Insurance Lingo 101
When it comes to insurance, there’s a lot of lingo to know. Some might call it “jargon” – special words used by a particular profession that are often hard for others to understand. If you’ve ever found yourself scratching your head over words like “claim” or “coverage,” then you’ve come to the right place.
At Farm Bureau Insurance of Tennessee, your agent is your trusted partner for all your insurance needs, and you should know that you can always reach out to them if you have questions. In the meantime, here are a few key insurance terms that you’ll want to understand.
Claim
A claim is a formal request you submit to your insurance company requesting payment after you’ve suffered a loss or damage that you believe is covered under the terms of your insurance policy. Your agent can help you understand your policy and coverage, so you’ll know when and how to file a claim.
Deductible
Your deductible is the amount of money you will pay before your insurance kicks in to cover a claim. This is typically a set amount per year. You can have insurance plans with low deductibles, meaning you would pay less out of pocket were you to file a claim; but these plans usually have higher premiums (aka how much money you pay for your insurance). A lower monthly premium with a higher deductible may suit you better, depending on your circumstances.
Liability
As it relates to insurance, liability refers to the amount you would be responsible for covering should you end up in a situation where you’ve been found legally liable (accountable) for an accident that injures someone or damages property. Auto insurance is probably what comes to mind for you here, but Farm Bureau Insurance of Tennessee also offers liability coverage for homes and businesses.
Local
This is an important one to remember for Farm Bureau Insurance of Tennessee in particular. Our agents are members of Tennessee communities, present when you need them, and – perhaps most importantly – real people who want to sit down to get to know you and your insurance needs and questions.
How’s that for a crash course in insurance lingo? Remember, if you have questions about confusing terms, your coverage and policies, or anything else related to insurance, your Farm Bureau Insurance of Tennessee agent is your go-to resource.
