CoverHope Glossary
Plain-English definitions for the warranty terms that show up in contracts, claim calls, and denial letters. Curated by Jordan Brooks.
"6 terms every homeowner should recognize before signing a contract." Each entry is a short read drawn from the warranty language carriers use during claims.
General
- Deductible The dollar amount you pay out of pocket on a covered vet bill before the pet insurance company starts paying. Most pet policies use an annual deductible (paid once per policy year regardless of how many claims) but some use per-incident deductibles (paid each time a new condition is treated).
- Exclusion A condition, treatment, or service that the pet insurance policy will not pay for under any circumstances. Pet policies list exclusions in two places: blanket exclusions that apply to every policyholder (cosmetic procedures, breeding costs, food, training) and individual exclusions endorsed onto your specific policy after enrollment based on your pet's vet history.
- Pre-existing condition Any medical condition (illness, injury, or symptom) that existed, was diagnosed, or showed clinical signs before the policy effective date or during the waiting period. Pet insurance does not cover pre-existing conditions. This is the single most important exclusion to understand before you buy.
- Premium The recurring payment (monthly or annual) you pay the pet insurance company to keep coverage in force. Premiums on pet policies rise as the pet ages, unlike life insurance where the rate is locked at issue.
- Reimbursement model The way a pet insurance policy pays out claims. Almost every U.S. pet insurance carrier uses post-payment reimbursement: you pay the vet's full bill at the visit, then submit the invoice to the carrier, then receive a check or direct deposit for the covered portion (usually 70, 80, or 90 percent) minus your deductible. A small number of carriers (Trupanion is the most prominent) support direct vet payment at participating clinics.
- Waiting period The interval between the policy effective date and when coverage actually begins. Anything that develops during the waiting period is treated as pre-existing and excluded for the life of the policy. Pet insurance waiting periods are typically 14 days for illnesses, 48 hours to 14 days for accidents, and 6 to 12 months for orthopedic conditions like cruciate ligament tears and hip dysplasia.