Frequently Asked Questions (F.A.Q.s)
BODILY INJURY INSURANCE

General Information Regarding Insurance Providers

Q: Why should I choose a specialized agency like BODILY INJURY INSURANCE over a large national carrier?

A: Large national carriers often focus on providing the lowest possible premium, which frequently means offering dangerously low liability limits. BODILY INJURY INSURANCE specializes in high-net-worth protection and understands the severe risks posed by inadequate bodily injury liability coverage. We prioritize protecting your assets—your home and savings—over simply quoting the lowest price.

Q: What is the most critical factor to consider when purchasing or reviewing my insurance policy?

A: The single most critical factor is your Personal Liability Limit (or General Liability Limit). This is the amount your insurance company will pay to cover legal defense, settlements, and judgments if you are sued for causing injury or property damage. If this limit is low (e.g., $100,000 on a home policy), the rest of your assets are exposed to catastrophic loss.

Q: Does BODILY INJURY INSURANCE service my area?

A: Yes. We proudly serve residents in and around our Katonah office, including the communities of Katonah, Bedford, Somers, Bedford Hills, Mount Kisco, Chappaqua, Mahopac, North Salem, South Salem, and Carmel.

Home Insurance Coverage

Q: How is my Home Insurance Coverage calculated, and why is "Replacement Cost" so important?

A: Your Home Insurance Coverage (Coverage A) is based on the replacement cost—the amount it would cost to rebuild your home entirely from the ground up today, including labor and materials. It is crucial to use the true replacement cost, not the market value of your home, as underinsuring your dwelling can leave you unable to rebuild after a total loss event like a fire.

Q: Why are my Personal Liability Limits (Coverage E) on my home policy so important?

A: Coverage E (Personal Liability) protects you if someone is injured on your property and sues you for damages. If your limit is low (e.g., $100,000) and a serious injury results in a $500,000 judgment, you are personally responsible for the remaining $400,000. We recommend significantly higher limits to protect against a catastrophic lawsuit that could result in losing your home.

Q: Does my Home Insurance cover structures like detached garages or sheds?

A: Yes, this is covered under Coverage B (Other Structures). You should ensure the limit assigned to this coverage is sufficient to rebuild or repair any detached structures, such as fences, sheds, or a detached garage, located on your property.

Auto Insurance Coverage

Q: What is the danger of carrying the New York State Minimum Auto Liability Limit?

A: The New York State Law Minimum for liability is often as low as $25,000 per person and $50,000 per accident. In any serious auto accident involving significant bodily injury, these minimum limits will be quickly exhausted. If you own a home or have other assets, a court can legally pursue them to cover the difference, potentially leading to you losing your home or pension.

Q: What are BODILY INJURY INSURANCE's recommended Auto Liability Limits?

A: We strongly recommend limits of $250,000 to one person and $500,000 to two or more people, along with $100,000 for Property Damage Liability. These limits offer a far more realistic level of protection against today's litigation costs and help shield your personal assets.

Q: How do younger drivers affect my Auto Insurance exposure?

A: Younger, inexperienced drivers significantly increase your risk profile. While we can help structure coverage, we advise clients to make every effort to get younger drivers off their primary policy and onto their own insurance as soon as possible to reduce the risk of a catastrophic claim against the household’s assets.

Umbrella Insurance Coverage

Q: What is the main purpose of Umbrella Insurance Coverage?

A: Umbrella Insurance Coverage is the ultimate layer of protection for your net worth. Its main purpose is to provide additional personal liability protection that sits above the liability limits of both your Auto Insurance and Home Insurance policies. It protects you from multi-million dollar judgments that would otherwise wipe out your savings and assets.

Q: When does my Umbrella Policy actually begin to pay out?

A: The Umbrella Policy begins to pay out only after the underlying liability limits of your primary policy (e.g., $500,000 on your auto policy) have been completely exhausted. It then covers the remaining judgment up to the limit of the umbrella policy (e.g., $1 million, $2 million, or more).

Q: Who needs Umbrella Insurance?

A: Anyone who owns a home, has significant savings, or has future income potential needs an Umbrella Policy. Given the risks of low underlying limits and the high cost of bodily injury liability lawsuits, an Umbrella Policy is essential for almost all homeowners in the New York area.

Ready for a policy review? Contact BODILY INJURY INSURANCE for your FREE QUOTE today.