Custom Insurance Agency Logo

Quote Insurance 



Please take advantage of these helpful educational resources.


Actual Cash Value - Cost of replacing damaged or destroyed property with comparable new property, minus depreciation and obsolescence. For example, a 10-year-old sofa will not be replaced at current full value because of a decade of depreciation.

Additional Insured - An individual or company, in addition to the insured, who is listed in the declarations.

Aggregate Limit - Usually refers to liability insurance and indicates the amount of coverage that the insured has under the contract for a specific period of time, usually the contract period, no matter how many separate accidents might occur.

Bodily Injury Liability - Legal liability for causing physical injury or death as a result of an accident for which you are liable.

Broker - Individual who represents the prospect, instead of the insurance company, in the insurance transaction.

Business Owners Policy - Package policy designed to provide broad property and liability coverage for small businesses.

Certificate of Insurance - Written form that verifies a policy has been written; provides a summary of the coverage provided under the policy.

Coinsurance - In property insurance, requires the policyholder to carry insurance equal to a specified percentage of the value of property to receive full payment on a loss.

Collision Insurance - Covers physical damage to the insured's automobile (other than that covered under comprehensive insurance) resulting from contact with another inanimate object.

If your vehicle is damaged in an accident and you have this kind of collision coverage.

Nature of Accident

You are MORE THAN 50% at fault (you hit a tree, a person, another vehicle, etc.)

You are 50% OR LESS at fault (you are rear-ended, side-swiped, etc.)

No Collision Coverage

Your insurance pays nothing. You are responsible for the cost of repairs to your car.

Your insurance pays nothing. You are responsible for the cost of repairs to your car.

Limited Collision Coverage

Your insurance pays nothing. You are responsible for the cost of repairs to your car.

Your insurance pays. If you have chosen a deductible, your insurance pays the cost of repairs over and above the deductible. You must pay the deductible.

Standard Collision Coverage

Your insurance pays, except the deductible that you have chosen. You must pay the deductible.

Your insurance pays. If you have chosen a deductible, your insurance pays the cost of repairs over and above the deductible. You must pay the deductible.

Broad Form Collision Coverage

Your insurance pays, except the deductible that you have chosen. You must pay the deductible.

Your insurance pays. You do not have to pay the deductible.


Comprehensive Insurance - Auto insurance coverage providing protection in the event of physical damage (other than collision) or theft of the insured car. For example, fire damage or a cracked windshield would be covered under the comprehensive section.

Condo Owner Insurance - Insurance that covers liability, personal belongings, injury, and property damage and bridges the gap between your condo association’s master policy and your property and personal liability protection.

Death Benefit - The limit of insurance or the amount of benefit that will be paid in the event of the death of a covered person.

Deductible - Amount of loss that the insured pays before the insurance kicks in.

Direct Writer - An insurer whose distribution mechanism is either the direct selling system or the exclusive agency system.

Directors and Officers Liability Insurance - Type of errors and omissions policy written for directors and officers of corporations who may be sued as individuals by stockholders.

Endorsement - Document attached to an insurance policy that changes the policy in some way.

Errors and Omissions Insurance - Professional liability coverage that protects the insured against liability for committing an error or omission in the performance of professional duties.

Flood Insurance - Specific insurance coverage against property loss from flooding.

Garagekeepers Insurance - Coverage that is part of the garage coverage form; covers a risk’s legal liability for customers’ autos in the care, custody, or control of the garage; at the insured’s option and for an additional premium, can also apply without regard to fault.

General Liability Insurance -Insurance designed to protect business owners and operators from a wide variety of liability exposures. Exposures could include liability arising from accidents resulting from the insured's premises or operations, products sold by the insured, operations completed by the insured, and contractual liability.

Homeowners Insurance (HO3) - Standard form of property insurance designed to protect an individual’s home against damages to the house itself, or to possessions in the home.

Indemnity - Restoration to the victim of a loss by payment, repair or replacement.

