Friday, March 6, 2015

Insurance Terms Round Two!

Welcome back! We hope you all got to play in the snow one last time this week because we are crossing our fingers that we have seen the last of it! The roads are looking better and we are hoping the warming temperatures next week will melt everything, but in the meantime, please continue to be very careful and cautious in your travels.

Today we are going to continue our series on breaking down insurance terms. We feel very strongly about educating our clients and understand that how helpful it is understand and make sense of the terminology being discussed when working through insurance.

So, here are the next 10 commons insurance terms. Remember that all of these will not apply to you and your insurance needs, but it's still a good idea to scan through all of them.

Emergency assistance

Applies to: autoclassic carboat and RV insurance
For auto and classic car: Emergency assistance for your auto or classic car includes the towing and emergency services of Roadside Assistance and enhances it with coverage for transportation costs like taxi fare, emergency lodging and damage or theft of your personal property.
For RV: Emergency assistance for your RV includes all the features of Roadside Assistance plus adds coverage for personal property, temporary living expenses and alternative transportation costs if your RV becomes uninhabitable.
For watercraft: Emergency assistance will reimburse you for the cost of on-water towing, labor and emergency services like delivery of fuel, oil or loaned battery to your watercraft while disabled on the water.

Equipment breakdown coverage

Applies to: home insurance
Equipment breakdown coverage is a type of home warranty that extends to your essential home systems and appliances. It provides protection in the event of an unexpected mechanical or electrical breakdown not caused by normal wear and tear or corrosion. Equipment breakdown coverage can be used to replace costly and confusing coverage provided by home warranties and big-box retailer extended warranties. It’s an alternative way to protect both your belongings and your budget.

Extended dwelling coverage

Applies to: home and landlord protection insurance
Extended dwelling coverage provides a choice of up to an additional 25 percent or 50 percent more coverage to help pay for unexpected repair or rebuilding costs that exceed the amount covered by your base homeowners or Landlord Protection policy.

Fuel spill liability and wreckage removal

Applies to: boat insurance
Helps pay for the cost associated with cleaning up fuel spills and removing wreckage debris after an on-water accident. If your boat sinks or is seriously damaged, there is a chance that it could leak oil or fuel into the water. As the boat's owner you are required by law to have this cleaned up, which can be time consuming and expensive. Safeco will also help pay costs related to having your sunken or sinking boat raised and removed when required.

Guaranteed auto protection (GAP)

Applies to: auto
GAP is loan and lease protection. It covers the difference between how much is left on your loan or lease and how much your car is actually worth if it’s declared a total loss.

Guest passenger liability

Applies to: motorcycle insurance
Motorcycle guest passenger liability helps cover the cost of hospital bills and medical care that you may be held responsible to pay if you cause an accident that injures your guest passenger. It is similar to bodily injury liability, but specifically for a guest passenger. In most states, guest passenger liability is mandatory on all street bikes, and optional for off-road bikes.

Identity theft

Applies to: homecondo and renters insurance
Identity theft occurs when someone steals your personal information and uses it to open accounts or incur charges without your permission. Thieves can access your personal information in a variety of ways, such as stealing your personal mail, your wallet or hacking your computer files. A thief can use your identity to rack up debt in your name or get a fake driver’s license. For more information on identity theft and tips on prevention visit the Federal Trade Commission’s Fighting Back Against Identity Theft website.


Providing indemnity means to financially restore someone after a loss, through payment, repair or replacement.

Insurance score

A Credit-Based Insurance Score (CBIS) is derived from information on your credit report. It is a number that measures the likelihood of having an insurance claim, not a measure of credit worthiness. Insurers use CBIS along with a number of other factors, including driving records, claims history, and the type of home or vehicle you own, to evaluate new and renewal auto and homeowner insurance policies.

Insurance to value

Applies to: homecondo and landlord protection insurance
Insurance to value is a ratio that reflects the relationship between insurance coverage limits and the actual cost to completely rebuild, repair or replace a covered item after a total loss. Safeco typically requires 100 percent insurance to value, meaning your policy limits are sufficient to replace the covered property in the event of a total loss.

Don't forget to check out last week's post if you missed it! There are some very practical, useful terms included in that list. Have a great weekend and get ready for the warm-up next week!

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