Insurance Awareness Day, June 28
WB Payne is finally celebrating its favorite holiday of the year: June 28 is National Insurance Awareness Day; it's a good day to evaluate your insurance coverage and assess your risk.
That certainly calls for poem-making, party-throwing, and having a good 'ol time talking about what makes insurance so exciting! We believe that W.B. Payne means more within the insurance industry, and a part of that is making sure our customers know what we're talking about when we're talking about it! Insurance has its own terms which can be tough to understand sometimes. This beginner's guide to insurance terminology will teach you the must-haves to put in your dictionary, so celebrate along with us and make some sense of these words!
For the precise definitions, please refer to your insurance policy.
Claim A demand by a person or business seeking to recover from an insurer for a loss that may be covered by an insurance policy.
Coverage The specific protection provided by a policy against the results of the hazards insured against.
Deductible A certain dollar amount beyond which insurance protection begins. The insured assumes the loss up to the deductible limit and the insurer pays the remainder, up to the policy limit.
Exclusions The section of the policy contract that specifies the losses not protected by the policy. Many policies provide Comprehensive coverage – that means that any cause of loss that's direct, sudden and accidental is covered, unless it is specifically excluded in the policy. This is broader coverage than a Named Peril contract, which provides coverage only for the causes of loss (perils) that are listed (named) in the policy.
Peril The specific event causing a loss, such as fire, windstorm or accidental death.
Policy The written contract effecting insurance, or the certificate thereof, by whatever named called, and including all clauses, riders, endorsements, and papers attached thereto and made a part thereof.
Premium A periodic payment by the insured to the insurance company in exchange for insurance coverage. Foremost offers a wide variety of discounts that can lower your premium, and we offer payment plans that can help you manage your premium payments in a way that works with your budget.
Replacement Cost The cost of replacing or repairing property using new materials of like kind and quality without deduction for depreciation.
Risk The hazard or chance of loss on any particular item of insurance. The term "risk" usually is used in a general way to designate the entire subject matter of insurance covered under a policy or upon which an application for insurance has been received. Risk is also sometimes used to designate a policyholder.
Quote The rate at which an insurance company indicates its willingness to assume certain liabilities or provide coverage under an insurance policy. A quote is an approximation of the premium for a given policy.
Article courtesy of Foremost Insurance.