What is a deductible, and how does it affect my claim?

A deductible is the amount the policyholder must pay out-of-pocket before the insurer covers the remaining loss. Higher deductibles lower premiums but require more upfront payment in a claim. The insurer only pays amounts exceeding the deductible.

Do brokers offer better prices than buying directly from an insurance company?

Often, brokers secure better deals due to their market knowledge and ability to compare policies. However, some insurers offer exclusive direct-purchase discounts.

What is a named-perils marine freight insurance policy?

Named-perils policies cover only specific risks listed in the contract, such as fire, sinking, theft, or weather-related damages during transit.

Are there discounts available for flood insurance?

Some discounts may be available if your community participates in FEMA’s Community Rating System (CRS), which rewards flood mitigation efforts. Elevation certificates and flood-proofing improvements may also help reduce your premium costs.

What is retrocession in reinsurance?

Retrocession is the process by which a reinsurer transfers some or all of the risk it has assumed to another reinsurer, known as the retrocessionaire. This practice helps reinsurers further spread their risks and protect themselves from large claims. Retrocession allows the original reinsurer to limit its exposure to major losses, providing additional financial security in case of large catastrophic events.

How does comprehensive coverage benefit vehicle owners?

It provides financial protection against costly repairs or total loss due to non-collision incidents, reducing out-of-pocket expenses.

What is catastrophe insurance?

Catastrophe insurance provides coverage for large-scale disasters such as hurricanes, wildfires, earthquakes, and floods. These events often exceed standard policy limits, so catastrophe insurance helps cover extreme losses that would otherwise be financially devastating.

Can a policyholder and a beneficiary be the same person?

Yes, in some cases, such as health or disability insurance, the policyholder can also be the beneficiary receiving the benefits directly.