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Frequently Asked Questions

Below are some of our frequently asked questions. If you have any other questions or concerns, please feel free to contact us.

  1. Why should I use an agent?
  2. Why do I need to buy insurance?
  3. Auto Insurance
  4. Home Insurance
  5. Renters Insurance
  6. Business Insurance
Why should I use an agent?

Why should I use an agent?

As a broker of insurance, Century Max Insurance Agency represents you-the customer. We shop from our selection of different insurance companies to locate the best combination of price and coverage for you! Then we continue to stand by you, shopping each renewal to make sure that your insurance coverage keeps pace with your changing life.

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Why do I need to buy insurance?

Why do I need to buy insurance?

  • Protects your assets against attachment as a result of a court award.
  • Provides for cost of defense when you are sued.
  • Allows you to purchase such high value items as a car or a home by insuring the collateral on behalf of the financial institution that lent you the money.
  • Provides financial security for your family in the event of your death.
  • Provides for the health care of you and your family through systematic payments.
  • Allows you to save for retirement while deferring interest payments to a time when your income is lower, thus reducing your tax payments.
  • Allows you to remain financially solvent when you're ill and can't work.
  • What factors affect the insurance premiums I pay?
  • Claims activity including such costs as medical care, auto body repair, construction, legal defense, jury awards, claims adjustment, and insurance fraud.
  • Overhead including rent, utilities, employee salaries and benefits, office supplies, equipment, and furniture.
  • Investment income.


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    Auto Insurance

    Auto Insurance


    What is auto insurance?
    Auto insurance protects you from financial loss if you get into an accident. You agree to pay the premium and the insurance company agrees to pay for the losses as defined in your policy. Auto insurance provides liability, property and medical coverage.

    How does where I live affect my premium?
    Where you keep your car directly affects your chances of having an accident or becoming a victim of theft or vandalism. The likelihood of encountering these problems increases in larger, more densely populated cities, while such incidents remain relatively low in rural areas.
    Additionally, the time and efficiency of police response and law enforcement, local road and traffic conditions, and the quality of local medical services can affect regional insurance rates. Some insurers even factor in the litigation rates in a given area (how many lawsuits are filed, go to trial, out of court settlements, and their amounts).

    What is covered by a basic auto policy?
    Your auto policy may include 6 coverages. Each coverage priced separately including Bodily Injury Liability, Medical Payments or Personal Injury Protection (PIP), Property Damage Liability, Collision, Comprehensive, and Uninsured and Underinsured Motorist Coverage.

    Is there a difference between cancellation and non-renewal?
    There's big difference between the insurance company canceling a policy and you choosing not to renew it. Insurance companies cannot cancel your policy after it has been in effect after 60 days, unless you failed to pay for your premium, you committed fraud on your application, or if your driver's license has been suspended or revoked. Non-renewal is when you or your insurance company choose not to renewal your policy when it expires, either you're going to switch a company or depending on the state that you live in, the insurance company choose not to give you a renewal, they would give you a certain number of day and a reason for not renewing your policy.

    How much coverage do I need?
    Almost every state requires you to buy a minimum amount of liability coverage. Chances are that you will need more liability insurance than the state requires because accidents cost more than the minimum limits. If you’re found legally responsible for bills that are more than your insurance covers, you will have to pay the difference yourself.

    What happens when I loan my car to someone? Is that person covered by my policy? Am I still covered?
    Yes. Liability and coverage for Physical Damage (i.e. Comprehensive and Collision) always follow your car. Plus, if the driver of your car is insured, his/her policy will also be available to cover the cost of damages and injuries.
    The same rules apply when you borrow someone else's vehicle; your own insurance follows you no matter whose car you're driving. But the vehicle owner's policy is the key coverage in the event of an accident.

    How do I insure my teenage drive?
    You must notify your insurance company that you have a additional driver in the house as soon as your child begins to drive, because they are inexperienced driver, they tend to get into accidents more frequently than others. But unfortunately this will reflect on your insurance rates. If your have a daughter your insurance will go up as much as 50%, and if you have a son then your insurance will go up as much as 100%. Consider also raising liability limits or buying an umbrella liability policy for additional protection.

