Basic car insurance policies include several coverages. Bodily injury liability coverage pays for injuries caused to another party as a result of your negligence.
Property damage liability pays for damage you cause to another party’s vehicle or personal property. Bodily injury and property damage liability insurance are required in all states. Other car insurance coverages pay for damage to the insured automobile. Collision and comprehensive insurance reimburse you if your car collides with another vehicle or stationary object, or if the car is stolen or vandalized.
Home Insurance Features
The essential coverages in a homeowners insurance policy include protection for the structure of your home; coverage for the contents within your home; liability protection; and additional living expenses for the loss of use of your home. If your home is completely destroyed due to a covered loss, home insurance pays to rebuild the home up to the limits of the insurance policy. The personal contents within your home are covered by homeowners insurance as well. Personal contents include furniture, appliances, clothing, shoes and electronic equipment. If your home is destroyed by a fire, for example, the insurance pays up to policy limits for your personal belongings that were ruined in the fire.
Perils
For insurance purposes, a peril is a risk or cause of loss. In other words, a peril is what a car or home insurance policy protects against. Car insurance perils include negligence, collision, falling objects, flying objects, uninsured drivers, theft, vandalism, wind, hail and fire. Home insurance perils are very similar and include lightning, fire, freezing, vandalism, falling objects, burglary and liability to others.
Claims
If you are involved in an automobile accident or your home is damaged, you must file a claim to be compensated for the loss. Do this by informing your insurance agent or insurer’s customer service department of the situation. The insurance company gathers facts about the loss and conducts an investigation to verify the validity of the claim. For an auto accident, you will be required to bring the damaged vehicle to a claims center so a claims adjuster can assess the damage. If the vehicle is not operable, the adjuster will come to you. For homeowner’s insurance claims, an adjuster will come to your home to assess the loss. If the loss is due to fire, weather, vandalism or other peril, the adjuster will gather information regarding the loss and take steps to help you secure your home from further damage. At the end of the claims process, the insurance company pays for damages by cutting a check directly to you or to the establishment responsible for making the necessary repairs.