Chapter 15

property damage liability coverage

auto insurance coverage for damage caused by the policyholder's car to another person's property

bodily injury liability coverage

auto insurance coverage that pays for expenses related to injuries or deaths caused by the policyholder's car

liability

in insurance, responsibility for damages caused

collision coverage

insurance coverage for accident damage to the policyholder's car

structural damage coverage

insurance coverage for damage to the physical structure of a home resulting from buyer, severe weather, or other disasters listed in the policy

comprehensive coverage

insurance coverage for damage to the policyholder's car resulting from things other than the accident such as natural disaster, theft, or vandalism

medical payments coverage

insurance coverage for medical bills of the policyholder and his/her family members involved in an accident

personal property coverage

insurance coverage that pays if personal property is stolen, damaged, or destroyed by a fire...and other disasters.

replacement cost coverage

insurance coverage that pays to replace the insured items at today's prices

exclusions

items that an insurance policy does not cover

endorsement

modification or addition to an insurance policy; also called a rider

personal injury protection

optional insurance that pays expanded benefits for the policyholder's medical care lost wages and certain other services

FAIR

program to provide property insurance for those whose property is located in areas with high exposure to hazards they can not control

deductible

the amount paid out-of-pocket by the policyholder before the insurance company pays benefits on a claim

premium

the rate charged for an insurance policy