What Does That Mean? Answering Insurance Questions Starting With C

Asking insurance questions can be challenging. Especially when those questions relate to jargon, because it’s hard to shake the feeling that you should know what it means.

Thankfully, YIQ is here to help. Continuing our list of insurance jargon, here are a few insurance terms that all insurance buyers should understand beginning with ‘C’.

Causes of loss

Causes of loss are the events that lead you to make an insurance claim. It’s vital that you understand what you’re covered for and in the event of a claim, what caused the loss. One of the most common insurance questions is ‘am I covered?’ The best way to figure this out is to think about cause of loss.

Comprehensive Coverage

Comprehensive coverage on auto insurance covers all losses that are not related to a collision. Causes of loss like fire, theft, disasters etc. are all covered under this portion of the policy. With any insurance policy it’s vital that you understand each portion of the coverage.

Concealment

Concealment is something you should always avoid when you buy insurance or answer insurance questions. Concealment is the act of hiding something from your insurance provider. Even if you are not asked a direct question about an issue you know to be relevant to your policy you need to share it. If you fail to share pertinent information it could be considered concealment and could invalidate coverage.

Consequential loss

Consequential loss is a loss that is indirectly caused by an incident. For example, if you rent an apartment that is damaged in a fire you don’t just lose the furniture, you also lose out on rent. Depending on the policy and the loss, it may or may not be covered. It’s important that you understand what policies provide consequential loss coverage.

Coverage

The most important ‘C’ word in insurance is coverage. It’s often described merely as a synonym for insurance. But it’s probably the best word to use to describe the potential losses that you are covered for. The answer to most insurance questions is to check your coverage. That answer doubles as the best advice an insurance agent can give. You should understand what coverage you have, on every policy. If you are unsure of what a policy covers or how much coverage you have, you should contact your insurance agent.

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