These are general definitions of common policy terms. Exact wording and limits vary by provider and by state, so the policy document is always the authority. FurVerdict is an independent editorial site, not an insurer or licensed agent; this page is informational only.
What you pay
- Deductible#
- Before the insurer reimburses a single claim, you cover this amount out of pocket. Most pet policies use an annual deductible that resets once per policy year; a few use a per-condition deductible that applies separately to each new condition.
- Reimbursement rate#
- Once your deductible is met, the insurer pays back a set percentage of an eligible vet bill, commonly 70%, 80%, or 90%. A higher reimbursement rate means a smaller share of each covered bill is yours, usually in exchange for a higher monthly premium.
- Annual limit#
- $5,000, $10,000, or unlimited: this is the ceiling an insurer will pay out across one policy year, whether a fixed dollar cap or none at all. Once you reach the limit, further covered costs that year are yours until the limit resets.
- Per-condition limit#
- A cap on what the insurer pays for a single condition, either per year or over the life of the pet. A policy can carry a per-condition limit on top of, or instead of, an overall annual limit, so it is worth checking both before you buy.
What a policy covers
- Waiting period#
- Buy a policy today and you still cannot claim right away: the waiting period is the gap between the day coverage starts and the day the insurer will pay. Accident waiting periods are often a few days; illness waiting periods commonly run about two weeks; some conditions such as cruciate-ligament issues can carry a six-month waiting period. Watch for anything your pet shows signs of during this window, because it can be treated as pre-existing later.
- Pre-existing condition#
- A health issue that showed signs, was diagnosed, or was treated before coverage began or during a waiting period. Pet insurers generally do not cover pre-existing conditions. Some will reconsider a condition as covered if it stays symptom-free and untreated for a defined stretch.
- Exclusion#
- Anything a policy states it will not pay for. Common exclusions include pre-existing conditions, cosmetic or elective procedures, and breeding costs. Exclusions are listed in the policy document and decide what a claim can and cannot recover.
- Bilateral condition#
- A condition that can affect a paired body part, such as both hips or both knees. If one side showed signs before coverage began, an insurer may treat the other side as pre-existing too, which is why these conditions are worth checking against your policy wording.
Plan types
- Accident-and-illness plan#
- The core pet insurance product. It covers unexpected injuries and new illnesses, from a swallowed object to cancer, subject to the deductible, reimbursement rate, and annual limit. It is distinct from accident-only plans and from wellness add-ons.
- Accident-only plan#
- A narrower, lower-cost policy that covers injuries from accidents, such as a broken bone or a bite, but not illnesses. It suits a budget-first buyer who wants protection against sudden injury cost without illness coverage.
- Wellness add-on#
- An optional plan that reimburses routine, expected care such as exams, vaccines, and dental cleanings. It is bought on top of an accident-and-illness policy and is best read as a budgeting tool, since it pays back predictable costs rather than insuring against large, unexpected bills.
Want the longer read on how these pieces fit together? See our coverage explainers and methodology.