Welcome to the MBG Insurance Personal Lines FAQ
Insurance questions don't always come up at convenient times — and the answers aren't always easy to find. This page is here to change that.
Whether you're a longtime client or just shopping for coverage in the Springfield area, we've put together answers to the questions we hear most often. From homeowners and auto to umbrella and renters, we want you to understand exactly what your policy does — and doesn't — cover before you ever need to file a claim.
At MBG Insurance, we're independent agents, which means we work for you — not for any single carrier. That gives us the flexibility to find coverage that actually fits your life, your home, and your budget.
If you don't see your question answered here, just give us a call. We're always happy to talk it through.
Auto Insurance FAQ
Your auto insurance policy is one of the most important financial protections you carry — and Missouri's roads make it worth understanding inside and out.
How is my car's value determined if it's a total loss?
When your vehicle is declared a total loss, your insurance company uses a valuation report — most commonly from a company called CCC Intelligent Solutions — to determine what your car was worth at the time of the loss. These reports pull from local market data, comparable vehicles for sale in your area, and condition adjustments based on your specific car.
As a practical reference point for consumers, the CCC value typically lands somewhere between the Kelley Blue Book trade-in value on the low end and the KBB private party sale value on the high end. The cleanliness, maintenance history, and overall upkeep of your vehicle do matter — a well-kept car with service records and a clean interior will be valued higher than one that shows neglect. If you believe the valuation is too low, you have the right to dispute it and provide documentation supporting a higher value, such as recent improvements, low mileage, or comparable listings in your area.
Find your cars value HERE.
How does uninsured and underinsured motorist coverage work?
Uninsured motorist coverage (UM) steps in to pay for your injuries and, in some cases, property damage when you're hit by a driver who has no insurance at all. Underinsured motorist coverage (UIM) covers the gap when the at-fault driver has insurance, but their limits aren't high enough to cover your full damages.
In Missouri, uninsured motorist coverage is required by law. Many drivers carry only the state minimum limits, which may not come close to covering a serious accident. Your UM/UIM coverage essentially fills that gap — protecting you from someone else's poor decision to go without adequate insurance. We generally recommend carrying UM/UIM limits that match your liability limits for the most balanced protection.
How do I know what liability limits to carry?
A good rule of thumb is to carry enough liability coverage to protect what you have. Your liability limits represent the most your insurance will pay if you're at fault in an accident — anything beyond that can come out of your personal assets.
Start by looking at what you own: your home, savings, retirement accounts, and future income. If your assets exceed your policy limits, you're exposed. For most people, state minimum limits are not enough. We typically recommend at least 100/300/100 ($100,000 per person / $300,000 per accident / $100,000 property damage) as a starting point, and an umbrella policy for those with significant assets. The cost difference between minimum limits and higher limits is often smaller than people expect — give us a call and we can walk through the numbers with you.
Does my auto insurance cover me when I rent a car?
In most cases, yes — your personal auto policy extends to a rental car used for personal travel, up to the same limits you carry on your own vehicle. If you have comprehensive and collision coverage on your policy, it typically applies to the rental as well.
That said, there are a few things to keep in mind. Your policy generally won't cover loss of use fees the rental company charges while the car is being repaired, and some policies exclude certain types of vehicles like luxury cars, trucks, or vans. Credit cards also sometimes offer rental coverage as a benefit. Before declining or purchasing the rental company's coverage, it's worth a quick call to us to confirm exactly what your policy covers.
I let my friend borrow my car and he got in an accident — does his insurance cover it?
In most situations, the insurance follows the car, not the driver. That means your auto policy is typically the primary coverage when someone you've given permission to drive your vehicle gets into an accident. Your friend's insurance may act as secondary coverage if the damages exceed your limits, but your policy responds first.
This is important to understand before lending your vehicle. If your friend causes an accident, it's your claim, your deductible, and potentially your renewal rate that are affected. Most policies do cover permissive use — meaning drivers you've given permission to use the car — but there are exceptions, particularly for household members who are not listed on the policy. When in doubt, give us a call before handing over the keys.
What are step-down limits?
