Question 1

DO I HAVE A GRACE PERIOD AFTER MY POLICY EXPIRES?

Accepted Answer

Unlike Life Insurance, there is no grace period for property and casualty insurance. Therefore, we recommend that you renew your policy on or before the expiration date listed on your renewal notice or policy schedule to ensure unbroken protection. Contact your agent if you anticipate any difficulty paying your premium by its due date.

Question 2

DOES MY DRIVING HISTORY AFFECT MY MOTOR PREMIUM?

Accepted Answer

Your motor premium is partially determined by your driving history along with other contributing factors. Insured drivers who have a claims free driving history are entitled to a “No Claims Discount” (NCD). On the other hand, individuals with poor driving history often do not receive a NCD and may actually pay an additional premium based on the frequency and severity of their accidents and claims.

Question 3

WILL MY MOTOR POLICY COVER ANY DRIVER WHO IS DRIVING WITH MY PERMISSION?

Accepted Answer

No, your motor policy will only cover individuals who are named on your motor insurance certificate. The details of these individuals will have to be provided to us prior to them being added to your policy and all authorized drivers must hold valid drivers’ licenses. Persons not listed on your certificate of motor insurance should not be allowed to drive your vehicle at any time, as accidents can occur suddenly and unexpectedly.

Question 4

IF I MOVE TO ANOTHER ISLAND AND TAKE MY VEHICLE, WILL MY POLICY COVER STILL APPLY?"

Accepted Answer

Yes. Your policy cover remains intact as long as your vehicle is used within the Bahama Islands. However, you should notify your agent before taking your vehicle to another island because premium rates vary from island to island, and you may have to pay an additional premium depending on where the vehicle is taken and for how long. Alternatively, you may be entitled to a return premium depending on the island you move to.

Question 5

WHAT IS A DEDUCTIBLE

Accepted Answer

Your deductible is the first portion of a claim that you are responsible for. In other words, we will pay any amounts over the deductible as long as it does not exceed the sum insured of your policy. For instance, if you have a $2500.00 claim and your deductible is $500 then we will pay you $2,000.

Question 6

WHEN DO I HAVE TO INFORM MY AGENT ABOUT CHANGES TO MY PROPERTY?

Accepted Answer

You should inform your agent about all additions to your home, improvements or any other factors that would change your sum insured. For example, the installation of a pool and deck or the purchase of electronic items as it relates to your contents.

Question 7

WHAT IS AVERAGE?

Accepted Answer

Average, or the Condition of Average applies when you insure your property for less than the full replacement value (known as underinsurance). In the event of a partial loss your claim will be reduced in direct proportion to the amount of underinsurance. For instance, if your sum insured represents 70% of your home’s replacement value then you will receive 70% of your claim less any applicable deductible. You are considered to be your own insurer for the difference.

Question 8

WHAT IS UNDERINSURANCE

Accepted Answer

If you insure your home for less than the replacement value you are said to be underinsured. If you have a claims average (see below) will apply and the amount you are paid will be reduced.

Question 9

WHAT SHOULD I INSURE MY HOME FOR?

Accepted Answer

You should always insure your home for its full replacement value or the cost to totally rebuild the home from ground up. We recommend that you obtain a valuation periodically from one of the many qualified appraisers available in order to determine the replacement cost of your home and to avoid underinsurance. You should not insure the cost of your land.

Question 10

HOW CAN I DETERMINE THE REPLACEMENT VALUE OF MY CONTENTS?

Accepted Answer

Simply put, the replacement value of your contents is the amount that it would cost to re-purchase those items today at today’s prices. We recommend that you take some time to outline a detailed room by room listing of all items with as much specifics as possible (make, model, purchase price, etc.). In the event that you do not have original receipts for items, obtaining an appraisal (especially for higher valued items) is recommended, and as a last resort you can use estimated prices. Along with this written listing of your household contents, you should also photograph the items as further proof of ownership to avoid any possible dispute in the event of a claim. We suggest that you maintain both a hard and soft (electronic) copy of the listing for your records. Some items, such as clothing and linens, are not eligible for replacement cost cover and depreciation will be applied to these items.

