Personal insurance common terms can have us confused. As well as having trouble reading over our policies. Furthermore, here is a list of the most searched terms. When it comes to personal insurance policies here is a helpful guide. Additionally, stay tuned for our update on business insurance common terms coming soon.
Claim
A claim is a demand by a person or business seeking to recover from an insurer. Explicitly for a loss that may be covered by an insurance policy. Also can be known as to make a claim on one’s policy.
Coverage
Coverage is the specific protection provided by a policy against the results of the hazards insured against.
Deductible
Deductible is a certain dollar amount beyond which insurance protection begins. Therefore, the insured assumes the loss up to the deductible limit. In effect the insurer pays the remainder, up to the policy limit.
Exclusions
Exclusions are the section of the policy contract that specifies the losses not protected by the policy. Many of our policies provide Comprehensive coverage. Meaning that any cause of loss that’s direct, sudden, and accidental. Secondly is covered unless it is specifically excluded in the policy. Lastly, this is broader coverage than a Named Peril contract. Which provides coverage only for the causes of loss that are listed in the policy.
Peril
Peril is the specific event causing a loss, such as fire, windstorm or accidental death.
Policy
Policy is the written contract effecting insurance, or the certificate thereof, by whatever named called, and including all clauses, riders, endorsements, and papers attached thereto and made a part thereof.
Premium
A premium is a periodic payment by the insured to the insurance company in exchange for insurance coverage. Thus, InterWeb Insurance offers a wide variety of discounts that can lower your premium. Comparatively, we offer payment plans that can help you manage your premium payments in a way that works with your budget.
Replacement Cost
Replacement cost is the cost of replacing or repairing property using new materials of like kind and quality without deduction for depreciation.
Risk
The risk is the hazard or chance of loss on any particular item of insurance. Hence, the term “risk” usually is used in a general way. It is to designate the entire subject matter of insurance covered under a policy or upon which an application for insurance has been received. Consequently, Risk is also sometimes used to designate a policyholder.
Quote
Quote is the rate at which an insurance company indicates its willingness to assume certain liabilities or provide coverage under an insurance policy. Finally, a quote is an approximation of the premium for a given policy.