Step-down limits are a policy provision that reduces your coverage limits under certain circumstances — most commonly when a family member or household resident who is not listed on your policy is driving your vehicle.
For example, if you carry 250/500 liability limits but your adult child who lives with you and isn't on your policy borrows your car, a step-down provision could reduce your coverage to the state minimum limits in the event of a claim. This can leave you seriously exposed without realizing it. Step-down provisions vary by carrier, and not all policies include them. It's one of the reasons we review your household situation when setting up your policy — making sure the people who might drive your vehicle are properly accounted for. If you're unsure whether your policy has step-down limits, contact us and we'll take a look.
Home Insurance FAQ
Your home is likely your biggest investment — and your homeowners policy is what stands between you and a financial loss when something goes wrong.
What is the difference between flood damage and water backup, and are they covered by my homeowners insurance?
These two types of water damage are very different in both cause and coverage, and confusing them is one of the most common — and costly — misunderstandings in homeowners insurance.
Flood damage occurs when water enters your home from the outside — rising water from heavy rain, overflowing rivers or lakes, or storm surge. Standard homeowners insurance does not cover flood damage. Period. Flood coverage requires a completely separate policy, typically through the National Flood Insurance Program (NFIP) or a private flood carrier. Many Missouri homeowners assume they're covered for flooding and only find out otherwise when it's too late. If your home has any exposure to rising water — even if you've never flooded before — it's worth a conversation about flood insurance.
Water backup is a different scenario entirely. This refers to water that backs up through your drains, sump pump, or sewer line — coming up from below rather than in from outside. A standard homeowners policy also does not automatically cover water backup, but unlike flood, it can usually be added as an endorsement to your existing policy for a relatively modest additional premium.
The bottom line: if water comes in from the ground up or outside in, your standard homeowners policy likely won't cover it without the right additions in place. Let us review your current policy to make sure you have the protection you actually need.
What is the difference between actual cash value (ACV) and replacement cost value (RCV)?
This is one of the most important distinctions in your homeowners policy, and it has a direct impact on how much you receive after a claim.
Actual cash value (ACV) pays you what your damaged property was worth at the time of the loss — factoring in age and depreciation. So if a five-year-old roof is destroyed in a hailstorm, you won't receive what it costs to put on a new roof. You'll receive what that five-year-old roof was worth, which could be significantly less. The same applies to personal property — a ten-year-old television is worth far less today than what it would cost to replace it with a comparable new one.
Replacement cost value (RCV) pays what it actually costs to repair or replace the damaged item with a new one of similar kind and quality — without deducting for depreciation. For your roof, that means a check closer to what a contractor will actually charge. For your belongings, it means you can actually go buy a comparable replacement.
The difference in premium between an ACV and RCV policy is usually modest, but the difference in a claim payout can be thousands of dollars. We strongly recommend replacement cost coverage for both your dwelling and your personal property whenever possible. If you're not sure which type of coverage you currently have, contact us and we'll take a look at your policy together.
What does liability coverage on my homeowners policy cover?
Liability coverage on your homeowners policy protects you financially if someone is injured on your property or if you or a family member accidentally cause damage to someone else's property. It covers two main things: the cost to defend you if you're sued, and any damages you're legally obligated to pay up to your policy limits.
Some common examples include a guest slipping and falling on your sidewalk, your dog biting a neighbor, or your child accidentally breaking a window at someone else's home. Your liability coverage follows you beyond just your property in many situations as well — meaning it can apply to incidents that happen away from home.
What it does not cover is intentional acts, business-related liability, or auto accidents — those are handled by separate policies. Most standard homeowners policies come with $100,000 in liability coverage, but we typically recommend $300,000 or more for most homeowners. For those with significant assets, an umbrella policy on top of that adds an extra layer of protection at a very reasonable cost. If you're unsure whether your current limits are adequate, give us a call and we'll walk through it with you.
What is contents coverage and how do I know how much I need?
Contents coverage — also called personal property coverage — pays to repair or replace your belongings if they're damaged, destroyed, or stolen. This includes furniture, clothing, electronics, appliances, sporting goods, and just about everything else inside your home that isn't attached to the structure itself.
