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Understanding Insurance
What is insurance? Simply stated, it’s protection against a financial
loss. There are many risks associated with day-to-day living — floods,
fire, auto accidents, lawsuits, illness — and insurance can help
you plan more confidently for the future with the assurance of knowing
that you are protected should the unexpected loss occur.
Erie Insurance offers a broad range of insurance products and coverage
for your auto, home, business and life needs. Through our independent
agents, The ERIE sells insurance policies that protect an insured against
financial hardship caused by losses such as accidents, fires, weather-related
disasters and death.
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General Types of Insurance Coverage |
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Auto: This insurance protects against financial
loss if you have an auto accident. General
types of coverage include property, liability
and medical. Uninsured/Underinsured motorist
coverage pays you and other vehicle passengers if
a driver who crashes into your car has no or
insufficient insurance.
Home: Homeowners insurance can cover fire, weather-related destruction
and other losses, depending on the coverage purchased. Two common types
of coverage options include:
- Actual cash, where the value of the property value is determined
by taking the value of what it would cost to replace the property
and then subtracting an amount for depreciation.
- Replacement cost, which doesn’t consider depreciation and instead
covers the cost of labor, materials and services necessary to replace
or repair building damages with materials of similar kind and quality.
Life: Life insurance provides protection against
adverse financial consequences of a death in the form of payment to
a beneficiary, whether in a lump sum or through installments.
There are two basic types of life insurance:
- Term insurance, which provides coverage for a specified period
of time
- Cash value insurance, which combines a death benefit with a cash value component.
Commercial: Commercial insurance protects business owners from certain business-related losses, including injured workers and equipment and building destruction. Own your own business or a member of a partnership? In most cases, you have the option of whether to cover yourself as an employee or not.
Contact an agent for more information about insurance coverage. An
overview of Erie Insurance’s Products & Services is available
on the Web site.
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