Insurance Coverages Explained

​Understanding your insurance policy shouldn't require a dictionary.

At M&M Insurance Agency LLC, we believe informed clients make better decisions. This guide explains many of the most common insurance coverages in simple terms so you can better understand what your policy does—and does not—cover.

​

Auto Insurance Coverages

Liability Coverage

Liability coverage helps pay for injuries or property damage you cause to others in an accident.

It may help pay for:

• Medical bills for injured parties

• Vehicle repairs for the other driver

• Property damage such as fences, buildings, or signs

• Legal expenses if you are sued

Liability coverage does not pay for damage to your own vehicle.

Collision Coverage

Collision coverage helps pay to repair or replace your vehicle if it is damaged in a collision, regardless of fault.

Examples include:

• Hitting another vehicle

• Backing into a pole

• Sliding into a guardrail

A deductible usually applies.

Comprehensive Coverage

Comprehensive coverage protects your vehicle from many non-collision losses.

Examples include:

• Theft

• Fire

• Vandalism

• Falling objects

• Wind damage

• Hail damage

• Animal collisions

A deductible typically applies.

Uninsured Motorist Coverage

This coverage may help if you are injured by a driver who has no insurance.

It can help cover medical expenses and related damages when the at-fault driver lacks adequate insurance.

Underinsured Motorist Coverage

This coverage may apply when another driver causes an accident but does not carry enough insurance to cover your injuries or damages.

Medical Payments Coverage

Medical Payments Coverage can help pay medical expenses for you and your passengers after an accident, regardless of fault.

Roadside Assistance

Roadside Assistance may help with:

• Towing

• Battery jump starts

• Lockout assistance

• Flat tire changes

• Fuel delivery

Coverage varies by policy.

Michigan Personal Injury Protection (PIP)

Michigan drivers have several Personal Injury Protection (PIP) options available.

PIP may help pay for:

• Medical expenses

• Lost wages

• Replacement services

• Survivor benefits

Available limits may include:

• Unlimited

• $500,000

• $250,000

• $250,000 with partial or full opt-out*

• $50,000 *

• OPT-OUT*

* Requires a Qualified Healthcare Plan.

We can help determine which option best fits your situation.

Homeowners Insurance Coverages

Dwelling Coverage

Dwelling coverage protects the structure of your home.

This includes:

• Walls

• Roof

• Foundation

• Attached structures

​

Coverage is generally based on the estimated cost to rebuild your home.

Other Structures Coverage

This coverage protects structures on your property that are not attached to your home.

Examples include:

• Detached garages

• Sheds

• Fences

• Pole buildings

Personal Property Coverage

Personal property coverage helps protect your belongings.

​

Examples include:

• Furniture

• Clothing

• Electronics

• Appliances

Coverage limits and special limitations may apply.

Loss of Use Coverage

If a covered loss makes your home uninhabitable, this coverage may help pay for:

• Temporary housing

• Additional living expenses

• Hotel costs

• Increased meal expenses

Personal Liability Coverage

Personal liability coverage helps protect you if someone is injured or their property is damaged and you are legally responsible.

Examples include:

• A guest slips on your sidewalk

• Your dog bites someone

• Property damage caused by a family member

Medical Payments to Others

This coverage may help pay minor medical expenses when someone is injured on your property, regardless of fault.

Renters Insurance Coverages

Renters insurance protects your personal belongings and provides liability protection.

While your landlord insures the building itself, your personal property is generally your responsibility.

Renters insurance can help cover:

• Personal belongings

• Liability claims

• Additional living expenses after a covered loss

Condo Insurance Coverages

Condo insurance helps fill gaps between your condo association's master policy and your personal responsibilities.

Coverage may include:

• Interior improvements

• Personal belongings

• Liability protection

• Loss assessments

Umbrella Insurance

Umbrella insurance provides an extra layer of liability protection above the limits of your auto, homeowners, and certain other policies.

Umbrella coverage may help protect:

• Savings accounts

• Investments

• Future earnings

• Other personal assets

Many claims today can exceed standard liability limits, making umbrella coverage an important consideration.

Business Insurance Coverages

General Liability Insurance

General liability coverage may help protect your business from claims involving:

• Bodily injury

• Property damage

• Personal injury claims

• Advertising injury claims

Commercial Property Insurance

Commercial property insurance helps protect business property such as:

• Buildings

• Equipment

• Inventory

• Furniture

• Computers

Business Owners Policy (BOP)

A Business Owners Policy combines several common business coverages into one convenient policy.

Typically includes:

• General Liability

• Commercial Property

• Business Income Coverage

Commercial Auto Insurance

Commercial auto insurance helps protect vehicles used for business purposes.

Coverage may include:

• Liability

• Physical damage

• Medical payments

• Uninsured motorist protection

Workers' Compensation Insurance

Workers' compensation coverage helps provide benefits to employees who suffer work-related injuries or illnesses.

Benefits may include:

• Medical expenses

• Lost wages

• Rehabilitation costs

Professional Liability Insurance

Professional Liability Insurance helps protect businesses that provide professional advice or services.

This coverage may help with claims involving:

• Errors

• Omissions

• Negligence allegation