Insurance Terms

Insurance Glossary

Understanding insurance terms made simple. Find clear definitions and explanations for key insurance concepts.

General

Accidental Death Benefit

Accidental Death BenefitDefinitionThe Accidental Death Benefit refers to an important aspect of an insurance policy that...

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Act of God

Act of GodDefinitionAn Act of God refers to natural events or phenomena that occur without human intervention and are of...

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Actual Cash Value (ACV)

Actual Cash Value (ACV) Definition Actual Cash Value (ACV) refers to the value of property at the time of a loss, accoun...

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Aggregate Limit

Aggregate LimitDefinitionThe Aggregate Limit refers to the maximum amount an insurance company will pay for all covered ...

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All-Risk Policy

All-Risk PolicyDefinitionAn All-Risk Policy is a type of insurance coverage that protects against a broad range of losse...

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Base Flood Elevation (BFE)

Base Flood Elevation (BFE)DefinitionBase Flood Elevation (BFE) is a crucial measurement used within floodplain managemen...

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Beneficiary

BeneficiaryDefinitionA beneficiary is the individual or entity designated to receive the proceeds from an insurance poli...

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Bodily Injury Liability

Bodily Injury LiabilityDefinitionBodily Injury Liability refers to an important aspect of an insurance policy that provi...

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Business Interruption Insurance

Business Interruption Insurance DefinitionBusiness Interruption Insurance refers to an important aspect of an insurance ...

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Business Owner’s Policy (BOP)

Business Owner’s Policy (BOP)DefinitionA Business Owner’s Policy (BOP) is a comprehensive insurance package specifically...

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Claim

ClaimDefinitionA claim refers to a formal request made by an insured individual or business to their insurance provider,...

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Coinsurance

CoinsuranceDefinitionCoinsurance refers to an important aspect of an insurance policy. It represents the percentage of c...

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Collision Coverage

Collision CoverageDefinitionCollision Coverage refers to an important aspect of an auto insurance policy that helps pay ...

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Commercial Auto Insurance

Commercial Auto InsuranceDefinitionCommercial Auto Insurance refers to an important aspect of an insurance policy that p...

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Commercial Property Insurance

Commercial Property InsuranceDefinitionCommercial Property Insurance refers to an important aspect of an insurance polic...

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Commercial Umbrella Policy

Commercial Umbrella PolicyDefinitionA Commercial Umbrella Policy is an additional layer of liability protection that goe...

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Comprehensive Coverage

Comprehensive CoverageDefinitionComprehensive Coverage refers to an important aspect of an auto insurance policy that pr...

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Comprehensive Deductible

Comprehensive DeductibleDefinitionComprehensive deductible refers to the amount a policyholder must pay out of pocket be...

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Copayment (Copay)

Copayment (Copay)DefinitionCopayment (Copay) refers to an important aspect of an insurance policy. It is a predetermined...

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Coverage Period

Coverage PeriodDefinitionThe coverage period refers to the specific length of time during which an insurance policy rema...

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Cyber Liability Insurance

Cyber Liability InsuranceDefinitionCyber Liability Insurance refers to an important aspect of an insurance policy that p...

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Deductible

DeductibleDefinitionIn insurance, a deductible is the amount of money you agree to pay out of pocket before your insuran...

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Depreciation

DepreciationDefinitionDepreciation refers to an important aspect of an insurance policy. It represents the decrease in t...

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Dwelling Coverage

Dwelling CoverageDefinitionDwelling Coverage refers to an important aspect of an insurance policy that protects the phys...

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Elevation Certificate

Elevation CertificateDefinitionAn Elevation Certificate is a vital document often required for flood insurance policies....

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Endorsement

EndorsementDefinitionAn endorsement is a formal amendment or addition to an insurance policy that modifies its terms, co...

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Excess Coverage

Excess CoverageDefinitionExcess Coverage refers to an important aspect of an insurance policy that provides additional p...

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Exclusion

ExclusionDefinitionAn exclusion is a specific condition, situation, or type of damage that is not covered under an insur...

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Extended Replacement Cost

DefinitionExtended Replacement Cost refers to an important aspect of an insurance policy that provides additional protec...

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Flood Proofing

Flood ProofingDefinitionFlood Proofing refers to methods and construction practices used to minimize or prevent flood da...

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Flood Zone

Flood ZoneDefinitionA Flood Zone refers to a geographic area identified by the Federal Emergency Management Agency (FEMA...

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Gap Insurance

Gap InsuranceDefinitionGap Insurance refers to an important aspect of an insurance policy that covers the difference bet...

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General Liability Insurance

General Liability InsuranceDefinitionGeneral Liability Insurance refers to an important aspect of an insurance policy th...

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Grace Period

Grace PeriodDefinitionGrace Period refers to an important aspect of an insurance policy that provides the policyholder a...

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Hazard Insurance

Hazard InsuranceDefinitionHazard Insurance refers to an important aspect of an insurance policy, specifically the part t...

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Health Insurance Deductible

Health Insurance DeductibleDefinitionA Health Insurance Deductible refers to the amount of money you are required to pay...

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Hurricane Deductible

Hurricane DeductibleDefinitionA hurricane deductible is a specific type of insurance deductible that applies exclusively...

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Indemnity

IndemnityDefinitionIndemnity refers to an important aspect of an insurance policy that ensures financial protection from...

