Tornadoes, earthquakes, and flooding have all been in the news recently. You never know when a major catastrophe may occur. It is a good idea to have an emergency kit prepared in advance. Some items to include in your emergency kit are…
There are many insurance terms that may be confusing or require clarification. We put together this list to help you better understand your insurance policy. You may also want to take a look at the Frequently Asked Questions page.
Disclaimer: The information provided below is intended to be a guide to understanding common insurance terms. Madia Insurance Agency, Inc. does not intend this information to be definitive or legally binding.
Accidental Death Benefit: A coverage which pays when an insured dies in a motor vehicle accident within 24 months from the date of accident.
Bodily Injury Liability: Physical injury or death to a third party for which the insured is legally liable.
Collision: This coverage pays for damage to an insured’s vehicle caused by an impact with another vehicle or object.
Comprehensive: This coverage pays for damage to an insured’s vehicle from causes other than a collision such as fire, theft, vandalism, or contact with an animal.
Extraordinary Medical Benefit: This coverage pays for medical and rehabilitative expenses in excess of $100,000, which result from an auto accident.
Full Tort: An insured retains full rights to seek financial compensation if injured in an auto accident.
Funeral Benefit: A coverage which pays the funeral, burial or cremation expenses if an insured dies in a motor vehicle accident within 24 months from the date of the accident.
Income Loss Benefit: A coverage which pays loss of income to an insured who is injured in an auto accident and is now unable to work.
Limited Tort: An insured can only seek financial compensation if injured seriously in an auto accident.
Medical Benefit: This coverage pays for medical bills of an insured resulting from an auto accident.
Property Damage Liability: Damage to someone’s physical property for which the insured is legally liable.
Road Service: A coverage which pays for towing and labor costs due to your vehicle being disabled. Labor must be done at the site of the disablement.
Transportation Expenses: A coverage which pays if a rental car is required due to a covered loss.
Underinsured Motorist: This coverage pays for bodily injury sustained by an insured resulting from an auto accident with an at-fault driver who is underinsured.
Uninsured Motorist: This coverage pays for bodily injury sustained by an insured resulting from an auto accident with an at-fault driver who is uninsured or flees the scene of the accident.
Dwelling Coverage: This coverage provides protection for your dwelling including structures attached to the dwelling, for damage caused by a covered loss.
Loss Of Use Coverage: This coverage is for the additional expenses incurred in the event the dwelling becomes uninhabitable due to damage caused by a covered loss.
Medical Payments To Others Coverage: This coverage is for medical expenses that an insured may be held responsible for due to an injury sustained on the insured’s property.
Other Structures Coverage: This coverage provides protection for structures on the insured’s premises that are clearly separated from the dwelling, for damage caused by a covered loss. Examples of other structures are detached garages and storage sheds.
Personal Liability Coverage: This coverage provides protection in the event a claim or lawsuit is brought against an insured for damages because of bodily injury or property damage.
Personal Property Coverage: This coverage provides protection for an insured’s personal property in the event of a covered loss.
Beneficiary: The person(s) named in the policy to receive the life insurance proceeds upon the death of the insured.
Cash Surrender Value: The amount payable to an insured who surrenders cash value life insurance, which terminates all insurance benefits.
Permanent Life Insurance: A type of life insurance that combines a death benefit with a cash value component that builds over time.
Policy Loan: A loan made by a life insurance company from its general funds to a policyowner on the security of the cash value of a policy.
Term Life Insurance: A type of life insurance that provides protection for a specific number of years – typically 10, 20 or 30 years. This type of policy does not have a cash value.
Declaration Page: Insurance policy component that indicates the named insured and address, policy term, the amount of insurance, policy forms, deductible, premium and related information that is specific to the insured.
Deductible: The amount that an insured has agreed to pay on a claim before the insurer is liable for any damages.
Named Insured: The individual or business named in the policy declaration.
Subrogation: A process that permits the insurance company to seek payment recovery against negligent third parties.
