Insurance FAQs

Frequently Asked Questions
Do credit scores affect premiums?
Answer

Yes, they do.  According to regulatory associations, there is a direct correlation between credit scores and individuals getting into accidents, and cancellation policies due to non-payment.  Therefore, premiums are higher for lower credit scores.

What factors should I consider to determine if I am getting good value for my homeowners insurance premium?
Answer

It is a fact that most homes are underinsured.  During every renewal, ask your Extraco agent questions about what is covered under the policy as well as optional coverages like flood, fire, etc.  Then choose a deductible that’s right for you.  The higher the deductible, the lower the premium.  A high deductible is fine, but make sure you have the money for out-of-pocket expenses if something should happen.

What is not covered on my homeowner policy?
Answer

Every homeowners policy is unique, but in many cases, you need extended insurance to cover things like by-laws, earthquake, flood, and intentional acts.  These optional coverages do not come standard on most policies.  Also, standard wear and tear is not covered and typically isn’t coverable.

How is condo insurance different from homeowner insurance?
Answer

When you purchase a condominium, you are not purchasing the building; you are purchasing a unit inside the building.  You are also most likely a part of a condo corporation that fixes external structural damages.  Homeowners insurance covers the structure as well as the contents inside the home.

What is uninsured motorist coverage?
Answer

Coverage that protects you and the people in your car in the event another driver hits you with inadequate insurance coverage or no insurance coverage at all.

What is the difference between collision insurance and comprehensive insurance?
Answer

Collision insurance covers damages to your car when your vehicle collides with another car or object.  For example, if you hit a car in a parking lot, the damages to your car will be paid under your collision coverage. 

Comprehensive insurance coverage provides coverage for direct physical damage losses to your car other than collision, including theft.  For example, damage to your car from a hailstorm will be covered under your comprehensive coverage.

What is the difference between “actual cash value” and “replacement cost”?
Answer

Covered losses under a homeowners 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 on an amount necessary to replace the article with one of similar type and quality at current prices.

What is general insurance?
Answer

General insurance helps us protect ourselves and the things we value, such as our homes, our cars and our valuables, from the financial impact of risks. Risks such as fire, storms, theft, car accidents, illness, or travel. It can even protect us from the costs of legal action against us. We have the ability to choose the types of risks we wish to cover by choosing the right kind of policy with the features we need.

Frequently Asked Questions by Category

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Woman using mobile phone
Apple Pay FAQs
Apple Pay FAQs
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Business owner using his computer
Business FAQs
Business FAQs
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Gentleman looking at phone.
Checking FAQs
Checking FAQs
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Grandma video chatting with granddaughter
COVID-19 FAQs
COVID-19 FAQs
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Man walking down the street using his cell phone
Fraud Alert FAQs
Fraud Alert FAQs
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Couple Enjoying Road Trip
Insurance FAQs
Insurance FAQs
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Couple traveling looking at reservations
International Travel FAQs
International Travel FAQs
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Man looking at mobile phone.
Mobile & Online FAQs
Mobile & Online FAQs
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Family moving into new house
Mortgage FAQs
Mortgage FAQs
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Graduate hugging father
Student Loan FAQs
Student Loan FAQs
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Family photo with young son and another on the way soon.
Wealth & Trust FAQs
Wealth & Trust FAQs

Important Disclosures and Information

INSURANCE PRODUCTS ARE NOT DEPOSITS, NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY, NOT GUARANTEED BY EXTRACO BANKS OR ITS AFFILIATES, AND MAY GO DOWN IN VALUE.