Thursday, March 19, 2015

Insurance Terms -- Final Installment!

Welcome back for our final post in our insurance term series. We hope you have found the past few posts informative and helpful. Do you feel just a little bit smarter discussing your insurance needs? We know learning these terms is not the most entertaining topic to discuss, but it is worth your while to know the basics and understand what your agent is sharing with you.

So, here is the end of our list. We encourage you to reference any and all of the past few weeks' posts if you need a refresher or have a specific situation arise where you need to know about a particular type of coverage. Use these blog as a guide and starting point for our insurance discussions.

Personal watercraft

Applies to: boat insurance.
A personal watercraft, or PWC, is a floating recreational vehicle on which you ride by sitting or standing, as opposed to riding inside a cabin or cockpit like with a boat. Models have an inboard engine driving a pump jet that has a screw-shaped impeller to create thrust for propulsion and steering. Popular personal watercraft include Jet Skis, WaveRunners, Sea-Doos and AquaTrax.

Pet coverage

Applies to: auto, classic car, RV and boat insurance.
For auto, classic car and RV: Pet coverage pays for veterinary expenses or a death benefit if your cat or dog is injured or dies in a collision, even if they’re in someone else’s car.
For watercraft: Pet coverage for your dog or cat provides for veterinary expenses or a death benefit if your cat or dog passes away or is injured as a result of upset, collision or theft of your watercraft.

Physical damage coverage

Applies to: auto, motorcycle, classic car, RV and boat insurance.
For auto, motorcycle, classic car and RV: Physical damage is a general term that includes both comprehensive and collision coverage.
For watercraft: Physical damage helps pay to repair damage to your watercraft caused by an accident. It also generally pays to repair or replace your watercraft for insured situations such as theft, fire, vandalism or other non-collision damages that occur in or out of the water.

Premises liability coverage

Applies to: landlord protection insurance.
Premises liability coverage includes both personal injury protection and medical payments. Personal injury covers wrongful eviction or entry, invasion of privacy, libel and slander. Medical payments helps cover hospital bills and medical care expenses for guests if they are injured on your rental property and you’re held responsible.


Applies to: auto, home, condo, renters, boat, classic car, motorcycle, RV, landlord protection and umbrella insurance.
Your insurance premium is the total cost or amount you pay in exchange for one term of policy coverage. One term of policy coverage is usually six or 12 months.

Property or Dwelling coverage

Applies to: home and landlord protection insurance.
Helps cover the cost to repair or rebuild your home if it’s damaged or destroyed by something your insurance policy covers, like a kitchen fire or a tree falling through the roof. This is the main component of home insurance and Landlord Protection insurance.

Roadside Assistance

Applies to: auto, classic car, motorcycle, RV and boat insurance.
For auto, classic car, motorcycle and RV: Your coverage could provide roadside assistance to help you change a flat tire, deliver gas, oil or other essential fluids like radiator and brake fluid, jump start your battery and send out a locksmith if you’re locked out of your car. Motorcycle Roadside Assistance also includes trip interruption coverage which helps pay for lodging, food and alternate transportation.
For watercraft: Roadside Coverage for your boat or PWC trailer, and the car or truck you’re towing it with while on your way to or from the water.

Total loss

Applies to: auto, home, condo, renters, boat, classic car, motorcycle, RV and landlord protection insurance.
A total loss is declared when the cost of repairs will be greater than the total current market value of your vehicle or property. Model, year, mileage, condition, options, school districts, land value, location and your local market area are all factors in deciding if your property or vehicle is a total loss. Sometimes a total loss is simply called totaled, as in “My car was totaled.”

Umbrella insurance

Applies to: umbrella insurance.
An umbrella insurance policy is an additional layer of liability coverage that may cover you when your other insurance policies, such as homeowner’s and auto, have exhausted the maximum amount they will pay for liability claims.

Underlying insurance policy

Applies to: umbrella insurance.
When an umbrella policy is adding protection to another insurance policy, like your auto insurance for example, your auto insurance is the underlying insurance policy. Any and all of your other policies being protected by umbrella insurance are considered underlying insurance policies.

Underlying liability coverage
Applies to: umbrella insurance.
When an umbrella policy is adding protection to another insurance policy, like your auto policy for example, the underlying liability coverage is the maximum amount your auto policy will pay for liability claims.


Underwriting is the process your insurance company uses to assess risk when deciding whether to issue a policy of insurance to a customer.

Uninsured/underinsured motorist

Applies to: auto, classic car, motorcycle, RV and umbrella insurance.
Helps pay for damages associated with bodily injury or death from an accident caused by an uninsured, underinsured or hit-and-run driver. Specifics of what is covered by these terms can vary from state to state. It may also cover you if you are hit as a pedestrian.

Valuable articles coverage

Applies to: home, condo and renters insurance.
Your new ring is worth more to you than just money, but it's still smart to make sure it has extra protection. Other special possessions, such as fine art, antiques and collectibles may also need to have this type of additional coverage. There is no deductible applied to valuable articles coverage claims.

Have we missed any terms you would like to know more about? Remember, we are here to help you and educate you in every way we can, so please let us know if there is a topic you would like us to cover. In the meantime, have a safe week and stay tuned for next week's post!

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