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Coverage Definitions

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Auto Insurance Coverage Definitions

Liability Coverage:

Required by state law. Provides coverage for money the policyholder is legally obligated to pay because of bodily injury or property damaged caused to another person and covered by the policy.

Medical Payment Coverage:

Medical Payment coverage pays certain medical and funeral expenses resulting from a motor vehicle accident. This coverage protects you and anyone occupying your vehicle. These benefits are payable without regard to fault and may be supplemental to any other medical insurance you have.

Uninsured/Underinsured Motorist Coverage:

This coverage protects you, your resident relatives, and occupants of a covered vehicle when any sustains bodily injury or death from an accident in which the owner or operator of a motor vehicle which is legally liable does not have insurance or does not have enough insurance. Principal exclusions include no coverage for any person while using or occupying 1) a covered vehicle being used to carry persons or property for a fee, 2) a covered vehicle driven without permission of the insured owner, 3) a non-owned vehicle without the permission of the owner.

Optional Coverages:

- Collision - Pays for damage to your auto from collision with another auto or object.

- Comprehensive or Other than Collision - Pays for damage to your car by accidents such as fire, theft, flood, windstorm, vandalism, hitting an animal or falling objects.

- Towing and Labor - Pays for towing or labor costs when your vehicle breaks down away from home. The labor must be performed where the breakdown occurs for coverage to apply.

- Rental Reimbursement - Pays for the cost to rent an auto when yours is being repaired due to damage from collision or other than collision. Rental time may be limited.

- Uninsured/Underinsured Property Damage - Pays for damage done to your car due to an accident caused by someone without auto insurance. Is only available if you don't have Collision coverage.

- Auto Loan/Lease (GAP) Coverage - In the event of a total loss pays for the "gap" between the actual cash value of your car and your loan or lease obligation.



Homeowner Coverage Definitions

Standard Coverages:

The basic part of your Homeowners insurance package covers the physical structure of your home and your personal property from damage from loss caused by such things as fire, lightning, windstorm, smoke, freezing, theft, glass breakage, explosion and ice snow or sleet. The amount of coverage on the dwelling is usually a "Replacement Cost" amount calculated to replace the dwelling if there is a total loss. In some cases and with some insurance companies, "Market Value" is available. That is the amount your dwelling would sell for.

For those losses caused by the negligence of you or others in your household which result in injury to another person or damage to his or her property, your homeowners package provides liability coverage. With this coverage, you and other household members are protected in the event that you are found legally responsible for such injuries or damages.

Included in the insurance package are:

- Other Structures - other structures on the property such as a separate garage or storage building.

- Personal Property - house furnishings and other items of personal property such as bicycles, computers or musical instruments.

- Loss of use - pays for lodging expenses if you have to move out while repair is done after a covered claim.

- Medical pay to others - provides medical expense payments to persons other than residents of your household who are injured on your property.

Optional Coverages:

- Personal Property Replacement cost - damage to personal property will be paid for full current replacement cost instead of pro-rated value of the property.

- Increased value of other structures - if the amount on the policy is insufficient to cover other structures, additional coverage can be added.

- Scheduled Personal Property - high valued items can be insured separately such as jewelry, antiques, gun collection. This way can assure you will be reimbursed for their full value with no deductible.

- Water Back-up and Sump Overflow - covers damage caused by water that backs up through sewers or drains that is not caused by your negligence.

- Earthquake coverage - provides coverage for loss due to earthquake.


NOTE: Homeowners insurance does not cover Flood.

[The above are only brief statements of coverage and specific coverages and exclusions may vary with your particular policy.]


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