Getting the coverage you need and knowing your rights if you have to file a claim depends on having a thorough understanding of your insurance policy. However, the insurance industry is extremely complex, and most policies contain terms that make understanding them difficult. Before you make any final decisions, knowing a few crucial pieces of terminology can help you choose the best policy for your needs.

Common Insurance Terms You Should Know

• Perils: In the insurance industry, perils are those situations or actions that cause damage to your property. When choosing a policy, take a moment to ensure that it covers against the most common perils in your area.
• Exclusions: Most insurance policies specifically exclude certain perils from coverage. For instance, the standard homeowner's insurance does not cover damage from flood or earthquake damage. For protection against these risks, you will likely need to purchase additional coverage or amendments.
• Coverage Limits: The coverage limit of a policy is the maximum amount the company will pay, regardless of the amount of damage you've suffered. For instance, if your homeowner's policy offers $50,000 in personal property protection, but you've lost $75,000 in fine jewelry, you will be responsible for the difference. Knowing the limits of a policy will help you decide whether you need to purchase additional protection.
• Deductibles: This is the amount of damages you'll be financially responsible for before the company pays for a claim. Many auto insurance policies have $500 deductibles, so if you're in a fender bender with $700 in damages, your insurer will only pay $200. Choosing a higher deductible is one of the best ways to lower your monthly premiums.

The specialists at Comaltex Insurance Agency Inc have provided personal service and a wide range of high-quality policies to residents of New Braunfels, TX, since 1948. Learn more about their extensive array of services online now, call (830) 625-7511 for quotes, or follow their Twitter for more updates and advice today.