Insurance policies are always associated with many unique and different terms. Thus, it gets very important for a person to know these important insurance terms before going for any policy. Once you know the insurance terms, then you can easily search for an affordable insurance policy. While most of the terms are only understood and used by the insurance industry people, some of the terms are universal. It is important to understand them to know whether you are striking a good deal or not. Here is a list of few important insurance terms that everyone must know.
ACV (Actual Cash Value): ACV is the value of a product during the time it was actually wrecked by the insured occasion. It is calculated by deducting depreciation from the Replacement Cost Value.
Claimant: It is the person who makes a claim against a person or a party on legal liability
Claim: It is the request made by the insured person to pay for the loss occurred to the insurance company. If you claim to the insurance company, it is known as first insurancecompany and the claim made by one person on some another person is known as third party claims
Coverage: It is the amount of safety or protection offered by the insurance policy for which you have opted.
Depreciation: It is the reduction in the value of the asset to wear and tear, extra usage, time or anything else. Most assets decrease in their value with the passage of time.
Deductibles: It is the sum of money that you are supposed to pay before the insurance company commences to pay.
Exclusive: They are the points which are under provided coverage by the policy.
Peril: The exact cause of the damage
Grace Period: It is known as the amount of time in between the due date of the payment and the time when the policy can be cancelled if the payment has not been made.
Liability Insurance: It pays the loss occurred by you to the other people.
Policy: It is the legitimate document issued by the insurance company which defines the general rules and regulations and terms and condition of the insurance you have opted for.
Policy Holder: It is the person who purchases the insurance
Underwriting: It is the procedure of choosing for the risks of the insurance and deciding for the amount and the terms on what the insurance company will accept.
Premium: It is the amount which one should pay as instalment to the insurance company.
Annuity: It is a helpful element for the retirement. It has two categories: fixed annuity as well as variable annuity.
Vendor Insurance: It is a special insurance policy for who those people who sell products on occasions like fairs and trading shows.
Insurance Endorsement: It is a vital addition to the insurance policy. It is crucial to understand how the endorsements change the policy completely.
These are the few important insurance terms which a person should know before going for an insurance policy.
Daniel waltson is the senior contributor for kanetix.ca, an innovative insurance quoting marketplace. Kanetix.ca offers great advice on insurance and one of the companies that offers affordable insurance quote.