Insurance vocab
This is a financial product that protects you from potential losses or damages.
What is an insurance?
This mandatory coverage pays for damages to the other driver's car if you are at fault in an accident.
What is liability coverage?
The amount you must pay out-of-pocket before your insurance starts to cover costs.
Deductible what is deductible?
This coverage protects your personal belongings inside your rented apartment from specific perils like theft or fire.
What is Personal property coverage
A type of professional who assesses risk and calculates the premiums for insurance policies
What is actuary?
The amount you pay monthly or annually for coverage.
What is premium?
This optional coverage pays for damage to your own vehicle resulting from a collision with another object or vehicle.
What is colition coverage?
A set fee you pay for a doctor's office visit or prescription medication, with the insurer paying the rest.
What is copay?
This part of your policy covers you if someone is injured in your rental unit and decides to sue you.
What is Liability insurance?
A natural disaster that is typically not covered by a standard homeowner's or renter's policy, requiring separate coverage
What is flood?
The money you have to pay towards a covered loss before your insurance policy kicks in.
What is your deductible?
This coverage pays for damages to your car from things other than accidents, like hail, vandalism, or theft.
What is comprehensive coverage?
The percentage of medical costs you are responsible for after you've paid your deductible
What is coinsurance?
A temporary living expense, such as a hotel, that your policy might cover if your rental home is uninhabitable due to a covered loss
Loss of Use coverage
A clause in an insurance policy that excludes specific risks or types of damage from coverage.
What is exclusion
The maximum amount an insurer will pay for a covered loss.
What is your policy limit?
This optional coverage helps pay for medical expenses for you and your passengers after an accident, regardless of who is at fault.
What is personal injury protection (PIP)?
The term for a healthcare provider, such as a doctor or hospital, that has a contract with your insurance company to provide services at a negotiated rate.
What is in net-word provider ?
common misconception about renters insurance is that it is the building owner's responsibility to insure your personal belongings. This is false, the owner's policy only covers this part of the property.
What is the dwelling?
When an insurance company legally pursues a third party responsible for a loss suffered by the insured, this is called
What is subrogration?
The formal request by a policyholder to an insurance company for compensation for a covered loss.
What is your claim
Two friends with the same car apply for insurance, but the younger one pays more because they are considered less experienced.
What is age?
Situation:Your medical bill is $10,000. Your policy has a $500 deductible and 20% coinsurance. Assuming you've met your deductible, this is the amount you owe.
$2,000
Situation:Your $20,000 worth of electronics are stolen from your apartment. Your policy has a $500 deductible and a $15,000 limit for electronics. This is how much the insurer pays
$14,000
The principle stating that insurance policies are designed to return the insured to their original financial position before the loss occurred, without allowing them to profit
Principle of indemnity