I. AUTOMOBILE TERMS
- Automobile Liability A persons responsibility to
others for bodily injury or property damage caused by his or her
automobile.
- Automobile physical damage Coverage for damage to an
automobile owned by the insured. There
are two kinds of coverage collision and comprehensive insurance.
- Collision coverage Coverage for your automobile when
it overturns or collides with another car or object.
- Comprehensive coverage Coverage for losses to your
automobile, such as fire, vandalism, water, hail, glass breakage, wind,
falling objects and vehicle theft, but not collision.
- Deductible An amount you pay if you have a
claim.
The deductible is subtracted from the amount the company is
obligated to pay. The higher the deductible, the lower the premium.
- Medical expense Covers the medical/funeral expenses of
a person who is injured/killed in an automobile accident. The coverage
applies no matter who is at fault.
- Rental reimbursement Provides temporary coverage for
the rental of a substitute vehicle, while yours cannot be driven because
of collision or comprehensive loss.
- Towing and Labor Provides coverage for general towing
and on the spot labor expenses.
- Uninsured/Underinsured Motorist Coverage Coverage that
applies when you are injured in an automobile accident caused by a
person who does not have insurance, a driver whose liability limits are
not high enough to cover your damages or a hit and run driver.
II. HOMEOWNERS TERMS
- Actual Cash Value (ACV) The value of the property is
figured by determining what it would cost to replace the property (see
replacement cost) and is then adjusted by subtracting an amount that
reflects depreciation or obsolescence.
- Additional Living Expense Covers additional temporary
expenses for hotel/apartment living while you are unable to live in your
home because of damage to your home caused by a peril covered by your
homeowners policy. This
does not cover all your expense, only that amount which is above and
beyond your normal living expense. Should you stay with family or
friends and do not create extra expense, no payment will be made.
- Deductible An amount that you pay in a property claim.
The amount can range from $250 to $10,000.
- Liability Coverage Coverage for
injury to another person or another persons belongings when the loss
is your fault, this does not apply to automobile losses.
- Medical Payments Coverage Covers medical expense for a
person who is injured in an accident at your home even if you are not at
fault (medical payments coverage does not include coverage for you or
members of your household).
- Named Peril Policy Covers any loss that is caused by
one of the covered perils named in the policy.
- Open Perils Policy (special) Covers damage or loss
from all causes except causes that are specifically excluded.
- Out-building (also referred to as other structures or
appurtenant structures) detached buildings on your property such as a
tool shed or garage which is not used in your business or occupation.
- Peril Cause or event that causes a loss such as a
fire, lightening, theft, etc.
- Personal Property or Contents Includes everything in
your home, such as clothes, furniture, appliances, etc.
- Replacement Cost The replacement cost of a building
equals the amount it would cost to construct the house or building today
using materials of the same kind or quality. The replacement cost of a
house does not include the value of the land.
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