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    Home Insurance


    Home Insurance

    What is homeowner insurance?
    A homeowner insurance provides financial protection against disasters. A standard homeowner insurance protects the home itself and the things you keep in it. It's a packaged policy that covers both damage to your policy and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.

    What is homeowner insurance?
    Disasters that are not covered by the homeowners policy are floods, earthquakes, and maintenance damage.

    Can I own a home without homeowners insurance?
    You can legally own a home without homeowners insurance. But, if you have bought your home and financed the purchase with a mortgage, your lender will most likely require you to get homeowners insurance coverage. That’s because lenders need to protect their investment in your home in case your house burns down or is badly damaged by a storm, tornado or other disaster.

    How much homeowners insurance do I need?
    You need enough insurance to cover the following:
    1. The structure of your home.
    2. Your personal possessions.
    3. The cost of additional living expenses if your home is damaged and you have to live somewhere else during repairs.
    4. Your liability to others.

    What if I can't get coverage?
    If you live in a home that is considered "high-risk" or plan to move to a high-risk location, you may have difficulty obtaining an insurance policy.

    What constitutes high-risk?
    Your home is located in an area prone to severe weather such as hurricanes, windstorms, tornadoes or hail. You live in an urban area with high crime, vandalism and theft. Your home has an old plumbing, electrical and/or heating system—these represent a higher chance of causing fire or water damage. If one or two insurers turn you down, don’t despair. You do have other options. If you are buying a new home, ask the real estate agent, mortgage lender or builder for names of companies that write in your area. If it’s an existing home, ask the previous owners who insured the house.

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    Renters Insurance


    Renters Insurance

    How expensive is renters insurance?
    Renters insurance is typically available for as little as $100 a year. Renters Insurance covers liability and personal property inside the apartment.

    Does my landlord's insurance protect me?
    Generally, no. The property owner's insurance covers the building itself and seldom a tenant's possessions or liability.

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    Business Insurance

    Business Insurance

    I'm just getting my business started. Do I need insurance immediately?

    Yes. Your chance of suffering a loss begins with the first day of business. If you suffer a loss and have no insurance or have improper or insufficient coverage, your insurance agent can do little, if anything, to help you.
    Also, many states and local jurisdictions require businesses to have insurance to begin operating. And if you rent space for your business, your landlord probably requires you to obtain adequate insurance.

    I don't have any major business assets. Why do I need insurance?
    Every business has some property. When you think about it, your business is your property. Just like your home and your car, your business needs to be protected from loss, damage, and liability. In addition, your business is your source of income, so you need protection from the potential loss of that income.

    Does insurance coverage vary for different businesses?
    It can. Many small businesses opt for package policies that cover the major Property and Liability exposures as well as for a loss of income. A common package policy used by many small businesses is called the Business Owners Policy (BOP). Generally, BOPs provide more complete coverage at a lower price than separate policies for each type of insurance needed. We can help you decide which policy or policies are right for your business.

    What does a business owners policy cover?
    We offer policies that combine protection from all major property and liability risks in one package. One package purchased frequently by small and mid-sized businesses is the business owners policy (BOP). Package policies are created for businesses that generally face the same kind and degree of risk. Larger companies might purchase a commercial package policy or customize their policies to meet the special risks they face.

    BOP’s include:
    • Property insurance for buildings and contents owned by the company. There are two different forms, standard and special, which provide more comprehensive coverage.
    • Business interruption insurance, which covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business. It can also include the extra expense of operating out of a temporary location.
    • Liability protection, which covers your company's legal responsibility for the harm it may cause to others. This harm is a result of things that you and your employees do or fail to do in your business operations that may cause bodily injury or property damage due to defective products, faulty installations, and errors in services provided.

    Do I need business interruption insurance?
    It's wise to invest in this type of coverage. Business interruption insurance compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy, such as a fire. Business interruption insurance covers the profits you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.

    Do I need workers compensation insurance?
    Yes. Most states require every employer to carry Worker Comp insurance, otherwise the companies will be fined heavily. Employers have a legal responsibility to their employees to make the workplace safe. However, accidents can happen even when every reasonable safety measure has been taken. You'll need workers compensation insurance when those accidents happen.

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