Key Coverage Terms Explained

Key Coverage Terms Explained

Your insurance declarations page is full of jargon. We break down key coverage terms so you can read your policy like a pro.

Premium

The amount you pay (monthly or annual) to keep your coverage in force.

Deductible

The out-of-pocket amount you pay before coverage applies.

Policy Limit

The maximum the insurer will pay for a covered loss.

Exclusion

Events or property not covered by your policy.

Endorsement

Riders added to modify coverage (e.g., jewelry, flood).

Sublimit

Specific cap within a broader limit (e.g., water backup sublimit).

Peril

The cause of loss (fire, theft, windstorm).

Actual Cash Value vs Replacement Cost

Questions?

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