Frequently Asked Questions
Home Insurance
What does a standard home insurance policy typically cover?
A standard home insurance policy covers your home's structure, other detached structures on your property (like garages and sheds), your personal belongings, additional living expenses if your home becomes uninhabitable due to a covered loss, personal liability for injuries or damages to others, and medical payments for guests injured on your property. Some policies also offer limited coverage for items like jewelry, electronics, and collectibles, which can be expanded with endorsements.
Is homeowners insurance mandatory in my state?
Homeowners insurance is generally not legally required by any state, including Maryland, D.C., Pennsylvania, Delaware, or Virginia. However, if you have a mortgage, your lender will almost always require you to keep homeowners' insurance to protect their investment. Even if you own your home outright, insurance is highly recommended to safeguard against substantial financial loss from damage, theft, or liability claims.
How are premiums determined for home insurance policies?
Premiums are based on several factors, including the age and construction type of your home, your claims history, your location (especially proximity to fire departments or areas prone to natural disasters), the amount and type of coverage you choose, the deductible level, and any discounts for bundling policies or installing safety devices. Homes in areas more at risk for flooding, hurricanes, or crime may have higher premiums.
What options are available to add or customize my coverage?
Most home insurance companies offer endorsements or riders for higher-value items (like jewelry or art), sewer or drain backup, identity theft, and enhanced replacement cost coverage. Flood and earthquake insurance are rarely included but can be purchased separately. Review your risk factors (e.g., flood risk in Delaware or Virginia) and ask your agent about additional coverage options fitting your needs.
What is the difference between replacement cost and actual cash value?
Replacement cost coverage pays to repair or replace your home and belongings at current prices without deduction for depreciation. Actual cash value coverage pays for your home and belongings minus depreciation, meaning you may receive less after a loss. Replacement cost policies are typically more expensive but offer superior protection in the event of a claim.
How can I lower my home insurance premium?
You can reduce your premium by raising your deductible, bundling your home policy with other insurance (like auto), qualifying for discounts through security features (alarm systems, smoke detectors), maintaining a claims-free record, and reviewing your coverage annually to remove outdated or unnecessary endorsements. Always balance savings against having sufficient coverage in the event of a big loss.
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Auto Insurance
What are the minimum auto insurance requirements in my state?
Maryland: $30,000 bodily injury per person, $60,000 per accident, $15,000 property damage.
D.C.: $25,000 bodily injury per person, $50,000 per accident, $10,000 property damage.
Pennsylvania: $15,000/$30,000 bodily injury, $5,000 property damage, plus personal injury protection (no-fault coverage).
Delaware: $25,000/$50,000 bodily injury, $10,000 property damage, $15,000/$30,000 personal injury protection.
Virginia: $30,000/$60,000 bodily injury, $20,000 property damage (increased to $50,000/$100,000/$25,000 in 2025).
What’s the difference between “liability only” and “full coverage” auto insurance?
Liability-only insurance covers injuries and damages to others if you are at fault in an accident but does not cover your own car’s damages or your injuries. Full coverage includes liability, comprehensive, and collision coverage, protecting your vehicle from a wider range of events—including non-collision events (like theft or hail) and collision damages regardless of fault.
What happens if I let my auto insurance lapse?
Driving without required insurance is illegal and subject to penalties such as fines, license and registration suspension, and legal liability if you cause an accident. Each state actively monitors insurance status, so it is crucial to maintain continuous coverage and immediately return your license plates if you sell your car or move out of state.
What discounts or ways are there to save on auto insurance?
Discounts are available for safe driving records, bundling auto and home insurance, installing safety devices (like anti-theft systems), completing defensive driving courses, good student performance, and maintaining continuous coverage. Ask your insurer which discounts are available, as these can lower your premium substantially.
What is uninsured/underinsured motorist coverage, and do I need it?
Uninsured/underinsured motorist (UM/UIM) coverage helps protect you if you’re in an accident where the at-fault driver doesn’t have insurance or doesn’t carry enough coverage to pay for your damages. This coverage steps in to pay for medical bills, lost wages, and sometimes property damage if the responsible driver cannot. While some states mandate this coverage and others offer it as an option, it is strongly recommended because it provides vital protection on the road. All five regions—Maryland, D.C., Pennsylvania, Delaware, and Virginia—either require or encourage uninsured/underinsured motorist coverage, reflecting its importance given that a significant number of drivers remain uninsured or underinsured.
How do auto insurance rates get determined and why do they vary so much?
Auto insurance rates are set based on many factors, including your age, driving record, type of vehicle, where you live, and how much coverage you choose. Rates also vary between states due to differences in minimum coverage laws, population density, weather risks, accident rates, and costs of medical care and vehicle repair. For example, rates may be higher in urban areas like D.C. or Baltimore due to more traffic and higher accident frequency. Additionally, statewide regulations, tort laws, and no-fault insurance systems (such as Pennsylvania’s) directly impact what you pay. Comparing quotes and understanding what affects your rate can help you make smart, cost-effective choices for your policy.
