Citizens Homeowner Policy Coverage Gaps

In making a decision to use Citizens (either voluntarily or involuntarily), the customer needs to understand the differences between a Citizens policy and a standard Insurance Service Office (ISO) policy. This article summarizes some of the more significant differences, yet is not a complete “line by line” analysis of the policies in question.

Note: Our comparison uses the standard ISO HO-3 policy with an edition date of 04/91, the policy used by Citizens. Many carriers have filed modified ISO coverage forms, others filed “me too” type policies matching Citizens, and still others have their own unique forms; so, you must be diligent in your comparisons with each client who requests to move to Citizens. Remember, too, some carriers use the ISO “HO-2000” program forms now; ISO has even rolled out a 2011 revision to the homeowners program that is likely not being used yet by many carriers. Additionally, the coverage provided by some standard companies provides even more “bells and whistles” than the basic ISO policy. Comparing a Citizens policy to one from companies who provide “upscale” coverage would reveal even more dramatic differences.

Additional exclusions and coverage reductions are planned with Citizens. Those future changes are also addressed here.

Current Gaps 

Assessments 

No discussion about a Citizens policy is complete without a reminder (and warning) of the huge potential assessment faced by Citizens’ policyholders in the event that Citizens does not have adequate funds to pay for losses, as much as 45 percent of the premium of the policy. Policyholders should carefully review the assessment potential as outlined by the Citizens’ article available by clicking here. As one agent said, “I tell my customer that the cheapest choice today may be the most expensive choice after the loss.”

Coverage D: Loss of Use 

Citizens: 

Coverage D is ten percent of Coverage A and is limited to 24 months.

ISO: 

Coverage D is twenty percent of Coverage A and does not have a limit of 24 months.

Coverages B & C and Catastrophic Ground Cover Collapse 

Citizens: 

“Catastrophic” coverage applies only to the “principle building.” Damage to other structures is not covered. Personal property in an other structure is not covered for this peril either.

ISO: 

No such limitation.

Coverage C: Food in Refrigerators and Freezers 

Citizens: 

Limited to $500. No coverage for food in refrigerators and freezers off premises.

ISO: 

No such limitations.

Coverage C: Theft Peril 

Citizens: Theft on premises is covered. Theft coverage applies off premises only if the property was stolen from a public warehouse, bank, or safe depository company.

ISO: 

No such limitation.

Coverage A: Constant or Repeated Seepage or Leakage 

Citizens: 

Excluded is damage caused by constant or repeated seepage or leakage of water or steam, or the presence or condensation of humidity, moisture or vapor; which occurs over a period of time, whether hidden or not and results in damage such as wet or dry rot, “fungi,” deterioration, rust, decay or other corrosion.

ISO:  

No such exclusion. This exclusion was removed from the ISO policy in 1991. Losses such as a slow leak from a water line or HVAC unit are typical claims under this peril.

Fungus 

Citizens: 

Limitation of $10,000 for damage caused by fungus, wet or dry rot, yeast, or bacteria.

ISO: 

No such limitation, although many carriers impose a limit.

Section I: Vacancy Limitations 

Citizens: 

If the dwelling has been vacant for more than 30 consecutive days prior to a loss, there is no coverage for damage caused by vandalism, sprinkler leakage, glass breakage, water damage, theft, or attempted theft. Payment for damage caused by any other peril is reduced by 15 percent.

ISO: 

The limitation applies only to damage caused by vandalism. The more restrictive Citizens language closely tracks the wording found in ISO’s commercial property program.

Animal Liability 

Citizens: 

There is no coverage under Coverage E, Personal Liability for bodily injury caused by an animal owned by or in the care of the insured, whether on or off premises.

Coverage F, Medical Payments to Others provides coverage for such claims only if the occurrence takes place off of an “insured location.”

ISO: 

No such exclusion, although many carriers have similar exclusions.

Liability and Medical Payments Limits 

Citizens: 

Maximum Coverage E limit available is $300,000. Maximum Coverage F limit available is $2,000. (See discussion below about further reductions to $100,000 maximum below.)

ISO: 

Limits of $500,000 and $5,000 are available. Some carriers offer even higher limits.

