{"id":352594,"date":"2017-05-30T16:48:54","date_gmt":"2017-05-30T21:48:54","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/insurance\/insurance-basics.html"},"modified":"2024-09-12T13:24:53","modified_gmt":"2024-09-12T18:24:53","slug":"insurance-basics","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/insurance\/insurance-basics.html","title":{"rendered":"Insurance Legal Basics"},"content":{"rendered":"\n
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Insurance Legal Basics<\/h1>\n
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\n By Oni Harton, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last reviewed\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Just about anything can be insured. It may seem like the types of coverage<\/a> offered by insurance companies have no end. Most of us are familiar with the common types of insurance. Insurance plans can protect assets through liability insurance coverage and bring peace of mind in various scenarios.<\/p>\r\n

This section addresses frequently asked questions<\/a> about insurance products offered by insurance providers. Regardless of which type of insurance interests you, this section should provide helpful guidance or address issues you may have with policies already purchased.<\/p>\r\n

FindLaw’s Insurance Basics section provides an overview of how insurance coverage operates. It explains the insurance products available to consumers and what to do if you need help with insurance issues.<\/p>\r\n

Insurance 101<\/h2>\r\n

Insurance is a way to protect against losses, pay for preventive care to keep you healthy, bring peace of mind, or even provide for loved ones after your death. From a legal standpoint, insurance is a contract<\/a>.<\/p>\r\n

The parties to the contract are the insurer and the insured party. Insureds agree to pay premiums<\/a> and the insurer agrees to cover your losses and shield you from personal liability within policy limits.<\/p>\r\n

As with any other contract, the insurer’s responsibilities are defined. Sometimes, coverage or exclusion is obvious. At other times, you may need help interpreting policy language. It’s critical to understand what is covered and what is not. You want to make sure you have the insurance coverage that you intend.<\/p>\r\n

In addition to premiums, you may also be subject to a deductible<\/a>. A deductible is the amount you must pay out-of-pocket before receiving insurance benefits.<\/p>\r\n

What Can Be Insured?<\/h2>\r\n

Most items in which you have an insurable interest may be insured. An insurable interest is something or someone that benefits you and would negatively impact your interests if it were lost, damaged, or otherwise diminished. <\/p>\r\n

For example, you cannot take out an insurance policy on your neighbor’s house since you don’t have a direct stake in that house. You don’t have an insurable interest in their house.<\/p>\r\n

Common types of insurance include:<\/p>\r\n