This is Stan, and he’s looking for insurance on his mobile home. Unfortunately, the jargon used when explaining an insurance policy can be… confusing, to say the least. Fortunately, Foremost Insurance is here to provide you with a better insurance experience, and that includes helping you better understand what it is you’re paying for each month. Let’s start at the very beginning: COVERAGE. Not the kind of coverage we’re talking about, Stan! Our formal definition of coverage is the specific protection provided by a policy against the results of the hazards insured against. For example, if your mobile home were to be struck by lightning, or if there was water damage from bursting pipes, Foremost offers mobile home policies that cover these. If you want coverage that takes care of you when you need it, you’ll need to start with a QUOTE. A quote is the rate at which an insurance company indicates its willingness to assume certain liabilities or provide coverage under an insurance policy. A quote is an approximation of the premium for a given policy. Whew! That was a mouthful. In other words, a quote is something you can get from an independent insurance agent that estimates how much money you’ll pay each month for the type of insurance coverage you’re looking to buy. Ready for the next one? PREMIUM. Premium is a periodic payment by the insured [you] to the insurance company [us] in exchange for insurance coverage. Premium is just another word for cost. Foremost offers a variety of discounts that can lower your premium and we offer payment plans that can help you manage your payments in a way that works best for your budget. If you get in a situation where you need to use the insurance coverage we offer, you would file something called a CLAIM. A claim is a demand by a person seeking to recover from a loss that may be covered by an insurance policy. All that fancy terminology means that you, the insured, would ask us, the insurer, to pay for damages to your insured product. Whether or not your insurance policy covers the damages depends on the type of coverage you purchased with your insurance agent. This is where the idea of EXCLUSIONS come into play. Exclusions are specific losses not protected by the policy. Many of our policies provide comprehensive coverage, which means that any kind of loss that’s direct, sudden and accidental is covered unless your policy specifically says it’s not covered. That is good news for you Stan, because a lightening strike and a burst pipe are definitely direct, sudden and accidental. However, just like how a car warranty wouldn’t cover wear and tear on your tires, an insurance policy will not cover damages associated with known issues. For example, if you had a leaky faucet and found black mold after a few months, your insurance policy would not cover that type of damage. Well Stan, do you feel a bit more insurance savvy now? We know insurance can seem complicated, but a bit of knowledge can go a long way when choosing coverage for your property. Until next time, Stan! Oh, and by the way… your test is next week! Just kidding!