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Insurance FAQ (Frequently Asked Questions)

Homeowner's Insurance

Why is the amount of insurance on my house different than what the selling price or tax value is?
Market price and tax values do not represent the reconstruction cost of your home.  The insurance limit should represent the cost to rebuild your home.  
 
If water or sewage backs-up into my basement will that be covered?
Standard homeowner policies exclude back-up of sewer or drains, but that coverage can be purchased with limits starting at $5,000 up to $50,000.
 
What does property insurance cover?
Property insurance, which is also known as homeowner’s insurance, covers loss or damage to you home, the contents in your home, and any liability (accidents, injury, etc.) you may incur.
 
Why should I schedule personal items on my homeowner’s policy?
By scheduling personal items on a homeowner’s policy you will avoid coverage limitations for jewelry, guns, antiques etc.  
  
What does my homeowner’s Insurance cover?
Typically your homeowner’s insurance policy will cover personal belongings inside of your home.  In the event of a major loss like theft or fire, you will be able to replace the contents of your home. There are many factors to think about when determining the right amount of coverage for your belongings. Special software is available so you don’t have to do it on your own, including the free one at The Insurance Information Institute’s website.
 

Auto Insurance

Will roadside assistance only cover one driver and vehicle and what does the coverage entail?
Roadside assistance will cover all scheduled vehicles and drivers on the policy along with:
-          mobile access in any car from the driver’s seat to passengers seat
-          towing service
-          ditch extraction
-          emergency fuel
-          battery service
-          lockout service 
-          flat tire assistance
-          trip interruption
-          membership discounts for everyday purchases, travel, gifts and entertainment
 
If my vehicle is getting older, why does my premium keep going up?  
Cost of repairs on a vehicle can go up, making it more expensive to fix a partial loss.  Insurance companies need to make sure their pricing is adequate when compared to the costs of repairing a vehicle.  Also, premiums are subject to the current pricing conditions of the market place.
 
What does liability insurance cover?
Liability insurance protects you by covering the monetary “damages” (within your policy coverage) if someone sues you and you are held legally accountable to pay damages for such things as an accident, negligence, or an injury. 
 
 

Health Insurance

How many days in advanced should I start looking for a health plan?
An average response time from a company is 3 weeks, but it could take longer if medical records are requested.
 
  

General

Why should I use an independent insurance agent instead of online insurance?
An independent insurance agent usually represents several different insurance companies. This is great for you because your agent can check with all of these companies at once to get you the best price.  An independent insurance agent can also provide you with personalized attention and services including reviewing important documentation (leases, business documents etc.), explaining state and local laws, and offering suggestions on how to avoid claims.  You also have the peace of mind of knowing exactly who to call if help is ever needed.
  
What does “Bonded and Insured” mean?
A business that is “bonded” has placed money aside in a bond to cover claims filed against it by customers.  “Insured” means that the business carries liability insurance-coverage for personal injuries, property damage, and worker’s compensation.
 
Why do insurance companies use credit information and insurance score? 
Credit information is just one factor that provides an objective, accurate, and consistent tool that insurers may use – along with other applicant information – to better anticipate claims.  By checking this information insurers can better control risk, enabling them to offer insurance coverage to more consumers at a more competitive cost.  
  
What does Identity Theft cover?
ID theft coverage will pay up to $25,000, with no deductible to cover expenses you incur to restore identity, including:
 -          costs of executing affidavits
 -          costs of certified mail
 -          lost income
 -          loan re-application fees
 -          attorney fees
 -          costs of long distance phone calls
 -          access to an identity theft consultant
 -          free credit monitoring 
 -          free credit report and score
 
Will the insurance company accept automatic payments for my premiums?
Most companies offer electronic fund transfers automatically from your bank account.  
  
Can I pay my premium by credit card?
Most companies will take credit card payments over the phone or online.
  
What is a deductible?
The deductible is a predetermined amount you are responsible for paying before the insurance company will pay for a covered cause of loss.  
 
How does a deductible work?
The deductible is the fixed amount you are personally responsible for paying before the benefits of your policy begin to handle the claim. It is usually the case that the higher the premium, the lower the deductible, and vice versa. Ask your independent insurance agent what is the best option for you.
 
What is Umbrella Insurance?
Umbrella insurance is extra liability insurance. It helps protect you from lawsuits and major claims, protecting your assets and your future.  It is designed to provide additional liability coverage which goes above the limits of your homeowner and auto insurance policies and kicks in when your other policies have reached their maximum.  Umbrella insurance also covers you for claims that might be excluded by other policies such as false arrest, libel, and slander.
 
Do I need Workers Compensation?
If you hire an employee, yes, you need worker’s compensation insurance. Sometimes called” worker’s comp,” this type of insurance provides medical benefits and replacement of loss wages to employees who are injured while working on their job. In exchange for worker’s compensation, the employee gives up his or her right to sue the employer for negligence.
 
 

Miscellaneous Insurance Terms

Collision Coverage:  if another automobile hits you or you hit another automobile or object, this will pay to fix any damages to your car.
 
Comprehensive Coverage:  this will pay for damage to your automobile caused by an accident other than a collision. Examples would include damage by a flood, storm, fire, or theft.
 
Medical Coverage:  this will cover you or passengers in your car that do not have medical insurance in the event of an accident.
 
Bodily Injury Liability/Property Damage Coverage:  this will pay for another person’s injuries or death if you are responsible, as well as legal defense if the other party in the accident sues you.
 

*This is only a brief summary of answers to frequently asked questions; it is best to contact the agency for a complete answer.

Our Locations

Dilley Zimny Insurance

809 Broadway
Alexandria, MN 56308
Main office: 320-762-2124
Toll free: 800-568-5940

Sartell

305 4th Ave S, Suite 1
Sartell, MN 56377
Main office: 320-281-4900

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