Insurance is a complex subject, in part because there are so many different types. The industry also includes a lot of jargon that many people are unfamiliar with, resulting in more clarity issues. To help you better understand your insurance, review the definitions to these standard terms.

5 Common Insurance Terms to Know

1. Deductible

The deductible is the amount you need to pay toward a claim before your insurer begins contributing. The industry instituted this practice to ensure policyholders take precautions to mitigate loss and don't intentionally cause damage.

2. Adjuster

The claims adjuster is an employee of the insurer that’s hired to evaluate claims filed by policyholders. The adjuster tries to determine what caused the loss, whether it’s covered under your policy, how much it’ll cost, and how much the insurer will need to pay.

3. Peril

A peril is a particular cause of loss. For instance, many home insurance policies cover perils like fire, windstorms, vandalism, and theft.

4. Premium

The premium is the monthly or yearly amount a policyholder must pay for coverage. Premiums vary depending on the policyholder’s history, the limits of the policy, the size of the deductible, and the risk potential the insurer faces.

5. SR-22

If you’ve been caught driving without insurance, you’ll need to file for an SR-22 and pay for an insurer to certify with the state that you’re fully insured. This also applies to those who present a higher risk of driving without insurance, such as those convicted of reckless or intoxicated driving. After an SR-22 in enacted, the insurer must inform the state that the driver was not compliant with the law if the policy should lapse.

If you need help finding an insurance policy that’s right for you, Siemers Insurance Agency in Cincinnati, OH, can help. They’ve served individuals and businesses in Greater Cincinnati, Northern Kentucky, and Southeast Indiana for over 60 years. They specialize in business, home, motorcycle, and auto insurance, and can tailor a policy to your particular needs. Call (513) 469-8877 or visit their website to request an insurance quote.