Insurance Brokers of Calgary: Glossary of Need-to-Know Terms

Insurance Brokers of Calgary: Glossary of Need-to-Know TermsAt Bow Valley Insurance we have access to several leading companies in the insurance industry to find you the best coverage at the a very competitive rate. Unlike insurance agents with access to the products offered by just one company, you’ll get prices from several insurance companies by working with one of our experienced insurance brokers. Calgary motorists, homeowners and business owners have relied on Bow Valley Insurance to find them the most comprehensive coverage at a very competitive price for 35 years.

Whether you’re protecting a business, home, car or motorbike, it’s important to understand the basic insurance. Here we provide a glossary of terms you need to know to understand each part of your policy:

  • Actual Cash Value (ACV) – Includes an adjustment to fair market value that decreases the value of your property by applying depreciation – see below under Depreciation.
  • Actuary – Specialist in evaluating statistical data to determine risk and calculate rates.
  • Assume – To undertake or promise to accept risk. Insurance companies or underwriters ‘assume’ risk when an insurance policy takes effect.
  • Broad coverage – Includes comprehensive protection for a building and named perils coverage for its contents.
  • Broker – A specialist who represents several insurance companies, provides advice and sells policies from several companies. Through working with insurance brokers, Calgary policyholders pay the lowest rates.
  • Claim – The exercise of a policyholder’s right to be paid by an insurer for damage or financial loss.
  • Claimant – The individual who files a claim.
  • Claims Examiner – The individual employed by an insurance company to handle claims.
  • Clause – Words or phrases describing specifications, limits and/or modifications.
  • Conditions – The terms of insurance contracts that impose obligations or criteria insured parties must meet to continue coverage.
  • Declarations – Statements signed by the insured warranting information given is true, complete, and correct.
  • Deductible – The amount to be subtracted from a loss when a claim is paid by an insurance company.
  • Depreciation – The decrease in value of an asset or property due to its use, age, deterioration and/or obsolescence.
  • Disclaimer – The denial of liability for cause, or denial of coverage based on a breach of statutory condition.
  • Endorsements – Amendments or additions that modify provisions of an insurance contract.
  • Exceptions – Within an insurance policy, amendment of standard declarations to provide required coverage.
  • Fair Market Value – Without compulsion to buy or sell, prices that buyers and sellers agree upon.
  • Fraud – Typically involves deliberate misrepresentation, misstatement, or concealing facts that should have been made known at a specific time, causing an unwarranted favourable decision that benefits an individual.
  • Liability – Loss or damage suffered by others for which the insured party is legally responsible.
  • Limits – Maximum amounts paid by the insurance company.
  • Loss – Often used interchangeably with claim, the amount an insurance company pays when a peril the insured is protected against occurs.
  • Negligence – Failure to take (or not take) action that any reasonable and prudent person would take (or not take) to avoid property damage, injury, or death.
  • No-Fault – Automobile insurance that compensates a party for personal injury and death as the result of an accident, no matter who was at fault.
  • *Immediately after an accident, insured parties should contact their insurance policy holders.
  • Perils – Causes of insured loss or damage e.g. fire, theft, windstorm etc.
  • Policy Limits – Maximum amounts an insurance company pays either overall, or under a specific type of coverage.
  • Proof of Loss – Statements made by policyholders to their insurance to identify specific circumstances and losses.
  • Replacement Cost – Prior to subtracting an amount for depreciation, the amount it would take to replace your property.

Insurance Brokers Calgary: Bow Valley Insurance

Whether you need to protect your business, home, auto or motorcycle, consider working with Bow Valley Insurance brokers. Calgary residents gain access to the best insurance products and the lowest possible rates in the industry at Bow Valley Insurance. Our promise is to find you the very best coverage at the lowest rate, and we always provide a free rate comparison so you can see for yourself.

Please see our testimonials page for thoughts from our satisfied customers, and don’t hesitate to contact us if you have any questions. We’re here to help!