Insuring Your Future Objective: Know the types of coverage provided by property and casualty insurance. Understand the coverages provided in an automobile insurance policy. Bellwork: What is Coinsurance? How does it work?

 Rather than have the policy written to cover all the insured’s personal property, it is also possible to contract for coverage of scheduled (specifically identified) property, such as jewelry, furs, athletic equipment…  Once can also arrange to insure a single piece of personal property, such as an organ or a neon sign.  Mail-order dealers frequently take out a blanket policy to cover all losses, including breakage and mysterious disappearances of shipped goods.

 Laundries and dry cleaners may take out policies covering possible losses to customer’s property in their possession.  Such a policy is known as lessee insurance.

 Although the application of the personal property floater is quite broad, some losses are excluded from coverage.  Common excluded losses include:  Losses from wear and tear  Repair efforts  Dampness  Temperature  War  Confiscation  Dishonesty of a party to whom the goods have been entrusted

 Liability insurance is a type of casualty insurance that indemnifies against personal injury or property damage claims for which the insured is legally responsible.  Generally, liability insurance coverage is limited to harm accidentally caused by the insured.  Intentional infliction of harm by the insured is not covered.

 Liability coverage is a major part of most automobile insurance policies.  Coverage for liability claims not arising out of the operation of a motor vehicle is often offered as part of a homeowner’s or an apartment dweller’s insurance policy.

 Many persons engaged in providing personal services, such a beauty salon operators, and most businesses usually carry liability insurance.  Persons rendering professional services, such as hospital operators and physicians, usually purchase coverage for malpractice through liability insurance.  Television and radio broadcasting companies also carry liability insurance to protect against liability for defamation.

 A variety of coverages may be provided by automobile insurance.  Primary among these is coverage for liability.  An automobile insurance policy’s liability requires the insurer to represent and provide for the insured’s defense if the insured is accused of or sued for negligent ownership, maintenance, or use of the motor vehicle.

 In addition, if necessary, the coverage indemnifies for the payment of damages resulting from such negligence.

 Automobile liability insurance coverage may be augmented by an omnibus clause.  An omnibus clause extends similar coverage to all members of the named insured’s household and to any person not in the household who is given permission to drive the insured’s car.

 Auto insurance also commonly covers when household members are operating non- owned vehicles with the owner’s permission.  Examples include:  Vehicles used when the insured vehicle is broken down  When you purchase a new vehicle to replace the insured car (this applies for a limited time)

 If you are driving someone else car, the car owner’s policy provides the primary coverage.  The driver’s policy the may provide coverage up to the face amount for any excess liability.

 Because the insurer is contractually liable for claims against their insureds, the insurer has the right to settle claims or defend the insured in court.  Since the insurer has liability under the policy, only the insurer can make a settlement with claimants against the insured.

 Liability claims against the insured that the insurer may have to pay include bodily injury or death of third parties and damage to the property of third parties.  Third parties are persons other than the insured or insurer.  Who is NOT covered under Automotive Liability?

 Other types of automotive insurance are medical payments coverage, collision and comprehensive coverage, and uninsured and underinsured coverage.

 Medical payments coverage pays for the reasonable medical claims of occupants of the insured’s vehicle who are injured in an automobile accident.  The coverage also applies to the insured and the insured’s family members, even if they are riding in another vehicle.

 Medical Payments Insurance is mainly for vehicle occupants. However, it also covers the insured and the family members if a vehicle strikes those person while walking, riding bikes, roller skating, or sledding.

 Two types of automobile insurance coverage indemnify insureds for damage to their own vehicles.  The first, collision insurance, protects against direct and accidental damage due to a) Colliding with another object, such as a tree or bridge b) Upset, Insurance companies' definitions of upset vary depending upon the company's internal guidelines and policy terms; however, in general, upset of a vehicle means if it was caused to tip or turn over.

 Collision coverage pays only the actual cash value (the cost new minus an allowance for age and use) of the vehicle or its damaged parts less any deductible.  Thus, for each loss the insured pays up to the amount of the deductible.  The insurer pays the rest up to the policy limit.

 The 2 nd type of auto insurance to indemnify the insured for damage to their own vehicle is comprehensive insurance.  Comprehensive insurance indemnifies against all damage to the insured’s car except that caused by collision or upset.  The causes covered by comprehensive insurance, which could occur for any reason, include fire, theft, water, vandalism, hail, and glass breakage.

 Theft includes loss of the car and any part of the car, such as hubcaps.  However, loss of clothing and other personal property left in the car generally is not covered unless the loss is by fire.  Similarly most premiums require extra premiums to cover compact disc players radios, and stereos.  Any damage done to a car such as broken locks is covered.

 When an accident is caused by the negligence of a driver who is uninsured and potentially insolvent or who leaves the scene and cannot be found, innocent parties involved in the accident may have to bear their own losses.  Consequently, many vehicle owners carry supplemental coverage to a regular policy. This additional coverage, called uninsured motorists coverage, allows the insured to collect damages from his or her own insurance company when they are not collectible from the person who caused the harm.

 In most states uninsured motorists the coverage is limited to compensation for bodily injury, death, lost wages, or support, and pain and suffering.  Indemnification for property damage is generally excluded from this coverage.

 In this same vein is underinsured motorist coverage, which compensates the insured when the negligent driver does not have sufficient insurance to cover damages.  Like uninsured motorists coverage, underinsured motorists coverage excludes payments for property damage.

 No-fault insurance requires that parties to an automobile accident be indemnified by their own insurance company regardless of who is at fault.  Therefore, a court trial to determine who is at fault in an accident may be avoided. The indemnification of the losses by the insurance company takes the place of the damages that might have been awarded.  Generally, property damage is not covered by a no- fault system because it is not likely people will sue for the amount involved.

 If you do most of your driving in Nebraska, you probably won't need to know the details of no-fault insurance.  Nebraska is a “fault” state when it comes to liability for damages stemming from a car accident.  This means that anyone who has been injured in a car accident -- whether a driver, passenger, or pedestrian -- usually has several options:  file a claim under his or her own health or auto insurance policy.  file a third party car insurance claim with the insurer of the driver who caused the accident, orthird party car insurance claim  file a personal injury lawsuit against the at-fault driver, seeking a specified amount of damages.