Accidents happen all the time, whether your car or house gets damaged, or someone falls on your property. But how does insurance come into play when losses happen? Most people understand that insurance is essential, but what many don’t understand is the coverage options and how they apply to a covered loss. If you experience a loss, it’s always a relief to hear that it is covered but how was your loss covered? Do you know?
Commonly Misunderstood Coverage Options, but Not Limited to:
Insurance doesn’t need to be complicated so let’s look at some typical insurance coverage options that are commonly misunderstood.
Collision- This physical damage coverage is designed to protect your vehicle when involved in an accident with another car or object, subject to a deductible. How the claim payment is handled can be confusing to many people. It is essential to discuss this with your local Alabama independent insurance agent when a covered loss happens.
Comprehensive- This physical damage coverage pertains to your covered auto and is sometimes called “other than collision” coverage, subject to a deductible. Covered perils include vandalism, theft, fire, hail, windshield breakage, and colliding with an animal such as a deer, dog, or bird. Many people confuse collision versus comprehensive especially concerning auto damages caused by animals.
Inland Marine- The average person may think inland marine coverage pertains to marine exposures, as the name suggests, but this is not so. Under typical auto or home insurance policies there may be coverage for certain items (jewelry, coin collections, furs, firearms, etc.), but only on a limited monetary amount. Another reference for this type of coverage is scheduled personal property endorsements or personal articles floaters which, through endorsement, will protect your precious valuables up to their agreed value versus the specified limitations outlined on the policy verbiage. If you have collectibles or valuables and wish to adequately protect them for their value, contact us at Burkett & Associates Insurance and we can assist you.
Personal Umbrella- This coverage is perhaps the most misunderstood insurance coverage out there. This coverage is considered “excess” coverage once the primary liability limits of the policy (auto, home, watercraft) have been exhausted. This is designed for catastrophic type of losses and is available (typically) in $1 million increments.
If it’s Covered, but You Don’t Know Why or How, Call Us!
If you have a loss and have questions and concerns about how it is covered, we are here for you. We understand you may need assistance about coverage or which insurance options are best for your specific needs. Call us TODAY at 256-704-7400.