Many people struggle to manage and understand their various insurance policies, and the added confusion of industry specific jargon just makes things more confusing. If you have been confused regarding commonly-used insurance terms in the past, then you are certainly not alone. Here are some definitions that might help you better understand your insurance.
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, then 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, then 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 definitions of commonly-used insurance terms to make more sense of your insurance. Looking for more assistance with your insurance needs? Then contact the experts at Mike Leonard Insurance Agency. Our dedicated team is eager to find you the right coverage from one of our many carriers including: Kemper, MetLife, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.