Whether you’re trying to make a claim or are shopping for a new insurance policy, it pays to know common insurance terms and definitions. Understanding insurance terminology helps you communicate with agents more easily and ensures you understand your options.
Insurance doesn’t have to be a different language. Here is the commonly used insurance lingo, explained:
- Claim: A claim is your request for compensation or coverage after a covered situation occurs. Let’s say your home sustains damage in a fire. If you call your insurer and ask them to cover the fire damage, that’s a claim.
- Deductibles: Deductibles are what you pay before your insurer pays the rest. For example, say you file a claim after a car accident that caused $1,000 in damage. If your deductible is $500, you pay that amount and the insurer pays the other $500, assuming the event which caused the damage is covered by your policy. In health insurance coverage, a similar idea is the copay, which refers to what you pay for doctor’s visits and services.
- Premium: The premium is the payment you make to the insurance company to get coverage. Usually, this payment is made once a month. How much you pay for premiums will depend on the type of policy you have, how risky the insurance company thinks you are and any deductibles you agree to pay. If you’re having trouble affording your premiums, get a quote from Strock Insurance or contact us to find out more about ways you can save.
- Liability coverage: This coverage protects you if anyone sues you because they were injured or suffered property damage because of your actions or while they were on your property.
- Dec page: Known as the declaration page, this is a single sheet that lists the most important facts about an insurance policy, including the policy number, the contact information of the policyholder, the contact information of the insurer, limits, deductibles, the dates of coverage, how to file a claim, premiums and more. It’s crucial that this information be completely accurate and understood by the policyholder.
- COI: The Certificate of Insurance has all the same information as a dec page but can be requested by someone besides the policyholder. A COI also contains the name of the person or company asking for the COI and any specific information the person or company needs.
- Insured: This refers to the person covered by the policy, which can include the individual paying the premiums (usually the policyholder or the person who has entered into an agreement with an insurance company) as well as dependents and others named in the policy.
Insurance in Plain English
Are you looking for an insurance policy that’s right for you, explained in terms you can understand? If you’re in central Pennsylvania and need help finding the right policy, get a quote from Strock Insurance, the professionals who have been helping Harrisburg, Camp Hill and other local area residents since 1983. You can also contact us to find out more about your insurance options.