Insurance Basic Definitions

Claim: A request by an insured that an insurance company pay following a loss.

Declaration (Dec) Page: The cover page listing the basics of the policy.

Deductible: The amount of money the insured is responsible for before an insurance company will pay a claim.

Endorsement: An add-on that modifies a policy.

Exclusion: Peril, event, or act where no insurance coverage is provided.

Loss: The injury or damage sustained.

Limits: The highest amount your insurer will pay for a covered claim.

Peril: The event that causes the loss.

Policy: The contract between an insurance company and an Insured.

Policy Period: How long your policy is in force, assuming premium is paid.

Premium: The money paid by an Insured to the Insurer for the insurance coverage.