Insurance FAQs
Straight answers,
plain English.
Home & Property
Your home questions.
Replacement cost, renovations, jewelry, floods, and what your policy actually covers — the questions we answer across our six offices every week.
Get a Home QuoteHow much insurance do I really need?
The last thing you need is to find out after your home has been damaged is that you don't have enough insurance. Likewise, you don't want to be paying for insurance you really don't need either. First, you need to estimate how much your house would cost to completely rebuild it. At Illinois Alliance, we use industry-standard Marshall and Swift/Boeckh software to calculate the replacement cost of your home.
What is the difference between "actual cash value" and "replacement cost" protection?
"Actual cash value" is the amount your property is worth at the time of the loss. It is, essentially, the cost to replace the item minus depreciation, which takes into account the loss of value due to age and normal wear and tear. "Replacement Cost" is the amount to replace your house, other buildings, and personal property without any deductions for depreciation. Your agent can help you calculate what your Replacement Cost should be.
Why is it that my bank requires me to purchase my full mortgage amount when my insurance company says I can purchase a lesser amount and still be adequately covered?
Some lien-holders require you to purchase insurance that covers the entire mortgage amount. However, your insurance company may indicate you really need a lesser amount since home insurance basically covers the house and additional structures, not the land which they sit on or the market value of your home due to its location.
I've just renovated my home. Should I tell my insurance company?
Most definitely, especially if your renovations cost more than $5,000. With all the hard work and money that went into your renovations, it's important that you are insured for the right amount so that if you have a loss, you'll get what you need to cover the damages.
Is my computer covered by my homeowner's insurance policy? What about the peripheral devices and software?
Many companies include protection for computers; some as part of their normal policy, some as extra available coverage. Check with your agent for details. If you use a computer for your home business (and not as part of business for your employer), we recommend you check with us for specific coverages which you would need.
I have a large number of tools in my shed. Will my insurance policy cover them if they are stolen or damaged?
Yes. Your insurance policy contains coverage for personal property, which would include your tools provided they are stolen (up to certain limits) or if the damage is caused by a covered peril. See your specific policy for details and coverage limits.
Will my policy cover me for earthquakes?
Basic homeowners insurance policies do not cover damage resulting from earthquakes. You must purchase this extra coverage. If you are concerned about your house being damaged by an earthquake, call us for more information.
Will my insurance company cover damage caused by a flood?
Insurance policies do not cover any damage caused by floods. If you think flooding is a possibility in your area, you should consider purchasing special flood insurance from the National Flood Insurance Program (NFIP) of the U.S. Government.
I have antiques and fine arts in my home. What kind of coverage would adequately protect them?
You need to list invaluable items such as these on a separate endorsement. This is known as a Scheduled Personal Property (SPP) endorsement, which is added to your basic homeowner's policy. SPP acts like a mini-insurance policy on the specified and listed items, provides "all-risks" coverage (except for a few exclusions), and there is no deductible. This excludes scheduled watercraft.
I have a very valuable piece of jewelry. Is this covered by my basic policy?
If you own an item of specific value, you can add an endorsement, called Scheduled Personal Property (SPP), which acts like a mini-insurance policy on the specified and listed item. You can also add Extended Coverage, which increases protection on jewelry, watches and furs (up to an aggregate limit for all of these items together, which is specified on your policy).
I run a business from my home. What type of insurance protection does my home policy provide me with?
There is no coverage for property and liability damages that arise from a business you own and operate. If you run a business from your home, call us for the best business-related policy for you.
I have a very expensive wardrobe. Do I need additional protection?
In most cases, you won't have to do anything special. Clothing is covered under Coverage C - Personal Property. It is typically 50% of the insurance you have on your dwelling (Coverage A). You can get up to 75% if you have what is called Replacement Cost on your belongings. With expensive items, such as furs, you may want to itemize them separately with a Scheduled Personal Property endorsement.
What If My Assets Exceed The Highest Liability Limit You Offer?
You should consider an excess liability policy. Illinois Alliance offers a Personal Excess Liability ('Umbrella') policy.
Who do I list on my policy?
Every member of your household should be listed on the policy including non-drivers and children.
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Auto
Your auto questions.
Deductibles, teen drivers, rentals, borrowed cars, and why that ticket moved your premium — answered the way we'd tell a neighbor.
Get an Auto QuoteIs my baseball card collection covered by my insurance policy?