Section II: Lead Paint 

Citizens: 

There is no coverage for bodily injury or property damage resulting from the ingestion or inhalation of paint that has lead or lead compounds in it.

ISO: 

No such exclusion.

Section II: Radon 

Citizens: 

There is no coverage for bodily injury or property damage resulting from radon or any substance that emits radon.

ISO: 

No such exclusion.

Endorsements and Coverages Not Available (Current Gaps) 

While not all inclusive, the list below details some of the common coverages and endorsements not available under a Citizens policy.

• Personal property limited to 50 percent of Coverage A with no option to increase above that limit.
• “Special” property coverage (HO-15 or HO-5) not available.
• Water/sewer back coverage not available.
• Increased loss assessment above $3,000 not available.
• Scheduled property (floaters) coverage not available.
• Increased special limits of personal property (jewelry, furs, etc.) not available.
•  
• Watercraft liability endorsement not available.
• Inability to schedule other structures off premises.
• Liability coverage cannot be extended to other locations (rental property or vacation home)
• Business pursuits liability not available.
• Personal injury liability not available.

Changes Effective 1/1/12  

New and Renewal Policies 

Coverage A: Property Not Covered 

Citizens: 

The following property is not covered and there is no buy-back option:

• Any structure enclosed by screens on more than one side, constructed to be open to the weather, and not constructed of and covered by the same or substantially the same materials as that of the primary dwelling.
• Carports, open sided porches that have a roof covering, and patios that have a roof covering, not constructed of and covered by the same or substantially the same materials as that of the primary dwelling.
• Any structure or attachment where that structure’s roof coverings or exterior wall coverings are of thatch, lattice, slats, or similar material.
• Slat houses, chickees, tiki huts, gazebos, cabanas, canopies, pergolas, or similar structures, constructed to be open to the weather.
• Awnings, aluminum carports, and aluminum framed screened enclosures.

ISO: 

No such exclusions.

Coverage B: Property Not Covered 

Citizens: 

The following property is not covered and there is no buy-back option:

• Any structure enclosed by screens on more than one side, constructed to be open to the weather, and not constructed of and covered by the same or substantially the same materials as that of the primary dwelling.
• Carports, open sided porches that have a roof covering, and patios that have a roof covering, not constructed of and covered by the same or substantially the same materials as that of the primary dwelling.
• Any structure or attachment where that structure’s roof coverings or exterior wall coverings are of thatch, lattice, slats, or similar material.
• Slat houses, chickees, tiki huts, gazebos, cabanas, canopies, pergolas, or similar structures, constructed to be open to the weather.
• Awnings, aluminum carports, and aluminum framed screened enclosures.

ISO: 

No such exclusions.

Cosmetic or Aesthetic Damage to Floors 

Citizens: 

The total limit of liability for Coverages A, B, and D combined is $10,000 per policy period for cosmetic or aesthetic damages to floors.

ISO: 

No such limitation.

Future Coverage Reductions 

The Office of Insurance Regulation has approved a rather lengthy list of coverage reductions under all Citizens’ policies, including personal lines and commercial lines. Those reductions will be phased in starting in March 2012 and will not all appear all at once. Those pertaining to the homeowners policy are below.

Effective 5/1/12 for new business and 6/1/12 for renewal policies: 

• Reduce default Coverage B from ten percent to two percent. (Option to buy back up to ten percent.)
• Eliminate option to schedule individual Coverage B items.
• Eliminate option to buy back coverage for other structures rented to others.
• Eliminate option to buy back coverage for other structures used for business purposes.
• Reduce default Coverage C from 50 percent of Coverage A to 25 percent. (Option to buy back to 50 percent.)
• Eliminate increased loss assessment coverage. Provide only $1,000 in the HO-3 and HO-4, and the statutorily mandated $2,000 in the HO-6.
• Implement mandatory ten percent sinkhole deductible.
• Reduce personal liability coverage from $300,000 to $100,000. (Medical Payments to Others Coverage remains at 2,000).
• Expand sinkhole inspection program to an additional 12 counties.
• Eliminate increased mold limit options of $25,000 and $50,000.

