All posts by John McLain

Home Theater

Does my home insurance cover my computers / instruments / jewelry?

Home owners insurance is designed to cover the structure of your home and the possessions within your home against destruction or loss. But the degree of coverage varies from policy to policy and by insurance provider. So the short answer to this question is yes. But you have to understand your policy to know what is covered and for how much.

Limits on specialty items.
Most policies will cover furniture and common possessions without much exclusion. However, if you have a rare antique or a very expensive sofa, it’s worth discussing with your agent to ensure you are protected. Also, things like collectibles, jewelry and electronics are limited in coverage – sometimes at very low limits. Again, the best plan is to discuss your possessions with your Provident Insurance agent. Create a list of all your unique possessions. Computers, musical, jewelry, artwork, etc., are all things you should itemize and have appraisals for so you can insure them properly.

Ultimately, the insurance company wants to be able to prove you own these things. An expensive grand piano isn’t an easy thing to fake. So if you had a fire and your grand piano was destroyed, chances are there would be remnants of its existence. But an expensive oil painting may be destroyed completely. So would a rare guitar or some gold jewelry.

Inventory your stuff.
Go through your home and inventory your possessions. List all your expensive items and if you don’t have appraisals for them. Get them. Another good idea is to create a video of the contents of your home. Use a camera or your smart phone and simply take a quick tour of your home, highlighting furniture, paintings and electronics. Then save this video in a safe place – like a cloud-based archive.

To learn if you have the appropriate insurance, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

Car Rental Insurance

Do I need rental car insurance?

The answer is easy, yes you do. But who provides the insurance is where things get a little tricky. If you’re being held accountable for a rental car, then insurance is a necessity. But there are a variety of sources of rental car insurance and each source may provide varying amounts of insurance at varying costs. Let’s break it down, shall we?

Rental car add-on insurance.
Every rental car company provides insurance for an extra fee. In fact, this is a way they make extra profit. Consider this; they wouldn’t offer insurance if they lost money on it. But it is an option. If you’ve ever rented a car, you’ll know the process. They make you either select various types of insurance or even initial the contract that you have declined insurance. This insurance could add between $5 and $50 per day to your rental charges. If you don’t have insurance through another provider, this may be your only option.

Personal car insurance.
If you have insurance on your own vehicle, it may protect your rental car as well. You need to call and ask your provider if it does and for how much. They may recommend that you buy additional insurance from the rental car company to supplement your current insurance, or you may have plenty of coverage. If you do, you can deny the optional insurance and won’t have to pay any extra.

Credit card insurance.
Some credit card companies offer minimal (or secondary) insurance to their cardholders. Call your credit card provider and find out if you are covered and for how much. Again, you may need to supplement insurance with the rental car company.

In the end, it’s important to protect your personal assets. In this case, you want to protect your finances from the rental car damage sustained during your use of the car.

To learn more about rental car coverage, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

Underinsured

Are you underinsured?

Understanding how much insurance to have can be challenging. Let’s try to simplify things so that it’s easier to understand and even easier to buy. The ideal outcome is finding coverage that’s just right.

Insurance is all about protecting your assets. Yes it covers car damage and house damage, but at the end of the day, insurance is to help protect you from a large financial loss – one that could be catastrophic to your personal finances. So, insurance coverage isn’t just about what you own, it’s about covering what other people own too. Take auto insurance for example. Not only do you want to make sure you cover your auto’s value, but you need to make sure you have enough insurance for someone you may hit. Indiana requires a minimum of $10,000 insurance for other people’s property, but what if you hit a brand new BMW and it’s a total loss? If you only have the minimum insurance, you have to pay the difference. Do you have $40,000 or more to pay out of pocket? So that’s where insurance comes in.

Homeowner’s insurance is a bit more straightforward, but just as easy to underestimate. For the most part, you want to cover the replacement cost of your home and your home’s contents. Umbrella policies are available to cover accidents and injuries that may occur on your property. One thing with homeowner’s insurance is to make sure all of your possessions are covered. Many policies have limits on things like jewelry, computers, and electronics. Be sure to describe these items in detail when shopping for insurance. Your Provident agent will be sure to recommend the best coverage for your possessions.

In the end, insurance serves a purpose. It is designed to save you from large financial losses. If you focus your insurance dollars on protecting you from the biggest possible threats, then you can save money in the long run. If you’re looking for ways to save, consider a higher deductible. That way you can have the necessary protection, without paying as much in premiums…but if you do have a loss you will pay a little more out of pocket. Say, $1000 instead of $500. But that $500 difference is minimal compared to the thousands you’d pay if you’re underinsured.

To learn more about ways to save on your insurance, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

Renter's Insurance

Do I need renters insurance?

If you rent a house, apartment or condo you should definitely consider renter’s insurance. The landlord is usually never responsible for your personal possessions if there is a loss from theft or damage, such as flood or fire. Like homeowner’s insurance, it’s important to insure the replacement value of your possessions including furniture, clothes, jewelry, electronics, etc.

