Answers To Your Questions
Here are some frequently asked questions and answers. We want, and need, your feedback. If you have questions about Estabrook & Chamberlain or insurance coverages and products, please let us know. E-mail your question or fax or call us. Fax (508) 697-5809. Call (508) 697-6963.
We will respond to your question promptly. If appropriate, we will add it to this Customer Service page as a service to other customers.
- How do I go about registering a car in Massachusetts?
- Can a newly licensed driver transport any age passenger?
- Why do insurance companies ask for so much information?
- If I have a claim, will my insurance costs immediately go up?
- How do I qualify for a Safe Driver Discount in Massachusetts?
- How do I qualify for a MultiCar Discount?
- What about the Seniors' Discount on auto insurance?
- How does the Mass Transit Discount work?
- How does the Mileage Discount work?
- I understand there's a Safety Features Discount. How do I qualify?
- How is the Auto/Homeowners Discount applied?
- Are you open weekends?
- Do you offer auto registration services?
- Should I use my real estate tax evaluation as a basis to choose the amount of insurance for my home?
- Are your home possessions insured while moving?
- What is a deductible?
- Do I need to save all my receipts in the event of a claim?
- What is the difference between "Comprehensive" and "Collision" coverages for automobiles?
- When my child obtains a driver's permit, must I list him or her on my auto policy?
- Does my homeowner's insurance cover the business I operate from my home?
- What is a "Home Account Discount" and how do I qualify for one?
- What is Long Term Care coverage?
- Does a Homeowners Policy cover earthquake damage?
- If you travel to Canada by car, how do you prove to border guards that you have the required auto insurance?
- How much life insurance is enough?
- Is an ATV (All Terrain Vehicle) covered by my homeowners policy?
- Is flood damage covered by my homeowner's policy?
- What is Mortgage Insurance?
- I am an avid skier. Are my skis covered by my homeowner's insurance against theft when I am at the slopes?
- I am thinking of starting a business in my home. Does my Homeowners Policy cover me?
- What are the basic rules of the road for bicyclists?
- If a tree falls on my car at home, does my homeowner's insurance pay for the damage?
- Can I appeal an At-Fault Accident Surcharge on my auto insurance premium?
- As an independent agent, how does Estabrook & Chamberlain make decisions on what insurance companies to represent?
- Is personal property in my car covered by my auto policy?
- What is the advantage of doing my insurance and investment business at E&C?
- Do we need to buy insurance from a rental car company when we're on our winter vacation?
- How is family auto insurance coverage handled when students are away during
the school year?
- Is there a difference between a homeowner's insurance replacement value figure and the town's evaluation figure for tax purposes?
- We have an RV sitting in our yard. Is it covered for damages by our Homeowner's Policy?
- Does the National Flood Insurance Plan cover basement improvements such as a game room?
- Is my Home Insurance Replacement Value the same as its market value?
- Does my Homeowner's Policy covers other structures on our property?
- What is Ordinance insurance? Why might I need it?
- My wife and I are planning to convert our garage to a business operation. Does our homeowners policy provide coverage?
- Can socio-economic factors be used to underwrite auto policies under the new “managed competition” system?
- Under the state’s new junior operator driving rules, which affect drivers under age 18, what is the penalty for a first-time speeder? system?
- What are the requirements of the new expanded Child Booster Seat law in Massachusetts?
Q. How do I go about registering a car in Massachusetts?
A. You need a title, a bill of sale, and a full description of the vehicle, and the vehicle's current mileage. You also need to pay the insurance downpayment, registration fees, and sales tax. Then you're ready for the Registry; the process should go smoothly.
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Q. Can a newly licensed driver transport any age passenger?
A. No. A newly licensed driver, according to Massachusetts law, cannot transport anyone under 18 years of age. (NOTE: Children driving with learner's permits do not need to be added as listed operators on your insurance policy until they pass their licensing exam.)
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Q. Why do insurance companies ask for so much information?
