Actual Cash Value (ACV): The cost to replace your property with new ones of similar kind and quality, minus depreciation. This is how much your property is worth today, considering its age and wear.
Adjuster: An insurance professional who evaluates the damage and determines the insurer's liability under an insurance policy. They handle the settlement of insurance claims.
Agent/Broker: Licensed professionals who act as intermediaries between you and the insurance company, helping you to find a policy that fits your needs. (Hint: That's us!)
Beneficiary: The person or entity chosen to receive the benefits from a life insurance policy or retirement account in the event of the policyholder's death.
Binder: A temporary document that serves as a placeholder until the formal insurance policy is issued, providing immediate coverage.
Claim: An official request made by the policyholder to the insurance company for compensation or coverage for a covered loss or policy event.
Coinsurance: A cost-sharing requirement under a health insurance policy that stipulates that the policyholder and the insurance company will share the costs of covered health care services after a deductible is met.
Collision Coverage: Auto insurance coverage that pays for damage to the policyholder's car resulting from a collision, regardless of who is at fault.
Commercial Property Insurance: Provides coverage for buildings, inventory, equipment, tools, and more against damage or loss due to events like fire, theft, or natural disasters.
Comprehensive Coverage: Auto insurance coverage that pays for damages to your vehicle caused by events other than collisions, such as theft, fire, vandalism, or hitting an animal.
Coverage: The scope of protection provided under an insurance policy, including what is and isn't covered.
Deductible: A set amount the policyholder must pay out-of-pocket before the insurance company pays a claim.
Dependent Coverage: Insurance coverage extended to the spouse and/or children of the primary insured, under a family or group policy.
Depreciation: The reduction in value of property over time due to wear and tear or obsolescence.
Directors and Officers (D&O) Insurance: Liability insurance that covers the directors and officers of a company for decisions and actions taken within the scope of their regular duties.
Employment Practices Liability Insurance (EPLI): Provides protection to employers against claims made by employees alleging discrimination, wrongful termination, harassment, and other employment-related issues.
Endorsement: An amendment added to an insurance policy to modify its terms by adding, excluding, or altering coverage.
Errors and Omissions (E&O) Insurance: Professional liability insurance that protects companies and their workers against claims of inadequate work or negligent actions.
Excess and Surplus Lines Insurance: Insurance provided by insurers not licensed in the insured's state, typically used for unusual or higher-risk coverage not available through licensed insurers.
Exclusion: Specific conditions or circumstances for which the policy does not provide coverage.
Flood Insurance: Insurance that protects property owners against losses from flooding; typically not included in standard homeowners or renters insurance policies.
General Liability Insurance: Protects against financial loss due to bodily injury, property damage, medical expenses, libel, slander, defending lawsuits, and settlement bonds or judgments required during an appeal procedure.
Group Health Insurance: An insurance plan that provides healthcare coverage to a select group of people, such as employees of a company.
Group Life Insurance: Life insurance offered to a group of people under one contract, usually by an employer for its employees.
Indemnity: Compensation for damage or loss. In insurance, it refers to the payment made to a policyholder to cover a loss.
Lapse: The termination of an insurance policy due to failure to pay the required renewal premium.
Liability Insurance: Provides protection against claims resulting from injuries and damage to people and/or property.
Limit: The maximum amount an insurance policy will pay for a covered loss.
Long-Term Disability Insurance: Insurance that pays a percentage of an employee's salary for an extended period of time if they are unable to work due to illness or injury.
Named Perils: Specifies the exact types of risk covered by an insurance policy, such as fire, theft, or natural disaster.
Peril: A specific risk or cause of loss covered by an insurance policy, such as a fire, windstorm, or theft.
Personal Property: Items owned by an individual or business that are movable, in contrast to real property like land or buildings.
Policyholder: The individual or entity owning an insurance policy.
Premium: The amount paid for an insurance policy, typically monthly, quarterly, or annually.
Replacement Cost: The cost to replace damaged property with new property of similar kind and quality, without deducting for depreciation.
Renewal: The process of continuing an insurance policy into a new term from the old term.
Rider: An addition to an insurance policy that changes or adds to the coverage or terms.
Short-Term Disability Insurance: Provides a portion of your income for a short period if you are temporarily unable to work due to illness or injury.
Umbrella Policy: Additional liability coverage that extends beyond the limits of the insured's home, auto, or watercraft insurance.
Underwriter: A professional who evaluates the risks involved when insuring people or assets and establishes the pricing.
Workers' Compensation: Insurance that provides medical benefits and wage replacement to employees injured in the course of employment.