Premium
The amount you pay to keep an insurance policy active.
Insurance education
Insurance 101: understand the protection behind your policy
A practical guide to the coverage conversations that can help protect your home, business, vehicles, and the people who count on you.
Being insured does not always mean being fully protected. Your coverage limits may not be enough after a major loss.
Talk with an agentInsurance basics
Start with the building blocks
Understanding a few core terms can make coverage conversations easier.
Deductible
The amount you may pay out of pocket before insurance contributes to a covered loss.
Limit
The maximum amount available under a policy for a covered claim, subject to policy terms.
Types of coverage
Health insurance
Helps with eligible medical costs, subject to plan terms.
Home and property insurance
Helps protect a home, belongings, and liability exposures.
Auto insurance
Helps address covered vehicle, liability, and injury-related losses.
Life insurance
Can provide a death benefit to named beneficiaries.
Renters insurance
Can help protect belongings, liability, and temporary living expenses.
Business insurance
Helps address property, liability, income, and operational risks.
Homeowners coverage: protect more than the structure
A homeowners policy can bring together several types of protection. The right combination depends on your home, belongings, location, and the risks you want to plan for.
$400,000 dwelling example
Dwelling coverage
Helps repair or rebuild the structure of your home after a covered loss. The amount should reflect realistic rebuilding costs, not only the home’s purchase price.
50%–70%
(of dwelling coverage)
$200,000–$280,000 example
Personal property coverage
Helps protect belongings such as furniture, clothing, electronics, and household items when they are damaged or stolen in a covered event.
Personal liability coverage
May help with covered claims if someone is injured or their property is damaged and you are legally responsible. It can also help with certain legal defense costs.
20%
(of dwelling coverage)
$80,000 example
Additional living expenses
May help with eligible temporary living costs if a covered loss makes your home uninhabitable while repairs are completed.
10%
$40,000 example
Other structures coverage
Helps protect eligible detached structures on your property, such as a fence, shed, or detached garage.
Medical payments coverage
May help pay eligible medical expenses when someone is injured on your property, regardless of fault, subject to policy terms.
Renters insurance: protect what is yours
Renters insurance can help protect your personal belongings, personal liability, and eligible temporary living expenses when a covered loss affects the place you rent. Your landlord’s policy generally protects the building, not your belongings or personal liability.
Personal belongings
May help repair or replace eligible belongings such as furniture, clothing, electronics, and household items after a covered loss. Review policy limits and special limits for higher-value items.
Personal liability
May help with covered claims if someone is injured or their property is damaged and you are legally responsible, subject to policy terms and limits.
Temporary living expenses
May help with eligible temporary housing costs if a covered loss makes your rented residence uninhabitable while repairs are completed.
What to review
Confirm your limits, deductible, liability coverage, valuable items, and whether you need additional coverage for specific belongings. A home inventory with photos and receipts can make a claim easier.
Business coverage: build protection around how you operate
Businesses face different risks based on their property, people, contracts, equipment, vehicles, and services. A coverage review can help identify the questions worth asking.
Commercial property
Helps protect eligible buildings, inventory, furniture, tools, equipment, and other property your business depends on.
General liability
May help address covered claims for bodily injury, property damage, or personal and advertising injury connected to your operations.
Business income
May help replace lost income and support continuing expenses when a covered loss temporarily interrupts operations.
Professional and commercial auto considerations
Service businesses may need to discuss professional liability, while businesses that use vehicles should review commercial auto needs and who drives them.
Auto coverage: protection for safe travels
Auto liability coverage is designed to help pay covered injuries or property damage you cause to others in an accident. Your policy limits are the maximum amounts available under the policy for a covered claim.
Why higher limits may matter
Medical bills, lost wages, vehicle repairs, and legal costs can add up quickly after a serious accident. Limits that are too low can leave you personally responsible for costs above the coverage available under your policy.
Review the full picture
A thoughtful review considers your vehicles, drivers, assets, daily travel, and comfort with risk. An agent can explain how each limit works and which options may fit your situation.
Uninsured and underinsured motorist coverage
May help protect you and your passengers if you are hit by a driver with no insurance or limits that are not enough for a covered loss.
Rental vehicles and belongings
Ask how your policy may respond to rental vehicles while traveling and personal belongings damaged or stolen from a vehicle. Coverage depends on the policy and circumstances.
Life insurance: the biggest expense is waiting
Life insurance can help the people you love manage financial responsibilities after a loss. The right amount depends on your household income, debts, goals, and the people who rely on you.
Term life insurance
Term life insurance provides coverage for a set period, such as 10, 20, or 30 years. It is often chosen to help protect major temporary needs, including income replacement during child-raising years, a mortgage, or education expenses. If the insured person dies during the term while the policy is in force, the death benefit is paid to the named beneficiaries, subject to the policy terms.
Whole life insurance
Whole life insurance is a type of permanent life insurance designed to provide lifetime coverage as long as required premiums are paid. It generally includes a death benefit and may build cash value over time. Premiums, cash value, loans, withdrawals, and benefits depend on the policy, so review the costs and features carefully with an agent.
Reasons not to wait
Waiting to apply for coverage can mean higher premiums, fewer options, or more difficulty qualifying if your age, health, or financial situation changes. Putting coverage in place while you are healthy can help protect your family before an unexpected change occurs.
Mortgage and debt protection
Life insurance can help beneficiaries keep up with mortgage payments, pay down debt, cover final expenses, or preserve financial flexibility after a loss. It does not automatically replace mortgage protection insurance; a life insurance policy can give beneficiaries more freedom to decide how to use the benefit based on their needs.
Income replacement and family goals
Consider the income your household would need to replace, child care, education, everyday expenses, and long-term goals. An agent can help you review a coverage amount that reflects both your current and future responsibilities.
Homeowners coverage
Erie Guaranteed Replacement Cost: protection designed for rebuilding costs
A home’s market value and rebuilding cost are not the same. After a widespread loss, labor, materials, permits, and contractor demand can affect what it costs to rebuild. Guaranteed Replacement Cost is designed to help address that difference when a covered loss damages or destroys your home.
What it is designed to do
When included with an eligible Erie homeowners policy, Guaranteed Replacement Cost is designed to help pay the full cost to repair or replace the covered dwelling after a covered loss, even if that cost exceeds the dwelling limit shown on the policy. Policy terms, conditions, and eligibility apply.
Why the dwelling limit still matters
The dwelling limit is the starting point for your protection. It should be reviewed regularly using accurate information about your home’s size, features, improvements, and local rebuilding costs. Guaranteed Replacement Cost does not replace keeping that estimate current.
When rebuilding costs can change
Costs can rise after storms, fires, or other events that affect many homes at once. Material shortages, labor demand, code requirements, and changes to your home can also increase rebuilding costs.
What to review with your agent
Tell us about renovations, additions, finished basements, roof updates, custom features, detached structures, and major purchases. We can help you review the dwelling amount, available endorsements, deductibles, and details that may affect your protection.
Start with a clear conversation.
Insurance is personal. We can help you review the coverage questions that matter most and explain your options in plain language.
Contact A.M.I.This educational information is not legal advice and is not a substitute for advice from a qualified attorney. Insurance coverage, eligibility, limits, and policy terms vary; please review your policy and speak with a licensed insurance agent or legal professional about your specific situation.