Insurance Resources

Four Basic Parts of an Insurance Policy

Because an insurance policy is a legal contract, the agreements it contains must be spelled out carefully.

  1. Declarations Usually the first page of a policy, this section contains information about the insured, policy type, amount of insurance, policy period, and costs.
  2. Insuring Agreements The "substance" of the policy, stating the types of losses covered.
  3. Exclusions Describes the losses the policy does not cover.
  4. Conditions States the "ground rules" of the policy, describing the responsibilities of both the company and the insured.

Personal Auto Policy Definitions

Many states have specific laws governing certain coverages of our personal auto insurance, but the main definitions and coverages are similar. Please review our personal auto policy for any legal definitions as some policies may very.

You: Named insured and your spouse (if resident of same household).

We: The insurance company providing the insurance.

Bodily Injury: Bodily harm, sickness, or disease (including death) that results. Includes loss of income and loss of pleasure.

Business: Your trade, profession, or occupation.

Family Member: A person related to you by blood, marriage, adoption, and a resident of your household including a ward or foster child.

Insured: This definition varies by coverage part.   Please review each.

 

Part A Liability: You or a family member for any auto or trailer, any person using your covered auto, vicarious liability for your covered auto (your employee while on a company errand), vicarious liability for any auto used by you or a family member if that person or organization does not own that auto (your employer if you are in a borrowed car running a company errand).
 

Part B Medical Payments: you or any family member occupying or as a pedestrian struck by any motor vehicle designed for use on public roads or trailers and any person occupying your covered auto.
 

Part C Uninsured Motorist: you or a family member, any other person occupying your covered auto, and anyone else entitled to recover damages for those listed.

Occupying: In, upon, getting in, on, out, or off of.

Property Damage: Physical injury to, destruction of, or loss of use of property.

Uninsured Motor Vehicle: A vehicle with no insurance, insurance with a limit less than financial responsibility minimum, a hit and run, and also if the other company denies coverage or becomes insolvent.

Your Covered Auto: Includes the autos listed in the declarations page of your policy, a car, pick-up, or van acquired during the policy term: If a replacement vehicle, for the same coverage as vehicle it replaced and must notify within 30 days for physical damage. If an additional vehicle, for broadest coverage of any vehicle on the policy but must notify within 30 days, an owned trailer, and a temporary substitute vehicle (though not covered for physical damage).

Homeowners Policy Definitions

The following is our attempt to make the definitions of a homeowners policy more understandable.  Please make sure to consult the policy itself for any legal definition as policies may vary.

Bodily Injury: Getting hurt or sick (extended illness and disease).  Included loss of services and death of a member of the public.

Business: Your trade, profession, or occupation.

Insured: Insured includes:

 

You and the people who live in your house who are related to you; or people under the age of 21 in the care of you or the people who live in your house who are related to you.
 

In the liability section of the policy, insured also includes any person or organization legally responsible for animals or watercraft (to which the policy applies) owned by you or anyone that fits the first definition unless they are in the course of business or without your permission.
 

In the liability section again, insured also includes any person while working for you or anyone that fits the first definition or any person on an insured location while using a vehicle (to which the policy applies) with your consent.

Insured Location: Insured location includes:

  The residence premises. These include your house, other structures and grounds, or the part of any other building where you live and that's shown as the residence premises in the declarations of the policy.
  Residence you acquire during the policy period.
  Any premises used by you in connection with your residence premises (ex: storage warehouse).
  Any part of a premises not owned by an insured and where an insured is temporarily living.
  Vacant land, other than farm land, owned by or rented to an insured.
  Land owned by or rented to an insured where a house or duplex is being built as a residence for an insured.
  Individual or family cemetery plots or burial vaults of an insured.
  Any part of a premises occasionally rented to an insured for anything except business (ex: a rented hall where insured is holding a personal gathering).

Occurrence: An accident, including exposure to conditions, which resulted in bodily injury or property damage.

Property Damage: Physical injury to, destruction of, or loss of use of tangible property.

Residence Employee: An employee of an insured whose duties are related to the maintenance or use of the residence premises, including household or domestic service. Or, one who performs similar duties elsewhere not related to the business of an insured (ex: painter who paints your house) when total payroll does not exceed $10,000.

Residence: Your house, other structures and grounds or the part of any other building where you live and that is shown as the residence premises in the declarations of your policy.