Learn the meaning behind these commonly used insurance terms.
Dealing with your insurance is hard enough as it is, but not understanding the industry jargon can make it even more difficult to make sense of your coverage. If you’ve been confused about insurance terms before, you’re not alone. Here are some of the most commonly used terms and what they actually mean.
- Deductible
In insurance, a deductible refers to the amount of money you agree to pay for an insured loss. For instance, if your home was damaged during a storm and you had a deductible of $500, then you would be responsible for paying this amount before your insurance coverage kicked in. Normally, the higher your deductible, the lower your premiums will be.
- Endorsement
An endorsement, also known as a policy rider, refers to a change or addition made to an existing policy. An endorsement can be used to add, remove, or otherwise alter your coverage.
- Umbrella Coverage
An umbrella policy provides additional liability coverage that extends beyond the limits offered by your existing policies. For example, if your homeowners insurance offers liability coverage up to a certain dollar limit, then your personal umbrella will kick in if you file a claim that exceeds the limits of your policy.
Use these definitions to help you better understand your insurance. Do you still have questions regarding your insurance coverage? Don’t hesitate to contact us at Weaver & Associates in Arcadia, California. Our dedicated professionals are ready to assist you with all your insurance needs.