In most cases, yes; up to certain limits. We recommend you check with your insurance company for the specifics and limits on your policy.
My car has been broken into and my skis were stolen! Will my home insurance cover this?
Yes. Your home policy includes your possessions that are temporarily away from home.
How Much Liability Protection Do I Need On My Automobile Policy?
You are buying Bodily Injury coverage to protect your assets in the event of a judgment against you. Your per person Bodily Injury limit should be at least as large if not larger than the value of the sum of the following assets: Equity in your home (Market Value - Mortgage), Cash Value of your vehicles, Stocks, Bonds, Bank Accounts.
What Is The Difference Between Collision And Comprehensive Coverage?
Comprehensive: This optional coverage pays for damage to your auto caused by perils other than a collision. This includes fire, theft, hail, vandalism, riots, damage caused by animals, and glass breakage. Collision: This optional coverage will pay for damage to your auto regardless of who causes the accident. Collision Coverage applies if your auto is hit by another vehicle or if your auto hits other objects that cause damage to your vehicle.
Is My Friend Covered Under My Automobile Policy If I Lend Him/Her My Covered Automobile?
Whenever you give permission for a friend or associate to borrow your car, he or she is covered under your automobile insurance policy.
Should I Put My Teenager On A Separate Policy With Lower Bodily Injury Limits To Save Money?
It would be wise to have all children that you consider as dependents on your policy. An injured party will most likely go after the parents assets if the at fault minor child has insufficient insurance coverage. Also, bear in mind that inexperienced drivers have accidents at a much higher rate than experienced drivers do.
What Happens If I Am A Passenger In A Friend's Car And I'm Injured As A Result Of An Uninsured Motorist?
If your friend has Uninsured Motorist Bodily Injury (UMBI) or Underinsured Motorist Bodily Injury protection (UIMBI), you will be covered under his/her policy. If your friend does not have UMBI or UIMBI, you will receive protection under your UMBI or UIMBI coverage.
Do I Need Collision Protection On My Automobile?
In order to make the decision, you need to know the current value of your auto and the cost of coverage. If your auto is leased or financed, you are probably required to maintain Collision as well as Comprehensive coverage. If the value of your vehicle is only slightly higher than the deductible chosen, then it makes no sense to purchase Collision or Comprehensive coverage. If your 6 month premium for the sum of these coverages, when multiplied by 4, is greater than the value of your auto, then it is not economically feasible to purchase physical damage for that vehicle.
If I want Comprehensive and / or Collision coverage, do I need to choose it on all my insured vehicles?
You can make Comprehensive and / or Collision coverage choices individually for each of your insured vehicles.
If Another Driver Hits My Vehicle, Do I Have To Wait For The Other Driver To Pay For Damages To My Automobile?
Not if you chose Collision coverage. If you chose Collision coverage, we will pay for damage to your car (the cost of damage to your car less the deductible) regardless of who is at-fault in the accident. If the other driver was at fault, we will try to recover the cost of the collision damage from the driver and reimburse you for any deductible charges you may have paid.
I Am A Very Safe Driver And I Have Never Had An Accident, Should I Still Buy Comprehensive And Collision Coverage?
You may be an excellent driver but consider the following possibilities: We can all make mistakes. An uninsured driver could hit you. You could be hit while parked. Comprehensive covers you for losses caused by things other than motor vehicle accidents.
How Large Of A Deductible Should I Select?
Well, the larger the deductible the greater your savings, and risk, will be. Select a deductible based on the largest amount that you are comfortable paying for repairs to your vehicle in the event of an accident.
My Automobile Has Been Stolen. Will My Insurance Pay For A Rental?
If you carry comprehensive coverage on your stolen vehicle, you will be reimbursed on a rental up to a certain limit. However, if your auto is in the repair shop due to an accident, your insurance company will pay for a rental if you have purchased optional Substitute Transportation coverage.
Does My Automobile Insurance Policy Extend Coverage to Rental automobiles?
The coverages you have on your present policy also applies to rental cars. However, if you don't have Collision or Comprehensive on your current automobile policy, you will not have them on a rental car either.
Why Does My Insurance Premium Go Up When I Have A Ticket or Accident?
Statistics have shown that people who have recently been involved in an accident or have received a ticket are more likely to have another accident than those individuals whose driving records are incident free. Consequently, we charge a premium that most accurately reflects the likelihood of an individual having another accident within their policy term.
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