A. Companies require information that enables them to evaluate the chances of a claim occurring. Favorable information supplied by you, can result in a lower insurance cost. The more favorable the information, the more comfortable a company feels about taking on the risk that is involved.
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Q. If I have a claim, will my insurance costs immediately go up?
A. If you make a claim, you will not normally see a change in your costs. Companies generally focus on the frequency of your claims. If you make several claims within a 3-5 year period, you'll probably impact your costs. Claims are normally made for payment of calamitous events.
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Q. How do I qualify for a Safe Driver Discount in Massachusetts?
A. You can save money if you and any other drivers covered under your policy have not had an at fault accident or moving violation for the past 6 years.
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Q. How do I qualify for a MultiCar Discount?
A. You'll save 5% on your collision and comprehensive coverages when a husband and wife insurance all of their vehicles with the same insurance company.
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Q. What about the Seniors' Discount on auto insurance?
A. Seniors (over the age of 65) can save as much as 25%. The discount is the result of several factors that relate to the age group: less exposure to the pressures of rush hour, commuter traffic; more conservative lifestyles; less driving time and mileage and so forth.
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Q. How does the Mass Transit Discount work?
A. You save money on your car insurance, if you take the train or subway to work. For more details, call or e-mail us.
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Q. How does the Mileage Discount work?
A. If you drive less than 7,500 per year, you may save on certain parts of your car insurance.
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Q. I understand there's a Safety Features Discount. How do I qualify?
A. If your vehicle is equipped with safety devices such as airbags or passive restraint seatbelts, you earn an additional savings on your auto insurance.
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Q. How is the Auto/Homeowners Discount applied?
A. If you have both your auto and your homeowners insurance with us, you may be eligible for a discount of up to 10% on your homeowners premium.
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Q. Are you open weekends?
A. Our office at 45 Main Street in Bridgewater (the historic Revere House) is open from 8:30 A.M. until noon, most every Saturday. Exceptions involve some seasons and the date the holiday is observed.
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Q. Do you offer auto registration services?
A. Yes, we make daily runs to the local Registry of Motor Vehicles office. We do it free of charge. No need for you to spend your valuable time standing in line!
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Q. Should I use my real estate tax evaluation as a basis to choose the amount of insurance for my home?
A. No. The tax evaluation simply reflects the assessor's estimate of the sales value of your home. You want to choose an amount that will allow you to rebuild or restore your home, should a loss occur. You need to determine the cost of labor and materials in today's dollars to do this. We will be glad to appraise your home's replacement cost for you at no charge.
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Q. Are your home possessions insured while moving?
A. This is an important question in this era of the mobile society! The answer is "Yes", but. The "but" is: you are only covered for the perils insured against in your Homeowner's Policy. For broader coverage during a move, consult with us. Your possessions are automatically covered at your new home for 30 days.
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Q. What is a deductible?
A. When a claim occurs, you are required to pay the first portion of the cost to repair or replace the insured property. This fixed amount is the deductible you selected. The insurance company pays the remainder of the claim. Deductibles are used as a method to stretch your insurance dollars. The greater the deductible amount you agree to pay for each claim, the lower your insurance premium. This can sometimes add up to a significant savings. However, you must decide how much of any claim you are willing and able to pay for to determine your deductible. We'd be glad to help you re-assess the deductibles you've chosen to see if they match your current needs.
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Q. Do I need to save all my receipts in the event of a claim?
A. Receipts are helpful in establishing a value for a lost item, but the insurance companies don't require them. In most cases, the insurance company will ask you to compile a list of the lost or destroyed items and their approximate value. The company will then adjust your claim for "depreciation" based on that list. Your best guard against depreciation is choosing the replacement value option on your insurance. We'd be happy to discuss this option and to help you put together a Home Inventory, which can save valuable time and effort in case of a loss.
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Q. What is the difference between "Comprehensive" and "Collision" coverages for automobiles?
