Term
| liability insurance (Part A) |
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Definition
protects against financial consequences from insured's responsibility for property loss of injuries
MUST have a minimum of liability insurance
can be single limit or split limit coverage |
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Term
| comprehensive (full coverage) |
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Definition
when your car is encumbered by a loan
must insure against liability and for the value of the vehicle
ONLY need if you have a loan on a vehicle |
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Term
| Split Coverage insurance limits |
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Definition
100/300/50 means:
100,000 to each person
300,000 max for whole accident
50,00 for property damage |
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Term
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Definition
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Term
| Combined single limit insurance |
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Definition
100,000
total liability insurance: covers bodily and property losses regardless of the number of people |
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Term
| medical expenses coverages (Part B) |
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Definition
covers all reasonable medical costs, funeral expenses
within 3 years of accident
recommended $50,000 (probably not enough) |
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Term
| uninsured motorist protection (Part C) |
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Definition
coverage if injured uninsured motorist or hit and run driver
another driver must be at fault |
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Term
| comprehensive physical damage coverage (Part D) |
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Definition
AKA collision coverage
regardless of fault
if other drier was at fault and has liability you should be able to recover losses WITHOUT this |
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Term
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Definition
only in "no-fault" states
insurance pays for your losses and their insurances pays for theirs
no legal battle |
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Term
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Definition
| pays for difference between car value and what you still owe on the loan |
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Term
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Definition
| coverage that protects real and personal property from losses |
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Term
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Definition
| the cause of loss (fire, tornado, etc.) |
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Term
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Definition
| what a company must pay for small losses |
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Term
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Definition
| amount necessary to repair, build or replace an asset at today's prices |
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Term
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Definition
| monthly payment you pay for your insurance coverage |
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Term
| HO1: Basic homeowner's insurance |
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Definition
most limited coverage
$15,000 min
fire, lightening, etc... |
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Term
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Definition
"Named perils"
covered named peril (snow, freezing, falling objects, etc.)
about 5-10% more that HO1 |
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Term
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Definition
covers ALL direct physical losses to your home
exceptions: floods, wars, earthquakes, nuclear accidents
about 10-15% more than HO1 |
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Term
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Definition
equivalent to HO2 perils
only available to renters and tenants
covers personal property rather than the dwelling |
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Term
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Definition
similar to HO4
also covers improvements made to dwelling unti |
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Term
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Definition
similar to HO1/HO2
insures dwelling for repair cost or market value instead of replacement value |
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Term
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Definition
A: Dwelling
B: Other structures
C: personal property
D: loss of use |
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Term
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Definition
protects dwelling and any attachments
doesnt cover damage to the land |
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Term
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Definition
unattached dwellings on the property
covers landscaping but not land |
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Term
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Definition
covers all personal property regardless of location (students away form college)
covers property of guests in your home |
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Term
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Definition
| covers losses as a result of your home being uninhabitable (black mold) |
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Term
| Personal liability coverage |
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Definition
protects policy holder in case someone is injured on their property
min of $100,000
medical expenses up to $1000 per person |
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Term
| Supplemental Coverage (endorsements painting) |
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Definition
personal article floaters
earthquake
flood
inflation guard
ex: Katrina |
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Term
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Definition
liability costs after the underlying homeowner's policies have been exhausted
up to $10 mil
exclusions for business, aircraft and water activities |
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