Do You Know These Two Insurance Terms?

Do You Know These Two Insurance Terms?

Insurance is one of those necessary evils everyone deals with, even if they don’t quite fully understand it. Terms like “malicious mischief” and “named perils” can throw anyone for a loop. Most consumers simply skip over those terms, hoping someone will explain them when it is important to know.

That’s a bad strategy. If you are signing a new policy, reading the fine print is imperative. As a consumer, you need to know exactly what you are agreeing to and what items and incidents are actually covered, whether that is your car, home or health. Thankfully, an insurance glossary not only helps bridge that knowledge gap, it can make you a better consumer.

Ask Your Insurance Agent the Right Questions

Reviewing the definition of insurance terms gives a consumer a better understanding of policy requirements. Knowing that “malicious mischief” is an insurance term for vandalism could help expedite a claim or spotlight coverage you didn’t know existed. A glossary might also demonstrate how agents use the terms and show you where you might encounter those phrases.

A good insurance glossary may also encourage you to ask your agent questions about your policy or negotiate better terms. The more you know about the industry, the better off you are when it comes time to renew your coverage.