Concepts to consider when hiring insurance

Today we present a small glossary to help you familiarize with the concepts related to home insurance.

These are some of the terms that you must know before you take out any insurance:

Insurance agent: person who advises the client. Link between the company and the borrower. This person is linked to the insurance company.

Insurance broker: it is also the link between the company and the client, but the main difference is that it works with several insurers and is not linked to any of them.

General and private conditions: the former are common to all policies and imposed by the insurer, individuals collect the details of each contract, depending on factors linked to the home or holder.

Franchise: this is an agreed amount that will always pay the insured when a loss occurs. The particularity is that it lowers the policy, but on the other hand the insured must always pay a part of the loss.

Policy: is the document that contemplates the insurance contract

Premium: is the price of the contract. This is the amount that you will have to pay periodically to benefit from the policy

Risk: is the term that is used to the possibility that the incident or damage to the insured occurs

Borrower: the person who hires a service to the insurer and pays the premium.

Now that you have a few definitions linked to the world of insurance you can make a decision according to the coverages you are looking for your home. Although you already know something about insurance, if you end up going to a professional in the industry, do not be afraid to ask all the questions you need before signing any contract.