Insurance Terms and Information
This page has been designed to assist you in getting a better understanding of Insurance Coverage and Terms. Although at this time we do not have information on all coverage's. We have included automobile, homeowner and umbrella for you.
Automobile Insurance
Automobile Insurance - An auto insurance policy provides financial protection if you injure someone or his/her property in an accident. It is very important to understand your coverage's and policy terms before you need to use your insurance.
Bodily Injury Liability - Provides coverage for injuries that you cause to someone else. It is very important to have enough liability insurance, because if you are involved in a serious accident you want to have enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. There are two kinds of limits you can purchase. They are as follows: Combined Single Limit - Pays up to a single maximum amount for bodily injury and property damage.
Split Limit - Split limit restrict the maximum amount that a policy will pay for a specific loss such as property damage and bodily injury. The amount of coverage may be the same as split limits, but there is a restriction on the amount that can be paid for any type of loss.
Property Damage Liability - Provides coverage for damages that you cause to someone else's property. This covers such as other vehicles, buildings, fences, mailboxes, lamp post etc.
Personal Injury Protection (PIP) - This coverage is required by New York State in the amount of $50,000. You have the option to increase this coverage to a total amount of $150,000. This coverage provides protection for medical expenses, loss of income and other expenses regardless of fault.
Optional Basic Economic Loss (OBEL) - Increases the PIP coverage by $25,000 to be applied specifically to payments for loss of earning from work, for rehabilitation, or to all elements of basic economic loss.
Supplementary Uninsured/Underinsured Motorist Coverage (SUM) - This coverage is another very important factor for your policy. Provides reimbursement if you are involved in an accident with a motorist that is uninsured AND underinsured. Underinsured comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian or involved in a hit and run accident.
Medical Payments - Regardless of fault, provides coverage to pay medical and funeral expenses for you and persons riding with you.
Supplemental Spousal Liability Insurance - This coverage covers the liability of an insured because of the death or an injury to his or her spouse.
Comprehensive Coverage - This coverage pays for damage to your vehicle from all causes other than collision, such as theft, fire, flood, windstorm, vandalism, hitting or being hit by an animal, or by falling or flying objects. This coverage is also referred to as OTC - other than collision coverage.
Collision Coverage - This coverage pays for damage to your vehicle caused by a collision with another vehicle or any other object or your vehicle overturning.
Deductible - This is the amount that you will pay toward a loss under collision and comprehensive coverage. Usually the higher the deductible the lower your premium.
How Much Coverage Do I Need?
Almost every state requires you to buy a minimum amount of liability insurance. New York State requires split limits of $25,000 / $50,000 and Property Damage Coverage of $10,000. Chances are that you will need more liability that the state requires because accidents cost more than the minimum limits. If you are found legally responsible and have accident related payments that are more than your insurance covers, you will have to pay the differences out of your own pocket. This is why it is so important to have an agent working for you to determine the best coverage at the best price. Clarence Insurance Service will provide various options to best fit your needs and budget! Let us provide you the reassurance that you have adequate coverage.
How Can I Save Money on My Automobile Policy?
Homeowner Insurance
It is estimated that three out of four homes are underinsured by as much as 35 percent.
Could yours be one of them?
Homeowner Insurance - A homeowner policy provides financial protection and coverage for the structure of your home, your personal belongings, liability protection and additional living expenses.
Dwelling (Coverage A) - Provides coverage to protect your house and any structures attached up to the limit of your policy
Replacement Cost / Insuring to Value- Provides coverage for the full value of your home - meaning that you could replace your house with all of its current features if it were destroyed or a partial loss. It is very important to make sure your home is insured at a replacement cost value.
Other Structures (Coverage B) - Provides coverage for separate structures on your property like utility sheds. This amount is derived from a percentage of Coverage A
Personal Property (Coverage C) - Provides coverage for your personal property. Please be aware that companies have coverage limitations so it is important that if you have valuable items that they are either listed separately on the policy or you have a Personal Articles Policy in effect.
Loss Of Use (Coverage D) - Provides coverage for additional living expenses after a loss.
Personal Liability (Coverage E) - Provides coverage for personal injury or property damage claims that may be brought against you.
Medical Payments (Coverage F) - Provides coverage to others who are injured on your property or whom you injure accidentally.
How Much Coverage Do I Need?
It is imperative that your home is adequately insured. The amount your home is insured for will be determined by your insurance company using a detailed program that determines the replacement cost by information that is provided by you. If it important that you tell your agent about any updates, additions etc. made to your home. There are also numerous endorsements that can be added to your policy to enhance your coverage. There are many things to consider when insuring your home so it is important to understand what you have and if and how you need to insure it.
How Can I Save Money on My Homeowner Policy?
Umbrella / Excess Insurance
Umbrella / Personal Liability Insurance - Provides an extra layer of personal liability protection. It takes over when damages for which you are liable exceed the limits on your standard policies. It is an extension of your homeowner and automobile policy. This coverage is offered in one million dollar limits and is surprisingly affordable - as little as $120 a year for $1,000,000 coverage. An example of the coverage would be as follows: A service technician is working at your home and is injured seriously and can no longer practice his profession. Your homeowner policy has a liability limit of $300,000. You are sued for over $1,000,000. With an umbrella policy you would have enough to cover your liability as your homeowner policy would cover the first $300,000 and your umbrella policy would provide the rest of the damages. What if you do not have the umbrella coverage? You would still be responsible for the remaining amount!
Let Clarence Insurance Service Find the Right Coverage For You at The Right Price
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