Date to be determined: 

• Eliminate liability coverage for incidental exposures related to motor vehicle, watercraft, animal, home business, and premises liability. The result will be a total exclusion of coverage for all such claims. Newly excluded examples in this category would be the use of a non-owned golf cart, use of a non-owned ATV, use of a non-owned outboard watercraft, use of an owned outboard boat under 25 horsepower, use of a sailboat under 26 feet, the occasional rental of the dwelling, and the rental of the dwelling in part, such as renting out a bedroom to a college student.
• Implement a sublimit for items such as jewelry, furs, silver, and firearms for all perils. Currently the limitations apply only to the peril of theft.
• Eliminate coverage for dropped objects.
• Revise contract to reduce coverage for water losses.
• Expand vacancy penalty.
• Implement loss history surcharge program.
• Restrict ordinance & law coverage to apply only to Coverage A.

This is a summary only. Please refer to the policy for specific coverage interpretations.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Sandbags will not protect your home and they will not replace or repair the damage. You need Flood Insurance in addition to homeowners insurance

Most homeowners policies don’t cover flood damage.  This type of loss is different from others and it needs special underwriting and rating.  Because flood damage is usually more severe and affects more than one home at a time, it’s difficult for the private market to bear that burden.

For that reason, flood coverage is provided by the federal government under a program called NFIP. However, your local independent insurance agent can write the coverage for you, and administration of the policy, including claims paperwork, is usually done by a private carrier. The NFIP collects most of the premium, though, and it’s their checkbook that pays the claims.

If you even suspect you are in a flood plain, ask an independent agent to check it out for you. Foundation washout is a common problem with flooding, so even if you are a condo dweller on the 10th floor you might need the overage.  With hurricane Hugo in South Carolina, twenty story high condos came down due to the washout of the foundation, and standard policies didn’t cover the losses.

Technically, all homes are at risk of flood, but obviously the risk is much greater in states like Florida, for example. Some problems that flood insurance covers, like sewer back-up, have nothing to do with the weather.

Don’t take the risk of being without this valuable coverage. Ask your agent today about flood insurance.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Boat insurance is an important type of coverage, as boats can be quite expensive. You wouldn’t drive a car without insurance, and it’s a bad idea to drive a boat without appropriate coverage. 

Many different types of boat insurance are available for different types of crafts. For instance, major insurance companies will often offer sailboat insurance, jet ski insurance, and even rowboat insurance. The major differences in these plans are often their cost; riskier craft come with a higher cost. Speed boats and jet skis often carry the highest boat insurance premiums. The number of individuals that can ride on your boat will also affect your premiums, and many other factors will also be at play, including the lake that the boat is stored on and your age. An insurance agent should be able to tell you about the common factors that go into boat insurance premiums, and this can be very useful information if you’re trying to get lower premiums.

Coverages can provide for repairs to a boat, personal injury coverage, and special add ons for water towing or “roadside” assistance. Deciding on an appropriate amount of coverage can be difficult. It’s generally a good idea to opt for emergency add ons and to buy personal injury protection (PIP) as well as liability coverages. Check your state’s laws to find out whether certain amounts of boat insurance are required, and again, check with your insurance agent. It may be a good idea to buy total loss coverage, which can cover the cost of your boat if it sinks or if it’s involved in a major accident. An agent should be able to explain this coverage and give you solid feedback on how much coverage that you need to buy.

Always shop around when buying boat insurance, and have as much information about your boat prepared as possible. This will make it easy to compare rates and find a great low cost policy with sufficient coverage. You’ll feel a lot safer when you’re on the water with the right boat insurance coverage–don’t wait to buy.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

It takes no time for a fire to sweep through a dwelling and destroy all of family’s possessions. While there are items that can be replaced such as appliances, clothing and furniture, those objects with sentimental value such as pictures and handmade objects can never be replaced. Loss of valuable personal possessions can be avoided by taking steps to prevent fires in in homes and businesses.

Make sure your dwelling or business has a working smoke detector. Smoke detectors are warning devices that can save lives when they operate properly. A smoke detector will emit a loud noise whenever smoke activates a sensor in the detector. This is important because most people who die in fires are overcome by smoke. There are also smoke detectors designed for the hearing impaired. If your smoke detector is battery operated, check it every month by pressing the test button and change batteries at least once per year. A smoke detector that is wired into a home’s electrical system should have a light that blinks periodically that indicates that the detector is active. If you have questions about the working condition of your smoke detector, contact your local fire department for help.

