A
Actual cash value
For payment of a loss on a policy with an actual cash value valuation, the insurer will deduct depreciation from the cost to replace property after a loss.
Actual cash value (ACV) For payment of a loss on a policy with an actual cash value valuation, the insurer will deduct depreciation from the cost to replace property after a loss.
Actual cash value TESTFor payment of a loss on a policy with an actual cash value valuation, the insurer will deduct depreciation from the cost to replace property after a loss.
Additional insuredA person or organization who can be added to an insurance contract, but who is not the insurance contract’s named insured.
Additional insured
A person or organization who can be added to an insurance contract, but who is not the insurance contract’s named insured.
Additional interestA person or entity that has a financial interest in your property but who is not an owner.
Additional interest
A person or entity that has a financial interest in your property but who is not an owner.
Agreed value insuranceA type of coverage that’s based on a previously agreed-upon value of your vehicle.
Agreed value insurance
A type of coverage that’s based on a previously agreed-upon value of your vehicle.
Auto insuranceCoverage for injury to other persons and damage to other vehicles or property caused by you. Optional coverages will pay for damage to your vehicle, regardless of fault.
Auto insurance
Coverage for injury to other persons and damage to other vehicles or property caused by you. Optional coverages will pay for damage to your vehicle, regardless of fault.
B
Blanket insuranceA policy that covers more than one type of property at the same location or the same kind of property at multiple locations as well as possessions.
Blanket insurance
A policy that covers more than one type of property at the same location or the same kind of property at multiple locations as well as possessions.
Blanket Insurance TESTA policy that covers more than one type of property at the same location or the same kind of property at multiple locations as well as possessions.
Bodily injury liabilityCoverage for third-party bodily injury resulting from your negligence, including death.
Bodily injury liability
Coverage for third-party bodily injury resulting from your negligence, including death.
Broker feeThe fee that an insurance broker charges carriers for bringing in new customers.
Broker fee
The fee that an insurance broker charges carriers for bringing in new customers.
C
Car rental and travel expenses
Coverage for the cost of rental cars and other travel expenses accrued after an accident renders your vehicle unusable.
Car rental and travel expenses coverageCoverage for the cost of rental cars and other travel expenses accrued after an accident renders your vehicle unusable.
CarrierA company that sells insurance policies and fulfills the terms of the contracts.
Carrier
A company that sells insurance policies and fulfills the terms of the contracts.
Co-op insuranceCoverage for owners of co-op apartments for their individual units.
Co-op insurance
Coverage for owners of co-op apartments for their individual units.
Collateral protection insurance (CPI)Insures property held as collateral for loans made by lending institutions.
Collateral protection insurance (CPI)
Insures property held as collateral for loans made by lending institutions.
Collision coverageProtection against damage to your vehicle resulting from a collision.
Collision coverage
Protection against damage to your vehicle resulting from a collision.
Comprehensive coverageAuto insurance coverage for non-collision damage to a vehicle caused by events such as vandalism, natural disasters and vehicle theft.
Comprehensive coverage
Auto insurance coverage for non-collision damage to a vehicle caused by events such as vandalism, natural disasters and vehicle theft.
Contents insuranceCoverage for repair and replacement of personal property that is damaged by a covered peril.
Contents insurance
Coverage for repair and replacement of personal property that is damaged by a covered peril.
CoverageThe extent of loss or liability damages which can be reimbursed by your insurance policy.
Coverage
The extent of loss or liability damages which can be reimbursed by your insurance policy.
Coverages and limits
All the protection included in an insurance policy and the maximum amount an insurer will pay out for a claim.
Coverages and limits All the protection included in an insurance policy and the maximum amount an insurer will pay out for a claim.
D
DeductibleThe amount of money you pay out-of-pocket towards an expense covered by your insurance.
Deductible
The amount of money you pay out-of-pocket towards an expense covered by your insurance.
DepreciationA decrease in an asset's value over time.
Depreciation
A decrease in an asset's value over time.
Dwelling coverageA type of coverage for your home’s physical structure in the event that it needs to be repaired or replaced.
Dwelling coverage
A type of coverage for your home’s physical structure in the event that it needs to be repaired or replaced.
Dwelling limitThe maximum amount of money that your homeowners insurance policy will cover to rebuild your home.
Dwelling limit
The maximum amount of money that your homeowners insurance policy will cover to rebuild your home.
E
Effective dateThe date that an insurance policy officially becomes active.
Effective date
The date that an insurance policy officially becomes active.
EndorsementAn endorsement is an amendment to an existing insurance contract that changes the terms of the original policy.
Endorsement
An endorsement is an amendment to an existing insurance contract that changes the terms of the original policy.
ExclusionsTypes of losses or damages that are specifically not covered by an insurance policy.
Exclusions
Types of losses or damages that are specifically not covered by an insurance policy.
H
Hazard insuranceA type of coverage that protects your home's structure, other structures on your property and your personal belongings from hazards.
Hazard insurance
A type of coverage that protects your home's structure, other structures on your property and your personal belongings from hazards.
HO-2 vs HO-3
HO-2 provides coverage for named perils whereas HO-3 provides open peril coverage.
