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Insurance Coverage Explainers

Insurance shouldn't be confusing. We break down common insurance terms in plain English so you can make informed decisions about your coverage. As an independent agency, we believe educated customers make the best choices.

Premium

The amount you pay for your insurance policy, usually monthly or annually. Think of it as the price of your coverage. Premiums are based on risk factors like location, age, claims history, and credit score.

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Deductible

The amount you pay out-of-pocket before insurance kicks in on a claim. Example: With a $1,000 deductible on a $5,000 claim, you pay $1,000 and insurance pays $4,000. Higher deductibles = lower premiums.

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Liability Coverage

Pays for damage or injury you cause to others. In auto insurance, it covers the other driver's car and medical bills. In home insurance, it covers injuries on your property. Required by law in SC and GA.

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Dwelling Coverage

The part of homeowners insurance that covers your home's structure — walls, roof, foundation. Should equal 100% replacement cost (what it would cost to rebuild), NOT market value.

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Replacement Cost vs. ACV

Replacement Cost pays to replace items at today's prices. Actual Cash Value (ACV) deducts depreciation. Example: A 5-year-old TV worth $500 new gets $500 with replacement cost but only $200-$300 with ACV.

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Collision Coverage

Auto insurance that pays to repair/replace your car after an accident, regardless of who was at fault. Required by most lenders for financed vehicles. Subject to your deductible.

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Comprehensive Coverage

Auto insurance for non-collision damage: theft, vandalism, hail, flooding, falling objects, animal strikes. In the CSRA, deer collisions and hailstorms are common comprehensive claims.

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Uninsured Motorist

Covers you when hit by a driver with no insurance or not enough coverage. Required in SC, optional in GA. Critical because 12% of GA drivers are uninsured. Match this to your liability limits.

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BOP (Business Owners Policy)

A bundled policy combining general liability and commercial property insurance at a discount (15-20% cheaper than buying separately). Ideal for small to mid-sized businesses.

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Workers Compensation

Insurance that covers employee medical costs and lost wages for work-related injuries. Required by law in SC (4+ employees) and GA (3+ employees). Protects both employees and employers.

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PMI (Private Mortgage Insurance)

Required on conventional loans with less than 20% down payment. Protects the LENDER (not you) if you default. Costs $50-$250/month. Removable at 20% equity. Not needed with VA loans.

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Independent Agent

An insurance agent who represents multiple insurance companies (not just one). Independent agents compare quotes from many carriers to find you the best rate. Total Quality Insurance works with 30+ carriers.

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Still Have Questions?

Our team explains everything in plain English. No jargon, no pressure.