The Firebird Agency is an insurance agency that specializes in property and casualty insurance. Our clients span the United States and are the reason we love what we do. We work with individuals, families and businesses to provide them with the best protection coverage at the most competitive price.
We are the preferred property and casualty agency for many financial representatives/professionals throughout the country because of our knowledge, efficiency, and integrity.
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Frequently Asked Questions
Here are quick answers to some of the insurance questions we hear most often.
What is property & casualty (P&C) insurance?
P&C insurance is a broad category that protects people and businesses from financial losses
related to physical property damage and legal liability. Property coverage pays to repair or replace
your belongings after events like fire, theft, or storms. Casualty (liability) coverage pays when
you're legally responsible for injury or damage to someone else. Common P&C products include
homeowners, auto, renters, and commercial insurance.
What is a premium and how is it calculated?
A premium is the amount you pay — monthly, semi-annually, or annually — to keep your policy
active. Insurers calculate it based on your risk profile: your age, location, claims history, credit
score, the type and value of what's being insured, and the coverage limits and deductibles you
choose. Higher risk generally means a higher premium.
What is a deductible and how does it work?
A deductible is the amount you pay out of pocket before your insurance kicks in. If you have a
$1,000 deductible and file a $4,000 claim, you pay the first $1,000 and the insurer covers the
remaining $3,000. Choosing a higher deductible typically lowers your premium, while a lower
deductible means the insurer steps in sooner — but your premium will be higher.
What is a coverage limit?
A coverage limit is the maximum dollar amount your insurer will pay for a covered loss. If your limit
is $200,000 and a claim reaches $250,000, you're responsible for the $50,000 gap. Always make
sure your limits are high enough to fully cover your most likely exposures — especially for liability.
What is the difference between a named peril and an open peril policy?
A named peril policy only covers losses from specific risks listed in the policy (e.g., fire, theft,
windstorm). An open peril (or "all-risk") policy covers all causes of loss except those explicitly
excluded. Open peril policies are broader and generally preferred — they cover scenarios you
may not have anticipated.
What is liability coverage and why do I need it?
Liability coverage pays for bodily injury or property damage you accidentally cause to others. For
example, if someone slips on your property or you cause a car accident, liability coverage pays for
their medical bills and legal costs — up to your policy limit. Without it, you'd pay these costs
directly out of pocket, which can be financially devastating.
What is the difference between actual cash value and replacement cost?
Actual Cash Value (ACV) pays what your property is worth today — after accounting for
depreciation. So a 5-year-old laptop that cost $1,200 might only get you $400. Replacement Cost
Value (RCV) pays what it costs to buy a comparable new item today, with no depreciation
deduction. RCV policies have higher premiums but offer significantly better protection.
What is typically excluded from P&C policies?
Common exclusions include: floods and earthquakes (usually require separate policies),
intentional acts, normal wear and tear, government action or war, and damage from neglect or
lack of maintenance. Always read the exclusions section carefully — it defines the boundaries of
what your policy actually protects.
What is an umbrella policy?
An umbrella policy provides extra liability coverage that kicks in once your underlying policy limits
are exhausted. For example, if an auto accident results in $800,000 in damages but your auto
policy only covers $300,000, your umbrella policy covers the remaining $500,000. It's a cost-
effective way to protect your assets against major lawsuits.
Does bundling home and auto insurance save money?
Yes — most insurers offer a multi-policy discount (typically 5–25%) when you bundle home and
auto with the same carrier. Beyond the savings, bundling also simplifies your billing and claims
experience. It's one of the easiest ways to reduce your total insurance cost without reducing your
coverage.
How much coverage do I actually need?
You need enough coverage to protect your most valuable assets. As a general rule: insure your
home for the full cost to rebuild (not market value), carry enough auto liability to protect your net
worth, and don't under-insure personal property. Review your coverage annually, especially after
major life events like buying a home, starting a business, or growing your family.
What is the difference between an independent agent and a captive agent?
A captive agent works exclusively for one insurer (e.g., State Farm, Allstate) and can only sell that
company's products. An independent agent represents multiple insurers and can shop the market
on your behalf to find the best fit for your needs and budget. Independent agents often provide
broader options, especially for unique or complex risks. Agents at The Firebird Agency are all
independent agents.
What should I look for when comparing insurance quotes?
Don't compare on price alone. Check: (1) coverage limits and what's included/excluded; (2)
deductible amounts; (3) the insurer's financial strength rating (AM Best, S&P); (4) customer
service and claims reviews; and (5) available discounts. A cheaper policy with key gaps can cost
far more than a slightly higher premium with comprehensive protection.
Why is my insurer non-renewing or cancelling my policy?
Insurers may non-renew policies due to excessive claims, increased risk in your area (e.g., wildfire
or flood zones), changes in their underwriting appetite, or state regulatory decisions. Cancellation
mid-term is less common and typically occurs for non-payment or material misrepresentation. If
this happens, start shopping early — you have rights and usually a notice period to secure new
coverage.
This FAQ is for informational purposes only and does not constitute legal or insurance advice. Coverage terms, exclusions, and availability vary by insurer and state. Consult a licensed insurance professional at The Firebird Agency for guidance specific to your situation.
While our offices are located in Arizona and California, we are licensed all over the country.
