A little clarity
A starting point for insurance words.
General concepts to help you frame better questions.
Premium
The amount charged for an insurance policy. Payment timing and what that payment provides depend on the policy.
Deductible
An amount you may be responsible for before certain policy benefits apply. Ask how it works for each coverage and type of claim.
Limit
A maximum amount a policy may pay under its terms. Policies can have different limits for different coverages.
Exclusion
Something the policy does not cover. Read the actual exclusions rather than assuming every risk is included.
A useful next question
“Can you show me how the deductible, limits and exclusions apply to this specific policy?”
Build a question listThese are simplified concepts, not an interpretation of your policy or personalized insurance advice.