Insurance 101

ACTUAL CASH VALUE - An amount equivalent to the fair market value of the stolen or damaged property immediately preceding the loss. For real property, this amount can be based on a determination of the fair market value of the property before and after the loss.

AGREED VALUE - "Agreed Value" means the value of the covered property as shown on the declaration - without deduction for any depreciation.

BODILY INJURY - Any physical injury to a person. The purpose of liability insurance is to cover bodily injuries resulting from the negligent or intentional acts of an insured.

COLLISION - Reimburses you for damage to YOUR vehicle sustained in a collison with another vehicle or with any other object, movable or fixed, (for example, you accidentally backed into another object while pulling out from a parking stall and causing damage to the bumper and fender of your covered vehicle.

COMPREHENSIVE - Provides coverage for any direct and accidental loss of, or damage to YOUR covered vehicle and its normal equipment, to include but not limited to fire, theft or malicious mishief.

DEDUCTIBLE - The amount of the loss which the inusred is responsible to pay before benefits from the insurance company are payable. You may choose a higher deductible to lower your premium.

LIABILITY INSURANCE - Coverage for all sums that the insured becomes legally obligated to pay because of bodily injury or property damage, and sometimes other wrongs, to which an insurance policy applies.

PROPERTY DAMAGE - Damage to another person's property. The purpose of liability insurance is to cover property damages resulting from the negligent or intentional acts of an insured.

TOTAL LOSS REPLACEMENT - Their are some insurance companies who offer "Total Loss Replacement/Purchase Price" coverage. This coverage is available on newly purchased watercraft and recreational vehicles. In the event of a total loss, this coverage replaces the insured boat with a new boat that is to the extent possible, the same make and model, and which contains comparable equipment.

UNINSURED MOTORIST BODILY INJURY - Will pay you and your passengers for BODILY INJURY cause by a negligent uninsured motorist, a hit-and-run driver, or by a driver whose insurer is insolvent.