Common Insurance Terms Defined, commonly-used insurance terms

Common Insurance Terms Defined

Learn what these commonly used insurance terms mean.

Dealing with your insurance is hard enough as it is, and the added confusion of industry-specific jargon just makes it harder to understand your insurance.  If you’ve struggled to understand commonly used insurance terms in the past, you are certainly not alone.  Here are some of the most common 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 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.

Here are the definitions for some of the most commonly used insurance terms.  Do you have more questions regarding your insurance?  Turn to the professionals at Tri-Star Insurance/HUB International for assistance.  Contact us to get started today.