Keep a working fire extinguisher in the kitchen, shop or where ever there is might be an opportunity for a fire to occur. An ABC type fire extinguisher is recommended because it works on all types of fires. You should know how to operate the fire extinguisher properly before you have to use it. Remember that fire extinguishers are designed for use on small fires. If the fire is too large for the to be put out by your fire extinguisher, call 911 immediately. Leave the building or dwelling immediately and move to a place of safety.

When using a fireplace, place a screen in front of the opening to prevent sparks from flying. Paper, wood and combustible materials should not be stored near fireplaces and wood burning stoves. Chimneys should be inspected and cleaned before being used. Furnaces and heating systems should also be inspected and repaired before cold weather arrives. Keep combustibles away from space heaters and monitor these heaters when in use. Always monitor pots and pans when cooking.

Keep combustible materials and substances such as gasoline stored in a safe place away from appliances such as hot water heaters. Never overload extension cords and never use extension cords with space heaters. Never use outdoor grills inside the home. Keep matches and lighters out of the reach of children.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Rates for auto insurance coverage for individuals is determined by the number of risks associated with covering a driver. An individual that appears to be more of a risk to insure is more likely to pay a higher premium than the person with a clean driving record and a stable lifestyle.

How can I lower my auto insurance coverage rate?

An individual can lower their auto insurance premiums by altering their driving habits. A driver can work on improving or maintaining a better driving record. One can also reduce his or her driving routine by joining a carpool or taking public transportation.

Do I actually need auto insurance coverage?

Yes. Most car dealers require that a person provide proof of coverage at the time of a car purchase. Most states have regulations in place that require a certain amount of insurance coverage. In some states, a person can avoid having auto insurance coverage if they can prove that they have substantial resources to cover the costs of an accident.

Am I eligible for auto insurance coverage discounts?

A person that takes a defensive driver course may be able to secure a discount from their auto insurance coverage provider. A person in school may also be eligible for a good student discount if their GPA remains at a certain level. Some individuals can also receive partial refunds for going a specified amount of time without an incident. Others may belong to a professional organization with a relationship with a certain provider that offers discounts to members.

Does age play a role in how much I pay for auto insurance coverage?

Yes. Males under the age of 25 pay a larger amount in insurance because they are viewed as risky. Men in their late twenties are more likely to be married and have a more stable life. For this reason, their insurance premiums can be reduced. Individuals in their fifties are also able to receive lower premiums. This category of individuals is more likely to drive less and have better driving records. Teen drivers are typically inexperienced, so there are more risks associated with insuring younger drivers.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Contact your local Fire Department for assistance with this project. They have community liaisons to work with you on your plan.

• Post emergency telephone numbers by phones (fire, police, ambulance, etc.).
• Teach children at the earliest possible age how and when to call 911 or your local Emergency Medical Services number for emergency help.
• Determine the best escape routes from your home. Find two ways out of each room and teach all family members.
• Find the safe spots in your home for each type of disaster. Draw a chart for each child’s room to help them remember.
• Teach each family member how and when to turn off the water, gas, and electricity at the main switches.
• Call your insurance agent twice a year to update your insurance coverage.
• Teach each family member how to use the fire extinguisher. Keep at least two on each level of your house. Mount the fire extinguishers on the wall, and be sure everyone knows where they are. Your local fire department will help you practice using them.
• Install smoke detectors on each level of your home, especially near bedrooms.
• Conduct a home hazard hunt.
• Stock emergency supplies and assemble a disaster supplies kit.
• Take a Red Cross first aid and CPR class.
• Practice fire drills. Be sure you have a prearranged meeting spot in case the family is separated.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

In these times, saving a little extra here and there can mean a lot to all of us so here are some tips when purchasing auto insurance that you could discuss with your independent agent.

Since auto insurance rates differ from insurance company to insurance company, it pays to shop around for the best coverage that suites your needs, and honestly cheaper does not always mean better! Independent insurance agents represent several insurance companies, so they have the ability to compare multiple insurance companies and policies to find the one that’s right for you and your family.
In addition to having your independent agent shop around, there are other steps you can discuss with them to possibly lower your insurance premiums.

