on auto insurance, click here, or call our office today 201-342-3300. One of our associates will be happy to speak to you.

Homeowner's Insurance

Your home is one of your greatest assets, thus, you should make sure it is protected. This is where homeowner’s insurance comes into the picture. Homeowner’s insurance can protect against liabilities—when someone is injured on your property—damage to the structure of your home, and/or personal belongings and theft.

Though policies vary, a typical homeowner’s policy covers damage from certain “perils”. However, you may need to purchase a separate endorsement or policy to cover disasters such as floods, earthquakes, and tornadoes if you live in a high-risk area.

When reimbursing you for a loss, an insurance company will use one of two methods to determine the value of the property: replacement cost and actual cash value. With replacement cost, the insurance company pays you the cost of replacing the damaged property; there is no deduction for depreciation, but there is a maximum dollar amount. With actual cash value, the insurance company pays you an amount equal to the replacement value of damaged property minus a depreciation allowance. Keep in mind that before you are reimbursed, you'll need to satisfy a deductible.

Additionally, the typical homeowner’s policy includes liability protection that provides coverage damages caused by your negligence. Medical expenses to third parties your legal costs to any lawsuit brought against you are also included. Most policies provide a standard amount of liability coverage (usually $100,000) per accident.

If you re looking for a quote on homeowner’s insurance, click here.

For more information about homeowner’s insurance click here, or call us today at 201-342-3300. One of our associates will be happy to speak to you.

Property and Casualty Insurance

Today we at Federal National Funding would like to discuss property and casualty insurance.

For starters, property and casualty is designed to help protect your possessions from theft or destruction and your assets from being used up in the event of a disaster or litigation claims brought against you.

The side that handles property side of a policy insures physical items, such as your home, commercial buildings, vehicles, personal items or business inventory. Some forms of property insurance include homeowner’s insurance, fire insurance, flood or earthquake insurance, and automobile insurance.

Insurance contracts such as these may include “open perils” or a “named perils” clause. An open perils clause covers losses for reasons that are not specifically listed in the policy. Typical exclusions are earthquakes, floods, and acts of terrorism or war. A named perils clause on the other hand, requires the actual causes of the loss to be listed in the policy.

Also called liability insurance, casualty insurance covers losses that you may cause to other individual or business. For example, if you have liability insurance on your car and another party is injured in a collision caused by you, your liability insurance will take care of the other person’s medical and repair costs. In addition, if someone sues you because of harm you may have caused to him or to his possessions, your casualty insurance may cover the cost.

Individuals and businesses alike can purchase property and casualty insurance. Personal policies include homeowner’s insurance, renter’s insurance, and automobile insurance. Meanwhile, commercial policies are written specifically for businesses and other organizations.

If you are interested in protecting your assets with property and casualty insurance and wish to learn more, click here or call our office at 201-342-3300. One of our associates will be happy to speak to you.