Insurance FAQs provided by Hettler Insurance Agency, Lubbock Texas
(FAQs) – also see ‘Should’ Ask Questions (SAQs)General Insurance FAQs in Texas
A: A contractor’s certificate of insurance (COI) in Texas is a one-page document — usually an ACORD 25 Certificate of Liability Insurance form — that serves as proof that the contractor carries active insurance (typically general liability, and sometimes auto, workers’ comp, and umbrella). The certificate of insurance is a standardized summary showing policy types, limits, effective/expiration dates, and the requesting party as the certificate holder. Keep in mind, it does not alter or expand the underlying policy and is strictly regulated under Texas Insurance Code Chapter 1811 and related TDI (Texas Department of Insurance) rules.
For contractors, the COI is typically requested by project owners, GCs, or landlords before work starts. The COI is used to confirm that the contractor meets contractual insurance requirements and carries at least specified general liability limits. In Texas, COIs are regulated documents: the form must be filed with and approved by TDI for Texas risks. The certificate cannot state anything different from the actual policy or be used to amend coverage. For detailed rules on how certificates of insurance are regulated in Texas, see the Texas Department of Insurance’s guidance on certificates of insurance.
A: When you apply for an insurance policy at Hettler Insurance Agency, you will be asked a number of questions. For example, Hettler Insurance Agency might ask your name, age, gender, address, etc. You will also be asked a series of other questions which will be used to determine how likely you are to make a claim.
When Hettler Insurance Agency is deciding whether or not to offer car insurance to a potential customer, we want to know about your previous driving record, whether they have any recent accidents or tickets, and what type of car will need to be insured.
Hettler Insurance Agency offers a variety of programs for different customers. Adults with good driving records will generally pay less for car insurance, than young drivers with traffic tickets. In order to determine which program you qualify for, Hettler Insurance Agency will need basic information about you.
In addition to your age, gender and driving experience, information about the car you drive, and your driving record, is also needed to determine a fair price. For example, a large luxury car costs more to repair or replace than a compact car. Also, someone in Lubbock who commutes 30 miles each way is more likely to be in an accident, than someone who commutes via bus and only drives on weekends.
A: By using an independent insurance agent such as Hettler Insurance Agency, the policyholder receives more personalized service. Having direct contact with Hettler Insurance Agency can be very important when purchasing insurance, and absolutely necessary when filing a claim. Hettler Insurance Agency is able to deliver quality insurance in Lubbock, TX with competitive pricing and local, customized service. We work for you, not the insurance company.
Car Insurance FAQs in Texas
A: Yes, there can be a single policy acting as an “umbrella” over all of your other personal liability policies – auto, home, boat, RV, etc., so you have a higher personal liability limit, than what would otherwise be available. In certain circumstances, an umbrella insurance policy may provide personal liability coverage that is otherwise excluded from your other policies. For example, an umbrella insurance policy provides coverage anywhere in the world, whereas your car insurance policy usually provides coverage in only the US and Canada.
A: Most states have insurance laws that require drivers to have at least some car liability insurance. These laws were enacted to ensure that victims of car accidents receive compensation, when their losses are caused by the actions of a negligent individual.
Often times the cost of repairing the damages to an older car is greater than its value. In these cases, your insurer will usually just “total” the car and give you a check for the car’s market value less than the deductible. Many people with older cars decide not to purchase any physical damage coverage.
A: Collision is defined as losses you incur when your car collides into another car or object. For example, if you hit a car in a parking lot, the damages to your car will be paid under your collision coverage.
Comprehensive provides coverage for mostly other direct physical damage losses you could incur, including theft. For example, damage to your car from a hailstorm will be covered under your comprehensive coverage.
A: A number of factors can affect the cost of your car insurance in Texas – some of which you can control and some that are beyond your control.
The type of car you drive, the purpose the car serves, your driving record, and where the car is garaged can all affect how much your car insurance will cost you in Lubbock, TX.
Even your marital status can affect your cost of insurance. Statistics show that married couples tend to have fewer and less costly accidents than those who are single.
