Insurance Terms

Insurance Glossary

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

General

Accidental Death Benefit

Accidental Death BenefitDefinitionAn Accidental Death Benefit is a policy feature that provides an additional payment to...

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Act of God

Act of GodDefinitionAn Act of God refers to a natural event that occurs without human intervention and cannot be reasona...

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Actual Cash Value (ACV)

Actual Cash Value (ACV) DefinitionActual Cash Value (ACV) refers to the amount an item is worth at the time of loss, tak...

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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, often referred to as an open-perils policy, is a comprehensive form of insu...

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Base Flood Elevation (BFE)

Base Flood Elevation (BFE)DefinitionBase Flood Elevation (BFE) refers to the computed elevation to which floodwater is a...

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Beneficiary

BeneficiaryDefinitionA beneficiary is the person or entity designated to receive the financial benefits or proceeds from...

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Bodily Injury Liability

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

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Business Interruption Insurance

Business Interruption InsuranceDefinitionBusiness Interruption Insurance refers to an important aspect of an insurance p...

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Business Owner’s Policy (BOP)

Business Owner’s Policy (BOP)DefinitionA Business Owner’s Policy (BOP) is an insurance package designed to meet the uniq...

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Claim

ClaimDefinitionA claim is a formal request made by an insured individual or business to an insurance company for compens...

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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 a critical component of an auto insurance policy that helps pay...

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Commercial Auto Insurance

Commercial Auto InsuranceDefinitionCommercial Auto Insurance is a specialized policy designed to protect vehicles used f...

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Commercial Property Insurance

Commercial Property InsuranceDefinitionCommercial Property Insurance is a fundamental coverage designed to protect busin...

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Commercial Umbrella Policy

Commercial Umbrella PolicyDefinitionA Commercial Umbrella Policy is an insurance policy that provides additional liabili...

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Comprehensive Coverage

Comprehensive Coverage Definition Comprehensive Coverage refers to an important aspect of an insurance policy that prote...

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Comprehensive Deductible

Comprehensive DeductibleDefinitionA Comprehensive Deductible refers to the out-of-pocket amount a policyholder must pay ...

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Copayment (Copay)

Copayment (Copay)DefinitionA Copayment (Copay) is a fixed amount that an insured individual pays out of pocket when rece...

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Coverage Period

Coverage PeriodDefinitionCoverage Period refers to the specific duration of time during which an insurance policy remain...

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Cyber Liability Insurance

Cyber Liability InsuranceDefinitionCyber Liability Insurance refers to a specialized policy designed to protect business...

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Deductible

DeductibleDefinitionA deductible refers to an important aspect of an insurance policy. It is the amount you agree to pay...

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Depreciation

DepreciationDefinitionDepreciation refers to the reduction in value of an asset over time due to factors such as wear an...

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Dwelling Coverage

Dwelling CoverageDefinitionDwelling Coverage refers to an important aspect of a homeowner’s insurance policy that protec...

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Elevation Certificate

Elevation CertificateDefinitionAn Elevation Certificate is a vital document used to determine a property’s elevation rel...

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Endorsement

EndorsementDefinitionAn endorsement in insurance is a formal amendment to an existing policy that alters, adds, or remov...

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Excess Coverage

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

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Exclusion

ExclusionDefinitionAn exclusion in insurance refers to a specific condition, situation, or item that is not covered by a...

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Extended Replacement Cost

Extended Replacement CostDefinitionExtended Replacement Cost refers to an important aspect of an insurance policy that p...

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Flood Proofing

Flood ProofingDefinitionFlood proofing refers to a set of strategies and construction techniques designed to minimize fl...

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Flood Zone

DefinitionFlood Zone refers to an important aspect of an insurance policy. A flood zone is a geographical area that FEMA...

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Gap Insurance

Gap InsuranceDefinitionGap Insurance, or Guaranteed Asset Protection insurance, is an optional coverage designed to brid...

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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 PeriodDefinitionThe Grace Period refers to a specific span of time after an insurance premium payment is due, duri...

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Hazard Insurance

Hazard InsuranceDefinitionHazard insurance refers to a key component of many property insurance policies that protects a...

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Health Insurance Deductible

Health Insurance Deductible DefinitionHealth Insurance Deductible refers to the amount you are responsible for paying ou...

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Hurricane Deductible

Hurricane DeductibleDefinitionA Hurricane Deductible refers to an important aspect of an insurance policy that applies s...

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Indemnity

IndemnityDefinitionIndemnity refers to an important aspect of an insurance policy. It represents the principle that insu...

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Liability Coverage

Liability CoverageDefinitionLiability Coverage refers to an important aspect of an insurance policy. It provides financi...

