Comprehensive coverage is physical damage coverage to the insured’s covered auto. To understand Comprehensive coverage you must first understand Collision. Collision is defined as a loss due to impact of the insured auto with another object or vehicle and includes the upset of the insured vehicle. Comprehensive is often referred to as Other Than Collision because it would pay almost every other type of direct, accidental loss to the vehicle other than collision (as long as it is not excluded by the policy).
Some examples of losses that would be considered Comprehensive losses are:
- Hail, water, or flood
- Contact with a bird or animal
- Glass breakage
Comprehensive coverage is not included on a standard auto policy. You must pay an extra premium for it. If you have a comprehensive loss then you will be subject to a deductible before insurance will kick in. It is highly advised that you include this coverage on newer vehicles. The older the vehicle gets, the less the coverage may benefit you.
There is a lot of confusion in the consumer world on whether or not they have to pay a deductible in the event of a glass breakage claim. Glass breakage falls under comprehensive coverage. Comprehensive coverage generally comes with a deductible (what the insured will pay before insurance kicks in).
Whether or not you must pay a deductible on glass claims largely depends on the state in which you are insured or the insurance carrier you are working with. In the state of Kentucky there is no deductible for glass breakage claims regardless of the insurance carrier. However, the damaged vehicle must carry comprehensive coverage at the time of loss.
Other states may be subject to deductibles for glass breakage; however, some insurance carriers do offer full glass coverage (no deductible) as an additional coverage on their policies. Consult with your agent if you have additional questions regarding how your policy reads.
The main purpose of insurance is to protect you from catastrophic risks like fires, hail, and wind storms. Insurance is not designed to cover wear and tear or to act like a home maintenance policy. Claims that arise from maintenance issues will likely not be covered by your insurance carrier. The best way to avoid that situation is to maintain your home and lessen the chance of those losses from occurring. We have compiled a list of maintenance tips that could save you from future headaches and prevent major losses!
- Prevent fire damage by regularly checking and cleaning the lint trap and exhaust duct in your dryer. Over time, ling can build up. As it heats, it increases the likelihood of a fire.
- Inspect & clean chimneys to prevent fire or dangerous fumes from entering your home.
- Inspect your roof regularly and repair any damage. Look for lifting shingles, missing shingles or damaged shingles.
- Clean gutters and downspouts. Clogged gutters cause water to sit at the foundation of the home. This can lead to seepage which is not covered by your homeowners policy.
- Inspect your deck. Replace rotting or damaged wood. Ensure that the support posts are still sturdy and attached properly.
- Regularly check on pipes and plumbing fixtures looking for cracks and leaks. If you do undergo a water leak, turning off the water as soon as possible will prevent further damage.
- Maintain pest control. You don’t necessarily have to pay for monthly or quarterly visits but the cost of termite and pest damage can be extensive if not detected early.
- Seal possibly water entry points. Where water enters, water damages. Sealing off windows, doors etc. with caulk or the like can prevent water from entering your home in unwanted places.
Many people feel that insurance is a “necessary evil” because their premiums continue to go up every year. They turn in small claims but have to pay a deductible. Once they pay the deductible the insurance portion is minimal. So why bother?
Rule # 4- Sometimes a small loss is worth taking.
This rule appears to be counter intuitive. A loss, no matter what the size, is unpleasant. It seems that common sense would say that no loss, no matter how small, is acceptable, if instead it could be paid by an insurance company. But you have to understand that insurance is designed to protect against catastrophes. It is not designed to be a maintenance policy. You are better off paying small frequent losses out of your pocket. If you increase your deductible, you can help yourself in a couple of ways. First, it will decrease your premiums. Secondly, by turning in less small claims, your cost of insurance will be reduced over the long run. The summation of this rule is that insurance is most effective when it is used to protect against large unexpected losses.
The purchase of insurance is to protect you from catastrophic loss but you also want to protect you and your family in the most economical manner possible.
Rule # 3- Don’t Risk A Lot For A Little
Sometimes, when you do your risk evaluation, the potential loss is big, but the cost of insuring against it is cost prohibitive. Take Long Term Care insurance; the potential cost of nursing care is very large, but if you have health problems and are over 75 years old, then the cost of insurance is probably too expensive. But, there are many circumstances where there is potential for a very large loss, but the cost to cover it is minimal. An Umbrella policy, for instance, provides catastrophic liability protection. A $1,000,000 policy might cost a couple hundred dollars a year. (You can get a much higher limit of Umbrella coverage if needed.) In essence, the third rule states that there should be a reasonable relationship between the risk of the loss that is transferred to the insurance company and the cost involved in transferring the risk.