INSURANCE GLOSSARY
AUTO TERMS
Liability or Bodily Injury Coverage - Protects you against claims resulting from injuries to other people. Example: if you cause an auto accident resulting in injury to another person, this would help pay their medical expenses.
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Property Damage Coverage - Helps pay to repair the damage you caused to another person's vehicle or property.
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Comprehensive Coverage - Helps cover to repair or replace your vehicle if it is damaged or stolen in an incident that is not a collision. Example: you left your windows open during a rain storm and the interior of the car had to be replaced.
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Collision Coverage - Covers the repair or replacement of your vehicle if it is damaged in a collision. Example: A collision could be with another vehicle, animal, or object like a street sign.
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Comprehensive Deductible - The amount you must pay out of pocket after a claim has been approved to repair or replace your vehicle. Special note: Higher the deductible, usually the premium will be lower since you are taking on more of the risk.
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Collision Deductible - The amount you must pay out of pocket after a claim has been approved to repair or replace your vehicle. Special note: Higher the deductible, usually the premium will be lower since you are taking on more of the risk.
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Uninsured/Under Insured Motorists Coverage - Covers you and your passengers's injuries, and damage to your vehicle if you are hit by a driver who does not have insurance or is under insured. Special note: it is important to ensure you have enough coverage to cover potential medical expenses and replacement of your vehicle. State Minimum is $25,000/$50,000, but this typically will not cover expenses of a severe accident.
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Medical Payments - Covers medical expenses to treat you and your passengers' injuries from an accident involving your vehicle up to the policy limits.
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HOME/CONDO/RENTER TERMS
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Liability or Bodily Injury Coverage - Protects you against claims resulting from injuries to other people. Example: if someone gets hurt at your home resulting in injury to another person, this would help pay their medical expenses.
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Replacement Cost - The total cost to rebuild your home from scratch reflecting today's prices, construction methods, and building codes.
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Dwelling Coverage - The amount of coverage specified that will be applied to repair or build your home in the event of a loss. This coverage is for the home and anything directly attached to it. It does not cover detached structures or fences. Special note: It is important to review this coverage every year to ensure it has been adjusted based on market conditions and inflationary costs to ensure the proper dollar amount of coverage.
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Other Structures Coverage - The amount of coverage declared to repair or replace other structures such as a stand alone shed, garage, or privacy fence. Special note: if you have a large stand alone workshop/garage, you may need to increase the coverage over the standard defined amounts calculated based off the dwelling coverage.
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Personal Property - The amount of coverage specified to cover the repair or replacement of your personal property(contents) at the time of loss. Special note: it is important to keep records of your personal belongings incase you need to file a claim. You will be required to fill out paperwork listing all of your content details. We recommend taking pictures of video of each room as a reminder of all key items.
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All Perils Deductible - The amount you must pay out of pocket after a claim has been approved to repair or replace your home. Special note: Higher the deductible, usually the premium will be lower since you are taking on more of the risk.
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Medical Payments - Covers medical expenses to treat you and your family's injuries from an accident at your home up to the policy limits.
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Loss Assessment - is an optional endorsement that you can add to your policy. It helps protect you if you live in a shared community, like a condo or homeowners association, where you are responsible for a portion of the damage or loss in a common area.
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GENERAL TERMS
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Premium - The cost to cover your home or auto on an annual or monthly basis.
Deductibles - The amount you pay out of pocket once a claim has been approved. Generally speaking, higher the deductible the lower your premium will be. The higher the deductible the more financial risk you accept which means the insurance carrier sees you a lower risk to file small claims.
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Rental Car - The amount the carrier will reimburse you to use a rental car after an accident. Generally amounts will look like 30/900 - this means $30 a day up to $900
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Road Side - This is a service that can be purchased. Each carrier offers different limits, but generally speaking it covers basic assistance and having your vehicle towed up to 20 miles. Anything over 20 miles would be at your expense.
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