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Frequently Asked Questions

Does my Homeowner’s Policy cover a flood?

Homeowners’ insurance typically only covers rain that enters a home from the top or side of a house, not floodwaters that seep in through the bottom.

What is the difference between an “Independent Contractor” and an “Employee”?

Vermont Law states that:

if you control a subcontractor’s daily work; their work is a task that is normally carried out by you or your business; paid by the hour; or uses your tools then that person is considered an employee.

Are the limits on my insurance policies high enough?

State required minimum limits are often not enough. Factors to consider when assessing your limits should include:

  • Your assets – the limits should protect what could be potentially lost in a lawsuit. This is a subjective number and you should determine what value you are comfortable with;
  • Youthful drivers tend to have more accidents;
  • Car values continue to increase;
  • You may be liable for damage to more than one car.

I rent an apartment/house, do I need insurance to cover my belongings?

Your landlord’s insurance does not cover your personal property or liability exposures.

What is an Umbrella Policy and why do I need it?

An Umbrella Policy can be thought of as an excess liability limit that picks up when your underlying limits have been exhausted by a claim. A $1,000,000 Personal Umbrella Policy, for example, will offer an additional $1,000,000 of liability coverage above your homeowners and/or personal auto limits. Thus, the name “Umbrella” as it goes over and above the underlying policies.

Since most homeowners and auto policies have limits on how much coverage they provide, you might want to buy an Umbrella Policy. Generally, your net worth should be a major factor in determining how much liability coverage you carry.

What is the co-insurance clause on my policy?

Many policies include a “co-insurance clause” which determines the percentage of the value you must insure your property at. If you insure your property for less than the stated amount (usually 80%), you will likely not be fully reimbursed for a loss.

How does uninsured motorist coverage affect me?

This coverage pays for the cost to repair your vehicle along with your medical expenses if you are in an accident with someone who has no insurance or whose limits are insufficient.

Can I conduct certain business activities from my home and have it covered by my Homeowner’s Insurance?

Perhaps. Some types of incidental businesses may be covered on a Homeowners Policy by using an endorsement. You must let your agent know so they can tailor the policy to fit your need.