Insurance 101: Policy Basics

1 minute read Published on Jun 10, 2014 | Last updated May 12, 2020 by BrokerLink Communications

Between graduations, vacations and buying new cars or homes, it can be an exciting time. While making your plans, make sure to include a call to your BrokerLink broker. Your insurance policy may seem confusing, but we’ve defined some common terms.

Broker: An insurance broker works independently from insurance companies, allowing them to shop the marketplace and find the best possible rates for customers. Brokers are trained to act as an advocate for customers, whether placing a new policy or offering guidance during a claim.

Insurer: The insurer or insurance company is responsible for the actual insurance coverage being offered. They determine insurance premiums and deductibles, policy coverages and exclusions, as well as the claims process.

Claims Adjuster: Claims adjusters represent the insurance company and are responsible for handling insurance claims. They will confirm the details of your loss and review your coverage, conduct an in-person visit and provide paperwork to be completed. They will also facilitate any repairs to be done. Here is a guide to the claims process.

Premium: This is the rate an individual will pay for insurance protection. A number of factors determine policy premiums including lifestyle, location, claims history, driving habits, employment and the characteristics of your home. Learn more about the factors impacting your premiums or how to save on your home insurance.

Deductible: Is the amount the policyholder is required to pay out of his/her own pocket before a claim is paid. In some cases, you can increase your deductible to save money on your premiums. Different policies and coverages have different deductibles, so always check with your BrokerLink broker if you are unsure.

Of course, this is only a list of some of the most common terms. Check out our next course – Insurance 102: Policy Specifics for the terms used to describe the details of your insurance coverage. If you have any questions or want to review your policy further, give your BrokerLink broker a call.