Whether it’s a monthly, bi-annual or annual expense, most of us have insurance in some form or fashion. But are you familiar with insurance in general?

Here’s a list of some of the most common terms you should know when dealing with your insurance plan.

Claim – When you file a request for payment from your insurance agency under the terms of your policy.

Damages – Money that one person must legally pay to another person.

Deductible – This is the amount of money that you pay out-of-pocket before the insurance kicks in.

Depreciation – This is a term specific to car insurance which refers to the way a vehicle loses value over time. Some types of car insurance policies have terms that keep depreciation in mind.

Hazard – Hazards are an important factor in insurance coverage and costs and refer to anything that increases the likelihood of damage.

Indemnity – Indemnity refers to money paid to a person (in a process called indemnification) to help restore that person to their financial state before their loss.

Insurance fraud – Any falsification of facts when making a claim with an insurance agency with the intent of receiving more money.

Liability – Any legally enforced responsibility for damage that was suffered by another person.

Premium – This is how much money you pay for a certain amount of insurance coverage over a certain period of time.

Renewal policy – When your coverage ends on its expiration date, a new policy begins immediately unless you notify the agency otherwise.

Salvage – Any damaged property referred to in an insurance claim, taken over by the agency after the claim is paid.