Gary Bailey Insurance Agency, Inc.
Specializing in home, auto, life, and business insurance
4500 N. Main St.
Baytown, TX 77521
ph: 281-420-5574
fax: 281-427-2176
alt: 1-888-420-5574
csain@garybaileyins.com

Follow us:
Gary E. Bailey, Agent
Cody Sain, Agency Producer

Copyright © 2011 Gary Bailey Insurance Agency, Inc.  All rights reserved.
Find the answers to frequently asked questions here.

If your question is not answered, please
contact us.
Auto Insurance

Q. Am I required to buy auto insurance?

Yes!  The State of Texas mandates that all Texas drivers have a minimum
amount of liability insurance, even if he or she does not own a car.  As of January
1, 2011, these limits are $30,000 per person, $60,000 per accident, and $25,000
property damage.

Q. Am I required to purchase uninsured motorist coverage or
personal injury protection (PIP)?

No.  Uninsured motorist protection covers you in the event that you are involved
in an accident with a person who does not have insurance or who flees from the
scene of an accident (hit-and-run).  PIP covers your medical expenses and lost
wages.  These coverages are optional, but you must "opt-out" of them.

Q. What does 30/60/25 liability mean?

Limits of liability and uninsured/underinsured motorist coverage is expressed as
three numbers such as "30/60/25" or "50/100/50."  The first number refers to
the maximum amount of money (in thousands) your insurance will cover for
bodily damage per person in an accident.  The second number refers to the
maximum amount your policy will cover for the entire accident, and the third
number refers tot he maximum amount of property damage that will be covered.

Suppose Tom hits a new $30,000 car with three people inside, and totals the
other car.  Each person suffered $15,000 worth of bodily damage.  In this case,
assuming he has minimum liability (30/60/25), his policy will pay $25,000 for
the car, and $15,000 for each person.  

Suppose that the driver and one passenger suffered more serious injuries, and the
cost was $50,000 for each of them.  In that case, the policy would pay up to
$30,000 for each person's injuries, but would not pay more than $60,000 for all
three.  The $60,000 would be split among them, with no one person getting more
than $30,000.
Homeowner's Insurance

Q. Am I required to buy homeowner's insurance?

Maybe.  Most banks and mortgage companies require it.

Q. Why is my home insured for more than it is worth?

Homes that are insured at "replacement cost value" are insured at the amount it
would take to rebuild their home in the case of a total loss (such as it burning to
the ground).  So even if you the most you could sell your home for would be
$90,000, it might take $140,000 to rebuild it if it burns down.

Homes that are insured at "actual cash value" are insured at the value of the
home minus depreciation.

Q. Does my home owner's insurance cover floods?

Homeowner's insurance never cover floods, no matter what company you're with.
 Flood insurance is a separate policy written through the National Flood
Insurance Program (NFIP) in conjunction with FEMA.  We will gladly write you a
flood policy to complement your homeowner's policy.

Q. Why doesn't my homeowner's policy cover wind and
hurricanes?  I live on the coast!

Residents in Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston,
Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio, and
Willacy counties, as well as those east of Hwy 146 in Harris County, have to
purchase windstorm insurance from the Texas Windstorm Insurance Association
(TWIA) to be covered for wind, hail, and named storms.

Q. What is a WPI-8 Certificate?

A WPI-8 Certificate is required by the TWIA for homeowners in Tier-1 counties
(listed above).  It certifies that the home is built to withstand certain wind
conditions.  It must be obtained for the construction of the home and any major
modifications, including to the roof.

If you do not have a WPI-8, you must either pay a surcharge on your windstorm
insurance or have an engineer certify your home.
Life Insurance

Q. Do I need life insurance?

Yes!  At the very least, everyone should own a small permanent life policy to
cover final expenses.

Q. How much life insurance do I need?

There is no one-size-fits-all policy.  Your best bet is to give us a call to set up an
appointment to discuss your needs.  Until then, try
Farmers Life Insurance
Calculator.

Q. What's the difference between whole and term life?

Whole life lasts for your whole life, as long as your pay the premium.  It also
builds up a cash value that you can borrow against.

Term life last for a specified period of time, and tends to be cheaper and offer a
larger death benefit.  But if you live past the expiration date, the policy is gone
and your money is lost.

Whole life is good for paying for financial expenses, whereas term life is
appropriate for income replacement.

Q. What is universal life

Universal life is a permanent life policy that is actually an annual renewable
term.  It offers flexible premiums and builds up a cash value, but gets more
expensive over time.

Q. My spouse doesn't work.  Does he/she need life insurance?

Everyone should have enough life insurance to cover his or her final
expenses.  Beyond that, it depends on the situation.

If you spouse takes care of your children and dies, you will not lose any
income, but you will lose a service (child care)that you'll now have to pay
for (which can cost thousands of dollars a year).

For more guidance, call us at (281) 420-5574.
Gregory.