Commercial or Personal Auto: Which is Right?

If, like many Americans, your family car is also used for purposes that could be considered commercial use, you may want to steer yourself into a chair and look over your insurance policy.

You'll need to consider buying a commercial policy or make sure your existing policy covers the vehicle for business use.  Every company has different guidelines and may surcharge for business-use coverage on a personal auto policy.

One thing to keep in mind when determining if you should have a commercial auto or personal auto policy is that it isn't where you drive, but why you are driving:

• Are you a sales manager who visits different stores/locations within your region?
• Are you delivering pizza or other goods to customers?
• Do employees drive your vehicle?
• Do you drive people for a fee?  (Rideshare such as Uber or Lyft)
• Does your vehicle have commercial license plates?
• Do you haul equipment such as trailers, ladders, etc. in or on your vehicle?
• Do you need more liability coverage than a personal auto policy provides?  
• Do you need special coverage for situations encountered while conducting business?  

If you are think that you might need a commercial auto policy, or have questions about what is covered under your personal auto policy, please give your helpful Absolute Insurance agent a call today at 515-279-2722 or email us at service@insaia.com.

What is the benefit of insuring an item as Scheduled Personal Property?

We often include reminders in our newsletter about adding jewelry and other items as Scheduled Personal Property, or SPP, to your Homeowners, Renters, Dwelling, or Condo Insurance Policy.  Have you ever wondered how SPP is different than the regular contents coverage included on your policy?

While your typical homeowners policy includes limited personal property coverage for the contents of the home, sometimes there are limits placed on certain categories of valuable covered items.  For example, a homeowner insurance policy might have a $1500 sub-limit on jewelry.  If you had a loss for a necklace valued at $400, you would probably be fine getting it covered under your homeowners insurance policy (assuming it was lost under a covered peril), but if you had a necklace worth $5700, you would most likely only be covered up to that $1500 policy sub-limit.  Many homeowners choose to seek additional coverage through a scheduled personal property endorsement to their policy.

Scheduled Personal Property also provides broader coverage for the scheduled items.  For example, if your wedding ring drops down the drain while you are washing dishes it may not be covered unless it is included as a Scheduled Personal Property item on your policy.  Also, if a loss were to happen to a SPP item, the policy deductible doesn't apply. 

What types of items can be added as SPP?
• Jewelry
• Musical Instruments
• Art
• Stamp or Coin Collections
• Cameras
• Furs
• Computers
• Silverware
• Golf Equipment
• Firearms
If I have an item I want to add as Scheduled Personal Property to my policy, what do I have to do?
Each item that is added as Scheduled Personal Property to a policy is listed individually and needs to be appraised before they are added.  If it is a recent purchase, the receipt might work in place of an appraisal.  Please contact your Absolute Insurance agent at 515-279-2722. 

Spring is Here! Time to Prep the Basement......

This past winter was certainly one to remember and one that brought with it a new vocabulary phrase: "Polar Vortex"! With Spring finally arriving, we have different concerns than frozen pipes and ice dams. Here at Absolute Insurance, we understand the risks associated with bad weather on your home and want to remind everyone to check your sump-pump to ensure it is still operational after this harsh winter. Also, check your home insurance to make sure you have Back-up coverage.

Water Back-up of Sewers and Drains is an optional endorsement on a standard home insurance policy. This endorsement provides coverage in the event of water or sewage backing up through the drains or in the event of sump pump failure. This is important as none of these are covered perils on a standard policy. Many companies will not allow a client to add this coverage during the policy term but it can be added at the time of renewal. Other companies will have a 30 day waiting period before the coverage takes effect.

The coverage provided is broad in nature and will cover contents, structural damage, and clean up. Some companies have different deductibles for this type of coverage other than the Named Perils deductible shown on the Declaration page of your Home Insurance Policy. There are some companies, however, that maintain the same deductible across the board.

Contact your Absolute Agent for further coverage questions and deductible options if you already have the Water Back-up of Sewers and Drains endorsement in place. As always though, it is far better to prevent these situations then dealing with them down the road.

You've Got Some Q's: We've Got the A's

Q:  I am a pizza delivery driver and I hit another vehicle.  My policy will cover the damage, right?

A:  NO.  A personal auto policy will not cover a vehicle being used for delivery purposes.  The same policy will also not cover paid-for snowplowing or people transportation (i.e. taxis).

You would need to have a commercial auto policy in order to cover this vehicle and the liability properly.

If you engage in these types of business, call your Absolute Agent today to ensure you have the right policy!


Q:  I failed to pay the renewal, but companies have a grace period, right?

A:  NO.  If the renewal payment has not been paid, then there is no coverage at that moment.  There are no grace periods on renewal payments as the policy period has expired.  These are handled differently than regular monthly bills that do have a short grace period.


Q:  How often should I get my jewelry appraised in order to keep it as a separate rider on my insurance policy.

A:  You'll want to get such things appraised about every 3-5 years.  This is in your best interest as the price of gold and precious metals and stones have increased drastically over the past 2 years.  For instance, if you had a ring appraised in 2002 and it came to a value of $2,000 and now it would appraise at $10,000 in order to replace, then the company would only be responsible for providing the $2,000 in coverage.  As you can see, given the vast increases in value on these types of things, it is very important to update these every 3-5 years.

You've Got Some Q's: We've Got the A's

Q:  My wife lost her wedding ring while we were on vacation.  Is this covered under my house insurance?

