Personal Lines Insurance and Term Glossary
Personal Lines Insurance address liability that is assumed or property that is owned and or used by individuals in their private lives as citizens rather than in their professional or business lives. The primary policies which may be obtained are described below.
Homeowners Coverage provides a combination of property and liability insurance for owners of homes and tenants of residential buildings. The policy is designed to cover the building, personal property (with specific limitations on items such as money, jewelry, guns, art, silverware as well as other items; which may be increased by endorsement at the clients request). The policy will also include personal liability and medical payments at specific limits.
Tenants Policy is available to individuals who rent or lease homes and apartments. The policy is similar to the homeowner’s policy in that it covers property, liability and medical payments (there is no building coverage). Like the homeowners policy there are certain limitations and exclusions that apply.
Mobile Home Package is similar to the homeowner’s package described above. Coverage is offered on the structure, contents, appurtenant structures (with many of the same limitations and exclusions of the homeowners policy) and the personal liability of the owner.
Dwelling Fire Coverage is offered to most dwellings (typically rented) housing up to four families. This policy will cover the dwelling and other structures as specified in the policy. Liability coverage may be purchased as a supplement.
Personal Auto Policy is a combination of coverage parts. The primary component of the personal auto policy is liability which covers third party bodily injury and property damage. The limits picked by the policy holder should be high enough to cover any “worst case scenario”. The policy can also cover medical payments for a specified limit to cover bodily injury to the occupants of the insured automobile. Uninsured and under-insured coverage provides bodily injury protection to occupants of an insured vehicle involved in an accident with another motorist who either does not have insurance or enough insurance to cover the bodily injury inflicted. Collision insures the owner against loss from collision or upset of the vehicle. Comprehensive coverage insures against loss “other than collision” examples being theft, vandalism, glass breakage, fire, windstorm, hail or flood. Collision and comprehensive coverage are required within there is a lender involved in the financing of a vehicle. Once the vehicle is paid for the coverage is at the client’s discretion. Collision and comprehensive coverage unlike liability coverage require the insured to choose a deductible they are comfortable with. This is the amount you will pay prior to the insurance company’s paying the balance of any claim.
All Terrain Vehicle (ATVs) have become popular in Arizona and are used for recreation, hunting and fishing. These are multi faceted vehicles and are adapted for many different purposes off and on road. Most homeowners and auto policies exclude these vehicles but they can be written on specialty forms which can cover liability and risks of direct physical loss.
Boats are also very popular here in Arizona. A boat is considered anything with floats including sailboats, motorboats, jet ski’s and yachts. The vessel should be covered for direct physical loss to the hull as well as liability for collision damage to other vessels, occupants or swimmers.
Personal Umbrella Liability Insurance extends excess coverage over underlying automobile, homeowners, boat owners insurance. The coverage is very inexpensive to add to an existing insurance program with the proper underlying limits.
Flood coverage is excluded under all property policies. Flood coverage protects against loss of damage to building and their contents and may be written on a replacement cost or actual cash value basis. Believe it or not, yes there are areas in Arizona where flood coverage is not only a precautionary measure by required by some lenders if a property is a designated Flood Zone. Coverage for flood is available through standard insurance markets or the National Flood Insurance Program.