Coverage's and how to reduce costs for both auto and homeowners policies are explained in this section. As with any insurance, it is important to read and understand the coverage, limitations and exclusions provided in your policy or quote with a licensed and experienced insurance agent. The information provided in this section is a general description and may or may not relate to your specific policy and its coverage. For a simple explanation of insurance, start with Insurance 101. Click here for Auto and Click here for homeowners details.

In this section, insurance has been explained in a way that is easy to understand. Think of it as a starting point for those who have little experience with insurance, policies and coverage's.
Click here for insurance 101.

Coverage Explained

Most automobile insurance policies contain declarations, coverage's, supplementary payments, definitions, exclusions and conditions. Each type of protection is separated into sections indicating when the coverage applies, the amount (s) of coverage, what is and what is not covered, and any conditions  that apply.

Declarations:

The declarations section provides an overview or outline of pertinent information provided in the policy, including the insured’s name and address, policy number, type of policy, dollar limitations on various types of coverage, descriptions of vehicles covered, deductibles, policy dates that coverage is provided, any endorsements (modifications added to the policy), and specification of who payment is to be made in the event of a loss if it is other than the insured (e.g., bank with loan).

Coverage's:
These are common types of auto coverage's available:

· Bodily Injury Liability

This pays for a claim(s) arising from injury from an automobile accident for which you are legally liable. The limit of payment is stated in your policy. Defense costs are in addition to the limits of liability.

· Property Damage Liability

This pays for a claim(s) for damage to another automobile or other property for which you are legally liable. The amount of protection is dependent upon the amount of insurance you purchase. Defense costs are in addition to the limits of liability.

· Medical Payments

 Pays for medical or funeral expenses for you and others injured or killed while riding in your car, no matter who caused the accident. It also covers you and resident family members if struck by a vehicle as a pedestrian or if riding in another vehicle designed for use on public roads. The amount of protection is dependent upon the amount of insurance you purchase.

· Uninsured Motorists (UM)

Provides bodily injury coverage to the insured driver, resident family members and passengers, up to the UM policy limits, when involved in an accident caused by the negligent owner or operator of an uninsured vehicle or an unidentified “hit-skip.” The named insured and family members are also covered if they are pedestrians and struck by a UM vehicle.

· Underinsured Motorists (UIM)

Provides bodily injury coverage to the insured driver, resident family members and passengers, up to the UIM policy limits, when involved in an accident when the at-fault driver’s bodily injury liability policy limits are less than your UIM limit.

· Collision

This pays for damage to your car caused by impact with another object or an overturn, regardless of the fault. Payment amount depends on the amount of deductible you have selected. This means that you pay the amount of the deductible first for repairs to your car and the company pays the remaining balance.

· Uninsured Motorists Property Damage (UMPD)

Provides coverage for damage to your vehicle if it is struck by an identified negligent uninsured motorist. This coverage is similar to collision. Coverage amount and deductible should be discussed with your agent.

· Comprehensive

This is a “catch-all” coverage that pays you for damage to your car from something other than collision. This may include (but not limited to) fire, theft, vandalism, projectiles or falling objects, hail, flood, and impact with a bird or animal. This coverage is available with deductibles.

Supplementary Payments:

This provides for payment (beyond the limits of liability as noted in your policy) of the insurance company’s expenses including: all costs taxed against you in a court suit, attorney’s fees, bail bonds (a limited amount) and related costs. Reasonable expenses you accumulate while complying with requests made by the insurance company are also reimbursed. (e.g., lost wages reimbursed for attending a trial when requested by the insurance company) 

 Definitions: This section defines terms as they are used within the policy.

• Exclusions:
  Exclusions clarifies situations and conditions when you and/or your vehicle are not covered by your policy. Know that policies will not cover all things under all circumstances.

• Endorsements:
  You may be able to add endorsements to the policy at an additional cost. Endorsements can provide coverage that normally would be excluded from your policy.

• Conditions:
  As presented within the policy, specific stipulations must be met by the insured or by the insurance company as part of the agreement. When the conditions are not met, the policy is not valid. Examples of conditions may include time-period restrictions, duties in the event of a claim, proof of loss, etc.

How To Reduce Auto Insurance Costs

· Comparison shop. You will want to make sure YOUR insurance needs are being met and that your decision is not based solely on price. Service, claims handling and company stability should be a major consideration. Company information is readily accessible on the Web. Miller-Lewis provides multiple quotes from only reputable and long trusted companies for your convenience. Also, be sure that your quotes are comparing “apples to apples” so that the same policy specifications are being used.

· Raise your deductibles. When there is a claim, you pay the amount of the deductible first for repairs to your car and the company pays the remaining balance. You trade off savings in insurance coverage for increased payment when there is a claim. You may be pleasantly surprised on how much you can save, but face disappointment when paying for those expenses that fall below your deductible. Talk to an experienced agent to help with this important decision.

· Choose the right car. Compare insurance premiums of similar makes and models when selecting a new car. Premiums are usually higher for luxury, sport and four-wheel drive models because of repair costs and auto theft trends.

· Eliminate collision and comprehensive coverage's on older cars with significant depreciation. When a car is worth less than 10% of your annual premium, it may cost more to insure it than what you’d collect after an accident. Check on your vehicle’s value with an auto dealer, bank or through Kelley’s Blue Book. Be sure to maintain auto liability coverage.