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Loss of Use Coverage

Loss of Use Coverage Definition Loss of Use Coverage refers to an important aspect of an insurance policy that helps cov...

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Marine Insurance

Marine InsuranceDefinitionMarine Insurance refers to an important aspect of an insurance policy designed to protect good...

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Mitigation Discount

Mitigation DiscountDefinitionMitigation Discount refers to an important aspect of an insurance policy that provides poli...

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Named Perils Policy

Named Perils PolicyDefinitionA Named Perils Policy refers to an important aspect of an insurance policy that provides co...

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Named Storm Exclusion

Named Storm ExclusionDefinitionNamed Storm Exclusion refers to an important aspect of an insurance policy. It is a claus...

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National Flood Insurance Program (NFIP)

National Flood Insurance Program (NFIP)DefinitionThe National Flood Insurance Program (NFIP) is a federally backed initi...

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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 MaximumDefinitionThe Out-of-Pocket Maximum refers to the most you will pay for covered health care service...

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Peril

Peril Definition In the world of insurance, a peril refers to a specific cause of loss or damage that is covered or excl...

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Personal Injury Protection (PIP)

Personal Injury Protection (PIP)DefinitionPersonal Injury Protection (PIP) refers to a vital component of auto insurance...

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Personal Property Coverage

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

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Policy Limit

Policy LimitDefinitionPolicy Limit refers to the maximum amount of money an insurance company will pay out for a covered...

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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 any medical or physical condition that existed before...

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Premium

PremiumDefinitionA premium is the amount of money an individual or business pays for an insurance policy. This payment e...

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Product Liability Insurance

Product Liability InsuranceDefinitionProduct Liability Insurance is a type of business insurance that protects manufactu...

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Professional Liability (E&O)

Professional Liability (E&O)DefinitionProfessional Liability Insurance, often called Errors and Omissions (E&O) insuranc...

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Property Damage Liability

Property Damage LiabilityDefinitionProperty Damage Liability refers to an important aspect of an insurance policy. It pr...

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Replacement Cost Value (RCV)

Replacement Cost Value (RCV)DefinitionReplacement Cost Value (RCV) refers to the amount it would cost to replace a damag...

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Rider

RiderDefinitionA rider refers to an important aspect of an insurance policy. It is an amendment or addition that modifie...

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Risk Assessment

Risk AssessmentDefinition:Risk Assessment refers to the process an insurance company uses to evaluate the potential for ...

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Salvage Title

Salvage TitleDefinitionA Salvage Title is an official state document that indicates a vehicle has sustained significant ...

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Scheduled Personal Property

Scheduled Personal PropertyDefinitionScheduled Personal Property refers to a specific endorsement or add-on to a homeown...

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SR-22 Insurance

SR-22 InsuranceDefinitionSR-22 Insurance refers to an important aspect of an insurance policy that serves as a certifica...

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Storm Surge

Storm SurgeDefinitionStorm Surge refers to the abnormal rise of seawater levels generated by the force and pressure of a...

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Subrogation

SubrogationDefinitionSubrogation refers to an important aspect of an insurance policy. It is the right of an insurance c...

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Term Life Insurance

Term Life InsuranceDefinitionTerm Life Insurance refers to a type of life insurance policy that provides coverage for a ...

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TWIA ({state} Windstorm Insurance Association)

DefinitionTWIA (NY Windstorm Insurance Association) refers to an important aspect of an insurance policy designed to pro...

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Umbrella Policy

Umbrella PolicyDefinitionAn Umbrella Policy is a type of supplemental liability insurance that provides additional cover...

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Underinsured Motorist Coverage (UIM)

Underinsured Motorist Coverage (UIM)DefinitionUnderinsured Motorist Coverage (UIM) refers to an important aspect of an a...

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Underwriting

UnderwritingDefinitionUnderwriting refers to a critical process in which an insurance company evaluates the risk associa...

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Uninsured Motorist Coverage (UM)

Uninsured Motorist Coverage (UM)DefinitionUninsured Motorist Coverage (UM) refers to an important aspect of an insurance...

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Universal Life Insurance

Universal Life InsuranceDefinitionUniversal Life Insurance is a flexible type of permanent life insurance that combines ...

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Whole Life Insurance

Whole Life InsuranceDefinitionWhole Life Insurance is a form of permanent life insurance designed to provide lifelong co...

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Windstorm Deductible

Windstorm DeductibleDefinitionA Windstorm Deductible is a specific type of deductible applied to property insurance poli...

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Workers’ Compensation

Workers’ CompensationDefinitionWorkers’ Compensation refers to an important aspect of insurance designed to protect empl...

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