Insurance Glossary
Insurance doesn't have to be confusing. We've broken down the most common terms to help you better understand your coverage.
A
Actual Cash Value (ACV)
The value of your property at the time of loss, determined by subtracting depreciation from the replacement cost.
B
Business Owner's Policy (BOP)
A specialized insurance package for small to medium-sized businesses that combines property, liability, and business interruption coverage.
C
Comprehensive Coverage
Auto insurance coverage that pays for damage to your vehicle caused by events other than collisions, such as theft, vandalism, fire, or weather.
Collision Coverage
Auto insurance coverage that pays for damage to your vehicle resulting from a collision with another car or object.
Claim
A formal request by a policyholder to an insurance company for coverage or compensation for a covered loss or policy event.
D
Deductible
The amount you agree to pay out of pocket before your insurance coverage kicks in to pay a claim.
E
Endorsement
An amendment or addition to an existing insurance policy that changes its terms or scope of coverage (also known as a rider).
L
Liability Insurance
Coverage that protects you if you are legally responsible for injuring someone or damaging their property.
P
Premium
The amount you pay for your insurance policy, usually billed monthly, semi-annually, or annually.
R
Replacement Cost
The amount it would cost to repair or replace damaged property with materials of similar kind and quality, without deducting for depreciation.
U
Umbrella Policy
Extra liability insurance that goes beyond the limits of your standard auto and home policies to protect your assets from major claims and lawsuits.
W
Workers' Compensation
Insurance that provides medical benefits and wage replacement to employees injured in the course of employment.
Still have questions?
Our licensed agents are here to explain your coverage options in plain English. No jargon, just honest advice.
