Making A Smart Decision By Choosing The Right Insurance Plan

by Administrator 27. June 2020 06:31

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Insurance Jargon: What Do The Terms Really Mean?

by Administrator 20. January 2020 09:14

A key requirement for making sound insurance decisions is to be aware of commonly used insurance terms. Educating yourself on frequently used insurance terms increases the understanding of the process and helps in making profitable decisions.

Listed below are some insurance terms you should know:

  • Act of God: This refers to events that arise due to natural causes devoid of human intervention.
  • Actual Cash Value: The current market value of lost/damaged property at the time of loss. Calculations are based on the value of your property minus the depreciation.
  • Adjustor: Insurance company representative who investigates a claim and settles it.
  • Cancellation: The process of terminating an insurance plan by the insurance company or on the insured person’s request.
  • Claim: A demand by the insured from his insurance company for coverage and compensation due to a loss as per the terms of his insurance plan contract.
  • Collision Coverage: An optional coverage that can be availed if a vehicle is damaged by collision with another object.
  • Deductible: These are out-of-pocket expenses for losses up to a certain amount before your insurance company covers the remaining expenses. 
  • Depreciation: It is the decreased value of an item due to its wear and tear or obsolescence over time.
  • Insurance Term: The period for which a plan is valid and active.
  • Loss of Use: It is insurance protection from a loss caused by the inability to use the insured property as a result of destruction or damage.
  • General Liability: This covers injuries/ damage of property of a third party on insured person’s property.
  • Peril: The reason for a loss e.g. fire, collision, flooding, etc. 
  • Premium: An amount that the insured pays for the insurance coverage.
  • Quote: An estimate of the premium for different insurance coverage options.
  • Total Loss: A situation whereby the cost of damage is more than the value of the insured’s property.
  • Professional Liability: Covers legal costs and expenses incurred on the complaint of a customer pertaining to the failure of the insured professional to deliver what was stated in the contract.
  • Product Liability: The coverage offers protection for situations in which a product sold is claimed to be defective.
  • Replacement Cost Insurance: A type of insurance coverage for repairs or replacements to damaged property.
  • Underwriting: The process by which an insurance company assesses whether it should provide coverage to an applicant.

Shawn Camp Insurance Agency, Inc. offers a variety of insurance coverage options to its customers. The agents assist the insurance buyers in understanding the important terms related to the insurance plan. For more details on insurance jargons, visit Shawn Camp Insurance Agency, Inc, 2705 E. Stan Schlueter Loop Ste 101 Killeen, TX - 76542. You can also call at (254) 526 – 0535. 


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Things To Consider While Renewing An Insurance Plan

by Administrator 30. December 2019 08:52

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