Definition Series for the Insurance Illiterate: Underwriting

Definition of Underwriting

// the process an insurance company uses to determine if someone is eligible for insurance and, if so, how much that person should pay for insurance.

You do not have to take a 100-question exam to get insurance, but underwriters do want to know as much information as possible. Different elements can determine your different premium rates.

EXAMPLE OF UNDERWRITING

Joan had a series of unfortunate events and as a result, a couple of claims. She doesn’t think the underwriter will accept her insurance application.

INSURELY SAYS…

There are some factors that can affect your home insurance such as your neighbourhood, property value, plumbing, electrical system, renovations & improvements, pets, proximity from fire halls/hydrants and yes, past claims. A professional insurance broker can find the best solution for your personal situation, so don’t sweat it.

Want to find out a few ways you can lower your premium? Stay in our email thread – Tips (you might not even know of) that could lower your home insurance premium coming soon! You’re welcome.

Interesting in finding out more?
Head over to Insurely and check us out!