Understanding basic terms is crucial:
Premium: The amount paid periodically to the insurer by the policyholder to maintain coverage.
Policy: The legal contract detailing the terms and conditions of the insurance coverage.
Deductible: The amount the insured must pay out-of-pocket before the insurer begins to pay a claim.
Claim: A formal request by a policyholder to an insurance company for payment based on the terms of the insurance policy.
Coverage/Limit: The maximum amount an insurance company will pay for a covered loss.
