<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1148227851863248&amp;ev=PageView&amp;noscript=1">

Insurance Glossary

Definitions of common insurance terms

Each industry has its distinct terminology – and insurance is no different. Below are some common insurance terms and definitions that are used in the insurance business. Please note some of the coverages/terms listed on this page pertain only to West Bend. To learn more, talk to a West Bend appointed independent insurance agent

A

All Risk

This used to mean a policy that covered all types of physical damage, but since "all" could be misunderstood, insurers now say they cover "risks of physical loss" instead of using this term.

Auto Loan Lease

Also known as Gap Insurance. If you have collision and comprehensive coverage, this option helps cover the difference between what you owe on a car loan or lease and what the car is actually worth if it's totaled.

B

Bodily Inury

If someone gets hurt, sick, or dies because of an accident you’re responsible for, this coverage helps pay for medical bills, lost wages, and other costs.

C

Comprehensive (other than collision)

Helps pay for damage to your car from things like theft, vandalism, fire, storms, or falling objects. It’s optional but required if you’re leasing or financing a car.

Collision

Pays for repairs or replacement if your car is damaged in an accident with another vehicle or object, no matter who’s at fault. It’s optional but often required for financed or leased cars.

D

Damage to your vehicle

Covers repairs or replacement if your car is damaged in a crash, stolen, vandalized, or hit by something like a falling tree.

Damage you cause to others

If you're at fault in an accident, this helps pay for injuries or property damage to others so you don’t have to pay out of pocket.

G

Guaranteed Replacement Cost

If your home is damaged or destroyed, this coverage ensures it's fully rebuilt—even if the cost is more than what your policy originally covered. You may need an appraisal to qualify.

L

Liability

Protects you financially if you're responsible for injuring someone or damaging their property in a car accident. It includes bodily injury and property damage coverage.

Liability and Property Loss Assessment

If your homeowners' association has costs that aren’t covered by its insurance, this coverage helps pay your share of those expenses.

M

Medical Expenses

Covers medical or funeral costs for you and your passengers after a car accident, no matter who was at fault. It can also cover injuries if you or family members are hit as pedestrians.

P

Personal Injury

Covers legal costs if you’re accused of things like false arrest, invasion of privacy, or defamation (such as libel or slander).

Personal Liability

If you're legally responsible for someone else's injury or property damage (like if a guest slips on your property), this coverage helps pay for medical bills, legal fees, and settlements.

Pet AID

West Bend’s homeowners policy offers help with vet bills if your dog or cat gets hurt in an accident.

Property Coverage

Pays to repair or rebuild your home and other structures on your property if they’re damaged. Your personal belongings are also covered, even if they’re stolen or damaged away from home.

Property Damage

Covers damage or destruction of someone else’s property that you're responsible for.

R

Rental Vehicle (other than Transportation Expense coverage)

Covers the full cost of a rental car while you're on vacation, with no deductible, as long as it’s within your policy’s coverage area.

Roadside Assistance

If you buy this coverage, you’ll get 24/7 help with things like towing, flat tires, dead batteries, or lockouts anywhere in the U.S. or Canada.

S

Scheduled Personal Property

Lets you add extra coverage for valuables like jewelry, antiques, or collectibles, making sure they’re insured for their full appraised value.

Special Personal Property

Covers your belongings for almost any type of damage, except what’s specifically excluded in your policy. This offers more protection than standard coverage.

T

Transportation Expense

Covers the cost of a rental car while yours is being repaired after an accident. You can increase the coverage amount if needed.

U

Uninsured Motorist

If you’re in an accident with a driver who doesn’t have insurance (or a hit-and-run driver), this coverage helps pay for your medical bills and other damages.

Underinsured Motorist

If you’re hit by a driver whose insurance isn’t enough to cover your medical expenses or damages, this coverage helps pay the rest, up to your policy limit.

Underground Service Line

Pays to repair or replace underground utility lines on your property, like water pipes, gas lines, or electrical wiring, if they’re damaged.

W

Water Back-up and Sump Overflow

Covers damage from water backing up through drains, sewers, or a sump pump failure. It helps pay for repairs, cleanup, and mold removal.