Auto & Homeowner's Insurance Glossary

Definitions offered in this section are meant to provide generic insurance information to consumers. They are not complete descriptions of all terms, exclusions and conditions applicable to the products and services offered by Electric Insurance. The terms and conditions of the policies issued are controlling in all cases. Product availability varies by state.

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W

	Collision Coverage	This covers the physical damage done to your car because of a collision with another vehicle or object, regardless of who is at fault. So whether you are involved in an eight car pile-up, or your car rolls into a parking lot guard rail on its own, collision covers the loss to your car. Collision does not cover bodily injury or property damage liability-it protects your vehicle only, and is usually subject to a deductible.
	Comprehensive Coverage	Sometimes called "Other than Collision," Comprehensive Coverage pays for damages resulting from fire, theft, vandalism, falling objects, hailstorms, floods, and various other perils. For example, hitting a deer can cause a lot of damage to your car-comprehensive takes care of it. Loss of auto glass or windshield is also covered under Comprehensive.
	Comprehensive Loss	Any damage done to a vehicle that is caused by something other than a collision. This includes damage to the vehicle by theft, vandalism, fire and flood. Glass loss is a comprehensive loss.
	Coverage A	Called "Dwelling", this is the part of your homeowner's insurance policy that covers the home itself-frame, flooring and fixed objects. The amount of Coverage A should represent the cost to replace the structure of your home in the event of total loss. Other coverages are usually based on a percentage of Coverage A.
	Coverage B	This part of your policy covers "Other Structures"-barns, sheds, garages. Coverage B is usually 10% of Coverage A (Dwelling Coverage) but can be increased.
	Coverage C	"Personal Property" covers your belongings automatically for 50% of Coverage A.
	Coverage D	"Loss of Use" takes into account expenses you'll have if your home is uninhabitable because of a covered loss. It pays for temporary lodging and living expenses. Coverage D is usually 20% of Coverage A (Dwelling Coverage). See also Additional Living Expense
	Coverage E	"Personal Liability" covers you for your legal responsibility for injury caused to others whether on or away from your own property. The standard limit is $100,000.
	Coverage F	"Medical Payments" pays medical costs if someone is injured on your property. A homeowner's policy automatically covers $1,000. You can increase this coverage in $1,000 increments, up to $5,000. In order to collect more than this, the injured party must file for compensation under Coverage E.