Understanding Basic Insurance

Posted by on Jan 20, 2014 in Insurance | 0 comments

A meteor hits your home. Are you covered? You hit a deer with your car.  You drive through the garage door. Covered?  Most of us, unless you live and breathe insurance OR have experienced one  of  these unforseen events, you don’t really know.  When it comes to buying insurance many people assume they are covered, but many times find out all too late, they should have taken the time to understand  more of exactly what they have. A good agent should always take the time to explain the coverages to you.  You likely won’t remember even then, however, if an agent actually sits down and explains the coverage when you are purchasing it, you will be more likely to make an informed decision on the coverage you want to accept and decline.  Insurance is not a one time decision, things change in our lives every year.  Your agent should sit down with you at least one time a year to review what you have and make sure you are still properly covered.   While the specifics on each plan, depend on the policy, here are some BASIC definitions of what is covered under your policies.

Home Coverage: House

Home insurance typically falls into two broad categories: coverage for your home itself, and coverage for your possessions. For structural coverage, you’re usually covered for damages caused by fire, wind, hail and lightning, but earthquake and flood insurance must be purchased separately. For your personal property, if your possessions are stolen or damaged by a covered disaster, you’ll typically receive 50-75 percent of your total insurance amount to replace them. Expensive items like fine art or jewelry may require additional coverage.

Auto Coverage: Auto insurance covers a broader set of circumstances, including collision (accidents), comprehensive (damage not caused by an Deer hits caraccident, like a rock hitting your  windshield or damage from theft), uninsured motorist coverage, property damage coverage (to repair someone’s damaged property, like a light pole or a mailbox), medical coverage (to cover injuries you or your passengers sustained in a collision), and bodily injury liability (to protect you from lawsuits). Seems like a lot? It is!


One of the best things that you can do to protect both your home and your auto is to bundle your coverage. Why? It means that you have one go-to person to explain your insurance questions, protect your investments,  and you can save some serious cash. In the meantime, please schedule a  time to review with your agent the coverages you do have.  It doesn’t take long, and it can be very worth it in the event of an unforseen loss. At Bragg Insurance Agency, we are always willing to review your current coverages with you, even if we do not insure you.

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