Skip to content

How to Speak “Insurance”

How to Speak “Insurance”

One of the many reasons you should have an independent insurance agent you can trust is that the industry sometimes uses terminology that can be a challenge to understand. If you’ve ever read through an auto, homeowners or life insurance policy, you already know they are not exactly “page-turners”.

Uncovering the secrets to speaking insurance is not unlike traveling to a foreign country. You don’t need to understand everything fully, but there are some keywords and phrases that can help you get through. Here are some of the more common, important insurance terms you should know.

Premium – This is what you pay for your coverage. A “premium” may be paid monthly, quarterly, semi-annually, or annually. They could have just called it “cost” or “price,” but someone thought premium sounded more exotic.

Deductible – The deductible is your financial share of an insurance claim. If a homeowners’ insurance claim is for $5,000 and you have a $500 deductible, you pay $500, and the insurance companies pay $4,500. Raising deductibles is a common way consumers can reduce premiums.

Beneficiary – This is the person who will receive the proceeds of a policy in the death of the insured. All life insurance policies need to have a beneficiary. More simply put, it is the person who gets the money when a life insurance policyholder dies.

Claim – This is the formal request to an insurance company, notifying them of a loss believed to be covered under a policy.

Liability Coverage – This protects the insured from financial loss due to injury or property claims from others after a covered incident.

Dec or Declarations Page – This is a page, usually the first sheet in the policy, that summarizes who the insured is, the name of the insurance company and the amount and limits of the various coverage detailed in the pages within the document. It is perhaps the most understandable of all the pages in any insurance policy.

It is common for people to be unsure of their coverage, especially if a policy has been owned for years. This is particularly true in homeowners policies which may not have been reviewed for long periods. We can help. If reviewing the doc page doesn’t provide enough details, please feel free to contact us. We’ll be glad to review your policy, perhaps offering money-saving options. Contact us for a no-cost insurance review today.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about
our blog writer?

Read more about KayLynn's background.

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

How Getting Married Changes Your Insurance Landscape

Marriage Changes Things…Including Your Insurance.

Is My Insurance Company Out to Screw Me?

Unsatisfactory Experiences Happen in Every Industry. Insurance is not Exempt.

Having Food Delivered to Your Home? There May Be Liability Risks

Having supper delivered to your door sure can be convenient, but it also can increase your exposure to a liability claim in a slip or fall. Here’s how to ensure you are covered.

It’s Time to Start Adulting: Getting Life Insurance When You Graduate

Getting life insurance when you graduate will help cover any car loans, credit card debt and even your student loans. Learn why life insurance is a good step in adulting.

Are “Acts of God” a Thing When it Comes to Insurance?

What are “acts of God” and will you be covered in the event of one? The answer is yes, no and maybe. Read our article on “acts of God” and how you may or may not be covered by these perils.

Preexisting Conditions and Insurance

Learn why pre-existing conditions play such an important role in the insurance industry. Know when and how you will, and will not, be covered.

Making Insurance Easier: What is a Dec Page?

Sure, insurance can be confusing. But did you know all you need to do is read the first page or two of your policy to understand what your coverage is?

How Pet Insurance Can Keep You From the Most Difficult of Decisions

Pet insurance can prevent you from having to make one of the most difficult decisions any pet owner would have to make. Here’s how.

Am I On the Right Path with Travel Insurance?

There are a variety of circumstances that can make purchasing travel insurance an excellent decision. What does travel insurance cover and when should you buy it when traveling?

Why a Lender Requires You to Carry Home or Auto Insurance

Why does a mortgage company or auto lender require you to carry insurance? It is to protect their own interests. Here is why insurance is required and what you can do to act in your own interest.

Leave a Comment





Translate »