Insurance 101: 10 Common Terms Simplified
Insurance can sometimes be tough to understand – it has its own terminology and legal jargon that, unless you’re in the insurance industry, you likely haven’t learned before. In honor of Insurance Awareness Day on June 28, we want to make sure our clients know what we’re talking about when we talk to them. Here is a list of 10 essential insurance terms defined to help you better understand your insurance policies.
- Claim – a formal request by a person or business for coverage or compensation for a loss covered by an insurance policy.
- Coverage – a guarantee or protection provided under an insurance policy for specific losses.
- Deductible - a specified dollar amount beyond which insurance protection begins. The insured is responsible for the loss up to the deductible limit and the insurance pays the remainder, up to the policy limit.
- Exclusions – a cause of loss that's specifically excluded in the insurance policy.
- Peril – the incident that causes a loss, such as fire, windstorm, or injury.
- Policy – official contract that makes insurance effective.
- Premium – a periodic payment to the insurance company in exchange for insurance coverage.
- Replacement Cost – the cost to replace or repair damaged property using new materials of similar kind and quality.
- Risk – the chance of loss of any item of insurance.
- Quote – an approximation of the premium for an insurance policy.
SIS Insurance is here to help.
Whether you have a question about your coverage or need a new policy, we’re here to help! SIS Insurance takes the time to provide professional, expert advice on the coverage and products that best fit your needs. Contact us today!