Definitions and Terms

Liability Coverage

Liability coverage typically helps to provide you with peace of mind. Why? Because it helps protect you from covered damage your car does to others…damage for which you are legally liable. Liability – Who's typically covered : You, family members or relatives who live with you when (1) driving your car or (2) driving other cars with that vehicle owner's permission.    Other people driving your car when you've given them permission. Liability – What's typically covered: It pays for you (and those covered by the policy) for legal defense costs, cost of bail bonds, and emergency first aid to others.    It pays the people you've injured for property damage, loss of services, bodily injury, sickness, medical services, disease, loss of income and death.   Medical Payments Coverage Medical Payments Coverage typically helps protect you, covered passengers and covered family members. It provides payment for reasonable and necessary medical treatment for bodily injury caused by a covered accident, regardless of who was at fault. That treatment includes, among other things, x-rays, surgery, ambulance, physicians, hospital, and funeral expenses.   Underinsured/Uninsured Motorists Coverage This typically helps cover damages to you and your property ( the property damage coverage is not available in all states, including New York ) caused by another driver who doesn't have insurance (uninsured) or doesn't have adequate insurance (underinsured) to cover your damages. Underinsured/Uninsured Motorists Coverage for Bodily Injury will typically protect you, covered passengers, and covered family members for bodily injury resulting from a covered accident caused by an uninsured or underinsured driver. Uninsured Motorists Coverage for Property Damage (if applicable in your state) will typically pay for covered damage to your insured car caused by an uninsured auto.   Personal Injury Protection This typically provides coverage for an insured person for certain reasonable and necessary expenses. The types of expenses vary by state. Some examples of typical expenses include: medical and hospital expenses, income continuation, loss of services, funeral expenses, and child care expenses for bodily injury caused by a covered accident, regardless of who was at fault. It's only available in certain states.   Collision Coverage This coverage typically pays for damage to your car as a result of a covered accident with another car…or a covered collision with most anything else (e.g. a tree). This coverage provides for the repair or replacement of your insured vehicle, up to the Actual Cash Value of the vehicle. Actual Cash Value takes into account depreciation of your car due to: age, use, and wear and tear. Comprehensive Coverage Comprehensive Coverage typically covers damage to your insured car not caused by collision (a covered accident with another car). This coverage typically includes, among other things, damage caused by falling objects, fire, theft and vandalism, explosion, earthquake and more. Dwelling Protection The building structure defined on your Policy Declarations, where the named insured resides and is principally used as your private residence. Protection for your home from many perils Protection for Other Structures Protects an insured's structures which are separated from the dwelling by a clear space. Protects structures like a detached garage, storage unit, fence, gazebo Personal Property Protection Provides protection against covered loss to movable property like a stereo, bicycle, furniture or clothing. Most Homeowners, Condominium, Mobilehome or Renters Insurance Policies set aside special coverage limits for movable personal property, or categories of personal property, like jewelry, money and securities. You can increase the coverage limits for these and other possessions by selecting an Optional Coverage Endorsement to your Homeowners, Condominium, Mobilehome or Renters Insurance Policy. Family Liability Protection Provides protection for insured persons who become legally obligated to pay for covered accidental bodily injury or property damage to others. This protection does not cover auto liability claims. Guest Medical Coverage Provides protection for your guests, who are accidentally injured on your property as a result of a covered loss. This protection pays for the reasonable and necessary medical expenses they incur, regardless of who was at fault. Additional Living Expenses Coverage We'll pay the reasonable increase in living expenses necessary to maintain your normal standard of living when a direct physical loss we cover makes your residence premises uninhabitable for up to the amount of time specified in the policy. This may include payments for the additional costs of a place to stay, food and other increased living expenses. Replacement Cost Coverage In the event of a covered loss, you may be reimbursed for the cost you incur to replace many of your damaged contents with similar property, brand new. The total amount you'd be reimbursed is subject to the terms and conditions of your particular policy, including applicable deductible and coverage limits Actual Cash Value In the event of a covered loss, you'll be paid the current replacement cost of whatever you lost, minus depreciation.(This generally includes the estimated wear and tear on the item damaged or the loss in value of that item because of aging and use.) Scheduled Personal Property Scheduled Personal Property (SPP) is a convenient way to help protect your valuable personal property.  A certain amount of personal property protection is available under your Homeowners, Condominium, Mobilehome or Renters Insurance Policy, but did you know your personal property protection has limits under these policies? Scheduled Personal Property is an endorsement to your Homeowners, Condominium, Mobilehome or Renters Insurance Policy.  For an additional premium, SPP provides coverage for loss or damage to certain categories of personal and business personal property items whose value or risk potential exceeds the personal property coverage available under Homeowners, Condominium, Mobilehome or Renters Insurance, or under other Optional Coverage Endorsements. Special Flood Hazard Areas (SFHAs) A Special Flood Hazard Area (SFHA) can be defined as an area having special flood, mudflow, or flood related erosion hazards as shown on a Flood Hazard Boundary Map, or Flood Insurance Rate Map. What determines if an area is a SFHA? The Federal Emergency Management Agency (FEMA) identifies and maps flood hazard areas by conducting flood hazard studies and publishing Flood Insurance Rate Maps (FIRMs). Special Flood Hazard Areas (SFHAs) , are based on a "1-percent annual chance flood," which means there is a 1-percent chance of a flood of that size, or greater, happening in any one year. 1 What are the chances a flood will occur? The term "100-year flood" is often incorrectly used and can be misleading. It does not mean that only one flood of that size will occur every 100 years. The term is a statement of probability that scientists and engineers use to describe how one flood compares to others that are likely to occur. The 100-year flood is a relatively rare event, a 1-percent chance in any given year, but structures located in a floodplain have a significant chance, 26-percent, of suffering flood damage during the term of a 30-year mortgage.  This means a home in a mapped Special Flood Hazard Area (SFHA) is five times more likely to be damaged by a flood than to have a major fire. 2