Welcome back! We hope you've had a great week and have enjoyed the warmer weather. It has been a busy week for us at First Advantage Insurance! It has been great to meet some new clients and prepare quotes for their families, and we have a high volume of customers calling in with questions and changes to their policies.
We are continuing our insurance term series this week with Volume 3 of terms. Again, these are practical, everyday insurance terms that you will hear often when we discuss our various options of coverage and assess what your family needs. We've tried to make it very easy by noting what type of insurance each term relates to, so if you are focused on home or car insurance for example, you can scan through and find those terms!
Applies to: auto, home, condo, renters, boat, classic car, motorcycle, RV, landlord protection and umbrella insurance.
Liability limit is the maximum dollar amount your insurance policy will cover for liability. For example, if your auto insurance has liability limits of 25/50/25, the maximum dollar amount your policy will pay is $25,000 for a person injured in an accident, a combined total of $50,000 for all people injured in a single accident, and $25,000 for property damage. Minimum liability limit is the compulsory, or the minimum amount of auto liability insurance you’re required to have in your state.
Loan and lease protection
Applies to: auto, motorcycle and RV insurance.
Loan and lease protection covers the difference between how much is left on your loan or lease and how much your car, motorcycle or RV is actually worth if it’s declared a total loss. It is also called guaranteed auto protection (GAP) when applied to auto insurance.
Loss of use
Applies to: auto, classic car, RV, home, condo and renters insurance.
For property: Loss of use means you are unable to live in your home while it is being repaired or rebuilt.
For vehicles: Loss of use means you are unable to drive your car or RV while it is being repaired.
Additional living expenses and rental car reimbursement are two types of loss of use coverage.
Applies to: home, condo and landlord protection insurance.
The market value of your home is based on current economic conditions, school districts, the value of the land, location, and other factors. It’s the price your home would sell for if you put it up for sale. Market value should not be confused with your home’s replacement value.
Medical payments (MedPay)
Applies to: auto, classic car, boat, motorcycle, RV, home, condo, renters and landlord protection insurance.
For auto, classic car, boat, motorcycle and RV: Medical payments helps cover hospital bills and medical care expenses for you or your passengers injured in an accident, no matter who is at fault. MedPay for boat also includes injuries from water-skiing and wake-boarding.
For home, condo and renters: Medical payments help cover hospital bills and medical care expenses for guests if they are injured on your property. In certain situations it also helps cover people who are injured off of your property. It does not cover healthcare costs for you or other members of your household.
For landlord protection: Medical payments is part of premises liability and helps cover hospital bills and medical care expenses for guests if they are injured on your rental property.
Personal effects coverage
Applies to: boat insurance.
Personal effects coverage protects your clothing, scuba and snorkeling gear, fishing equipment and other personal items from damage and theft.
Personal injury protection (PIP)
Applies to: auto and motorcycle insurance.
Personal injury protection or PIP helps pay for hospital bills and medical care expenses for you and your passengers injured in an accident, no matter who was at fault. Some states require personal injury protection as part of your auto or motorcycle insurance coverage.
Personal liability coverage
Applies to: home, condo and renters insurance.
If someone other than a family member is injured or property is damaged and you are held legally responsible, personal liability coverage helps cover the cost of hospital bills, medical treatment or repairs you may be obligated to pay for.
Personal offense coverage
Applies to: home insurance.
Personal offense coverage is an optional coverage on a homeowners policy to protect against libel or slander liability.
Personal property replacement cost coverage
Applies to: home, condo and renters insurance.
Your home is filled with furniture, clothes, sports equipment, and other items that mean a lot to you. Personal property replacement cost coverage will help pay for the actual cost to replace your personal belongings that are lost, stolen or destroyed as a result of an insured event.
We also want to share a fun fact that we came across. John Harrison, the man who is the official taste tester for Dreyer's Ice Cream, insured his tongue for $1,000,000!!! That is one valuable body part!