A special perils policy means that all types of loss are covered unless they are specifically excluded in the exclusions portion of the policy.
A named perils policy is a policy that lists certain perils that are covered. If the damage isn’t caused by one of the listed or named perils there is no coverage for the loss under this type of policy.
Medical payments coverage applies for an injury to a third party regardless of whether the insured is liable for an incident. If a covered loss occurs, the medical payments limit is available to the injured party for necessary medical expenses.
Liability insurance protects you from claims made against you by a third party alleging damages. If you are sued for a covered incident, we will pay for an attorney to defend you, court costs, and any damages awarded up to the policy limit. Liability claims, or potential liability claims, should be reported immediately so that we can provide guidance to you and begin investigations.
If a third party is responsible for the damages to your property, but you are forced to make a claim on your policy, we will pursue the third party to compensate us for the damages paid. If damages are recovered, we can return a prorated amount or your entire deductible to you.
The claim is adjusted at replacement cost up to the policy limit. The policyholder is paid the actual cash value of the loss initially and can then “recover” an amount up to the amount of the withheld depreciation once repairs or replacement is completed. This is referred to as recoverable depreciation.
An ACV policy pays for loss to items (if the loss is covered by the policy) based on the value of the item at the time of loss. If your television was destroyed by fire, payment would be based on the age of the television; you would not receive payment based on what it is worth as a new television. The good news is, on most policies, you can purchase a coverage that will pay for an item of contents (such as the television) based on the new value - although the deductible will apply.
This feature increases your dwelling coverage to help keep up with inflation and the rising costs of building materials and construction. Though we increase your dwelling coverage annually, this is no guarantee your dwelling is adequately insured. It is the responsibility of the policyholder to determine adequate coverage. Contact your agent if you need help determining the adequate coverage amount for your property. It is also important that you notify your agent if you make significant changes that increase the value of your property.
Disclaimer: These FAQs do not replace or override the wording in your policy. You should read your dec page and policy for specific policy provisions, limitations and exclusions. For a complete explanation of coverages, please consult one of our licensed agents.