Automobile Insurance

LIABILITY COVERAGES - Mandatory Coverages (Third party coverage)

Bodily Injury Liability (BI)
Protects the policyholder against financial damages arising from an accident where the policyholder is legally responsible for causing bodily injury to someone else.

Property Damage Liability (PD)
Protects the policyholder against financial damages arising from an accident where the policyholder is legally responsible for causing bodily injury to someone else.

Personal Injury Protection (PIP)
Divided into two parts:

1. Medical Payments - Covers the policyholder's medical bills arising from an automobile accident.
2. Work Loss - Provides coverage for the policyholder's lost wages, subject to limitations, due to the policyholder's loss of ability to work because of injuries resulting from an automobile accident.

Uninsured and Underinsured Motorists Coverage (UM/UIM)
Provides coverage for bodily injury incurred by the policyholder in an automobile accident involving a driver that has no automobile insurance or does not have enough insurance to fully compensate the policyholder for their injuries.

Property Protection Insurance (PPI)
Provides up to $1 million in coverage if the policyholder is legally responsible for damage to a building or parked car.

PHYSICAL DAMAGE COVERAGE - Optional Coverages

Comprehensive Coverage (OTC or Comp)
Covers most physical damage to a vehicle other than collision or upset. A collision with an animal is considered a Comprehensive Loss.

Collision Coverage
Three types in Michigan:

1. Broad Form
   Provides coverage for collision damage to the vehicle regardless of who's at fault. The deductible applies only if the insured is at fault.
2. Basic/Standard Form
   Same as Broad Form with the exception that the deductible always applies.
3. Limited Form
   Provides coverage for damage from a collision only if the insured is not at fault.

Towing and Road Service
Provides limited coverage for towing, lock out (some other companies exclude this), or other roadside assistance.

Auto Rental Reimbursement
Coverage for the daily fee, up to the limit stated on the policy to rent a vehicle while the insured vehicle is being repaired due to a covered loss. There is a daily limit and a maximum limit for a single loss.

Homeowners Insurance

Types of Homeowners Policies

• HO-2 - Broad Form
  Named peril (covers only losses which result from causes explicitly listed in the policy) coverage on home and contents.
• HO-3 - Special Form
  Comprehensive coverage on home, named perils on contents.
• HO-4 - Renters
  Named peril coverage for contents only. No dwelling coverage.
• HO-5 - Comprehensive Form
  Comprehensive coverage on home and contents.
• HO-6 - Condominium Form
  Specified amount of coverage on condo unit. Named peril coverage on contents.
• HO-8 - Repair Cost Homeowner Policy
  Coverage provided for homes that are usually old and that have a market value that is less than replacement cost. Provides name peril coverage on home and contents. Settlement for losses on the home is for the actual cost of repairs using today's materials rather than replacement using original materials.

Homeowners insurance is a packaged policy that includes both physical damage coverage for the home, other structures, contents, loss of use and liability.

Coverage A - Dwelling
Provides coverage for loss to the physical structure, subject to the limit on the policy and the policy deductible. Replacement cost (extended or guaranteed) can be purchased.

Coverage B - Other Structures
Provides coverage, usually limited to 10% of the amount of insurance on the home, for other structures on the property that are not connected to the home, e.g. detached garage, storage buildings, etc.

Coverage C - Personal Injury
Provides Coverage up to the limit in the policy (generally 50% or 75%) for the personal property of the insured. There is a limitation on certain kinds of property such as collectables, furs, firearms and jewelry. These items can be insured for a specific limit at the request of the insured. Replacement cost can be purchased.

Coverage D - Loss of Use
Provides coverage for the additional expenses incurred by the insured when they are unable to live in their homes due to a covered loss.

Coverage E - Personal Liability
Provides coverage for the insured for losses arising form accidental bodily injury or property damage to others for which the insured is legally responsible.

Coverage F - Medical Payments to Others

Coverage For Damage to the Property of Others
Provides coverage for damage the insured causes to property that is not owned. Generally limited to $250 or $500.

Personal Umbrella Liability Coverage

Provides coverage for catastrophic property damage or bodily injury losses for which the insured is legally responsible. This coverage also includes coverage for personal injury (libel, slander, false arrest, wrongful imprisonment, etc.) The insured is required to carry specific limits of "underlying coverage" on their homeowners and automobile insurance in order to be eligible for this coverage. Losses that are covered by an umbrella are subject to a self-insured retention.