Make sure your policy info up to date? Moving, getting married, kids with good grades, or if it has been at least three years since your last driving violation may offer you a reduction in your auto premium. Have your independent insurance agent check with the companies. You may be eligible for lower premium.

Are you carrying the appropriate coverage for your car? Some times the age of your car and the cost associated with extra coverage may not be worth the expense. If you own an older or inexpensive car you may want to consider dropping comprehensive and collision coverage. That can often save hundreds of dollars each year. Discuss this with your independent insurance agent.

Know the costs ahead of time. If you are in the market for a new car, you may want to bounce a few cars off your independent insurance agent for some estimates in premiums. Generally economy cars that are not considered “Sports Cars” are less expensive to insure.

Are you carrying too much coverage? Some times there are add-ons associated with your auto insurance that are not necessary like possibly rental car reimbursement. This may be a part of your warrantee with the dealer, and you may be duplicating coverage. There could be other little items you may want to look at too that will reduce costs. Discuss these with your independent insurance agent

Raise your deductible. According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your Collision and Comprehensive costs by 15 to 20 percent. Your independent insurance agent can show you how raising your deductible can lower your premium.

Discounts? Ask your independent agent what are all of the possible discounts associated with buying a policy from a particular carrier they represent. Each carrier has some different features so you will want to discuss the best solution for you and your family.

Do you have more than one policy with the same company? Some times this is good and other times it may not be. Your independent agent is uniquely qualified to quote your policies with the appropriate carriers that may offer specialized coverages and services. “Bundling” or “Unbundling” your policies might save you a bundle!

Consumers spend billions on their homes. Home improvement projects tallied to a whopping $280 billion in 2005, according to research from the Joint Center for Housing Studies at Harvard University. The center forecasts that home renovations will grow at a steady 3.7% rate annually through 2015, after inflation.

What shouldn’t be lost in the excitement of adding a bedroom, finishing a basement or updating the kitchen is your financial security. The risk management and insurance tools available through your Trusted Choice® insurance agent are indispensable when you’re renovating.

Be aware that home renovations add to the risks you’re facing as a homeowner, including injuries to family, contractors and delivery workers; fire, theft, and vandalism; and water damage. What’s more, know that you must protect yourself from financial liability for anything that goes wrong.

It’s imperative that your homeowners and umbrella insurance coverages are set up correctly before, during and after your renovation project. The time and paperwork required may seem a distraction when you’re eager to upgrade an older home, install an energy efficiency retrofit, or renovate a rental property. But it’s every bit as important as buying the building materials or choosing the contractor.

Before renovations start: Require contractors to provide proof of insurance for workers compensation and liability coverages. Your insurance agent can guide you on how to do this and what to ask the contractor to provide.

Workers compensation insurance pays for medical and rehabilitation expenses (and covers lost wages) if workers are hurt on the job. Workers who are injured in your home can sue you or claim damages from you if the contractor they work for does not have adequate coverage. (By default your homeowners and umbrella liability policies can become their insurance coverage, an unwelcome development for those who pay the premiums and do the claims paperwork.)

If you need to move out during construction, notify your agent so you can be certain that you have proper coverage for a temporary residence such as a hotel or rented home.

Recognize that building code upgrades and market changes may change the standard to which your renovated home is held. For example, home alarm systems have become popular, so you may wish to add one during your renovations. It may add to the renovation cost, but can make your home safer and earn a homeowners insurance discount. Such decisions are generally best considered before the project starts.

During construction: With the added risks—such as construction accidents, fires due to power tools and open utility lines, and strangers in the house who may be tempted to steal your property or your identity—you may want to consider temporarily increasing homeowners and/or umbrella policy limits and/or changing the deductible.

After the project is finished: Home improvements can increase the market value and replacement cost of your home. Your agent can guide you to proper insurance coverage levels for homeowners and umbrella policies. At that time, you may want to also ask about guaranteed replacement cost coverage for your homeowners policy.

The renovated or expanded space in your home may fill up with new furniture, exercise equipment, electronics, and appliances. Track those purchases with receipts and a written or electronic home inventory. Additionally, check the coverage in your homeowners policy for personal property (home possessions).