It’s also good to know what would happen if you have to live somewhere else temporarily. For example, what happens if there is a flood? Does your landlord provide temporary housing? If not, your renter’s insurance should cover that too.

Renter’s insurance also protects you from damage you cause. Let’s say you leave the stove on and it causes a small fire, resulting in $5000 damage. Since it was your fault (even though it was accidental), you are responsible for the damages. The idea of coughing up five grand is serious business. If you had renter’s insurance you’d only be responsible for the deductible – usually $250 – $1000, whichever you choose.

So, as with all insurance, renter’s insurance does 2 things. It pays to replace your stuff and it protects you from large, painful payments for damage you cause. If you want to know more about renter’s insurance contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

Is high-deductible insurance a good idea?

The insurance deductible is purely a cost-saving measure for consumers. It’s all about home much you want to pay if there is a loss. And how much you want to pay for your premiums.

High-deductible insurance creates lower monthly payments but a higher cost for consumers if they need to make a claim. For example, let’s say you’re a very safe driver and feel like you won’t have an accident. You can raise your deductible to $1000 or more and you’re monthly (or semi-annually) payments will go down by a fair amount. But maybe you feel like $1000 is too much for you to handle if you do have an accident. Well, then you’ll want to pay a little bit more on your premium to avoid such a large payment if there is a loss.

It’s all up to you. That’s the great thing. And what’s better, you can discuss the options with your Provident Agent to determine the best possible payment/deductible combination.

To calculate your deductible/premium combination, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

If I have a car accident, what should I do?

First, do this:

  • Take a deep breath and stay calm.
  • Check for injuries; with you and your passengers.
  • If accident is minor, move cars to a safe place, out of traffic. If it is a major collision, and you feel you can exit the vehicle, do so slowly and with caution.
  • Turn on your vehicle’s hazard lights and use cones, warning triangles or flares for safety.
  • Call the police, even if the accident is minor.
  • If you have time, call your insurance agent immediately.

Other Important Tips

  • A police officer will take a statement from all parties. It is NOT THEIR RESPONSIBILTY TO ASSIGN FAULT. Don’t argue, don’t try to convince the officer. Just report the facts. And, do not sign any document unless it’s for the police or your insurance agent.
  • Make immediate notes about the accident, including specific damages to all vehicles involved, witness information, etc. If you can take photos with your phone, it’s good to show the other vehicles and the location of vehicles BEFORE they are moved.
  • Photo graph other car’s license plates before they are moved – and if it safe!
  • Be polite, but don’t tell anyone the accident was your fault, even if you think it was.
  • State only the facts, and limit your discussion of the accident to the police and your insurance agent.
  • If possible, don’t leave the accident scene before the police and other drivers do.

Questions? Contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

How much home insurance do I need?

Homeowner’s insurance is a curious thing. Every mortgage company requires it, so for most homeowners, it’s mandatory. Only the fortunate few who own their homes outright are free from the obligation of insurance. So…for the rest of us, we are expected to wade through the hundreds of options and expected to make a wise decision. So how are we to decide? And most importantly, how much insurance does one need?

Fortunately, with a few tips and some common sense, most homeowners can make an educated decision. Homeowner’s insurance is designed to protect the investment of you home. It’s not designed to make you rich or to leave you broke. In the worst-case scenario, you shouldn’t be financially ruined. Likewise, you shouldn’t come out ahead either.

Homeowner’s insurance is all about the replacement cost of your home (all structures on your property) and their contents. It’s the contents part that gets complicated. It’s fairly easy to calculate the replacement cost of a home. There is a lot of data available to insurance companies about building materials (bricks and boards) and labor to come pretty darn close to what it costs to replace your home. But it’s the contents that can vary dramatically. And that’s where you come in. You should have a very honest conversation with your insurance agent. They need to understand what you own and what you don’t own so that you are charged a fair price.

Some people like jewelry. Others like electronics. Even others like cars or other collectibles. All of these things are charged at different rates, so it’s important to talk about what you own and what insurance is required.

Another category to discuss is flood zone or extra insurance for a basement. Bottom line – ask questions. Tell the agent what you own and compare rates from multiple companies. That’s the advantage of an independent agent. We can provide multiple quotes simultaneously.

To learn more, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

Don't Skimp On Insurance

Can you afford to skimp on insurance?

Most insurance policies are comprised of many elements. Each element can contribute to the total cost of insurance. So on the whole, you do not want to skimp on insurance. But there are ways to reduce your costs based on your priorities and your needs. Where you absolutely don’t want to skimp is on those elements that are affected by a third party.

For instance lets say you cause an auto collision and a person in the other car is injured. You are protected by the Liability element of your auto insurance. However, if you skimp here and you are sued, good luck. People can survive financially if their car is totaled, but it may be very difficult to survive financially if you are sued and your assets and wages are attacked in the lawsuit.

