Several features of dog insurance will sound similar to "human" health insurance policies. For instance, pet insurance policies typically include:

Premiums, or the amount you pay for coverage
Deductibles, your out-of-pocket expense toward a covered claim before insurance benefits are applied
Coverage limits, the maximum amount your policy will pay toward a covered claim
Waiting period, meaning coverage does not begin for your pet until a specified period of time after you buy a policy

But, there also are a couple of key differences to keep in mind:

Pet insurance policies typically pay claims on a reimbursement basis.
Pet owners usually pay a veterinarian's bill at the time of service and then file for insurance reimbursement afterward, according to the American Veterinary Medical Association. Reimbursement for covered treatments will kick in after you've met your deductible.

Pet insurance companies reimburse for claims in different ways.
According to the National Association of Insurance Commissioners(NAIC), reimbursement amounts may be based on:

Amount spent by the policyholder: The insurer pays a set percentage of the total bill
Schedule of benefits: The insurer pays a set price for a given treatment
Schedule of usual, customary and reasonable charges: Bases reimbursement on the average cost for common services in the policyholder's area

Read the fine print to figure out which reimbursement method your pet insurance policy follows.