FAQ’s – Here are some answers to our most common questions!

How do I file a claim?

You can file a claim several ways. The best way is to contact the insurance company directly. Call our office or review your policy for the instructions and contact details for your specific policy.

What are the benefits of a renter’s policy?

Renter’s insurance policies provide several benefits. A renters policy in New York State will provide compensation for many types of loss to your personal property. Renters insurance policies also include liability protection. This can be especially important because  a fire, caused by your negligence, could damage a large number of other rental units and the property contained in them. Liability coverage will normally cover your legal obligations to compensate other parties in cases like this as well as for other instances where you are legally liable for damage or loss.

Do I need to buy insurance from the rental car company if I have my own personal automobile insurance?

That depends. Liability protection that you carry for personal injury and property damage will provide some protection while you are driving the rental car. Damage to the rental car would be covered under Collision and Comprehensive Coverage, if your auto insurance policy has it. The rental car company may also try to recover damages for lost income while the rental car is out of service. Your auto insurance policy may or may not protect you against this claim; the best way to know is to look at your policy or ask us to review it for you. Credit card companies often provide protection against these kinds of rental car claims so you should check there to see what the provisions and restrictions might be. Finally, you can purchase a Collision Damage Waiver – CDW – from the rental car company. This isn’t actually insurance, but a release from financial liability you might otherwise be charged with as a result of damaging the rental car. The Collision Damage Waiver is expensive at $8 to $12 a day. This would amount to over $4,000 a year for very limited coverage. Still, if you do not have protection via your auto insurance policy or credit card, paying the CDW over a few days may be preferable than being personally accountable for $15,000 or $20,000 or more to replace the rental car.

What is the difference between Claims Made Insurance and Occurrence Insurance?

A claims made insurance policy is typically only offered on Liability Insurance. It is a policy that provides coverage for the claims that are made during the policy period regardless of when the act that caused the claim took place. The only exception to that would be if your insurance  policy has a limited prior acts date – meaning no coverage for acts prior to the specified date.

My liability policy shows CEOL – what does that mean?

CEOL stands for Claims Expenses Outside Limits. Claims expenses include attorney fees and other court costs that could be incurred with a claim. By having CEOL your limits are protected for any potential settlement in the claim.

50% CEOL – you may also see 50% CEOL option on a liability policy. Up to 50% of the limit may be reduced to pay incurred claims expenses such as above, as a result of a covered cause of loss. This has the potential to leave only 50% of your limit available to pay any potential settlement.

My liability policy shows CEIL – what does that mean?

CEIL stands for Claims Expenses Inside Limits. Claim expenses incurred as a result of a covered cause of loss will be paid within the Limit of Liability and will act as a reduction of up to 100% of the Limit of Liability.  This has the potential to exhaust the entire limit of liability to pay claim expenses leaving nothing left over to pay an indemnity payment.

I have seen FDD or First Dollar Defense on my liability policy. How does that impact my insurance?

The deductible is loss only and claim expenses will not be applied against the deductible.  The firm would only pay their deductible when an indemnity payment is awarded to the claimant.

What is the difference between an Aggregate Deductible and a Per Claim Deductible?

Most policies are issued with a per claim deductible – meaning the insured (you) would pay your deductible for EACH claim you report during the policy period. While with an aggregate deductible you have a one-time deductible for all claims.

My liability policy has a prior acts exclusion endorsement – what is that?

Acts, errors or omissions committed prior to the date specified on your endorsement are NOT covered under the policy.