HO-4 policyA policy also known as renters insurance, which provides coverage for personal belongings in the event of damage.
HO-4 policy
A policy also known as renters insurance, which provides coverage for personal belongings in the event of damage.
HO-5 insuranceA type of homeowners insurance that is written on an open-perils basis.
HO-5 insurance
A type of homeowners insurance that is written on an open-perils basis.
Home replacement costThe price of rebuilding your home based on its location, construction type and structural features.
Home replacement cost
The price of rebuilding your home based on its location, construction type and structural features.
I
Inflation Guard
An Inflation Guard policy provision gradually and continuously increases the limit of property insurance by a specified percentage over a specified time period.
Insurance binder
Temporary proof of insurance until your formal policy is issued.
Insurance broker
An insurance professional that helps you choose the best policies for your unique needs.
Insurance premium
The amount of money you pay for your insurance coverage.
Insured driver
A driver that is insured under a personal or commercial auto policy.
Insured location
Insured location is the premises, building or area owned or occupied by the insured and listed on the policy.
Insured vehicle
A car owned or leased by the policyholder and listed on the personal auto insurance policy.
L
Liability InsuranceProtection against damages or injuries that happen on your property or that you are responsible for in the event of an accident.
Liability insurance
Protection against damages or injuries that happen on your property or that you are responsible for in the event of an accident.
Limit of liability
The maximum amount of money your insurance company is responsible for in the event an accident, unexpected hazard or theft.
Loss Assessment coverage
This pays for your share of special assessments made by your homeowners association for damages that are not covered by the association's master policy, or exceed the HOA’s policy limits.
Loss of use coverage
Loss of use coverage pays for temporary additional living expenses you incur if your home is not suitable to live in due to a covered loss.
M
Master policy
An insurance policy purchased by the homeowners association on behalf of all the unit owners. It typically covers the building exterior and common areas.
Medical payment limit
The maximum amount of money that your insurance will pay towards medical bills in the event of an accident covered under your policy.
Medical payments coverage
Coverage for medical bills resulting from an accident, regardless of who is at fault.
Medical payments to others
The amount of money a policy covers for medical payments to others in the event of an insured incident.
Moral hazard
This occurs when someone with insurance takes more risks than they would otherwise because they assume their losses will be covered.
N
Named peril
A specific type of hazard that is listed by name on your insurance policy.
Negligence
Negligence is an act or omission involving failure to use a degree of care considered reasonable under a given set of circumstances.
O
Open peril
A policy that covers all hazards, with the exception of perils that are specifically excluded.
Ordinance or Law coverage
This coverage pays for additional expenses incurred to comply with local building codes or ordinances following a covered loss.
Other structures
Structures associated with a home, such as a fence, detached garage or gazebo, that are covered under a homeowners policy.
Other structures limit
The maximum amount of money an insurer will pay out for other structures covered by your policy.
P
Permissive use
Use of your vehicle by infrequent drivers that are not already named as drivers in your auto policy.
Personal injury protection
Medical costs and lost wages expense coverage in states that have no-fault auto insurance laws.
Personal liability coverage
Protection against damages and injuries you may cause to another person or to another person’s property.
Personal property coverage limit
The maximum amount of money an insurer will pay out for loss or damage to your personal property.
Policy number
A unique identifier that insurance companies assign to policies.
Pre-release
The termination of an insurance contract prior to the insurer's assumption of obligation.
Property damage liability
A type of coverage against damage you may cause to another person’s vehicle or property.
Property protection insurance (PPI)
A type of auto insurance that covers damages to other’s property if you’re at fault in an accident.
R
Reconstruction Cost Estimate (RCE)
The estimated cost to rebuild your house based on current costs of construction.
Replacement cost
The cost to replace damaged or destroyed property with new items of similar quality, without factoring in depreciation.
Rider
An insurance rider is a policy form that is used to add coverage for specific items to your policy.
S
Scheduled Personal Property coverage
An optional coverage on a standard property insurance policy that provides specific limits on high value items such as jewelry, collectibles, firearms or high-end electronics.
Sewer Backup coverage
A type of endorsement that can be added to a property insurance policy to pay for damages caused by a backup of the sewer or sump pump.
Special assessment
A fee imposed by the homeowners association (HOA) to cover unexpected or unbudgeted expenses.
Stated value insurance
A type of coverage that allows you to insure assets for a specified amount.
Structure limit
The maximum amount an insurer will pay out to repair or replace an insured structure.
T
Theft
A peril covered in different types of insurance policies like homeowners and auto that replaces items stolen from your home or vehicle.
U
Umbrella insurance
Provides additional liability limits above and beyond the limits of a standard auto or homeowners insurance policy.
Underinsured Motorist (UIM)
Underinsured Motorist (UIM) coverage pays for your or your passengers' medical bills caused by a driver who doesn't have enough insurance to cover the costs.
Uninsured motorist coverage
Protection against accidents involving an uninsured, at-fault driver.
Uninsured Motorist Property Damage (UMPD)
Uninsured Motorist Property Damage (UMPD) coverage pays for damages caused by a driver who doesn't have insurance or is underinsured.
W
Wind and hail coverage
Coverage that can be added to homeowners policies to cover damage caused by wind and hail.
