A premium refers to how much the subscriber pays for their insurance policy. Insurance premiums can be billed in a number of ways, but are commonly done on a monthly, semi-annual, or annual basis.
A deductible is how much the policy holder must pay before the insurance company may make a payment on a loss. Let’s say your annual deductible is $500, and you’re reporting a $1,500 loss, you’ll have to pay $500 before your insurance company makes a payment for the remaining $1,000.
Sometimes referred to as an “endorsement,” a rider is a special provision that attaches to a policy and either restricts or expands what the policy will cover. For example, you may decide to add a watercraft and recreational vehicle endorsement to your homeowner’s policy.
You’re filing a claim when you notify your insurance company that you think a payment is due to you under the terms of your policy. If your home is burglarized, you might file a claim under your homeowner’s policy to help cover the cost of repairing damages the burglar caused.
Exclusions are events or losses not covered by your insurance policy. A health insurance policy may exclude optional procedures, such as acupuncture.
It’s important to understand the details of your insurance policies to make certain you have the coverage you need, at a competitive price. If you are have additional questions regarding your insurance policy, or wonder if you could be paying too much, give an expert a call. They can help you find an insurance policy that is not only transparent and easy to understand, but also fits your budget.