Frequently Asked Questions
Insurance
Products
Straight answers to the
most frequently asked questions about buying home
insurance from the GMAC Insurance Homeowners
Program*.
Q. How do I know my house is covered properly?
A. During
the application process we use a replacement cost calculation system
that determines what the cost would be to rebuild your home using
current prices for labor and materials. This is how we establish a
replacement cost (Coverage A). We send an inspector to most homes
for which we bind a policy to confirm that we have provided the
correct amount of coverage for you.
Q.Should I make an inventory of everything in my home?
A.
A homeowner's insurance policy protects you from damage that may
affect the value of your home. A standard homeowner's policy also
includes personal liability and theft coverage. An inventory of your
possessions not only helps you determine how much homeowner's
insurance you should carry, but can also help get your
things replaced (or returned) if they should be stolen. Detailed
records, including pictures and video tape of antiques, jewelry,
silver, sporting goods, major appliances, and collector's items are
very important, as these items are difficult to value once they're
lost.
Q. What is the difference between an "all risks" policy and a
"named perils" policy?
A.A named perils policy covers
losses that are caused by specific perils listed in the policy. The
perils typically covered include fire, windstorm, hail, and other
direct physical losses. An all risks policy covers losses
that are caused by any peril except those specifically excluded in
the policy. It is important to note that an all risk policy
provides broader protection than do named perils
policies.
Q. Why does scheduling a jewelry item benefit me
when it costs more money?
A. Scheduling jewelry, like any item
which can be scheduled, provides more coverage for that item than is
provided under the basic homeowners policy. In addition, the item is
replaced at the value for which it is scheduled, subject to policy
terms. Any jewelry item not scheduled on your homeowners policy can
be replaced at its actual cash value, subject to the coverage
limitations of the policy.
Q. What is the
difference between ACV and Replacement Cost?
A. Actual Cash Value
(ACV) is defined as the cost to rebuild your home when it was new
minus any depreciation for its age. Replacement Cost guarantees the
reconstruction of your home regardless of its current cost, subject
to any policy limitations.
Q. Does my homeowner’s policy cover damage caused by
flood?
A. Homeowners policies do not cover flood damage. However,
The National Flood Insurance Program (NFIP) offers flood coverage in
many areas. If a mortgage lender determines a home is in a special
flood hazard area, the borrower might be required to purchase flood
insurance. Our Speciality Agency offers coverage through
our National Flood Services Program.
Q. I love the idea of saving money, but will I still get the
same protection for my home?
A. Definitely. We provide complete
coverage. Our specialists tailor your policy to protect your home
and its contents, and to protect you against personal
liability.
Q. Do you offer any discounts?
A. Yes. The GMAC
Insurance Homeowners Program gives discounts to homes with
protection and early detection features such as smoke alarms,
sprinklers, and burglar alarms. We also offer discounts for
retirees, since being home helps protect your home.
*The GMAC Insurance Homeowners Program is underwritten by
member companies of the Homesite Insurance group, a leading provider
of homeowners, renters and condominium insurance. Member companies
include: Homesite Insurance Company, Homesite Indemnity Company,
Homesite Insurance Company of California, Homesite Insurance Company
of Florida, Homesite Insurance Company of Illinois, Homesite
Insurance Company of the Midwest, Homesite Insurance Company of New
York, Homesite Insurance Company of Pennsylvania, and Homesite
Lloyd's of Texas.
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