Defining Insurance

Posted on January 12th, 2016

Get lost when the insurance agent is talking to you? Do they use lots of technical words that you barely know what they mean? We wanted to better help you understand the jargon of Insurance Agents. Here are some need to know words and their definitions when looking for insurance:

Appraisal: This is the process in which you would have an appraiser or a house expert walking in and give you a general pricing of what it would cost to replace your house if a traumatic accident were to occur.

Claim: The process where you ask for reimbursement to repair your home after an accident would ensue.

Deductible: This is the amount of money the insurance will pay if you were to issue a claim over an incident.

Deprecation: The action to occur if you were neglecting the upkeep of your property. It is the estimation of the decrease of your home value from the wear and tear results of neglect.

Endorsement: An added document discussing the changes occurring to the original policy’s document.

Exclusion: What is not covered by the policy.

Group Policy: A policy sold to members through a group often times employment-based, where all members are under one master policy.

Lapse- The time existing between when you fails to pay or pays less than the signed amount.

Policy- The written contract about the premium between the two parties (Insured and Insurer).

Premium- The price charged by the Insurance company for the policy.

Underwritting- How the Insurer decides whether you are eligible for the service.

Learning these terms may benefit you as a buyer in picking out the proper company for you. Having an insurance agent will help you find the proper companies without worrying about them trying to convince you to just go with theirs, but if you know these terms, you will better understand what your policy entails.