Financial Literacy Unit 8: Home and Motor Vehicle Insurance

Insurance

Protection against possible financial loss

Policy

Purchasing a contract

Premium

A fee for insurance

Risk

The chance of loss or injury

Peril

Anything that may possibly cause a loss

Hazard

Anything that increases the likelihood of loss through peril.

Negligence

The failure to take ordinary or reasonable care to prevent accidents from happening.

Deductible

The set amount that the policyholder must pay per loss on an insurance policy.

Liability

Legal responsibility for the financial cost of another person's losses or injuries.

homeowners Insurance

coverage that provides protecton for your residence and its associated financial risks, such as damage to personal property and injuries to others.

Personal Property Floater

Additional property insurance that covers the damage or loss of a specific item of high value.

Medical Payments Coverage

Pays the cost of minor accidental injuries to visitors on your property.

Actual Cash Value

The payment you receive is based on the replacement cost of an item minus depreciation.

Replacement Value

You will receive the full cost or repairing or replacing an item.

Bodily Injury Liability

Insurance that covers physical injuries caused by a vehicle accident for which you are responsible.

Uninsured Motorist's Protection

Insurance that covers you and your family members if you are involved in an accident with an uninsured or hit-and-run driver.

Property Damage Liability

Motor Vehicle insurance that applies when you damage the property of others.

Collision

Insurance that covers damage to your vehicle when it is involved in an accident.

No-Fault System

An arrangement whereby drivers who are involved in accidents collect money from their own insurance companies.

Assigned Risk Pool

Which is a group of people who cannot get motor vehicle insurance.

Assume

Take upon yourself

Vandalism

Deliberate destruction to private or public property.

Appraised

Evaluated

Endorsement

Addition of coverage to an insurance policy

Stiff

Harsh

Mandatory

Required