Understanding Insurance Terms
Additional Living Expenses
If you can’t live in your home because of a loss that is covered by your policy, your insurance company may pay the necessary increase in living expenses while the damage is assessed and your home is repaired or rebuilt.
C.L.U.E. (Comprehensive Loss Underwriting Exchange) is a claims history database created by ChoicePoint that enables insurance companies to access consumer claims information when they are underwriting or rating an insurance policy. It usually contains up to five years of personal auto or personal property claims history. You can order a C.L.U.E. report from LexisNexis Personal Reports at their toll free number (1‐866‐312‐8076) or you can request a copy from the seller of the home you are purchasing.
This will pay to repair your automobile, classic auto, motorcycle, or RV damages caused by an accident. Your agent can help you determine the limits you need based on the agreed value of your vehicle.
This will pay to repair or replace your vehicle if it is stolen, vandalized, or damaged in some way other than in an accident. It may also include loss from fire, cracked windshields, floods, falling objects, and wind.
This is what you agree to pay out of pocket in case of a loss. The deductible you choose often affects how much you pay for your premium. For example, a higher deductible usually means a lower premium. When there is a covered loss, you will only be required to pay your deductible and the insurance company usually covers the excess, up to the applicable limit for that loss under your policy.
Emergency & Roadside Assistance
For auto, boat, and personal watercraft, emergency assistance pays for the cost of towing or emergency service. For RVs, it also covers housing and transportation costs if your RV becomes uninhabitable and covers the loss of personal property inside your RV. Some policies also provide roadside assistance for motorcycles.
This is sometimes used interchangeably with “umbrella” and refers to extended liability coverage. This coverage is meant to supplement your insurance coverage if the damages exceed your liability coverage. Be sure to talk to H&H Insurance Brokers about what your excess liability covers.
Companies and businesses often purchase this type of coverage to protect them against loss from employee dishonesty, such as theft of money, equipment, or other assets.
Identity theft occurs when someone steals your personal information and uses it to open accounts or incurs 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. The thief then uses your identity to rack up debt in your name or even issue fake IDs. For more information on identity theft and tips to prevent it, visit the Federal Trade Commission’s Identity Theft site.
Providing indemnity means to financially restore someone after a loss, by means of payment, repair, or replacement.
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 but not a measure of credit worthiness. Insurers can use the CBIS along with a number of other factors, including driving records, claims history, and the type of home or vehicle owned, to evaluate new and renewal auto and homeowner insurance policies.
Medical Coverage (Home)
This covers medical expenses for guests in your home if they are injured on your property, and in certain cases will cover people who are injured off your property. It does not cover healthcare costs for you or other members of your household.
Medical Coverage (Auto, Boat, Personal Watercraft, Motorcycle, RV)
This provides for your passenger and your medical expenses that are the result of an accident.
Liability & Personal Liability Coverage
For homeowners, this coverage applies to someone who is injured or property is damaged and you are at fault. The coverage applies anywhere in the world. When choosing liability coverage for your home, auto, boat, personal watercraft, or RV, consider things such as how much money you make and what you own. Your liability coverage should be high enough to protect your belongings if you are sued.
Personal Property Coverage
There are things in your home that mean a lot to you: clothing, furniture, sports equipment, etc. This coverage helps repair or replace those items if they are lost, stolen, or destroyed as a result of an insured event.
Personal Watercraft (PWC)
A personal watercraft (PWC) is a recreational watercraft where the rider sits or stands on, rather than inside of, as in a boat. Models have an inboard engine driving a pump jet that has a screw‐shaped impeller to create thrust for propulsion and steering.
Physical Damage Coverage for Watercraft
This pays for the damage done to your watercraft as a result of 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.
This is the payment you make in exchange for one term of policy coverage.
Property or Dwelling Coverage
This typically pays to repair or rebuild your home if it is damaged or destroyed by an insured event.
Scheduled Personal Property Coverage
This is additional coverage for special items such as jewelry, art, furs, antiques, or collectibles.
Umbrella insurance is coverage that may take effect when your losses under other insurance policies, such as homeowners and auto, have exceeded policy limits.
At H&H Insurance Brokers, we realize that insurance industry language can be confusing. We want to make sure that you clearly understand your options and know exactly what you’re paying for.