Question 11

CAN I INCREASE MY CATASTROPHE DEDUCTIBLE FOR A LOWER PREMIUM?

Accepted Answer

Under certain circumstances you can increase your standard deductible (2%) to a higher deductible for a reduced premium. However, keep in mind that whilst you may experience premium saving at the outset; you will be responsible for a larger portion of the claim in the event of a loss.

Question 12

WHAT IS A CATASTROPHE PERIL?

Accepted Answer

Hurricane and Earthquake and Tornado, Storm and Flood, following them are considered catastrophe perils under your homeowner’s policy.

Question 13

DO ALL HOMEOWNERS POLICIES PROVIDE THE SAME COVERAGE?

Accepted Answer

It is important to know that all policies were not created equally and do not cover the same perils, and that they vary in the extent and scope of coverage. Generally, you have the following policy options:
• Fire Only
• Fire and Other Perils excluding catastrophe perils –
• Fire and Other Perils including catastrophe perils
Additionally, we have a specially designed condominium policy for condominium owners’ which is usually organized by the condominium association.

Question 14

WHAT IS A SURVEY AND DO I NEED ONE?

Accepted Answer

A boat survey is the term used for boat appraisals as it provides details of the condition and value of a boat. If purchasing a used vessel, it may be a good idea to have a survey carried out before the purchase. We have particular survey requirements and your agent should inform you about them. Generally, for private craft, we will require a survey report when we insure a new vessel for the first time if it is more than 5 years old and we will require an updated report every three years from a licenced surveyor. For vessels used for commercial purposes surveys will be required every other year.

Question 15

CAN I CANCEL MY INSURANCE POLICY AT ANY TIME AND FOR ANY REASON DURING THE POLICY PERIOD?

Accepted Answer

Yes, you can cancel your policy at any time for any reason. However, the law states that you must return the certificate of insurance to us (in the case of motor insurance). Depending on the effective date of cancellation, you may be entitled to receive a refund of the unused portion of your premium upon return of the certificate. But this will only be forthcoming on return of the Certificate.

Question 16

HOW SOON SHOULD I NOTIFY INSURERS IN THE EVENT OF AN ACCIDENT OR OTHER LOSS?

Accepted Answer

You should notify us as soon as possible and provide full details of any accident or loss in writing. If you have a comprehensive policy, and there is a loss involving theft, fire and/or malicious damage, the police should also be notified as we will require a copy of the police report in order to complete your claim.

Question 17

IF I SELL MY VEHICLE CAN I TRANSFER MY MOTOR INSURANCE POLICY TO THE NEW OWNER?

Accepted Answer

You cannot transfer your motor policy to someone who purchases your vehicle. The policy should be cancelled with effect from the date of sale and the certificate returned to us. The new owner of the vehicle should take out a new motor insurance policy to protect their interest in the vehicle and to ensure that they are abiding with the laws set out in the Road Traffic Act.

Question 18

WHAT IS A NO CLAIMS DISCOUNT?

Accepted Answer

A “No Claims Discount” or NCD is a discount awarded to you for claims free driving experience. Each year free of claims, the discount is increased up to a maximum of 65% for comprehensive Private Car only polices and 20% for Third Party, Fire & Theft, and for Third Party only policies.

Question 19

AREN’T ALL LOSSES COVERED BY MY “COMPREHENSIVE” MOTOR POLICY?

Accepted Answer

No. Your comprehensive policy pays for most losses or damage to your motor vehicle. But, we will not pay for any loss or damage due to the following:
Indirect losses (i.e. loss of use of the vehicle)
depreciation, wear and tear, electrical and mechanical breakdown (i.e. transmission or engine problems)
damage to tires unless your vehicle itself has been damaged.

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