Frequently Asked Questions

Have insurance related questions? Freeman Insurance Services, Inc. is here to help. Still have additional questions after reading this page? Contact us and let us know what questions you still need answered.

1. Does my credit score impact my premium?
   
   No, insurance companies take in account a potential clients credit score. Insurance companies are not considered lenders and therefore have not basis to run someone’s credit. Insurance contracts are bound through premiums being paid on-time. If premiums are not paid the contract will cancel. This also will not affect your credit score if a policy is suddenly cancelled. Most personal and commercial lines insurance companies are heavily regulated from state to state and often a requirement depending on the type of insurance you are purchasing. For example, home and auto insurance in California is mandatory and is the law. Because of this fact car insurance companies want to make it easy for consumers to quote and bind coverage as quickly as possible.
    
2. Will filing a claim make my insurance rates go up?
   
   In most cases yes, depending on the claim. If you are filing a claim every year, then and insurance company will see your loss history record. All carriers have access to your loss history and will take in consideration your claims. This is where a independent broker could be of more assistance, by placing you with the lowest options based on your loss history.
    
3.  Should I buy my policy through a carrier or go to an independent agent?
   
   For several reasons, working with an independent agent is a better option. An Independent agent has the ability quote many companies and can help lower cost during a renewal period whereas a carrier will not necessary have your best interest because they are more inclined keep the policy within their company.
    
4. Should I get a home and auto insurance package through the same carrier?
   
   Yes! Many carriers have package deal which includes saving when you package you home and auto policies. The more lines of coverage with a carrier the more savings you’ll receive in the long run.
    
5. Will my auto insurance cover me if I get a rental?
   
   Short answer is yes… However, the typical term an individual will rent a vehicle is 2-3 days. Your lability coverage for your personal auto policy will cover your in an accident if you’re at fault. However, the comprehension and collision for the rented vehicle is something we in our office suggest our clients take advantage of from the rental company.  Here’s why… If you are only driving the vehicle for 2-3 day you and have an accident, your personal policy would cover the claim if at fault, however, you would be paying a $500 deductible for a car you’ll NEVER drive again. Let’s not waste money on vehicles we’ll never drive again. Therefore, we recommend purchasing the Comprehensive and Collison from the rental company and allowing your personal liability to handle the other parties claim.
    
6. What does a personal umbrella policy cover?
   
   A personal umbrella policy covers liability and defense cost Umbrella policies can cover what primary insurance excludes and/or additional coverage beyond the limits set in your other insurance. Umbrellas can provide coverage for auto, home, boat and renters insurance policies.
    
7. If I start a business in my home will my homeowners policy cover it?
   
   It depends on the business. Most home businesses have very low foot traffic. For instance, I started my insurance business in home with out any foot traffic. However, if I was a home office that had multiple people walking in and out during the day, the insurance company may see this a too much of a risk for their homeowner’s policy.  Therefore, you would want to make sure you home business is covered by a Business Owners Policy.
    
8. What is the difference between general and professional liability insurance for my business?
   
   General liability protects the insured business from what we call trip and fall claims.  Again, foot traffic would require a business to have general liability to protect its customers from physical injury against the business.  Professional liability often referred to as errors and omissions coverage, is the complete opposite. It protects the business from lawsuits for its professional services. This coverage is great for businesses that work with contracts. If an agreement is not fulfilled and there is a monetary loss, the injured party might want to bring suit to practicing business. A Professional liability policy would cover the business for any contractual disagreements.
    
9. What insurance coverage do I need for my small business?
   
   Depends, many small businesses have different needs. Every business is different. If you have a restaurant, you will need general liability and maybe a works compensation policy. If you are real estate agent, you might need professional liability policy. Discuss with your local agent on what policy fits your business needs. Also, consult with local government agencies on what policies are required to operate with city and county limits. You also would want to make sure what is required from the local government that you meet the limits of liability within the specific coverage.