The tricky part is that most people significantly underestimate the value of what they own until they're sitting in front of an adjuster trying to remember everything they've lost. The best way to know how much coverage you need is to do a home inventory — going room by room and documenting what you own, ideally with photos or video and estimated values. It doesn't have to be formal, but having a record makes a claim far less stressful and helps ensure you're not underinsured.A few things to keep in mind: standard contents coverage has built-in sub-limits for certain categories like jewelry, firearms, cash, and collectibles. If you own items of significant value in these categories, you may need a separate endorsement or floater to fully cover them. We also strongly recommend making sure your contents are covered on a replacement cost basis rather than actual cash value — otherwise depreciation can dramatically reduce what you receive after a claim.
What are endorsements and which ones should I consider?
An endorsement is an addition or modification to your standard homeowners policy that expands, restricts, or customizes your coverage. Think of your base policy as a foundation — endorsements let you build on it to address gaps or specific risks that the standard policy doesn't cover.
Some of the most common and valuable endorsements for Missouri homeowners include:
Water backup coverage — adds protection for damage caused by backed-up drains, sump pumps, or sewer lines, which are not covered under a standard policy.
Scheduled personal property — provides broader coverage for high-value items like jewelry, fine art, firearms, or musical instruments that exceed your base policy's sub-limits.
Equipment breakdown — covers mechanical or electrical failure of major home systems and appliances, similar to an extended warranty but broader in scope.
Service line coverage — covers the cost to repair underground utility lines running to your home, such as water, sewer, or electrical lines, which are your responsibility as the homeowner.
Ordinance or law coverage — pays the additional cost to bring your home up to current building codes during a repair or rebuild, which standard policies often won't cover.
Which endorsements make sense for you depends on your home, your location, and what you own. That's exactly the kind of review we do with our clients — contact us and we'll make sure your policy is built for your specific situation.
If I disagree with a claims adjuster's decision, how do I dispute a claim?
Disagreeing with a claims outcome is more common than most people realize, and you do have options. Here's how to approach it:
Start by asking questions. Request a written explanation of how the adjuster arrived at their decision, including the specific policy language they're relying on. Understanding their reasoning is the first step to identifying where you disagree.
Document everything. Gather your own evidence — photos, contractor estimates, receipts, and any documentation that supports a higher value or a broader scope of damage than what the adjuster determined.
Request a re-inspection. If the dispute is about the extent of damage, you can ask the insurance company to send a different adjuster or a supervisor to take another look, especially if you have a contractor estimate that differs significantly from the adjuster's assessment.
Use the appraisal process. Most homeowners policies include an appraisal clause, which allows both you and the insurance company to hire independent appraisers to assess the loss. If the two appraisers can't agree, they select a neutral umpire whose decision is binding. This process is specifically designed to resolve disputes over the dollar amount of a claim without going to court.
File a complaint with the Missouri Department of Insurance. If you believe your claim is being handled unfairly or in bad faith, you can file a complaint at insurance.mo.gov. The Department of Insurance oversees carrier conduct and can apply pressure when warranted.
Consult a public adjuster or attorney. For significant disputes, a licensed public adjuster works on your behalf — not the insurance company's — to negotiate a settlement. In cases of bad faith claim handling, a policyholder attorney may also be an option.
The most important thing to remember is that you don't have to simply accept the first offer. We're here to help guide you through the process — if you're in a dispute and don't know where to start, give us a call.
Umbrella Insurance FAQ
Serious accidents happen to careful people — umbrella insurance is the coverage that protects everything you've worked for when a claim goes beyond what your underlying policies will pay.
What is an umbrella policy?
An umbrella policy is a separate liability policy that provides an additional layer of protection above and beyond the liability limits on your underlying policies — typically your auto and homeowners insurance. When a claim exhausts your underlying policy limits, your umbrella picks up where they leave off.
For example, if you're at fault in a serious auto accident and the damages total $600,000 but your auto policy only carries $300,000 in liability coverage, your umbrella policy would cover the remaining $300,000 rather than that amount coming out of your personal assets.
