Insurance questions, answered
Each question has one short answer, checked against the sources listed with it. Follow a question to the guide that covers it in full. These answers are general information, not advice about your policy; your policy wording and your state’s rules decide what applies to you.
Insurance basics
- Why did my insurance premium go up? Premiums can rise at renewal even if you didn’t file a claim. Common reasons include higher costs to repair cars, rebuild homes,...
- What is an insurance deductible? A deductible is the amount you pay toward a covered loss before your insurance pays. For example, with a $500 deductible and...
- How do I choose an insurance deductible? Choose the highest deductible you could comfortably pay on short notice, then check whether the premium savings are worth the extra risk....
- How do I compare insurance quotes? Compare the coverage before the price. Check that each quote has the same coverages, limits, deductibles, and add-ons, and note what each...
- How can I check if an insurance agent is licensed? Look the agent up in your state insurance department’s license search using their name or license number. The results show whether the...
Home and flood insurance
- What is the difference between replacement cost and actual cash value? Actual cash value pays what damaged property was worth when it was damaged: the cost to replace it minus depreciation for age...
- Does homeowners insurance cover flooding? No. Standard homeowners and renters policies generally don’t cover damage from flooding, including storm surge and overflowing rivers. Flood coverage is sold...
- What happens to flood insurance if the NFIP lapses? Existing National Flood Insurance Program policies stay in force until they expire, and claims on them are paid. During a lapse, new...
Life insurance
- How much life insurance do I need? Enough to cover what your household would need if you died, minus what’s already available. A common way to estimate it is...
- What is the difference between term and whole life insurance? Term life insurance covers you for a set period, such as 10, 20, or 30 years, and pays only if you die...
- How do I find out if someone who died had life insurance? Start with the free NAIC Life Insurance Policy Locator, which asks participating life insurance and annuity companies to check their records using...
Claims and complaints
- What should I do if my insurance claim is denied? Get the denial in writing and find the exact reason and the policy language the insurer relied on. Compare that with your...
- What can I do if my insurance claim is taking too long? Ask the adjuster in writing what is still needed and when you can expect a decision, then send any missing documents promptly....
- How do I file a complaint against an insurance company? Start by contacting your insurer, explaining the problem, and asking for its decision in writing. If that doesn’t resolve it, file a...