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June 30, 2016

Insurance Awareness Day – Terms Made Easy

 
Best day of the year:
Insurance Awareness Day
Time for a party!

Foremost® is finally celebrating its favorite holiday of the year:

Insurance Awareness Day!

'Raise the Roof' clip from 'The Office' TV series

That certainly calls for poem-making, party-throwing, and having a good 'ol time talking about what makes insurance so exciting! We believe that Foremost means more within the insurance industry, and a part of that is making sure our customers know what we're talking about when we're talking about it! Insurance has its own terms which can be tough to understand sometimes. This beginner's guide to insurance terminology will teach you the must-haves to put in your dictionary, so celebrate along with us and make some sense of these words!

For the precise definitions, please refer to your insurance policy.

Claim: A demand by a person or business seeking to recover from an insurer for a loss that may be covered by an insurance policy.

Coverage: The specific protection provided by a policy against the results of the hazards insured against.

Deductible: A certain dollar amount beyond which insurance protection begins. The insured assumes the loss up to the deductible limit and the insurer pays the remainder, up to the policy limit.

Exclusions: The section of the policy contract that specifies the losses not protected by the policy. Many of Foremost's policies provide Comprehensive coverage – that means that any cause of loss that's direct, sudden and accidental is covered, unless it is specifically excluded in the policy. This is broader coverage than a Named Peril contract, which provides coverage only for the causes of loss (perils) that are listed (named) in the policy.

Peril: The specific event causing a loss, such as fire, windstorm or accidental death.

Policy:The written contract effecting insurance, or the certificate thereof, by whatever named called, and including all clauses, riders, endorsements, and papers attached thereto and made a part thereof.

Premium: A periodic payment by the insured to the insurance company in exchange for insurance coverage. Foremost offers a wide variety of discounts that can lower your premium, and we offer payment plans that can help you manage your premium payments in a way that works with your budget.

Replacement Cost: The cost of replacing or repairing property using new materials of like kind and quality without deduction for depreciation.

Risk:The hazard or chance of loss on any particular item of insurance. The term "risk" usually is used in a general way to designate the entire subject matter of insurance covered under a policy or upon which an application for insurance has been received. Risk is also sometimes used to designate a policyholder.

Quote: The rate at which an insurance company indicates its willingness to assume certain liabilities or provide coverage under an insurance policy. A quote is an approximation of the premium for a given policy.

Article By

Kelsey

Kelsey Terschak

Kelsey specializes in social media and marketing at Foremost with a passion for living life to it's fullest! As a recent business school graduate, her interest and enthusiasm for creativity within the marketing field are a perfect fit at Foremost. She never expected to work for an insurance company, but what better place to contribute to the well-being of the community at large than with an insurance provider! In her free time, Kelsey enjoys participating in musical theater, decorating her home, and volunteering. Stay tuned to hear what she has to say about topics from boating safety to avoiding those notorious east coast potholes.

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