Insurance isn't necessarily something most of us have to think about every day, and having gaps in coverage usually isn't a worry unless something goes wrong and we find them. That's when all the questions start popping up.
At Mountain Lakes Insurance, we talk with homeowners, drivers, and business owners across North Georgia every day. And while every situation is different, we tend to hear many of the same questions over and over.
So, we put together this list of the 20 most common insurance questions we get, along with simple answers to help better understand your coverage and avoid that worry. In this first part, we're focusing on home and auto insurance.
1. Does homeowners insurance cover flooding?
Short answer: no. Flooding from heavy rain, rising water, or storm surge typically requires a separate flood insurance policy.
2. How much homeowners insurance do I really need?
It should be enough to rebuild your home, not just match what you paid for it. Construction costs matter much more than the market value of your house. Read more about Replacement Cost vs. Market Value.
3. Are my valuables automatically covered?
Most policies cover personal belongings but have limits on high-value items like jewelry, collectibles, firearms, and electronics. If you have valuable items, you may want additional coverage.
4. What about water or sewer backup?
Most standard policies do not include water and sewer backup. You usually need to add an optional water backup endorsement to be covered.
5. What is liability coverage on a homeowner's policy?
Liability coverage protects you if someone gets hurt on your property or if you're responsible for injury or damage to someone else—even if it happens away from your home. It can also cover incidents involving your pets, although some breeds or situations may be excluded depending on the policy.
6. Should I consider an umbrella policy?
For many, the answer is yes. If you have a lot of assets, teenage drivers, pets, or frequent guests, an umbrella policy adds an extra layer of liability protection. With lawsuits becoming more common, that added protection is worth considering. In our previous post, we break down What Tort Reform is in Georgia, and How it is Impacting You.
7. How much auto liability coverage should I carry?
Georgia's minimum coverage limits are pretty low, and the state is also one of the leading states for personal injury claims. If you're in a serious accident, those limits are often not enough. Higher limits can help better protect you financially.
8. Does my auto insurance cover other drivers?
Sometimes. Many policies allow permissive use, meaning someone outside your household can occasionally drive your vehicle with your permission. But drivers who live in your household typically must be listed on the policy. Anyone who regularly operates a vehicle on your policy should be added as a rated driver.
9. Will my insurance go up after an accident?
It depends. Fault, claim history, and your policy details all play a role. Some policies even include features like accident forgiveness, which can help avoid a rate increase after your first accident.
10. Does my auto policy cover rental cars?
In many cases it does, especially if your policy includes comprehensive and collision coverage on at least one vehicle. Still, it's always a good idea to double-check before you rent.
11. What's the difference between collision and comprehensive coverage?
Think of it like this:
12. Does my personal auto policy cover business driving?
Usually only for limited situations. If you're regularly using a vehicle for work or employees are driving it, you may need commercial auto insurance instead.The biggest insurance mistakes happen when people assume they're covered — without verifying the details. Asking questions and reviewing your coverage regularly can prevent any expensive mistakes.
In Part 2, we'll cover the most common business insurance questions and what you need to know to protect your company.
At Mountain Lakes Insurance, we believe insurance should be clear, personal, and tailored to your life. If you ever want to review your coverage or just ask a few questions, we're always happy to help!