A publication by the AARP Mobile Home Insurance Program for Foremost.

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Specialist Spotlight: Insurance Terms Made Easy

By Kelsey Terschak, Communications Specialist

Foremost wants to make insurance easy for our customers to understand. The mobile home insurance industry has its own terms which can sometimes be tough to comprehend if you’re not familiar with them. This beginner’s guide to insurance terminology will help you make sense of these words the next time you hear them.

For precise definitions, however, please refer to your insurance policy.

Claim: A formal request to an insurance company asking for a payment to cover a loss based on the terms of the insurance contract.

Coverage: A specific protection provided by a policy for the result of a hazard you are insured against.

Deductible: A certain dollar amount beyond which insurance protection begins. The policyholder assumes the loss up to the deductible limit and the insurer pays the remainder, up to the policy limit.

Exclusions: The types of losses not covered by the policy. A Foremost manufactured home policy provides comprehensive coverage – that means causes of loss that are direct, sudden and accidental are covered, unless specifically excluded in the policy.

Peril: The specific event causing a loss, such as fire, windstorm or theft.

Policy: The written documents detailing the terms and conditions of an insurance contract. It includes all clauses, riders, endorsements and policy papers.

Premium: A payment by the policyholder to the insurance company in exchange for insurance coverage.

Replacement Cost: The cost of replacing or repairing property using new materials of like kind and quality without deduction for depreciation.

Risk: The hazard or chance of loss on any particular item of insurance.

Quote: A quote is an estimate of premium amount for the insurance coverage you selected and is based on the information you provided.

This brief summary is not a policy document. Please read the actual policy documents for your state for important details on coverages, exclusions, limits, conditions and terms. If there is any conflict between this summary and the policy documents, the policy documents will control. Not all products and discounts are available in every state.

Not all products, coverages and discounts available in all areas. This newsletter does not alter the coverages in your policy. Please read your policy documents to check the coverages that you've selected.

Foremost Insurance Company pays royalty fees to AARP for the use of its intellectual property. These fees are used for the general purposes of AARP. AARP and its affiliates are not insurers.

The AARP Mobile Home Insurance Program is unavailable in some areas of the country, Florida's Atlantic and Gulf Coasts, Puerto Rico and the Virgin Islands. Foremost Express Insurance Agency, Inc. is a subsidiary of FCOA, LLC.