Insurance FAQs

Policyholder wants to know if their policy covers a specific situation.

"AI explains coverage: "Great question! You're asking if your homeowners policy covers water damage from a burst pipe. Let me explain. Short answer: Yes, your policy covers sudden and accidental water damage from burst pipes. Here's the detail: What's covered: Damage to your home (walls, floors, ceilings) from the burst pipe. Damage to your personal property (furniture, electronics). Cost to tear out and replace the damaged areas to access the pipe. Additional living expenses if you can't stay in your home during repairs. What's NOT covered: The pipe itself - the actual plumbing repair is considered maintenance. Gradual damage - if the pipe was leaking slowly for months, that's not covered. Damage from lack of heat - if pipes burst because you didn't heat your home, coverage may be denied. Your coverage limits: Dwelling coverage: $350,000 (repairs to home). Personal property: $175,000 (damaged belongings). ALE: $70,000 (temporary housing if needed). Your deductible is $1,000, so you'd pay that first. Would you like me to explain how to file a claim, or do you have more questions about what's covered?""

Customer doesn't understand what "actual cash value" vs "replacement cost" means.

"AI explains clearly: "I'd be happy to explain the difference - these are two of the most important terms in insurance! Replacement Cost: What it means: Insurance pays to replace your damaged item with a brand new equivalent. Example: Your 5-year-old TV is destroyed in a fire. A similar new TV costs $800. With replacement cost coverage, you'd get $800 (minus deductible). Actual Cash Value (ACV): What it means: Insurance pays the depreciated value - what your item was worth at the time of loss. Example: Same 5-year-old TV destroyed. New TV costs $800, but your TV had depreciated 50%. With ACV, you'd get $400 (minus deductible). Why it matters: Replacement cost: Costs more in premium, but you get more if you have a claim. Better for most people. ACV: Lower premium, but you pocket less after a claim. May leave you short when replacing items. On your policy: I can see your homeowners policy has replacement cost on the dwelling (your home structure). Your personal property (belongings) has: [Let me check]... You have ACV on personal property. Want to know the cost to upgrade to replacement cost on your belongings? It's usually 10-15% more in premium but pays off significantly in a major claim. Would you like a quote to upgrade?""

Policyholder wants to know how the claims process works before they have a claim.

"AI walks through the process: "Smart thinking - knowing the claims process before you need it makes everything easier! Here's how it works step by step. Step 1: Report the Claim. Call us at 1-800-XXX-XXXX (24/7), use our app, or chat online. Have ready: Your policy number, date and time of incident, description of what happened, photos if possible. Step 2: Claim Assignment. Within 24 hours, a claims adjuster is assigned. For simple claims: Handled by phone/online. For complex claims: Adjuster may schedule an inspection. Step 3: Documentation. We may ask for: Repair estimates, receipts for damaged items, police report (if applicable), photos/videos of damage. Tip: Start documenting immediately - photos before cleanup if safe. Step 4: Evaluation. Adjuster reviews your coverage and damage. Determines what's covered and calculates payment. For home claims: May send contractor to assess. Step 5: Settlement. We issue payment minus your deductible. You can choose your own contractor or use our network. Typical timelines: Minor claims: 7-14 days. Major claims: 2-4 weeks. Complex claims: May take longer. Pro tips: Don't throw away damaged items until adjuster approves. Make temporary repairs to prevent further damage (keep receipts). You don't have to accept the first offer - you can negotiate. Want me to save your claim contact information to your phone?""