Insurance uses a lot of terms and jargon that are generally unfamiliar to the average consumer. Here’s a quick glossary of some common terms related to personal insurance:

1. Additional insured: A person listed on the policy who has the same rights to the insurance coverage as the policy owner, but can’t make changes to the policy. The additional insured typically has a financial interest in the item being insured, such as a mortgage lender, auto loan company, or landlord. 
2. Adjuster: Someone hired or contracted by the insurance carrier to review, examine, and finalize a claim. 
3. Cancellation: Termination of a policy and related coverages, either by the insurance carrier or the named insured, also known as the policyholder.
4. Claim: A loss reported to an insurance carrier.
5. Declarations page: The initial page(s) of an insurance policy that contains a summary of important details about the policy, including the type of insurance, who and what is covered under the policy, and premium information. The declarations page does not represent a full insurance contract.  
6. Deductible: The amount the insured must pay when a claim is made before the insurer pays its share of an insured loss.  
7. Endorsement: A change or amendment to an insurance policy. An endorsement may be made by either the insurer or the insured. For example, an insurance carrier may add coverage, or an insured may add a vehicle to their policy or reduce the amount of their deductible. 
8. Insured: The person(s) covered under the insurance policy. 
9. Insurer: The insurance company. 
10. Lapse: Length of time an insured has gone without coverage, or when an insurance policy has been canceled and coverage has ceased. 
11. Liability Coverage: ​​A type of insurance that might cover the insured against potential legal risks, such as being sued or being held responsible for damage, injury, or other negligence.  
12. Loss: An injury or damage to the insured due to a covered accident or misfortune.
13. Named Insured: The person(s) covered under the insurance policy. The name insured is allowed to make changes to and/or cancel the policy. The named insured must have a financial interest in the item(s) being insured, such as a vehicle owner or homeowner. 
14. Policyholder: The person who owns the insurance policy, also known as the named insured.
15. Premium: Money paid to an insurance carrier in exchange for an insurance policy and related coverage.

Have questions about your existing personal insurance policies, or need help determining how much and what type of insurance coverage you need to protect your home, auto, or personal property? Contact the WTIA insurance advisory team at insurance@washingtontechnology.org.