Frequently Asked Questions

Please feel free to contact our office if you have any questions

Homeowners Insurance:

Q.  Why does the dwelling amount on my homeowner's policy increase every year?
A.  Most homeowner's policies have an inflation guard endorsement. The dwelling amount on the policy will increase by a certain percentage to keep up with inflation.

Q.  Does my homeowner's policy cover a flood?
A.  No, a homeowner's policy does not provide flood coverage. This coverage needs to be covered under a separate flood policy.

Q.  How do I know what amount of insurance to carry on my home?
A.  The amount of insurance coverage is based on the replacement cost of your home, not tax value or market value (which each include the value of your land).  We can work with you and have you complete a questionnaire that will help determine the correct replacement value of your home.

Q.  Are there exclusions I should know about?
A.  Exclusions listed and defined in your policy might include neglect, intentional loss, "earth movement," general power failure, and even damage caused by war. If you fail to take care of your property (e.g., a leaky roof), you might not be covered. Obviously, if you intend to lose an object or damage your property, there's no coverage.  Damages resulting from Flood or Earthquake are not covered.  

Q.  As a renter, does my landlord's insurance protect me?
A.
  Generally, no. The property owner's insurance covers the building itself and seldom a tenant's possessions or liability. Clarify this with your landlord before signing a lease.

Personal Auto Insurance:

Q. Will my deductible apply?
A.  You will always pay your deductible unless you are not at fault in an accident and you can identify who has caused the damage.  

Q.  What is comprehensive?
A.  This Part is not a substitute for Collision (Part 7) or Limited Collision (Part 8). In Massachusetts, a big benefit of having comprehensive coverage is that non-collision related vehicle glass damage is repaired without being subject to your comprehensive deductible.  In rare cases, a client may choose a separate glass deductible which would then apply.  The following types of losses are Comprehensive and not Collision losses:  losses caused by vandalism, fire and theft, missiles, falling objects, larceny, explosion, earthquake, windstorm, hail, water, flood, malicious mischief, riot or contact with a bird or animal.  

Q.  What is full coverage?
A.  Full coverage means different things to different people. There is no definition of "full coverage" You will need to discuss coverage in detail with your customer service representative.

Q.  If someone borrows my car, will my insurance cover them?
A.  Yes, they will be covered in most cases as long as they are not a regular driver.  If they drive your vehicle on a regular basis or they are a licensed household member, they will need to be added as a driver to your policy.

Q.  How do I cancel an auto policy?
A.  Insureds can cancel auto policies by:  returning the license plates to the registry of motor vehicles, by a notice of transfer from another agent or company or through the MassDOT website.  At Gaudette, we are able to return those plates for you through our on-line connection with the RMV.

Business Insurance:

Q. Can I let someone else drive my business vehicle?
A.  Yes, the coverage on a business auto policy follows the vehicle.  Any driver is covered as long as they have permission from you.

Q. What is an Umbrella Policy?
A.  An umbrella policy serves two purposes.  First, it provides excess liability over the scheduled underlying policies.  Second, it fills some gaps in the underlying coverage.  For more information, click here.  

Q.  What is Fire Damage Liability?
A.  Fire Damage Liability coverage is included within the General Liability policy at no charge.  This coverage applies to fire damage for premises that are rented or temporarily occupied by the named insured.  

Q.  Do I need Professional Liability Insurance?
A.  Professionals that operate their own businesses need professional liability insurance in addition to an in-home business or business owner's policy.  This protects them against financial losses from lawsuits filed against them by their clients.  Professionals are expected to have extensive technical knowledge or training in their particular area of expertise.  They are also expected to perform the services for which they were hired, according to the standards of conduct in their profession.  If they fail to use the degree of skill expected of them, they can be held responsible in a court of law for any harm they cause to another person or business.  When liability is limited to acts of negligence, professional liability insurance may be called "Errors and Omissions" liability.