To assist you in understanding insurance, we have included an insurance glossary, as well as explanations of various products and how they are best utilized by you. Please enjoy, and come back often, this part of the site is always being updated!  (click on the 'find in this page...' function on your browser to find specific information you are looking for)

Actual Cash Value
An amount equal to the cost of lost or damaged property less depreciation.

Amount of Coverage
A stated dollar amount covered by an insurance policy or a specific section of an insurance policy.

Annual Premium
A yearly amount that a policyholder agrees to pay to an insurer for an insurance policy.

Annuity
A contract between a private individual and a life insurance company. The individual pays a sum of money that is invested and in return the insurance company makes periodic payments to the individual as specified in the contract. Annuities are primarily used as a vehicle for retirement income.

Appraisal
A survey by a Claims Representative or Claims Appraiser estimating the amount of damage to property and the cost to repair the damage.

Appreciation (appreciate)
The amount by which a piece of property or item becomes more valuable over time.

Approved Claim
An insurance claim that an insurer has agreed to pay within the limits set forth in an insurance policy.

Arbitration Clause
A provision in an insurance policy which provides a procedure for resolving disputes between the insured and the insurer, typically about claim settlements. A typical provision might be that if the insurer and insured cannot agree on an appropriate claim settlement, each will appoint an appraiser, and a neutral umpire will also be selected. A decision by any two of the three establishes the settlement amount and binds both parties to it.

Asset(s)
Any possession that has recognized market value. Real estate, your home, bank accounts and investments are all examples of assets.
Attached Structures
In a homeowners policy, structures such as garages, patios and other structures physically attached to a dwelling.

Beneficiary
The person or entity, such as a trust fund, named in a life insurance policy as the recipient of policy proceeds in the event of the policyholder's death.

Common carrier
A commercial transportation company such as an airlines or bus company Accidental death benefits are often increased if death occurs while on a common carrier.

Conditions
Provisions that set forth the rights, duties and responsibilities of the parties to an insurance contract. Conditions may be found anywhere in an insurance policy.

Cost of Living Increase Benefit
With respect to disability income insurance, a provision or endorsement that can be added to provide that benefits payable under the policy will increase by a specified percentage each year.

Covered Accident
An event covered by an insurance policy that is unforeseen, unexpected and unintended.

Covered Hazard
A situation or condition specifically covered by an insurance policy. 

Damages
A sum of money that one party is legally obligated to pay to another party as compensation for injury or other loss.

Death Benefit
An amount of money paid to the beneficiary or beneficiaries named in an insurance policy if the insured dies.

Declarations
The section of an insurance policy that provides detailed information such as the name and address of the insured, the property insured, its location and description, the policy period, the amount of insurance coverage and applicable premiums. This information is also referred to as a Declaration Page.

Deductible
An amount that the policyholder has agreed to pay on each claim.

Depreciation (depreciate)
A decrease in the value of property over time.

Disability (disabled)
A condition due to sickness or injury, as verified by a doctor, that curtails a person's ability to carry on normal pursuits. A disability may be partial or total, and temporary or permanent.

Disability Income Insurance
Insurance that provides periodic payments when an insured is unable to work due to illness or injury.

Dwelling Coverage
A section of a homeowners insurance policy that covers a house and attached structures against fire, theft, wind and other perils.

Endorsement
An amendment to a policy written to cover unique items or special circumstances. An endorsement is also a change to a policy that is made during the policy's term and attached to the policy to modify the terms of the insurance contract.

Excluded Risks (exclusions)
Certain risks, persons, property or locations that an insurance policy states it will not cover.

Face Value (Face amount)
The amount stated on the face of a life insurance policy to be paid in the case of death or policy maturity. It does not include dividends or additional amounts payable under accidental death or other special provisions.

Funeral Expenses
Costs involved with a funeral, including undertaker's fees, coffins, urns, burial plots and other items.

