Glossary
The terms you meet on a policy, a renewal notice or a quote, in plain English. General education, not advice on your own policy; for that, talk to Elona.
A short inspection of a home’s four main systems: roof, electrical, plumbing and heating or air conditioning. In Florida, insurers often ask for one on an older home before they will write or renew a policy.
Home coverageThe 4-point inspection: what it is and when you need one
See also: Wind mitigation inspection
What something was worth just before it was damaged or stolen: the cost to replace it, minus depreciation for its age and wear. A policy that pays actual cash value pays less for older things than one that pays replacement cost.
Home coverageWhat does insurance actually cover?Replacement cost vs actual cash value
See also: Replacement cost
A value you and the insurer settle on when the policy is written, often from an appraisal or a survey. If the item is a total loss, that is the amount the policy pays, without working out depreciation afterwards. Common for scheduled jewelry, classic cars and boats.
Boat & watercraft coverageYour home policy has limits on jewelry, watches and collectibles. Here's what that means
See also: Appraisal, Scheduled personal property
A written valuation of an item by a qualified professional, usually with a description and photos. Insurers use it to set the value of jewelry, art and other scheduled items, and many ask for one that is recent.
Jewelry & valuables coverageAppraisals: why they matter for jewelry coverage
See also: Scheduled personal property, Agreed value
A state where the driver who causes a crash is responsible for the damage and injuries, usually through their liability coverage. Illinois is an at-fault state, which is why liability limits matter so much there.
Auto coverageMinimum coverage — what does that really mean?Driving in Illinois winters: what your auto policy covers
See also: No-fault state, Liability coverage
A temporary proof that coverage is in place while the full policy is being issued. Lenders and dealers often ask for one at closing or when you pick up a car.
How to switch insurance companies without a gap
See also: Declarations page
The two parts of auto liability coverage. Bodily injury pays for injuries you cause to other people; property damage pays for damage you cause to their car or property. Each has its own limit, and the state minimums are usually far below what a serious accident costs.
Auto coverageMinimum coverage — what does that really mean?What "full coverage" actually meansIllinois minimum car insurance: what the law requires
See also: Liability coverage, Limit
Placing more than one policy, most often auto and home or renters, with the same insurer. It usually earns a discount on each and keeps everything with one company, though it is not always the cheapest total.
Bundling home and auto: how it works
See also: Premium, Independent agent
The insurance company that issues your policy and pays claims. An independent agent can place your coverage with several carriers; the carrier, not the agent, is who you have the contract with.
Independent agent vs going direct: what's the difference?
See also: Independent agent
A formal request to your insurer to pay for a covered loss. Filing one starts the process of confirming what happened, what the policy covers and what is paid.
What does insurance actually cover?What to do right after a car accident
See also: Deductible, Exclusion
Pays to repair or replace your own car after it hits, or is hit by, another vehicle or object, whoever is at fault. You pay the deductible first. Usually required by a lender or lessor.
Auto coverageWhat "full coverage" actually meansDriving in Illinois winters: what your auto policy covers
See also: Comprehensive coverage, Deductible, Full coverage
Pays for damage to your own car that is not a crash: theft, hail, flood, fire, a fallen tree, an animal strike or vandalism. Usually paired with collision and sold with its own deductible.
Auto coverageWhat "full coverage" actually meansDriving in Illinois winters: what your auto policy covers
See also: Collision coverage, Full coverage
The first page or two of your policy: who and what is insured, the coverages and their limits, the deductibles, the discounts and the premium. It is the fastest way to see what you actually have, and the best thing to bring to a quote.
What does insurance actually cover?Why did my renewal go up?How to read your declarations pageWhy your declarations page gets you a better quote
See also: Limit, Deductible
The part of a covered loss you pay yourself before the insurer pays the rest. A higher deductible usually means a lower premium; the right one is an amount you could pay tomorrow without borrowing.
What does insurance actually cover?How to read your declarations pageHurricane deductibles, explained
See also: Hurricane deductible, Premium
The part of a home policy that rebuilds or repairs the house itself after a covered loss. Its limit should track what it would cost to rebuild today, which is not the same as the purchase price or the market value.
Home coverageReplacement cost vs actual cash valueHurricane deductibles, explained
See also: Replacement cost, Other structures
A written change to a policy that adds, removes or alters coverage. Scheduling a ring, adding water-backup coverage or changing a deductible are all done by endorsement.
Your home policy has limits on jewelry, watches and collectibles. Here's what that means
See also: Rider, Scheduled personal property
Something a policy says it will not cover, listed in the policy wording. Flood on a standard home policy and wear and tear on almost any policy are common examples. Some exclusions can be bought back with a separate policy or endorsement.
What does insurance actually cover?Is flood covered by my home insurance?
