There are basically seven different types of coverages. Some may be required by law. Others are optional. They are:
1. Bodily injury liability (B/I), for injuries the policyholder causes to someone else.
2. Personal Injury Protection (PIP) for treatment of injuries to the driver and passengers of the policyholder’s car.
3. Property damage liability (PD), for damage the policyholder causes to someone else’s property.
4. Uninsured Motorist (UM), for costs resulting from an accident involving a driver who does have insurance.
5. Medical Payments. to be used to off-set deductibles or in conjunction with other medical costs.
6. Collision, for damage to the policyholder’s car from a collision.
7. Comprehensive, for damage to the policyholder’s car not involving a collision (including damage from fire, explosions,
earthquakes, floods and riots), and theft.
6. Uninsured motorists (UM) coverage for costs resulting from an accident involving a driver who does not have insurance.
BUSINESSOWNERS POLICY / BOP
A policy that combines property, liability and other coverages for small- to medium-sized businesses. Coverage is generally cheaper than if purchased through separate insurance policies.
COMMERCIAL GENERAL LIABILITY INSURANCE / CGL
A broad commercial policy that covers liability exposures of a business that are not specifically excluded. Coverage includes product liability, completed operations, premises and operations, and independent contractors.
HOMEOWNERS INSURANCE POLICY
The typical homeowners insurance policy covers the house, the garage and other structures on the property, as well as personal possessions inside the house such as furniture, appliances and clothing, against a wide variety of perils including windstorms, fire and theft. The extent of the perils covered depends on the type of policy. An all-risk policy offers the broadest coverage. This covers all perils except those specifically excluded in the policy.
Homeowners insurance also covers additional living expenses. Known as Loss of Use, this provision in the policy reimburses the policyholder for the extra cost of living elsewhere while the house is being restored after a disaster. The liability portion of the policy covers the homeowner for accidental injuries caused to third parties and/or their property, such as a guest slipping and falling down improperly maintained stairs. Coverage for flood and earthquake damage is excluded and must be purchased separately.