Premium
The amount charged for an insurance policy, subject to the carrier’s rating and policy terms.
◉ INSURANCE GUIDE
Understand the words before making the decision.
A clear definition is the first step. The actual policy language is what ultimately matters.
MIAMIROOTED SINCE 1975
PLAIN LANGUAGE GUIDE
Insurance terms without the fog.
Definitions can still vary by policy and jurisdiction. Your actual contract controls.
Deductible
The amount or portion of a covered loss the insured is responsible for before or as part of the insurer’s payment, depending on the coverage.
Limit
The maximum amount a policy may pay for a particular coverage or loss, subject to the policy.
Liability
Coverage concepts related to legal responsibility for covered injury, damage or other insured allegations.
Exclusion
A policy provision that removes or limits coverage for specified causes, property, situations or exposures.
Endorsement
A form that changes, adds to or modifies part of the policy.
Replacement cost
A valuation concept based on the cost to repair or replace covered property without the same depreciation approach used by actual cash value, subject to policy terms.
Actual cash value
A valuation method that can reflect depreciation, depending on the policy and covered property.
Coinsurance
In health coverage, the percentage of eligible covered costs you may pay after the deductible, subject to the plan.
Out of pocket maximum
A health plan concept describing the maximum eligible cost sharing you may pay in a plan period, subject to plan rules and exclusions.
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Want to apply one of these terms to your policy?
A licensed producer can explain how the specific policy wording applies.