See also: Endorsement, Flood zone
A map area that rates how likely a place is to flood, drawn by the federal flood program. The zone decides whether a lender requires flood insurance; it does not decide whether a home can flood, and homes outside high-risk zones flood too.
Flood coverageFlood zones, explained (and why "low risk" isn't "no risk")
See also: National Flood Insurance Program, Waiting period
Forms an insurer files with the state to prove you carry the liability coverage the state has ordered after certain offences, such as a DUI or driving without insurance. Florida uses both forms, with the FR-44 requiring higher liability limits; Illinois uses the SR-22. A filing usually has to stay in place for a set period.
Auto coverageFR-44 and SR-22 in Florida: what they are and how to get one
See also: Liability coverage, Bodily injury and property damage liability
Not a real coverage, but what people usually mean by it: liability plus collision and comprehensive on your own car. It still has limits and deductibles, and it does not automatically include things like rental reimbursement or gap coverage.
Auto coverageWhat "full coverage" actually means
See also: Collision coverage, Comprehensive coverage, Liability coverage
Pays the difference between what your car is worth and what you still owe on the loan or lease if the car is a total loss. Worth a look on a new, financed or leased car, which can be worth less than the balance for the first few years.
Auto coverageGap insurance on a new or leased car
See also: Actual cash value, Lienholder, Lessor
The most common homeowners policy form for a house you own and live in. It covers the building against anything the policy does not specifically exclude, and your belongings against a named list of causes.
The policy for a condo or co-op unit. The association’s master policy covers the building and common areas; the HO-6 covers the inside of your unit, your belongings, your liability and often a share of an association assessment.
Home coverageCondo insurance (HO-6): what the association covers and what you doCondo owners after Surfside: inspections, reserves, special assessments and loss assessment coverage
See also: Loss assessment coverage, Special assessment
A separate, usually larger deductible on a home policy that applies to damage from a named hurricane instead of the ordinary deductible. It is often set as a percentage of the dwelling coverage rather than a flat amount. In Florida, almost every home policy has one.
Home coverageHurricane deductibles, explainedYour hurricane-season insurance checklist
See also: Deductible, Named storm, Wind mitigation inspection
An agent who represents several insurance companies rather than one, and can compare them for you. A captive agent sells one company’s policies. Elona is an independent agent.
Independent agent vs going direct: what's the difference?
See also: Carrier
The company that owns a leased car and lets you drive it. It is named on the policy as an additional insured and sets the coverage the lease requires, which is usually more than the state minimum.
Auto coverageGap insurance on a new or leased car
See also: Lienholder, Gap coverage
Pays for injuries or damage you cause to other people and their property, and usually the cost of defending a lawsuit about it. It never pays for your own car, house or belongings. Every auto, home and renters policy has it.
Minimum coverage — what does that really mean?What "full coverage" actually meansWhat an umbrella policy is, and who should think about one
See also: Bodily injury and property damage liability, Umbrella policy, Limit
The bank or lender that financed your car or home and holds an interest in it until the loan is paid. It is listed on the policy, usually requires certain coverages, and is paid alongside you when the insured property is damaged.
Auto coverageGap insurance on a new or leased car
See also: Lessor, Collision coverage
The most a policy will pay for a covered loss, set separately for each coverage. Anything above the limit is yours to pay, which is why limits should fit what you have to protect, not just what the law requires.
What does insurance actually cover?How to read your declarations pageWhat an umbrella policy is, and who should think about one
See also: Liability coverage, Umbrella policy
Part of a condo policy that helps pay your share when the association charges every owner for a loss the master policy did not fully cover, such as storm damage to common areas or a liability claim against the association.
Home coverageCondo insurance (HO-6): what the association covers and what you doCondo owners after Surfside: inspections, reserves, special assessments and loss assessment coverage
See also: HO-6, Special assessment
Pays the extra cost of living somewhere else, such as a hotel or a rental, while your home or apartment is unlivable after a covered loss. Found on home, condo and renters policies.
Renters coverageAuto, home or renters?What renters insurance covers (it's more than your stuff)Does my landlord's insurance cover my stuff?
A small street-legal vehicle, often a golf cart built or converted for the road, that is registered and titled like a car and must carry certain safety equipment. Insurers treat an LSV more like a car than a golf cart, so the right policy depends on which one you have.
Golf cart coverageGolf cart vs low-speed vehicle (LSV): why the difference matters
Pays medical bills for you and your passengers after an accident, whoever caused it, up to a modest limit. On a home or renters policy, the similar coverage pays small medical bills for a guest hurt at your place.
Auto coverageFlorida PIP, explained
See also: Personal injury protection
A loss where an item is simply gone and nobody can say how: the ring that slipped off somewhere, the earring that never came home. A standard home policy usually does not cover it; a scheduled valuables policy usually does.
