The homeowners policy provides protection against the financial consequences of personal losses. A homeowners policy is a combination of property and liability coverages. The homeowners policy is tailored to meet the needs of a homeowner.
The Homeowners policy provides coverages for dwellings that are owner occupied. The policy provides coverage against risks of direct physical loss to real property and Personal property, except for those causes of loss that are specifically excluded. In addition to the coverages stated under Section I, several additional coverages are included. Some of the coverages included are; debris removal, fire department charges, reasonable repairs charges, property removal charges, and coverage for trees, shrubs and plants. Coverage may also be included for loss involving credit cards, forgery, and counterfeit money. These additional coverages are usually optional and may be automatically included with specific limitations and is subject to certain conditions. Most optional coverages are considered an endorsement and are typically extra premium.
The liability coverage of the personal auto policy provides protection against legal liability arising out of the ownership or operation of an automobile. Liability coverage can pay damages for bodily injury or property damage for which the insured is legally responsible because of an automobile accident. The liability limit can be written as a single limit that applies to both bodily injury and property damage. An example of this would be $500,000 per person, per accident and property damages. The policy can also be written with split limits in which the limits of insurance for bodily injury and property damage are stated separately. An example of split limits would be $250,000/$500,000/250,000. This means the limit of liability per person is $250,000, per accident is $500,000 and the property damages limit would be $250,000. In addition to the payment of damages for which the insured is legally liable, the insurance company also agrees to defend the insured for all legal defense costs. The defense cost is in addition to the policy limits.
Medical Payments Coverage
The insurance company will pay all reasonable and necessary medical expenses incurred by an insured because of bodily injury caused by an accident. The insured is the named insured and family members, and any other person injured while occupying a covered auto. Pedestrians or cyclists are also considered the insured when struck by a vehicle. These payments are made without regard to fault.
This coverage can pay for bodily injury to an insured who is injured by an uninsured motorist, a hit-and-run driver, or a driver whose insurer becomes insolvent. Some states offer coverage for property damage as part of the uninsured motorist coverage. Usually when property damage is added a deductible would apply.
This coverage can be added to the policy to supplement the uninsured motorist coverage. The coverage must be added to all automobiles listed on the policy, and it must be added for the same limit as the Uninsured Motorist Coverage. Underinsured motorist coverage applies when a negligent driver has liability limits at the time of an accident, but the liability limits carried may be insufficient to pay for damages that the negligent driver is responsible for. This is when the insured's underinsured motorists’ coverage would apply and payment for the difference could be made. The two coverages are mutually exclusive and do not overlap or duplicate each other. An insured can collect under one coverage or the other depending on the situation, but not under both. If this coverage is selected in Wisconsin, specific limits are mandatory.
This coverage provides protection against the upset of your auto or non-owned auto or a collision with another vehicle or object. Collision losses are paid regardless of fault.
Comprehensive OR Other Than Collision Coverage
This coverage provides protection against any loss or damage to a covered auto resulting from loss. Other Than Collision (OTC)or upset, or a loss specifically excluded. OTC coverage would pay in the event of a car fire, damage caused by striking an animal, glass damage or breakage and theft. This coverage may also provide for supplemental payments for towing and/or transportation and rental car reimbursement expenses.
This coverage applies when a covered auto or non-owned auto is withdrawn from use more than twenty-four hours due to a loss, other then theft. The insuring agreement agrees to pay up to the stated amount for expenses incurred in renting a vehicle. The coverage usually carries a per day limit and a maximum amount limit.
Towing and Labor Coverage (Roadside Assistance)
This coverage pays for towing and labor cost each time a covered auto or non-owned auto is disabled, up to the stated amount. Many companies vary coverage when purchased.
The Personal Umbrella Policy was designed to provide coverage in the event of a catastrophic claim, lawsuit, or judgment. Personal umbrella policies provide excess liability insurance over the insured's basic primary policies, such as the homeowners, personal auto and watercraft policies.
Coverage is provided on a worldwide basis for the entire family. Umbrella policies pay only after the limits of the underlying primary policies are exhausted. Coverage is usually broader and applies to some loss exposures not covered by the primary policies. A typical umbrella policy will provide coverage on a single limit occurrence basis. Coverage is provided for bodily injury and property damage liability. Defense costs are also covered, normally in addition to the liability limit, and sometimes included as a part of the total limit. A self insured retention must be met when certain losses are covered under the umbrella policy but not covered under the primary policy. The insurer requires the insured to carry certain minimum amounts of liability insurance on primary policies. Coverage under a personal umbrella policy can vary depending on the insurer since there is not a standard personal umbrella policy form.
Required Underlying Limits
This is a requirement of the insurer, it requires the insured to have certain minimum amounts of primary liability insurance before the umbrella policy can be written. Usually the required limits are at minimum $250,000 per person and $500,000 per occurrence on bodily injury liability and $50,000 for property damage liability under the auto policy. The personal liability insurance limits must be at least $100,000 under the homeowners policy. Insured's that have a watercraft liability exposure are usually required to carry at least $300,000 in liability coverage. However, these required underlying limits can very among insurers.
The dwelling policy provides premise liability and property coverage for the dwelling and offers a limited amount on its contents. Many of the coverages found in the dwelling policy are found in the homeowners policy, but there are some differences. The dwelling policy tends to provide narrower coverage than the homeowners policy. The insured under the dwelling policy is the named insured and the spouse, if a resident of the same household. D-3 dwelling policy form is the broadest and provides coverage for the dwelling, other structures, personal property, fair rental value and additional living expenses. In addition to these coverages, the policy provides additional coverages for reasonable repairs, property removed, fire department service charges, debris removal and coverage for trees, shrubs, and other plants. Generally a dwelling/fire coverage offers less coverage for more premium, but may be the only option available if the dwelling is not owner occupied.
