Insurance Terms and Quotes, All You Need to Know

When shopping for insurance for your home insurance for the first time sometimes you wish it was written in English. Your eyes strain reading all those insurance terms and quotes that all sounds Greek to you. Well, you don’t have to be a licensed insurance broker to understand the insurance terms and quotes on your policy. All you have to know is their language and learning it is easier than learning a new foreign language.

Here is the top list of insurance terms and quotes that you should know when getting an insurance policy. You don’t have to learn everything but you can add new insurance terms and quotes along the way in your dictionary. Here are the very basic terms to get you started.

1. Appraisal – when an authorized person evaluates the property value or even damaged property value of an insurance policy property claim.
Note: emphasis on property value or damaged property value.

2. Cancellation – is a term used when an insurance policy within the policy term. Insurance can only be cancelled for reasons stated in the policy and as permitted by the law of the state where the policy holder resides.

Note: emphasis on reasons stated in the policy and as permitted by state law. Thus, you must thoroughly have read and understood your policy before you cancel your insurance.

3. Claim – an insured request to reimburse for loss of property under the guidelines of the insurance policy.

Note: emphasis on guided by the insurance policy. Not all claims may be valid based on coverage.

4. Deductible – the amount that the insured has to pay out from his own pocket for a valid claim.

Note: emphasis on a valid claim this means not all valid claims are paid by the insurance company.

5. Depreciation – an estimate decrease on the property value due to aging, wear and tear and or other related factors.

Note: emphasis on related factors. Age is not only the basis of depreciation.

6. Exclusions – are properties, persons or any circumstances that are not covered in the policy.
Note: emphasis on properties, persons and circumstances.

7. Inflation Protection – Automatically adjusts your home insurance policy limits to account for increases in costs to repair property.

Note: emphasis on automatic, adjusts and costs to repair property. This is a smart add on.

8. Lapse- happens when policyholder does not pay the agreed amount or pays nothing at all for the home insurance policy. Lapse may lead to eventual termination of the policy.

Note: emphasis on pays nothing at all inform your insurance company if you are unable to pay your premium to work on an arrangement.

9. Liability Coverage – pertains to losses that an insured policy holder is legally liable but can be covered due to negligence or other circumstances in a home insurance policy.

Note: emphasis on legally liable.

10. Market Value – the current value of your home plus the land.

Note: emphasis on current value.

11. Nonrenew Insurance – when an insurance company decides not to renew the insurance policy when the term ends. Insurance companies should inform policyholders beforehand for nonrenewing coverage.

12. Peril – exposure to or cause of possible injuries and or destroyed or lost of property.
Note: emphasis on possible.

13. Personal Property – any tangible property except for land either temporary or movable such jewelries, furniture, electronics etc.

Note: emphasis on tangible (can be seen with eyes) and movable.

14. Real or Tangible Property – land, as well as anything permanently attached to, embedded in or growing on it.

Note: emphasis on embedded, attached and growing.

15. Replacement Cost Coverage (on Dwelling) – covers or pays for the cost to replace damaged property or structures without factoring in deductions for depreciation, but payment is limited to a maximum dollar amount.

Note: emphasis on limited dollar amount.

16. Replacement Cost Coverage (on Contents) – covers or pays for the cost to replace damaged personal property or items at current costs without considering deductions due to depreciation.

Note: emphasis on deductions and depreciation

17. Sub-limit – A specified amount that is less than the maximum limits on a home insurance policy. Sub-limits are noted for specified coverages or types of property.

Note: emphasis on specified types of property.

18. Underwriting – is the process that an insurance company uses to determine if someone is eligible for insurance, if so, how much that person should pay for insurance.

There you have it, the very basic home insurance terms and quotes. Knowing these insurance terms and quotes will help you to better understand your insurance quote. This will give you an advantage when you are trying to make the right decision. But do bear in mind that these are just the basic insurance terms and quotes, if you encounter anything new it would always pay to ask your insurance professional.

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