Is Car Insurance Different for Leased Cars?

All motor vehicles being driven on public roads in NC are required by law to be covered by at least a minimum amount of vehicle insurance. This includes liability protection and protection against losses from injuries resulting from an accident caused by an uninsured or underinsured driver. Liability coverage is meant to protect the other drivers involved in an accident for which you are deemed responsible. It can help pay for their losses resulting from physical injury or damaged/destroyed property. Greensboro car insurance liability coverage does nothing to protect you from losses such as personal injuries or damaged, destroyed or stolen vehicles.

To be protected for these losses you must add more to the basic liability coverage found in a minimal Greensboro car insurance policy. For more complete protection you need to at least add collision and comprehensive coverage to your policy. There are other protections you may choose to add, but these three – liability, collision and comprehensive – should be at the top of your list unless your car is of such low value you can't justify the additional cost of adding this coverage.

Buying Versus Leasing Insurance Requirements

Whether you're buying a car, using a car loaner or leasing a car, insurance requirements are similar. The specifics of the coverage are dictated by the lender or the lessor, with their main concern making sure their financial exposure is protected in the event that something unexpected  happens to your car. With this in mind, you'll be required to have full coverage in place, including collision and comprehensive protection.

As with all cars being driven on NC public roads, you must carry at least the minimum amount of liability protection. It's worth mentioning here that the State's minimum liability requirements are low and would typically only cover a small fraction of the money you'd need to pay for losses you cause to others in an accident deemed your fault.

Gap Insurance

One other type of protection leasing companies typically require is something called gap insurance. New cars start to depreciate in value the minute they're driven off the lot. A new car may depreciate in value as much as 20% or more during the first year. If you have an accident and total your leased car early on, the payoff from your insurer may not be enough to cover your outstanding financial obligation. Gap insurance will cover this shortfall and can be purchased from your loan officer.

Does Homeowner's Insurance Cover Water Lines?

Your Greensboro homeowners insurance policy is designed to cover a great number of perils, however, it may also not cover some things that you assumed it might. Coverage of damaged water lines is something that may or may not be covered, depending on certain conditions. These conditions can best be understood by carefully reading your policy and, if you're unclear about anything you read, getting together with your insurance agent or broker for a detailed explanation.

Sudden and Unexpected

One important phrase that likely applies as a condition in your Greensboro homeowners insurance coverage is “sudden and unexpected.” As a condition to any acceptable insurance claim, the event causing the damage must first be determined by your insurer to be both unexpected and sudden. This may include water damage resulting from a burst water pipe or a ruptured water heater, but with certain exceptions. Here are some examples of home water damage that are probably not covered by a standard homeowners insurance policy:

• A leak that's the result of wear and tear or old age
• A leak that's the result of lack of maintenance, such as one that started out slowly but was allowed to progress unattended
• Water damage that could have been prevented, such as frozen pipes that burst inside your home because the heat was turned off during cold weather while you were away
• A flooded or backed up sewage system is typically not covered
• Water damage or water line damage caused by ground water or flooding is typically not covered by your standard Greensboro homeowners insurance policy, although specialized flood insurance may be purchased separately

Two Types of Coverage in Your Policy

Sudden and unexpected damage caused by a burst water line or pipe within your home will likely be covered by your insurance policy and the claim may fall under two different sections of your coverage. If a wall, floor, ceiling or any other part of your home's structure is damaged and requires repair, your dwelling coverage will likely help pay for the needed repairs.

If you have personal property that becomes damaged as a result of a water event that's deemed a covered peril, it will be the personal property coverage in your policy that will help repair or replace the damaged items. This could be a computer or electronic sound system, furniture, clothing or other items susceptible to being damaged or destroyed by water.

What Is a Certificate of Insurance?

A Certificate of Insurance, or COI, is a document issued by your insurance company to provide proof of insurance coverage. A COI not only verifies the existence of current insurance coverage but also recaps the basic conditions and key aspects of the policy. A standard Certificate of Insurance includes these details:

• Policyholders name
• Policy's effective dates
• Type of coverage
• Policy limits

Who Needs to Have a Certificate of Insurance?

A COI is similar to a Proof of Insurance card for your vehicle – something you may be required to produce if you're ever pulled over by the police or involved in a car accident. A COI is something you'll want to have on hand if you're involved in a business that provides a service or performs work where there's a potential for being held liable.

In reality, every business out there needs to have business insurance in place, especially liability coverage, but not every business owner will be called on to produce their COI as proof of their insurance coverage.

More likely, companies that do jobs outside of their office should have a COI on hand, ready to show to a customer hiring them or considering having them do some work. If, for example, you're hiring a local company to reroof your home or to build a backyard fence, you want to know they have the ability to cover the cost of a liability claim.

Anyone you hire to do work where someone could get injured or lose money should be insured, and asking for a look at their COI will be evidence of said insurance. If they can't produce this proof of insurance, you may be better off hiring someone who can.

A contractor undertaking a significant job should have a current COI, and any subcontractors hired for the job should also be able to produce proof of insurance.

Reasons Why Certificates of Insurance are Important

• A COI summarizes your insurance status on one simple form, without the need to produce an entire insurance policy. Often, companies seeking bids will require one as part of the bidding package.
• Carefully documenting the insurance coverage of your subcontractors and third-party vendors covers your need of having essential insurance coverage to protect yourself in the event that something goes wrong.
• A COI is a convenient way of proving you're insured and can save you time and trouble when seeking jobs.