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INSURANCE TERMS, EXPLAINED – FEBRUARY 2021

CONTINUED FROM JANUARY 2021

AUTO INSURANCE TERMS

AFTERMARKET PARTS: VEHICLE PARTS MADE BY A DIFFERENT COMPANY THAN THE ONE THAT MANUFACTURED THOSE ORIGINALLY INCLUDED WITH THE VEHICLE.

BODILY INJURY COVERAGE: COVERS EXPENSES FOR PHYSICAL INJURIES, SUCH AS HOSPITAL BILLS OR MEDICAL CARE.

COLLISION COVERAGE: THIS PAYS FOR DAMAGE TO A VEHICLE CAUSED BY YOU OR SOMEONE ELSE COVERED BY YOUR POLICY.

COMPREHENSIVE COVERAGE: IF YOUR VEHICLE IS DAMAGED BY SOMETHING YOU COULD NOT CONTROL, SUCH AS FIRE OR A TREE FALLING, COMPREHENSIVE COVERAGE APPLIES.

PIP(PERSONAL INJURY PROTECTION): THIS PAYS MEDICAL EXPENSES FOR A POLICYHOLDER, OR ADDITIONAL INSURED, AND THEIR PASSENGERS, IF THEY ARE HURT IN AN AUTO ACCIDENT, REGARDLESS OF WHO IS AT FAULT.

UNINSURED/UNDERINSURED MOTORIST(UIM): PAYS FOR YOUR DAMAGES AND EXPENSES IF ANOTHER DRIVER IS AT FAULT IN AN ACCIDENT BUT DOES NOT HAVE ENOUGH INSURANCE TO COVER YOUR COSTS.

 

 

HOME INSURANCE TERMS

 

ADDITIONAL LIVING EXPENSES: COVERAGE FOR EXPENSES ABOVE YOUR USUAL LIVING EXPENSES, SUCH AS IF YOU HAD TO STAY IN A HOTEL BECAUSE YOU CNT’ LIVE IN YOUR DAMAGED HOME.

FLOOD INSURANCE: TYPICALLY, STANDARD HOMEOWNERS POLICIES DO NOT PROVIDE COVERAGE FOR FLOODING-IT MUST BE PURCHASED SEPERATELY.

HOME CONTENTS: THESE ARE THINGS INSIDE YOUR HOUSE THAT ARE NOT FIXED TO THE STRUCTURE, SUCH AS YOUR FURNITURE, APPLIANCES, ECT.

SCHEDULED PERSONAL PROPERTY:  SEPARATE COVERAGE FOR HIGH-VALUE ITEMS, SUCH AS EXPENSIVE JEWELRY, THAT EXCEEDS THE LIMITS OF YOUR POLICY OR ARE OTHERWISE EXCLUDED.

CATASTROPHE: A DISASTER, SUCH AS A HURRICANE OR TORNADO, THAT IMPACTS A SPECIFIC AREA AND RESULTS IN SIGNIFICANT DAMAGE.

PERIL: A SPECIFICALLY DEFINED RISK, SUCH AS HAIL, FLOODING, WIND, ETC.

 

IF SOMETHING IS NOT CLEAR WHEN YOUR’E BUYING OR CONSIDERING INSURANCE, DON’T BE AFRAID TO ASK QUESTIONS!!  WE ARE HERE TO HELP YOU GET THE COVERAGE YOU NEED- AND MAKE SURE YOU UNDERSTAND IT, TOO.