A named insured is any individual or entity that is listed as an insured by name on the insurance policy. They are the primary party listed on the policy and in addition to having coverage and  the ability to make changes, they are also responsible for paying the insurance premiums.

Named insureds and additional named insureds can make requests or changes to an insurance policy.

 

Additional insureds are listed on the policy in certain cases but have no authority to make changes to the policy.

Mortgage companies and lienholders often ask to be listed as additional insureds on homeowners or auto insurance policy. This protects them in the event the home or vehicle is damaged by providing payment for the amount still owed on the loan.

It is a good idea to have both your auto and homeowner’s insurance with the same agency.  This is the best way to avoid gaps in coverage.  Having all of your insurance policies with one agent is beneficial because they will get to know you and your unique situation.  It is helpful to know someone’s situation when an agent has to recommend the best coverages. Plus, you may even get a discount for having both policies with one agency.

In many cases you will hear the terms replacement cost (the cost to replace something with like kind and quality) and actual cash value. In simple terms, actual cash value is replacement cost minus depreciation. For example, if you purchased a 50” television for $1,200 5 years ago, and it is damaged in a fire, the insurance company would take into account that it is 5 years old when calculating the claim payout if you have actual cash value.

 

A certificate of insurance is a document that provides evidence of the types of insurance policies, including coverages and limits, purchased by you.  This is important to have if you are providing a service that could result in large losses to your clientele should something go wrong. No matter what type of business you are working with, having a certificate of insurance gives both you and your clients peace of mind.  

A deductible is an amount of money, sometimes $500 or $1,000 depending on your policy, that is your responsibility at the time of a claim. It is the insurance company’s way to ensure that any small claims will be paid by you rather than submitted.  Usually, the company will simply deduct this amount from your claim check once it is determined to be a covered loss.

You should review all of your insurance policies at least once a year.  If you have any major life changes (births, deaths, relocation) you should review the relevant policies immediately as this can have a significant impact on your policies.