Frequently Asked Questions

A: When you apply for an insurance policy at Diedrich Family Insurance Agency, you will be asked a number of questions. For example, we might ask your name, age, gender, address, etc. You will also be asked a series of other questions that will be used to determine how likely you are to make a claim.

When we are deciding whether or not to offer car insurance to a potential customer, we want to know about their previous driving record, whether or not they have any recent accidents or tickets, and what type of car will need to be insured.

We offer a variety of programs for different customers. Adults with good driving records will generally pay less for car insurance than young drivers with traffic tickets. In order to determine which program you qualify for, we will need basic information about you.

In addition to your age, gender, and driving experience, more information about the car you drive is also needed to determine a fair price. For example, a large luxury car costs more to repair or replace than a compact car. Also, someone who commutes 30 miles each way is more likely to be in an accident than someone who commutes via bus and only drives on weekends.

A: By using an independent agent such as Diedrich Family Insurance Agency, the policyholder receives more personalized service. Having direct contact with your agent can be very important when purchasing insurance, and absolutely necessary when filing a claim. Diedrich Family Insurance Agency is able to deliver quality insurance in Wisconsin with competitive pricing and local, customized service.

A: Wisconsin insurance laws require that drivers have at least some car liability insurance. These laws were enacted to ensure that victims of car accidents receive compensation when their losses are caused by the actions of a negligent individual.

Oftentimes, the cost of repairing the damages to an older car is greater than its value. In these cases, your insurer will usually just "total" the car and give you a check for the car’s market value less than the deductible. Many people with older cars with low market value decide not to purchase any physical damage coverage.

A: Collision insurance coverage pays for damage caused to your vehicle in an automobile accident regardless of fault. Standard collision coverage will pay for any repairs up to the fair market value of your car. Collision coverage usually comes with an insurance deductible. It’s the amount of money you pay toward repairs before your collision insurance kicks in. The higher the deductible you’re willing to pay, the less the collision coverage will cost.

Comprehensive insurance covers damage done to your car in some way other than a collision, such as theft or vandalism. Animal impact, hail, flood, hurricane, windshield damage, and fire are also events usually covered by comprehensive car insurance. Like collision, comprehensive will pay up to the fair market value of your car (less your insurance deductible). And although it’s not legally required by any state, you will probably need it if your car is financed.

A: A number of factors can affect the cost of your car insurance in Wisconsin - some of which you can control and some that are beyond your control. The type of car you drive, the purpose the car serves, your driving record, and where the car is garaged can all affect how much your car insurance will cost you. Even your marital status can affect your cost of insurance. Statistics show that married couples tend to have fewer and less costly accidents than those who are single.

A: There are a number of things you can do to lower the cost of your homeowner's insurance. The easiest thing to do is request a comprehensive review of your policy and your needs from our agency.

It’s not surprising to find quotes on homeowner's insurance that vary by hundreds of dollars for the same coverage on the same home. When you shop, be careful to make sure each insurer is offering the same coverage.

Another way to lower the cost of your home insurance is to look for any discounts that you may qualify for. For example, many insurers will offer a discount when you place both your car and homeowner's insurance with them. Other times, insurers offer discounts if there are deadbolt locks on all your doors or if your home has a security system.

Another easy way to lower the cost of your homeowner's insurance is to raise your deductible. Increasing your deductible from $250 to $500 will lower your premium, sometimes by as much as five or ten percent.  

A: The typical homeowner's policy has two main sections: Section I covers the property of the insured and Section II provides personal liability coverage for the insured. Almost anyone who owns or leases property has a need for this type of insurance. Usually, homeowner's insurance is required by the lender to obtain a mortgage.  

A: Covered losses under a homeowner's policy can be paid on either an actual cash value basis or on a replacement cost basis. When "actual cash value" is used, the policy owner is entitled to the depreciated value of the damaged property. Under the "replacement cost" coverage, the policy owner is reimbursed on an amount necessary to replace the article with one of similar type and quality at current prices.  

A: There are a number of factors you should consider when purchasing any product or service, and insurance is no different. Below is a checklist of things you should consider when you purchase homeowner's insurance:

Determine the amount and type of insurance you will need. The coverage limit of your house should equal 100% of its replacement cost. If your policy limit is less than 80% of the replacement cost of your home, any payment from the insurance company will be less than the full cost to replace your home - you’ll have to pay the rest out of your own pocket. Also, decide if the personal property and personal liability limits are adequate for your needs.

Decide which, if any, additional endorsements you want to add to your policy. For example, do you want the personal property replacement cost endorsement or a jewelry endorsement?

Once you have decided on the coverage you want in your homeowner's insurance policy, please consult one of our agents at Diedrich Family Insurance Agency. They will be able to help you determine if there are any gaps in coverage that you might not have been aware of, and they can also explain the details of the policy’s exclusions and limitations, as well as recommend an insurance company that will live up to your expectations. 

A: The home and other structures on the premises are protected on an "all risk" basis up to the policy limits. "All risk" means that unless the policy specifically excludes the manner in which your home is damaged or destroyed, there is coverage. The policy limit for the home is set by the policy owner at the time the insurance is purchased. The policy limit for the other structure is usually equal to 10% of the policy limit for the home.

