If you are thinking about insuring your property, you need to know what essential insurance terms mean. We understood the importance of this task and its difficulty. Therefore, in order to simplify the search for you, we have come up with the idea to provide you with a text such as this one. While this is not going to be a textbook on the subject of insurance, it is going to help you get an idea of what you need to pay attention to when you are signing an insurance policy or even an insurance claim. Therefore, bear with us and learn with the best. Should you require help filing your insurance form at any point in future, give us a call. We leave you with the insurance terminology, for now.
Why should you be interested in insurance terms?
In order to competently maneuver the insurance waters, you will need to learn the following terms. Since you will be signing a contract that is supposed to protect you in case anything unexpected happens, you will want to be sure that you are complying with the terms of that contract. Therefore, after you have learned essential insurance terms, go ahead and dive into the paperwork.
Essential insurance terms
Following are the essential insurance terms that we are going to try to bring closer to you:
- Actual cash value
- Public Adjuster
- Dwelling policy
- Inflation protection
- Market value
- Rider or an endorsement
Actual Cash Value is the first on our list of essential insurance terms that you should learn
When a disaster strikes some of your items are going to get damaged and need replacement. For example, in the case of fire damage, you might need to replace your roof. Now, the cost of the new roof is not going to be the same as the value of the roof that you had on your house. Obviously, due to depreciation, the value of your roof is going to be less than the cost of new. Actual cash value is the value of your roof prior to the damage.
The public adjuster is your friend among essential insurance terms
In the case that you might need to file an insurance claim, you should have at least one friendly face by your side. For example, should you suffer hurricane damage, you should get help with filing your insurance claim. That friendly face is going to be your public insurance adjuster South Florida. The role of the public adjuster is to assess the damage and liability of your insurance company. This is called appraisal. Therefore, you need to have a good one.
Catastrophe as seen in essential insurance terms
Now, you must be wondering why would we even presume that you do not know what a catastrophe is. Yes, it is a widespread word that receives a different meaning among essential insurance terms.
In this sense, a catastrophe is a single or a series of related incidents that lead to a loss of property of more than 25 million dollars. Catastrophes are provoked by, but not limited to, hurricane damage, flooding, wildfire, etc. Each insurance company has a calculation which uses to predict the possibility of a catastrophe striking your area. The price of insurance in the case of a catastrophe is usually included in the regular insurance price.
Coverage represents the amount up to which your insurance will cover for your expenses.
The amount of money that the insurance holder must pay for a claimed insurance policy. Now, depending on your contract, the deductible amount may be smaller or larger.
This type of insurance policy will cover for the structural and property damage, but does not include liability clause.
A floater represents the insurance for the items that you need to move often. If you have a mobile home, you should check whether your insurance policy applies to it.
Inflation protection enables the policyholder’s insurance limits to automatically increase due to for the costs needed to repair his property.
Lapse indicates a missed or insufficient increment payment on behalf of the policyholder. Fail to pay your dues on time and your insurer may cancel your policy.
Liability refers to the policyholder’s responsibility for the damage caused.
Market value as one of the most important essential insurance terms signifies the value of a property on today’s market.
Peril designates the cause of the damage.
Premium is your insurance policy’s incremental cost. Simply put, this represents the amount of money that you will pay on a monthly basis (can be annual, every six months, etc.) while your policy is in full effect. Fail to pay the premium and you will lapse.
Rider or an endorsement
Rider, as often known as an endorsement, has a role to modify to original coverage offered by the insurance policy.
An underwriter is a person who is in charge of the first step of an insurance application review. It is up this person to make sure that all filed documents are in order before he hands them over to the underwriting process.
Underwriting is an internal process within the insurance company that aims to clarify whether a person is eligible to receive insurance. It is during this process that the decision whether to grant insurance to one particular person will be made.