Get to know your insurance policy by understanding the terms!
Fumbled by jargon? Stumped by specifics? Perplexed by policies? You’re not alone! Trying to understand an insurance plan is like reading a technical manual in a foreign language – that’s why insurance agents must be well-trained and knowledgeable!
So that you can properly understand potential policies and find the best coverage for you, here’s a breakdown of what insurance terms mean.
Open enrollment: This is the period you’re allowed to sign up for next year’s insurance. Most insurance companies allow you to choose your coverage for the next year during a specific amount of time that is “open enrollment” unless you’ve changed jobs or had a qualifying life event!
Premium: This is your monthly bill! Therefore, your monthly premium is what you pay for your insurance policy.
Deductible: The total amount that you have to pay out-of-pocket before insurance kicks in. If you have a $1,000 deductible on your auto insurance, in the event of an accident, you are responsible for the first $1,000 of accident-related payments, then the insurance company will handle the rest. Typically, a higher deductible means lower monthly premiums, although there will be a higher out-of-pocket costs in the event of an accident.
Actual Cash Value: This will be the repayment value for indemnification due to loss or damage of property. In most cases it is replacement cost minus depreciation.
Replacement Cost: The cost of replacing property without a reduction for depreciation due to normal wear and tear.
Floater: A separate policy, typically in addition to home or renters insurance, that covers the value of property not covered by a standard policy. Jewelry is an example of this!
With the abundance of technical jargon involved in policy writing and covering claims, it’s important to work with a trusted insurance agent who is will to explain your insurance coverage. For the professional experts in Oakley, California, contact Agers Insurance Services today!