Losses to your personal property are covered on a "named perils" basis. "Named perils" means that you have coverage only when your property is damaged or destroyed in the manner specifically described in the policy. The policy limit on the coverage is usually equal to 50% of the policy limit on the home. Limits for the coverage of additional expenses the policy owner may incur is usually equal to 20% of the policy limit on the home when the residence cannot be used because of an insured loss.

The coverage limit on personal liability is determined by the policy owner at the time the policy is issued. The coverage limit on medical payments to others is usually set at $1,000 per injured person.

With most companies, endorsements are added that increase the percentages of some of these included coverages.

A: Personal property (except property that is specifically excluded) is covered anywhere in the world. For example, suppose that while traveling, you purchase a dresser and you want to ship it home. Your homeowner's policy would provide coverage for the “named perils” while the dresser is in transit - even though the dresser has never been in your home before.

A: "Rule of thumb" suggests an amount of life insurance equal to six to eight times annual earnings. However, many factors should be taken into account when determining the right amount of life insurance for you and your family.

Important factors include:

Income sources and amounts other than salary earnings

Whether or not you are married and, if so, what is your spouse’s earning capacity

The number of individuals who are financially dependent upon you

The amount of death benefits payable from social security and an employer-sponsored life insurance plan

Whether any special life insurance needs exist - (mortgage repayment, education fund, estate planning need, etc.)

Calculating the correct amount of life insurance to buy is not as simple as it appears. We recommend contacting us to help determine the right amount of coverage you need. As an independent agent, Diedrich Family Insurance Agency has unbiased advisors that will help you avoid buying too much, show you appropriate and optional coverages for your need, and recommend a company that will best serve your individual interests.

A: In certain circumstances, it is advisable to purchase life insurance for children. However, generally, such purchases should not be made in lieu of purchasing appropriate amounts of life insurance for the family breadwinner(s).

It is of utmost importance that the income-earning capacity of the primary breadwinner be fully protected, if possible, through the purchase of the required amount of life insurance. This should be done before purchasing life insurance for children or on a non-wage-earning spouse. Life insurance on a non-wage-earning spouse is often recommended for the purpose of paying for household services lost due to this individual’s death. In a dual-earning household, it is important to protect the income-earning capacity of both spouses.

A: This depends on your personal circumstances.

First, recognize that in any life insurance purchasing decision, two questions must be answered:

1. "How much life insurance should I buy?"

2. "What type of life insurance policy should I buy?"

The first question should always be initially resolved. For example, the amount of life insurance that you need may be so large that you can only afford it through the purchase of term insurance since term insurance has a lower premium.

If your ability to pay life insurance premiums is such that you can afford the desired amount of life insurance under either type of policy, then it is appropriate to consider the second question - what type of policy to buy. Important factors affecting this decision include your income tax bracket, whether the need for life insurance is short-term or long-term (e.g., 20 years or longer), and the rate of return on alternative investments possessing similar risk.

A: If you live in an apartment or a rented house, renters' insurance provides important coverage for you and your possessions. A standard renters' insurance policy protects your personal property in many cases of theft or damage and may pay for temporary living expenses if your rental is damaged. It can also shield you from personal liability. Anyone who leases a house or apartment should consider this type of coverage.

A: A renter's insurance policy provides named perils coverage. This means that the policy only pays when your property is damaged or destroyed in any of the ways specifically described in the policy. These usually include:

• Fire or lightning
• Windstorm or hail
• Explosions
• Riots
• Aircraft
• Vehicles
• Smoke
• Vandalism or malicious mischief
• Theft
• Falling objects
• Weight of ice, snow, or sleet
• Accidental discharge or overflow of water or steam
• Freezing
• Sudden and accidental damage from artificially generated electrical current
• Volcanic eruptions (but this doesn’t include earthquakes or tremors)

Renter's insurance coverage applies to your personal property no matter where you are in the world. This means you’re covered when you are on vacation as well as at home.

A: Owners of apartment complexes buy insurance policies for their liability in order to cover their buildings and personal property. However, these policies do not cover any of the tenant’s property or liability. By requiring their tenants to have renter's insurance, the apartment owner is assured that the tenants will not mistakenly believe the apartment complex owner’s policy will provide coverage for a tenant’s property or personal liability. Although this type of requirement benefits the apartment complex owner, there are benefits for the renter as well. At Diedrich Family Insurance Agency, we recommend you purchase renters' insurance regardless of what your landlord requires.

A: Standard renter's policies cover only you and relatives that live with you. If your roommate is not a relative, each of you will need your own renter's insurance policy to cover your own property and to provide you liability coverage for your own actions.

A: The personal umbrella liability policy is designed to increase your liability protection. This single policy acts as an "umbrella" over all of your other personal liability policies - home, car, boat, RV, etc, so you have a higher personal liability limit than what is available for these policies by themselves. In certain circumstances, an umbrella insurance policy may provide personal liability coverage that is otherwise excluded from your other policies. For example, an umbrella insurance policy provides coverage anywhere in the world, whereas your car insurance policy usually provides coverage in only the US and Canada.

A: It used to be that the only people who needed personal umbrella liability policies were wealthy individuals, who had sizable amounts of personal assets that would be at risk in a lawsuit. However, in our very litigious society, even individuals with modest incomes and assets are often subjects of large lawsuits. Since those with modest incomes are even less able to pay damages than a wealthy individual, Diedrich Family Insurance Agency recognizes the need to provide coverage limits greater than what can be obtained from their homeowner insurance or car insurance policies.