Insurable Interest - Interest in property such that loss or destruction of the property could cause a financial loss.

Liability Insurance - Insurance that pays and renders service on behalf of an insured for loss arising out of his responsibility, due to negligence, to others imposed by law or assumed by contract.

Michigan Catastrophic Claims Association - MCCA is a non-profit association that provides unlimited lifetime coverage for medical expenses which result from auto accidents through the no-fault law. The MCCA reimburses auto no-fault insurance companies for each Personal Injury Protection (PIP) medical claim paid in excess of $530,000.

Nonrenewal - Decision made by an insured or insurance company to not continue coverage for another policy period after the current policy period expires.

Personal Injury - Injury other than bodily injury arising out of such things as libel, slander, false arrest, wrongful entry, violation of privacy, and malicious prosecution.

Personal Injury Protection - Extension of car insurance that covers medical expenses and, in some cases, lost wages and other damages.

Premium - The price of insurance protection for a specified risk for a specified period of time.

Premium Earned - The amount of the premium that has been paid for in advance that has been "earned" by virtue of the fact that time has passed without claim. A three-year policy that has been paid in advance and is one year old would have only partly earned the premium.

Premium Unearned - That part of the premium applicable to the unexpired part of the policy period.

Property Damage Liability - A type of insurance coverage that pays for the policyholder’s monetary loss if they are found liable for damages to a third party.

Property Protection Insurance - Coverage that provides protection if you cause damage to inanimate objects or fixed properties. PPI also covers damage to other people’s properly parked vehicles.

Renewal - The automatic re-establishment of in-force status effected by the payment of another premium.

Renters Insurance - Insurance policy which provides most of the benefits of homeowners’ insurance; excluding coverage for the dwelling, or structure, with the exception of small alterations that a tenant makes to the structure.

Replacement Cost - The dollar amount needed to replace damaged personal property or dwelling property without deducting for depreciation but limited by the maximum dollar amount shown on the declarations page of the policy.

Risk Management - Management of the pure risks to which a company might be subject. It involves analyzing all exposures to the possibility of loss and determining how to handle these exposures through practices such as avoiding the risk, retaining the risk, reducing the risk, or transferring the risk, usually by insurance.

Self-Insurance - Alternative to purchasing insurance where a company or individual assumes the risk of paying for its losses and sets aside the necessary funds to pay for such losses

Surplus Lines Insurance - Agent licensed by the state to handle the placement of business with nonadmitted insurers.

Total Loss - A loss of sufficient size that it can be said no value is left. The complete destruction of the property. The term also is used to mean a loss requiring the maximum amount a policy will pay.

Umbrella Policy - Coverage for losses above the limit of an underlying policy or policies such as homeowners and auto insurance. While it applies to losses over the dollar amount in the underlying policies, terms of coverage are sometimes broader than those of underlying policies.

Underinsured Motorist Coverage - Auto Coverage that pays the difference between the insured’s actual damages for bodily injury and the amount of liability insurance carried by the at-fault driver; may be added to the personal or commercial auto policy by endorsement.

Underwriting - The process of selecting risks for insurance and classifying them according to their degrees of insurability so that the appropriate rates may be assigned. The process also includes rejection of those risks that do not qualify.

Uninsured Motorist Coverage - Endorsement to a personal automobile policy that covers an insured collision with a driver who does not have liability insurance.

Water/Sewer Back-up Coverage - Insurance that covers damage from water that enters a home through a backup in any line or drain that takes water to the sewer.

Workers’ Compensation Policy - Insurance that covers an employer’s obligations under workers’ compensation laws, which make the employer responsible for stated damages in the event of a work-related injury or illness; also it covers the insured’s liability for work-related injuries under common law.



Custom Insurance Agency

Main Office
6300 22 Mile Road Suite 4, Shelby Township, MI 48317
Toll-free Phone: 800-707-9520
Phone: 586-935-6110

Fax: 586-935-6114

© 2009 Custom Insurance. All Rights Reserved