An “insurer” refers to the company providing you with financial coverage in the case of unexpected, bad events covered on your renters or homeowners policy.
What do insurers do?
Getting a quote
Say you’re looking to get a new renters insurance policy. In this event, you’d turn to an insurer, a company that sells insurance and underwrites risk.
The insurer will start out by evaluating how risky an investment you are. Then, they’ll ask for some of your info, such as your name, address, and birthday, via phone, an online form, or, in some cases, a chatbot. After, they’ll calculate the risk of insuring you, taking into consideration the location and condition of your place, as well as your claims history, among other things.
Processing your info and offering you a quote can take your insurance company anywhere from 90 seconds, to a few days.
Once the numbers are crunched, the insurer will come back to you with a quote, which tells you how much you’ll pay for your policy.
If you decide to purchase coverage from that insurer, you’ll be covered for everything outlined in the policy. Yay!
Coverage, claims, and your insurer
Insurers will also provide financial compensation for stuff that’s damaged or lost as long as it’s covered under your policy.
So if something happens to you that’s covered under your insurance policy, you can file a claim with your insurer. They’ll check your claim against your policy to see if what happened to you is covered.
The claims process will take anywhere from 3 seconds (here at Lemonade HQ we broke the world record!), to a few months.
If the insurer approves your claim, they’ll reimburse you for the loss (minus your deductible, of course).
Insurer vs. Insured
There’s tons of confusion around the difference between the ‘insurer’ and the ‘insured,’ so we’re here to clear things up. As mentioned earlier, the ‘insurer’ is the one calculating risks, providing insurance policies, and paying out claims. The ‘insured,’ on the other hand, is the person (or people) covered under the insurance policy.
So if you got a home insurance plan through Lemonade, Lemonade would be your insurer, and you would be the insured!