A:  No.  It would have to be stolen in order to be covered UNLESS it was scheduled on the home policy as "Scheduled Personal Property"


Q:  A tree has landed on my house and has caused damage to my home.  Will insurance replace the tree?

A:  No.  Home insurance protects your home and detached structures.  Trees are not covered.


Q:  My vehicle was broken into and personal property was stolen, is this covered under my full coverage auto insurance?

A:  No.  Only items that were attached to the vehicle as stock items are covered.  Personal property losses would only be covered under a home, renters, condo/townhome, or mobile home policy.  Auto insurance never covers personal property.


Q:  Water came up through my sewer drain and destroyed my roommate's belongings.  Will my homeowners insurance cover this?

A:  No.  Your home insurance will cover only those things belonging to you or a family member.  Unless you have Water Back-up coverage, your home insurance would not even cover your belongings.  In this situation, your roommate would need to get a renters insurance policy to cover their belongings in an event of a loss, and in this situation, they would also need to have the renters insurance policy endorsed with the Water Back-up of Sewers and Drains coverage in order to be protected.

Spring Time Fun: Insurance for Toys

Insurance is not like the old one size fits all ball cap.  Rather, people with specialized needs will want to get a policy that provides coverage for those needs in specific.  Often times, especially with boat insurance, it is often overlooked or attached to a homeowners policy to cover liability, however, often times this is truly basic coverage that may not suit your situation.

Most often, it is better to separately insured your toys with specialized policies that can provide coverage for Custom Parts and Equipment or to add coverage to possible belongings, such as fishing equipment on a boat owners policy.

Much like an auto insurance policy, special coverage can be purchased for towing, roadside assistance, and rental reimbursement on many specialty lines products including motorcycle, RV, ATV, boat, and personal watercraft.

Another important, and often times, neglected coverage comes by way of the RV, with an optional replacement cost endorsement (if new) and vacation liability coverage.  These can be added to your specialty lines insurance coverage at reasonable cost and leave you worry-free.

We understand that these aren't just toys, they are a way of like.  Your life.  We pride ourselves in partnering with companies that hold this same view and offer competitive rates for specialty claims centers with representatives trained specifically to handle your custom needs.

Call your Absolute Agent for further details on coverage and rates.

Earthquake Coverage

While we don't live in California, with a constant barrage of information, warnings, and occurences, it is not unknown to the Midwest to have devastating earthquakes occur.

The fault line that we are most concerned with in this region of the US is the New Madrid fault line.  This fault line and Seismic Zone runs between St. Louis and Memphis.

According to some "Danger Zone" maps, most of Iowa would feel the seismic activity while indoors, while Southeastern Iowa could actually have unstable objects overturned.

While it may not lead to the same type of damage seen in California, a substantial amount of property damage could very well be evident in or around Iowa.  Unfortunately, earthquake coverage is not an automatic coverage on your homeowners policy.  It is an endorsement that can be added to your policy and normally functions with a percentage deductible.  By this, a person can have earthquake coverage at a 5% deductible, where the percent derived from your total dwelling coverage.  For example, if your home is insured to $100,000, your 5% deductible would be $5,000.

The cost of this endorsement ranges from company to company along with deductible options but is typically between $40 - $80 per year for this additional coverage being added to your existing homeowners policy.  Call your Absolute Agent for further coverage details.

Water Back-up of Sewers and Drains

As spring rolls in to an already saturated Iowa, make sure you know your risk for Water Back-up of Drains.

Water Back-up of Sewers and Drains is an optional endorsement on a standard home insurance policy that provides coverage in the event of water or sewage backing up through the drains or in the event of sump pump failure.  Neither of which are covered perils on a standard home insurance policy.

Typically, the cost for this coverage ranges between $40-$80 per year per $5,000 in coverage and some companies require that a sump pump be present in order to secure this type of coverage.  Also, many companies will not allow a current client to add the coverage during the term of the policy.  In these cases, it can be added at the time of renewal.  Other companies will have a 30 day waiting period before the coverage takes effect after the endorsement is issued.

The coverage provided is broad in nature and will cover contents, structural damage, and clean up.  Some companies have different deductibles for this type of coverage from the Named Perils deductible that shows on the Declaration page of your Home Insurance Policy.  There are some companies, however, that maintain the same deductible across the board.  Contact your Absolute Agent for further coverage questions and deductible options if you already have the endorsement in place.

Scheduled Personal Property Coverage

This blog post focuses on Scheduled Personal Property (SPP) and how to insure it properly for the full replacement value.

As most readers already know, your home insurance covers personal property at a certain percentage of your dwelling coverage.  This percent is usually set at 70%, so if you have a $100,000 policy on your home, then your contents are covered up to $70,000.  While this is good coverage, there are limitations placed on certain types of property.  These types of property include (but not limited to):

• Jewelry
• Guns
• Artwork
• Antiques
• Currency

Some of these limits are as low as $1,500 in total per class of items.  Also at stake when looking at these items is that they will fall under the total household deductible.  By this, if your $5,000 wedding ring was stolen, then the company would pay up to the $1,500 minus your deductible (nowadays, a standard home insurance deductible is $1,000).  By this, you would not be able to replace the ring with like kind and quality.  An easy way to get these to replacement value is to get an appraisal for each item that would exceed (or come close to) the limit and get it over to your Absolute Agent.  Not only will the pieces be insured to that value, but they would have a separate deductible of your choosing.  Give us a call today.