Homeowners Insurance FAQs in Texas
A: It’s your choice. You could have a single policy acting as an “umbrella” over all of your other personal liability policies – car/truck/auto, home, boat, RV, etc., so you have a higher personal liability limit, than what would otherwise be available. In certain circumstances, an umbrella insurance policy may provide personal liability coverage that is otherwise excluded from your other policies. For example, an umbrella insurance policy provides coverage anywhere in the world, whereas your car insurance policy usually provides coverage in only the US and Canada.
A: There are a number of things you can do to lower the cost of your homeowners insurance. The easiest thing to do is request a comprehensive review of your policy and your needs from Hettler Insurance Agency.
It’s not surprising to find quotes on homeowners insurance that vary by hundreds of dollars for the same coverage on the same home. When you shop, be careful to make sure each insurer is offering the same coverage.
Another way to lower the cost of your home insurance is to look for any discounts that you may qualify for. For example, many insurers will offer a discount when you place both your car and homeowners insurance with them. Other times, insurers offer discounts if there are deadbolt exterior locks on all your doors, or if your home has a security system. Be sure to ask Hettler Insurance Agency about any discounts for which you qualify.
Another easy way to lower the cost of your homeowners insurance is to raise your deductible. Increasing your deductible from $250 to $500 will lower your premium, sometimes by as much as five or ten percent.
A: The typical homeowners policy has two main sections: Section I covers the property of the insured and Section II provides personal liability coverage for the insured. Almost anyone who owns or leases property has a need for this type of insurance. Usually, homeowners insurance is required by the lender to obtain a mortgage.
A: Covered losses under a homeowners policy can be paid on either an actual cash value basis or on a replacement cost basis. When “actual cash value” is used, the policy owner is entitled to the depreciated value of the damaged property. Under the “replacement cost” coverage, the policy owner is reimbursed on an amount necessary to replace the article with one of similar type and quality at current prices.
A: There are a number of factors you should consider when purchasing any product or service, and insurance is no different.
Below is a checklist of things you should consider when you purchase homeowners insurance:
- Determine the amount and type of insurance you will need. The coverage limit of your house should equal 100% of its replacement cost. If your policy limit is less than 80% of the replacement cost of your home, any payment from Hettler Insurance Agency will be less than the full cost to replace your home – you’ll have to pay the rest out of your own pocket. Also, decide if the personal property and personal liability limits are adequate for your needs.
- Decide which, if any, additional endorsements you want to add to your policy. For example, do you want the personal property replacement cost endorsement, an earthquake endorsement or a jewelry endorsement?
- Once you have decided on the coverage you want in your homeowners insurance policy, please consult us at Hettler Insurance Agency. Hettler Insurance Agency will be able to help you determine if there are any gaps in coverage that you might not have been aware of, explain the details of the policy’s exclusions and limitations, as well as recommend an insurance company that will live up to your expectations.
A: Note: this answer is based on the Insurance Services Office’s HO-3 policy.
The home and other structures on the premises are protected on an “all risks” basis up to the policy limits. “All risks” means that unless the policy specifically excludes the manner in which your home is damaged or destroyed, there is coverage. The policy limit for the home is set by the policy owner at the time the insurance is purchased. The policy limit for the other structure is usually equal to 10% of the policy limit for the home.
Losses to your personal property are covered on a “named perils” basis. “Named perils” means that you have coverage only when your property is damaged or destroyed in the manner specifically described in the policy. The policy limit on the coverage is equal to 50% of the policy limit on the home. Limits for the coverage of additional expenses that the policy owner may incur, when the residence cannot be used because of an insured loss, is equal to 20% of the policy limit on the home.
The coverage limit on personal liability is determined by the policy owner at the time the policy is issued. The coverage limit on medical payments to others is usually set at $1000 per injured person.
A: Personal property (except property that is specifically excluded) is covered anywhere in the world. For example, suppose that while traveling, you purchase a dresser and you want to ship it home. Your homeowners policy would provide coverage for the “named perils” while the dresser is in transit – even though the dresser has never been in your home before.
A: The standard insurance policy does not pay for direct damages caused by “earth movement.” “Earth movement” is a much broader term than earthquake. It includes earthquake, volcanic activity and other earth movement. This coverage may be available by endorsement for an additional charge. If you live in an area that is susceptible to earthquakes, you’ll pay more on earthquake coverage than if you live somewhere unlikely to have an earthquake. Before you decide to buy earthquake coverage, Hettler Insurance Agency can help you weigh the costs and benefits based on living in Texas.
