Insurance: Protect What You Have

Claim

is a formal request from the policyholder to have the insurance company make payment for a loss.

Insurance Policy

is a legal contract between an insurance company and the policyholder.

Rider

is additional coverage for specific items.

Coverage Limit

is the maximum amount the insurer will pay for losses, which is described in the policy.

Appraisal

professional opinion on the value of your property.

Disability Insurance

protects your most valuable asset - your income.

Replacement Cost

which is the amount to buy a new replacement for what was lost.

Worker's Compensation

Combines disability and health insurance for employees who get injured on the job.

Liability Insurance

Comes into play when you unintentionally hurt someone or damage another person's property.

Renter's Insurance

Covers only your possessions.

Auto Insurance

Covers you in a case of a vehicle accident, a break-in, or theft.

Homeowner's Insurance

Covers your possessions inside the house, as well as damage to the house itself.

Life Insurance

Ensures that any of your dependents can maintain their same standard of living by replacing your income or covering final expenses after you die.

Out - of - Pocket Expense

Everything you pay for medical care aside from the insurance premium.

Health Insurance

Insurance that helps pay your medical bills.

Actual Cash Value

Insurers will cover property for either the current worth or the replacement cost.

Claim Adjuster

Investigates a claim.

Declarations Page

Is a one page summary of the coverage amounts.

Premium

Is only a fraction of the potential payout.

Co - Pay

Means you pay a set dollar amount upfront for a health care service.

Co - Insurance

Means you pay a set percentage of the charge.

Policyholder

Person or business that owns the insurance policy.

Out - of - pocket Maximum

Policyholders most plans cap out - of - pocket expenses.

Risk

Potential for a loss or a gain.

Insurance

Reimburses you for unexpected losses or damages caused by a specific set of hazards to a specific thing for a fee.

Property Insurance

Replaces your personal assets when they're stolen and sometimes then they're destroyed.

Deductible

Share in the financial burden by requiring you to pay a relatively small fraction of the loss.

Fidelity Bonds

The bonding company will take legal action against you to recover their payment.

Estimate

The cost to repair or replace damaged or stolen property.

Insurance Settlement

When an insurance company determines a claim is valid.

Unemployment Insurance

When full - time employees get laid off they receive checks for a set period of time while looking for a new job.

Open Enrollment Period

When his employer gives him the option to sign up for insurance coverage.

Conditions

spell out what you must do to get payment for a loss.