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Understanding Insurance Terms

We at M3 Insurance – Monagan-Miller-McCreary know the language used by the insurance industry can be confusing. We want to make sure that you clearly understand your options and know precisely what you’re paying for.

Here are some terms we use for types of coverage. There are also a variety of other terms that might be unfamiliar to you. We hope this glossary helps make the world of insurance easier to understand.

Additional Living Expenses

If you can’t live in your home because of a covered loss, your insurance company may pay the necessary increase in living expenses while damage is assessed and your home is repaired or rebuilt.

Broad Form Liability Coverage

Helps protect you from expenses related to injuries or property damage you or your watercraft cause in an accident. Some policies also cover certain accidental fuel spill liabilities and wreckage removal.

C.L.U.E.

C.L.U.E. (Comprehensive Loss Underwriting Exchange) is a claims history database created by ChoicePoint that enables insurance companies to access consumer claims information when they are underwriting or rating an insurance policy. It typically contains up to five years of personal auto or personal property claims history.

You can order a C.L.U.E. report:

LexisNexis Personal Reports
Call toll free 1-866-312-8076

Or you can request a copy from the seller of a home you are purchasing.

Collision Coverage

Pays to repair your auto, classic auto, motorcycle, RV damages caused by an accident. Your agent can help you determine the limits you need based on the agreed value of your vehicle.

Comprehensive Coverage

Pays to repair or replace your vehicle if it is stolen, vandalized or damaged in some way other than in a collision. May include loss from fire, cracked windshields, floods, falling objects, and wind.

Custom Parts & Equipment Coverage

Many motorcycle owners like to customize their rides, and some policies pay for customized parts and equipment, often at no extra charge. Ask M3 Insurance – Monagan-Miller-McCreary for details.

Deductible

When you get insurance, you agree to pay up to a certain amount out-of-pocket in case of a loss. This amount is called your “deductible.” The deductible you choose often affects how much you pay for your premium. For example, a higher deductible usually means a lower premium. In the case of a covered loss, you’ll only be required to pay your deductible, and the insurance company usually covers the excess, up to the applicable limit for that loss under your policy.

Emergency & Roadside Assistance

For auto, boat and personal watercraft, emergency assistance pays for the cost of towing or emergency service. For RVs, it also covers housing and transportation costs if your RV becomes uninhabitable and covers the loss of personal property in your RV. Some policies also provide roadside assistance for motorcycles.

Excess Liability

Sometimes used interchangeably with “umbrella”, “excess liability” refers to extended liability coverage. This coverage is meant to supplement your insurance coverage if the damages exceed your liability coverage. Be sure to talk to M3 Insurance – Monagan-Miller-McCreary about what your excess liability covers.

Fidelity Coverage

Companies and businesses often purchase this coverage to protect them against loss from employee dishonesty (such as theft of money, equipment, or other assets).

Identity Theft

Identity theft occurs when someone steals your personal information and uses it to open accounts or incur charges without your permission. Thieves can access your personal information in a variety of ways, such as stealing your personal mail, your wallet, or hacking your computer files. The thief then uses your identity to rack up debt in your name or perhaps to issue fake IDs. For more information on identity theft and tips on prevention visit the FTC’s Identity Theft Site.

Indemnity

Providing indemnity means to financially restore someone after a loss, through payment, repair or replacement.

Insurance Score

An Credit Based Insurance Score (CBIS) is derived from information on your credit report. It is a number that measures likelihood of having an insurance claim – not a measure of credit worthiness. Insurers use CBIS along with a number of other factors, including driving records, claims history, and the type of home or vehicle owned, to evaluate new and renewal auto and homeowner insurance policies.

Medical Coverage (Home)

Covers medical expenses for guests if they are injured on your property, and in certain cases covers people who are injured off of your property. It does not cover healthcare costs for you or other members of your household.

Medical Coverage (Auto, Boat & Personal Watercraft, Motorcycle, RV)

Provides for your passenger and your medical expenses that are the result of an accident.

Liability & Personal Liability Coverage

For homeowners, this coverage applies if someone is injured or property is damaged and you are to blame. The coverage applies anywhere in the world. When choosing liability coverage for your home, auto, boat, personal watercraft, or RV, consider things like how much money you make and what you own. Your liability coverage should be high enough to protect your belongings if you are sued.

Personal Property Coverage

Your home is filled with furniture, clothes, sports equipment, and other items that mean a lot to you. This coverage helps repair or replace these items if they are lost, stolen or destroyed as a result of an insured event.

Personal Watercraft (PWC)

A personal watercraft (PWC) is a recreational watercraft that the rider sits or stands on, rather than inside of, as in a boat. Models have an inboard engine driving a pump jet that has a screw-shaped impeller to create thrust for propulsion and steering.