Life Insurance FAQs in Texas
| FEATURE | TERM LIFE | PERMANENT LIFE |
|---|---|---|
| Coverage Duration | Fixed term (e.g., 10, 20, 30 years); expires if you outlive it. | Lifetime, doesn’t expire if premiums paid. |
| Premiums | Lower and level during term. | Higher, often level (for “whole” life) or flexible. |
| Cash Value | None. | Builds over time; can borrow against or withdraw tax-deferred. |
| Purpose | Basic death benefit for specific needs like mortgages or kids’ education. | Death benefit plus savings/investment component. |
— Permanent life insurance includes 4 main sub-categories: whole life, universal life, variable life, and indexed universal life. All four offering lifelong coverage with cash value.
— Whole life insurance is the most traditional form of permanent insurance, with fixed premiums, guaranteed death benefit, and guaranteed cash value growth.
A: Yes. Term life insurance is popular in Lubbock because it offers affordable coverage that helps protect families during their highest financial responsibility years, such as raising children and paying a mortgage.Yes. Term life insurance is popular in Lubbock because it offers affordable coverage that helps protect families during their highest financial responsibility years, such as raising children and paying a mortgage.
A: Coverage needs vary, but many Texas families choose enough term life insurance to replace income, pay off debts, and cover future expenses like education.Coverage needs vary, but many Texas families choose enough term life insurance to replace income, pay off debts, and cover future expenses like education.
A: Yes. Many carriers offer no-medical-exam term life insurance options for qualified applicants in Texas.Yes. Many carriers offer no-medical-exam term life insurance options for qualified applicants in Texas.
A: You can compare term life insurance quotes online through GetLifePolicy.com, which allows Lubbock residents to view rates from multiple top-rated insurers quickly and easily.You can compare term life insurance quotes online through GetLifePolicy.com, which allows Lubbock residents to view rates from multiple top-rated insurers quickly and easily.
A: “Rule of thumb” suggests an amount of life insurance equal to 6 to 8 times annual earnings. However, many factors should be taken into account when determining the right amount of life insurance for you and your family.
Important factors include:
- Income sources and amounts other than salary earnings
- Whether or not you are married and, if so, what is your spouse’s earning capacity
- The number of individuals who are financially dependent upon you
- The amount of death benefits payable from social security and an employer-sponsored life insurance plan
- Whether any special life insurance needs exist – (mortgage repayment, education fund, estate planning need, etc.)
Calculating the correct amount of life insurance to buy in Texas is not as simple as it appears. We recommend contacting Hettler Insurance Agency at: 806-798-7800 to help determine the right amount of coverage you need. As an independent agent, Hettler Insurance Agency has unbiased advisors that will help you avoid buying too much, show you appropriate and optional coverages for your need, and recommend a company that will best serve your interests in Texas.
A: In certain circumstances, it is advisable to purchase life insurance for children. However, generally such purchases should not be made in lieu of purchasing appropriate amounts of life insurance on the family breadwinner(s).
It is of utmost importance that the income-earning capacity of the primary breadwinner be fully protected, if possible, through the purchase of the required amount of life insurance. This should be done before purchasing life insurance for children or on a non-wage-earning spouse. Life insurance on a non-wage-earning spouse is often recommended for the purpose of paying for household services lost due to this individual’s death. In a dual-earning household, it is important to protect the income earning capacity of both spouses.
A: This depends on your personal circumstances.
First, recognize that in any life insurance purchasing decision, two questions must be answered:
- “How much life insurance should I buy?”
- “What type of life insurance policy should I buy?”
The first question should always be initially resolved. For example, the amount of life insurance that you need may be so large that you can only afford it through the purchase of term insurance, since term insurance has a lower premium.
If your ability to pay life insurance premiums is such that you can afford the desired amount of life insurance under either type of policy, then it is appropriate to consider the second question – what type of policy to buy. Important factors affecting this decision include your income tax bracket, whether the need for life insurance is short-term or long-term (e.g., 20 years or longer), and the rate of return on alternative investments possessing similar risk.