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Liability Coverage

Liability CoverageDefinitionLiability Coverage refers to an important aspect of an insurance policy that provides financ...

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Loss of Use Coverage

Loss of Use CoverageDefinitionLoss of Use Coverage refers to an important aspect of an insurance policy. It provides rei...

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Marine Insurance

Marine InsuranceDefinitionMarine Insurance refers to an important aspect of an insurance policy that provides protection...

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Mitigation Discount

Mitigation DiscountDefinitionMitigation Discount refers to an important aspect of an insurance policy. It is a discount ...

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Named Perils Policy

Named Perils PolicyDefinitionA Named Perils Policy refers to an important aspect of an insurance policy where only speci...

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Named Storm Exclusion

Named Storm ExclusionDefinitionNamed Storm Exclusion refers to a key provision within certain property or homeowners ins...

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National Flood Insurance Program (NFIP)

National Flood Insurance Program (NFIP)DefinitionThe National Flood Insurance Program (NFIP) is a federal initiative est...

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Ordinance or Law Coverage

Ordinance or Law CoverageDefinitionOrdinance or Law Coverage refers to an important aspect of an insurance policy that h...

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Out-of-Pocket Maximum

Out-of-Pocket MaximumDefinitionOut-of-Pocket Maximum refers to an important aspect of an insurance policy. It represents...

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Peril

PerilDefinitionIn insurance, a peril refers to a specific cause of loss or damage that is covered or excluded by an insu...

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Personal Injury Protection (PIP)

Personal Injury Protection (PIP)DefinitionPersonal Injury Protection (PIP) refers to an important aspect of an insurance...

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Personal Property Coverage

Personal Property CoverageDefinitionPersonal Property Coverage refers to an important aspect of an insurance policy. It ...

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Policy Limit

Policy LimitDefinitionPolicy Limit refers to the maximum amount an insurance company will pay for a covered loss under a...

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Policyholder

PolicyholderDefinitionA policyholder is the individual or entity that owns an insurance policy. This person or organizat...

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Pre-Existing Condition

Pre-Existing ConditionDefinitionA Pre-Existing Condition refers to an important aspect of an insurance policy that invol...

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Premium

PremiumDefinitionA premium is the amount you pay to an insurance company to keep your coverage active. It’s essentially ...

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Product Liability Insurance

Product Liability InsuranceDefinitionProduct Liability Insurance refers to an important aspect of an insurance policy th...

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Professional Liability (E&O)

Professional Liability (E&O)DefinitionProfessional Liability (E&O), or Errors and Omissions insurance, is a specialized ...

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Property Damage Liability

Property Damage LiabilityDefinitionProperty Damage Liability refers to an important aspect of an insurance policy that h...

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Replacement Cost Value (RCV)

Replacement Cost Value (RCV)DefinitionReplacement Cost Value (RCV) refers to the amount it would take to replace or repa...

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Rider

RiderDefinitionA rider is an addition or modification to an existing insurance policy that alters, extends, or restricts...

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Risk Assessment

Risk AssessmentDefinitionRisk Assessment refers to a critical process within the insurance industry that involves identi...

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Salvage Title

Salvage TitleDefinitionA salvage title refers to a legal designation given to a vehicle that has been damaged to the ext...

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Scheduled Personal Property

DefinitionScheduled Personal Property refers to an important aspect of an insurance policy. It involves listing individu...

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SR-22 Insurance

SR-22 InsuranceDefinitionSR-22 Insurance is not actually a type of insurance policy but rather a certificate that verifi...

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Storm Surge

Storm SurgeDefinitionStorm Surge refers to a rise in sea level that occurs during a tropical storm or hurricane when str...

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Subrogation

SubrogationDefinitionSubrogation refers to an important aspect of an insurance policy. In simple terms, it is the legal ...

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Term Life Insurance

DefinitionTerm Life Insurance refers to a life insurance policy that provides coverage at a fixed rate of payments for a...

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TWIA ({state} Windstorm Insurance Association)

TWIA (SC Windstorm Insurance Association)DefinitionTWIA (SC Windstorm Insurance Association) refers to an important aspe...

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Umbrella Policy

Umbrella PolicyDefinitionAn Umbrella Policy is a form of liability insurance designed to provide additional coverage bey...

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Underinsured Motorist Coverage (UIM)

Underinsured Motorist Coverage (UIM) Definition Underinsured Motorist Coverage (UIM) is a vital component of an auto ins...

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Underwriting

UnderwritingDefinitionUnderwriting refers to an important aspect of an insurance policy. It is the process by which an i...

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Uninsured Motorist Coverage (UM)

Uninsured Motorist Coverage (UM)DefinitionUninsured Motorist Coverage (UM) is an essential component of an auto insuranc...

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Universal Life Insurance

DefinitionUniversal Life Insurance is a type of permanent life insurance that combines a death benefit with a cash value...

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Whole Life Insurance

Whole Life InsuranceDefinitionWhole Life Insurance is a type of permanent life insurance policy that provides coverage f...

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Windstorm Deductible

Windstorm DeductibleDefinitionA Windstorm Deductible is a specific type of insurance deductible that applies when damage...

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Workers’ Compensation

DefinitionWorkers’ Compensation refers to an important aspect of an insurance policy designed to protect both employees ...

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