A. "Comprehensive" covers all perils except collision. Examples: losses by theft, fire, windstorm, flood, vandalism, falling objects, earthquake, hail, glass breakage, and more. "Collision" covers only one peril...collision. But it is the one peril (don't you love that word) that causes the most damage. That's why it is more expensive.
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Q. When my child obtains a driver's permit, must I list him or her on my auto policy?
A. You don't need to list your child as an operator of your car until he or she actually passes the driver's exam and becomes a licensed driver. A child with a valid permit can operate your car accompanied by a licensed operator up until he or she becomes a licensed driver without being listed. If you have a son or daughter with a permit, please let us know. We have some useful information on young people and their impact on your auto insurance.
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Q. Does my homeowner's insurance cover the business I operate from my home?
A. No. Your homeowner's policy specifically excludes liability for a business conducted at your home. Although your policy provides $2500 of coverage for business personal property on your premises, there is only $250 away from your home. Call us to discuss the specific "Business in the Home" insurance policies you can purchase to protect your business.
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Q. What is a "Home Account Discount" and how do I qualify for one?
A. You can earn a Home Account Discount by having both your auto insurance and your Homeowners Insurance with the same company and the same agent. We have a Home Discount Program that offers a substantial savings on your home insurance. If you would like to know how to take advantage of the savings, call us at (508) 697-6963 or 800-358-1717. Or, E-mail hank@estabrookchamberlain.com and ask for "Home Discount information"
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Q. What is Long Term Care coverage?
A. Long Term Care is the assistance individuals need when they are unable to care for themselves. They need help with Activities of Daily Living (ADLs) such as bathing, dressing, transferring, toileting and eating. And, they may have cognitive impairment. The cost of long term care, even if provided at home, is high. And, most group medical plans and HMOs don't cover long term care expenses. One solution is the purchase of Long Term Care insurance. We offer a disability-based long term care insurance plan through one of the leading insurers in the field. It is available to members of the Cranberry Chamber of Commerce on a group-discount basis. For more information, call Dawn Michael at (508) 697-6963 or 800-358-1717.
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Q. Does a Homeowners Policy cover earthquake damage?
A. The chance of a serious earthquake in Boston or Bridgewater is less than in Seattle or San Francisco that's for sure. But nonetheless, there is some risk. What's more, the solid bedrock that underlies most of the Eastern U.S. is an excellent shock transmitter so that areas far removed from the quake center could be affected.
Your basic homeowners insurance does not cover earthquake damage. In fact, your basic policy specifically excludes coverage for any damage caused by any type of earth movement or shifting. A simple phone call or e-mail is all you need do to add this coverage. We'll immediately add a special earthquake endorsement to your homeowner's policy. The average cost is $75 a year, about $1.44 a week.
Click here to request Earthquake Booklet
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Q. If you travel to Canada by car, how do you prove to border guards that you have the required auto insurance?
A. You need to contact your auto insurance agent and ask for a Canadian insurance card. The card must be stamped and signed by your agent.
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Q. How much life insurance is enough?
A. Interest in life and disability insurance has risen sharply since the events of September 11th. A popular rule of thumb amount cited is 5 times your household income. But it really depends on your overall financial situation and objectives. If you're concerned about having adequate coverage for your family, email Dawn Michael. dawn@estabrookchamberlain.com.
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Q. Is an ATV (All Terrain Vehicle) covered by my homeowners policy?
A. No. Many homeowners mistakenly think their ATVs are covered. A separate ATV policy is required. However, the premium rate for ATV insurance is relatively modest.
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Q. Is flood damage covered by my homeowner's policy?
A. No. Special coverage is required under a separate insurance plan. If your town has flood plain zoning in place, you may be eligible for insurance through a special federal government program.
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Q. What is Mortgage Insurance?
A. It is a life, credit life or disability income insurance policy specifically designed to pay off the unpaid mortgage loan balance or make the monthly payments on a mortgage, if you are injured, ill or die.
