When reviewing your insurance policy, there may be some terms that cause you to do a “double take” after you see them. Without having an insurance background or formal training, it is not always easy to fully understand what you might see in your insurance paperwork. That’s ok! That’s what we are here for. We can help you better understand your coverage by explaining those strange terms to you. For example, here are a few terms you might see on your policy that make you go hmmm…:
• Aggregate Limit- This is referring to the limit on what your policy will pay for all claims within a specified time period. Usually that time period is a year. So if your policy has an aggregate limit of $500,000 per year and you file 3 separate claims within the specified time period totaling $600,000 your insurance policy is only required to pay $500,000.
• Compulsory Insurance- It is the insurance that is required by law. In California, you must show that you are financially responsible to register your vehicle with the state. In this case, having insurance may not be compulsory, but it is a great way to show you are financially responsible.
• Debris Removal Coverage- You can be reimbursed for reasonable expenses incurred for removal of debris after a loss caused by a covered peril. So if a tree falls on your roof, you can be reimbursed to have all those limbs removed.
• Speaking of peril, what IS a Peril?- Well, it is the cause of your loss. Standard homeowner’s insurance covers fire, lightning, vandalism and malicious mischief, theft, glass, falling objects, weight of ice snow or sleet, accidental discharge of water, sudden tearing apart, freezing, artificially generated electrical current, and volcanic eruption.
If you are curious about more terminology on your policy, just give us a call.
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