Policy Types and Coverages

Personal Insurance

• Homeonwers

• Auto

• Renters

• Personal Articles Floaters

• Personal Umbrella

Commercial insurance

• Commercial Property

• Commercial Auto

• Workers Compensation

• Professional Liability

• General Liability

• Cyber

Homeowners

• divided into property and liability coverages

Property Coverages

• Dwelling

• Other structures

• Personal Property

• Loss of use

Dwelling Coverage

• insurers against damages to the house

• if coverage is only provided for specific perils→ specific perils Coverage

Other Structure

• Protects against damages or losses to structures that are separate from the house

• does not apply for structure for business or rented out

Personal Property

• covers the personal property and contents of the house.

• Includes items outside the home and temporary in the policyholder’s possession

Loss of use

• provides compensation for living expenses if the property become uninhabitable

• if parts of the home are rented out, it also covers the rental income during the period it is under repair

Liability Coverages

• Personal liability

• Medical payment to others

Personal LIability

• provides third-party liability coverage if a third party is injured or if a third party's property is damaged on the insured's premises

Medical payment to others

• provides medical benefits to any third party injured on the insured's premises without the insured being sued

Auto Insurance

• Liability insurance

• Medical benefits

• Uninsured & underinsured motorist coverage

• Collision & other than collision

Liability Insurance

• provides coverages to a third party for and accident if the insured is liable

• incudes bodily injury and property damage coverage

Bodily Injury Coverage

• pays for the costs associated with the injuries of the third party,

• requiered in most jurisdictions

Property Damage Coverage

• pays for the costs associated with repairing or replacing the property of the third party.

Medical Benefit

• AKA medical payments in an at-fault jurisdiction

• aka personal injury protection in a no-fault jurisdiction

• example of fiirst-party coverage, as benefits are paid to insured party

at-fault jurisdiction

• required to prove that the other party is at fault to receive compensation under the other party's third-party liability section

Uninsured & Underinsured Motorist Coverage

Collision Coverage

• Applies if you collide with an object (another vehicle/object)

• the insurer decides whether to pay for the vehicle to be repaired or pay the current value of the vehicle

• usually have deductibles

Other than Collision

• Coverage for hail, theft, fire or vandalism

Comprehensive Coverage

• Coverage provided for all perils except for those specifically excluded

Renter Insurance

• personal property coverage

• liability coverage

• Additional Living Expenses (ALE) or Loss of Use Coverage

Personal Property Coverage

• covers personal property in case of damage/loss due to fire, theft, vandalism, or certain natural disasters

• excludes Floods, earthquakes, and certain high-value items

Liability Coverage

• covers legal expenses and damages if you're found legally responsible for injuries to other people or damage to their property.

Additional Living Expenses (ALE) or Loss of Use Coverage

• Temporary living expenses if your rental home becomes uninhabitable due to a covered peril