STA Insurance University
All of the information provided in this section has been obtained from the North Carolina Department of Insurance website and the Consumer Guides they provide.
- Automobile Insurance
- Homeowners Insurance
- Business Insurance
- Surplus Lines Insurance
- Glossary of Terms
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Automobile insurance is used to protect you against expenses you may not otherwise be able to afford if you are involved in an automobile accident. The automobile policy is a combination of several individual types of coverages. (Review your policy or contact your agent to identify the limitations and exclusions for the following coverages.)
A homeowners insurance policy is a multi-peril policy, which means it combines property and casualty coverages in the same policy. A multi-peril policy offers numerous advantages to consumers as it conveniently packages a range of coverages under one policy and is normally cheaper than if all the coverages were purchased individually. Homeowners insurance is sold as a personal package policy designed to cover a broad spectrum of perils associated with owning or renting a home. A peril is an event that causes damage to property; two examples are fire and theft. Although insurance on your home is not required by North Carolina law, if your home is mortgaged your lender may require the purchase of insurance on your home. Additionally, if you are a renter your landlord may suggest that you purchase insurance to cover your personal property. Homeowners insurance also protects you against liability for accidents that injure other people or damage their property. The policy covers medical expenses for persons accidentally injured on your property. The policy does not protect you against losses from floods, earthquakes, mudslides, mudflows or landslides. Contact your agent to discuss your options for obtaining coverage for these losses.
The homeowners policy contains two sections. Section I provides property coverages (A, B, C and D) while Section II provides liability coverages (E and F). A brief description of the individual coverages follow:
- Coverage A – Dwelling
- Coverage B – Other Structures
- Coverage C – Personal Property
- Coverage D – Loss of Use
- Coverage E – Personal Liability
- Coverage F – Medical Payments to Others
Business Auto Virtually every business today needs a vehicle of some type: private passenger, van, bus or tractor trailer. A business needs to insure against damage to their own vehicles, injuries to third parties, damage to cargo and injuries to persons riding in their vehicles. The minimum limits are 30/60/25 and certain commercial auto limits are much higher. Rating of commercial auto policies is different from your personal auto. There is no standardization of policies, rates or rating procedures. Most insurers will consider the driving history of all parties with regard to traffic safety and obeying traffic laws. Other factors include condition of vehicles, driver experience, driver training, driver supervision, hazards of the route, loading and unloading, motor vehicle records, use of non-owned vehicles and vehicle security.
Surplus Lines Insurance
“Surplus lines” insurance is coverage that is unavailable through admitted carriers but can legally be placed with eligible non-admitted companies. These surplus lines companies may be located in other states or countries. Your agent may work with a licensed surplus lines broker in securing your policy. Only licensed surplus lines brokers can place coverage with these insurers. A broker must pass a special examination to qualify for a surplus lines license.
Glossary of Terms
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