Bridges Blog: Cracking the Code: Making sense of Insurance Jargon
Insurance talk can sometimes be like a foreign language. Full of terms that leave your head spinning, but don’t worry!! We’re here to help decode some of the most common jargon, so you can understand your coverage better and make smarter decisions.
Premium – This is what you pay to your insurance company for coverage. It could be monthly or yearly, depending on your plan and how you’ve set it up.
Excess – This is the amount you agree to pay towards a claim before your insurance kicks in. For example, if you have a $500 excess and make a claim for $2,000,you would pay $500, and your insurance would cover the remaining $1,500.
Exclusion – These are things that your insurance won’t cover. It’s important to understand what is excluded from your policy so you’re not caught off guard.
Claim – This is a request you make to your insurance company for payment for a covered loss or expense. For example, if your car is damaged in an accident, you would file a claim with your insurance company to cover the cost of repairs.
Policyholder – This is the person who owns the insurance policy and is entitled to its benefits. It’s usually the person who pays the premiums.
Underwriting – This is the process insurance companies use to evaluate the risk of insuring a property or asset. For example, for a building, Insurers consider factors such as the property’s location, construction materials, and use to determine the premium and policy terms.
Understanding these key terms can help you navigate your fire and general insurance policy with confidence. If you ever come across a term you don’t understand, don’t hesitate to reach out to the team for clarification. Being informed is the first step to ensuring you have the right coverage for your needs.