But you may be able to reduce the cost of other elements of your auto policy. Comprehensive and Collision elements may be reduced to help save money. If something happens, you may have to pay out of pocket, but these are typically not costs that can ruin someone financially.

There are also ways to reduce the cost of your homeowner’s insurance without skimping on the important stuff. Your home is probably your single largest investment, so there is a lot to protect. So maybe you just need to raise your deductible? A higher deductible means you pay more out of pocket at the time of a claim, but it won’t ruin you financially. Moving from a $500 deductible to $2000 could save you thousands of dollars over the life of your policy. You should also review what exactly is covered to see if there is a way to reduce the cost even more. Most policies accommodate a variety of personal possessions. Perhaps you don’t even own something that is covered and can have it removed from the policy to reduce the price.

The bottom line is this. Insurance serves a purpose. It ultimately is designed to save you from large financial burdens. If you focus your insurance dollars on protecting you from the biggest possible threats, then you can save money in the long run.

To learn more about ways to save on your insurance, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

Learning About Insurance

Are all insurance companies the same?

Insurance companies may all seem the same on the surface and for a lot of reasons that is true, because they all offer insurance. The same question could be made among fast food restaurants, right? You have a dozen choices to find a meal in less than five minutes, but you have your favorites. Same with insurance. Each insurance company takes a unique approach to the way that they offer this essential service, with different discounts, different ways of pricing their services, and different approaches to customer service and incident response procedures. Finding the one that does all those things in the manner that suits your needs is the key.

At the heart of the differences is price and service. How much do they charge for the coverage and service they offer? You may find two companies that offer the same price for the same coverage, but processing a claim may be an entirely different experience between the two.

Internet-based vs. brick and mortar
Internet insurance companies offer a convenient way to shop and are on the rise. Although convenience is important, so is having and experienced agent to call when you have an issue or to address questions. When dealing with an internet company you will be at the mercy of the person working, and may end of having to explain your issue multiple times.

Discounts and bundling
A savvy insurance comparison shopper knows that almost every insurance company offers some sort of discount for things like being a full-time student, having a safe driving record, having anti-theft devices installed, and more.

There are generally two schools of thought when comparison-shopping for insurance rates: choose a smaller company and perhaps get a lower quote, as these companies are more flexible in their ability to save customers money. The second school of thought prefers to choose a large, national insurance company that can offer discounts for bundling services together.

Service matters
One thing is true no matter the price: service is important when choosing an insurance company. A low price is only as good as the agents or customer service representatives who will help during an emergency, and an affordable policy is only as good as the speed with which it gets a driver back on the road or a homeowner back in their home.

Using an independent insurance agency
One key advantage of an independent insurance provider is that we are not beholden to any one company. We can help you do the shopping and the comparison. We represent many insurance providers and can find the right coverage at the right price with the best level of service. Interested in learning more? Contact us today.

To learn more about how Provident Insurance is different, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

What do these insurance terms mean?

The insurance world is full of terms that are foreign to most consumers. It makes it challenging to shop and buy insurance, when most insurance agents seem to speak a different language. Here are some of the most common terms to help make shopping for insurance easier.

Actual Replacement Cost
Actual replacement cost is the amount of money it would cost to replace a damaged item with a new one at the time of the claim. Actual replacement cost does not factor in an item’s age and depreciation, or the effects of wear and tear over time.

Additional Living Expenses
If you’re unable to live in your home while it’s being repaired or rebuilt after a covered loss, some insurance policies provide additional living expenses to help pay the cost of temporary housing and living expenses for a defined amount of time.

Claim
Request by a policyholder or third party from an insurance company for losses covered by an insurance policy.

Collision coverage
Pays to repair damage to your vehicle that is caused by an accident involving other vehicles and objects like guardrails, trees and buildings. It does not cover damage to another driver’s vehicle.

Comprehensive coverage
Pays to repair or replace your vehicle if it is stolen, vandalized or damaged in some way other than in a collision. Includes loss or damage from fire, flood, falling objects, wind, hail and collision with an animal.

Declarations page
A summary document of an insurance policy that identifies the policyholder, the property or vehicles covered, the coverage and the premium amounts.

Deductible
The amount of money you agree to pay out-of-pocket for a claim. The deductible you choose often affects how much you pay for your insurance. A higher deductible usually means a lower insurance cost.

Insured
The person or parties who are protected by an insurance policy.

Insurer
The company that provides the insurance coverage and services to the insured.

Liability coverage
Pays for bodily injury and property damage that you, your family or friends cause while driving your car as well as legal and court costs if you’re sued in an accident.

Loss
Direct and accidental damage to the insured automobile or property used as the basis for filing a claim.

Policyholder
The person or entity specifically identified as the named insured in an insurance policy. This person is also referred to as the insured.

Premium
Your insurance premium is the total cost or amount you pay in exchange for one term of policy coverage. One term of policy coverage is usually 6 or 12 months.

To learn more, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.