Here are the definitions of some of the most commonly-used insurance terms.
Trying to understand your insurance is hard enough as it is, but the added confusion of insurance industry jargon can make thing even more difficult to decipher. If you’ve struggled with insurance terminology in the past, you are not alone. Here are some of the commonly-used insurance terms defined for your benefit.
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 compensation of losses cover by insurance.
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 or named 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 to help you better understand your insurance. Do you still have questions regarding your coverage? Then don’t hesitate to contact us at Scavone Insurance in White Plains, New York. Our dedicated team is ready to assist you with all your insurance needs.