Beyond just extending your limits, umbrella policies also often provide coverage for certain situations that your underlying policies don't cover at all — such as libel, slander, or defamation claims. In a world where a single social media post can trigger a lawsuit, that broader protection is worth more than many people realize. For most households, an umbrella policy is one of the best values in insurance — a significant amount of additional protection for a relatively modest annual premium.
How much umbrella coverage do I need?
A general starting point is to carry enough umbrella coverage to protect your net worth — your home equity, savings, investments, retirement accounts, and other assets that could be at risk in a lawsuit. If someone wins a judgment against you that exceeds your insurance limits, your personal assets can be pursued to satisfy that judgment.
Most umbrella policies are sold in increments of $1 million, and a $1 million policy is where most people start. For many homeowners that's sufficient, but if your assets are substantial or your liability exposure is higher than average — you have a pool, a trampoline, teenage drivers, a dog, or rental property — a higher limit may be appropriate.
It's also worth thinking beyond just what you own today. In some states, future wages can be garnished to satisfy a judgment as well, meaning your earning potential is also at risk. We recommend sitting down and taking a realistic look at your full financial picture before settling on a limit. The cost difference between $1 million and $2 million in umbrella coverage is typically very small.
Can an umbrella policy include uninsured and underinsured motorist coverage?
Yes — and this is one of the most valuable and least understood features available on some umbrella policies. Certain carriers offer the ability to add uninsured motorist and underinsured motorist coverage to your umbrella, which means your UM/UIM protection can extend beyond the limits on your auto policy just like your liability coverage does.
This matters because serious accidents caused by uninsured or underinsured drivers can result in catastrophic injuries with medical bills, lost wages, and long-term care costs that far exceed standard auto policy limits. If the at-fault driver has no insurance — or only carries state minimum limits — you're left relying entirely on your own UM/UIM coverage to make up the difference. Having that coverage extend through your umbrella can be a significant financial lifeline in a worst-case scenario.
Not all carriers offer this option, and it's not automatically included — it has to be specifically added. If this is something you're interested in, contact us and we'll identify which of our carrier options can make it available to you.
Does an umbrella policy automatically cover all of my underlying policies?
Not automatically — and this is an important distinction. An umbrella policy is tied to the specific underlying policies listed on it, and those policies must meet minimum liability limit requirements set by the umbrella carrier in order for the umbrella to respond.
Typically an umbrella will sit over your personal auto policy and your homeowners or renters policy. If you have other policies — such as a boat, motorcycle, RV, or rental property — those may need to be added to the umbrella separately, and in some cases the umbrella carrier may require those policies to also meet certain minimum limits.
If you have an underlying policy that isn't listed on your umbrella, a gap in coverage can exist where neither policy fully responds to a claim. This is one of the reasons it's important to review your umbrella annually and any time you add a new policy or asset. We make it a point to look at the full picture when setting up an umbrella for our clients — making sure everything that should be covered under it actually is.
What is the difference between an umbrella policy and an excess limits policy?
These two terms are sometimes used interchangeably, but they are meaningfully different and it's worth understanding the distinction before you buy.
An umbrella policy is the broader of the two. It sits above your underlying policies and extends your liability limits, but it also expands your coverage in important ways. Umbrella policies often cover claims and situations that your underlying auto or homeowners policy doesn't cover at all — things like libel, slander, defamation, or false arrest. They essentially add both additional limits and additional coverage categories.
An excess limits policy does only one thing — it adds more limits on top of your existing underlying policy. It doesn't broaden your coverage or fill in gaps. If your underlying policy doesn't cover something, your excess policy won't cover it either. It simply extends the dollar amount available for claims that are already covered.
A practical way to think about it: an umbrella policy makes your coverage both deeper and wider, while an excess limits policy only makes it deeper.
For most personal lines clients, a true umbrella policy is the better choice because of that broader coverage. Excess policies are more commonly seen in commercial lines or in situations where someone needs very high limits above a specific policy without the need for broader protection. If you're shopping for additional liability coverage and aren't sure which you're being quoted, it's a fair question to ask your agent directly.