Personal Insurance – Common Terms

Personal Insurance – Common Terms

When it comes to personal insurance common terms can have us confused or having trouble reading over our policies. We’ve pulled together a few of the most searched terms when it comes to personal insurance policies as a helpful guide.  Stay tuned for our update on business insurance common terms coming soon.

Claim

A demand by a person or business seeking to recover from an insurer for a loss that may be covered by an insurance policy. Or to make a claim on one’s policy.

Coverage

The specific protection provided by a policy against the results of the hazards insured against.

Deductible

A certain dollar amount beyond which insurance protection begins. The insured assumes the loss up to the deductible limit and the insurer pays the remainder, up to the policy limit.

Exclusions

The section of the policy contract that specifies the losses not protected by the policy. Many of our policies provide Comprehensive coverage – that means that any cause of loss that’s direct, sudden, and accidental is covered unless it is specifically excluded in the policy. This is broader coverage than a Named Peril contract, which provides coverage only for the causes of loss (perils) that are listed (named) in the policy.

Peril

The specific event causing a loss, such as fire, windstorm or accidental death.

Policy

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 periodic payment by the insured to the insurance company in exchange for insurance coverage. InterWeb Insurance offers a wide variety of discounts that can lower your premium, and we offer payment plans that can help you manage your premium payments in a way that works with your budget.

Replacement Cost

The cost of replacing or repairing property using new materials of like kind and quality without deduction for depreciation.

Risk

The hazard or chance of loss on any particular item of insurance. The term “risk” usually is used in a general way to designate the entire subject matter of insurance covered under a policy or upon which an application for insurance has been received. Risk is also sometimes used to designate a policyholder.

Quote

The rate at which an insurance company indicates its willingness to assume certain liabilities or provide coverage under an insurance policy. A quote is an approximation of the premium for a given policy.