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Understanding your insurance policy is just as important as having one. Below are the most common personal insurance terms used in home insurance, auto insurance, life insurance, health insurance, and recreational vehicle insurance policies.
The amount you pay to maintain your insurance policy. Your premium for homeowners’ insurance, auto insurance, or life insurance is based on risk factors, coverage limits, and personal details.
The amount you pay out-of-pocket before your insurance coverage begins to pay on a claim.
The maximum amount your insurance company will pay for a covered loss.
A formal request to your insurance provider for payment after a covered loss or event.
The protection provided under your insurance policy, such as personal auto insurance coverage or homeowners insurance coverage.
Situations or losses that are not covered under your policy.
An addition to your policy that adjusts or expands coverage, often used in home insurance policies or personal property insurance.
Protects the structure of your home under a homeowners insurance policy.
Covers detached structures such as garages, sheds, and fences.
Covers belongings such as furniture, electronics, and clothing under your homeowner’s insurance or renters’ insurance policy.
Helps pay for temporary housing if your home is unlivable after a covered loss.
The cost to rebuild or replace property at today’s prices.
Replacement cost minus depreciation.
Protects you if you are responsible for injury or damage to others under your homeowner’s insurance or umbrella insurance policy.
Additional coverage for high-value items like jewelry, firearms, or collectibles under inland marine insurance.
Covers injuries and property damage you cause to others under your auto insurance policy.
Pays for damage to your vehicle after an accident.
Covers theft, weather damage, fire, vandalism, and animal collisions.
Protects you if the other driver has little or no insurance.
Helps cover medical expenses after an accident, regardless of fault.
Covers medical costs and sometimes lost wages after an accident.
A set value agreed upon for your boat insurance or RV insurance policy.
The depreciated value of your recreational vehicle.
Protects your RV, boat, or ATV from damage caused by accidents or weather.
Covers injuries or property damage you cause while operating a recreational vehicle.
Extra liability protection above your home insurance and auto insurance limits.
Additional coverage that kicks in after your primary policy limits are reached.
Covers attorney fees and court costs in covered liability claims.
Commercial general liability insurance helps protect your business from claims involving bodily injury, property damage, and personal injury. This is one of the most essential coverages for any business in Iowa.
Commercial property insurance covers your building, equipment, inventory, and business contents. It helps protect against losses caused by fire, theft, vandalism, and certain weather-related events common in Iowa.
A Business Owners Policy combines commercial property insurance and general liability insurance into one convenient and cost-effective package. It is commonly used by small to mid-sized businesses seeking comprehensive protection.
Workers’ compensation insurance provides medical benefits and wage replacement for employees injured on the job. It also helps protect business owners from employee injury lawsuits.
Commercial auto insurance protects vehicles used for business purposes. Coverage may include liability, physical damage, medical payments, and uninsured motorist protection.
Business interruption insurance helps replace lost income and cover ongoing expenses if your business is temporarily closed due to a covered loss such as fire or storm damage.
Professional liability insurance protects businesses against claims of negligence, mistakes, or failure to deliver professional services as promised.
Commercial umbrella insurance provides additional liability coverage above the limits of your existing business insurance policies, helping protect your business from large claims or lawsuits.
Cyber liability insurance helps protect businesses from financial losses caused by data breaches, hacking, ransomware attacks, and other cyber threats affecting customer or business data.
Equipment breakdown coverage helps pay for repair or replacement of essential business equipment that fails due to mechanical or electrical issues.
EPLI protects businesses from claims involving wrongful termination, discrimination, harassment, and other employment-related issues.
Inland marine insurance covers tools, equipment, and property that is transported or used off-site. This is especially important for contractors and service-based businesses.
Commercial crime insurance protects businesses from financial losses caused by theft, employee dishonesty, forgery, or fraud.
A fixed cost paid for medical services.
The percentage of costs you share with your insurer after your deductible is met.
The maximum amount you pay before insurance covers 100% of eligible expenses.
Doctors and providers that are contracted with your insurance company.
The person or entity who receives the payout from your life insurance policy.
The amount paid to your beneficiaries upon death.
Coverage for a specific time period, such as 10, 20, or 30 years.
Permanent coverage that may build cash value over time.
Flexible permanent life insurance with adjustable premiums and benefits.
A savings component that grows inside certain life insurance policies.
The process used to evaluate risk and determine eligibility and pricing for life insurance coverage.
Whether you’re protecting your home, vehicle, farm, business, or family, State Bank & Insurance is here to help you find coverage that fits your needs and budget.
Contact us today to request a personalized insurance quote and speak with a local agent who will help you explore your coverage options with confidence.
