A big Thank you to the Foremost Creative Team for producing this article for our clients education! To read the article in it’s entirety select “read more” at the end of this page.
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.