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Q. I am an avid skier. Are my skis covered by my homeowner's insurance against theft when I am at the slopes?
A. Yes. But the loss amount that is paid is subject to a deductible. You may want to consult with us on this. In any event, it pays to safeguard your valuable skis wherever they are!
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Q. I am thinking of starting a business in my home. Does my Homeowners Policy cover me?
A. If you have a home-based business, you should review your insurance needs immediately. You have three choices: (1) endorsements to your homeowners policy so that your business equipment and liability and business interruption protection needs are met; (2) a special in-home business policy; or (3) a small business owners package policy.
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Q. What are the basic rules of the road for bicyclists?
A. They are valid road users and have all the rights and responsibilities of other vehicle drivers. They must drive on the right with the flow of traffic and use proper hand signals before making a lane change or turning.
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Q. If a tree falls on my car at home, does my homeowner's insurance pay for the damage?
A. No. At home or away from home, you are only covered if you have comprehensive coverage on your automobile policy.
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Q. Can I appeal an At-Fault Accident Surcharge on my auto insurance premium?
A. Yes. If you believe you were not more than 50% at-fault, you may appeal to the Board of Appeal located at the Division of Insurance, Boston. The filing fee is $25. You must appeal within 30 days from the receipt of your Surcharge Notice; otherwise you will lose your right to appeal.
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Q. As an independent agent, how does Estabrook & Chamberlain make decisions on what insurance companies to represent?
A. The key factors are: (1) financial strength and stability of a company; (2) types of markets served (home, auto, business, special properties, etc.; (3) competitiveness (range of coverages offered, pricing levels and overall cost-value of policies); (4) quality of claims service provided to our customers.
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Q. Is personal property in my car covered by my auto policy?
A. The normal answer is no. You'd have to file a claim for stolen or damaged personal items such as compact disks, luggage, clothes and sunglasses on your home insurance. And if you regularly transport expensive items such as computer equipment, you should contact us about buying a floater on your home insurance to provide the proper amount of coverage.
NEW in 2008! As the result of the "managed competition" change in MASS. automobile insurance, one of our companies, Commerce Insurance, has introduced an AAA Member Package Endorsement to their auto insurance policy that offers limited replacement cost coverage for loss or damage to a laptop computer and personal belongings damaged in an accident. For details about this coverage, contact us.
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Q. What is the advantage of doing both my insurance and investment business at E&C?
A. Both services involve your overall financial security and well-being (asset protection and asset building.) In addition to one-stop convenience, we believe we offer the benefits of well-coordinated strategies, more product choices and personal local service.
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Q. Do we need to buy insurance from a rental car company when we're on our winter vacation?
A. If you have collision and comprehensive insurance on your personal auto, you automatically have the same coverages, subject to your deductible, under the physical damage insurance. You are NOT covered, however for the soft costs. That is, your personal policy will not pay for any lost business income for the rental car company while their damaged vehicle is being repaired. We recommend that you buy the insurance from the rental company.
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Q. How is family auto insurance coverage handled when students are away during the school year?
A. All household members need to be listed as operators of family vehicles. While students are away at school, they may be excluded as operators. A signed exclusion form needs to be filed. This saves premium dollars for the parents. But they must remember to call us and add back student operators during holiday breaks, spring break, summer, etc.
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Q. Is there a difference between a homeowner's insurance replacement value figure and the town's evaluation figure for tax purposes?
A. Absolutely! There is also a difference between your home's market value figure and insurance value. Your insurance value is based on the cost of replacing losses to physical property structures and possessions only. Land value is excluded.
NOTE: You may want to check with us about the current replacement value amount in your homeowner's policy. A 2004 report by a leading insurance valuation authority reported that 61% of all American homes were undervalued by an average of 25%.
Two major reasons: rise in construction costs, failure to report home improvements and additions to insurance agents.
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Q. We have an RV sitting in our yard. Is it covered for damages by our Homeowner's Policy?
