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Here’s how to be “fluent” in “speaking claims”.

By January 27, 2023February 7th, 2023Personal Insurance

Knowing the claims process certainly helps make things easier, which especially when you’re experience a claim, is always appreciated. To start, we like to remove jargon from the mix, and make sure you understand these common claims terms:

Coverage – Insurance coverage is the amount of risk, liability, or potential loss that is protected by insurance. Coverage helps individuals recover financial losses resulting from car accidents, damaged property, or unexpected health issues.

Liability – Liability refers to the level of risk the insurer is helping to protect through insurance coverage in the event of an incident that would otherwise cause financial harm.

Carrier – The company that will provide your insurance coverage, underwriting your insurance policy and processing and paying out your claims.

Claim Representative – Claims representatives work for insurance companies to settle claims through the evaluation of facts of a customer’s situation surrounding their claim. They are responsible for determining whether the loss is covered and what compensation should be.

Subrogation – After a carrier has paid a covered claim, “subro” is the process of being reimbursed from the at-fault party/their insurer.

Deductible – A deductible is the amount of money you pay out of your own pocket toward a covered claim. It is a key feature of many types of insurance coverage.

ACV vs Replacement – Replacement cost will replace your items with similar, but new items.

ACV – Actual cash value pays you for what your current items are worth in their depreciated state.