General Insurances FAQ

What factors should I consider when I insure my home?
What is the difference between "actual cash value" and "replacement cost"?
What are the advantages to using an agent to purchase insurance?
What is a deductible?
Why do I have a deductible?
What are my responsibilities to the Insurance Company if I do if I have a fire at my home?
Should I report all automobile accidents to the Insurer?
When is a car ‘written off’ by an Insurer?
Why should I purchase commercial vehicle insurance?
What exactly does the term "bodily injury" in a liability insurance policy mean?
How does an umbrella insurance policy work?

What factors should I consider when I insure my home?

Firstly determine the amount and type of insurance that you need. The sum insured or coverage limit of the property should equal 100% of its replacement cost. If the policy limit is less than 85% of the replacement cost of your home, any payment from the insurance company will be less than the full cost to replace your home – This is known as ‘Under Insurance’.
Over and above the basic Fire Insurance, decide which, if any, additional coverage you want to add to your policy. For example, do you want personal possessions or household contents covered against theft or burglary, cover against the risk of civil commotion here in Bali or, separately issued, earthquake and volcanic eruption coverage.
Once you have decided on the coverage you want in your insurance policy, consult us. We will be able to help you determine if there are any gaps in coverage you might not have been aware of, we can also explain the details of the policy's exclusions and limitations as well as recommend an insurance company that will live up to your expectations.

What is the difference between "actual cash value" and "replacement cost"?

Covered losses under a personal possessions or household contents policy can be paid on either an actual cash value basis or on a replacement cost basis. When "actual cash value" is used, the policy owner is entitled to the depreciated value of the damaged property. Under the "replacement cost" coverage, the policy owner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices.

What are the advantages to using an agent to purchase insurance?

By using an agent to purchase insurance, the policyholder receives more personal service. An agent with whom there is direct contact can be vital when purchasing a product and can prove absolutely necessary when filing a claim. As a local, independent agent we are able to deliver quality insurance with competitive pricing and local personalized service.

What is a deductible?

A deductible is the cash value amount of damages that you agree you will be responsible for if you have a claim.
Most insurance policies have a deductible which states that a portion of the amount paid for the loss will be subtracted from the amount the insurance company would otherwise pay. This amount is not paid to the insurance company, it simply becomes your share of the loss and is deducted from the payment.

Why do I have a deductible?

Deductibles serve several functions. Shifting the cost of small claims to the person buying the insurance (insured) enables the insurance company to reduce premiums. Adjusting claims for small amounts often costs more than the dollar amount of the claim. The cost of insurance would be much higher if there were no deductibles. The higher the deductible, the lower the premium.

What are my responsibilities to the Insurance Company if I do if I have a fire at my home?

There are 4 simple rules to follow
Take all reasonable steps to protect the property from further damage
Make immediate reasonable and necessary repairs to protect the property from further loss
Keep an accurate record of any repair expenses
Give notice to your insurer or agent as soon as practicable.

Should I report all automobile accidents to the Insurer?

Yes you should. Even if the accident appears minor, it is important that you let your insurance company know about the incident. If you have an accident but don‘t report it to your insurer, you are taking a risk, even if the damage seems minor. If the other driver sues you weeks or months later, your failure to report the accident might cause your insurer to refuse to honor the policy. And even if they do honor the policy, the delay will certainly make it harder for the insurer to gather evidence to represent you.

When is a car ‘written off’ by an Insurer?

It’s up to your insurer to decide whether to pay for repairing your car or to declare it a total loss and pay you its book value. Most standard auto policies will not pay to repair a vehicle if the repairs cost more than the cash value assigned to the car. In practice,there will be little dispute about whether to repair the car if the damage is above 75% of the book value of the car. You may argue about what the pieces of the car were worth when they were assembled as a car. But, for you to get a settlement higher than the Auto Industry Guide value of your car’s make and model, you will have to submit evidence such as mileage records, service history and affidavits from mechanics to show that your car was worth more. You’re entitled to the market price of the car you just lost. You shouldn’t get more or less than what you are due.

Why should I purchase commercial vehicle insurance?

Many personal auto insurance policies exclude coverage if a vehicle is used mainly for business. A commercial policy provides coverage for vehicles owned by a business if these vehicles are in an accident. The insurance pays to repair or replace the vehicle and the vehicle of the third party damaged by the employee. It may also pay for the medical expenses of those injured in an accident.

What exactly does the term "bodily injury" in a liability insurance policy mean?

This refers to the injury, sickness, disease, or even death, of any person that occurs during the policy period.

How does an umbrella insurance policy work?

A policy designed to provide protection against catastrophic losses, the umbrella insurance policy is generally written over various primary liability policies, such as a general liability insurance policy, business auto policy and employers' liability coverage. Once the underlying limits of these primary policies are exhausted, the umbrella liability policy would provide further coverage beyond the limits of those policies.