Insurance terms and definitions from Schuder Insurance Agency.
Auto Insurance
Liability Coverage: Protects you against financial loss if you are found legally responsible for causing injury or damage to another person or their property.
Collision Coverage: Pays for damage to your car resulting from a collision with another vehicle or object.
Comprehensive Coverage: Covers damage to your car caused by events other than a collision, such as theft, fire, or natural disasters.
Homeowners Insurance
Personal Liability: Provides coverage if you are legally responsible for injury or property damage to others.
Dwelling Coverage: Pays for damage to your home and attached structures caused by covered perils like fire, wind, or hail.
Personal Property Coverage: Covers the cost to repair or replace your personal belongings if they are damaged, stolen, or destroyed.
Life Insurance
Term Life Insurance: Provides coverage for a specified period, such as 10, 20, or 30 years. Pays a death benefit if the insured dies during the term.
Whole Life Insurance: Offers lifetime coverage with a savings component that builds cash value over time.
Universal Life Insurance: Combines the benefits of term life insurance with a savings component that earns interest.
Business Insurance
General Liability Insurance: Protects your business from financial loss due to claims of injury, property damage, or negligence.
Commercial Property Insurance: Covers damage to your business property caused by events like fire, theft, or natural disasters.
Workers’ Compensation Insurance: Provides benefits to employees who suffer work-related injuries or illnesses.
Medicare Insurance
Medicare Part A: Covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care.
Medicare Part B: Covers certain doctors’ services, outpatient care, medical supplies, and preventive services.
Medicare Part D: Provides prescription drug coverage.
Additional Terms
Deductible: The amount you pay out of pocket before your insurance coverage kicks in.
Premium: The amount you pay for your insurance policy, typically on a monthly or annual basis.
Claim: A request made to an insurance company for payment of a loss covered under the policy.
Policyholder: The person or entity that owns the insurance policy.
Underwriting: The process by which an insurance company evaluates the risk of insuring a person or entity and determines the premium and coverage terms.
Coverages and benefits listed on this page may not be available in your state. If available, some optional coverages and benefits might be offered at an additional charge. Contact Schuder Insurance Agency today to learn more.