Jewelry & valuables coverageIs my engagement ring covered by homeowners insurance?Your home policy has limits on jewelry, watches and collectibles. Here's what that means
See also: Scheduled personal property
A tropical storm or hurricane that has been given a name by the National Hurricane Center. Some policies, especially boat and home policies in Florida, have rules that apply only once a storm is named: a different deductible, or steps you are expected to take.
Boat & watercraft coverageBoat insurance and hurricane plans in Florida
See also: Hurricane deductible
The federal flood insurance program, run by FEMA and sold through regular insurance agents. It is the most common way to insure a home against flood; private insurers also write flood policies, and the two can differ in what they cover.
Flood coverageNFIP vs private flood insuranceIs flood covered by my home insurance?
See also: Flood zone, Waiting period
A state where your own auto policy pays for your own injuries first after a crash, whoever caused it. Florida is a no-fault state; that is what personal injury protection is for.
Auto coverageMinimum coverage — what does that really mean?Florida PIP, explained
See also: Personal injury protection, At-fault state
When the insurer decides not to continue your policy past the end of its term. It is not a cancellation mid-term, and the insurer has to tell you in advance so you have time to find other coverage. It can happen for reasons that have nothing to do with you.
Home coverageWhy did my renewal go up?What to do if your home insurer non-renews you
See also: Premium
The part of a home policy for things on your property that are not attached to the house: a fence, a shed, a detached garage, a pool enclosure. Usually set as a percentage of the dwelling coverage.
Home coverageHow to read your declarations page
See also: Dwelling coverage
Coverage on your own auto policy that pays part of your own medical bills and lost income after a crash, whoever caused it. Florida requires it on every registered car; Illinois does not use it.
Auto coverageMinimum coverage — what does that really mean?Florida PIP, explained
See also: No-fault state, Medical payments coverage
In pet insurance, an illness or injury your pet showed signs of before the policy started or during its waiting period. Plans generally do not cover treatment for it, though some will cover a condition that has fully resolved.
Pet coveragePre-existing conditions, and accident-only vs accident-and-illness pet plans
See also: Waiting period
What you pay for the policy, whether monthly, every six months or yearly. It is set from many things at once: where you live, what is insured, your coverage and deductibles, your record, and what claims cost in your area.
Why did my renewal go up?Why Florida home insurance costs so much, and what actually helps
See also: Deductible, Bundling
What it costs to replace something with a new one of the same kind and quality, without a deduction for age or wear. A policy that pays replacement cost is the one that actually re-buys your things or rebuilds your home.
Home coverageWhat does insurance actually cover?Replacement cost vs actual cash value
See also: Actual cash value, Dwelling coverage
Another word for an endorsement: an add-on that changes what a policy covers. People most often meet it as a “jewelry rider” that schedules a ring or a watch above the policy’s built-in limit.
See also: Endorsement, Scheduled personal property
Listing a specific valuable item on your policy at an agreed value, so it is covered above the built-in limit for its category and usually for more kinds of loss, including mysterious disappearance. Done by endorsement, often with an appraisal.
Jewelry & valuables coverageYour home policy has limits on jewelry, watches and collectibles. Here's what that meansIs my engagement ring covered by homeowners insurance?
See also: Appraisal, Rider, Mysterious disappearance
A one-off charge a condo or homeowners association makes to every owner to cover a cost its budget or master policy did not, such as a major repair, a reserve shortfall or an uninsured loss. Loss assessment coverage may help with the part caused by a covered loss.
Home coverageCondo owners after Surfside: inspections, reserves, special assessments and loss assessment coverage
See also: Loss assessment coverage, HO-6
Extra liability coverage that sits above your auto, home or boat policies and takes over when a claim against you is bigger than their limits. It covers what you owe other people, never your own car, house or belongings.
Umbrella coverageWhat an umbrella policy is, and who should think about oneHow an umbrella sits on top of your auto and home
See also: Liability coverage, Limit
Pays for your injuries when the driver who hit you has no insurance, or not enough, or cannot be found. Illinois requires uninsured motorist coverage on every auto policy; in Florida it is optional, and often worth having.
Auto coverageMinimum coverage — what does that really mean?Uninsured motorist coverage: why it matters
See also: Liability coverage, Bodily injury and property damage liability
The time between buying a policy and the day it starts paying. Flood policies usually have one, which is why they should be bought before a storm is on the way; pet insurance has one before illness coverage begins.
Flood coverageThe 30-day waiting period: why to buy flood insurance before hurricane seasonPre-existing conditions, and accident-only vs accident-and-illness pet plans
See also: National Flood Insurance Program, Pre-existing condition
A Florida inspection that records how well a home stands up to hurricane winds: the roof shape and attachment, the roof covering, water barriers and protection on windows and doors. The form goes to your insurer, which must offer credits for the features it verifies.
Home coverageWind mitigation, explained
See also: Hurricane deductible, 4-point inspection
Don’t see a word? Ask Elona and it will probably end up here.