Specialized and comprehensive coverage

Frequently Asked Questions

• Do I need to buy rental car insurance or does my policy cover it?

  In most cases, your auto insurance policy will provide coverage for a rental car as long as you use it for personal purposes. For example, if you have comprehensive and collision insurance, your rental car will likely be covered if it’s damaged, stolen or totaled, as long as the rental is of similar value to your own vehicle. Your deductible will still apply if you file a claim with your insurer.

  Liability insurance pays for injuries or property damage you cause to others in a crash, up to your policy limits. Your own injuries and any damage to your rental car aren’t covered.

  If you don’t have comprehensive or collision coverage, or you’re renting a luxury vehicle that your insurer won’t cover, you can purchase a loss-damage waiver (LDW), or collision damage waiver (CDW) from the rental company. An LDW or CDW waive your financial responsibility for the rental car if it’s lost or damaged, as long as you abide by your rental agreement. Be sure to read the language in that rental agreement carefully. Many exclusions can apply. If you are planning to rent aa vehicle outside of U.S. territory, please contact your agent to confirm how your policy will respond.

• Do insurance companies report to the Credit Bureaus?

  Insurance companies don’t report information about your premium payments or claims (or lack thereof) to the national credit bureaus. Some insurers use credit checks to help set your premiums, however, and failure to pay insurance bills could lead to negative entries on your credit report. Here’s how it all works. When you purchase insurance coverage, you agree to make premium payments on a schedule spelled out in your policy. The insurance company isn’t lending you money, and the contractual obligations to pay insurance premiums aren’t considered debts, so insurance companies don’t report payments (or any other information about your coverage or claims) to the credit bureaus.

  Insurance companies may consider your credit when you open your policy, however. Insurers in many states, most notably auto insurers, may use what’s called a credit-based insurance score to help determine your premiums. That’s because insurance companies have found that an insured person’s credit health can help predict how likely they are to file a claim. While insurers don’t report your payments (or non-payments) to credit bureaus, unpaid insurance bills will affect your credit report if the insurer turns them over to collection agencies.

• What is Cyber Coverage in Personal Lines?

  Cyber crime is a growing threat. There are more than 4,000 ransomware attacks every day in the United States since 2016, according to the FBI. That’s a 300% increase since 2015, which averaged 1,000 ransomware attacks per day. Due to their wealth and uniquely complex lives, high net worth individuals are also at a greater risk of being targeted. Personal cyber insurance can be added as an endorsement to most homeowner policies and covers a range of cyber crimes such as cyber extortion, cyberbullying, online fraud and data breach. It helps cover direct financial losses and expenses as a result of cyberattacks. The endorsement will include a coverage limit and separate deductible
  What does flood insurance cover?

• When would I use my umbrella insurance policy?

  Let’s look at a few examples of when an umbrella policy may be able to help you.

  • You are driving your boat and one of your passengers is standing on the front of the boat while it is moving. Unfortunately, they fall in the water and sustain injuries as a result. They sue you for an amount above the limits of your watercraft liability policy. An umbrella policy can help cover that amount beyond your watercraft liability policy.
  • Your friend is on your roof trimming trees and falls off. Unfortunately, they are severely injured. The friend sues to cover their sustained injuries and lost wages as a result of this accident. Your homeowners policy doesn’t have limits high enough to cover all the expenses. This is where your umbrella policy will kick in and help cover the remaining costs.
  • Your son is driving an ATV with two friends riding on the back. They go down a dirt trail too fast, hit a stump and crash. The friends were severely injured and sue you for limits above your recreational vehicle liability limit.
  • You get involved in an online forum discussion. Somebody finds a comment you made to be slanderous and sues you. Your umbrella policy may cover those legal costs.
  • In some cases, there may even be coverage for an accidental death if you’re held liable.
• Should I schedule my Jewelry/Fine art/Silverware/Furs?

  Yes, scheduling can come with a few additional benefits. It can offer you broader protection of your valuables and may cover additional risks, including accidentally losing your belongings. Another benefit is not having to pay a deductible in most cases. Furthermore, while your primary homeowner’s policy may offer coverage for fine art and jewelry under the contents coverage, they often have very low sub-limits that apply.

• Should I let you know about my Trust, LLC, Ltd. or LLLP?

  Yes, your legal entity should be listed with the corresponding location(s) to extend coverage. Please contact your Yates account manager to review your options.