Liability Insurance – Most states require a minimum amount of Liability Insurance to cover bodily injury and property damage that you may cause to other people in an at-fault accident. Liability coverage does not cover you or your motorcycle.
Collision Coverage – Covers damage to your motorcycle from a collision, regardless of fault, and usually covers the resale value of the motorcycle before the loss occurred.
Comprehensive Coverage – Pays for damage caused by an event other than a collision. This includes fire, theft or vandalism. Most comprehensive and collision coverage pays to replace only the factory standard parts on your motorcycle. Additional or optional equipment coverage is needed for accessories such as chrome parts, sidecars or custom paint jobs.
Uninsured/Underinsured Motorist Coverage – Covers damage to you and your property caused by a driver or rider who does not have insurance or does not have enough insurance to cover your damages. This coverage typically pays for medical treatment, lost wages and damage to your motorcycle.
Umbrella policy is liability coverage over and above the coverage afforded by the regular/underlying policy, and is sold in increments of one million dollars. The term “umbrella” is used because it covers liability claims from all policies underneath it, such as auto insurance and homeowners insurance policies. For example, if the insured carries an auto insurance policy with liability limits of $500,000 and a homeowners insurance policy with a limit of $300,000, then with a million dollar umbrella, the insured’s limits become in effect, $1,500,000 on an auto liability claim and $1,300,000 on a homeowners liability claim.
Umbrella insurance provides broad insurance beyond traditional home and auto. It provides additional liability coverage above the limits of homeowner’s, auto, and boat insurance policies. It can also provide coverage for claims that may be excluded by the primary policies. These may include, but are not limited to:
Home insurers do not provide flood insurance coverage due to the hazard of flood typically being confined to a few areas. As a result, it is an unacceptable risk due to the inability to spread the risk on a wide enough population to absorb the potential catastrophic nature of the hazard. In response to this, the federal government created the National Flood Insurance Program in 1968.
The National Association of Insurance Commissioners (NAIC) found that 33 percent of U.S. heads of household still hold the false belief that flood damage is covered by a standard homeowner’s policy. FEMA states approximately 50% of low flood zone risk borrowers think they are ineligible and cannot buy flood insurance. Anyone can buy flood insurance as long as their community participates in the NFIP, even renters. Flood insurance does not go into effect until 30 days after the policy is purchased. Flooding is defined by the National Flood Insurance Program as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or two or more properties (at least one of which is your property) from: Overflow of inland waters, unusual and rapid accumulation or runoff of surface waters from ANY SOURCE, and mudflows.