McQuiston: It MAY Have Been Covered … But HOW?

By ALLEN MCQUISTON
The Jemez Agency
amcquiston@thejemezagency.com

If you’ve watched any college football over the past several years, you’ve probably seen multiple commercials from a certain insurance company that likes to show an imaginary college professor walking an individual through a building containing exhibits that represent different claim situations.

The commercials show what happened while the professor narrates, then at the end of the story he states, “we covered it”.

Although many of these claim scenarios appear to be unusual, they would likely be covered by any personal insurance program – as long as the right coverage is in place.

With that in mind, let’s take a look at some of the most common insurance coverages that are often misunderstood.

Making sure your personal insurance program includes these can make the difference between having your claim fully covered versus having it denied due to lack of proper coverage.

Comprehensive Coverage: This is physical damage coverage on auto policies that is sometimes referred to as “other than collision.” In short, this coverage protects your vehicle against physical losses that don’t result from a collision (although there is one animal-related exception to this). Perils such as fire, theft, vandalism, glass breakage, and hail are all covered under comprehensive coverage. In addition, if your vehicle collides with a bird or animal, it will be deemed a comprehensive loss rather than a collision loss (this is the exception).

Collision Coverage: This is a little more straightforward, as it covers your vehicle against accidents where the vehicle is “upset” (turned over) or where it impacts another vehicle or object.

Personal Umbrella Policy: Possibly the most misunderstood personal insurance coverage out there, the personal umbrella policy is not a property-centered insurance policy that “covers everything;” rather, it is a liability policy that provides you with additional liability limits (typically in $1 million increments) that extend over your various forms of liability insurance, be it personal liability, auto liability, watercraft liability, landlord liability, etc.

Inland Marine Policy: While personal umbrellas are typically the most misunderstood, inland marine policies are the most confusing because the items covered under these policies usually have nothing to do with marine exposures.  These are also referred to as personal articles floaters or scheduled personal property endorsements. No matter what they are called, they can provide protection against losses to unique and valuable items such as jewelry, fine arts, and collectibles that are scheduled, stated, or listed on your policy Declarations Page.

Finally, just in case you were wondering, one of the commercials in the aforementioned series shows a truck crashing into a house. Most homeowner insurance policies would typically cover this, so don’t think that you need some sort of extra coverage for it.

When in doubt about a coverage term or the type of coverage you need, reach out to your local insurance professional as he or she is always ready to help.

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