Group Insurance
Insurance written on a number of people under a single master policy issued to an employer, an association or members of a specific group of individuals with common affiliations. 

Heir (heirs)
A person or organization that receives the property of a deceased person, especially by law or by being designated in a will.

Homeowners Policy
A Property and Liability Insurance contract that provides insurance against the covered perils to which a homeowner is exposed.

Home Protection Plan
An insurance policy or a service contract that covers mechanical breakdown of certain major systems and appliances in a home. Specific coverages vary by state and product.

Inflation Guard Coverage
Provides for automatic periodic increases in the amount of insurance on buildings to keep pace with inflation and the resulting increase in building replacement costs. This coverage can be added to a homeowners insurance policy by an endorsement.

Insurance Adjuster (Claims Adjuster)
A person who investigates and settles losses for an insurance carrier.

Insurance Agent (Insurance Agency)
An authorized representative of an insurance company who sells and services insurance contracts.

Insurance Carrier (Insurance Company or Insurer)
A company that issues an insurance policy to a policyholder.

Insurance Policy
A formal written contract of insurance that promises to pay specific losses and render certain services when certain events happen.

Insurance Premium
An amount that a policyholder agrees to pay to the insurance company for a policy.

Insured Perils
Causes of a possible accident, loss, or claim for which a policyholder is insured.

Irrevocable Life Insurance Trust
A trust in which the creator of the trust does not reserve the right to reacquire trust property (the life insurance policy).

Life Insurance
A policy of insurance that provides for payment of a specified amount to either his or her estate or to a designated beneficiary upon the insured's death.

Long-term Disability Income Insurance
Insurance issued to an employer (group) or an individual to provide a reasonable replacement of a portion of earned income lost through serious and prolonged illness or injury.

Loss Assessment
Coverage that protects a condo unit owner from fees assessed by a condo's board of directors for unexpected expenses due to uninsured losses, insurance deductibles, losses in excess of the limit of insurance and other factors.

Mortgage Disability Insurance
Insurance that covers a specified number of payments on a home loan when an insured is unable to work due to illness or injury and rendered disabled as verified by a medical doctor.

Mortgage Life Insurance
Insurance that pays off a home loan completely or partially (the amount is stated in the policy) if an insured dies.

Named (Named Insured)
The individual or organization with whom an insurance contract is made and who is listed as the insured in the policy declarations. Additional individuals or organizations may also be added. For example, a homeowner and a mortgage lender may both be a Named Insured.

No-Fault Insurance
A type of auto insurance that compensates victims of an accident regardless of which driver was at fault. No-fault insurance restricts the victim's right to sue when the loss falls below a certain threshold, minimizing legal costs.

Occurence
An accident or loss that results in bodily injury or property damage.

Peril
The cause of a possible accident, loss or claim.

Permanent Life Insurance
A type of life insurance that includes both a death benefit and a cash value component.

Personal Insurance (Individual Insurance)
An insurance policy purchased by a private individual which provides protection to the policyholder and his or her family.

Personal Liability
A legally enforceable obligation to pay incurred by a private individual

Pet Insurance
An insurance covering veterinary care for pets.

Policy
The printed document issued to the policyholder by a company stating the terms of the insurance contract.

Premium
The payment, or regular periodic payments, that a policyholder makes to own an insurance policy.

Proof of Insurance
A document that verifies the types and amounts of insurance covered in a particular policy.

Renters Insurance
An insurance policy renters can buy to protect personal belongings and insure against liability.

Replacement Cost
An amount needed to replace damaged property with new; depreciation is not taken into consideration.

Replacement Coverage
Provides that a loss will be paid on a replacement cost basis.

Rider
An amendment to an insurance policy that modifies the policy by expanding or restricting its benefits or excluding certain conditions from coverage.

Term Life Insurance
Insurance that covers the insured for a certain period of time known as the "term." The policy pays death benefits only if the insured dies during the term.

Under-insured
Having insurance coverage that is inadequate to pay for a loss or liability.