Insurance Glossary

The replacement cost of damaged property minus depreciation due to age, wear, and tear.

Coverage for extra costs of living elsewhere while your home is being repaired or rebuilt after a covered loss.

Insurance companies that are licensed and regulated by the state where they operate.

Computer models used to estimate potential losses from natural disasters like hurricanes, earthquakes, and floods.

A record of insurance claims you have filed, which insurers use to assess your risk level.

A policy provision that requires you to carry insurance equal to a specified percentage of your property's value.

The maximum amount an insurance company will pay for a covered loss under your policy.

The amount you must pay out-of-pocket before your insurance coverage begins to pay for a covered loss.

The decrease in value of property over time due to age, wear, tear, and obsolescence.

Insurance coverage that protects the physical structure of your home, including attached structures.

Specific conditions, circumstances, or types of losses that are not covered by an insurance policy.

State-sponsored insurance programs that provide basic property insurance when coverage is not available in the private market.

Separate insurance coverage that protects against flood damage, which is excluded from standard homeowners policies.

Properties that insurance companies consider more likely to experience losses due to location, condition, or other risk factors.

The most common homeowners insurance policy form, providing open-peril coverage for the dwelling and named-peril coverage for personal property.

A comprehensive property insurance policy that protects homeowners against damage to their dwelling, personal property, and liability for injuries occurring on their property.

A separate deductible that applies to hurricane-related damage, typically higher than standard deductibles.

Insurance protection against claims for bodily injury or property damage that you may cause to others.

Premium discounts or deductible reductions offered for property improvements that reduce risk.

A tropical cyclone or hurricane that has been assigned a name by the National Hurricane Center.

The National Flood Insurance Program - a federal program providing flood insurance to property owners, renters, and businesses.

An insurance company's decision not to continue a policy when it expires, typically due to increased risk or claims history.

Coverage for additional costs to comply with current building codes when rebuilding after a covered loss.

A specific risk or cause of loss covered by an insurance policy, such as fire, theft, or windstorm.

Insurance coverage for your personal belongings inside your home, such as furniture, clothing, and electronics.

The amount you pay for your insurance policy, typically paid monthly, quarterly, or annually.

The amount it would cost to replace damaged property with new property of similar kind and quality, without deducting for depreciation.

State-sponsored insurance programs that provide coverage when the private market is unavailable.

The evaluation of potential risks and hazards that could affect a property or cause insurance claims.

Insurance coverage provided by non-admitted insurers for risks that cannot be placed with standard admitted carriers.

Additional liability insurance that provides coverage above the limits of your underlying policies.

The process insurance companies use to evaluate risk and determine whether to provide coverage and at what price.

Coverage for damage caused by water or sewage backing up through drains, sewers, or sump pump failures.

Areas where human development meets or intermixes with undeveloped wildland vegetation, creating elevated wildfire risk.

A separate, often higher deductible that applies specifically to damage caused by wind and hail storms.

Property improvements and construction techniques designed to reduce damage from high winds, often resulting in insurance premium discounts.