Translating the Jargon

Like most professionals, insurance agents and support personnel often seem to be speaking their own language. Here is a brief translation of some of the most commonly-used terms:

• Deductible: The amount you agree to pay on a loss
• No-Fault: An insurance system in which your own insurance coverage pays for your injuries, regardless of who caused the accident.
• Premium: The price of the insurance policy
• Indemnify: To provide financial compensation for losses
• Rate: The amount you pay as a premium
• Coverage: The scope of the protection provided in your insurance contract, as well as any of the several risks covered by a policy
• Risk: The chance of loss. This term is also used by insurance companies to refer to the policyholder or to property covered by the policy.
• Underwriting: The process of determining risk and in what amounts and on what terms the insurance company will accept the risk.
• Conditions/Exclusions: Conditions establish the circumstances which must exist or be met by either you or your insurance company in various situations, such as reporting a claim. Exclusions identify situations in which the policy will NOT provide coverage. For example, your automobile insurance won’t provide payment for injury or damage you cause intentionally.
  

If you have any questions about your homeowners policy, call your agent at Avery Insurance at 569-2515, or 800-759-7579.