Here are some of the most commonly used insurance terms defined for your convenience.
Your insurance is difficult enough to understand without the added confusion of unfamiliar industry jargon. If you’ve struggled with unfamiliar insurance terms in the past, you’re not alone. To help you set things straight, here are the definitions of some of the most common insurance terms.
Additional Insured – Any person or party, aside from the policyholder, who is added to the policy so that they will receive coverage under the policy.
Claim – A request by the policyholder for insurance compensation. For instance, if you got into a car accident, you would file a claim requesting your auto insurance to kick in.
Conditions – The portion(s) of an insurance policy that explains the responsibilities of the insured and the insurance provider.
Deductible – The amount the policyholder agrees to pay before insurance coverage kicks in for an insured loss. For instance, if you assume a $500 deductible on your homeowners insurance and your home was damaged, you would have to pay this amount before your insurance coverage kicked in.
Endorsement – Also known as a “policy rider,” this is any change made to an existing policy that alters, deletes, or adds coverage.
Exclusion – A provision in a policy that excludes or limits certain coverages.
Named Insured – The person or entity specifically covered by an insurance policy. This person is also referred to as the policyholder.
Named Perils – Also known as specified perils, these are covered hazards that are specifically listed in an insurance policy.
Premium – The amount of money an insurance provider charges in exchange for providing coverage.
Use these insurance term definitions to help you make more sense of your insurance. Need more assistance with your insurance? Don’t hesitate to contact us at Stromsoe Insurance Agency. Located in Murrieta, California, our dedicated team is ready to assist you with all your coverage needs.