Understanding insurance and it's terms can take you along way. Below you will find common terms for Automobile and Homeowners personal coverage insurance. Click here for even more insurance terms.

Automobile

Liability - Insurance company pays for bodily injury and property damage for which any insured becomes legally responsible because of an automobile accident. Recommended limits $500,000.

Medical Payments - Insurance company will pay for medical expenses for the name insured and insured as a result of an accident.

Uninsured Motorist - Insurance company will pay bodily injury in situations where another person causes an accident and has no insurance.

Underinsured Motorist - Insurance company will pay bodily injury in situations where another person causes an accident and has inadequate insurance.

Deductible - The insureds responsibility in a loss. You pay this portion of the loss first. The Insurance company will pay for that part of your loss that exceeds your deductible (subject to exclusions and limits)

Comprehensive - Insurance company will pay for glass breakage, theft, vandalism, hail damage, flood and fire damage of the insured vehicle.

Collision - Insurance company will pay for an insured vehicle to be repaired when involved in an accident with another vehicle or object. A deductible applies.

Homeowners

Dwelling - Covers the dwelling itself and any attached structures. Coverage can vary so make sure that you have the broadest form of protection available. You must insure to 80% of replacement value of your home.

Other Structures - Provides coverage for other structures located on the premises such as a detached garage or utility shed used for personal use (not business).

Contents - Covers the contents of your home and items in Other Structures (above) including furniture, clothing, etc. There are special limitations for some items such as jewelry, furs, silver, etc. - make sure you are aware of these limitation. Also, provides limited coverage away from your home.

Loss of Use - Additional coverage to help cover abnormal living expenses after you have suffered a loss.

Replacement Cost - Your dwelling and contents can be insured on an actual cash value (depreciated) or on a replacement cost basis (no depreciation). Replacement cost means you must insure to 80% of replacement cost of home and there will be no depreciation of the loss.

Liability - If a claim is made or a law suit is brought against an insured because of bodily injury or property damage caused by an occurance to which this coverage applies, your insurance company will pay up to the limit of liability for which the insured is legally liable. Recommended limit is $500,000.

Medical Payments - Insurance company will pay for the necessary medical expenses that are incurred when a person injures themselves on the insured’s premises. Coverage does not apply to you or regular residents of your household.

Deductible - Insurance company will pay for a covered loss when it exceeds the deductible.