Common Life Insurance Misconceptions

Dove Insurance Agency assists the Blacksburg, VA community, as well as the surrounding areas by offering multiple types of insurance policies. As an independent agency, we have established successful partnerships with multiple insurance providers. This allows us to help our clients regardless of their needs.

Life Insurance

Life Insurance provides a safety net for you and your family once you pass away. Term life insurance covers you over a specified period of time. The most common length of policy is between 10 and 20 years. Whole life insurance covers you throughout your entire lifespan. As you are researching different policies, please try to avoid some of the common misconceptions about life insurance that people believe are facts.

I Can Just Rely On My Coverage Provided Through My Job

While your employer may provide you with substantial coverage, it may be a mistake to simply rely on that policy. Adding extra coverage provides an additional layer of protection so that you’ll be covered regardless of any circumstances that may arise.

Single people Don’t Need Coverage

While you may be single right now, you don’t know what the future holds. It’s important to think about where you might be five years from now. Life insurance ensures that regardless of what path you take in the future, you’ll still have protection.

Stay At Home Parents Don’t Need It

This is not true. As a stay at home parent, you provide an important service that is difficult to replace. Life insurance provides a layer of protection in the event that you pass.

I Can Easily Change My Policy

Research the language in your policy carefully, as you may have to fill out paperwork in order to change a term life policy into a whole life policy, for example.

Dove Insurance Agency Can Help You

If you are a Blacksburg, VA resident, and you’re looking for help discussing your life insurance policy options, please contact us.  

What Is Depreciation Holdback?

Standard Virginia Homeowners insurance policies are written on a replacement cost valuation. So why do insurance companies sometimes use deprecation when it comes to filing a homeowners claim?

When you file a homeowners claim your insurance carrier will make an initial assessment of the damage to determine how much it will cost to repair or replace the damaged property. Since this estimate is only an estimate, your carrier may withhold a portion of that claim settlement until the actual replacement cost has been determined. An insurer will never pay you more than you are owed for a loss and if damaged property is not repaired, you may only receive the actual cash value.

Sometimes your claim settlement depends on the type of loss that occurred. For example, your insurance carrier may not pay anything until all the work has been performed on your roof after it has been damaged and no payment may be made until the roofing contractor has completed their work.

In another example, after a lightning strike your insurance carrier may pay a portion of the claim settlement up front so you can begin to replace the damaged property. With appliances (like heat pumps), it can be difficult to determine the exact value of an item that is several years old, so carriers tend to withhold a greater amount of the settlement for depreciation (depreciation holdback). After submitting receipts showing the cost and installment of the new replaced items you will be reimbursed for the difference (minus any deductible).

Depreciation holdback does not happen in every instance, but is one of the ways your claim can be processed.

Serving the Commonwealth of Virginia For Over 50 Years!

At Dove Insurance Agency our family of Independent Agents are dedicated to serving you and working with your lifestyle. We’ll educate you on the coverage you need to keep your property and family secure, no matter what the future brings.

And the best part, we’re here for you when needs arise such as policy changes, billing questions, reporting claims, or questions regarding coverage. 

Let us help

New Car Replacement Coverage

Many auto insurers offer optional coverages for your new vehicle, and perhaps the best is new car replacement coverage.

Simply put this coverage pays to replace your vehicle with a brand new car of the same make and model—meaning no depreciation!

Are there restrictions? Of course. For starters your vehicle must be new. Some carriers will allow “newer” vehicles and the year cutoff depends on the company’s underwriting guidelines.

Our Family of Independent Agents represent multiple carriers, but I think the Premier New Car Replacement® coverage from Travelers Insurance is the headliner. While many insures offer coverage for the first two or three years, Travelers will cover up to five.

Below is some additional information on this offering from Travelers:

What Does Premier New Car Replacement Cover?

Premier New Car Replacement is a coverage package designed to replace your new vehicle with a brand new vehicle of the same make and model if yours is totaled in the first five years of ownership.

You must be the original owner and the vehicle must be the current or a future model year at the time you add this coverage.

This coverage includes:

New Car Replacement Coverage

This covers the cost of a new car of the same make and model, minus the applicable deductibles, if your car is totaled in a covered loss. Fire, theft, larceny and flood losses are excluded.

Loan/Lease Gap Coverage

This coverage protects you if your vehicle is financed or leased. If your vehicle is totaled, this coverage may pay the difference between the actual cash value of the vehicle and the unpaid balance of the loan or lease.

Glass Deductible

This is a lower deductible that can be applied in place of your comprehensive deductible for a glass-only loss involving your windshield, windows, and exterior lights or mirrors.