Talk to your Trusted Choice® agent to be sure your home is properly insured at all stages of a home renovation project.

We are a Trusted Choice® agency and represent multiple insurance companies, so we offer you a variety of personal and business coverage choices that can  be customized to meet your specialized needs.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

When you head to the waterways in search of fun on a jet ski, you may discover you have an insurance problem. You may find that you have limited coverage for a jet ski under your homeowner’s policy. Face it, the last thing on your mind when you are about to hop on that watercraft is, “is my homeowners policy going to protect me?” Since a jet ski is an inboard watercraft, and since so many folks will purchase, rent, or borrow them, you need to see what coverage is provided by your homeowner’s policy. Unfortunately your answer is somewhere between “none” and “not much.”

Let’s see what covered

Predominately, your homeowner’s policy provides $1,500 for watercraft. The typical Homeowner’s (HO-3) policy provides coverage for 16 named perils. Specific limitations are; no theft away from the residence premises and no coverage for windstorm damage unless the watercraft is inside a fully enclosed structure. With the typical jet ski costing in excess of $5,000 the coverage gap is obvious.

Section II (liability or medical payments) of the policy provides no coverage at all for an owned jet ski. This means that as soon as the dealer gives the keys for the jet ski to the customer, there is no coverage for liability or medical payments under the homeowner’s policy. Watercraft liability for an owned inboard watercraft is excluded. Always consult with your insurance agent before you decide to purchase a jet ski.

What about a rented jet ski?Your homeowner’s policy responds for a rented jet ski as if it were owned by you and as outlined above. The homeowner’s policy covers: “…personal property owned or used by an insured while it is anywhere in the world.”

Section II of your homeowner’s policy is most likely not going to respond for claims arising when you rent a jet ski. For inboard or inboard/outdrive watercraft (such as the jet ski) Section II coverage is provided only for such watercraft of 50 horsepower and under. If you research jet ski manufacturers, it will reveal that the smallest jet ski they manufacture is about 70 horsepower. Considering the number of folks who rent a jet ski this is perhaps one of the most significant gaps found in your homeowner’s policy. Once again: “If you rent a jet ski you do not have any liability or medical payments coverage under your homeowner’s policy.” There is no endorsement to remedy this gap in coverage since the watercraft liability endorsement (HO 24 75) provides coverage only for a watercraft shown on the schedule.

 Let’s see what there is for your borrowed Jet Ski…

Your homeowner’s policy responds for a borrowed jet ski again as if it were owned by you. The homeowner policy covers “…personal property owned or used by an insured while it is anywhere in the world.”

Section II of your homeowner’s policy does provide liability and medical payments coverage for you as well as family members. In fact, the insured and family members have Section II coverage for any borrowed watercraft, even a U.S. Navy submarine!

With jet ski type watercraft making up about 10% of the watercraft population but accounting for nearly 55% of watercraft injuries you need to be concerned about this coverage gap. Your homeowner’s policy provides, at best, limited coverage for a jet ski. We suggest you consult your agent because there are obvious coverage gaps in your homeowner’s policy, and they may be able to provide you with better coverage specifically designed for your jet ski.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Many people don’t know that Business Auto Coverage (BAC) provides protection against a broad range of hazards arising out of “autos”. This is different than “mobile equipment” Which is generally defined as automotive equipment designed for use on public roads.
You will find in the BAC two types of coverage, Liability and Physical Damage. You can also get other coverages which are basic to business auto exposures, and added by an endorsement to the policy. Each state may have different kinds of coverage, but some may be Personal Injury Protection, Medical Payments or Uninsured Motorists.
LIABILITY COVERAGE.
Liability coverage protects those who are “insured” from legal liability for bodily injury, property damage to others, or caused by auto accidents. Generally the insurer also agrees to defend insured against all liability claims for which coverage is afforded.
PHYSICAL DAMAGE COVERAGES.
Coverage for accidental damage to those designated as “covered autos,” in your policy without regard to fault, is available through Physical Damage coverage. Physical Damage is generally broken up into subsections
The first section, collision or overturn and the second section, causes other than collision or overturn, which may be either “all-risk”, (Comprehensive) or for named perils (Specified Causes of Loss).