Accident — An unexpected event that causes injury or damage.

Accidental Death & Dismemberment (AD&D) — Pays benefits for accidental death or loss of limbs.

Actual Cash Value (ACV) — The value of property minus depreciation.

Actuary — A professional who analyzes risk and helps set insurance rates.

Additional Living Expenses (ALE) — Pays for temporary housing if your home becomes uninhabitable.

Adjuster — Investigates and settles insurance claims.

Admitted Carrier — An insurer licensed and regulated by the state.

Agent — A licensed individual who sells and services insurance.

Aggregate Limit — The maximum an insurer pays during a policy period.

All‑Risk (Open Peril) — Covers all causes of loss unless excluded.

Appraisal — An estimate of property value.

Arbitration — A dispute‑resolution process outside of court.

Assigned Risk — State‑provided insurance for high‑risk drivers.

Auto Liability — Covers injuries or damage you cause while driving.

Binder — Temporary proof of insurance.

Bodily Injury Liability — Pays for injuries you cause to others in an auto accident.

Boiler & Machinery (Equipment Breakdown) — Covers mechanical or electrical equipment failures.

Bond — A guarantee of performance or payment, often used in construction.

Builders Risk — Covers buildings under construction.

Business Interruption Insurance — Replaces lost income after a covered event.

Business Owner’s Policy (BOP) — Bundles property and liability coverage for small businesses.

Cancellation — Ending a policy before its expiration.

Catastrophe (CAT) — A large‑scale event causing widespread damage.

Claim — A request for payment after a loss.

Claimant — The person filing a claim.

Coinsurance (Property) — A requirement to insure property to a percentage of its value.

Collision Coverage — Pays for damage to your vehicle from a crash.

Comprehensive Coverage — Pays for non‑collision losses like theft or hail.

Condo Insurance (HO‑6) — Covers condo interiors, belongings, and liability.

Contingent Liability — Liability that may arise from the actions of others.

Coverage Limit — The maximum an insurer will pay.

Credit-Based Insurance Score — A score used to help predict claim risk.

Declarations Page — The summary of coverages, limits, and premiums.

Deductible — What you pay before insurance pays.

Depreciation — Loss of value over time.

Direct Loss — Damage caused directly by a covered peril.

Dwelling Coverage — Protects the structure of your home.

Earned Premium — The portion of premium used during the policy period.

Effective Date — When coverage begins.

Endorsement (Rider) — A change or addition to a policy.

Exclusion — A loss or situation not covered.

Excess Liability — Additional liability coverage above primary limits.

Extended Replacement Cost — Pays above dwelling limits if rebuilding costs rise.

First‑Party Claim — A claim you file with your own insurer.

Flood Insurance — Covers damage from rising water or storm surge.

Full Coverage — Common term for auto liability plus comprehensive and collision.

Gap Insurance — Pays the difference between ACV and your auto loan balance.

General Liability Insurance — Covers bodily injury or property damage claims against a business.

Grace Period — Extra time to pay a premium before cancellation.

Hazard — Something that increases the chance of loss.

Home Inventory — A list of belongings for claim documentation.

Homeowners Insurance (HO‑3) — Covers your home, belongings, and liability.

Hurricane Deductible — A special deductible for hurricane damage in Florida.

Indemnity — Restoring you to your financial position before a loss.

Independent Adjuster — A third‑party adjuster hired by insurers.

Inflation Guard — Automatically increases coverage to match rising costs.

Insurable Interest — A financial stake in the insured property.

Insurance Score — A rating factor predicting claim likelihood.

Insured — The person or entity covered by a policy.

Insurer — The company providing coverage.

Joint Ownership — Shared ownership of insured property.

Judgment — A court decision requiring payment for damages.

Lapse — Termination of coverage due to nonpayment.

Liability Insurance — Covers legal responsibility for injury or damage.

Lienholder — A lender with a financial interest in insured property.

Limit of Liability — The maximum amount payable for a claim.

Loss — Damage or injury resulting in a claim.

Loss Assessment Coverage — Helps condo owners pay HOA‑imposed assessments.

Loss of Use — Pays for temporary living expenses.

Loss Ratio — Claims paid divided by premiums collected.

Malicious Mischief — Intentional property damage.

Medical Payments (MedPay) — Pays medical expenses regardless of fault.

Mitigation — Steps taken to reduce loss severity.

Mortgagee — The lender listed on a homeowners policy.

Multi‑Peril Policy — A policy covering multiple types of risks.

Named Insured — The primary person listed on the policy.

Named Peril — Coverage for listed causes of loss only.

Negligence — Failure to act with reasonable care.

No‑Fault Auto Insurance — Each driver’s insurer pays their own medical expenses.

Non‑Renewal — When an insurer decides not to renew a policy.

Occurrence — An event causing a covered loss.

Ordinance or Law Coverage — Pays for code‑required upgrades after a loss.

Other Structures — Covers detached structures like sheds or fences.

Peril — A cause of loss, such as fire or theft.

Personal Injury Protection (PIP) — Required Florida auto coverage for medical expenses and lost wages.

Personal Property — Your belongings.

Policy Period — The time a policy is in effect.

Policyholder — The person who owns the policy.

Premium — The amount paid for insurance.

Primary Residence — The home where you live most of the year.

Property Damage Liability — Pays for damage you cause to others’ property.

Proximate Cause — The primary cause of a loss.

Quote — An estimate of premium.

Rate — The price per unit of insurance.

Reinsurance — Insurance purchased by insurers to reduce risk.

Replacement Cost Value (RCV) — The cost to replace property without depreciation.

Renter’s Insurance (HO‑4) — Covers belongings and liability for renters.

Residual Market — State‑backed insurance for high‑risk consumers.

Rider — Another term for endorsement.

Risk — The chance of loss.

Salvage — Remaining value of damaged property.

Schedule — A list of items insured for specific values.

Self‑Insured Retention (SIR) — The amount a business pays before insurance responds.

Subrogation — When your insurer seeks reimbursement from the at‑fault party.

Supplemental Claim — A claim filed when additional damage is discovered.

Surety Bond — A guarantee of performance or payment.

Term — The length of time a policy is active.

Third‑Party Claim — A claim filed by someone else against your policy.

Total Loss — When repair costs exceed the property’s value.

Tort — A wrongful act leading to liability.

Umbrella Insurance — Extra liability coverage above home and auto.

Underinsured Motorist (UIM) — Protects you when the at‑fault driver lacks enough coverage.

Underwriting — The process of evaluating risk.

Uninsured Motorist (UM) — Protects you if hit by a driver with no insurance.

Unoccupied — A home with belongings but no residents for a period of time.

Vacancy — A home without residents or belongings for an extended period.

Valuation — How property value is determined.

Vehicle Identification Number (VIN) — A unique code for each vehicle.

Voluntary Market — Standard insurance market where insurers choose whom to insure.

Waiting Period — Time before certain coverages begin.

Waiver of Subrogation — Prevents an insurer from seeking reimbursement from another party.

Water Backup Coverage — Covers damage from backed‑up drains or sump pumps.

Windstorm Coverage — Covers wind‑related damage, especially important in Florida.

Workers’ Compensation — Covers employee injuries on the job.