A. No! For example, if a tree or limb falls and damages your RV, you are not covered by your homeowner's policy. Physical damage is not automatically covered. An RV must have specific collision and comprehensive insurance to pay for damage losses. Call us for more information about the benefits and cost.
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Q. Does the National Flood Insurance Plan cover basement improvements such as a game room?
A. No. Flood insurance does not cover finished walls, floors, carpeting, and personal belongings. It does cover your foundation. Also, functional items such as plumbing, furnace, water heater and circuit breakers are covered under your policy's building coverage. Other limited items such as a washer and dryer or a freezer are covered under your policy's contents coverage, which must be purchased in addition to building coverage.
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Q. Is my Home Insurance Replacement Value the same as its market value?
A. An emphatic NO! Your Home Replacement Value relates to what it would cost to rebuild your home if you had a total loss of the insured structure(s). This figure, of course, does not include the land value. Market value relates to your home's worth to prospective buyers. Assessed value is determined by your local community for property tax purposes.
NOTE:If you haven't had a Home Insurance Replacement review recently, call us. We provide a free review service.
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Q. Does my Homeowner's Policy covers other structures on our property?
A. Yes, BUT the standard limit of coverage is 10% of the amount of insurance on your main house. If your house is insured for $200,000, your other structures are covered up to $20,000. Other structures include: your garage, sheds, pool, fences et al. What would it cost you to replace "other structures?" You may want to increase your limit to fit their replacement cost. If so, call us.
NOTE: If you haven't had a Home Insurance Replacement review recently, call us. We provide a free review service.
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Q. What is Ordinance insurance? Why might I need it?
A. Good question, this is a relatively unknown but critical coverage for homeowners. If you have damage to your house and it requires substantial reconstruction, your local building inspector will require the work to be done according to the latest building codes. For example, you may need to install a costly new wiring system.
Insurance companies only pay for a dwelling to be rebuilt in its original condition. They will not pay for upgrades which can cost hundreds of dollars.
The answer is Ordinance insurance. It is an inexpensive endorsement to your home insurance policy. We recommend it.
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Q. My wife and I are planning to convert our garage to a business operation. Does our homeowners policy provide coverage?
A. No. Business operated in a building, garage, shed or barn on a homeowner’s premises is excluded from coverage by the homeowner policy.
You will need to buy a business policy to cover property and liability insurance needs. Policies for small businesses are commonly referred to as BOPs (Business Owner Policy). In addition to basic coverage for losses caused by fire, theft, damage to property, liability claims, etc., you can add coverage for special risks. For example, business interruption coverage which provides income if you are unable to operate because of a fire or other catastrophe.
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Q. Can socio-economic factors be used to underwrite auto policies under the new “managed competition” system?
A. The regulation bans the use in rating of sex, marital status, race, creed, national origin, religion, occupation, income, education, homeownership, and age as against public policy. The one exception: drivers age 65 and over will continue to receive a discount.
The Insurance Commissioner has set similar bans in the use of underwriting based on age, sex, race, occupation, marital status or principal place of garaging; nor should companies use education or home ownership in underwriting.
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Q. Under the state’s new junior operator driving rules, which affect drivers under age 18, what is the penalty for a first-time speeder system?
A. 90-day license suspension. In addition, the junior operator must pay a $500 reinstatement fee, take an “attitudinal retraining course,” retake the Registry’s driving test, and pay the speeding ticket.
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Q. What are the requirements of the new expanded Child Booster Seat law in Massachusetts?
A. The new law, which goes into effect in mid-July, requires children to ride in either car seats or booster seats until they turn 8. There is a $25 fine for failure to comply. One exception: children at least 4 feet 9 inches tall are exempt. The purpose of a booster seat is to make sure that safety belts are properly positioned across the child’s waist and shoulder.
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YOUR QUESTIONS ABOUT THE NEW MASS. AUTO
‘MANAGED COMPETITION” SYSTEM ARE WELCOMED.
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