· Ask about discounts. Discounts can include: having more than one policy with the same company, low daily commute, college students, safety equipment, good student grades and more. Each insurance carrier offers discounts, but they vary by company. Ask your quoting agent what discounts you may qualify for.

· Eliminate duplication of coverage's. Coverage is sometimes provided as part of a membership within an auto club (e.g., free towing service) or when the auto manufacturer provides perks (e.g., roadside assistance) for purchasing a new vehicle. Avoid these and other coverage duplication on your policy.

· Reduce your daily driving. When you reduce the amount of miles in your daily driving, chances are that you also reduce your risk of being in an accident. Discounts for driving less than a predetermined number of miles annually are sometimes applicable and will save you money.

· Drive defensively. Some companies reward policyholders for remaining accident-free over a certain period of time. Drivers that are found at fault for an accident or have a major traffic violation may find an increase in their premiums and/or being placed in a high-risk category.

· Keep tabs on your credit. An insurance score is a snapshot of your insurance risk based on information in your credit report. It reflects your credit payment patterns over time, with more emphasis on recent information. Many companies take insurance scores into account when assessing a potential auto insurance risk.

Contents of a homeowners policy

Property Covered:

Under most homeowners’ policies, the major property to be covered is the house also referred to as a dwelling. This includes an attached garage or other house additions attached to the structure. Detached structures such as garages and tool sheds on the insured property are also covered. Any detached structure on the premises that is rented or leased to others (except for garage purposes), or used for business purposes, is not covered under the homeowners policy.

Renters and some condominium owners do not need to insure the buildings they live in. Condo owners are recommended to check with their condo association to determine responsibilities related to insurance coverage.

Personal property coverage is recommended for household contents and other personal belongings owned, worn or carried by you or your family. Coverage applies whether the loss occurs while you’re at home or away. Animals or pets are not covered.

Coverage includes “Loss of Use”. This is when your residence is damaged by an insured peril to the extent that you can’t reside there until the damage is repaired. The increase in living expenses during this time is covered up to the limits as stated in your policy.

Liability Coverage:

This coverage protects you in the event you are sued for negligence that results in injury or damage to property of another person.

Medical Payments to Others:

This provides medical payment coverage for accidental bodily injury to others when it occurs on your premises or elsewhere if caused by you, a family member or pet(s). It does not matter whether you are legally liable or not. There are minimum limits that are defined in your policy.

Damage to Property of Others:

This covers minor damage accidentally caused by you or someone in your family to another person’s property whether you are legally liable or not. Damage caused by children under age 13 is covered whether the cause is accidental or intentional. There is a maximum limit as defined in your policy.

Exclusions:

Homeowners policies exclude certain perils, including but not limited to: earthquake, flood, surface water, sewer backup, and seepage. Most of these perils are classified as “acts of God” and are not considered as normal accidental losses.

Special limits:

Certain types of personal property covered by the homeowner’s policy are limited to specific amounts per loss. Since these can vary from one insurance company to another, you will want to review any special limits that apply to your policy. The limit amounts commonly will still meet the average needs of most homeowners.

Policy endorsements:

A policy endorsement is an amendment or addition that modifies or extends specific coverage's provided by the policy. Endorsements provide coverage under specific conditions or special circumstances. They are readily available by insurers each for an additional charge.

 Shop around. You will want to make sure YOUR insurance needs are being met and that your decision is not based solely on price. Service, claims handling and company stability should be major considerations. Company information is readily accessible on the Web. Miller-Lewis provides multiple quotes from only reputable and long trusted companies for your convenience. We can also help you to decide the coverage that best fits your needs and your budget. Also, be sure that your quotes are comparing “apples to apples” so that the same policy specifications are being used.

· Protect your home against typical perils. Routine maintenance helps prevent claims, a leading cause of premium increases. These include

• Keeping fire extinguishers in higher risk areas such as the laundry and kitchen.

• Updating plumbing, heating and electrical services to reduce the risk of fire and water damage.

• Regularly checking your roof, down spouts and pipes for clogs or leaks.

• Discourage crime by using exterior lights at night and deadbolt locks.

• Fixing railings, steps or walks when they fall into disrepair.

· Raise your deductible. When there is a claim, you pay the amount of the deductible first for repairs to your home and the company pays the remaining balance. You trade off savings in insurance coverage for increased payment when there is a claim. You may be pleasantly surprised on how much you can save, but face disappointment when paying for those expenses that fall below your deductible. Talk to an experienced agent to help with this important decision.

· Ask about discounts. Discounts can include: having more than one policy with the same company, new home purchase, fire alarm, burglary alarm, fire suppression system credit and more. Each insurance carrier offers discounts, but they vary by company. Ask your quoting agent what discounts you may qualify for.

· Review policy annually. Update your coverage when you have major purchases or make additional home improvements. Reduce the amount or eliminate any endorsements for those items that have depreciated in value.

· Don’t insure your land.  Your property will not sustain the same damages that insurance covers for your home. Homeowners insurance is not intended to insure land even though it makes up part of the value of your home.

· Opt for guaranteed replacement cost. Although more expensive, it could save you money in the event of a major loss. Coverage will replace the damaged property or loss, regardless of its age and condition, with materials of similar kind and quality. An “actual cash value” policy provides reimbursement at the depreciated value.

· Protect home business operations. Protect special home business risks by endorsement or a stand-alone commercial policy. Just because a business operates from your home does not include protection as part of your homeowner’s policy. An agent can help determine the parts of your home business that are not covered.