Top 9 FAQs: Insurance Explained
At Erion Insurance Group, we’re here for you! We understand that finding the right coverage for the things that matter to you is important. That’s why we’ve compiled a list of frequently asked questions (FAQs) about insurance:
What is insurance?
Insurance is a contract between an individual or entity (the insured) and an insurance company (the insurer) in which the insurer agrees to provide financial compensation or coverage for specified risks or losses in exchange for premium payments.
What types of insurance are available at Erion?
There are various types of insurance, including home insurance, auto insurance, business insurance, and cottage insurance. Each type of insurance provides coverage for specific risks and losses. Don’t forget about your toys! Our experienced brokers can help you to find policies for your boats, ATVs, and motorcycles.
Why do I need insurance?
Insurance provides financial protection against unforeseen events or losses. It helps mitigate risks and offers peace of mind by ensuring that you will be compensated or covered if you experience a covered loss or event.
How does an insurance policy work?
An insurance policy is a legal contract between the insured (client) and the insurer (company). The insured pays a premium to the insurer, and in return, the insurer agrees to provide coverage for specific risks or losses as stated in the policy. If a covered loss occurs, the insured can file a claim to seek compensation or coverage from the insurer.
At Erion Insurance Group, we work for you to find you a policy that will carefully match your needs with one of our trusted insurance providers.
What is a deductible?
A deductible is the amount of money that the insured must pay out of pocket before the insurance coverage kicks in. Deductibles are commonly found in property insurance (e.g., home insurance) and auto insurance policies.
For example, in an auto insurance policy with a $500 deductible, if you have a covered accident resulting in $2,000 in damages, you would pay the first $500, and the insurance company would cover the remaining $1,500.
How are insurance premiums determined?
Insurance premiums are typically determined based on several factors, including the type of insurance, the level of coverage, the insured’s risk profile (such as age, driving record, location, etc.), and the insurance company’s underwriting guidelines. Premiums can vary among individuals and insurers.
What is a claim?
A claim is a formal request made by the insured to the insurance company for compensation or coverage of a loss covered under the insurance policy. The insured must provide supporting documentation and evidence to substantiate the claim.
How long does it take to process an insurance claim?
The time it takes to process an insurance claim can vary depending on the complexity of the claim and the responsiveness of the insured in providing the necessary documentation. Simple claims can often be processed within a few days, while more complex claims may take weeks or even months. Rest assured that your Erion broker has your back and will work on your behalf for a timely resolution.
Can I cancel my insurance policy?
Yes, you can typically cancel an insurance policy, but the specific terms and conditions regarding cancellations may vary depending on the insurance company and the type of policy. Some policies may have cancellation fees or penalties, while others may allow for a pro-rata refund of the unused portion of the premium.
The above answers are a great starting point, providing general guidelines, but insurance policies and regulations can vary. For specific information about your policy, it’s always best to consult with a licensed insurance professional for personalized advice that takes into account all the details of your policy. Our Erion insurance brokers are happy to help with ALL of your insurance questions!