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Here are the terms we
use for types of coverage. Other than coverage information, there are also a
variety of terms that might be unfamiliar to you. We hope the below glossary
helps make the world of insurance a little easier to comprehend.
Additional
Living Expenses
If you can’t live in
your home because of a covered loss, Safeco will pay the necessary increase in
living expenses—typically for up to 24 months—while damage is assessed and your
home is repaired or rebuilt.
Broad Form
Liability Coverage
Helps protect you
from expenses related to injuries or property damage you or your watercraft
cause in an accident. Safeco’s policy also covers certain accidental fuel spill
liabilities and wreckage removal.
C.L.U.E.
C.L.U.E.
(Comprehensive Loss Underwriting Exchange) is a claims history database created
by ChoicePoint that enables insurance companies to access consumer claims
information when they are underwriting or rating an insurance policy. It
typically contains up to five years of personal auto or personal property
claims history.
You can order a
C.L.U.E. report on your property from:
ChoicePoint Consumer
Disclosure P.O. Box 105108 Atlanta, Georgia 30348-5108 Or call toll free 1
(866) 527-2600
Or you can request a
copy from the seller of a home you are purchasing.
Collision
Coverage
Pays to repair your
auto, classic auto, motorcycle, RV damages caused by an accident. Your agent
can help you determine the limits you need based on the agreed value of your
vehicle.
Comprehensive
Coverage
Pays to repair or
replace your vehicle if it is stolen, vandalized or damaged in some way other
than in a collision. Includes loss from fire, cracked windshields, floods,
falling objects, and wind.
Custom Parts
& Equipment Coverage
Many motorcycle
owners like to customize their rides, and Safeco’s coverage pays for customized
parts and equipment, often at no extra charge. Ask your agent for details.
Deductible
When you get
insurance, you agree to pay up to a certain amount out-of-pocket in case of a
loss. This amount is called your “deductible.” The deductible you choose often
affects how much you pay for your premium. For example, a higher deductible
usually means a lower premium. In the case of a covered loss, you’ll only be
required to pay your deductible, and the insurance company usually covers the
excess, up to the applicable limit for that loss under your policy.
Emergency
& Roadside Assistance
For auto, boat and
personal watercraft, emergency assistance pays for the cost of towing or
emergency service. For RVs, it also covers housing and transportation costs if
your RV becomes uninhabitable and covers the loss of personal property in your
RV. For motorcycles, Safeco provides you with a roadside assistance benefit of
up to $300 per breakdown.
Excess
Liability
Sometimes used
interchangeably with “umbrella,” “excess liability” refers to extended
liability coverage. This coverage is meant to supplement your insurance
coverage if the damages exceed your liability coverage. Be sure to talk to your
agent about what your excess liability covers.
Fidelity
Coverage
Companies and
businesses often purchase this coverage to protect them against loss from
employee dishonesty (such as theft of money, equipment, or other assets).
Identity
Theft
Identity theft occurs
when someone steals your personal information and uses it to open accounts or
incur charges without your permission. Thieves can access your personal
information in a variety of ways, such as stealing your personal mail, your
wallet, or hacking your computer files. The thief then uses your identity to
rack up debt in your name or perhaps to issue fake IDs. For more information on
identity theft and tips on prevention visit the FTC’s Identity Theft Site.
Indemnity
Providing indemnity
means to financially restore someone after a loss, through payment, repair or
replacement.
Insurance
Score
An Credit Based
Insurance Score (CBIS) is derived from information on your credit report. It is
a number that measures likelihood of having an insurance claim—not a measure of
credit worthiness. Insurers use CBIS along with a number of other factors,
including driving records, claims history, and the type of home or vehicle
owned, to evaluate new and renewal auto and homeowner insurance policies.
Medical
Coverage (Home)
Covers medical
expenses for guests if they are injured on your property, and in certain cases
covers people who are injured off of your property. It does not cover
healthcare costs for you or other members of your household.
Medical
Coverage (Auto, Boat & Personal Watercraft, Motorcycle, RV)
Provides for your
passenger and your medical expenses that are the result of an accident.
Liability
& Personal Liability Coverage
For homeowners, this
coverage applies if someone is injured or property is damaged and you are to
blame. The coverage applies anywhere in the world. For motorcycles, Safeco
offers Guest Passenger liability in most states. When choosing liability
coverage for your home, auto, boat, personal watercraft, or RV, consider things
like how much money you make and what you own. Your liability coverage should
be high enough to protect your belongings if you are sued.
Personal
Property Coverage
Your home is filled
with furniture, clothes, sports equipment, and other items that mean a lot to
you. This coverage helps repair or replace these items if they are lost, stolen
or destroyed as a result of an insured event.
Personal
Watercraft (PWC)
A personal watercraft
(PWC) is a recreational watercraft that the rider sits or stands on, rather
than inside of, as in a boat. Models have an inboard engine driving a pump jet
that has a screw-shaped impeller to create thrust for propulsion and steering.
Because they are relatively cheap and provide a lot of freedom to owners, they
are widely used for recreation.
Physical
Damage Coverage for Watercraft
Pays to repair the
damage done to your watercraft due to an accident. It also generally pays to
repair or replace your watercraft for insured situations such as theft, fire,
vandalism or other non-collision damages that occur in or out of the water
Premium
Simply put, a premium
is the payment you make in exchange for one term of policy coverage.
Property or
Dwelling Coverage
Typically pays to
repair or rebuild your home if it’s damaged or destroyed by an insured event.
Scheduled
Personal Property Coverage
If you have special
possessions such as jewelry, art, antiques or collectibles, you may want to
talk to your agent about this additional coverage.
Umbrella
Insurance
Umbrella insurance is
the coverage that may kick in when your losses under other insurance policies,
such as homeowner’s and auto coverage, have exceeded policy limits.
Underwriter/underwriting
Underwriting is the
process of assessing risks when deciding whether to issue a policy of
insurance.
Uninsured/Underinsured
Motorist Coverage
Pays for damages
associated with bodily injury or death from an accident caused by an uninsured,
underinsured or hit-and-run driver, as defined by the law in the jurisdiction
where the accident occurred, who is at fault. It also covers you if you are hit
as a pedestrian.
Unattached
Equipment Coverage
Pays to repair or
replace equipment that isn’t permanently attached to your boat or personal
watercraft. This includes items like life jackets and water-skis.