Whether you’re shopping for a new insurance plan or reviewing the policy you already have, it’s imperative you understand your coverage. However, this can be a challenge for those who are not familiar with the jargon used by insurance agents and carriers. To better understand your plan, the professionals at Reed Brothers Insurance encourage their Campbellsville, KY, clients to learn a few key terms and definitions. Here, they explain seven of the most common words you will stumble upon when reading or conversing about insurance.
7 Insurance Terms to Become Familiar With
Under the employment of insurance providers, adjusters work to assess reported losses and help policyholders come to a settlement with their claims.
2. Conversion Privilege
Conversion privilege allows policyholders to switch from one policy to another without experiencing a break in coverage.
A claim is a formal request submitted by an insured party. In general, it asks the insurance company to disburse compensation for a covered loss.
A deductible is the dollar amount a policyholder must pay out-of-pocket before their carrier covers the rest of a claim.
Endorsements—also known as riders—can be added to an insurance plan. They serve as extended coverage for specific items a standard policy neglects to cover.
The policyholder is the owner of the insurance policy. As the individual paying the premium, they are authorized to make changes to their agreement.
When underwriting, an insurance provider determines whether they will accept an application for coverage.
The more insurance terms you know, the easier it will be to ensure you, your family, and your assets are protected. Contact Reed Brothers Insurance at (270) 465-2717 to speak with a friendly representative today. You can also visit the company’s website to obtain a free quote.