Physical Damage Coverage for Watercraft

Pays to repair the damage done to your watercraft due to an accident. It also generally pays to repair or replace your watercraft for insured situations such as theft, fire, vandalism or other non-collision damages that occur in or out of the water

Premium

Simply put, a premium is the payment you make in exchange for one term of policy coverage.

Property or Dwelling Coverage

Typically pays to repair or rebuild your home if it’s damaged or destroyed by an insured event.

Scheduled Personal Property Coverage

If you have special possessions such as jewelry, art, antiques or collectibles, you may want to talk to your agent about this additional coverage.

Umbrella Insurance

Umbrella insurance is the coverage that may kick in when your losses under other insurance policies, such as homeowner’s and auto coverage, have exceeded policy limits.

Underwriter/underwriting

Underwriting is the process of assessing risks when deciding whether to issue a policy of insurance.

Uninsured/Underinsured Motorist Coverage

Pays for damages associated with bodily injury or death from an accident caused by an uninsured, underinsured or hit-and-run driver, as defined by the law in the jurisdiction where the accident occurred, who is at fault. It also covers you if you are hit as a pedestrian.

Unattached Equipment Coverage

Pays to repair or replace equipment that isn’t permanently attached to your boat or personal watercraft. This includes items like life jackets and water-skis.

Content provided by: Safeco Insurance

Our Locations

Tracy Location

1137 B Adam St.
Tracy, CA 95376
Main office: 209-835-6656
Toll free: 800-830-6656
Fax: 209-835-0955

Danville Location

4115 Blackhawk Plaza Circle
Suite 100
Danville, CA 94506
Main office: 925-350-8925
Fax: 866-790-0955

Our Providers

Testimonials

Thank you for the excellent service you have provided over the years, having both homes, three cars, umbrella and other insurance with you as well. It's all been fantastically handled. We made the move over because we saved a lot of money, but beyond saving money the service has been excellent and you and your entire team deserved to be thanked and credited for that. Thanks again, and it's been a wonderful experience and I'm looking forward to a long and prospect relationship.

Craig Walker
Sean and his team provided great service. I called Sean as a friend and asked him to look at my current policies to see if he could save me some money or possibly better protection and he came back with 1 ½ hr later which is amazing in today's day and time. He gave me much better protection and saved me at least 45-50% off my current home and auto policies. He organized and put it all together plus an umbrella policy. I just want to thank Sean and his team once again for helping out just great service. In today's day and age service means a lot especially when we can save some money. Thank you again.

David Liebowitz
Sean I just wanted to take a moment and tell you how happy Kim and I are with you and your team. Having been with State Farm for over 20 years, I just assumed they were taking care of us. Well needless to say – they were just taking our money. Your package saved us hundreds of dollars per year, and I could not be happier with the service. Thanks So Much.

Paul Bradley
My claim experience with your office and Travelers was great. Matt, the adjuster, was delightful. He made me feel relaxed and comfortable. I enjoyed working with him as he was extremely cooperative.

Paulette Ranuio
Your service is absolutely marvelous and just wonderful. When we had a billing problem, your team was on top of it. I was never nervous about it because I knew that it was being taken care of. I really want to thank you and your staff for being there. Your customer service is perfect.

Helena Lowe
I remember when my insurance premium was sky high. At M3, I saved $348 on my auto insurance and I upgraded my home insurance without paying more. It's incredible, I love it!

Joe Rowen
The service is first rate!

Bridget Riddle
I can't say enough good things about M3 Insurance. I couldn't ask for more when I compare my former agent with M3's there is no comparison. As far as claims goes, everything went right. I am a busy business owner and I know I can trust M3 to get the job done on time with a competitive price.

Bob Mills
Sean has always been there for us as our homes, investment properties, and business changes. He and his team do such a great job at keeping up with our busy lives and making sure we have the right protection at the right price.

Stephanie Prioste
There aren't many people in the insurance business that have the knowledge and understanding that Sean possesses. He has the ability to take an insurance policy, make it simple to understand, and take of details that others have left out. When it comes to insurance, Sean is the best.

Rob Riccio
Sean has been a valuable resource for over 10 years. When I remodeled my house, he helped to ensure that our improvements would be protected during and after construction Sean always makes a point to review my needs periodically which none of my other agents ever bothered to do.

Joe Grillo
If you, anyone you know, or any new clients are interested in speaking with a really awesome insurance agent, you should send them to mine. She rocks. I've been with her for 10 years now. Her name is Kelly Johnson at M3 Insurance.

Amir Littman, San Jose
"Jim and I were so impressed by your prompt customer service, complete and thorough assessment of our needs, and efficient processing of great policies. Both Kelly and Elizabeth were delightful to work with and we thank them in advance for being our 'go-to' people for future service. It is our pleasure to work with you and your outstanding team!"

Bette and Jim Felton