A: The face amount under mortgage protection term insurance decreases over time, consistent with the projected annual decreases in the outstanding balance of a mortgage loan. Mortgage protection policies are generally available to cover a range of mortgage repayment periods – (e.g., 15, 20, 25 or 30 years.) Although the face amount decreases over time, the premium usually remains the same. Further, the premium payment period is often shorter than the maximum period of insurance coverage – for example: a 20-year mortgage protection policy might require level premiums be paid over the first 17 years.
A: Yes. An existing policy, either term or cash-value life insurance, can be used for many purposes, including paying off an outstanding mortgage loan balance in the event of the insured’s death. Although a lender may offer a mortgage protection term policy to you, the lender rarely requires it.
Credit life insurance is frequently recommended in conjunction with taking out an installment loan when purchasing expensive appliances, a new car, or for debt consolidation.
A: Credit life insurance is frequently more expensive than traditional term life insurance. If you already own a sufficient amount of life insurance to cover your financial needs, including debt repayment, the purchase of credit life insurance is normally not advisable due to its relatively high cost.
Renters Insurance FAQs in Texas
A: If you live in an apartment or a rented house, renters insurance provides important coverage for you and your possessions in Lubbock, TX. A standard renters insurance policy protects your personal property in many cases of theft or damage, and may pay for temporary living expenses if your rental is damaged. It can also shield you from personal liability. Anyone who leases a house or apartment should consider this type of coverage.
A: A renters insurance policy provides named perils coverage. This means that the policy only pays when your property is damaged or destroyed by any of the ways specifically described in the policy. These usually include:
- Fire or lightning
- Windstorm or hail
- Explosions
- Riots
- Aircraft
- Vehicles
- Smoke
- Vandalism or malicious mischief
- Theft
- Falling objects
- Weight of ice, snow, or sleet
- Accidental discharge or overflow of water or steam
- Freezing
- Sudden and accidental damage from artificially generated electrical current
- Volcanic eruptions (but this doesn’t include earthquake or tremors)
Renters insurance coverage applies to your personal property no matter where you are in the world. This means you’re covered when you are on vacation as well as at home.
A: Owners of apartment complexes buy insurance policies for their liability in order to cover their buildings and personal property. However, these policies do not cover any of the tenant’s property or liability. By requiring their tenants to have renters insurance, the apartment owner is assured that the tenants will not mistakenly believe the apartment complex owner’s policy will provide coverage for a tenant’s property or personal liability. Although this type of requirement benefits the apartment complex owner, there are benefits for the renter as well. At Hettler Insurance Agency we recommend you purchase renters insurance regardless of what your landlord requires.
A: Standard renter’s policies cover only you and relatives that live with you. If your roommate is not a relative, each of you will need your own renter’s insurance policy to cover your own property and to provide you liability coverage for your own actions.
Umbrella Insurance FAQs in Texas
A: Yes, there will be a single policy acting as an “umbrella” over all of your other personal liability policies – home, car, boat, RV, etc., so you have a higher personal liability limit, than what would otherwise be available. In certain circumstances, an umbrella insurance policy may provide personal liability coverage that is otherwise excluded from your other policies. For example, an umbrella insurance policy provides coverage anywhere in the world, whereas your car insurance policy usually provides coverage in only the US and Canada.
A: The personal umbrella liability policy is designed to increase your liability protection. This single policy acts as an “umbrella” over all of your other personal liability policies – home, car, boat, RV, etc., so you have a higher personal liability limit, than what would otherwise be available. In certain circumstances, an umbrella insurance policy may provide personal liability coverage that is otherwise excluded from your other policies. For example, an umbrella insurance policy provides coverage anywhere in the world, whereas your car insurance policy usually provides coverage in only the US and Canada.
A: It used to be that the only people who needed personal umbrella liability policies were wealthy individuals, who had sizable amounts of personal assets that would be at risk in a lawsuit.
However, in our very litigious society, even individuals with modest incomes and assets are often subjects of large lawsuits. Since those with modest incomes are even less able to pay damages than a wealthy individual, Hettler Insurance Agency recognizes the need to provide coverage limits greater than what can be obtained from their homeowner insurance or car insurance policies.
A: Even with higher liability limits on auto or homeowners insurance, umbrella coverage can provide an extra layer of protection and may cover certain claims not included in standard policies.