| As with any legal document, it is very important | | | | in writing, then it is not covered. Insurance |
| you understand the terminology used before you | | | | companies will use this as a loophole to avoid |
| sign your name on the line. You agree to | | | | paying out in certain situations. For example, if you |
| everything that is put in writing, regardless of | | | | assume that your house is covered when a |
| whether you understand what the document | | | | storm causes the creek to overflow and you |
| says or not. Legalese is something that can | | | | have flood damage, you would be in for a big |
| confuse even those of us with the best | | | | surprise when you find out that your insurance |
| vocabularies. Do not feel like you will look less | | | | states "damage from rain" as an acceptable cause |
| intelligent if you ask questions of your insurance | | | | really means it only covers damage from rain |
| agent. You need to fully understand everything | | | | coming down from the sky, not rain water rising |
| before you sign, plain and simple. | | | | up from the ground! |
| There are a few terms that are fairly commonly | | | | Personal Liability- This term refers to your |
| used in the writing of an insurance contract. We | | | | payment obligations in regards to accidents, |
| will explain those words and their meanings below. | | | | injuries or other incidents. It is different from |
| ISO Rating- ISO stands for The Insurance | | | | what your insurance company is liable for, so read |
| Services Office. They make ratings for different | | | | the wording of this carefully. |
| firefighting companies based on the companies | | | | Property crime- Refers to the type of crime |
| past responses to fire calls, as well as their abilities | | | | intentionally caused by a person, including theft, |
| to fight the fires. This affects your premium by | | | | arson, and vandalism. |
| default. If you live in an area where the fire | | | | Susceptibility Profile- This formula takes |
| department has a god ISO rating, your insurance | | | | information about crimes that are commonplace in |
| premium will be lower than in an area where the | | | | your area. They base it on the history of the |
| fire department has a less than stellar | | | | area and the availability of police and fire |
| performance record. | | | | departments to get to your home in an |
| Liability- The term liability is pretty standard | | | | emergency. It also includes your own personal |
| across the board for insurance regardless of type. | | | | habits and any history you have had with security |
| It refers to your financial responsibility for | | | | problems. |
| damages caused by an accident or injury. | | | | This list is a good starting point, but remember to |
| Named coverage- When you see the words | | | | get anything you find in your document explained |
| "named coverage" in your policy be careful to | | | | clearly before you sign, as once you do you |
| look at the details of what your policy covers. To | | | | agree to all terms in the contract. |
| put it very simply, if it is not clearly documented | | | | |
